Bankers Helping Bankers’ Post

Community banks are the lifeblood of the U.S. economy and are central to the Federal Home Loan Bank System, representing more than 96% of FHLBank members. The post below highlights work by Thomas Siems and the team at the Conference of State Bank Supervisors (CSBS). Amongst other findings, the CSBS Annual Survey of Community Banks found Net Interest Margins, Cost of Funds, and Liquidity were top concerns for community bankers in 2023 and 2024. The FHLBanks are proud of the lending community bank members provide to increase affordable housing and community development in their communities. The self-capitalizing, cooperative structure of the FHLBanks enables them to provide low-cost funding to their members in all economic conditions, providing crucial liquidity to meet their members’ needs and helping ensure the stability of the U.S. financial system. For insights from the 2024 Annual Survey of Community Banks, including the FHLBanks' Top Rating for accessible liquidity, see https://lnkd.in/epg5wqMg #FHLBanks #Liquidity #CommunityBankSurvey

We feel the same, Christopher Williston VI, CAE. Kudos to The Baker Group and IBAT. Very comforting to see such strong passion, leadership and commitment to the future of our vital community banks. #communitybanking #regionalbanking #IBAT #visibility #strategicvisibility #communitybank #risk #finance #fintech #opportunities #riskmanagement #ERM #ECRM #engagement #banking #CFO #enterpriseriskmanagement #CECL #credit #creditrisk #creditriskmanagement #CRO #compliancerisk #compliance 

What Makes Community Banks Different? 🌟 Local Focus: Loans go back into the community, helping local businesses thrive. 🤝 Relationships Matter: Lending decisions consider your story, not just numbers. 💡 Innovative and Personal: High-tech tools with a personal touch. 🏦 Small Business Champions: Preferred by 80% of independent businesses. ⏱ Quick Decisions: Local decision-making means faster approvals. 💬 Community Commitment: Actively engaged in building stronger neighborhoods. Discover how community banks in your area are making a difference! Visit ICBC’s website to learn more about our member banks and the incredible impact they have on your community: icbcolo.org #ICBC #CommunityBanks #SupportLocal #SmallBusiness

🌟 Is Your Money Working Hard Enough? 💸 If you have cash savings sitting idly, it’s time to make them work harder for you! With rising inflation, your savings need to earn more than just dust. Here’s how you can make the most of your money with some top high-interest easy access accounts available right now: Ulster Bank (NatWest Owned) - 5.20% 🚀 Your savings deserve a boost! Earn 5.20% interest while keeping your money accessible. Ulster Bank, part of the NatWest group, offers reliability and impressive returns. Oxbury Bank - 5.04% 🌿 A perfect blend of competitive interest rates and flexibility. With Oxbury Bank, enjoy a 5.04% rate and watch your savings grow while having easy access when you need it. Monument Bank - 5.03% 🏦 Monument Bank offers an appealing 5.03% rate, allowing you to keep your savings fluid without sacrificing growth. Ideal for those who want peace of mind and good returns! Don’t let your money rest when it could be working for you. Explore these accounts and start maximising your savings potential today! 💪📈 #Finance #HighInterestSavings #SmartSavings #FinancialFreedom

🌟 Is Your Money Working Hard Enough? 💸 If you have cash savings sitting idly, it’s time to make them work harder for you! With rising inflation, your savings need to earn more than just dust. Here’s how you can make the most of your money with some top high-interest easy access accounts available right now: Ulster Bank (NatWest Owned) - 5.20% 🚀 Your savings deserve a boost! Earn 5.20% interest while keeping your money accessible. Ulster Bank, part of the NatWest group, offers reliability and impressive returns. Oxbury Bank - 5.04% 🌿 A perfect blend of competitive interest rates and flexibility. With Oxbury Bank, enjoy a 5.04% rate and watch your savings grow while having easy access when you need it. Monument Bank - 5.03% 🏦 Monument Bank offers an appealing 5.03% rate, allowing you to keep your savings fluid without sacrificing growth. Ideal for those who want peace of mind and good returns! Don’t let your money rest when it could be working for you. Explore these accounts and start maximising your savings potential today! 💪📈 #Finance #HighInterestSavings #SmartSavings #FinancialFreedom

