The Financial Brand

OCTOBER 18, 2023

This article Marketing Emphasis Drives Loan & Deposit Growth for Community Banks: Study appeared first on The Financial Brand. As deposit pressure mounts industrywide, a study of banks with under $2 billion of assets makes a case that bigger marketing budgets can help.

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Community Bank Study Community Marketing 37

South State Correspondent

MARCH 5, 2024

Several measurable factors drive loan (and, by extension, bank) profitability, including loan size, credit quality, term, cross-sell, and upsell. In this article, we will consider how and why loan size is one of the most significant drivers of profitability for community banks and what community banks can do to improve performance.

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South State Correspondent

MARCH 5, 2024

Several measurable factors drive loan (and, by extension, bank) profitability, including loan size, credit quality, term, cross-sell, and upsell. In this article, we will consider how and why loan size is one of the most significant drivers of profitability for community banks and what community banks can do to improve performance.

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Community Bank Community National Lending 195

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

FEBRUARY 20, 2023

Who the competition is, what the lending competition is offering, their delivery channels, and service levels can help community banks differentiate their services and enhance their competitive advantage. Analyzing the competition can also help a bank be realistic about which products it can sell and at what price.

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Abrigo

OCTOBER 1, 2014

Today’s youth and others across all age groups are placing a significant importance on consuming local food, developing local relationships and improving local communities. This is great news for community banks. A recent American Banker article discussed why the local food movement is good for community banking.

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South State Correspondent

FEBRUARY 27, 2024

Community bankers need to practice realistic loan pricing discipline. However, we need to understand the meaning of pricing discipline and its effect on community bank performance. Many banks target profitable commercial clients. Only about 20% of community banks (banks under $10Bn in assets) are using such a model.

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South State Correspondent

JANUARY 16, 2024

Barings Bank, Orange County (CA), Enron, Long-Term Capital Management, and other entities misused derivatives or didn’t understand the difference between hedging and speculating. Some bankers will soon hear about another example of banks using derivatives that, unfortunately, will lead to losses. No ISDA documents.

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South State Correspondent

OCTOBER 4, 2023

If you want to grab a material amount of new deposit balance, offer a 5.05% money market rate, post it all over Instagram, and sit back and watch the money roll in. The approach is a mess, yet it is done every day in banking. Your margins are contracting this year because you are already NOT spending enough on marketing.

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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 ).

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Community Bank Community Analysis Industry 195

South State Correspondent

FEBRUARY 29, 2024

Since our last update on pricing and credit HERE , commercial loan pricing trends for the first quarter of 2024 continue to be driven by the perceived increase in credit risk, tighter credit supply and banks’ need for wider margins. percentage points bringing forward looking LGD to 44% of the average community bank loan amount.

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South State Correspondent

APRIL 1, 2023

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. Bank Borrowings According to the Fed’s H.4.1 Deposit Balances The Fed’s H.8

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South State Correspondent

APRIL 3, 2023

In recent articles ( here and here ), we discussed why banks that take the interest rate movement risk demonstrate lower performance as measured by return on assets (ROA). Empirical evidence, historical bank failures, and common sense teach us that many risks do not translate to higher yields.

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Community Bank Community Lending Marketing 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. Future Short-term Rates.

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South State Correspondent

AUGUST 21, 2022

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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Abrigo

DECEMBER 22, 2023

download NOW Takeaway 1 The most popular blog posts on the Abrigo site reflect many of the priorities community banks and credit unions had in 2023. Takeaway 2 The top lending and credit blog posts focused on the benefits of banking technology, interest rate management, and developing risk ratings.

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Lending Risk Management Community Management 221

South State Correspondent

MAY 1, 2024

With financial hardship, competition from dominant players, and a startup budget, Gentle Monster faced many of the same challenges as a community bank. This article highlights Gentle Monster’s five-step process that might change how you look at the future. COI marketing for banks should always be a top priority.

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South State Correspondent

MARCH 19, 2023

Empirical evidence, recent bank failures, and common sense have taught us that many risks do not translate to higher yields. In this article, we’ll consider the risk-return tradeoff for bank credit risk, and in a future article, we will compare different community bank business models. The markets (i.e.,

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South State Correspondent

APRIL 10, 2023

The current banking crisis has put a magnifying lens on all non-Too-Big-Too-Fail banks. While the market focuses on deposits and liquidity, media pundits and analysts are waiting for credit problems to appear. Of all the credit risks within banks, one of the largest is in commercial real estate exposure.

