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.…
The Bank Branch is Alive and Well, Thank You
Like everything else, banking is changing and evolving to meet the changing needs and demands of the times. There is no doubt about that. But anyone predicting the demise of the bank branch is premature, at best …at least in…
Merger Mania Claiming Community Staples
Mergers and Acquisitions have claimed more than 225 banks since January 1, 2020. That represents over $174 billion in assets and $140 billion in deposits in less than an 18 month period. Several centenarians are among the banks lost leaving…
Economic Injustice Puts Banks on Notice
As we write this week’s article, CEOs of six of the nation’s largest banks are taking a verbal beating from Congress. Lawmakers took exception to some of the ways they perceive these bankers have taken advantage of poorer clients during…
Lending a Helping Hand, Sometimes Means Lending.
Loan volumes at the nation’s community banks grew over 10% during 2020. And that’s no coincidence. With help from the Government’s Paycheck Protection Plan (PPP) Program, Commercial & Industrial (C&I) Loans accounted for more than two-thirds of that growth. But…
De Novos: Banking With a Purpose
This year is poised to be the most active for de novo banks that we’ve seen since before he Great Recession. Five new banks have already opened their doors and two others are scheduled to open in June. While we…
Temporary Hit to Capital Ratios
…and They’d do it Again. This week we will take a look at how some community banks have been helping their neighbors and communities during the past year. In some cases, that help has come at the expense of the…