South State Correspondent

APRIL 9, 2024

The primary reason for this shift is not a change in borrowers’ business models or banks’ preference for repricing term loans, but rather, borrowers’ decision to seek short-term financing in anticipation of the Federal Reserve embarking on an interest rate cutting cycle. cuts through the end of the year.

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South State Correspondent

JUNE 21, 2022

Last week the Federal Reserve hiked interest rates by 75 basis points – its most significant hike since 1994. Interest rates were zero (real rates, almost consistently, and nominal rates through most of the last 14 years), and the Federal Reserve injected massive amounts of liquidity.

Community Bank 359

Community Bank Policies Community Marketing 359

Perficient

NOVEMBER 22, 2023

Rising Credit Card Debt and Interest Rate Impact Since early 2022, the Federal Reserve has raised interest rates 11 times , impacting both student loans and credit cards. Credit card interest rates have hit a record-high average of 22%.

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United States Cards US Operations 221

South State Correspondent

APRIL 30, 2024

Eliminate Interest Rate Risk: Eliminate margin compression when interest rates rise. Meet Competitive Pressures : National and larger regional banks are specifically targeting better borrowers for five, seven, ten-year fixed-rate loans. Banks are in the business of keeping loans, not making loans.

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South State Correspondent

APRIL 30, 2024

Eliminate Interest Rate Risk: Eliminate margin compression when interest rates rise. Meet Competitive Pressures : National and larger regional banks are specifically targeting better borrowers for five, seven, ten-year fixed-rate loans. Banks are in the business of keeping loans, not making loans.

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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.

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South State Correspondent

JANUARY 10, 2024

Community banks’ use of swaps (banks’ primary tool to hedge interest rate risk on loans) has increased substantially over the last ten years. The market expects the current inverted yield curve to remain through much of 2024 (based on long-term interest rates and the expected rate cuts in 2024).

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South State Correspondent

MAY 30, 2023

Uncertainty about the evolution of the economy and the path of future interest rates and the unusual inverted yield curve shape affords a prime opportunity for bankers to provide sound, trusted advice to clients. Short-term fixed-rate loans are not attractive to borrowers because longer-term commitments are up to 1.85% cheaper.

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Examples Course Community Management 195

South State Correspondent

SEPTEMBER 25, 2023

On September 20, 2023, the Federal Open Market Committee (FOMC) left its benchmark rate unchanged, but it would be a mistake to conclude that the committee did not send a strong message about the projected path of future interest rates.

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Community Bank Community Industry Marketing 195

South State Correspondent

JULY 26, 2023

The bigger risk to community banks’ business model is not a moderate recession induced by aggressive interest rate increases by the Federal Reserve. The Fed may be nearing the end of its hiking cycle, but given the high threshold for interest rate cuts, there may be no changes in the Fed Funds rate until well after 2024.

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Community Bank Community Strategy Atlanta 195

South State Correspondent

OCTOBER 4, 2022

The Federal Reserve Open Market Committee (FOMC) has raised short-term interest rates by 3.00% in the six months between March and September. How should we respond to borrowers who seek our advice on the future path of interest rates? Example of Future Path of Interest Rates.

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South State Correspondent

JANUARY 2, 2024

How should lenders discuss interest rates in 2024, and what advice should relationship managers provide their clients about banking products? How Bankers Should Advise Clients About Rates in 2024 We believe there are four broad areas where bankers can advise clients that are not predicated on trying to predict the future.

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Perficient

NOVEMBER 22, 2022

In the absence of a PoA, the SCRA requires the court to appoint someone to represent the service member’s interests. Reduced interest rates. As the Federal Reserve increases rates, the impact and significance of this interest rate ceiling to servicemembers will rise along with it.

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South State Correspondent

JULY 10, 2023

With an inverted yield curve, borrowers have a pricing advantage to lock in long-term fixed-rate loans, while lenders strongly desire to limit loan duration. One possible solution to this dichotomy is for banks to offer interest rate swaps to hedge individual loans.

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South State Correspondent

DECEMBER 5, 2023

Most borrowers have a rudimentary understanding of interest rates, the yield curve, forward rates, and forward premiums. Commercial lenders should not try to help their clients predict future interest rates because that is impossible and does not create value for the relationship.

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Lending Marketing Capital Community Bank 195

South State Correspondent

APRIL 10, 2023

Silicon Valley Bank’s failure was spawned by the decrease in the fair value of securities caused by an increase in interest rates. But many banks have more significant fluctuations in fair value in their loan portfolios (because of the same rise in interest rates.) in Tier 1 capital.

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TheGuardian

APRIL 11, 2024

Kristalina Georgieva warns of ‘new inflation surprises’ that could result from easing of interest rates Business live – latest updates UK politics – latest updates The world’s leading central banks must resist growing pressure for early interest rate cuts amid concerns over stubbornly high inflation on both sides of the Atlantic, the head of the International (..)

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Policies 90

South State Correspondent

JUNE 13, 2023

Our job at Loan Command and on the ARC hedge desk is to help bankers win business, offer borrowers competitive structures and pricing, and maximize bank profitability while reducing risk. Unfortunately, floating-rate loans generally have conflicting outcomes. Some borrowers are waiting for interest rates to fall to refinance debt.

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Marketing Examples Capital Management 195

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. They’ve also focused on managing interest rate risk in a rising rate environment. Read the buyer's guide to lending solutions.

