South State Correspondent

MARCH 12, 2024

In a previous article ( HERE ), we discussed several factors that drive loan and bank profitability. We covered in detail how and why community banks can increase loan size to improve return on assets (ROA) /return on equity (ROE). The first factor is that commercial loan underwriting has a high upfront cost.

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Community Bank Community Strategy Study 195

Commercial Lending USA

AUGUST 29, 2022

Learn how to get a commercial truck loan and what it can do for your business. We'll also go over the process of getting approved and discuss the typical terms involved.

How To 52

How To Lending 52

Abrigo

FEBRUARY 14, 2024

Find commercial real estate risks in the loan portfolio Sound risk management practices in commercial real estate lending help lenders manage CRE credit losses and protect the portfolio's profitability. Reducing exposure levels may face resistance from managers and loan officers concerned about short-term earnings.

Risk Management 195

Risk Management Management Lending Capital 195

Abrigo

MARCH 13, 2024

How to respond to CRE loan distress Use these tips for banks and credit unions to identify and handle commercial real estate loans that are showing signs of being problem CRE credits. Takeaway 3 To triage a CRE loan in workout, first re-engage the deal team and conduct a comprehensive review of the loan documents.

Strategy 221

Strategy Course Meeting Taxes 221

Commercial Lending USA

MAY 14, 2022

Business-Loan | Blogs | Commercial Loan.

Lending 40

Lending 40

Abrigo

DECEMBER 18, 2023

WATCH Takeaway 1 Banks and credit unions are critical sources of capital for businesses in their communities, so how institutions assess CRE credits matters. Takeaway 3 Loan-level stress testing can help assess repricing risk, while capital stress testing helps clarify the impact of CRE loan losses on capital.

Risk Management 221

Risk Management Management Lending Capital 221

Commercial Lending USA

MAY 14, 2022

Long-Term-Business-Loan | Blogs | Commercial Loan.

Lending 40

Lending 40

Abrigo

DECEMBER 29, 2023

Abrigo's most popular whitepapers and checklists on lending and credit risk Abrigo experts' insights on CFPB 1071, loan policies, and risk ratings were popular with banking professionals. have been working hard to make sure the loans they have and the loans they approve are in line with risk appetites.

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Resources Lending Risk Management Policies 221

South State Correspondent

APRIL 9, 2024

We estimate that the average contractual loan commitment for term credit at community banks has decreased from just under five years in 2022 to just under three years currently. Borrowers that locked short-term financing in 2022 and 2023 will be faced with higher payments for loans repricing today (term rates have adjusted upwards).

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How To Community Community Bank Marketing 195

South State Correspondent

JANUARY 30, 2024

A typical current strategy for community banks when originating commercial real estate loans is to offer floating-rate loans or shorter-term adjustable structures. Borrowers are waiting for the Fed to lower short-term interest rates, hopefully translating into a refinancing opportunity for the borrower at a lower loan rate.

Community Bank 195

Community Bank Case Study Community Strategy 195

Abrigo

APRIL 12, 2021

What an LOS Is, and How It Benefits CFIs A loan origination system automates and manages the lending process to address common challenges. You might also like this report on commercial loan automation systems DOWNLOAD. Here's what a loan origination system is. A loan origination system automates, manages.

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South State Correspondent

OCTOBER 9, 2023

In two articles in the past few weeks ( here and here ), we discussed how the “higher-for-longer” interest rate environment will affect the community bank sector – continued increase in the cost of funds (COF), steady yields on loans, and a decrease in net interest margin (NIM) will put severe pressure on ROE for new loan originations.

Tools 195

Tools Community Bank Community Strategy 195

Abrigo

AUGUST 30, 2022

Expanding the commercial loan portfolio in today's market With the right strategies, banks and credit unions can expand their commercial loan portfolios successfully. You might also like this webinar on commercial lending strategy. Market conditions. Current rate and market conditions. Knowing the why.

Strategy 195

Strategy Lending Risk Management Analysis 195

South State Correspondent

SEPTEMBER 18, 2023

Community banks are dealing with smaller relationships (both loans and deposits) that are not being charged appropriately to cover overhead costs. The relationship between loan size and ROA and ROE is shown in the graph below. Yet the average community bank’s commercial loan size is about $250k.

Management 195

Management How To Community Bank Community 195

Abrigo

JANUARY 17, 2023

Automating SMB and commercial lending elevates your customer's experience From making it easier to apply to speeding up loan closings, automation can helps make business lending customers and staff happier. You might also like this on-demand webinar, "Strategies to grow your commercial loan portfolio." PPP volumes.

Lending 195

Lending System Customer Experience Case Study 195

Abrigo

FEBRUARY 6, 2024

Develop an MBL program while mitigating risk Credit unions looking for alternate paths to growth in today's rising rate environment may be primed to leverage member business lending. Takeaway 3 The specific policy areas outlined below should be carefully considered by credit unions engaged in member business lending.

Lending 221

Lending How To Risk Management Policies 221

South State Correspondent

DECEMBER 5, 2023

Commercial bankers are trusted advisors and have a unique opportunity to understand their client’s specific financial and personal situations, explain the basic concepts of capital markets, and offer prudent and objective advice to help customers reach their goals. It shows the average commercial loan rates for different terms.

Lending 195

Lending Marketing Capital Community Bank 195

South State Correspondent

FEBRUARY 27, 2024

Community bankers need to practice realistic loan pricing discipline. In this article, we would like to define loan pricing discipline and cover bid, why it matters, and demonstrate how most community banks currently are not using loan pricing discipline. Many banks target profitable commercial clients.

