bank profitability

Navigating the Shifting Tides: Unraveling the Dynamics of Higher for Longer Rates and Profitability Trends in Community Banks

In the dynamic world of community banking, bank leaders find themselves at the helm of an industry experiencing pronounced shifts in profitability trends. As we await comprehensive Q4 peer data, […]


Banking Profitability Roundup

End of year brings banking industry summaries. Some are very good, such as this one written by Jeff Davis of Mercer Capital (Mercer). In his summary, you’ll find charts and […]


Mortgage Banking: How profitable should it be?

July 14, 2012 | Uncategorized

I recently spoke to an old friend that is a bank equity research analyst and asked him how his coverage universe was doing with second quarter earnings. He said his […]


Risk Adjusted Return on Capital (RAROC) for Financial Institutions

May 8, 2012 | Uncategorized

How do you measure the profitability of lines of business, products, or customers? The simplest form is in dollars. But does that measure the profits against the investment required to […]


Is branch profitability out the window?

May 2, 2012 | Uncategorized

About 10 years ago my firm analyzed the hundreds of branches in our profitability database to determine exactly what is “critical mass”. We sorted by pre-tax profit contribution as a […]


Vblog: The Benefits of Niche Profit Reporting with David Acevedo

March 20, 2012 | Uncategorized

I regularly attend industry conferences and occasionally will particpate as an exhibitor. One of the benefits of spending long hours in the exhibit hall is to take advantage of the […]


Bank Cost Structures: Mostly Fixed

March 10, 2012 | Uncategorized

I recently taught Bank Profitability to a Washington Bankers’ school. As part of the curriculum, we discussed the cost structure of financial institutions and how it impacts decision making. True to […]


In Pursuit of Return on Equity

January 4, 2012 | Uncategorized

When performing ratio analysis to determine a company’s profitability we should remember that a ratio has at least two data points: a numerator and a denominator. It doesn’t matter if […]