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Lending Risk Management Community Management 221

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. Borrowers are waiting for the Fed to lower short-term interest rates, hopefully translating into a refinancing opportunity for the borrower at a lower loan rate.

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Community Bank Case Study Community Strategy 195

South State Correspondent

DECEMBER 11, 2022

The yield curve is currently inverted after the FOMC’s last rate increase of 75 bps. The inversion will be more pronounced with next week’s additional rate increase, expected to be 50 bps. Short-term fixed-rate loans are not attractive to borrowers as longer-term commitments are up to 1.50% cheaper in rate.

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How To Community Community Bank Examples 195

South State Correspondent

NOVEMBER 14, 2022

The FOMC has raised short-term interest rates by 3.75% in the eight months between March and November. As short-term rates have gone up, so has the cost of credit for all borrowers, especially those who want to borrow for shorter terms (up to five years). Bankers As Trusted Advisors.

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Analysis Guidelines Marketing Community Bank 195

South State Correspondent

NOVEMBER 14, 2022

reIt is counterintuitive that you might want to advise borrowers to do a loan refinancing at this stage of the interest rate cycle. The FOMC has raised short-term interest rates by 3.75% in the eight months between March and November. The market is now forecasting an additional 1.25% in hikes by early next year.

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Analysis Guidelines Marketing Community Bank 195

Payments Dive

AUGUST 4, 2022

The major payments processing company said higher interest rates, increased wages and foreign exchange rates were putting pressure on the business.

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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. Some borrowers believe that interest rates will fall because a recession is approaching. The average community bank’s loan portfolio attrition rate is about 25% to 30% annually.

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Community Bank Community Capital Comparison 195

South State Correspondent

OCTOBER 23, 2022

In the last 12 months, the Federal Reserve went from arguing that inflation was a transitory phenomenon to raising interest rates to fight runaway inflation by three percent in just six months. The result is not only higher rates but the most severe interest rate hiking cycle in the past 35 years – and it is not over yet.

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Community Bank Community Meeting Lending 221

Accenture

JUNE 27, 2022

Bankers must be weary of all the talk about disruption; in the past 15 years they’ve had to survive both the economic and reputational fall-out of the Great Recession, digitize their business and start moving it to the cloud, manage the greatest-ever distribution of relief funds to see their customers through the COVID-19 pandemic, and….

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Management Technology 332

South State Correspondent

DECEMBER 13, 2023

Most market participants are focused on just one monetary policy tool available to the Fed – short-term, federal funds rates. Even if the Fed does not increase the Fed Funds rate or even decreases the rate in the future, continued QT is expected to put pressure on the cost of funding in 2024. The tightening was only $50B/mo.

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Community Bank Community Policies Tools 195

Perficient

FEBRUARY 25, 2021

Business intelligence technologies are shaping analytics decision making across multiple industries. In season 1 episode #4 of the Intelligent Data Podcast , host Arvind Murali and his guest Abhisek Majumdar, Perficient’s Business Intelligence practice director, discuss how to use data storytelling as a solution for a digital transformations.

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Analytics User Experience Apple Google 528

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.

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Community Bank Community Lending Regional 195

South State Correspondent

SEPTEMBER 29, 2022

Last week the Federal Reserve again raised the Fed Funds rate by another 75 basis points – and again, that was in line with the market’s expectation. The question is when will the Fed stop, and what will be the terminal Fed Funds rate? Neutral Rate in Relation To the Terminal Fed Funds Rate. Feds Projections.

Policies 195

Policies Community Bank Community Marketing 195

Abrigo

FEBRUARY 14, 2024

Takeaway 3 CRE stress testing evaluates stressors such as interest rates and collateral values to help identify vulnerabilities and strategies for risk mitigation. In AGC’s 2024 outlook report , 64% of contractors named rising interest rates and financing costs as one of their biggest concerns.

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Risk Management Management Lending Capital 195

South State Correspondent

FEBRUARY 27, 2022

However, we are at the bottom of an interest rate cycle, and the Federal Reserve is expected to raise rates for the next few years. Booking long-term fixed-rate loans on-balance-sheet may not make sense for many banks. Current ARC Pricing. Current Risk in Term Lending. Why ARC Makes Sense.

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Lending Community Bank Community Meeting 195

Abrigo

FEBRUARY 6, 2024

Develop an MBL program while mitigating risk Credit unions looking for alternate paths to growth in today's rising rate environment may be primed to leverage member business lending. Takeaway 3 The specific policy areas outlined below should be carefully considered by credit unions engaged in member business lending.

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Lending How To Risk Management Policies 221

South State Correspondent

NOVEMBER 7, 2022

” That same adjustment can be applied to banks’ fixed-rate loans for economic value analysis to better understand value creation and allocation, prioritize future business activity, and better deploy capital. Further, of all loans at community banks, approximately 71% are fixed-rate loans.

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Marketing Community Bank Community Security 195

Perficient

DECEMBER 29, 2023

The Plan retained the assessment rate schedules in place at the time. In conjunction with the Amended Restoration Plan, the FDIC Board increased deposit insurance assessment rates by 2 basis points for all insured depository institutions, effective in the first quarterly assessment period of 2023. percent by September 30, 2028.

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CFPB Monitor

MARCH 25, 2019

The California Department of Business Oversight (DBO) has filed an administrative enforcement action against a title lender for alleged violations of California law and launched an investigation into whether the interest rates charged by the lender are unconscionable. Transacting business from unlicensed locations.

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CA California Security 68