2024 Community Bank Lending Operations 
South State Correspondent
APRIL 30, 2024
An inverted yield curve, continued bank failures, and the desire to manage risk and offer clients higher service are all factors that are driving more community banks to adopt a loan hedge program. Community banks do this profitably by turning transactional accounts into relationships.
South State Correspondent
APRIL 30, 2024
An inverted yield curve, continued bank failures, and the desire to manage risk and offer clients higher service are all factors that are driving more community banks to adopt a loan hedge program. Community banks do this profitably by turning transactional accounts into relationships.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
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 yield curve impact is having a negative effect on bank profits. The market currently does not see, on the balance of probability, interest rate cuts until Q2’24.
South State Correspondent
JANUARY 16, 2024
Bloomberg recently announced that it will shut down its BSBY index on November 15, 2024. Unfortunately, some banks adopted BSBY as one of their preferred indexes and in doing so created risk in derivatives and operations. Comerica Bank announced a $91mm charge, and Bank of America announced a $1.6B
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.
South State Correspondent
SEPTEMBER 20, 2023
The value driver in cash management is that it is usually some sort of operating account at the bank. As such, operating accounts have low-interest rate sensitivity. We have also included the IBIS World 2024 risk ratings to provide some context for the credit and operating risk of the counterparty.
South State Correspondent
NOVEMBER 29, 2023
One of the lessons that was driven home at the recent American Banker Small Business Banking Conference in Nashville was the difference in marketing between large national banks and community banks, particularly deposit marketing. Many banks fall into the “recency trap.” Bank engagement is a habit.
Expert insights. Personalized for you.
195 
Let's personalize your content