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FDIC Publishes Wide-Ranging Community Banking Study

ABA Community Banking

The FDIC today released a large-scale Community Banking Study that examines community bank performance between year-end 2011 and year-end 2019. The post FDIC Publishes Wide-Ranging Community Banking Study appeared first on ABA Banking Journal.

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Study: Construction loan monitoring decreases loan defaults

Abrigo

Monitoring construction loans improves outcomes, study finds. Takeaway 1 "Bank Monitoring with On-Site Inspections" will be presented later this month and claims to be the first empirical study of bank monitoring within non-syndicated loans. .

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FDIC Analysis Examines Community Bank Economies of Scale

ABA Community Banking

The FDIC today released a new staff study highlighting how economies of scale developed at community banks (those with $10 billion or less in assets) between 2000 and 2019. The post FDIC Analysis Examines Community Bank Economies of Scale appeared first on ABA Banking Journal.

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Bank ROE – What Should Be Your Bank’s Target?

South State Correspondent

How should community banks target and compare their ROE to the industry and their peer group, and what defines a top-performing bank? Most importantly, is there an ROE level ensuring a bank remains long-term independent and healthy? Bank ROE Historical Performance Total assets for all FDIC-insured institutions was $23.7T

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The Future of Noninterest Income at Financial Institutions

Abrigo

Takeaway 3 Community banks have seen less volatility in noninterest income, and many are still eyeing growth across the category. Community banks target growth. Community banks have seen less volatility in noninterest income over time. Types of Noninterest Income. An important source of revenue.

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The Growing Concern With Your Cost of Funds

South State Correspondent

The banking industry’s cost of funds (COF) is highly correlated to short-term interest rates. However, as of Q2/22, the average community bank’s COF has risen only a few basis points. The COF over the past five quarters is shown for three asset peer groups: banks under $1B (3.5k using that six-month lag.

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FDIC report suggests M&A has been positive for many small banks

American Banker

The agency’s second in-depth study of the community banking sector pointed to continued challenges for local institutions from the pandemic and other headwinds, but many smaller banks are reaping the benefits of M&A and holding their own against larger competitors in key lending categories.

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