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Commercial Real Estate or Business Lending: Which Is Better?

Jeff For Banks

Me: Commercial Real Estate loans are the most profitable product in a community bank's arsenal and have been through various interest rate environments. Bank Senior Lender: Not when you consider the whole relationship. The pre-tax ROA might not look great.

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The Velocity of Risk – What Bankers Need To Know

South State Correspondent

One morning, President Trump tweeted his desire for an additional tax on all foreign-owned companies operating in the US. Instantly, the cash flow for those businesses that many community banks lent to is impacted. That is a significant change in risk for a material part of a large community bank’s balance sheet.

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What Goes Up …

Independent Banker

Coping just fine, community banks in energy-producing regions manage the oil-price plunge. Yet community bankers serving the oil industry say they’ve been expecting a drop in the notoriously cyclical price of crude. Pat Hickman, chairman and CEO of Happy State Bank, a $2.6 By Howard Schneider. percent expansion last year.

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Predicting the Next Banking Crisis Is a Fool’s Game. Not Learning From the Last One: Equally Foolish

Jeff For Banks

Between 1980 and 1995, more than 2,900 banks and thrifts with collective assets of more than $2.2 More recently and by comparison, the mortgage meltdown and subsequent global financial crisis took down more than 500 banks between 2007 and 2014, with total assets of nearly $959 billion. trillion failed. What caused it?

FDIC 78
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Dynamic Duo

Independent Banker

From opposite political directions, Senators Shelby and Brown stand on point to greatly influence community banking’s agenda in the next Congress. The mix of contrasts and similarities of Shelby’s and Brown’s perspectives and policymaking portend an active session for community banking’s agenda in the new 114th Congress.

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What's With Regulator Agita Over Bank Commercial Real Estate Lending?

Jeff For Banks

and New York Community Bancorp called off their planned merger. The upshot of the analysis, in my opinion, is that the risk can be further limited to CLD lending, more so than straight, plain vanilla CRE lending that is so common in community financial institutions. We perform this service for dozens of community banks.

Lending 60
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Reverse Trend

Independent Banker

Community banks, which will continue to face a growing number of senior customers with everyday cash needs and built-up home equity, should explore this niche lending opportunity, two community bankers providing these specialty loans suggest. The bank has a goal of closing 100 reverse mortgages each month this year.

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