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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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). Empirical evidence, historical bank failures, and common sense teach us that many risks do not translate to higher yields.

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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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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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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. Contact us today!

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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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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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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. This conclusion is not a surprise to us. Some borrowers believe that interest rates will fall because a recession is approaching. This is an anchoring problem.

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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.

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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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South State Correspondent

NOVEMBER 2, 2022

This week the FOMC increased the Fed Funds rate by 75 bps, as expected to the 3.75% to 4.00% target range. The Effective Fed Funds rate jumped up and should stabilize at 3.83%, as did the 1-month term SOFR, to 3.79%. Therefore bankers will make more net interest margin (NIM) on adjustable-rate loans than on fixed-rate loans.

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Perficient

FEBRUARY 25, 2021

Once you access your data, how do you leverage that data to drive business forward? And don’t forget to subscribe, rate and review! If you are interested in learning more about Perficient’s Commerce services capabilities or would like to contact us, click here. Connect with the Host and Guest. LinkedIn | Perficient.

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Perficient

FEBRUARY 25, 2021

It’s important for businesses to have a good data strategy and data scientists in order to take full advantage of all the benefits your data can offer. And don’t forget to subscribe, rate and review! If you are interested in learning more about Perficient’s Big Data services capabilities or would like to contact us, click here.

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South State Correspondent

AUGUST 31, 2022

The second way is to scan the document, use object character recognition and then query the document for specific data. The problem is that the error rate will be high unless you are familiar with the document’s structure. Most good platforms provide an extractable “confidence score” that rates the data intelligence job.

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South State Correspondent

MAY 3, 2023

We argued that valuing assets at historical value or measuring net interest margin (NIM) is not only a static view of cash flow but also backward-looking. FTP measures interest rate, credit, and liquidity risk and enables costs to be transferred from central treasury functions to the bank’s products and business lines.

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South State Correspondent

MAY 2, 2023

We argued that valuing assets at historical value or measuring net interest margin (NIM) is not only a static view of cash flow but also backward-looking. FTP measures interest rate, credit, and liquidity risk and enables costs to be transferred from central treasury functions to the bank’s products and business lines.

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South State Correspondent

MAY 2, 2023

We argued that valuing assets at historical value or measuring net interest margin (NIM) is not only a static view of cash flow but also backward-looking. FTP measures interest rate, credit, and liquidity risk and enables costs to be transferred from central treasury functions to the bank’s products and business lines.

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The Banker

MAY 28, 2021

Trillions of pounds of business migrated out of the City of London in March, according to Deloitte and IHS Markit [from Global Risk Regulator ].

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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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South State Correspondent

OCTOBER 17, 2022

In this article, we look at using FTP attribution to better understand lending profitability. We will decompose net interest margin’s (NIM) contribution using a FTP framework for a specific loan and demonstrate how FTP allows community banks to measure the profit contribution of deposits versus loans.

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South State Correspondent

JULY 17, 2022

The Federal Reserve is rapidly changing the interest rate environment to fight inflation. The Fed’s actions are forcing lenders and borrowers to consider ways to protect cash flow, credit, liquidity, and interest rate risks. A floor is an instrument that determines how low-interest rates can fall.

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South State Correspondent

FEBRUARY 20, 2022

How The Interest Rate Environment Impacts Loan Maturity. The current US yield curve is flat between three and 30 years. The graph below shows hedge rates from one to 30 years (Treasury rates show a similar flat curve). Many lenders in the market readily offer commercial fixed-rate loans for up to five years.

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South State Correspondent

APRIL 30, 2022

Based on the futures market, the Federal Reserve is expected to raise the Fed Funds rate to 3.00% at its December 2022 meeting. In future articles, we will explain our modeling for community banks’ COF based on inflation, Fed Funds rates, consumer consumption and the Fed’s balance sheet runoff. Future Short-term Rates.

