Article, Capital, Management and Marketing

Bank Value: Here is a Better Way to Calculate and Manage

South State Correspondent

JANUARY 10, 2024

This article examines why the standard way to value a bank is flawed and how to have a better methodology. The Better Way to Calculate Value: Customers and Product If you lower deposit rates in this market, you will likely lose customers to competition that may be paying 5% or greater. Now, we want to add another layer.

Management

Management Examples Marketing Millennials

ALM 101: Introduction to Asset/Liability Management – Part 1: ALM Goals & Approaches

Abrigo

JANUARY 11, 2022

Asset/liability management basics In part 1 of this "Introduction to ALM" blog series, learn the goals of asset/liability management and how it can help financial institutions. Takeaway 1 ALM in banking means managing the cash flows of assets and liabilities to increase profitability, manage risk, and maintain safety and soundness. .

Management

Management Meeting Capital Strategy

Capital Market Assumptions

TrustBank

FEBRUARY 22, 2021

Emotions drive markets in the short term, so no matter how good your information is, trying to guess where the market will be in a year is just that – a guess. Therefore, our capital market assumptions are based on expectations for average returns over the next 10 years. annualized over the next 10 years.

Capital

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Elevating Accounting Practices: The Power of Outsourcing and Automation in the Digital Age

Live Demo: How to Achieve Reconciliation Zen

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What Banks Can Learn from the Republic Bank Failure

South State Correspondent

MAY 7, 2024

A slew of articles have been published explaining the reason for this bank’s failure. Not The Root Causes We think that the most disingenuous cause of the bank’s failure as cited in various articles is the “uncertain environment.” However, that faster growth was not unusual and reflects the bank’s higher growth markets.

Risk Management

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Model Risk Management: Regulatory Priorities and Best Practices

Abrigo

MAY 20, 2022

Meet Model Risk Management Expectations Updates to the FDIC Risk Management Manual should steer institutions toward a model that manages risk and drives growth. Would you like other articles like this in your inbox? Model Risk Management in the spotlight. FDIC Update.

Risk Management

Risk Management Management FDIC Meeting

10 Big Bank Marketing Lessons from the ABA Bank Marketing Conference

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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Bank Product Profitability and Productivity

South State Correspondent

JANUARY 17, 2024

In our last article ( HERE ), we highlighted the methodology around why banks should calculate and drive value through customer profitability and product profitability. We focused mainly on customer profitability and used risk-adjusted return on capital as a proxy for profitability. The answer is – most likely.

Study

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Managing Stagflation Credit Risk in Banking – Part III

South State Correspondent

JULY 5, 2022

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. . Loans below 1.50X starting DSCR cannot withstand the current market expected rise in interest rates if cash flow decreases by just 10%. Background.

Management

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Should You Be Marking Loans To Market?

South State Correspondent

NOVEMBER 7, 2022

The AOCI is an accounting adjustment meant to reflect the economic value of assets and is the process of “marking loans to market.” In this article, we explore what signals marking your loans to market might send. However, the public markets were another story. Capital got scarce. Loan AOCI Adjustment.

Marketing

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Silicon Valley Bank Failure – Lessons in Interest Rate Risk Management

South State Correspondent

MARCH 13, 2023

While we will cover the general lessons HERE , in this article, we wanted to focus on the root cause – how and why interest rate risk caused the second-largest bank failure in US history (Washington Mutual was the largest in 2008). More importantly, the bank’s held-to-maturity (HTM) securities portfolio was $91.3B

Risk Management

Risk Management Management Community Bank Community

Interest rate forecasts in today’s market: Planning your ALM position

Abrigo

FEBRUARY 1, 2023

Whatever is in store, it is completely expected that the future of interest rate management requires a more realistic approach to potential outcomes. This change in approach introduces new variables in the interest rate projections that for decades have been a non-issue as we were effectively in a 0% interest rate market.

Marketing

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Go Where No Operations Department Has Gone Before – Instant Settlement

Perficient

MARCH 30, 2023

The front office is screaming down to the Settlement Office, “Operations, we need more capital!” Any operations team that has dealt with a stock loan trading desk can contest the inherent friction between providing more available securities to the desk and reliance on settlement cycles and market constraints.

