Bank Analysis School eBook

Internal Use Only

Net Interest Income is the “Bread and Butter” for Most Community Banks

Internal Use Only

Interest Rate Changes Affect Asset Yields and Funding Costs

9.0%

7.5%

Fed Funds Rate

6.0%

Yield on Earning Assets

4.5%

3.0%

1.5%

Cost of Funding

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023