First-Quarter Highlights at Smaller Banks
April 22, 2013 4:13 PM
Dozens of community banks have reported quarterly results. Here's what we've learned so far. (Image: Thinkstock)
Cutting Rates to Book Loans
Average loan books are up 9% from a year earlier, but compressed margins suggest that banks are aggressively reducing rates to land business. (Image: Thinkstock)
Deposits Leaving Banks
Banks are successfully getting higher-cost deposits off their balance sheets. Average deposits are down 0.6% from the fourth quarter. (Image: Thinkstock)
Better Balance
Loans and deposits are slowly getting closer to equilibrium with banks holding $85 in loans for every $100 in deposits at March 30. (Image: Thinkstock)
Deposit Charges Improve
Fees associated with deposit accounts, which eroded in previous years from various regulations, are up 4% on average, from a year earlier. (Image: Thinkstock)
Credit Woes Now a Trickle
All credit metrics are improving from a year earlier, including net chargeoffs (down 53%), nonperforming assets (down 20%) and loan-loss provisions (down 44%). (Image: Thinkstock)
Cleaner Results
Securities gains are down 25% from a year earlier, suggesting that banks are relying more on core operations to make money. (Image: Thinkstock)
Capital Holds Up
The average total risk-based capital ratio is down slightly from a year earlier, at 15.28%, but remains well above the 10% threshold forwell-capitalized institutions. (Image: Thinkstock)