Operations

Operations blockchain Capital Security

Effective model risk management and model validation in banking

Abrigo

AUGUST 1, 2022

Best practices for assessing models and managing risk Sound model development, implementation, use, and validation is especially important as CECL models debut. . Would you like other articles like this in your inbox? What are model risk management and model validation? Model governance overview. Federal guidance.

Risk Management

Risk Management Management Regulation Analysis

Cross-Selling and Upselling – 2 Drivers of Relationship Profitability

South State Correspondent

MARCH 19, 2024

In two previous articles ( here and here ) we discussed how loan size and loan term affect the profitability of commercial loans. In this article, we consider the common features of upselling and cross-selling. In this article, we consider the common features of upselling and cross-selling.

Community Bank

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How to Practice Loan Pricing Discipline

South State Correspondent

FEBRUARY 27, 2024

In this article, we would like to define loan pricing discipline and cover bid, why it matters, and demonstrate how most community banks currently are not using loan pricing discipline. Bankers need to manage credit relationships to ROA/ROE and not credit spreads. Community bankers need to practice realistic loan pricing discipline.

How To

How To Community Bank Community Management

The Status of Commercial Real Estate Values

South State Correspondent

JUNE 17, 2019

CRE UNDERWRITING Recent data, just released from Real Capital Analytics, shows that since the start of the year (month-end April), commercial real estate (CRE) has appreciated 2.6% In major markets, this appreciation has been closer to 4.9%, and in secondary markets, price appreciation has been 1.5%.

Analytics

Analytics Capital Marketing Data

Building The Relationship Banking Model

South State Correspondent

MARCH 28, 2023

In a recent article ( here ), we discussed why banks that take risks to earn higher revenue demonstrate lower performance as measured by ROA. While in that blog, we specifically considered the risk-return tradeoff for credit risk; in a future article, we’ll consider interest rate risk. However, success does not occur by happenchance.

Community Bank

Community Bank Community Management Marketing

Solve This Problem with Your Strategic Horizon

South State Correspondent

MARCH 14, 2024

In this article, we want to go deeper to show how by increasing your planning horizon, you can increase your long-term performance. This all compares to about a 40%+ return invested in improving processes (loan, branch, cash management, etc.) Bank management should, of course, strive to increase cash flow as soon as possible.

Innovation

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The top lending & credit risk blogs of the year

Abrigo

DECEMBER 22, 2023

Takeaway 2 The top lending and credit blog posts focused on the benefits of banking technology, interest rate management, and developing risk ratings. Takeaway 3 Articles specific to small community banks were among the most-read blogs, with best practices for construction lending at the top of the list.

Lending

Lending Risk Management Community Management

ALM 101: Introduction to Asset/Liability Management-Part 4: Liquidity Risk

Abrigo

APRIL 15, 2022

ALM & Measuring Liquidity Risk at Banks and Credit Unions Regulatory agencies expect financial institutions to manage liquidity risk using processes and systems commensurate with the complexity, risk profile, and scope of operations. Would you like other articles like this in your inbox? This is the fourth post in a series. .

Management

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10 Reports every bank and credit union should run NOW

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. They help manage and shape strategy in volatile economic and industry conditions. the Community Bank Leverage Ratio (CBLR) and the minimum Tier 1 leverage ratio).

Report

Report Risk Management Capital Data

Amidst a Global Crisis, Cloud Technology Trends for 2021 Emerge

Perficient

DECEMBER 14, 2020

The COVID-19 pandemic has challenged the economic and labor markets, impacting all businesses regardless of their size. If your organization is looking to capitalize on cloud technology in 2021, here are a few trends to keep in mind. The Public Cloud Market Will Surge. Cloud-Native Technology Will Power Digital Transformations.

Technology

Technology Trends Software Resources

Defending the bank's capital levels

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. Forward-looking review 4.

