South State Correspondent

JULY 30, 2023

How should community banks target and compare their ROE to the industry and their peer group, and what defines a top-performing bank? Bank ROE Historical Performance Total assets for all FDIC-insured institutions was $23.7T The relationship between actual returns and cost of capital for banks is shown in the graph below.

Community Bank 195

Community Bank Community Capital Policies 195

American Banker

AUGUST 1, 2023

The Federal Reserve is leading the push for broader, more standardized risk-capital rules, yet some of its board members, other regulators and industry groups are uncomfortable with the proposal.

Capital 36

Capital Regulation Groups Industry 36

Bank Innovation

MAY 31, 2019

New York-based Grasshopper Bancorp, which opened for business to a select group of entrepreneurs and investors earlier this month, this week raised $116 million from investors, including T. Rowe Price Group, Patriot Financial Partners and Endeavour Capital Advisors.

New York 186

New York Groups Capital FDIC 186

PYMNTS

JUNE 10, 2019

A more distant possibility could be an Uber bank account, which would help facilitate payments and save the company some capital by relying on banks for contractors’ payments. If Uber did provide a bank account, it would likely link up with an existing FDIC-insured bank instead of acquiring its own charter.

Fintech 214

Fintech San Francisco FDIC New York 214

Jeff For Banks

DECEMBER 10, 2023

Although the 2022 Top 5 are holding their own and two of them remain in today's Top 5, the 2021 edition included one bank that failed (SVB Financial Group) and one that is voluntarily liquidating (Silvergate). Total return includes two components: capital appreciation and dividends. What a difference a year makes! The Bancorp, Inc.

Fresno 101

Fresno North Carolina Raleigh FDIC 101

PYMNTS

DECEMBER 2, 2020

Stripe invested in this round as well, as did returning investors Crosslink Capital, Collaborative Fund and Will Smith’s Dreamers VC. Step customers get a bank account that is insured by the FDIC, as well as a secured spending card backed by Visa and the P2P payments platform. million in a June Series A funding round led by Stripe.

Fintech 217

Fintech FDIC Resources Management 217

PYMNTS

APRIL 6, 2020

CEO Charles Scharf said the bank is doing everything it could to create capital, but it is “limited” in all it can do to extend more credit, and thus is requesting that the cap be lifted for now. But under the restrictions, the bank will only be doing 3 percent of the total aid for the country’s SMB owners.

DC 132

DC FDIC Lending Capital 132

Gonzobanker

FEBRUARY 1, 2024

The FDIC Approved This Ad How many times did we hear a speaker admonish the audience to “be sure and sign up for the FDIC notification list.” Since banks with less than $10 billion in assets continue to struggle in deposit gathering, scale and overall earnings, we wonder how many will not be here in five years? Five Hundred? (Oh

Conference 88

Conference FDIC Arizona Industry 88

CFPB Monitor

AUGUST 20, 2020

FFIEC : On June 5, 2020, the members of the FFIEC (FDIC, OCC, Federal Reserve Board (“FRB”), CFPB, NCUA and the State Liaison Committee) issued an unprecedented statement on the importance of financial inclusion. This blog post contains a summary of those efforts. A link to our prior blog post about these developments is available here.

Regulation 78

Regulation FDIC Community Lending 78

PYMNTS

SEPTEMBER 30, 2020

The groups argue that such efforts are secured under the current regulatory regime, and that allowing innovation at the expense of the financial system’s stability isn’t beneficial. FDIC), the states and the courts. This isn’t the OCC’s first attempt to create a special banking charter that would benefit tech firms.

Regulation 349

Regulation National System Industry 349

South State Correspondent

MARCH 13, 2023

On the liability side of SVB’s $173B in deposits at the end of 2022, approximately 97% were uninsured and above the $250k in FDIC protection threshold. The graph below shows loan repricing buckets for three asset-sized groups of banks: under $1B, $1B to $3B, and over $25B in assets.

Risk Management 221

Risk Management Management Community Bank Community 221

Independent Banker

JULY 31, 2022

The next month, Locality Bank received final approval for a state charter and FDIC-secured deposit insurance. In December, the founders completed a capital raise, netting a total of $38 million after increasing the maximum amount from $23 million in subscriptions for stock. Katie Kuehner-Heber t is a writer in California.

