Journal Article

Tenth District community banks : who is at risk?

Abstract: The survey of community banks revealed that many Tenth District community bankers are concerned about their banks' ability to compete and succeed in the future. In light of these concerns, the authors looked at recent performance trends to see how District community banks have done and to determine if any are showing performance weaknesses. They found that Tenth District community banks, as a group, continue to perform well. However, they found that banks with total assets less than $25 million are losing performance ground. At particular risk in this group of banks are smaller banks located in places with limited growth opportunities. These banks may be too small to be efficient financial service providers and their slow growth may make it increasingly difficult for them to absorb rising operating costs. As a result, the future for these smaller banks may not be particularly bright. Managers at these banks may have to take a proactive approach to meeting marketplace challenges if their banks are to remain viable competitors.

Keywords: Banks and banking; Federal Reserve District, 10th;

Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Financial Industry Perspectives

Publication Date: 1994

Issue: Oct

Pages: 21-28