Fierce competition slows loan growth at Minn. community banks in 1Q

Author:
Updated:
Original:

An executive with the Federal Reserve says Minnesota's 355 community banks did worse than he expected in the first quarter, the Pioneer Press reports.

Loan growth slowed to less than one percent, but on the bright side there are fewer bad loans on the books.

"The problems that got many banks in trouble are largely gone," Ron Feldman, a senior vice president at the Federal Reserve Bank of Minneapolis, said at a news briefing at the Fed's downtown Minneapolis headquarters.

The Star Tribune notes profits were flat in the first three months of the year compared to a year ago.

"What I hear from bankers is that loan competition, particularly on the commercial side, is exceptionally fierce, Feldman added, according to Minnesota Public Radio. "So, you're going to see competition on price. So, you're going to be able charge a little bit less than maybe you would have been able to several years ago."

Click here, for a break down of Minnesota bank performance in the first-quarter.

Next Up

Screen Shot 2021-06-23 at 8.03.52 AM

Racist vandalism under investigation in Washington County

The incidents occurred in Scandia and May Township.

lakeville day care

Man arrested after body found near Lakeville day care

The man was arrested in Belle Plaine after he shot himself.

motorcycle

Wayzata motorcyclist killed in crash that closed Hwy. 7 in Shorewood

The 20-year-old suffered fatal injuries in the Tuesday evening crash.

Screen Shot 2020-08-14 at 6.45.53 PM

Man fatally shot outside market in Brooklyn Park

The victim was shot numerous times, police said.

Flickr - mosquito skin - Jim STauffer

Mosquito levels remain low - but there's some bad news

Get ready to learn about Culex mosquitoes and West Nile Virus.

Dychaun Chew - South High School Facebook

Charges: Driver was going 55 mph, blew stop sign in crash that killed teen

High school sophomore Dychaun Lavonte Chew died after being hit.

Max Kepler

Twins' 8th-inning rally ruined in the 9th as bullpen woes resurface

The Twins scored five runs in the eighth before the bullpen unraveled in the ninth.

Flickr - 148th Fighter Wing - Pete Markham

Air National Guard: Don't be alarmed if you hear fighter jets

The 148th Fighter Wing in Duluth is doing some scheduled night flying.

Lauri Anne Deatherage

Charges: Man killed ex-wife because she got remarried

He sent videos explaining his decision to family members, charges state.

bicycle-557046_1280

Bicyclist killed in crash with truck near Rochester

The truck apparently collided with the bicyclist near an intersection.

Related

U.S. Bank ending student loan biz

College students looking for private loans have fewer options. Minnesota Daily reports after nearly 40 years in the student-loan business, Minneapolis-based U.S. Bancorp is going to pull out of the student loan market. A company spokesperson said U.S. Bank was a "very small player" with less than 1.5 percent of the student-lending market share. JPMorgan Chase has also decided to only lend student loans to existing customers.