Abrigo

FEBRUARY 14, 2024

Find commercial real estate risks in the loan portfolio Sound risk management practices in commercial real estate lending help lenders manage CRE credit losses and protect the portfolio's profitability. LISTEN Takeaway 1 Effective CRE risk management involves adapting to changing market fundamentals to avoid excessive loan losses.

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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. However, many community banks cannot hedge all of their commercial loans. This cost to the bank is shown in the graph below.

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Independent Banker

DECEMBER 31, 2022

We recently spoke with community bank CEOs from across the country to gain insights on how they’re proactively positioning to manage risks and take advantage of growth opportunities in the coming year. Following some respite in 2022, community bankers are bracing for a tougher economic landscape ahead in 2023. Koger Propst.

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Community Bank Community Tampa North Carolina 91

South State Correspondent

SEPTEMBER 20, 2022

Last week, the American Banking Association (ABA) held its annual Bank Marketing Conference in Denver, receiving rave reviews. The theme was – developing your marketing superpowers. Amid the brewery networking, superhero costumes, and fun, some fantastic bank marketing lessons were had, and not just for bank marketers.

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South State Correspondent

JUNE 13, 2023

We see borrowers trying to out-predict the market by guessing what the Fed might do, analyzing economic trends, studying graphs, or talking to friends at cocktail parties. No one can time the market when purchasing a stock or locking in financing costs – the market is too efficient and unpredictable.

Marketing 195

Marketing Examples Capital Management 195

Jeff For Banks

DECEMBER 10, 2023

I chose five years because banks that focus on year over year returns tend to cut strategic investments come budget time, which hurts their market position, earnings power, and future relevance more than those that make those investments. Communities First Financial Corporation (Now FFB Bancorp) (OTCQX: FFBB) #2.

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Independent Banker

APRIL 30, 2022

Loan providers share an infectious enthusiasm and growing optimism for one vertical’s prospects in 2022: commercial lending. Here’s how community bankers can take advantage of various sectors—including SBA lending—over the next 12 months. anticipates a low double-digit increase in its commercial lending in 2022.

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South State Correspondent

FEBRUARY 27, 2022

ARC enables community banks to take advantage of a flat yield curve, differentiate the bank from market competitors, provide a higher level of service to better customers, and instill more relationship business – all of this leads to more loans and more profitable customers. Current Risk in Term Lending. Why ARC Makes Sense.

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Independent Banker

AUGUST 31, 2021

A profitability strategy has a lot to factor in given today’s uncertain market. Here’s what community bankers need to know when planning their budgets for the next year. Luckily, there are several strategies in community banks’ toolbox for boosting profitability, even in a low interest rate environment. Build a lending niche.

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Community Bank Community Lending Leadership 170

Gonzobanker

AUGUST 24, 2023

High interest rates have forced many banks to pay more to retain deposits (often via brokered deposits), while many institutions have seen deposits flee to higher-yielding money market funds. Holding these assets can impact profitability because banks can’t lend those funds out or invest them at higher rates. Bond losses.

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South State Correspondent

APRIL 9, 2024

We estimate that the average contractual loan commitment for term credit at community banks has decreased from just under five years in 2022 to just under three years currently. Community banks should carefully consider the prudence of such a strategy from both a risk and revenue perspective. cuts through the end of the year.

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How To Community Community Bank Marketing 195

Abrigo

DECEMBER 18, 2023

WATCH Takeaway 1 Banks and credit unions are critical sources of capital for businesses in their communities, so how institutions assess CRE credits matters. Takeaway 2 Advisors recommend that financial institutions look behind some of the headlines and examine their own markets before ruling out CRE altogether.

Risk Management 221

Risk Management Management Lending Capital 221

South State Correspondent

JUNE 21, 2022

This regime is now changing, and community banks need to position their lending and deposit portfolios for a period of monetary tightening. The market, however, expects a higher year-end Fed Funds rate at 3.65%. The market expects a 75bps increase in July, two more 50bps increases, and another 25bps increase in December 2022.

