Financial thoughts

The Independent Community Bankers of America released a survey of its members that show the majority of them have seen an increase in deposits as a result of getting new customers, while only 17 percent had seen customers draw down deposit accounts.

The ICBA in February surveyed 743 community banks to see the impacts of the financial crisis on community banks. The survey was conducted by Aite Group LLC.

“While the financial crisis has affected banks of all sizes and in all regions, community banks continue to lend and are typically faring much better than the larger banks because they didn’t participate in the high-risk activities that led to problems we are experiencing,” said Camden Fine, president of the ICBA. “This survey clearly shows that the vast majority of community banks are well-positioned to survive the economic downturn and, perhaps, even reclaim some of the customers from larger banks payday advance.”

The survey found that 55 percent of banks increased deposits as a result of new customer acquisition.

Community banks are getting new customers at a faster rate than in the past, the survey found, with 57 percent or respondents getting an increase in new retail customers during second half of 2008 compared to the first half of the year. The survey found 47 percent of independent banks saw an increase in new business customers.

And the survey found that community banks are making new loans, with 40 percent or respondents experiencing an increase in loan origination compared to the year earlier.

The ICBA is the represents 5,000 community banks of all sizes through the country.

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