South State Correspondent

JULY 10, 2023

One possible solution to this dichotomy is for banks to offer interest rate swaps to hedge individual loans. This article will review domestic banks’ adoption of interest rate swaps. Next week’s article will consider the challenges and possible solutions for community banks to adopt loan hedging programs.

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South State Correspondent

JANUARY 16, 2024

There will likely be other banks that adopted BSBY that will take similar charges. We published various articles comparing community bank alternatives to LIBOR (such as SOFR, Ameribor, Fed Funds, and Prime). Historically, community banks have hesitated to adopt derivatives for several reasons.

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South State Correspondent

JUNE 21, 2022

This decision coincided with rate hikes by the Swiss National Bank, its first since 2007, the Bank of England, and the European Central Bank announced at an emergency meeting that they would raise interest rates next month and again in September. Conclusion.

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South State Correspondent

AUGUST 21, 2023

However, that publication, directly and indirectly, identified three discrete risks affecting community banks. We will outline what we think community bankers should glean from this publication. Risks to the Community Banking Sector Moody’s identified three risks to the banking sector, including risks to community banks.

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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. This is strong evidence that community banks are pricing to an arbitrary minimum credit spread in this set of loans.

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Abrigo

MARCH 9, 2015

The latest FDIC Quarterly Banking Profile was just released and the industry continues to be led by the nation’s community banks. percent of community banks were unprofitable during the quarter. Net interest income accounts for almost 80 percent of net operating revenue at community banks.

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Abrigo

MARCH 9, 2015

The latest FDIC Quarterly Banking Profile was just released and the industry continues to be led by the nation’s community banks. percent of community banks were unprofitable during the quarter. Net interest income accounts for almost 80 percent of net operating revenue at community banks.

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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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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.”

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South State Correspondent

FEBRUARY 28, 2023

Many community banks today are willing to underwrite real estate secured loans on just two metrics: debt-service-coverage ratio (DSCR) and loan-to-appraised value (LTV). Banks typically approve credits above 1.20x DSCR and below 75% LTV – with many loan-specific factors that may skew these acceptable levels.

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The Financial Brand

NOVEMBER 29, 2022

This article Hard-Nosed Innovation Lessons from a Community Bank appeared first on The Financial Brand. Community financial institutions can't bankroll 'innovation theater.' Here's how one bank tracks trends but only implements viable tech.

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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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The Financial Brand

NOVEMBER 22, 2022

This article Bankrate, Step Aside. Seattle Bank’s Unbiased CD Site Has National Plans appeared first on The Financial Brand. One community bank has launched a free CD rate listing service that aims to help both consumers and financial institutions. This article Bankrate, Step Aside.

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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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Abrigo

NOVEMBER 29, 2021

Takeaway 3 Community banks have seen less volatility in noninterest income, and many are still eyeing growth across the category. This article looks at trends in growth and composition as well as legal, regulatory, and competitive pressure on noninterest earnings. Community banks target growth.

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Alex Jimenez

APRIL 7, 2024

Pausing Innovation This was on my mind when reading this article about Nike’s innovation woes. In the article Matt Powell , advisor at Spurwink River and senior advisor at BCE Consulting , is quoted, “What happened with Nike, and lots of brands during the pandemic, was they made a decision to play it very safe.”

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South State Correspondent

JANUARY 18, 2023

Loan prepayment provisions lower prepayment speeds (especially in a stable or declining interest rate environment) and drive higher return on assets (ROA) for banks. In this article, while we have discussed how to sell prepayment penalties in the past, we now look at their current importance. Why Use Prepayment Penalties?

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South State Correspondent

AUGUST 22, 2023

If one product is the future of banking, it is treasury management. With a competitive offering, it will be easier to attract the small business and mid-sized companies that a bank needs to fuel its core growth. This likely creates the most significant single profitability lift for any bank.

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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. The greater fool theory breaks down in a recession.

