In 1910, German American Bank opened its doors in Jasper, Indiana, with a mission to serve local families and businesses. More than a century later, it continues to do just that — recently earning a Top 20 spot in Bank Director’s national performance rankings.This regional bank’s endurance isn’t an accident. Like other high performers on this year’s Bank Director’s RankingBanking report — which evaluated the 300 largest publicly traded banks on profitability, capital strength, and asset quality — German American shows that success comes from sticking to solid fundamentals: resilience, focus, and community trust.German American Bank isn’t alone, either. While the daily headlines often focus on the biggest players in banking, many of this year’s top performers operated at the community and regional level.For community financial institutions (CFIs), the report offers more than just rankings — it highlights the playbook peers are using to consistently outperform in today’s competitive environment. The message is clear: success is less about size and more about strategic clarity, disciplined execution, and staying true to community roots.1. Clarity and Consistency Win Over NoveltyThe top performers in banking don’t try to be all things to all people. Instead, they define their lane, stay in it, and execute better than anyone else.
- 1st Source Corp. in Indiana has built a reputation around niche lending in construction equipment and aircraft finance — areas where deep expertise matters more than scale.
- Nicolet Bankshares in Wisconsin has focused on commercial and industrial lending in smaller markets, where its bankers can establish closer ties with customers.
As Kara Baldwin of Crowe LLP noted in the RankingBanking report, “What’s your bank’s vision, and what is the strategy to get there? If you’re going to have something that’s novel and unique, be the best at that.” In other words, know your strengths, commit to them, and resist the temptation to dilute your model by chasing every trend.
2. Discipline in Credit and Capital Management Pays OffStrong financial fundamentals remain a common characteristic of high-performing banks. Farmers & Merchants Bancorp in California and Northeast Community Bancorp in New York, for example, both rank near the top with enviable returns on assets and strong capital levels.These banks demonstrate that disciplined underwriting, careful risk selection, and prudent capital management not only weather market cycles, but they also create room for sustainable, self-reinforcing growth. For CFIs, tightening credit standards when needed and maintaining robust capital cushions aren’t just defensive moves — they can be competitive advantages.3. Scale Matters — But Only with PurposeThe report also highlights that scale alone doesn’t guarantee success. Execution does. East West Bank, which topped the large-bank category for a third consecutive year, attributes its results to disciplined capital management and a culture of loyalty.CEO Dominic Ng emphasized that the recognition “is a testament to our consistently strong performance year after year — from profitability to capital adequacy and asset quality.” While many CFIs won’t seek to match East West’s $78B balance sheet, the lesson applies across sizes: growth only works when underpinned by focus, discipline, and culture.4. Trust and Community Still DifferentiateWhile digital platforms like fintechs grab the headlines, culture and relationships still set the best banks apart. German American Bank, ranked among the top 20 performers in the $5B to $50B category, underscored this in its recognition announcement.As CEO Neil Dauby put it plainly, “Since 1910, German American has been a cornerstone in the communities we serve. Our mission is to ensure that local bankers are available to assist individuals and businesses in realizing their financial aspirations and enhancing their quality of life.”For CFIs, this reinforces a timeless truth: face-to-face trust remains a powerful differentiator — especially when paired with modern digital tools.
5. Invest in Your People and Your CultureTop banking performers know that sound strategy and solid financial discipline alone aren’t enough to stand out from the crowd. Banks like East West and German American repeatedly credit their teams and local presence as the driving force behind their results, pointing to the loyalty and consistency that come from investing in people over the long term.In an increasingly competitive digital era, it’s perhaps unsurprising that people remain one of banking’s most durable advantages. A strong culture not only drives employee engagement and customer service but also creates consistency in performance across cycles. Not to mention, building a strong, employee-centric culture encourages longer tenure and increases the chance of employees sticking around through multiple career stages, ensuring the company culture thrives at all levels of responsibility in the long term. For CFIs, prioritizing staff development, leadership continuity, and community involvement can be just as impactful as improving financial metrics.What CFIs Can LearnThis year’s RankingBanking report underscores that top performers in the banking sector aren’t just chasing scale or novelty technologies — they’re focused on getting the fundamentals right.Across sizes and markets, it appears the most successful banks share a common playbook:
2. Discipline in Credit and Capital Management Pays OffStrong financial fundamentals remain a common characteristic of high-performing banks. Farmers & Merchants Bancorp in California and Northeast Community Bancorp in New York, for example, both rank near the top with enviable returns on assets and strong capital levels.These banks demonstrate that disciplined underwriting, careful risk selection, and prudent capital management not only weather market cycles, but they also create room for sustainable, self-reinforcing growth. For CFIs, tightening credit standards when needed and maintaining robust capital cushions aren’t just defensive moves — they can be competitive advantages.3. Scale Matters — But Only with PurposeThe report also highlights that scale alone doesn’t guarantee success. Execution does. East West Bank, which topped the large-bank category for a third consecutive year, attributes its results to disciplined capital management and a culture of loyalty.CEO Dominic Ng emphasized that the recognition “is a testament to our consistently strong performance year after year — from profitability to capital adequacy and asset quality.” While many CFIs won’t seek to match East West’s $78B balance sheet, the lesson applies across sizes: growth only works when underpinned by focus, discipline, and culture.4. Trust and Community Still DifferentiateWhile digital platforms like fintechs grab the headlines, culture and relationships still set the best banks apart. German American Bank, ranked among the top 20 performers in the $5B to $50B category, underscored this in its recognition announcement.As CEO Neil Dauby put it plainly, “Since 1910, German American has been a cornerstone in the communities we serve. Our mission is to ensure that local bankers are available to assist individuals and businesses in realizing their financial aspirations and enhancing their quality of life.”For CFIs, this reinforces a timeless truth: face-to-face trust remains a powerful differentiator — especially when paired with modern digital tools.
5. Invest in Your People and Your CultureTop banking performers know that sound strategy and solid financial discipline alone aren’t enough to stand out from the crowd. Banks like East West and German American repeatedly credit their teams and local presence as the driving force behind their results, pointing to the loyalty and consistency that come from investing in people over the long term.In an increasingly competitive digital era, it’s perhaps unsurprising that people remain one of banking’s most durable advantages. A strong culture not only drives employee engagement and customer service but also creates consistency in performance across cycles. Not to mention, building a strong, employee-centric culture encourages longer tenure and increases the chance of employees sticking around through multiple career stages, ensuring the company culture thrives at all levels of responsibility in the long term. For CFIs, prioritizing staff development, leadership continuity, and community involvement can be just as impactful as improving financial metrics.What CFIs Can LearnThis year’s RankingBanking report underscores that top performers in the banking sector aren’t just chasing scale or novelty technologies — they’re focused on getting the fundamentals right.Across sizes and markets, it appears the most successful banks share a common playbook:
- Stick to your strengths. A focused strategy outperforms chasing every opportunity.
- Run a disciplined shop. Credit quality and capital strength drive long-term resilience.
- Grow with intention. Scale succeeds only when paired with disciplined execution.
- Lean into relationships. Trust, local knowledge, and advisory support set CFIs apart.
- Prioritize people and culture. Staff development, leadership continuity, and a strong culture sustain performance.
For CFIs, the main takeaway should be that success in banking comes not from trying to copy the largest banks, but from sharpening what has always defined community banking — focus, discipline, and relationships — while adapting to today’s fast-changing environment.
