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). Equally important is the bank’s securities duration, as shown in the graph below.

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Risk Management Management Community Bank Community 221

South State Correspondent

APRIL 30, 2024

An inverted yield curve, continued bank failures, and the desire to manage risk and offer clients higher service are all factors that are driving more community banks to adopt a loan hedge program. There are several benefits to community banks in using a loan-level hedge program, but how does a community bank choose a safe solution?

Community Bank 195

Community Bank FDIC Community National 195

South State Correspondent

APRIL 30, 2024

An inverted yield curve, continued bank failures, and the desire to manage risk and offer clients higher service are all factors that are driving more community banks to adopt a loan hedge program. There are several benefits to community banks in using a loan-level hedge program, but how does a community bank choose a safe solution?

Community Bank 195

Community Bank FDIC Community National 195

Abrigo

JULY 25, 2017

In a recent Sageworks webinar Robert Ashbaugh, senior risk management consultant at Sageworks, discusses High Volatility Commercial Real Estate (HVCRE) lending best practices. These caps were 100% of capital for construction loans, and 300% for all investor CRE. That 13% represented 80% of the losses to the FDIC insurance fund.

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Risk Management Management Capital Lending 150

South State Correspondent

MAY 7, 2024

With the assistance of the FDIC, Fulton Financial acquired certain assets, debt and deposits of Republic Bank. The Root Causes It appears to us that Republic Bank did not properly manage its duration and interest rate risk. This first bank failure in 2024 is reported to cost the Deposit Insurance Fund $667mm.

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Risk Management Security Management Groups 195

South State Correspondent

AUGUST 21, 2022

Alternatively, various programs and platforms do not use ISDA documents and rely on more straightforward documentation. Second, community banks should use FDIC-insured institutions as hedge providers, and the hedges must be structured as qualified financial contracts (QFC).

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How To Community Bank Community FDIC 195

Gonzobanker

MARCH 22, 2023

Irvine Sprague, Former FDIC Director So Gonzo Bankers … how many of us have been hesitant lately to check our iPhone each morning to see what trouble may have hit the fan in the financial world during a few restless hours of slumber? The slow, evolving maturity of a bank’s enterprise risk program needs to speed up fast.

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social media Capital Risk Management Strategy 78