Community Banking Bulletin
Provides insights on trends or activities of primary interest to the community banking industry.
Recent Highlights and Features
Highlight: CRE concentration and ACL levels stabilize
CRE concentrations and ACL levels at community banks have stabilized in 1Q 2024, both above 10-year averages
Highlight: Nonperforming loan levels remain low overall
Though credit conditions have experienced slight deterioration, nonperforming loans remain at low levels across most loan types...
Highlight: Community bank deposit pricing becoming more sensitive as policy rates remain stable
Community banks were slower to raise deposit rates in the early stage of the rising rate cycle but increased the pace in 2023…
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…
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For questions and comments, please contact KC.SRM.SRA.CommunityBankingBulletin@kc.frb.org.