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Article: Best of the small banks feel pinch from rate rise. (community banks)
- Article from:
- American Banker
- Article date:
- June 10, 1994
- Author:
CopyrightCOPYRIGHT 1994 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Profits are starting to cool at the nation's hottest community banks.
After surging for three years, returns on assets slipped last year at the most profitable community banks, according to an American Banker survey. And experts see tougher times ahead for virtually all small banks because of rising interest rates and shrinking margins.
"We just aren't going to be able to maintain the earnings that we have," said Ross Reid, president of First State Bank, a top performer based in Big Sandy, Tex. "The rates will hurt us."
Of course, these banks aren't exactly in trouble. The 100 most profitable large community banks - those with assets of $50 million to $1 billion ...