With so much focus on the state of the nation’s big banks, the strength of thousands of community banks across the country has become easily forgotten. The Independent Community Bankers of America reiterated last week that over 8,000 community banks are operating in good standing and outperform bank industry averages in many notable metrics, such as leverage ratios and net charge offs.
Data from the ICBA showed that community banks with less than $1 billion in assets posted growth in net loans for the second quarter of 2009, the only segment of the banking industry to accomplish such a feat.
“Community banks lend locally, know their customers and continue to stick to traditional lending practices—all of which contribute to the continued stability and strength of the community banking sector,” said R. Michael Menzies, ICBA chairman and president and CEO of Easton Bank and Trust Co., Easton, Md.
