Overhead Costs Absorb A Growing Share Of Community Banks' Revenues
NoninterestExpenseasaPercentofNetOperatingRevenue*
Efficiency ratio (percent) 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Assets > $100MM 69 70 74 74 74 73 73 72 68 68 67 66 67 67 68 70 69 72 70 72
Assets < $100MM 74 72 76 72 70 70 71 70 66 65 64 63 63 60 63 60 60 59 57 57
  * Net operating revenue = net interest income + total noninterest income.
** Asset size measured in 2003 dollars. $100 million in 2003 = $63.6 million in 1983.