Community Banking Bulletin

Provides insights on trends or activities of primary interest to the community banking industry.

Recent Highlights and Features

Highlight: Increasing pressure on bank earnings performance

Bank earnings have been pressured by increased interest expenses, overhead costs, provisions, and realized losses on securities...

Deposit composition continues to shift amid heightened competition

Runoff in core deposits stabilized in the latter half of 2023 while non-core deposits, particularly large time deposits, continue.

Highlight: Capital buffers declining at community banks

Very few community banks report a capital conservation buffer below the minimum requirement, which protects banks during…

Highlight: Losses in securities portfolios remain historically high

Community bank securities portfolio losses generated in the rising interest rate environment remain elevated but unrealized…

Feature: Agricultural loan growth has returned to pre-pandemic levels

Community banks continue to play an integral part in commercial bank agricultural lending

Highlight: Liquid Assets Declining From Pandemic Highs

The level of assets generally considered highly liquid has seen a significant decline as on-balance sheet liquidity has been used…