Bank Analysis School

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

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