Deposit Costs & Other 2Q17 Trends

By Chris Marinac | July 31, 2017

Loan Yields Are Climbing, And Deposits Are Too

There are 310 public banks and thrifts above $500 million in assets who have reported 2Q-2017 results through Friday, July 28th. We highlight the KRE Bank sector ETF plus all banks without a closed M&A transaction during either 2Q17 or 1Q17.

We examined deposit costs reported in the S&P Global database (formerly SNL Financial), which excludes debt but includes DDA/no-cost funding. Also, loan yields and reported NIM-Net Interest margin received our primary attention.

Since the Fed Funds rate rose by 25 basis points in 2Q, we feel understanding banks’ deposit pricing behavior is quite important.


• Banks’ deposit costs climbed for over 90% of companies who have reported 2Q17 financial data. Loan yields are similarly higher.

• Loan yields tend to be more pronounced, with 60% of all reporting banks (with zero M&A) and 78% of the KRE membership seeing over a 5 basis point increase.

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