ABA Banking Journal Competitiveness Survey 2008 - (Page S22) Exhibit 56 HSAs (cont’d.) come hot. In January 2008, Celent, LLC, published HSAs: Moving Beyond the Growing Pains. The report predicted that over the next five years, HSA growth will range between 40%-50%, resulting in 12.5 million accounts by 2012. And that could be good medicine. Though the report predicts that the market will split between “manufacturers”—those actually providing the service—and “distributors”—those that sell it—community banks that get a toe in now may be setting themselves up for a good deal. >Have HSAs been a good fee source? Yes 6.6% (6.1%) No 93.4% (93.9%) Exhibit 55 >Are HSAs a good deposit source? Percentages in parentheses represent 2007 survey report. Exhibit 57 >If you don’t offer HSAs, why not?* 72.6% (62.7%) Yes 21.2% (16.8%) BY ASSET SIZE YES “We don’t see enough potential for deposits or for revenues.” “HSAs don’t look like a steady source of long-term deposits.” “There are too many big competitors.” “We haven’t been able to find a cooperative insurance firm.” Other: Includes compliance and administrative costs, lack of core processor support. No 78.8% (83.2%) 15.7% (14.2%) 7.4% (9.9%) 4.3% (9.3%) 20% (21.7%) Under $500 million $501-$999 million $1 billion-up 19.2% 25.6 33.3 *Banks could chose multiple answers. Percentages in parentheses represent results of 2007 survey. Percentages in parentheses represent 2007 survey report. Exhibit 58 >How did your CAMELS rating turn out on your last safety-and-soundness exam? [Percentages in brackets were what bankers expected prior to exam.] (Percentages in parentheses reflect previous survey’s findings.) Worse 9.7% [4.7%] (10.2) Examinations: Calm before a storm? F Exhibit 59 Almost twice the level expected. or many bankers, such times as we are in, and may be on the verge of, haven’t been seen in their careers. A decent number of CEOs weren’t in their posts, or even in banking, when examinations, in the 1980s and early 1990s, were hellish affairs. It was a period when many banks failed, and it wasn’t unusual for boards of directors of those that still Better 24.9% [19%] (23.8) Identical to previous exam 65.5% [76.3%] (65.8%) >What was examiners’ greatest focus? Commercial real estate Bank Secrecy Act 34.7% 38.7% Up from 26.8% and second ranking in 2007 survey Down from 51.9% and first place in 2007 survey 10.3% Asset-liability management BY ASSET SIZE BETTER WORSE IDENTICAL Under $500 million $501-$999 million $1 billion-up BY FEDERAL REGULATOR 23.9% 9.6% 34.3 8.6 22.2 13.9 66.5% 57.1 63.9 3.3% Residential mortgage lending 1.2% Capital ratios BY ASSET SIZE CRE BETTER WORSE IDENTICAL FDIC OCC FRB OTS 21.7% 26.2 36.9 34.2 9.4% 11.5 9.2 5.3 68.9% 62.3 53.8 60.5 Under $100 million $101-$200 million $201-$500 million $501-$999 million $1 billion-up 25.3% 35 46.4 56.1 60.6 S22 MARCH 2008/ABA BANKING JOURNAL Competitiveness Survey 2008
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