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Community Bank Policies Community Marketing 359

Abrigo

MAY 24, 2023

Takeaway 2 Considering the urgent need for a legislative solution, the SAFE Banking Act of 2023 could bridge the gap between state and federal marijuana laws. The new 2023 version of the SAFE Banking Act was introduced in the House of Representatives ( HR2891 ) and the Senate ( S1323 ) in May 2023.

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South State Correspondent

FEBRUARY 29, 2024

This article provides an update on pricing trends driven by our Loan Command aggregated community bank data and highlights some commercial loan insights that can improve bank performance. percentage points bringing forward looking LGD to 44% of the average community bank loan amount.

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Perficient

NOVEMBER 21, 2023

With nearly three decades of experience directing commercial lending, corporate finance, and insurance for leading brands, Perficient’s Insurance Principal, Brian Bell, stands at the forefront of our financial services practice.

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Industry Conference Meeting Maine 221

South State Correspondent

JANUARY 2, 2024

First, we believe the market to be a poor predictor of future economic states. A recent 2023 paper from the Federal Reserve Bank of St. Therefore, we can expect no more clarity in 2024 than in 2023. Bankers must be able to present the current (spot) and forward interest rate lending curve to clients.

How To 195

How To St. Louis Lending Marketing 195

Jeff For Banks

APRIL 4, 2024

The Fed has paused for nearly a year now, and it was our experience in 2006-07 that bank cost of funds continued to increase as the market closed the delta between what someone could earn in a money market mutual fund and a bank account. But not until $1 trillion went from banking to money markets.

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Banking Trends Trends Millennials Oregon 115

South State Correspondent

JULY 26, 2023

The bigger risk to community banks’ business model is not a moderate recession induced by aggressive interest rate increases by the Federal Reserve. The Atlanta Fed GDPNow forecast is for Q2 GDP to be just under 2.50%, and the Fed Funds futures market continues to push out the start of the interest rate cuts.

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Community Bank Community Strategy Atlanta 195

Independent Banker

AUGUST 31, 2022

Against this backdrop, agtech—the application of technology to every aspect of the food production process, from farm to table—is growing in importance to the mission of ICBA and community banks. In fact, community banks provide about $155 billion in agriculture loans. Farmers and Merchants Bank in Milligan, Neb., serves as an example.

Innovation 144

Innovation Community Bank Community Lending 144

Independent Banker

MAY 31, 2022

Josh Prejean (right) of Bank of Zachary, here with mortgage client David Rozas, says community banks must compete through customer service. Nonbank institutions continue to be serious contenders in the home lending space. million in 2023. Nonbanks are also gobbling up a bigger percentage of market share.

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Community Bank Community Lending Marketing 185

South State Correspondent

OCTOBER 23, 2022

This rapid change in interest rates requires careful planning, product selection, and new lending and deposit-gathering strategies. Based on current projections, the existing hiking cycle will reach 5.00% in the Fed Funds rate in February 2023. Application to Community Banks. Higher Rates Due To A Suprised Fed.

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Community Bank Community Meeting Lending 221

Independent Banker

DECEMBER 31, 2022

Here’s how community banks can enhance their payments offerings. We’ve got capital market resets that are potentially happening, technology advancements and continued heightened digital expectations. As 2023 kicks off, community banks can respond to today’s payments landscape by addressing five key trends. Quick Stat.

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Trends Payments Community Bank Texas 140

Abrigo

APRIL 22, 2024

Recent dynamics of the small business lending market A deep understanding of the small business lending landscape and potential efficiencies can help banks and credit unions grow their portfolios. You might also like this guide for smarter, faster small business lending.

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Lending St. Louis Community Marketing 243

South State Correspondent

APRIL 23, 2023

However, the market loss of this HTM portfolio was over $15B (disclosed in footnotes), almost equal to the bank’s equity base, making the bank economically insolvent. Consider the following in the banking industry: Banks lend on fair value today, not on the historical cost of the collateral.

