Community Banking Bulletin

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

Recent Highlights and Features

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…

Highlight: Losses in securities portfolios remain historically high

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