South State Correspondent
JANUARY 10, 2024
Community banks’ use of swaps (banks’ primary tool to hedge interest rate risk on loans) has increased substantially over the last ten years. The market expects the current inverted yield curve to remain through much of 2024 (based on long-term interest rates and the expected rate cuts in 2024).
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’ main goals are to diligently support their local communities and make an acceptable return on capital in these challenging times.
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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’ main goals are to diligently support their local communities and make an acceptable return on capital in these challenging times.
Jeff For Banks
MARCH 21, 2024
2024 could exceed -$2.0 ISMs and regional Fed surveys have been mostly negative for months on end. Dorothy recently retired from Penn Community Bank where she worked since 2004. High debt levels continue to harm GDP as the US Treasury issues new debt with abandon and the politicians hand out money like candy.
South State Correspondent
MAY 18, 2022
In two recent articles, we reviewed the banking industry’s deposit behavior with regard to cost of funding earning assets (COF) ( HERE ), and we compared how community banks’ COF behaves relative to national banks in a rising interest rate cycle ( HERE ). Deposit Behavior In This Tightening Cycle Versus Last Three.
BankInovation
SEPTEMBER 1, 2023
As community and regional banks navigate 2023 and approach 2024, they’re setting their sights on critical priorities to chart their strategic direction – with a keen focus on: • Growing deposits • Growing loans • Retaining talent Jack Henry’s 2023 Strategic Priorities Benchmark Study found that 79% of financial institution CEOs surveyed plan to increase (..)
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.” There is a reason for this.
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