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Managing Stagflation Credit Risk in Banking – Part III

South State Correspondent

In a stagflation environment, as interest rates rise and cash flow (earnings before interest, taxes, depreciation, and amortization (EBITDA), or net operating income (NOI)) decreases, the borrower’s capacity to service debt as measured by the debt service coverage ratio (DSCR) decreases rapidly.

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What Relationship Pricing Means for Bank Performance

South State Correspondent

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). There are several ways for bank managers to address this issue and better align relationship pricing with bank profitability.

Resources 195
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Growing your firm’s advisory services: Financial management

Abrigo

The transition from compliance to consulting makes sense: tax season is just that, a “season,” and nearly 60 percent of respondents to a Sageworks survey indicated they saw an increase in total revenue by adding financial services to their accounting practice.

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Top CECL Questions Answered

Abrigo

Strategies to lessen the impact of CECL on smaller community banks. How to lessen the impact of CECL on smaller community banks. Many smaller community financial institutions are driving the conversation of cost vs. benefit regarding CECL. WARM was geared specifically to community banks. Learn More.

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Expanding credit portfolios: 3 Growing pains

Abrigo

Community banks are expanding their loan portfolios to include more small business loans, according to the most recent Community Bank Performance report by the FDIC. Blog Bank Credit Union' Loans across categories increased, with commercial and industrial loans growing at the fastest rate, roughly 5.3

Training 170
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How to Increase Member Business Lending

Abrigo

Small Business Loans | 5 minute read Key Takeaways Credit unions' small business loans hit a record low, while small business lending continues to remain strong at big banks and community banks. For big banks and community banks, on the other hand, small business lending remains strong. Learn More.

Lending 150
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Book Report: Community Banking Strategies by Vincent Boberski

Jeff For Banks

This book does a deep dive into the weeds of balance sheet management. The author is very experienced in bank investment portfolio management. So his insights and analysis were critical to teaching me, and possibly you, about seemingly mundane yet important topics such as tax efficiency, derivatives, and BOLI.