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The future

  • Chase bankers and managers wait for customers and make sure things are running smoothly during the opening day of a Chase branch inside the Lucky Supermarket at 939 Lakeville Highway in Petaluma, California on Tuesday, April 5, 2011. (BETH SCHLANKER/ The Press Democrat)

Ptucha expects local institutions will begin winning back market share from the Big Four banks.

"There is a blowback coming," he said. "People are disgusted by the obscene bonuses being paid to executives at the big banks, who were partially responsible for the financial meltdown."

Redwood Credit Union has seen a significant amounts of its growth from people leaving the Big Four banks, said Brett Martinez, its president and chief executive.

"There is a big movement out there to move your money out of the big banks," he said. "People are fed up with them. They are tired of the fees."

But for community banks, profits will be thinner for the next five or 10 years, Ptucha said. Recent government regulations will require higher compliance costs, while cutting into revenues by limiting fees such as overdraft charges and pulling back a bank's ability to leverage assets.

The local economy is not expected to take off anytime soon either, and that lowers the number of businesses who will want to borrow money to expand. Banks and credit unions make most of their revenues from lending.

"It's going to be a fiercely competitive market," Schrader said.


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