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Abrigo

OCTOBER 21, 2021

With a Fed Rate Hike Looming, Here's How to Position Your Bank or CU The timing of a rate hike by the Fed is uncertain, but credit unions and banks can act now to create increased earnings more quickly. Options for Using Excess Liquidity DOWNLOAD . Factors playing into inaction on Fed rate hike.

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South State Correspondent

SEPTEMBER 27, 2023

That level of passivity will likely cause us to lose 75+ banks during the next downturn. The Elevation of Loan Portfolio Risk Sometimes, when rates are low after a recession, it’s a “risk on” strategy for banks. Many banks, unfortunately, made adjustable-rate loans that typically look like a five-year reset on a 10Y loan.

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South State Correspondent

MARCH 16, 2022

While many lenders are good at gathering new business, they may lack the experience to create optimal mutual value. Many community banks will market their fixed rate loans based on the simplicity of the prepayment provision, and this starts by understanding the value that each provision creates. Step 2: Align Interest Rate View .

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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). Conclusion.

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Perficient

DECEMBER 27, 2023

As for rising interest rates, banks may experience an increase in relief requests under the Servicemembers Civil Relief Act , particularly for adjustable-rate credit products. Contact us today to discuss in depth how we can help tackle your business challenges.

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South State Correspondent

MARCH 28, 2023

Empirical evidence, historical bank failures, and common sense teach us that many risks do not translate to higher yields. While in that blog, we specifically considered the risk-return tradeoff for credit risk; in a future article, we’ll consider interest rate risk.

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South State Correspondent

AUGUST 31, 2020

It is around this time before a presidential election that bankers start to ponder how the results of the election will affect credit, interest rates, and the general business environment. The complex and intertwined US capitalist economy goes through boom-and-bust cycles independent of any president’s actions.

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Perficient

MARCH 23, 2021

This pattern is further confirmed when we compare the bounce rate for desktop versus mobile devices: As expected, we see higher bounce rates on mobile devices. Interestingly, tablet page views per visit are higher than mobile devices (but lower than desktop), likely because tablets are heavily used for reading and entertainment.

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Abrigo

JANUARY 19, 2022

How to Price Loans Effectively Effective loan pricing is more imperative than ever for financial institutions, given the outlook on interest rates and other factors. . Takeaway 1 Bankers might have hoped the close of 2021 would bring an end to the challenging rate environment and low yields. . Loan Pricing Essential.

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BankBazaar

MARCH 28, 2023

R epo rate, w e think we know all about it , but not enough. So, here’s us shining a light or rather charging a flamethrower on some very interestin g facts about it. In short, it’s a busy body and that’s exactly why you never got to open that savings account with RBI! We know a lot about the Reserve Bank of India (RBI).

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Perficient

JULY 11, 2022

It only offers one loan option, which is a zero-interest loan paid in four equal installments over six weeks. It has an interest rate of 0% but does charge an $8 fee, or fee of 25% of the transaction (whichever is less) for late payments. Affirm is offered at hundreds of businesses, including Expedia, Neiman Marcus, and Lowe’s.

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South State Correspondent

APRIL 18, 2023

Empirical evidence, historical bank failures, and common sense teach us that many risks do not translate to higher yields. We analyzed why pay-for-risk does not lead to higher performance, whether that risk is credit or interest rate risk. Today, we look at the value of concentric relationship building.

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Perficient

MARCH 3, 2022

Federal bank regulators work together to design Comprehensive Capital Analysis and Review (“CCAR”) stress tests that are designed to ensure that even in the case of a severe recession, significant banks can lend to households and businesses. The scenario includes increases in interest rates. at the end of the scenario.

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PYMNTS

JANUARY 24, 2021

private businesses reported that 2021 is off to a good start overall, but signs of inflation are on the rise, and the jobs market outlook is somewhat gloomy, according to a press release from research firm IHS Markit. Services Business Activity Index is 57.5, Operators of U.S. Composite Output Index is 58, up from 55.3 up from 54.8

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