South State Correspondent

MAY 15, 2024

The thinking is that diversification-induced lending leads to banking resiliency. We believe that while lending diversification leads banks to lend more in normal times (especially for banks over $50B in assets) and does benefit the general economy, community banks should be careful in how and where they choose to diversify.

Community Bank 195

Community Bank Community Lending Study 195

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.

Lending 195

Lending Community Bank Community National 195

Abrigo

AUGUST 6, 2021

How can community financial institutions thrive in 2021? Community banks provide unique and important banking services for their customers, but they also face significant obstacles. Would you like other articles like this in your inbox? Takeaway 2 Community banks are at a crossroads: innovate or be left behind (or acquired).

Community Bank 195

Community Bank Community Kansas City Lending 195

Abrigo

AUGUST 25, 2021

Takeaway 2 A consumer loan origination system can help FIs offer a fully digital retail lending experience. How can FIs overcome retail lending challenges? In today's competitive – and increasingly digital – consumer lending environment, financial institutions will need to find ways to adapt to changing customer expectations.

Lending 195

Lending System Community Retail 195

Abrigo

FEBRUARY 23, 2022

Loan Decisioning Allows Small Business Lending to Grow Community financial institutions can leverage automated loan underwriting to increase small business lending and achieve consistency. . Would you like other articles like this in your inbox? Small business lending is a focus. Market Trend.

Lending 195

Lending Community Bank Community Analysis 195

South State Correspondent

SEPTEMBER 20, 2023

The treasury or cash management customer is usually a bank’s most profitable customer on a risk-adjusted basis ( HERE ). In this article, we discuss cash management profitability and rank the most profitable industries for banks to go after. Cash flow stability is also a factor in cash management profitability.

Management 195

Management Survey Industry Community Bank 195

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.

Risk Management 221

Risk Management Management Community Bank Community 221

Abrigo

DECEMBER 31, 2019

Key Takeaways The most popular blog posts on the Abrigo site reflect many of the priorities community banks and credit unions had in 2019. The top lending and credit blog posts focused on improving loan pricing, creating a better experience for borrowers, and developing risk ratings. Popular articles about credit, lending.

Lending 150

Lending Community Bank Software System 150

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. Current Risk in Term Lending. 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. Why ARC Makes Sense.

Lending 195

Lending Community Bank Community Meeting 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. Second, larger companies have more diverse management talent to help them navigate recessions.

Community Bank 195

Community Bank Community National Lending 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. Second, larger companies have more diverse management talent to help them navigate recessions.

Community Bank 195

Community Bank Community National Lending 195

South State Correspondent

JULY 10, 2023

This article will review domestic banks’ adoption of interest rate swaps. Next week’s article will consider the challenges and possible solutions for community banks to adopt loan hedging programs. Currently, 23% of banks use interest rate hedges to manage some risk, up from 2% in 1985.

Community Bank 195

Community Bank Community Tools Management 195

Abrigo

JULY 20, 2021

From leveraging PPP technology to building relationships, reasons for boosting SBA lending are numerous. . Would you like others articles like this in your inbox? Takeaway 1 SBA lending can expand your product offerings to help win deals with prospects and existing business customers or members. Why SBA Lending?

Lending 195

Lending FDIC Capital Risk Management 195

Abrigo

JULY 16, 2021

Would you like others articles like this in your inbox? Takeaway 2 Regulations haven't been written, but there are steps community financial institutions can take now to prepare. Currently, the accompanying regulations have not been written, so what should community financial institutions take away from these priorities now?

Community 195

Community Regulation Training Policies 195

Abrigo

JANUARY 11, 2022

Asset/liability management basics In part 1 of this "Introduction to ALM" blog series, learn the goals of asset/liability management and how it can help financial institutions. Takeaway 1 ALM in banking means managing the cash flows of assets and liabilities to increase profitability, manage risk, and maintain safety and soundness. .

Management 195

Management Meeting Capital Strategy 195

Abrigo

MAY 24, 2024

The FedNow Service enables community financial institutions to stay competitive by meeting instant payment demands. Would you like other articles like this in your inbox? Transaction management: Procedures for accepting, rejecting, or accepting without posting transactions. Make FedNow work for your bank or credit union.

How To 243

How To Fraud Resources Georgia 243

South State Correspondent

FEBRUARY 8, 2023

The current yield curve presents various challenges for community bankers for revenue generation and risk management. In this article, we will outline the significance of the yield curve shape and what it may portend for community banks. The second is the term premium theory. The third is the preferred habitat theory.

Community Bank 195

Community Bank Community Risk Management Strategy 195

Abrigo

MAY 15, 2020

As expected, bad actors are surfacing, and financial crimes divisions of community financial institutions are struggling with the realization that loans rushed through may be fraudulent. This is welcomed news for community financial institutions. Manage PPP loans through forgiveness. Lending & Credit Risk. learn more.

