Assessment Savings a Testament to Community Bank Resilience

For years we made the case that the deposit-insurance assessment base is unfair for community banks. And for years no one seemed to listen. To some of us community bankers, it may have even seemed like a pipe dream.

But the savings that community banks are seeing this month on their second-quarter assessment premiums aren’t a dream. They are the real thing, and these savings will continue for years to come.

Community bankers have been reporting savings of upwards of 50 percent on their premiums—that money can be reinvested in our communities to promote our economic recovery. The years of campaigning for deposit-insurance parity are paying off.

And let’s not forget, basing deposit-insurance assessments on total assets minus tangible capital instead of domestic deposits was a priority for ICBA and community banks. No one else moved a muscle on this issue.

It was our battle. It was an uphill slog, and we prevailed. It just goes to show that community banks can accomplish anything—that some pipe dreams can come true.