What do government stimulus, risk aversion, and job insecurity all have in common? They all played significant parts in deposit growth at our nation’s banks during the pandemic. Between year-end 2019 and March 31, 2022, bank deposits grew 37% (from…
Category: Community Banking
4 Decades in, We’re Looking back to the Future
Welcome Back! As Jumbo Rate News enters its 40th year in publication, we thought it would be a good time to look back to how we got here. Let’s set the stage: The year was 1983; Ronald Reagan was President;…
Community Bank Branches are NOT Going Away
That may seem contradictory to the chart below, but notice we said “community bank branches”. According to the FDIC, in the past 12 months, the industry has closed 3,617 branch offices and opened just 1,148 for a net loss of…
2nd Substantial Noncompliance for Small Bank
The small bank ($59 million asset) 3-Star Lemont National Bank, Lemont, IL just received its second consecutive “Substantial Noncompliance” (SN) Community Reinvestment Act (CRA) rating. One of the major factors contributing to this lending test rating, assigned by Lemont NB’s…
C&I Lending Down 13% in Spite of PPP
A year ago (JRN 37:40), we took exception with United Bank of Philadelphia because 87% of its loan portfolio was tied to the success of small businesses (56% in Commercial Real Estate (CRE), 26% in Commercial & Industrial (C&I) +…
Community Banks Critical for Small Businesses
According to the Federal Reserve’s 2021 Small Business Credit Survey, 48% of Paycheck Protection Program (PPP) applicants went to community banks for funding while only 43% went to Big Banks. What’s more, 78% of those that applied at community banks…
Deposit Growth Slows, Doesn’t Stop
Deposits continue to climb at our nation’s banks, but the growth has slowed considerably since the early days of the pandemic. Deposit growth in the first and second quarters of 2020 was 7½% or better whereas second quarter of 2021…
The Credit Card You Seek May be Closer…
During the 12 months ended March 31, 2021, credit card loans outstanding from the nation’s banks dropped a stunning 12.8%, and an even more notable 19.2% lower than their peak at the close of 2019. Preliminary reports suggest that downward…
Record Low Interest Margins Put Squeeze On
The average net interest margin at our nation’s banks contracted to its lowest level on record (2.56%) at March 31, 2021. In one year, the industry saw a decline of $29.8 billion in interest income, a decrease of 17.6%. If…
Who are You Calling a Predator?
Not us, say Big Banks, in response to comments by Senator Elizabeth Warren (D-MA) who reportedly called out “giant banks that make billions of dollars in profits and squeeze every last penny out of customers who are struggling”.-American Banker 7/19/21.…