Performance Measurement

TMIB Lite: Community Bank Profitability

By: Sharon J. Lorman
Jeffrey P. Marsico
Gregg J. Wagner

Podcast Show Notes:

Our This Month In Banking (TMIB) podcast features discussion with colleagues and other industry thought leaders on interesting banking news that happened this month. TMIB will be available on the last Wednesday of every month here, and on Apple and Droid podcast apps for your listening enjoyment. Join us on your commute or at your desk.

Topic: Community Bank Profitability!
Bank Director Magazine recently published their “Profitability Issue.” Features included an article on the recent tax gift, commercial real estate, and technology, in this case moving to a cloud-based core. But one feature struck us as exclusionary: “The Most Profitable of the Big Banks”. Well, what about small banks, or smaller banks? Because the Bank Director article focused on JPMorgan to US Bancorp, i.e. $2.5T to a $462 billion in assets banks. By the way, it was not lost on us that the smallest of the mega-banks, US Bancorp, is the most profitable.
But what about community banks? There are plenty of examples of community banks that beat U.S. Bancorp’s 1.39% on assets and 13.80% ROE. Our panelists Jeff Marsico and Gregg Wagner have some ideas about how high performing community banks can stay at the top, and how others can get there.

Watch for episode 29 of This Month in Banking to be released on Wednesday, May 30, 2018 and a new episode on the last Wednesday of every month.

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