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Loan Hedging for Community Banks in 2024

South State Correspondent

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). This article will discuss how national, regional, and community banks may use loan hedging programs in 2024 to face earnings challenges.

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

Jeff For Banks

In the markets, we watched helplessly as real GDP plummeted -5% in 1Q20 and -31% in 2Q20 before rebounding by +33% in 3Q20. I’ve previously theorized that China would try to reclaim its global market share lost during the pandemic by flooding the markets with cheaper goods. 2024 could exceed -$2.0 Here's a rant.

Marketing 148
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The Recency Trap and Building Deposit Balances

South State Correspondent

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. The data would indicate not marketing to a new customer is a mistake. There is a reason for this.

Marketing 195
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If You Are Tired of Being Transactional, You Need A Hedge Program

South State Correspondent

Loan-level hedging has become an important tool that many community banks have started to adopt in 2024. Meet Competitive Pressures : National and larger regional banks are specifically targeting better borrowers for five, seven, ten-year fixed-rate loans.

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If You Are Tired of Being Transactional, You Need A Hedge Program

South State Correspondent

Loan-level hedging has become an important tool that many community banks have started to adopt in 2024. Meet Competitive Pressures : National and larger regional banks are specifically targeting better borrowers for five, seven, ten-year fixed-rate loans.

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Bank wire fraud – How social engineering and technology perpetrate fraud losses

Abrigo

In 2024, we face sophisticated schemes exploiting both technology and social engineering to target unsuspecting customers. While previously, fraud was local or regional, today, scammers leverage technology extensively. Fraudsters use the same sales and marketing techniques as legitimate businesses to research and target their victims.

Fraud 195
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Deposit Behavior In This Rate Cycle – Part III

South State Correspondent

The two articles underscored how the pace of rate hikes, the starting point of the hiking cycle, the terminal rate, loan-to-deposit ratios, deposit mix, and online banks’ market share would all affect the industry’s deposit behavior. The current projection is that the Fed will remove $3T assets by the end of 2024.