Deposits

A strong economy, low-cost deposits and disruption from M&A are presenting opportunities.

A combination of mutual and clashing interests has driven many players — credit unions, big banks, community banks and fintechs — to offer high-interest, digital-only savings and checking.

Community banks will likely face questions about mortgage lending, deposit gathering and M&A during earnings calls.

Many community banks are launching digital banks, more aggressively courting younger customers and abandoning the idea that only primary banking relationships are worthwhile.

More community bankers now say that cost of funds, not regulatory expense, poses the biggest threat to profits, according to a new survey.

On Jun. 30, 2019. Dollars in thousands.

CEOs have been telling investors that if the Fed continues to cut interest rates, they will lower rates they are paying on deposits to minimize the hit to net interest margins. The danger is that if they lower rates too quickly or by too much, big depositors could go elsewhere.

Geographic scale and low-cost funding are the foundation of a good deal, seasoned bank acquirers said in a panel discussion.

M&T has skillfully used hedges, maintained an appropriate loan mix and resisted offering market-leading deposit rates, its chief financial officer said at a financial services conference.

For the third time in five months, the San Francisco bank made a downward revision Monday to its guidance on net interest income. An executive cited the impact of lower interest rates.