Community Banks Post Strong Results as Industry Funding Costs Stabilize

Community banks with fewer than $10 billion in assets posted stronger median deposit growth, profitability, net interest margins, and efficiency ratios year over year in the second quarter, according to S&P Global Market Intelligence. Meanwhile, loan growth remained positive but slowed compared to the prior year amid economic uncertainty.

Another S&P article noted that banks’ funding costs have stabilized while deposits continue to grow.