Perspectives on Profitability: Getting the Most Out of Profitability Analysis in Community Institutions

On the one hand, the prevalence of stagnant net interest margins across the industry suggests that community institutions would be desperate to get an accurate picture of exactly where the potential profits lie within their product lines and customer bases, and to work to capitalize on those opportunities. However, what passes for profitability analysis in many institutions today probably isn’t going to reveal those answers.