This last year was brutal for NIM compression at most community banks. And yet it was understandable, and it reconciled with some nice PPP fee income that drove up the profits of many banks.
However, bank boards are now more than a little concerned. Since fee income from PPP won’t be there in 2022, they are wondering how you intend to bump NIM back up without sacrificing loan quality or growth.
Why has it been such a struggle for thousands of banks to figure out how to end the “we can do this deal as long as we match the rate” conversation that has been going on for…well… decades?
