New York's community banks and thrifts posted loan and deposit growth that outpaced the U.S. as a whole in the second quarter, but the state's banks were not as profitable as their peers nationwide.
Among New York's community banks and thrifts under $10 billion in assets, the median return on average equity was 8.48%, higher than the Mid-Atlantic's 7.60% median, but lower than the 9.59% across the U.S. New York banks' 3.55% median net interest margin was 8 basis points higher than the Mid-Atlantic but 28 basis points lower than the U.S.
Meanwhile, the state's 4.3% median deposit growth and 5.8% median loan growth year over year surpassed the United States' 3.4% and 5.0% growth, respectively.

Norwich-based NBT Bank NA, New York's largest community bank by assets, topped the state median NIM, but fell short of the median ROAE and posted lower year-over-year deposit and loan growth. At $9.57 billion in assets, the bank is closing in on the $10 billion asset threshold, after which it will be subject to restrictions on its debit card interchange income due to the Dodd-Frank Act's Durbin amendment. Many banks try to "leap" over the threshold via M&A to make up for the lost revenue.

New York community bank M&A activity has been subdued in 2019. As of Sept. 20, only three deals with a New York-based bank target had been announced, including two deals in the third quarter.
On Aug. 9, Toms River, N.J.-based OceanFirst Financial Corp. announced that it would acquire Manhattan-based Country Bank Holding Co. Inc. for $102.2 million, the largest New York bank deal of the year. That same day, OceanFirst announced it would also buy Tinton Falls, N.J.-based Two River Bancorp for $182.8 million.
On July 24, Short Hills, N.J.-based Investors Bancorp Inc. announced it would buy Islandia-based Gold Coast Bancorp Inc. for $63.6 million.

New York, like much of the rest of the U.S., is seeing more bank branch closures than openings as banking gets ever more digital. During the second quarter, 73 branches were closed in the state, while only 10 were opened. Over the last 12 months to June 30, 224 branches were closed and 57 opened.

Click here for a spreadsheet containing second-quarter financial data for New York community banks and thrifts.
