Independent Bankers Magazine
The following article appears in the current March/April edition of The
Texas Independent Banker magazine.
What Your Board of Directors Should Know: Creating a Strong (and Effective!) Community Bank Board of Directors
By Kelly Goulart
By Jim Smitherman
For the majority of traditional community banks, over 90% of
earnings are driven by net interest income. In a bank with assets of $500
million, a change of just 10 basis points in net interest spread represents
approximately $500 thousand in net revenues; a change of a single basis point
(.0001) will impact the bottom line by $50 thousand.