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Abrigo

JANUARY 19, 2015

The Recession and its subsequent rate of bank failures underscore the need for banks of all sizes to invest in developing a capital plan. The Recession taught many institutions that whatever processes had been in place for managing capital were not sufficient. The result was insufficient capital. percent to 5.8

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South State Correspondent

MAY 9, 2022

Your bank’s deposit beta is going to rapidly change. In our previous article ( HERE ), we reviewed the banking industry’s cost of funding earning assets (COF), and we compared how community banks’ COF behaves relative to national banks in a rising interest rate cycle.

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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. Non-real estate C&I loans also saw better pricing discipline from banks, with an increase in pricing of 39 bps.

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Trends Community Bank Community Lending 195

South State Correspondent

FEBRUARY 27, 2022

In our article last week ( HERE ), we discussed how the yield curve is currently flat between the three and 20-year points. Banks that cannot offer competitively priced term loans out to 20 years may be at a significant disadvantage when competing or retaining top-quality customers. Current Risk in Term Lending. Why ARC Makes Sense.

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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. We outlined the four main reasons why prepayment provisions increase profitability for banks. This cost to the bank is shown in the graph below.

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Community Bank Community Capital Maine 195

South State Correspondent

MARCH 6, 2023

In an article last week ( HERE ), we discussed why real estate loans underwritten at common debt service coverage ratio (DSCR) and loan-to-value (LTV) levels may quickly become substandard credits if capitalization (cap) rates normalize, as expected because interest rates are rising. debt yield ratio ($135k divided by $1.5mm).

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South State Correspondent

APRIL 19, 2023

In this article, we will look at deposit performance data related to high balances and show how banks can dramatically increase value by restructuring relationship-based products and better-allocating marketing/sales dollars more efficiently. million of franchise value per $10 million of money market deposits.

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How To Examples Resources Community Bank 195

South State Correspondent

MARCH 13, 2023

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. More importantly, the bank’s held-to-maturity (HTM) securities portfolio was $91.3B

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Risk Management Management Community Bank Community 221

Abrigo

JUNE 5, 2023

Banking reports to inform risk management and strategy These reports on capital, growth, and liquidity help financial institutions spot warning signs. Takeaway 2 Reports that assess capital, growth, and liquidity provide banking professionals data to drive decisions. Regulators review them to assess safety and soundness.

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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. Rapidly rising rates crushed performance as many banks held a fixed rate constant and/or booked a fixed rate loan at a misguided level. Banks had tight spreads on loans with 1.2 Multifamily is the other call-out.

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Lending Community Bank Community Data 195

South State Correspondent

MARCH 30, 2023

Some customers offer better returns because they use more banking services and have more deposit balances. Not to say you want to ignore parts of your community, but why not focus more of your resources on those industries that will make your bank more profitable?

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Industry Resources Community Case Study 195

South State Correspondent

JULY 5, 2022

In our second part of the series, we covered how monetary tightening and stagflation will cause cash flow constraints for borrowers and create credit risk for banks. In this article, we analyze why 75% LTV may not protect banks from credit risk on commercial loans and why there is only one source of loan repayment. .

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South State Correspondent

JANUARY 30, 2024

As such, bank budgets have come under scrutiny. We recently conducted a small sample poll, and out of 21 banks, budgets were down an average of 14% for this year. Marketing and technology (IT) are two budgets that have taken the most significant hit.

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Capital Operations Customer Experience Comparison 195

South State Correspondent

JULY 6, 2022

In an earlier article, we discussed how we use “cost per impression” as a metric for planning, budgeting, and executing bank events that are specific for customer retention and branding. These are primarily annual trade association events for the profitable industries that your bank targets.

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South State Correspondent

DECEMBER 8, 2023

The real reason that this conference makes our favorites list is that this is one of the few conferences where we can learn what the largest and most progressive banks are doing in the market. Whole Banking is a Function of Team Banking Selling, servicing, and marketing small business banking is expensive because of the complexity.

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South State Correspondent

MAY 3, 2023

Last week, we published an article [ here ] discussing how fair value accounting for assets and liabilities may have prevented the failure of Silicon Valley Bank, even if sound risk mitigation practices were not resolutely embraced by management. At its basic premise, FTP distributes banking profit between lending and deposits.

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Lending Capital Management Tools 195

South State Correspondent

MAY 2, 2023

Last week, we published an article [ here ] discussing how fair value accounting for assets and liabilities may have prevented the failure of Silicon Valley Bank, even if sound risk mitigation practices were not resolutely embraced by management. At its basic premise, FTP distributes banking profit between lending and deposits.

Lending 195

Lending Capital Management Tools 195

South State Correspondent

MAY 2, 2023

Last week, we published an article [ here ] discussing how fair value accounting for assets and liabilities may have prevented the failure of Silicon Valley Bank, even if sound risk mitigation practices were not resolutely embraced by management. At its basic premise, FTP distributes banking profit between lending and deposits.

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