We saw a 50% drop off in the immediate wake of COVID-19 and more recently it has returned
to about 75% of normal. We attribute that to 1) stay at home orders, 2) CARES act aid with PPP,
increased unemployment benefits and stimulus checks. The interesting part of this has been the debit card
spend, that is still at/above normal, which makes sense if people are doing their buying via online.
Time will tell if this is the new normal or if it will revert to prior trends.
------------------------------
Jon Drake
Senior EVP & CFO
Peoples Bank
Lubbock TX
------------------------------
-------------------------------------------
Original Message:
Sent: 09-02-2020 07:30
From: Barb Rehm
Subject: Fee Income Shrivels in Pandemic's Wake
if your fee income is way off, you're not alone. S&P Global's Market Intelligence reports that fee income as a percentage of the industry's operating revenue plunged 49% in the second quarter. Overdraft fees fell the most, but maintenance and ATM fees also took a dive. You can read more about this trend and where it's headed in our new weekly post compliments of S&P Global Market Intelligence and no login required.
------------------------------
Barb Rehm
Senior Managing Director
Promontory Interfinancial Network, LLC
Arlington VA
------------------------------