This week, however, we would like to laud community banks that have low service fee charges when compared to transaction deposit dollars.
Last week we reported that, depending on asset size distribution, net interest margins (NIMs) were making gradual headway with help from the Fed’s rate hikes over the past two years. As we look forward to a quarter point increase next month (Sept. 26th) let’s delve into that a little deeper.
Last week we intentionally left Big Banks out of the discussion. The business model for these behemoths is very different from that of community banks, which is our primary focus. But …
While smaller banks are overshadowed by the largest banks, it’s interesting to see that even the smallest community banks have seen improvements in NIM, which for banks with assets less than $100 million went from 3.58% to 3.75% in the past three years.