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Best Online Savings & Money Market Account Rates 2025

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Local Community Banks Lead List of Fastest Growing Banks in US

BestCashCow analyzed its database to find the fastest growing banks in the United States. We were looking for banks that grew their assets by making loans and provided needed funds to businesses, potential homeowners, non-profits and more. The top 20 fastest growing banks were all community banks that grown at incredible rates right through the financial crisis.

Your local, small community bank may be the growth engine of the banking industry in the future.

BestCashCow analyzed its database to find the fastest growing banks in the United States. We were looking for banks that grew their assets by making loans and provided needed funds to businesses, potential homeowners, non-profits and more. The top 20 fastest growing banks were all community banks that grew at incredible rates right through the financial crisis. It’s not hard to think the sky is falling when listening to financial pundits or reading the mainstream business press. The Euro is collapsing, major banks are in trouble, and the economy is on a road to nowhere. Yet, there are "green sprouts" in the midst of the doom and gloom. So, for some positive news, here are the twenty fastest growing banks since 2006.

The Top 20 Fastest Growing Banks

To determine the fastest growing banks, we analyzed the asset growth of every bank in the United States based on FDIC data from 2006 - 2011. From this data we included only banks that showed four out of five years of positive growth, removing banks that showed huge asset increases in one year and then flat or down subsequent years. This eliminated growth due to accounting changes, or some other non-growth related event.

20 Fastest Growing Banks in the US

Who Are the Fastest Growing Banks?

First, unsurprisingly, almost all of the banks on the list are relatively new, small banks. Sixteen of the top twenty were established on or after 2000. Ten of the banks were established in 2006. All of the banks had assets below $1 billion before 2006 although six have grown to be billion plus banks in the subsequent five years. Newly established, small community banks have an advantage when it comes to growth. It is much easier to double and triple $30 million than it is $30 billion. This is true of any new venture or small business. Banks founded in 2006 and after also have another advantage. For the most part, they were able to avoid much of the lending excesses that occurred between 2000 and 2005 and have much cleaner balance sheets. Fourteen of the twenty banks have Texas Ratios below the current national average of 21.06%.

To learn more about these fast-growers, we contacted the number one and number two banks on the list and spoke with Ron Samuels, President of Avenue Bank and Bill Ridenour, the President of John Marshall Bank. Avenue Bank is located in Nashville, TN. Between 2007 and 2011 it grew assets by 2,091% from $26 million to $571 million. In 2011 it had a return on equity of 4.40% and a Texas Ratio of 14.20%.

John Marshall Bank ranked #2 on our list of fastest growing banks. It is headquartered in Falls Church, VA and grew its assets from $23 million in 2006 to $368 million in 2011, a 1,492% increase. It has a 2011 Return on Equity of 6.13% and a Texas Ratio of 2.64%.

Bill Ridenour, the President of John Marshall Bank told BestCashCow that:

"Being relatively new has helped us a great deal… Our advantage is that all the loan growth is based on current market conditions with asset appraisals obtained after the significant downturn in real estate valuations and underwritten in more conservative loan to value and cash flow coverages. The result is a very clean loan portfolio relative to banks that originated a significant amount of their loans at inflated values that are now under water."

In addition, many of these banks are located in areas that avoided the worst of the financial crisis or that are faster growing regions. Four of the twenty banks are located in Texas, two are located in Nebraska. Avenue Bank in Nashville has had a strong regional economy at its back. "The Nashville 14 county area has grown 60% over the last ten years and added 235,000 jobs. Healthcare and education have helped support the local economy, said Mr. Samuels."

Mr. Ridenour from John Marshall Bank also noted that the Washington D.C. metro area "has experienced problems similar to that of the rest of the country but the downturn has been less severe. There are isolated submarkets around the region that have performed better or worse than the average and this is where local market knowledge pays off when underwriting our loan growth."

Experienced Management and Focused Markets

Both Avenue Bank and John Marshall Bank have also grown quickly by having an experienced team that is focused on specific market segments. Avenue Bank has taken advantage of the Nashville market and has strong healthcare and music and entertainment teams. It has a veteran banking team backed by a board of directors that includes Joe Galante, the former Chairman of Sony Music.

John Marshall Bank has much the same. Mr. Ridenour stated "The primary source of our growth has come from the extensive experience that our team of Bankers has in the Washington Metropolitan Area. Most of our management team has over 25 years of banking experience and in some cases over 35 years. This has helped us in two significant ways. First, we have been able to attract a solid team of commercial bankers to our company that bring an extensive network of customer contacts to keep our business pipeline growing. Second, because of our experience, we have a thorough knowledge of our market and focus on the segments that we know best and where we can be the most competitive. That is the small business segment."

