Survival of Regional Banks

Increasing Net Interest Margins for PNC Bank

Prepared for

Rochelle Anderson
Instructor at Park University
Columbus, Ohio 43213

Prepared by

Taylor Cerimele
Columbus, OH 43215

October 6th, 2015
Table of Contents

Executive Summary…………………………………………………………………………... ii

Introduction…………………………………………………………………………………. . 1 Background………………………………………………………………................... 1 Statement of Problem……………………………………………………………......... 1 Purpose and Scope of Work………………………………………………………....... 1 Topics to Investigate………………………………………………………………….. 1 Methods and Procedures………………………………………………………………. 2 Qualifications, Facilities and Resources…….…………………………………...…..... 2

Change in NIM………………………………………………………………………………... 2

Federal Reserve Funds Rate…………………………………………………………………… 3

Net Interest Margin Breakdown……………………………………………………………….. 4

Conclusions and Recommendations…………………………………………………………… 5

Works Cited…………………………………………………………………………………… 6

List of Illustrations
Figure 1 Change in NIM from 2009 to 2012…………………………………………..
Figure 2 Federal Reserve Funds (Interest) Rate……………………………………….
Figure 3 Net Interest Margin Breakdown………………………………………………

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Survival of Regional Banks
Increasing Net Interest Margins for PNC Bank
Executive Summary

In order for regional banks to survive, like PNC Bank, net interest margins need to rise. In order for them to do so, interest rates also need to rise. PNC Bank and other regional banks, thrive on their investors in order to stay afloat. When interest rates become low and stay there for a long period of time, net interest margins fall at the same time, making it hard for smaller, regional banks to compete.
The research I have done for this project indicates that regional banks, like PNC Bank, do still have