Banks eye noninterest income to up revenue; cheap money era nearing its end

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Banks increasingly look to noninterest income to bolster revenue

U.S. banks have generated substantial growth in noninterest income since 2019 as they looked to diversify their fee-based revenue streams, but the overall numbers mask diverging trends over the last year.

As cheap money era ends, smaller companies face capital crunch

Rising interest rates are making it more expensive for companies and consumers to borrow money, signaling that the period of "cheap money" that followed the Great Recession of 2008-2009 is finally coming to an end.

Global private equity deal value sinks to 12-month low in May

READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.

More highlights

* Carmichaels, Pa.-based CB Financial Services Inc., the parent company of Community Bank, recorded a loan charge-off of $2.7 million tied to a commercial and industrial loan.

* Fannie Mae priced an approximately $754 million note offering representing its sixth Connecticut Avenue Securities real estate mortgage investment conduit, or CAS REMIC, transaction of 2022.

* Financial data company Credit Bureau Connection Inc. named David Carner CEO, effective immediately.

* Richmond, Va.-based Cary Street Partners LLC agreed to acquire Atlantic Union Bank's registered investment advisory business Dixon Hubard Feinour & Brown Inc.

Chart of the day

Sequentially, noninterest income was up 8.2% from the fourth quarter of 2021 to the first quarter of 2022 at larger banks, but down 8.5% at smaller banks. Over the same period, net interest income rose 1.3% at larger banks and fell 1.0% at smaller banks.

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