FDIC Marketing Regional Risk Management 
South State Correspondent
APRIL 30, 2024
Eliminate Interest Rate Risk: Eliminate margin compression when interest rates rise. Meet Competitive Pressures : National and larger regional banks are specifically targeting better borrowers for five, seven, ten-year fixed-rate loans. A hedge should have a neutral outcome regardless of how the market moves (within defined bands).
South State Correspondent
APRIL 30, 2024
Eliminate Interest Rate Risk: Eliminate margin compression when interest rates rise. Meet Competitive Pressures : National and larger regional banks are specifically targeting better borrowers for five, seven, ten-year fixed-rate loans. A hedge should have a neutral outcome regardless of how the market moves (within defined bands).
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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. The market expects the current inverted yield curve to remain through much of 2024 (based on long-term interest rates and the expected rate cuts in 2024). Only 304 banks (or 6.7%
South State Correspondent
AUGUST 21, 2022
We compared and contrasted the two strategies and sized the market for community banks. Eliminate Interest Rate Risk: Eliminate margin compression when interest rates rise. Meet Competitive Pressures: National and larger regional banks are specifically targeting better borrowers for seven, ten, or 20-year fixed-rate loans.
Abrigo
AUGUST 9, 2017
Two ways in which stress testing results can be used to an institution's advantage is to avert risk and improve the risk rating process. Appraised values for properties are then adjusted by the amount of average decline in the market. In addition to preventative benefits, stress testing may provide advantages in recovery.
Jeff For Banks
JULY 31, 2017
US Regional Banks' price-earnings multiple was 16.6x One way to compare is to look at the p/e ratio compared to the market. Meaning if it's p/e is 16.6x, like the US Regional Banks mentioned above, then the earnings growth rate should be 16.6%. Risk management and the legions of regulators work in tandem to limit growth.
South State Correspondent
MARCH 15, 2023
While we wrote about the root cause of the failure of Silicon Valley Bank (SVB) HERE , the lessons of the current banking crisis go beyond interest rate risk management. While interest rate risk caused the most significant impact on value, several other factors contributed to the terminality of each bank that was closed.
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