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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How To Community Bank Community Management 195

The Financial Brand

FEBRUARY 29, 2024

This article Is Being a ’Regional Bank‘ Now a Reputational Liability? How can regionals regain their shine? This article Is Being a ’Regional Bank‘ Now a Reputational Liability? appeared first on The Financial Brand. A few high-profile failures have tarnished the category.

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Regional Branding New York Banking Trends 26

South State Correspondent

JUNE 30, 2023

Many banks pride themselves on superior customer service, and approximately 90% of all community banks believe that they provide an above-average level of customer service (the math cannot work that way). In the big picture, providing superior service across the entire bank customer base is counterproductive.

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Resources Community Bank Capital Community 195

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.” There is a reason for this.

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Marketing Regional National Nashville 195

South State Correspondent

APRIL 18, 2023

In recent articles ( here and here and here ), we discussed why banks that take risks to earn higher revenue 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. uses at our bank.

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Strategy Regional Industry Community Bank 195

South State Correspondent

OCTOBER 17, 2022

In a previous article ( HERE ), we discussed the concept of Funds Transfer Pricing (FTP), why systemically important banks and large regional banks incorporate FTP, and why community banks should also consider implementing FTP.

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How To Community Bank Community Capital 195

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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How To Community Bank Community FDIC 195

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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Community Bank Community Los Angeles Regional 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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Community Bank Community Lending Regional 195

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.”

Innovation 87

Innovation Management Strategy America 87

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.

Community Bank 195

Community Bank Community Industry Online 195

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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Community Bank Examples Community How To 195

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.

Community Bank 195

Community Bank Community Capital Maine 195

South State Correspondent

APRIL 19, 2023

While every bank is now tracking the general metric, only a few banks monitor deposit performance in the category. For example, while banks in the Southeast and Mid-Atlantic regions of the U.S. This is one of the great mysteries of community banking. This will be on April 26 th at 4 pm ET.

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How To Examples Resources Community Bank 195

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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Management Community Bank Survey Community 195

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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Lending Community Bank Community Data 195

South State Correspondent

AUGUST 8, 2022

In this article, we put some data behind the trends and provide optimal targets to help you run your bank more successfully. We used the S&P Global database, earnings releases, and investor calls to gather the first hundred banks releasing 2Q numbers as of 8/2/2022. Insights Based on 2Q Bank Earnings. Methodology.

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Trends Community Bank Community Retail 195

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.

Community Bank 195

Community Bank Marketing Community Regional 195

The Financial Brand

APRIL 18, 2023

This article Earnings Watch: Uninsured Deposits & Commercial Real Estate Loans Should Be Prime Focuses appeared first on The Financial Brand. The impact of rising interest rates on commercial real estate lending will be a key issue among regionals and community banks.

Community Bank 31

Community Bank Regional Lending Branding 31

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 ).

Management 195

Management Survey Industry Community Bank 195

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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Conference Retail Community Bank Technology 195

PYMNTS

JULY 31, 2017

. -14% of SMEs using a large global bank have switched providers in the last year, while even more told FIS they are considering doing so in the next year. and Europe are looking at switching banks to access more high-tech services, like faster payment capabilities. -48%

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Survey Community Bank Community Regional 112

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. Step 1: There is No Prepayment Penalty on the Loan.

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How To Community Bank Community National 195

Abrigo

AUGUST 31, 2023

The laborious process of legal name changes and the possibility that outdated information may lead to deadnaming individuals can lead to misunderstandings between banks and clients who have changed their identities. Members of Amish or sovereign citizen communities often have fewer government-issued IDs.

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Compliance Community Training System 195

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.

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.

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.

Lending 195

Lending Capital Management Tools 195

Abrigo

MAY 20, 2015

A recent American Banker article, “ Beyond Apple Watch: Banks Explore Apps for Other 'Things' ,” provided some additional insight to the ways in which banks, credit unions and their vendors are preparing for the day when everything is “smart” and connected online.

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Apple Comparison Mobile Innovation 150

South State Correspondent

OCTOBER 28, 2022

During the two weeks, there were over a hundred significant cyberattacks by nation-states on national and regional banks that you could watch unfold in near real-time (bel0w) at Gartner and Money 20/20. Any community bank that believes it can keep up and thwart millions of attacks per second is fooling itself.

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Conference Technology Las Vegas Trends 195

South State Correspondent

MAY 31, 2023

The concept that we allow the customer to choose how they want to bank often enables the bank to be passive in its position and give up agency. In this article, we look at cell phone tracking data for about 1,000 branches across the industry to derive insights to help banks increase branch engagement and boost branch profitability.

Data 195

Data Branch Strategies Strategy Mobile 195

Gonzobanker

MARCH 23, 2020

Cornerstone Advisors has been a broken record telling the story of a community banking industry that’s falling behind in online and mobile capabilities. Our long novels about slowly losing ground to the mega banks just became an audio book to be played on high speed while walking between the kitchen and home office to refill on coffee.

Community Bank 135

Community Bank Tools Case Study Online 135

South State Correspondent

APRIL 6, 2022

Our recent sampling of 73 banks indicates that most banks have not adjusted loan or relationship pricing assumptions over the last two years. That could be a mistake as the environment has been radically different since 2020, and many banks are mispricing their commercial loans and relationships. Loan Pricing Model Basics.

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Capital Training Management Atlanta 195

South State Correspondent

MARCH 15, 2023

While we wrote about the root cause of the failure of Silicon Valley Bank (SVB) HERE , the lessons of the current banking crisis go beyond interest rate risk management. While interest rate risk caused the most significant impact on value, several other factors contributed to the terminality of each bank that was closed.

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social media FDIC Branding Management 195

Abrigo

AUGUST 1, 2016

Everywhere you look, it seems, there are articles about Millennials: Millennial workers, Millennial customers, Millennial homeowners, Millennial voters. Banks are critical financing partners for growing enterprises. Eight in 10 business owners report that a major, regional or community bank is their main financing partner for capital.

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Millennials Survey Risk Management Groups 150

Jeff For Banks

MARCH 21, 2024

According to a Wall Street Journal article on March 3 rd , this time has come. ISMs and regional Fed surveys have been mostly negative for months on end. Dorothy recently retired from Penn Community Bank where she worked since 2004. This development could give us good news on inflation.

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Marketing Policies Report Atlanta 148

Jeff For Banks

JUNE 22, 2015

Chris Cox, the head of Regions Bank eBusiness unit, was quoted in Bank Technology News on how personal financial management (PFM) tools will soon be part of a customer's everyday interaction with their bank once they login. And don't stop at retail banking tools. I believe him.

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Tools Branding Training Apple 60

Gonzobanker

MARCH 5, 2019

And the API-driven control over technologically enabled customer engagement sincerely offers community banks a suite of capabilities that have historically only been accessible by super regional and mega banks developing custom solutions. The Conquerors.

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San Francisco Conference Industry Community 97