PYMNTS

JULY 3, 2019

Large financial institutions (FIs) are increasingly turning to FinTech firms and alternative lenders to augment their small business (SMB) offerings, but community banks are beginning to get on board with the partnership strategy , too.

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Community Bank Community Fintech New Jersey 116

TheGuardian

FEBRUARY 29, 2024

Chief executive of embattled bank steps down after company reports ‘material weaknesses’ in internal controls New York Community Bancorp (NYCB) came under fresh pressure on Wall Street after reporting “material weaknesses” in its internal controls, booking a $2.4bn hit to earnings and replacing its chief executive.

New York 58

New York Community Community Bank Marketing 58

South State Correspondent

SEPTEMBER 18, 2023

This development is very important to community banks, as their efficiency ratio also increased, but to 61.63%. The national banks have already indicated how they plan to reverse the efficiency ratio increase – through headcount reduction. What is Driving the Efficiency Ratio at Community Banks?

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Management How To Community Bank Community 195

South State Correspondent

SEPTEMBER 4, 2023

We analyzed the loan performance (return on equity, loan yield, fee income, and loan size) of hedged borrowings in a large group of community banks and compared this to the community bank industry averages. The table below shows a summary of our analysis (community banks are defined as banks under $10B in assets).

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Analysis Community Bank Community Training 195

South State Correspondent

NOVEMBER 29, 2023

Community banks are striving to increase loan yield and maintain their cost of funding (COF). We have created and used a novel structure to take advantage of the inverted yield curve to allow community banks to increase net interest margin (NIM) and fee income on these existing fixed-rate loans.

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Community Bank Community Tools Strategy 195

South State Correspondent

JULY 10, 2022

At this point in the business cycle, we believe that community banks should migrate to higher credit quality loans. However, in response to our last few blogs, some community bankers told us they have few opportunities to originate loans at 1.75X debt service coverage ratio (DSCR) and sub 60% loan-to-value (LTV).

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Community Bank Community Tools Examples 195

South State Correspondent

JUNE 8, 2022

For decades community banks have structured fixed-rate loans with adjustable features – the most popular structure is a ten-year fixed-rate loan with a five-year reprice. With short-term interest rates expected to rise through 2022, many community banks are reconsidering their ALCO strategies.

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Community Bank Community National Strategy 195

South State Correspondent

JUNE 9, 2022

Many community banks are searching for ways to increase fee income, and many bank CEOs have concluded that fee income is a significant driver of revenue and profitability. We argue that larger banks do not have an inherent advantage over community banks in generating fee income because of their scale.

Community Bank 195

Community Bank Community Comparison Fintech 195

South State Correspondent

OCTOBER 9, 2023

In two articles in the past few weeks ( here and here ), we discussed how the “higher-for-longer” interest rate environment will affect the community bank sector – continued increase in the cost of funds (COF), steady yields on loans, and a decrease in net interest margin (NIM) will put severe pressure on ROE for new loan originations.

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Tools Community Bank Community Strategy 195

Jeff For Banks

AUGUST 2, 2021

This is not a high level of revenues to handle all the expenses involved with operating a troubled banking organization at the time. Like any SMB owner doing a new acquisition, I broke down the expense book. I would say Andy and Flagship Bank Minnesota are Squared Away ! 12/ @Schornack So this was my charge. million in 2020.

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Community Bank Community Minnesota Metro 78

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. When a bank wins a loan, it is imperative that the banker understands the cover bid.

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How To Community Bank Community Management 195

Jeff For Banks

NOVEMBER 6, 2010

A The title of this book compelled me to read it, and I''m a better consultant for having done so. This book does a deep dive into the weeds of balance sheet management. I realized the book was not going to go there when he started making references to specific Bloomberg screens. Here is what I liked about the book: 1.

