There is more than one way to measure a bank’s profit. Simply looking at how much the bank earned in dollars is a start, but it’s not ideal for comparison purposes.

Instead, today we will look at Return on Assets (annualized net income divided by average total assets). This tells us how well the banks are using their assets to generate profits.

On page 5 of this week's Jumbo Rate News, we have listed the 50 banks with the highest ROAs as of March 31, 2025.

Most Efficient U.S. Banks Measured by ROA

There is more than one way to measure a bank’s profit. Simply looking at how much the bank earned in dollars is a start, but it’s not ideal for comparison purposes.

Instead, today we will look at Return on Assets (annualized net income divided by average total assets). This tells us how well the banks are using their assets to generate profits.

In simple terms, the higher the ROA, the more efficient the bank. On page 5 of this week's Jumbo Rate News, we have listed the 50 banks with the highest ROAs as of March 31, 2025. This includes all banks with an ROA of 2.98% or higher.

The FDIC’s Quarterly Banking Profile for the first quarter 2025 reported an industry aggregate return on assets of 1.16%. That was up from 1.11% in the fourth quarter 2024 and up from 1.09% in the first quarter 2024. This, however, can vary greatly depending on the bank’s asset concentration group.

There are only ten banks that are currently identified as having Credit Card Concentrations. The overall ROA for these 10 banks (3.22%) is the highest of any asset group. Yet, surprisingly, only three credit card banks are listed on page 5. They are  4-Star Credit One Bank, N.A., Las Vegas, NV (25620) with the second highest industry ROA at 26.38%, followed by 3½-Star Comenity Bank, Wilmington, DE (27499) with an ROA of 5.14%, and 5-Star American Express NB, Sandy, UT (27471) with a 4.18% ROA.

Clearly these three, but especially Credit One Bank, raised the average for the group. Unlike the other two, Credit One Bank’s entire loan portfolio consists of credit cards.

Credit One Bank has been recommended by Bauer (rated either 5-Stars or 4-Stars) for 61 consecutive quarters (over 15 years). At 34%, its leverage capital ratio is well above its peers. In addition, Credit One Bank has zero loans in non-accrual status. It did report $51.268 million 90 days or more delinquent and $48.165 million short-term past due at March 31, 2025. That will have to be kept in check. Its overall asset quality, though, is quite good.

Credit One Bank’s assets are growing much faster than its capital, which is the reverse of its peers. However, with the second highest ROA in the industry and a 34% Leverage CR, we’d have to say its modus operandi is working.

The second highest aggregate ROA by asset concentration group belongs to “Other Specialized Banks with Assets under $1 Billion”. These 186 banks reported a combined ROA of 2.29%. Twelve of them can be found on page 5 with ROAs ranging from 3.06% to over 400%.

This may come as a surprise to some, but the third highest group ROA belongs to Agricultural Banks. At 1.27%, it is a lot less impressive than those we have already mentioned, but still interesting that this group of 961 banks came in third out of nine.

5-Star John Deere Financial FSB, WI (35237) reported the highest ROA in the Agricultural  bank category at 5.05%. John Deere Bank is exactly what you would expect, a bank that finances John Deere products.

John Deere, the company, was established almost 200 years ago; John Deere Financial, the bank, has only been around for 25 years. It has earned Bauer’s highest, 5-Star rating, continuously, since 2003. The other two Agricultural banks on page 5 are 5-Star Great Plains Bank, Eureka, SD (505) and 4-Star Nebraska State Bank, Oshkosh, NE (9819).

From here, we are going to skip to the bottom. There are two categories with an aggregate ROA under 1%: Mortgage Lenders and Consumer Lenders.

The nation’s 321 Mortgage Lending banks are at the bottom of the pile with an overall ROA of just 0.88%. However, three mortgage lenders are listed on page 5. They are 4-Star First FS&LB, Olathe, KS (28635) with an ROA of 3.37%, 4-Star First NB of America, East Lansing, MI (17438) at 3.27%, and 3½-Star Ameriprise Bank, FSB, Minneapolis, MN (58303) with the lowest ROA (2.98%) on pg 5.

There are only 37 banks categorized as Consumer Lenders; they have an aggregate ROA of 0.98%. Three of these made the page 5 list as well. The bank with the highest in this group is 4-Star Sallie Mae Bank, Salt Lake City (58177), which is one of seven Utah State Industrial Banks that made it onto pg 5. Sallie Mae Bank reported an ROA of 4.52%.

According to its website, Sallie Mae, the Nation’s #1 Private Student Loan Lender, provides fixed rate loans for undergraduate students with rates that range from as low as 3.19% to as high as 16.99%. Variable rates range from 4.37% to 16.49%.

Those of you familiar with Bauer’s Personal CD RateWatch page may be familiar with Sallie Mae Bank as it frequently offers very attractive consumer Certificate of Deposit (CD) rates. As of this writing (July 17th), for example, Sallie Mae Bank is offering the following personal CD APYs:

9 months at 4.45%;

12 months at 4.20%;

15 months at 4.40%.

Seeing what Sallie Mae is charging on loans, you can understand how it can afford to offer these attractive rates on CDs.

The following is pulled from the FDIC's Quarterly Banking Profile. It provides the return on assets for each asset concentration group as of March 31, 2025.

Credit Card Banks	International Banks	Agricultural Banks	Commercial Lenders	Mortgage Lenders	Consumer Lenders	Other Specialized Banks < $1B	All Other < $1 Billion	All Other > $1 Billion
3.22%	1.24%	1.27%	1.02%	0.88%	0.98%	2.29%	1.08%	1.14%