Capital

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How to Fight for Your Bank’s Marketing Budget Today … and All Year

The Financial Brand

APRIL 16, 2024

This article How to Fight for Your Bank’s Marketing Budget Today … and All Year appeared first on The Financial Brand. Here are 6 strategies proactive financial marketers can use to parry the budget ax — and 5 responses to common management objections to maintaining marketing spend.

How To

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Personal Capital Review: Free Tools and Paid Wealth Management

MyBankTracker

AUGUST 12, 2020

Personal Capital is an online wealth management concept that started in 2009. billion in assets under management with over 24,200 clients. Today, Personal Capital offers two sets of tools depending on whether you pay for their services or not. How Do Personal Capital’s Free Tools Work? This is done securely.

Tools

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How Your Bank Business Model Impacts Performance

South State Correspondent

NOVEMBER 14, 2023

In this article, we look at two very similar institutions, but ones with different bank business models, and show how their model impacts performance. Comparing the Two Banks Let’s say we have two banks competing in the same market. Bank B is sacrificing efficiency for effectiveness and innovating new products to capture new markets.

Strategy

Strategy Technology Compliance Marketing

Strategic Loan Refinancing for Profitability

South State Correspondent

OCTOBER 4, 2023

In an article last week ( Here ), we discussed how the higher-for-longer interest rate environment will affect the community bank sector. Profitability Reality at Community Banks In a recent article ( Here ), we used CAPM (capital asset pricing model) to calculate community banks’ cost of capital – which we conclude is now 12.50%.

Community Bank

Community Bank Community Capital Comparison

The top 10 2022 ALM resources for financial institutions

Abrigo

DECEMBER 23, 2022

Blog posts to help your asset/liability management (ALM) staff strategize for the future These ALM posts were the most popular in 2022. Would you like other articles like this in your inbox? Takeaway 1 Changing economic landscapes, investment markets, interest rates, customer demand, mergers, and acquisitions affect ALM decisions.

Resources

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How Loan Size Impacts Commercial Loan Profitability

South State Correspondent

MARCH 5, 2024

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. First, larger loans are made to larger companies, and larger companies typically have more access to liquidity and capital, making them more credit-sound.

Community Bank

Community Bank Community National Lending

How Loan Size Impacts Commercial Loan Profitability

South State Correspondent

MARCH 5, 2024

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. First, larger loans are made to larger companies, and larger companies typically have more access to liquidity and capital, making them more credit-sound.

Community Bank

Community Bank Community National Lending

Using Data For Bank Event Lead Generation

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. Banks usually find resounding success as providers of capital and cash management services if the event and approach are right.

Data

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Bank Credit Risk: A Risk-Return Analysis

South State Correspondent

MARCH 19, 2023

While every bank will take some level of credit, interest rate, liquidity, and operational risk, the question is this: Are banks in the business of taking risk to earn higher revenue, or are banks managing relationships and should avoid risk (and the higher return) when possible? Each loan would earn the bank the market clearing ROA.

Analysis

Analysis Community Bank Operations Community

How To Improve Uninsured Deposit Performance

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. This is over three times the life of a money market account that is over $1mm in balances.

How To

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FTP – Another Bank Failure and Another Learning Opportunity

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.

Lending

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FTP – Another Bank Failure and Another Learning Opportunity

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

Lending Capital Management Tools

FTP – Another Bank Failure and Another Learning Opportunity

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

Lending Capital Management Tools

How To Do Better Against National Bank Lending Competition

South State Correspondent

FEBRUARY 20, 2023

Understanding the competitive banking landscape helps community banks set proper pricing, respond to rival marketing, and compete more effectively. The largest 100 banks dominate the industry with almost 75% of the market share. The number of banks that control the domestic loan market is summarized in the table below.

National

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JPMorgan Takes On Square And PayPal At The Point Of Sale

PYMNTS

OCTOBER 21, 2020

He added that instant funds can help SMBs better manage cash flow . Square now manages $100 billion in annual payments and has an $83 billion market capitalization, the article said. They came out with this whole dongle to process stuff and it was a great idea,” said J.P.

