Community Banking Newsletter - Sept. 2026

Date: September 8, 2026

Edition: September 2026

From: BCC - Your Trusted Partner in Community Banking Solutions

Website: www.bcc-usa.com

Welcome to the BCC Community Banking Newsletter, focused exclusively on developments affecting community banks.

1. Earnings, Credit, and Balance Sheets

The FDIC’s Quarterly Banking Profile for second-quarter 2026 shows 3,818 community banks earned $8.7 billion, up 8.2% from the first quarter. Pretax ROA rose to 1.53%. NIM widened 10 basis points to 3.81%. Loans grew 1.6% in the quarter and 5.1% year over year; assets reached $2.8 trillion. Domestic deposits rose 0.4% quarter over quarter and 4.6 % year over to $2.3 trillion. Past-due and nonaccrual loans eased 10 basis points to 1.34%, though consumer loans were the exception. One Community bank failed in the quarter; the community bank count fell by 35 (fdic.gov; icba.org).

Key Takeaway: Profitability improved but watch consumer credit and keep provisioning disciplined while loan demand is still growing.

2. Community Bank M&A: United Community Completes Peach State Deal Amid Ongoing Consolitation

United Community Banks, Inc. completed its merger with Peach State Bancshares, Inc. (parent of Peach State Bank & Trust) effective August 1, 2026. The transaction added Peach State’s approximately $784 million in assets and Gainesville/Hall County, Georgia franchise to United’s network, expanding its Southeast community-focused footprint (tipranks.com).

Broader activity continues, with community and regional banks pursuing in-market or

complementary deals, while some credit unions have announced whole-bank acquisitions of smaller community institutions (bankingdive.com). FDIC data and industry reporting reflect steady merger volume as institutions seek scale, geographic reach, and efficiency.

Key Takeaway: Successful integrations of culturally aligned, community-oriented institutions can strengthen local market share and service capabilities; boards should evaluate strategic fit, cultural alignment, and post-merger execution carefully in the current consolidation environment.

3. Rates and Insurance Pricing

The FOMC meets September 15–16 with the funds rate at 3½–3¾ percent. The September 2 Beige Book found modest growth in 10 of 12 Districts and solid or rising loan volumes.

Separately, the FDIC proposed lifting the small-bank assessment threshold from $10 billion to $30 billion and cutting small-bank base rates by 2 basis points. Calculators were updated August 25. The DIF reserve ratio was 1.48% at midyear (minneapolisfed.org; fdic.gov).

Key Takeaway: Plan loan and deposit pricing for either a hold or a modest hike and estimate assessment savings under the FDIC calculator.

This edition is prepared for community bank leadership. For tailored BOLI, compensation, or strategic advisory support, visit www.bcc-usa.com. This summary is for informational purposes and does not constitute advise.