2025 Data Analysis Highlights the State of Community Banks

Haberfeld, an industry leading strategic growth partner for community financial institutions across the United States, shares community bank industry research results.

Haberfeld’s research is based on the analysis of more than 15 million data points each month, providing insights that are representative of the community banking sector.

“Community banks and credit unions have enjoyed tailwinds in the form of improving noninterest income, while enduring headwinds related to the interest-rate environment and economic uncertainty over the last 12 months," explains Dr. Sean Payant, President of Haberfeld.

Key Observations / Findings:

• Faced with incredible pressures from large institution marketing spend, account openings for retail and business checking declined 5% over the prior year.
• Debit card spend increased at the rate of inflation.
• OD/NSF frequency and income increased by 8.7% and was back at pre-pandemic levels.
• Led by strong interchange numbers, noninterest income increased for banks below $10B and remained stable for banks above $10B.
• Checking account attrition remained steady at 10% for both retail and business customers.
• Portfolio average balances for both retail and business checking accounts have trended down but are well above pre-pandemic levels:
  • Retail: $6,973 (up 24% since 2019)
  • Business: $30,322 (up 21% since 2019)
• Deposit and loan volumes are up 4% and 5% respectively, with deposits up slightly at 0.3% and loans up 7%.

“With tremendous competition for core relationships and deposits, it is more important than ever for community financial institutions to focus on both acquisition and retention strategies,” explained Payant. “Across our client base, banks that have stayed focused on a long-term growth strategy have consistently outperformed their peers; most have seen an average 37bps+ cost of funds advantage, up to 2.00x household and business acquisition, 1.85x deposit growth, and 1.63x loan growth.”

As consumer habits continue to evolve, community banks must remain focused on delivering innovative solutions to support customer needs while staying true to their relationship-based banking model.

About Haberfeld

Haberfeld is a team of data analysts, consultants, creatives, industry experts, and more who excel at helping community financial institutions grow using their High Performance Growth™ strategy. Taken together, Haberfeld’s client network constitutes the 4th-largest financial institution in the country by branch count.

The company’s health services vertical, HabWell, uses data-driven strategies to help health care providers, systems, and payors grow patient volume and improve the patient experience for healthier communities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250902624546/en/