State Bank of Texas Recognized as a Top-Performing Bank by American Banker for 2025
July 15, 2025
State Bank of Texas has been named one of the top-performing banks in the United States with assets between $2 billion and $10 billion by American Banker, securing the No. 3 spot on the prestigious list. This recognition is a testament to the bank’s strong financial performance and efficient operations, particularly its exceptional return on average assets (ROAA) of 3.19%, which surpasses that of banks ranked higher on the list and all other institutions evaluated in the peer group.
American Banker’s annual ranking, compiled by Capital Performance Group, assesses banks based on their three-year average return on average equity (ROAE) using data from year-end 2024. In a year marked by interest rate volatility and pressure on community banks’ bottom lines, State Bank of Texas distinguished itself through effective cost management and strategic focus.
“We are honored to be recognized by American Banker as a top-performing bank,” said Chan Patel, Chairman and CEO of State Bank of Texas. “This award reflects the hard work and dedication of our team, as well as our commitment to serving our clients and customers with tailored financial solutions. Our superior ROAA demonstrates our ability to generate significant profits from our assets, benefiting our stakeholders.”
According to the American Banker report, the top-performing banks in this asset group demonstrated a keen ability to manage their cost of funds. These institutions had a median cost of funds of 1.97%, significantly lower than the 2.46% across all institutions in 2024. State Bank of Texas, with its focus on efficiency, logged the lowest efficiency ratio among the top banks, showcasing its ability to effectively utilize earnings.
While the Federal Reserve’s interest rate cuts in the latter half of 2024 presented new challenges, State Bank of Texas maintained a strong net interest margin of 5.52%, compared to the 3.18% for all banks in the asset class. The bank also demonstrated growth in key areas, with loans increasing by 9.33% and core deposits growing by nearly 18% year-over-year.
The American Banker report highlighted that State Bank of Texas has carved out a unique niche serving Indian and Indian-American hoteliers. Owned and run by Chairman and CEO Chan Patel, along with his sons President Sushil Patel and Chief Lending Officer Rajan Patel, the bank has established itself as a trusted financial partner within this community.
Learn more at https://www.americanbanker.com/news/20-top-performing-banks-between-2-billion-and-10-billion.
