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US banks booked more service, overdraft fees in Q2'19

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US banks booked more service, overdraft fees in Q2'19

Consumer deposit fees at U.S. banks and thrifts reached $4.44 billion in in the second quarter, up from $4.18 billion in the first quarter, and $4.30 billion in the year-ago quarter.

Overdraft fees rose to $2.93 billion in the second quarter from $2.72 billion in the previous quarter, while ATM fees climbed to $479.6 million from $437.9 million.

Service charges and fees remain a small portion of the industry’s income, accounting for only 2.2% of operating revenue, although that was an increase from 2.0% in the first quarter.

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Bank of America NA reported the most service fees on consumer deposits in the second quarter at $740.0 million, equal to 3.8% of the bank’s operating revenue.

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Many of the institutions most dependent on fees as a percentage of operating revenue are smaller community banks. Of the top 20, only two banks had total assets over $100 billion. TD Bank NA, the largest bank in the group at $305.42 billion in assets, derived 9.9% of its operating revenue from fees in the second quarter.

The top three banks most dependent on service fees as a percentage of operating revenue maintain a large portion of branches in Walmart stores. Killeen, Texas-based First National Bank Texas still leads the pack, with more than 40% of its revenues coming from deposit fees and service charges in the second quarter.

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Click here for a template containing banks ranked by service fees as a percentage of operating revenue as of June 30, 2019.