Early Takeaways from the Smaller Banks' 4Q Earnings
January 29, 2015 12:35 PM
Banks with $35 billion or less in assets are slowly recovering financially, as revenue and profit improved in the fourth quarter. Here is a look at how more than 240 banks tracked by American Banker finished off 2014.
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Revenue Rises
Revenue, on average, increased 10.5% at the banks evaluated by American Banker. Bottom line returns are also up, helping many banks build capital.
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Solid Loan Growth
Small and midsize banks, on average, have reported a 16% increase in their loan portfolios from a year earlier. Much of that has come from commercial lending. The ratio of loans to deposits has improved to 86.7% from 83.8% at the end of 2013.
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Margins Tighten
Competition among lenders is
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Fee Income Improves
Banks are finding ways to
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Costs Climb
Noninterest expenses, on average, increased 1.8%, after
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Saving for a Rainy Day
Loan-loss provisions, on average, rose 16.5% from a year earlier, even as net chargeoffs and nonperforming assets declined, suggesting that many banks are padding reserves due to loan growth or
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