Fintech

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How to Measure Interest Rate Risk Effectively in Banks & Credit Unions

Abrigo

JUNE 11, 2021

Would you like other articles on asset/liability management in your inbox? Takeaway 1 Regulators stress sound risk management practices that include the ability to identify and measure interest rate risk (IRR). FDIC) noted in its 2021 Risk Review.

How To

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The Risk of Interest Rate Movement in Relationship Banking

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). The second article compared and contrasted community banks’ pay-for-risk and relationship business models.

Community Bank

Community Bank Community Lending Marketing

Capital optimization for desk restructuring under FRTB

Insights on Business

MARCH 12, 2019

review of the capital requirements for market risk regulations, namely the Fundamental Review of the Trading Book (FRTB). It becomes effective in 2022, but banks should now, more than ever, implement the proposed changes in order to meet the deadline for reporting their Pillar I capital under the new methodologies.

Capital

Capital Regulation Strategy Operations

Risk of Derivatives – The Fall of an Index

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. With the development of the term SOFR market, BSBY offers no perceived advantages over SOFR, Fed Funds, or Prime.

Community Bank

Community Bank Community Compliance CA

Deposit Behavior In This Rate Cycle – Part III

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 ).

Community Bank

Community Bank Community Analysis Industry

CRE risk: Lessons from recent earnings reports

Abrigo

AUGUST 2, 2023

Takeaway 3 Financial institution management can focus on mitigating risk and understanding portfolio dynamics when the analysis is streamlined. This article outlines a structured approach to ensuring management can confidently answer inquiries about the health of their CRE segments and related credit performance. estimates $1.45

Report

Report Risk Management Lending Analysis

Bank Value: Here is a Better Way to Calculate and Manage

ALM 101: Introduction to Asset/Liability Management – Part 1: ALM Goals & Approaches

Webinars

Trending Sources

Capital Market Assumptions

Webinars

What Banks Can Learn from the Republic Bank Failure

Model Risk Management: Regulatory Priorities and Best Practices

10 Big Bank Marketing Lessons from the ABA Bank Marketing Conference

Bank Product Profitability and Productivity

Managing Stagflation Credit Risk in Banking – Part III

Should You Be Marking Loans To Market?

Silicon Valley Bank Failure – Lessons in Interest Rate Risk Management

Interest rate forecasts in today’s market: Planning your ALM position

Go Where No Operations Department Has Gone Before – Instant Settlement

Effective model risk management and model validation in banking

Cross-Selling and Upselling – 2 Drivers of Relationship Profitability

How to Practice Loan Pricing Discipline

The Status of Commercial Real Estate Values

Building The Relationship Banking Model

Solve This Problem with Your Strategic Horizon

The top lending & credit risk blogs of the year

ALM 101: Introduction to Asset/Liability Management-Part 4: Liquidity Risk

10 Reports every bank and credit union should run NOW

Amidst a Global Crisis, Cloud Technology Trends for 2021 Emerge

Defending the bank's capital levels

How to Fight for Your Bank’s Marketing Budget Today … and All Year

Personal Capital Review: Free Tools and Paid Wealth Management

How Your Bank Business Model Impacts Performance

Strategic Loan Refinancing for Profitability

The top 10 2022 ALM resources for financial institutions

How Loan Size Impacts Commercial Loan Profitability

How Loan Size Impacts Commercial Loan Profitability

Using Data For Bank Event Lead Generation

Bank Credit Risk: A Risk-Return Analysis

How To Improve Uninsured Deposit Performance

FTP – Another Bank Failure and Another Learning Opportunity

FTP – Another Bank Failure and Another Learning Opportunity

FTP – Another Bank Failure and Another Learning Opportunity

How To Do Better Against National Bank Lending Competition

JPMorgan Takes On Square And PayPal At The Point Of Sale

How to Measure Interest Rate Risk Effectively in Banks & Credit Unions

The Risk of Interest Rate Movement in Relationship Banking

Capital optimization for desk restructuring under FRTB

Risk of Derivatives – The Fall of an Index

Deposit Behavior In This Rate Cycle – Part III

CRE risk: Lessons from recent earnings reports

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