Closely Held Banks Outperform Widely Held Banks In Recent Years: FDIC

Closely held banks have generally outperformed widely held community banks in recent years, when they had an overlap with management, notes an FDIC survey. The Federal Deposit Insurance Corporation’s latest quarterly report titled: “Quarterly Banking Profile: Third Quarter 2015” notes the proportion of banks that were unprofitable during the third quarter dropped to 5%, the lowest since the first quarter of 2005. Outperformance by closely held banks The FDIC published its latest report after surveying over 1,300 banks in three FDIC regions. The survey points out that closely held banks have not underperformed widely held banks over the past six…