Lending 195

Lending Rhode Island Fraud Los Angeles 195

South State Correspondent

JUNE 21, 2022

This regime is now changing, and community banks need to position their lending and deposit portfolios for a period of monetary tightening. This secular change will allow better-managed banks to outperform their peers. What worked effortlessly for the last 14 years may not work for the next business cycle. Conclusion.

Community Bank 359

Community Bank Policies Community Marketing 359

South State Correspondent

JANUARY 25, 2024

This strategy is used for various reasons discussed further in this article. As we have discussed before ( HERE ), one common lending mistake is for lenders to hold a rate constant during underwriting. Community banks also offer forwards to poach customers from other banks. If rates fall, the borrower often gets the lower rate.

How To 195

How To Community Bank Community National 195

Abrigo

MAY 8, 2024

WATCH Takeaway 1 Understanding generative AI and how peers are using AI and genAI helps financial institution leaders and management vet the technology and related risks. Knowing how AI and genAI are being used by peers and fraudsters will help financial institution leaders and management vet potential solutions and watch for risks.

Examples 221

Examples Fraud Resources Risk Management 221

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.

How To 195

How To Community Bank Community Capital 195

Abrigo

DECEMBER 22, 2023

Takeaway 2 Management reports, probability of default, and model validation topics were found in the top blogs for risk professionals. Takeaway 3 Updates on interest rate forecasting and best practices for managing CRE risk were among the most-read blogs. The FASB’s description of proposed changes can be found here.

Risk Management 221

Risk Management Regulation Management Lending 221

Independent Banker

JULY 31, 2022

The Social Bankers, a collective of community bank marketers, offers inspiration, information and professional development advice to community bankers focused on marketing and social media. Membership is open to non-competing community bankers throughout the United States. Illustration by miakievy/iStock. By Julie Kendrick.

social media 224

social media Trends Community Groups 224

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. During the prior break, I struck up a conversation with a person from Lendio , a small business lending platform, that was there to promote their white-label platform to bankers. They want to grow small business deposits.

Conference 110

Conference Community Bank Community Tools 110

Independent Banker

AUGUST 31, 2022

In today’s intense regulatory landscape, compliance extends to every aspect of banking, so much so that no one person or team can be solely charged with managing a bank’s compliance requirements. Managing compliance is a role that community bankers take more seriously than any other segment of the financial services industry.

Compliance 177

Compliance Community Leadership Industry 177

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.

Community Bank 195

Community Bank Community Lending Marketing 195

Abrigo

OCTOBER 23, 2014

But how can this growth be managed appropriately? CEIS Review , a New York-based bank consulting firm, highlights the shift in a recent article. Community banks certainly want to remain conservative with risks and follow regulations. According to Sageworks’ Tim McPeak, there are three keys to effective loan review.

Risk Management 186

Risk Management Management Lending Resources 186

South State Correspondent

MAY 3, 2023

Last week, we published an article [ here ] discussing how fair value accounting for assets and liabilities may have prevented the failure of Silicon Valley Bank, even if sound risk mitigation practices were not resolutely embraced by management.

Lending 195

Lending Capital Management Tools 195

South State Correspondent

MAY 2, 2023

Last week, we published an article [ here ] discussing how fair value accounting for assets and liabilities may have prevented the failure of Silicon Valley Bank, even if sound risk mitigation practices were not resolutely embraced by management.

Lending 195

Lending Capital Management Tools 195

South State Correspondent

MAY 2, 2023

Last week, we published an article [ here ] discussing how fair value accounting for assets and liabilities may have prevented the failure of Silicon Valley Bank, even if sound risk mitigation practices were not resolutely embraced by management.

Lending 195

Lending Capital Management Tools 195

South State Correspondent

AUGUST 15, 2023

The fear of recession has decreased in 3Q, and the new primary concern shifts back to interest rate risk and deposit cost management. This article provides an update on pricing trends driven by our Loan Command aggregated community bank data and highlights some working pricing ideas. Total industry loans grew 5.1%

Trends 195

Trends Community Bank Community Lending 195

South State Correspondent

JULY 26, 2023

The bigger risk to community banks’ business model is not a moderate recession induced by aggressive interest rate increases by the Federal Reserve. This article will discuss community banks’ strategies and tactics to mitigate a prolonged and profoundly inverted yield curve.

Community Bank 195

Community Bank Community Strategy Atlanta 195

South State Correspondent

SEPTEMBER 4, 2023

We analyzed the loan performance (return on equity, loan yield, fee income, and loan size) of hedged borrowings in a large group of community banks and compared this to the community bank industry averages. In this article, we provide a quantitative analysis to support this conclusion.

Analysis 195

Analysis Community Bank Community Training 195

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.

How To 195

How To Community Bank Community FDIC 195

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.

Community Bank 195

Community Bank Community Compliance CA 195

Abrigo

AUGUST 28, 2022

Leveraging the efficiencies gained from lending software Banks and credit unions that leverage an integrated lending and credit platform reap the benefits of a consistent, efficient and defensible lending program. Would you like other articles like this in your inbox? Lending and Credit Software. Ag Lending.

Software 195

Software Lending Philadelphia Capital 195