Bruce J. Summers

Performance Characteristics of High-Earning Minority Banks

Summary and ConclusionIn this study, minority-owned commercial banks with four years or more operating experience are divided into two comparison groups according to earnings performance. Those banks with a four-year consolidated return on investment of 10 percent or better constitute the highearning group, while the remaining banks with a four-year consolidated return on investment of less than 10 percent are combined into a residual group. The performance of the high-earning group is compared with that of the residual group through an analysis of key operating ratios.