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Get your ducks in a row: HVCRE risk management

Abrigo

In a recent Sageworks webinar Robert Ashbaugh, senior risk management consultant at Sageworks, discusses High Volatility Commercial Real Estate (HVCRE) lending best practices. Ashbaugh goes on to demonstrate that the default rates for these loans did not peak until about 2009, and the ALLL did not increase until 2010.

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Stressing the importance of stress tests

Abrigo

The reports were positive: all 31 stressed banks “passed,” showing that they are stronger than they have been at any time since the tests began in 2009, the Fed reported. Community banks typically have less complex loan portfolios than larger institutions, so the actual capital calculation may not be as difficult.

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Are you a bull or a bear, and how will it impact your planning for 2020 and beyond?

Gonzobanker

Community-based institutions have unique circumstances (and personal viewpoints) that impact how they see the world in the future and what planning will look like for them. Risk Management. Regulators are now ramping that back up, and model risk management focused on portfolio risk is going to top the list.

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4 challenges banks and credit unions are facing today

Abrigo

Given the many differences between a community institution and a bank with $100 billion in assets, the challenges facing back executives and their financial institutions may differ dramatically at various times. Compliance staff may require certain operational processes that delay credit approval and impede competitiveness.

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Guest Post: Financial Markets & Economic Update 4Q23 by Dorothy Jaworski

Jeff For Banks

Unsurprisingly, the largest declines occurred starting monthly in March, 2006 and on a y-o-y basis in September, 2006 and continued to November, 2009. The largest monthly decline took place in May, 2009 at -27.2% Dorothy has been with Penn Community Bank and its predecessor since November, 2004.

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The Niche Bank

Jeff For Banks

Me to a community banker: Why don't you offer more options than real estate secured lending to help fund early stage businesses? Banker: Because that's not community banking. I've been in this business over 20 years and still don't know the definition of community banking. Net charge-offs peaked at 2.19% of total loans in 2009.

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Guest Post: Financial Markets and Economic Commentary by Dorothy Jaworski

Jeff For Banks

and is at risk of falling. in eight of the forty-one quarters since 2009. Both spread inversions precede recession by 13 months (as in 2000 for the 2001 recession) to 26 months (as in 2006 for the 2008-2009 recession). Since June, 2009, GDP has risen a cumulative +25%, compared to +42.6% Core PCE has only exceeded 2.0%