How To 195

How To Community Bank Community Management 195

Abrigo

MAY 19, 2023

Loan reviewer training and development What might a loan review curriculum look like and how can your financial institution develop good loan reviewers? WATCH Takeaway 1 Loan review departments often lack funds for training and education, but a shortage of experienced loan reviewers is a challenge for many banks.

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Training Lending Risk Management Guidelines 195

South State Correspondent

JANUARY 10, 2024

Community banks’ use of swaps (banks’ primary tool to hedge interest rate risk on loans) has increased substantially over the last ten years. This article will discuss how national, regional, and community banks may use loan hedging programs in 2024 to face earnings challenges. of banks offer loan swaps to their customers.

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Community Bank Community National Regional 195

Abrigo

DECEMBER 22, 2023

You might also like this resource, Abrigo's "2022 Loan Review Benchmark Survey Results." Construction loan and delinquency trends in 2023 Construction lending projections look positive according to S&P data from 2022 and 2023. Abrigo's blog covered these and other subjects in 35 credit and lending-specific posts this year.

Lending 221

Lending Risk Management Community Management 221

Abrigo

NOVEMBER 17, 2023

How to close more loans by speeding up lending and credit analysis Seeking a quicker loan origination workflow is worth it. WATCH Takeaway 1 A critical look at the existing steps for loan requests and credit underwriting helps uncover ways to offer faster loan decisions.

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Lending Software System Taxes 221

South State Correspondent

OCTOBER 18, 2023

Grid-based pricing is typically used to set the applicable margin of a loan based on specific performance measures, such as credit rating or cash flow coverage. Community banks can maximize profit and increase loan balances using innovative grid-based pricing for their commercial clients.

Community Bank 195

Community Bank Community Industry Operations 195

Abrigo

NOVEMBER 12, 2023

Support credit risk management Understanding loan covenants, when financial institutions should use them, and how to monitor them supports strong lending portfolios and credit risk management best practices. Takeaway 2 Capital, performance, and administrative covenants are common with business loans.

Risk Management 221

Risk Management Lending Policies Management 221

South State Correspondent

SEPTEMBER 16, 2022

In this article, we focus on the cost of originating a commercial real estate loan to give financial institutions both a flavor for their cost structure and benchmarks to measure themselves. Our Approach Towards Deriving the Cost of a Commercial Real Estate Loan. Cost of Loan Calculations.

Analytics 195

Analytics Lending Data Groups 195

South State Correspondent

JUNE 9, 2022

The majority of fees generated by larger banks is related to deposit and loans – business lines that community banks already maintain. However, the larger banks generate a small fraction of fee income from business lines that community banks do not maintain. Loan Hedging Fee Income For Community Banks.

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Community Bank Community Comparison Fintech 195

South State Correspondent

FEBRUARY 12, 2023

However, despite the challenges of the current interest rate environment, the yield curve creates a tremendous opportunity for top-performing banks to earn outsized fees and higher interest margins in the commercial loan market by using a loan hedge. Therefore, banks maximize yield and profit by keeping loan duration short.

Community Bank 195

Community Bank Community Case Study Strategy 195

South State Correspondent

JUNE 13, 2023

On our loan hedging desk, we work with hundreds of banks ranging in size from just over $100mm in assets to some national banks with over $1T in assets. Combined with our relationship profitability model, Loan Command, we see the pricing of thousands of commercial loans per month as small as $30k and as large as multi-billion dollars.

Marketing 195

Marketing Examples Capital Management 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. . Takeaway 1 Financial institutions are using small business loans as a source of growth and this trend will continue. .

Lending 195

Lending Community Bank Community Analysis 195

South State Correspondent

SEPTEMBER 27, 2023

Loan portfolio asset allocation should be active. In this article, we analyze a typical bank loan portfolio to uncover its weaknesses and then point out some improvements that can be put into place over the next year to limit risk. Many of these loans were made in 2020 when rates plummeted during the pandemic.

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Lending US Marketing Capital 195

South State Correspondent

APRIL 3, 2023

The second article compared and contrasted community banks’ pay-for-risk and relationship business models. To implement the relationship business model, bankers must focus on the right talent, education, product mix, and executive support. The term loan adds balances and duration, thereby increasing revenue.

Community Bank 195

Community Bank Community Lending Marketing 195

Abrigo

FEBRUARY 14, 2023

What to know about the CFPB 1071 rule affecting small business loans This post provides answers to some frequently asked questions about data requirements and other changes likely from the new rule. Visit CFPB 1071 resources for lenders for more on data collection requirements for small business lending.

Data 195

Data Lending Compliance Resources 195

Abrigo

APRIL 2, 2024

Stand-ou t bank business strateg ies for lending success These bank business strategies will help you market, target, add value to your lending services and build lasting relationships with your borrowers. Offering the lowest rates or fastest approvals is no longer a sufficient bank business strategy.

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Lending Strategy Marketing Community 170

South State Correspondent

NOVEMBER 2, 2022

This has caused more of a yield curve inversion and is a prime opportunity for community banks to use a loan hedging program to offer fixed-rate loans for 20 years. There are a few essential takeaways from the graph above for bankers looking to retain existing borrowers and generate new business. Pricing on ARC Hedged Loans.

Lending 195

Lending Community Bank Community Meeting 195

South State Correspondent

JULY 10, 2023

With an inverted yield curve, borrowers have a pricing advantage to lock in long-term fixed-rate loans, while lenders strongly desire to limit loan duration. One possible solution to this dichotomy is for banks to offer interest rate swaps to hedge individual loans. Of the largest 250 banks, 90% use interest rate hedges.

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Community Bank Community Tools Management 195