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Community Bank Strategy Community Report 60

South State Correspondent

NOVEMBER 2, 2015

Last week we saw the release of the details of the Basel Committee on Banking Supervision (BCBS) rule on Fundamental Review of the Trading Book (FRTB). As such, should this rule stand as written, it would most likely go into effect in January of 2019 and make it onerous for large banks to securitize a variety of transactions.

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Lending Community Bank Community 150

Celent Banking

SEPTEMBER 15, 2015

His bank would have won his business easily – had they simply offered him an opportunity to engage with them on his terms. While certainly no panacea, digital appointment booking would have been exactly that. And, it would have been exactly what Bryan expected from his bank. That’s going to change.

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Resources Survey Community Bank Online 100

South State Correspondent

MAY 23, 2022

Customers and competitors are challenging community banks to extend loan duration – borrowers are eager to lock fixed rates before they rise further, and many competitors are happy to oblige. But what are the optimal fixed terms for community banks given today’s interest rate, credit, and liquidity environment?

Lending 195

Lending Community Bank Community Capital 195

South State Correspondent

FEBRUARY 27, 2022

Booking long-term fixed-rate loans on-balance-sheet may not make sense for many banks. At SouthState, we use a program called ARC (Assumable Rate Conversion) that allows borrowers to pay a fixed rate of interest for as long as 20 years, but the bank retains a floating rate asset. Current Risk in Term Lending.

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Lending Community Bank Community Meeting 195

ABA Community Banking

APRIL 1, 2020

The post By the Books: Regulatory Expectations appeared first on ABA Banking Journal. When regulators revised the booklet in 2019, they changed its title from “Business Continuity Planning” to “Business Continuity Management.” The FFIEC said this move reflects the changes in customer and industry expectations for [.].

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Handbook Regulation Management Industry 52

South State Correspondent

JANUARY 18, 2023

Options For Prepayment Penalties Banks use four standard prepayment provisions for commercial loans. The first is a step-down, and it is by far the most common prepayment provision used by community banks. For example, on a 5-year loan, the bank may charge a 5,4,3,2,1 prepayment.

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Community Bank Examples Community How To 195

South State Correspondent

JANUARY 3, 2023

Despite reaching the highest profitability in over a decade in 2022, US banks overall trade at a discount to other sectors as measured by P/E or P/Book, and approximately 53% of US banks have earned less than their cost of equity over the last five years.

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Community Bank Community Data Marketing 221

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.

Lending 195

Lending Community Bank Community National 195

South State Correspondent

APRIL 3, 2023

Empirical evidence, historical bank failures, and common sense teach us that many risks do not translate to higher yields. The second article compared and contrasted community banks’ pay-for-risk and relationship business models. Top-performing community banks deploy relationship banking.

Community Bank 195

Community Bank Community Lending Marketing 195

Gonzobanker

FEBRUARY 22, 2024

Community banks need to analyze the demographics and varied business segments to identify the growth potential of each market. Another key player for successful small business banks is the vice president of business lending, who manages the relationship managers and reports to the chief lending officer.

Lending 78

Lending Community Bank Community Strategy 78

Independent Banker

APRIL 30, 2022

In community banking, we’re not ones to rest on our laurels. We’re always raising the bar for ourselves, our teams and our communities to ensure we provide the best possible services to our customers. You want your teams to think not like employees but like co-owners of your bank’s successes. Good to Great , Jim Collins.

Community Bank 171

Community Bank Community Knowledge Base Leadership 171

Independent Banker

FEBRUARY 28, 2022

We asked several banking leaders how they’ve employed fintech to ramp up their marketing campaigns, hone their analytic strategies and gain new patrons in the process. The digital world has opened vastly broader avenues for community banks to attract new customers—especially if they partner with fintechs in their endeavors.

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Fintech Marketing Community Bank Community 136

Independent Banker

NOVEMBER 30, 2022

Across the world, people are using super apps to send messages, purchase tickets and, of course, bank online. What are they, and how can community banks stay on top of this trend? Community bank considerations. So, what does this intersection of regulation and technology competition mean for community banks?

