Banks have been in full cost-cutting mode in recent years, but with profits expected to increase substantially as a result of tax reform, all analysts and investors want to know is how they plan to spend their tax savings.
Changing political and economic forces are raising new questions about deployment of tax savings and the cost of deposits, while old concerns about cost-cutting, credit quality and risk-taking persist or return.
Carter Bank & Trust’s founder shunned internet banking and handled most executive duties himself. He died in April and his successor, Litz Van Dyke, is now working at breakneck speed to modernize this once-hidebound Virginia bank.
David Becker is trying to prove to investors that his Indiana bank can succeed over the long term. With the rise of online banking and fintech firms, Becker is a community banker worth watching in the new year.
For the first time in nearly nine years, an acquirer of a failed bank agreed to purchase only the institution’s insured deposits, making it likely that some customers will not recoup all of their uninsured funds.
It’s only early December, but bank CEOs’ comments this week about tax reform, their thirst for deposits, consumer lending initiatives, and challenges in commercial lending offer a sneak peek at what’s coming when earnings season begins next month.
Online banks have been aggressively raising the rates they pay on consumer deposits, and that is forcing mainstream banks to consider following suit or risk losing valuable deposits to their more nimble competitors.
The Michigan company, which lost more than $1.4 billion in the aftermath of the financial crisis, is trying to become more of a commercial lender. Its recent agreement to buy a deposit-rich franchise in California could help it get there.