Partnering with a regional community bank offers distinct advantages for businesses: Personalized Service: Regional community banks prioritize personalized service. Business owners can expect to build strong relationships with dedicated bankers who understand their unique needs and goals. This customized approach allows for tailored financial solutions, responsive support, and a deeper understanding of the local market dynamics. From crafting customized loan packages to providing strategic financial advice, businesses receive individualized attention that fosters trust and long-term success. Local Expertise: Regional community banks have a deep understanding of the local market landscape. Moreover, community banks often reinvest deposits back into the local community through loans, stimulating economic growth and fostering a symbiotic relationship between the bank and its customers. In the immortal words of Moira Rose, “Life is but a strand of happy accidents.” And now that you've stumbled upon the #BaldBusinessBanker profile, it's time to connect and discover what you’ve been missing. Who knows, it might just be the financial solution you've been looking for. #TriCountiesBank #BusinessOwner #Banking #CommunityBank #SanDiego #MemberFDIC #Headshot by the amazing Jodi Williams

The impact of high-cost funding is showing up in a big way in some banks' margins: Bank NIMs are now below pre-pandemic averages and the percentage of unprofitable community banks is growing. Banks need to make sure they expand their focus on controlling high-cost funding to ensure they protect what remains of the bank's profitability. My latest, with interviews from Jeff Davis and Chris Nichols:

I'll say it again, louder for those in the back: Banks 👏🏻 must 👏🏻 deliver 👏🏻 non-rate 👏🏻 value. "NIMs fell an average of 10 basis points, to 3.17%, at the end of the first quarter — below the pre-pandemic average of 3.25%" as Kiah Lau Haslett of Bank Director reports, "Already, there are cracks in some banks’ profitability. The 'small but rising; number of unprofitable community banks rose to 5.2% at the end of 2023, up from 3.5% a year prior, according to the FDIC’s 2024 Risk Review." Alloy Labs member and Director of Capital Markets at SouthState Bank Chris Nichols nails it, as he says in the article: “If banks focused more on engaging their customers and being relevant to them, deposits would naturally flow. Instead, they’re focused on the symptoms rather than the cure.” I fear that not enough bankers truly understand the fragility of the traditional bank business model. It's been called by some "a legal license to print money", and in the ZIRP era it practically was. Since the average bank earns the vast majority of their revenue from spread income, and that is getting squeezed, it kicks off a vicious cycle of cutting expenses below the run rate of current revenue. I can tell you from experience that is WAY less fun than growing your revenue faster than your current expense run rate. Positive operating leverage FTW. That's before we even talk about inflation, legacy fixed costs, an inverted yield curve, credit cycles, and the impact of credit losses on leveraged balance sheets, or how most banks are barely earning an ROE above its cost of capital. As Chris says: “Make the changes today, and banks won’t have this problem a year from now, but I think the banking industry is going to continue having this problem two or three years from now. We’re still going to be talking about margins and funding.”

Happy Community Bank Week! Let's take a look at today's myth... Myth #2: "It's so much easier to apply for a car loan online with one of the big banks." BUSTED! Most community banks have very easy loan application processes and, because you can walk into your local branch and discuss your options in person, it is much easier to quickly find the loan that is best for you. In addition, you can directly call your local community bank instead of a long wait at a call center, making things much easier over the life of your loan! #midwesternsecurities #communitybankweek

Happy Community Bank Week! Let's take a look at today's myth... Myth #2: "It's so much easier to apply for a car loan online with one of the big banks." BUSTED! Most community banks have very easy loan application processes and, because you can walk into your local branch and discuss your options in person, it is much easier to quickly find the loan that is best for you. In addition, you can directly call your local community bank instead of a long wait at a call center, making things much easier over the life of your loan! #midwesternsecurities #communitybankweek