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Articles tagged with "community banking"

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Deposit Beta & Cost of Funds: What Bank Analysts Actually Measure

Between Q1 2022 and Q4 2023, the Fed funds target rate rose 525 basis points. The median community bank saw its cost of funds …

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Bank Peer Group Analysis: A Practical Guide

Tell someone a bank has a 3.5% [net interest margin](https://www.bankregreports.com/blog/what-is-net-interest-margin/) and you have told them almost nothing. Is that good? Depends entirely on whether …

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Nonperforming Loans and the NPL Ratio: What the Number Actually Tells You

At the peak of the 2008 credit cycle, the industry-wide noncurrent loan rate hit 5.4% — nearly one in twenty loan dollars had stopped …

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What Is the Net Charge-Off Rate? A Bank Credit Guide

In the fourth quarter of 2009, the net charge-off rate for U.S. commercial banks hit 3.0% annualized — a level that would be catastrophic …

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What Is the Loan-to-Deposit Ratio? A Bank Guide

Three banks failed in 2023 with loan-to-deposit ratios that looked fine on the surface. The ratio was not their problem — their deposit composition …

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ROA vs. ROE for Banks: Profitability Ratios Explained

The FDIC reported an aggregate industry ROA of 1.24% for Q4 2025. In that same quarter, dozens of community banks posted ROE well above …

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What Is the Bank Efficiency Ratio? Formula, Benchmarks, and What Moves It

In 2023, the median efficiency ratio for U.S. community banks crossed 65% for the first time in a decade — not because banks got …

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Educational

What Is Net Interest Margin? A Bank Profitability Guide

Net interest margin is the single most important measure of a bank's core profitability — the spread it earns between lending out money and …

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Educational

What Is the Texas Ratio? A Bank Failure Warning Sign

The Texas Ratio is one of the simplest and most reliable early-warning signals for bank failure. Learn what it measures, how to calculate it …

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Educational

The CAMELS Rating System Explained: A Guide for Bankers

Every FDIC-insured bank receives a CAMELS rating after examination. This composite score from 1 to 5 affects regulatory oversight, deposit insurance premiums, and growth …

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