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South State Correspondent

APRIL 10, 2023

This article explores the risk and what to do about it. CRE Risk Background While ten years ago, community and regional banks use to make up some 55% of the CRE market, in 2023, these banks now compose approximately 72% (below). Banks should start to ask for increased data on occupancy and net rents.

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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. Leveraging social media, Gentle Monster started to get traction.

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South State Correspondent

SEPTEMBER 20, 2023

Some customers are more profitable than others, and if you are out to build a more profitable bank, it pays to have a tactical plan to go after more profitable customers. The treasury or cash management customer is usually a bank’s most profitable customer on a risk-adjusted basis ( HERE ).

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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. The result is a credit-skewed portfolio to the negative.

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Finer Points

AUGUST 3, 2015

While ICBA continues our full-court press toward advancing community bank regulatory relief all the way through Congress and to the president’s desk, we are also making noticeable headway in raising public awareness of the problem via the national news media.

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South State Correspondent

FEBRUARY 8, 2023

This article provides an overview of the equation and highlights our lessons learned. While national banks are getting more sophisticated, many regional banks still think of just price, giving community banks a considerable advantage. As we will soon show, price is often the least important input.

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South State Correspondent

MARCH 21, 2023

The need for a known, reliable brand creates an excellent opportunity for community banks to help small business customers while building deposit balances. This article breaks down how you can use the ERC Assist product to generate deposits in an innovative way. ERC Assist also serves to differentiate your bank from competitors.

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South State Correspondent

MARCH 16, 2022

In this article, we focus on prepayment provisions and look at how a past gold medal winner does it. One element that many commercial banks attempt to differentiate with borrowers is the prepayment provision (or sometimes the lack of one). Prepayment Provisions Not Penalties. This is by far the most common provision.

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South State Correspondent

DECEMBER 8, 2023

The need to reduce cost, the move to instant payments, and the need to deliver more unique products and services are all driving this effort at credit unions, community banks, and mid-sized banks. Some banks also segment customers along affinity lines such as veteran, woman, or minority-owned businesses.

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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? They are also more plentiful.

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PYMNTS

OCTOBER 9, 2018

.” “There is no doubt that the lease accounting standards will add new complexities to a broad range of business functions, including sales, lending, contracting and financial reporting,” wrote Whitney Schiffer, CPA, in an article last week for accounting and advisory firm Berkowitz Pollack Brant.

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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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Abrigo

AUGUST 11, 2016

According to the Credit Union National Association (CUNA) , credit unions had a record year in 2015, with 3.7 Creating top-rated apps Banking is becoming increasingly mobile, as checks are now frequently deposited and money can be transferred via the convenience of an application on a smart phone.

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Abrigo

MARCH 17, 2015

According to the latest FDIC Quarterly Banking Profile, community banks continue to thrive and lead the industry. As more banks turn profitable – 90.3 A recent article by Randy Wardwell on BAI Banking Strategies highlighted eight tips for building winning relationships with your borrowers.

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South State Correspondent

MAY 9, 2023

Over the last ten years, banks have reduced the differences in deposit rates between different areas, and now with the rise of technology and more national bank platforms, we see less and less geographical sensitivity to rates. This trend will continue until there is little arbitrage banks can extract over geographies.

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Abrigo

JUNE 5, 2015

In a recent Forbes article, Frank Sorrentino, Chairman and CEO of ConnectOne Bank, offered his take on how financial institutions should flip their mindset on regulators and examinations.

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Abrigo

AUGUST 31, 2023

From a security standpoint, forcing customers into Western nomenclature can lead to missed OFAC specially designated nationals (SDN) list matches, and open-source information searches could be lost or overlooked. For example, form letters often filter information from core systems, automatically assigning “Mrs./Mr./Miss”

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Abrigo

JULY 23, 2021

Would you like others articles like this in your inbox? It is a concept that we have all heard of, however, the concept remains somewhat of a mystery in the community bank world. Below are terms and definitions that will be referred to in this article.

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