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Community Bank Community Maryland Data 91

South State Correspondent

APRIL 18, 2023

We concluded that the market does not adequately compensate banks for credit and interest rate risks. Top-performing community banks deploy relationship banking. We define relationship banking as a model focused on a consultative banking approach. uses at our bank.

Strategy 195

Strategy Regional Industry Community Bank 195

Finer Points

DECEMBER 19, 2014

18, 2014 In his impactful book Don’t Think of an Elephant, cognitive scientist George Lakoff illustrates how framing a discussion from the beginning is key to winning the argument. Community Banks Too Big to Fail Washington' It is reprinted below with American Banker’s permission. By Cornelius Hurley Dec.

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Washington Community Bank Community 140

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. years, thereby increasing the ROE by 5.5% for our sample $500k loan.

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Community Bank Community Capital Maine 195

South State Correspondent

SEPTEMBER 7, 2022

A common strategy for community banks, when faced with a borrower that wants a 10-year fixed rate loan, is to offer a five-year fixed rate that adjusts in five years. Historically, this has worked for some customers and banks because, over the last 40 years, five-year rates have generally fallen.

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Community Bank Community Lending Maine 195

Abrigo

JANUARY 17, 2023

Customers were used to this bank interface after two rounds of PPP, and then we dropped it like a lead balloon. In my experience, community banks only do what they have to do. Closing and booking the loan to core. This enables an immediate QC, and if the loan passes, fund and book. They are: . Digital lending.

Lending 195

Lending System Customer Experience Case Study 195

South State Correspondent

FEBRUARY 10, 2015

Community banks often treat all sized loans the same when it comes to pricing. For banks that do this, keep in mind that they are not one, but two steps away from reality when it comes to superior bank performance. A $3 million loan is priced the same as a $700,000 loan. As such, profitability is different.'

Marketing 150

Marketing Community Bank Community 150

South State Correspondent

JANUARY 30, 2024

A typical current strategy for community banks when originating commercial real estate loans is to offer floating-rate loans or shorter-term adjustable structures. Therefore, the prepayment risk on adjustable fixed-rate loans falls squarely on the bank without compensation.

Community Bank 195

Community Bank Case Study Community Strategy 195

Independent Banker

JANUARY 31, 2022

Ken Finley, president of Johnson City Bank, in downtown Johnson City with Shannon Sultemeier, executive vice president (left); and Brenda Haynes, vice president/cashier (right). Here’s how four community banks are thriving in this environment. Many of the bank’s clients share that conservatism. Photo by Dennis Burnett.

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Texas San Antonio Community Bank Community 182

Jeff For Banks

MARCH 23, 2021

book value and 51x EBITDA, buying a bank. For 1.85x book. Especially for a community bank. Because that was what LendingClub paid for Radius Bank. It was one of my most read posts and is a chapter in my upcoming book, Squared Away (soon to be available in your favorite bookstore).

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Fintech Community Bank Taxes Lending 88

American Banker

OCTOBER 8, 2020

Deferrals may be hiding credit issues, leading lenders to track deposit flows, property maintenance and other factors to gauge the true health of their portfolios.

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Community Bank Community Lending 90

South State Correspondent

APRIL 4, 2022

Loans are expensive to source, underwrite and book, and shorter credits are generally less profitable. At the average community bank, approximately half of the loan portfolio matures every year – that means that half of the portfolio must be defended each year just to maintain the same loan size.

Lending 195

Lending How To Community Bank Community 195

Jeff For Banks

JANUARY 7, 2022

In fact, the content in my book, Squared Away: How Can Bankers Succeed as Economic First Responders , was driven by the top 20 most-read posts of all time. The Death of the Community Bank Pundits make predictions. Squared Away: How It Happened Since I had never published a book, I had no idea how to approach writing a book.

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Community Bank Community Strategy Marketing 78