It can be difficult finding a bank you trust. Cornerstone Bank partners with its neighbors to provide the best experience possible from a community bank in Kansas City. We pride ourselves on going out of our way to equip customers with everything they need for a successful banking experience. It may not always be apparent when a bank isn’t doing well unless you know what to look for. While it’s true stability has greatly increased since the recession a little over a decade ago, bank failure can still happen. This could mean negative consequences for its customers. Here are a 3 red flags to avoid when searching out a new bank.
If you begin seeing the number of employees decrease due to layoffs this should catch your attention and make you question why it is happening. It is often because their net inflows of deposits are dropping. You can compare year over year deposits easily on the FDIC’s website for any bank. This information is fairly easy to find and is a good indicator of a bank’s financial health. It is likely a sign that past customers have pulled their funds and the bank is not acquiring new customers, a sign that perhaps you shouldn’t be one either.
If you see customer incentives decreasing, be advised the institution may be having profitability concerns. Discontinuation of rewards programs should catch your attention as well. If a bank once offered a no fee checking account but no longer does, be careful. Declining return percentage rates on yield bearing accounts could also be a warning sign of a less than healthy balance sheet. If a bank once had multiple branches but that number is shrinking, it is probably the result of one or more of the issues above.
One of the most worrisome things you can see is a bank beginning to delay financial reports about its performance. This is often a strategy to stall while a bank possibly seeks to borrow funds from another institution. This is a glaring warning to run the other way. You never want to work with a bank needing to delay their financial reporting.
These are 3 red flags to avoid when searching for a new bank.
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Looking for a bank you can trust? Choose Cornerstone Bank.
Our bankers are eager to help you with all of your financial needs. Since 2001, we have been a primary resource for our customers across the Kansas City metro and the country. We take pride in watching our customers thrive, no matter who you are.
We always put our customers first, and that means giving them the best banking has to offer. We don’t believe in simple banking; rather, we go above and beyond to help our customers make their money work for them.
For more information, visit our Overland Park office or give us a call at 913-239-8100 to let us know how we can help.