Although hundreds of community banks failed or were sold as the U.S. economy tanked, some local banks fared well. members of three banking families explain why their institutions survived the industry's sweeping changes.
By Deanne Stone
It isn’t easy to be a small community banker these days. Since the start of the financial crisis in 2008, local banks have failed in record numbers, regulatory red tape has increased and profits have been squeezed —forcing many to sell to big banks or go under.
Small community banks, those with assets of less than $10 billion, make up 98.6% of institutions insured by the Federal Deposit Insurance Corp. The failures have been highest among local banks overexposed to risky commercial real estate, construction and land development loans. More of these institutions will likely vanish in the next few years. …
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