Optimistic but Realistic on Economy

In general, both men were optimistic about their regional economies. Mr. Samuels believes Nashville has a bright future and that one "has to be optimistic" and that the "fundamentals are there" for a good 2012. Mr. Ridenour stated that "although we do expect the Washington area to remain one of the strongest banking markets in the country, the budget issues at the national level and their potential impact on the local economy with respect to spending on government contractors does create uncertainty and a need to be cautious."

Community Banks on the Rise?

A clean balance sheet, a decent local market, veteran bankers, defined markets, and a bit of optimism can go a long way in the banking world today. At a time when the mega-banks are reeling and facing increased scrutiny from consumers and regulators, one has to wonder if the time of the community bank has returned. Or, perhaps another way to look at it is which of these smaller banks today might become the larger regional and national banks of tomorrow.

View all community and national banks in your area. BestCashCow provides branch locations, bank rates, bank financial health, and more.


Weekly Rate Deal - Premier Federal Credit Union Offering 2% APY on 24-Month CD

This week we are traveling to North and South Carolina where Premier Credit Union is offering a nice 24-month (2 year) CD. The CD pays 2.00% APY with a $500 minimum balance.

This week we are traveling to North and South Carolina where Premier Federal Credit Union is offering a nice 24-month (2 year) CD. The CD pays 2.00% APY with a $500 minimum balance. That's pretty good when you consider that the average 5-year CD rate according to BestCashCow is 1.58% APY. The 2.00% beats most 3-year, and 4-year CD rates from other banks and credit unions.

Premier Credit Union is headquartered in Greensboro, NC. Premier has nine branches located across western North and South Carolina. Interested individuals can quality for membership based on several different criteria, including working for or receiving a pension from an eligible company, having an immediate family member who is a member, or living in Kings Mountain, NC or in a defined area in Forest City, NC. Learn more about eligibility.

From a financial standpoint, Premier has a Texas Ratio of 6.65% versus the national credit union average of 10.30%. A lower Texas Ratio is better. The credit union also has a net worth of 15.59% versus the national average of 10.14% (higher is better). All deposits at Premier are insured by the NCUA up to $250,000 per person.

If you don't live near a Premier FCU branch, look for the highest CD rates from banks and credit unions in your local area. BestCashCow also has the Internet's largest database of bank rate information.

Previous Weekly Rate Deals

Check back next Monday for a new bank deal. Email any deals you know about to ratedeal (at) bestcashcow.com. Feel free to also share them below. If you're a bank and have a great deal not listed on BestCashCow, register for access and add the deal to the site.

Have a good week and a great Thanksgiving!


How to Determine if Your Bank is About to Fail

Are you banking at an institution that is danger of failing? How do you determine if your bank is in jeapordy and might be closed by the FDIC or another regulator?

Are you banking at an institution that is danger of failing? How do you determine if your bank is in jeapordy and might be closed by the FDIC or another regulator? Most banks today do not fail in the traditional sense, instead they are seized by the FDIC or another bank regulator as their financial ratios deteriorate. At BestCashCow, we list several pieces of financial information for every FDIC insured institution. This includes the Texas Ratio of a bank, its Return on Equity and its Capitalization. To determine whether these can be predictive, we analyzed the Texas Ratios and the Return on Equity of the last ten bank failures. The chart below shows what we found:

As you can see, closed banks had several things in common:

  • Texas ratios above 150%. A bank is considered to be under stress if its Texas Ratio exceeds 100%. The Texas ratios measures the capital and reserves a bank has to cover bad loans. A Texas Ratio above 100% means that the bank no long has enough to cover potential losses.
  • Negative Return on Equity. Return on Equity measures the amount of income generated by the bank's equity. A negative return on equity is a sign that the bank is no longer profitable.

Of the last ten bank closures, every bank had a Texas Ratio greater than 150% and a negative Return on Equity.

Just because a bank's financials fit this state, does not necessarily mean it will close, but it is a strong warning sign. Be wary. FDIC insured banks provide some protection from bank failure ($250,000 per individual per bank) but there are other negative repurcussions. These include:

  • A depositor may lose some or all of the money above FDIC limits if a bank fails.
  • Any CD or CD IRA which a consumer holds in a failed bank may be reset once the bank’s assets are transferred to another bank or cashed out by the FDIC. For example, a depositor who holds a 5-year CD paying 6% APY from 2007 might find the CD called, resulting in lost interest.
  • Failing banks may not have the time and money needed to provide top-notch customer service and support. They are fighting for their survival.
  • The cost of bank failures is ultimately borne by the consumer. Money spent by the FDIC to insure bank deposits comes from a fee levied on all banks. The fee that a bank pays, is passed through to the consumer in the form of higher account fees, bank charges, and interest rates on loans. Ultimately, if the bank failure is big enough or systemic enough, the general public must come up with the funds to bail out the banks, as with the TARP and the S&L bailout in the 1980s.

It's worth it to spend a minute taking a look at your bank and understanding its financial condition.