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WEAKER BANKS CHARGE HIGHER FEES

 WEAKER BANKS CHARGE HIGHER FEES
 CORAL GABLES, Fla., Jan. 21 /PRNewswire/ -- Bauer Financial


Reports, Inc., a research firm that specializes in evaluating the financial performance of banks, thrifts and credit unions, reports that a new study on bank fee income concludes that undercapitalized, weaker banks collect significantly higher fees for services than creditworthy, well capitalized institutions.
 The study compared fee income data for 8,177 commercial banks nationwide with assets of less than $100 million for June 1989 and June 1991, spanning a 24 month period.
 Fee income data was studied for two banking groups, well capitalized and undercapitalized:
 GROUP 1: 7,493 banks rated four-star or five-star, banks
 recommended by Bauer Financial Reports, Inc.
 GROUP 2: 624 banks rated two-stars and below that fail to meet
 regulatory capital requirements.
 In addition, fee income data was separated into two categories:
 -- Fee income on deposit accounts -- maintenance, minimum balance,
 for writing too many checks, for closing an account, etc., and
 -- Fee income for special services -- data processing requests,
 safe deposit rentals, safe deposit rentals, safekeeping fees,
 etc.
 Conclusions:
 Four-star and five-star rated bank fees averaged $2.38 per $1,000 of deposits in fee income on deposit accounts as of June 1991, up 16 cents per $1,000 over June 1989.
 Although two-star and below rated banks reduced their charges during the two year period, at June 30, 1991 they were earning $3.58 per $1,000 of deposits, over 1 1/2 times the stronger banks. Two years earlier, at June 30, 1989, weaker banks were earning $3.62 per $1,000, or 1.63 times the stronger bank fees.
 Four-star and five-star rated banks earned, on average, $1.97 per $1,000 of deposits in non-deposit account fees, up from $1.87 two years earlier while two-star and below rated banks earned $2.70 per $1,000 up from $2.36 in June 1989. Undercapitalized banks charged 1.37 times more than well capitalized banks.
 "Clearly as troubled banks find it more difficult to survive their previous performance and to earn money in traditional ways -- through loan income, they resort to increased fee income," said Paul A. Bauer, president of the research firm. "Finding that weak banks charge higher fees simply offers consumers one more reason to do their banking with creditworthy, profitable, well managed banks."
 Additional information may be obtained by calling Paul A. Bauer or Karen Dorway at 800-388-6686.
 -0- 1/21/92
 /CONTACT: Paul A. Bauer of Bauer Financial Reports, Inc., 305-441-2062/ CO: Bauer Financial Reports, Inc. ST: Florida IN: FIN SU:


SS-AW-AK -- FLFNS1 -- 1610 01/21/92 07:32 EST
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Publication:PR Newswire
Date:Jan 21, 1992
Words:435
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