Banks Weigh Costs of $10B Threshold as Growth Opportunities Emerge

Sixteen community banks reported assets between $9 billion and $10 billion last quarter, including six above $9.9 billion, S&P Global Market Intelligence reported. Several are deliberately delaying crossing the $10 billion threshold because of higher regulatory costs and reduced interchange income under the Durbin amendment. Others are planning to cross it soon.

Another S&P article noted that CRE delinquencies held steady at 1.53% in the first quarter while year-over-year CRE loan growth increased to 3.0% from 2.8%, suggesting stable credit quality and improving loan demand despite higher interest rates.