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Loan Hedging for Community Banks in 2024

South State Correspondent

Community banks’ use of swaps (banks’ primary tool to hedge interest rate risk on loans) has increased substantially over the last ten years. Meanwhile, community banks face net interest margin (NIM) and fee income pressure. Only 304 banks (or 6.7% of the total) used swaps directly.

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Community Bank CEO Outlook 2022: Your priorities for the new year

Independent Banker

What changes will 2022 bring? Independent Banker ’s annual Community Bank CEO Outlook survey reveals how community bank leaders plan to leverage today’s deposit-laden banking environment to grow this year. Janet Silveria, Community Bank of Santa Maria. By Katie Kuehner-Hebert. Click to enlarge.

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Interest Rate Risk and Your Fixed-to-Floating Rate Mix

South State Correspondent

For decades community banks have structured fixed-rate loans with adjustable features – the most popular structure is a ten-year fixed-rate loan with a five-year reprice. With short-term interest rates expected to rise through 2022, many community banks are reconsidering their ALCO strategies.

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Compliance changes to watch in 2023

Independent Banker

While the pace of bank regulatory changes has diminished from a few years ago, several issues will either become effective or likely develop in 2023. Community banks must continue to stay focused on regulatory discussions and remain nimble to respond to proposals and address requirements quickly and accurately. Evolving risks.

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5 New Year’s Resolutions For Any Sized Bank That You Must Get Right in 2023

South State Correspondent

A potential economic slowdown, slower rate rises, an inverted yield curve, and deposit stress likely make 2023 a trying year compared to 2022. Banks will need to balance these short-term challenges with longer-term strategic goals. Financial pressure will be greater, and bank margins will be higher. Conclusion.

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Guest Post: Financial Markets and Economic Update - First Quarter 2024

Jeff For Banks

Our lives changed forever from this whole experience of the government’s declaration of a national emergency, leading to forced shutdowns of businesses and schools, mandated mask wearing, forcing 6-foot distances between people, travel restrictions, fear mongering with case and death counts, and forced vaccines/boosters.

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

Jeff For Banks

Inflation is still elevated, even while it slowly declines from 2022’s peaks. The index began to decline in March, 2022 (no surprise that the Fed started tightening that month), and has been down for 18 months in a row; the LEI is down -11.1% since March, 2022 to 104.6. from its high in March, 2022. September was -3.6%