Florida 91

Florida Community Bank Community FDIC 91

PYMNTS

NOVEMBER 23, 2017

FDIC), the news report noted the new bank will begin with $100 million in capital. Carpenter currently serves as chairman of Pacific Mercantile Bancorp and as a consultant to the group through his Carpenter & Co. According to a Wednesday (Nov. Citing documents filed with the Federal Deposit Insurance Corp.

New York 100

New York National FDIC Lending 100

South State Correspondent

SEPTEMBER 12, 2022

The COF over the past five quarters is shown for three asset peer groups: banks under $1B (3.5k We examine all FDIC-insured commercial banks and S&L associations over the last three decades and plot COF versus short-term rates. The changes in the road are ahead and not behind the driver. The Data on Cost of Funds.

Community Bank 195

Community Bank Community Industry Online 195

Jeff For Banks

AUGUST 1, 2016

So perhaps an investor group would be interested in taking out current shareholders and recapitalizing the bank? The FDIC required the bank to raise $20 million in capital, a tidy sum back in the 1990’s when banks got started with less than half as much. Yet they are also requiring high levels of capital.

FDIC 60

FDIC New Hampshire Regulation Capital 60

PYMNTS

OCTOBER 17, 2017

An industrial bank is an FDIC-insured depository institution that is generally subject to the same banking laws and regulations as any other bank charter type, with the important exception of the Bank Holding Act of 1956. Square already has an SMB lending arm – Square Capital – which it operates through a deal with Utah-based Celtic Bank.

Industry 108

Industry Fintech FDIC Community Bank 108

South State Correspondent

APRIL 30, 2022

We examine the roughly four thousand FDIC-insured commercial banks and S&L associations over the last four decades. The graph below is from the CME Group’s FedWatch tool and shows the market’s expectation of the target Fed Funds rate for the July 2023 meeting. Historical Cost of Funds Analysis.

Community Bank 195

Community Bank Strategy Community FDIC 195

American Banker

APRIL 16, 2021

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Virginia 39

Virginia FDIC Groups Community Bank 39

American Banker

OCTOBER 31, 2023

A $35 million capital bump from a once-hostile investor group may have helped the Philadelphia bank avoid collapse. Still, it reported $30 million of quarterly operating losses and heavy securities risk in a recently filed call report.

Philadelphia 36

Philadelphia Capital Groups Security 36

Jeff For Banks

JANUARY 12, 2019

The average 5-year total return for this group was 320%. The average 5-year total return for the group below was -31%. The average board size for this group was 12, and the average age was 66. In terms of bankers, active or retired, this group looks no different than the Top 5. Frequently asked. Seldom answered.

Community Bank 60

Community Bank Community FDIC Dallas 60

Jeff For Banks

JANUARY 12, 2019

The average 5-year total return for this group was 320%. The average 5-year total return for the group below was -31%. The average board size for this group was 12, and the average age was 66. In terms of bankers, active or retired, this group looks no different than the Top 5. Frequently asked. Seldom answered.

Community Bank 60

Community Bank Community FDIC Dallas 60

PYMNTS

MAY 22, 2018

“The bill also gives regulators more discretion in deciding when to require stress tests of capital adequacy for banks with between $100 billion and $250 billion in assets in the event of another crisis,” according to a summary of the bill in MarketWatch. PIRG, a group of state-based public interest research groups.

Regulation 100

Regulation Regional Community Innovation 100

PYMNTS

OCTOBER 1, 2019

Five years after the worst of the carnage in the data out of the Federal Deposit Insurance Corporation (FDIC) showed that lending was beginning to normalize — lending to big businesses had recovered, consumer lending was showing signs of thawing as the mortgage markets began showing signs of coming back from the dead.

Data 135

Data Lending Capital Regulation 135

PYMNTS

APRIL 27, 2016

On Tuesday (April 26), various media outlets reported that the investment bank is expanding its customer base with the launch of its own FDIC-insured, Internet-based savings bank called GS Bank. The platform was reportedly inherited by Goldman Sachs after its recent acquisition of a $16 billion book of deposits from GE Capital.

Retail 100

Retail Online FDIC Software 100

PYMNTS

FEBRUARY 19, 2019

As concerns are raised about how industry consolidation might impact competition, Federal Reserve Chairman Jerome Powell is warning that it could hinder small businesses’ access to capital and financial services. months in the first half of 2018, from 5.6 months in the first half of 2017.

Marketing 108

Marketing Community Community Bank Industry 108

American Banker

SEPTEMBER 12, 2016

The Group of Central Bank Governors and Heads of Supervision – the supervising body for the Basel Committee on banking Supervision -- Sunday endorsed the broad direction of final Basel III risk-weighted capital rules, including assurances that the final rules would require significant additional capital.

