Abrigo

OCTOBER 1, 2014

Today’s youth and others across all age groups are placing a significant importance on consuming local food, developing local relationships and improving local communities. This is great news for community banks. A recent American Banker article discussed why the local food movement is good for community banking.

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South State Correspondent

JUNE 30, 2023

Many banks pride themselves on superior customer service, and approximately 90% of all community banks believe that they provide an above-average level of customer service (the math cannot work that way). Banks can then calculate SVA by subtracting their cost of capital from net operating profit after tax for each client.

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The Financial Brand

MAY 15, 2024

This article Redefining Affordable Capital: Q&A with SoLo Funds’ Rodney Williams appeared first on The Financial Brand. SoLo Funds co-founder Rodney Williams shares how the innovative peer-to-peer lending platform empowers underserved communities and challenges traditional banking models.

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South State Correspondent

OCTOBER 17, 2022

In a previous article ( HERE ), we discussed the concept of Funds Transfer Pricing (FTP), why systemically important banks and large regional banks incorporate FTP, and why community banks should also consider implementing FTP. In this article, we look at using FTP attribution to better understand lending profitability.

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How To Community Bank Community Capital 195

South State Correspondent

FEBRUARY 27, 2024

Community bankers need to practice realistic loan pricing discipline. However, we need to understand the meaning of pricing discipline and its effect on community bank performance. This is strong evidence that community banks are pricing to an arbitrary minimum credit spread in this set of loans. Cost-plus pricing.

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How To Community Bank Community Management 195

South State Correspondent

MARCH 5, 2024

In this article, we will consider how and why loan size is one of the most significant drivers of profitability for community banks and what community banks can do to improve performance. However, a community bank’s average commercial loan size is between $250k and $500k.

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South State Correspondent

MARCH 5, 2024

In this article, we will consider how and why loan size is one of the most significant drivers of profitability for community banks and what community banks can do to improve performance. However, a community bank’s average commercial loan size is between $250k and $500k.

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PYMNTS

AUGUST 24, 2019

The woman who was accused of hacking into Capital One’s cloud and swiping the information of more than 100 million people was denied bail, Bloomberg reported on Friday (Aug. Thompson, 33, was described by prosecutors as a loose cannon with violent tendencies, the article said. On Friday (Aug.

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South State Correspondent

FEBRUARY 20, 2023

Community bankers need to understand their competitive landscape. Who the competition is, what the lending competition is offering, their delivery channels, and service levels can help community banks differentiate their services and enhance their competitive advantage.

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South State Correspondent

APRIL 1, 2023

In this article, we recap the latest data on deposits and banking in order to give you an updated picture. The proposed regulations will impact about 30 banks, and the concepts will filter down to larger community banks between $50B and $100B. The move will increase the cost of compliance and the cost of capital.

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Abrigo

DECEMBER 22, 2023

download NOW Takeaway 1 The most popular blog posts on the Abrigo site reflect many of the priorities community banks and credit unions had in 2023. Takeaway 3 Articles specific to small community banks were among the most-read blogs, with best practices for construction lending at the top of the list.

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South State Correspondent

MAY 18, 2022

In two recent articles, we reviewed the banking industry’s deposit behavior with regard to cost of funding earning assets (COF) ( HERE ), and we compared how community banks’ COF behaves relative to national banks in a rising interest rate cycle ( HERE ). Deposit Behavior In This Tightening Cycle Versus Last Three.

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South State Correspondent

JANUARY 16, 2024

Barings Bank, Orange County (CA), Enron, Long-Term Capital Management, and other entities misused derivatives or didn’t understand the difference between hedging and speculating. We published various articles comparing community bank alternatives to LIBOR (such as SOFR, Ameribor, Fed Funds, and Prime). No ISDA documents.

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South State Correspondent

FEBRUARY 29, 2024

This article provides an update on pricing trends driven by our Loan Command aggregated community bank data and highlights some commercial loan insights that can improve bank performance. percentage points bringing forward looking LGD to 44% of the average community bank loan amount.

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Abrigo

JANUARY 19, 2015

The Recession and its subsequent rate of bank failures underscore the need for banks of all sizes to invest in developing a capital plan. The Recession taught many institutions that whatever processes had been in place for managing capital were not sufficient. The result was insufficient capital. Forward-looking review 4.

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The Financial Brand

OCTOBER 18, 2023

This article Marketing Emphasis Drives Loan & Deposit Growth for Community Banks: Study appeared first on The Financial Brand. This article Marketing Emphasis Drives Loan & Deposit Growth for Community Banks: Study appeared first on The Financial Brand.

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South State Correspondent

APRIL 3, 2023

In recent articles ( here and here ), we discussed why banks that take the interest rate movement risk demonstrate lower performance as measured by return on assets (ROA). The second article compared and contrasted community banks’ pay-for-risk and relationship business models.

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Abrigo

OCTOBER 9, 2014

This article is the second in a two-part series on top concerns and growth strategies of community banks. Expanding the C&I portfolio is a strategic decision that will impact other critical areas of the bank including capital requirements, stress tests, risk thresholds, hiring needs, etc. Source: 2014 Growth Strategy Survey.

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South State Correspondent

AUGUST 21, 2022

Last week we wrote about loan-level vs. balance sheet hedging for community banks and provided our loan proposal generator ( HERE ). We compared and contrasted the two strategies and sized the market for community banks. A community bank may transact one or only a few balance sheet hedges over many years.

