Minnesota bank salaries rise less than projected

Northwestern Financial Review, Aug 15-Aug 31, 2002

Salaries in Minnesota banks increased by 4.32 percent in 2001 according to the Community Bank Compensation survey conducted by United Bankers' Bank in Bloomington, Minn.

The increase was slightly lower than the 4.7 percent average increase reported for 2000, and it is lower than the increases bankers said a year earlier they expected to pay. Banks responding to last year's survey had indicated they were expecting to pay increases averaging 4.8 percent in 2001.

Bankers anticipate salary increases of only 3.89 percent according to the 2002 survey.

Teresa Schmanski, human resources officer for United Bankers' Bank, said the results are consistent with the drop in percentage pay increases that have occurred across Minnesota since 2001.

The 2002 survey showed that Minnesota community banks have not yet adjusted their medical benefits policies for single employee coverage, even though prices have risen sharply throughout the health insurance industry. According to Schmanski, "Our survey shows that banks are continuing to pay the same high proportion of their employee's single medical insurance premiums that they have paid in the past, despite double-digit increases in these costs for each of the last three years."

In its eighth year, 95 banks participated in the 2002 survey. In addition to salary and incentive data for all levels of bank officers and employees, the survey includes benefits information.