- Overhead costs related to salaries have increased across community banking organizations_(CBOs)despite lower levels of full-time equivalent (FTE) employees._The number of FTE employees at CBOs has steadily declined throughout time, reaching a record low in early 2022. At the same time, total bank spending on salaries is at record highs. The average salary per employee now totals nearly$101,000.
- Although rising, total salary costs increased at a slower rate than the significant growth in total assets over the prior three years. As a result, salary expense as a percent of average assets declined to a record low of 1.4 percent in 2022.
- Significant asset growth and decreased FTE employee levels have also resulted in record-high asset-to-employee ratios. CBOs now hold $7.3 million of assets per employee, up from $5.6 million at year-end 2019. Increased asset-to-employee ratios have been seen across all bank sizes, though smaller CBOs continue to hold less assets per employee than larger CBOs.
Questions or comments? Please contact KC.SRM.SRA.CommunityBankingBulletin@kc.frb.org