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Abstract
Community bank CEOs are preparing for the upswing in interest rates, expanding sources of non-interest income, investing more technology dollars in Internet banking, and using free checking accounts to grow their business, according to a recent survey of community bank CEOs conducted jointly by the American Bankers Association's Community Bankers Council and the ABA Banking Journal. Among the survey's findings are: 1. Community banks have steadily expanded their menu of products that yield non-interest income. 2. The most common income-producing product was debit cards, offered by 73% of survey respondents, followed by credit life (59%), phone banking (55%), and online banking (53%). 3. A majority - 69% - of community banks now offer free checking accounts. 4. Most community banks (84%) still cash on us and government checks for non-customers. 5. Consumers have a significant amount of choice in overdraft protection services at community banks.