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Community Bank Outlook: Challenges and Opportunities in 2021 and Beyond

Abrigo

How can community financial institutions thrive in 2021? Community banks provide unique and important banking services for their customers, but they also face significant obstacles. Would you like other articles like this in your inbox? according to FFIEC and FDIC data. Background on Community Banking.

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How to Choose a Hedge Provider as a Bank

South State Correspondent

Last week we wrote about loan-level vs. balance sheet hedging for community banks and provided our loan proposal generator ( HERE ). We compared and contrasted the two strategies and sized the market for community banks. A community bank may transact one or only a few balance sheet hedges over many years.

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The State of Liquidity & Regulation in Banking

South State Correspondent

While banking returned to some semblance of normal, many banks continued under short-selling pressure. In this article, we recap the latest data on deposits and banking in order to give you an updated picture. The move will increase the cost of compliance and the cost of capital. Deposit Balances The Fed’s H.8

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Forecasting Cost of Funds Given Fed Moves

South State Correspondent

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. In future articles, we will explain our modeling for community banks’ COF based on inflation, Fed Funds rates, consumer consumption and the Fed’s balance sheet runoff.

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Silicon Valley Bank Failure – Lessons in Interest Rate Risk Management

South State Correspondent

There will be much more discussion and information written on this bank’s collapse, as well as the shutdown of Signature Bank and the story about Sterling Bank, and perhaps others in the weeks and months to follow. That fact makes the bank’s deposits less sticky and subject to outflow at any sign of insolvency.

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The role of bank directors in managing risk

Abrigo

The FDIC is offering a fresh take on how a bank’s board of directors should understand and manage risk. The regulator’s April edition of Supervisory Insights provides what the FDIC called a “refresher” on its Pocket Guide for Directors, the 1988 booklet outlining the basic duties and responsibilities of a bank’s board of directors.

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Are de novos making a comback?

Abrigo

The FDIC paper The Entry, Performance, and Risk Profile of De Novo Banks published in April 2016 reports that the number of de novo bank failures and acquisitions annually has drastically declined since 2010, primarily due to the fact that new bank formations have become nearly inexistent. It is time intensive.