Community bankers still expect to add employees to their payrolls in 2005. However, the number of bankers who anticipate more hirings has declined from the number who said so last year.
Fifty-one percent of chief executives and other senior officers responding to Grant Thornton LLP’s 12th annual survey of community bank executives said that they expect work-force increases this year, down from 58%.
But the percentage expecting to reduce head count also fell, to 4% from 9% in the year-earlier survey. Forty-five percent said they expect no changes in staffing, against 33% a year earlier.
“Head counts are stabilizing at banks,” said John Ziegelbauer, the partner in charge of Grant Thornton’s financial institutions practice in Chicago. “Bankers may not be as expanding as much,” he said, “but they’re still optimistic enough about the economy and the state of community banking that not as many of them are thinking about reducing the number of employees.”
Grant Thornton mailed questionnaires to 4,625 executives of community banks and thrifts in November. It received 442 completed surveys and will publish the findings next week
Ninety-three percent of respondents said retaining key employees is important to their continued success.
“They are the bank’s public ‘face’ — not only inside the walls but outside, among the community,” Mr. Ziegelbauer said.
Seventy percent of respondents said their bank had assets of more than $100 million, and 22% more than $500 million. Forty-five percent said their main market is rural, 38% suburban, and 17% urban.
Nearly 30% of respondents were from publicly held banks. Fifty-seven percent were at private corporations and 13% at mutuals.
