2023 Community Bank Lending Regional 
South State Correspondent
JANUARY 4, 2023
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. Yeah, that was a mistake.
South State Correspondent
JANUARY 22, 2023
In a previous article ( here ), we discussed why commercial loan prepayment protection would be a critical return on asset (ROA) driver for community banks in 2023. We outlined the four main reasons why prepayment provisions increase profitability for banks. The greater fool theory breaks down in a recession.
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South State Correspondent
JANUARY 20, 2023
2022 will go down as one of the worst years for community bank loan mispricing when viewed on a spread basis. Rapidly rising rates crushed performance as many banks held a fixed rate constant and/or booked a fixed rate loan at a misguided level. Banks had tight spreads on loans with 1.2 Multifamily is the other call-out.
South State Correspondent
JANUARY 25, 2024
Recently, larger lenders, including Bank of America, JPMorgan, Goldman Sachs, and Wells Fargo, have announced that they are seeing an elevated appetite for forward rate locks on loans for future anticipated commercial borrowings. The forward rate lock allows a win-win outcome for both borrowers and banks.
South State Correspondent
APRIL 10, 2023
CRE Risk Background While ten years ago, community and regional banks use to make up some 55% of the CRE market, in 2023, these banks now compose approximately 72% (below). The risk here is that community banks continue to take on an above-average amount of CRE credit exposure.
Gonzobanker
DECEMBER 14, 2023
Bank leaders must feel like Rocky Balboa after 15 rounds with Apollo Creed. Just think of what the industry dealt with in the last 12 months: The brunt of the unprecedented scope and pace of Fed rate hikes hit home, and banks have seen an.80 Merger of Equals Deal of the Year (Bank) – Burke & Herbert Financial Services Corp.
Independent Banker
JULY 31, 2022
Fallout from recent global events presents an obstacle to generating revenue for community banks. It’s certainly an interesting time to be a community bank, but there are still plenty of ways to make efficiencies with an eye on profitability. ? But one of the biggest problems in community banking today is a fear of risk.
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