Capital 28

Capital Groups FDIC Regional 28

Jeff For Banks

JUNE 2, 2023

Finally, resolution of failing financial institutions requires that the deposit insurance fund be strongly capitalized with real reserves, not just federal guarantee.” According to the FDIC, the causes of the 2008-09 financial crisis lay partly in the housing boom and bust of the mid-2000s; partly in the degree to which the U.S.

FDIC 78

FDIC Community Bank Regulation Lending 78

Jeff For Banks

APRIL 25, 2015

I don't think de novo banks are key players to business startup capital formation. Sure, if you cite studies that say these banks' loan books are predominantly small, as the FDIC measures them. But that is because de novo's are limited to making a loan to one borrower of 15% of their capital position. How do I know this?

FDIC 60

FDIC Capital Community Bank Lending 60

PYMNTS

JANUARY 9, 2018

In July 2017, the Federal Deposit Insurance Corporation (FDIC) held a meeting with a group of community bankers which told officials about the competitive pressures they’re facing from FinTechs. Chamber of Commerce president and CEO of the Center for Capital Markets Competitiveness, in an interview with Reuters.

Community Bank 131

Community Bank Community Fintech Lending 131

Jeff For Banks

AUGUST 2, 2014

Although our Tier 1 leverage ratio is greater than 10%, you criticized us for our stress scenarios contained in our capital plan. Aside from the clear lack of analytic rigor you exercised to come to this conclusion, it is important to remind you that estimating future negative events that impact our capital is guesswork. We get that.

Regulation 92

Regulation DC FDIC Analytics 92

CFPB Monitor

NOVEMBER 29, 2021

President’s Working Group on Financial Markets, which delineated perceived risks associated with the increased use of stablecoins and highlighted three concerns: risks to rules governing anti-money laundering (“AML”) compliance, risks to market integrity, and general prudential risks. Federal banking regulators have been busy in this space.

Compliance 78

Compliance cryptocurrency Regulation FDIC 78

Jeff For Banks

MAY 7, 2016

Recent news of Prosper scaling back and OnDeck Capital's ongoing losses has taken a little shine off of the FinTech apple. Banks have capital. Banks are FDIC insured. Doesn't this happen with every meteoric rise? Here is my answer to him. "I I think technology firms are going to change banking forever. FinTechs are not.

Community Bank 60

Community Bank Community Fintech FDIC 60

Jeff For Banks

OCTOBER 4, 2014

Now the amount of money in US registered investment companies exceeds that in FDIC insured banks. But wait, ING Direct grew to $92 billion in assets until ING Group divested it to Capital One. Banks remain centers of communities and the number one source for capital for small business. Was Vanguard a disruptor?

Technology 104

Technology Cyber Security FDIC Strategy 104

Jeff For Banks

MARCH 5, 2021

According to my firm's profitability peer group, a branch with $74 million in average deposits made a mere pre-tax profit of three basis points. The average operating cost to originate and maintain an unsecured personal loan is $287 (again, according to my firm's profitability outsourcing service peer group). That's not the yield.

Regulation 78

Regulation Indiana Charlotte Community Bank 78

Jeff For Banks

DECEMBER 16, 2022

Total return includes two components: capital appreciation and dividends. Silvergate Capital Corporation (NYSE: SI) #2. SVB Financial Group (Nasdaq: SIVB) Here is this year's list: #1. I call this "pulling into the pits" in my book: Squared Away-How Can Bankers Succeed as Economic First Responders. MetroCity Bankshares, Inc.

Puerto Rico 78

Puerto Rico Virgin Islands Community Community Bank 78

Jeff For Banks

AUGUST 2, 2021

Andy recently tweeted a string of tweets describing his investor group's original investment, their evolution from troubled to healthy institution, and what it took for him and his team to be successful. 1/ @Schornack At the end of July 2013, we invested $1.8MM to buy 49% of Flagship Financial Group, Inc. million in assets and $233.7

Community Bank 78

Community Bank Community Minnesota Metro 78

Jeff For Banks

DECEMBER 26, 2012

capital appreciation and dividends. This has led to $863 million of covered loans (loss share arrangements with FDIC), and a yield on such loans of 8.69%, according to its latest investor presentation. Texas Capital Bancshares, Inc. Not so last year, and not so again this year. I''m sure that strategy works out.

Texas 78

Texas National FDIC Capital 78