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South State Correspondent

JUNE 24, 2022

However, because short-term interest rates are projected to be 2.00% higher within one year, stress testing cash flows with a 4.00% increase represents only 2.00% above the market-expected rate. Nonetheless, even at 2.00% above the market expected rate, many loans originated today will not cashflow above 1.0X.

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How To Policies Community Bank Analysis 195

South State Correspondent

APRIL 30, 2022

Based on the futures market, the Federal Reserve is expected to raise the Fed Funds rate to 3.00% at its December 2022 meeting. In this article, we analyze the industry’s cost of funding earning assets (COF) and track how community banks’ COF behaves relative to larger banks. Historical Cost of Funds Analysis. Future Short-term Rates.

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Community Bank Strategy Community FDIC 195

Abrigo

DECEMBER 16, 2019

Key Takeaways An SEC filer with a 2020 CECL deadline recommends starting ASAP on implementation -- even if your deadline is 2023. Even now, however, banks and credit unions with 2023 deadlines are seeking information about what the earliest adopters have learned so far in their implementation efforts. Be willing to change as needed. .

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West Virginia Virginia Data Community 195

ABA Community Banking

OCTOBER 10, 2023

Julieann Thurlow, ABA’s 2023-24 chair, unites financial inclusion and financial innovation. The post Banking at the intersection of mission and opportunity appeared first on ABA Banking Journal.

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Innovation Leadership Community Bank Policies 122

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. ROE Targets Moved up in 2023 As was the theme for most of 2022, the target risk-adjusted return on equity increased from 15% at the start of 2022 to 24% at the beginning of 2023. coverage as their spread was too high.

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Lending Community Bank Community Data 195

PYMNTS

APRIL 22, 2020

GPay , a member company of the Vietnam investment firm G-Group , joins a tight FinTech market in Vietnam with 33 other firms licensed for intermediary payment services. GPay has a supportive ecosystem from G-Group with above 20 million users of financial platforms, game community, social network and technology companies.

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South State Correspondent

MAY 30, 2023

With the debt ceiling uncertainty, an undecided Fed Reserve, and concern about credit quality, this is a perfect opportunity for community bankers to be trusted financial advisors. The latest Dot Plot below (from March) shows the FOMC members’ expected Fed Funds rate to remain at its current level at the end of 2023.

Examples 195

Examples Course Community Management 195

Jeff For Banks

FEBRUARY 12, 2024

Perry's perspective is clearly focused on shareholder value and may be viewed as shareholder primacy, a sometimes derogatory term because pursuing shareholder value could be done at the expense of other stakeholders, such as employees, customers, and communities. In 2018, started its LIHTC lending line. shareholder value.

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Columbus Indianapolis Capital Community Bank 108

South State Correspondent

AUGUST 15, 2023

Since our last update on 2Q credit HERE , 3Q commercial loan pricing trends start with a better economic picture as higher than-planned growth and softer inflationary data have changed part of the market’s outlook. Regarding loan growth, lending continues to be at the slowest pace since 2008. Total industry loans grew 5.1%

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Trends Community Bank Community Lending 195

Independent Banker

DECEMBER 31, 2021

Here’s what community banks need to know about these products and how they can take advantage of this model. Emerging as the latest form of point-of-sale (POS) lending, BNPL introduces new ways for consumers to make purchases and spread out their payments. And FIS predicts BNPL will climb to 3% of global ecommerce revenue by 2023.

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How To Community Bank Community Lending 91

CFPB Monitor

NOVEMBER 18, 2021

It is clear from the title of the CFPB’s press release announcing the assessment, “ CFPB Seeks Input on Detecting Discrimination in Mortgage Lending ,” that the CFPB is treating this assessment as an initiative addressing fair lending. The specific data points reported under the HMDA Rule that help meet the objectives of the Rule.

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Compliance Data Lending Operations 78

FICO

FEBRUARY 21, 2023

Expectations from Visa are that the GDP will turn negative once again in Q1 and Q2 of 2023 leading The National Bureau of Economic Research to declare a recession. The two main differences this year vs. 2022 are that the housing market has slowed down dramatically (sales are down 35.4% according to the Federal Reserve forecasts.

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Trends Industry US Cards 52