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How To Community Bank Community FDIC 195

South State Correspondent

MARCH 19, 2023

In this article, we’ll consider the risk-return tradeoff for bank credit risk, and in a future article, we will compare different community bank business models. If your competition is underpricing credit risk, the borrower is more than willing to take that capital, and your only choice is to lose that loan.

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South State Correspondent

FEBRUARY 28, 2023

Many community banks today are willing to underwrite real estate secured loans on just two metrics: debt-service-coverage ratio (DSCR) and loan-to-appraised value (LTV). We will consider the minimal project DSCR in this article and cover the debt yield topic in future blogs.

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South State Correspondent

APRIL 30, 2022

In this article, we analyze the industry’s cost of funding earning assets (COF) and track how community banks’ COF behaves relative to larger banks. In future articles, we will explain our modeling for community banks’ COF based on inflation, Fed Funds rates, consumer consumption and the Fed’s balance sheet runoff.

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Jeff For Banks

MAY 9, 2024

I wrote most of this article early on a Saturday morning during the business session at one of the conferences. Back in 2015, almost nine years ago, I wrote an article about banks building their own small business loan platforms. Getting much needed capital into the hands of small businesses that can lead their economies forward.

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Abrigo

NOVEMBER 15, 2014

The site analyzed the social media community built by the top banks and credit unions alongside the institution’s asset size. When comparing social impact of banks versus credit unions, the results showed that CUs tend to have an easier time building a community. million in assets for every one follower on Twitter.

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South State Correspondent

MARCH 6, 2023

In an article last week ( HERE ), we discussed why real estate loans underwritten at common debt service coverage ratio (DSCR) and loan-to-value (LTV) levels may quickly become substandard credits if capitalization (cap) rates normalize, as expected because interest rates are rising. debt yield ratio ($135k divided by $1.5mm).

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South State Correspondent

APRIL 10, 2023

This article explores the risk and what to do about it. CRE Risk Background While ten years ago, community and regional banks use to make up some 55% of the CRE market, in 2023, these banks now compose approximately 72% (below). The risk here is that community banks continue to take on an above-average amount of CRE credit exposure.

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South State Correspondent

JANUARY 22, 2023

In a previous article ( here ), we discussed why commercial loan prepayment protection would be a critical return on asset (ROA) driver for community banks in 2023. In this article, we will quantify the value of a prepayment provision and compare the value of a step-down to a symmetrical break-even provision.

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Community Bank Community Capital Maine 195

South State Correspondent

NOVEMBER 7, 2022

.” That same adjustment can be applied to banks’ fixed-rate loans for economic value analysis to better understand value creation and allocation, prioritize future business activity, and better deploy capital. In this article, we explore what signals marking your loans to market might send. Capital got scarce.

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Marketing Community Bank Community Security 195

South State Correspondent

FEBRUARY 27, 2022

In our article last week ( HERE ), we discussed how the yield curve is currently flat between the three and 20-year points. While community banks may want the ability to offer longer-term fixed-rate loans, the interest rate risk is too significant for most banks’ balance sheets. Current Risk in Term Lending. Why ARC Makes Sense.

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Lending Community Bank Community Meeting 195

South State Correspondent

AUGUST 15, 2023

This article provides an update on pricing trends driven by our Loan Command aggregated community bank data and highlights some working pricing ideas. A combination of credit concerns and funding pressure have most community banks focusing on their existing customers and moving away from new transaction-orientated clients.

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Independent Banker

APRIL 30, 2022

During the pandemic, many community banks needed to change how they operated. For this and other reasons, now is a good time to review and refresh articles, bylaws and committee charters to ensure resilience and bolster risk management. Photo by Alita/Stocksy. By Susan Springer. Exploring the “what ifs”.

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South State Correspondent

MAY 9, 2022

In our previous article ( HERE ), we reviewed the banking industry’s cost of funding earning assets (COF), and we compared how community banks’ COF behaves relative to national banks in a rising interest rate cycle. Community banks with larger percentages of DDA balances will fare better. Influences on Deposit Beta.

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South State Correspondent

MARCH 13, 2023

While we will cover the general lessons HERE , in this article, we wanted to focus on the root cause – how and why interest rate risk caused the second-largest bank failure in US history (Washington Mutual was the largest in 2008). Notably, most community banks’ duration risk is in the loan portfolio.

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Risk Management Management Community Bank Community 221

South State Correspondent

MARCH 30, 2023

While desiring to bank everyone in your community is noble, it can be a poor use of resources. Not to say you want to ignore parts of your community, but why not focus more of your resources on those industries that will make your bank more profitable?

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Abrigo

JUNE 5, 2023

Banking reports to inform risk management and strategy These reports on capital, growth, and liquidity help financial institutions spot warning signs. Takeaway 2 Reports that assess capital, growth, and liquidity provide banking professionals data to drive decisions. Regulators review them to assess safety and soundness.

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South State Correspondent

JANUARY 20, 2023

2022 will go down as one of the worst years for community bank loan mispricing when viewed on a spread basis. Even though many loans were booked at below-par value (more information HERE), increasing margins helped drive significant revenue resulting in one of the best years for an initial risk-adjusted return on capital.

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South State Correspondent

JANUARY 30, 2024

In this article, we partner with Gartner to look at 2024 key IT metrics and provide strategic insight into how much your bank should be spending on IT. Benchmarking can help banks better optimize capital as it gives bank management a sense of what the average is for the industry.

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