Small Enough to Recover? Bank Size, Corporate Governance, and Post‑COVID‑19 Performance

Using a balanced panel of 340 bank‑year observations from 2012‑2024, this study documents a robust rebound in U.S. commercial banks’ profitability after the onset of the COVID‑19 crisis. Return on assets (ROA) increases by 0.63–0.86 percentage points after 2020, controlling for bank and year fixed effects. The recovery is strongly heterogeneous: smaller banks (measured by the log of total assets) outperform their larger peers, whereas board size—our primary governance proxy—does not accelerate the rebound. Results remain intact when profitability is measured by return on equity (ROE) and under alternative fixed‑effect structures. Overall, the findings underscore the resilience advantages of relationship‑based, smaller banking models and nuance the role of internal governance during systemic shocks. JEL Codes: G21, G32, G01