rate increase

​Helen,

The pricing-only "pecking order" for financial institutions based on their cost structures is pretty clearly ranked:

1. Online banks
2. Credit unions
3. Community banks
4. Large branch banks

So, if you compete on price alone with those with a lower cost structure, the conclusions will be bad for community banking.  However, online banks aren't so good at making relationship based offers.  You can. 

How about offering a companion deposit account that gives your front line some good news for that saver who has used Google to get savings rates?  Yes, if they are bringing you fresh money, you can invest in Treasuries and make a profit at 1.60% today, but not if you are moving all of your other low-yield and no-yield accounts over.  Therefore, banks like yours are keeping deposits and winning new ones with debit-only savings products.    Here is an example http://blog.tsbank.com/get-the-best-in-savings-high-yield-and-no-commitments


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Neil Stanley
President of Community Banking
TS Banking Group
Treynor, Iowa
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Original Message:
Sent: 04-16-2018 11:54
From: Helen Chan DeFusco
Subject: rate increase

​I see some "Internet" banks (banks that have no physical presence in the markets we serve) offering some ridiculously high CD rates.  How can a small community bank compete with that?

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Helen Chan DeFusco
EVP & CFO
Metro Phoenix Bank
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