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Community Banks Debut FinTech Alliance

PYMNTS

Alloy’s Julieann Thurlow, CEO of Reading Cooperative Bank, said, “Community banks play a special role in the lives of our customers, but we don’t have the same IT and innovation budgets as the big banks to capitalize on that relationship.” Guidelines From The UK. and MarketInvoice.

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How to Practice Loan Pricing Discipline

South State Correspondent

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. Only about 20% of community banks (banks under $10Bn in assets) are using such a model.

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Managing Interest Rate Risk With a Bank Loan Term Sheet

South State Correspondent

An interest rate hedging strategy, specific hedge duration, amortization term, capital infusion covenants, and other loan structure requirements become more critical with higher leverage loans. debt yield, and the CRE capitalization (cap) rate is 7.00%. debt yield, and the CRE capitalization (cap) rate is 7.00%.

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Should You Adjust Loan Pricing Due To Rising Funding Costs?

South State Correspondent

Rising funding costs and decreasing liquidity at community banks are causing managers to change pricing methodology for new credits. We estimate that 25% to 50% of community banks have a policy requiring minimum yield or credit spreads for new commercial loans.

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Important Considerations When Growing the CRE Portfolio

Abrigo

In a survey of community banks and credit unions at the 2016 Sageworks Risk Management Summit, 42 percent of respondents said Commercial Real Estate, or CRE, lending was their primary focus for loan portfolio growth. This reflects a larger industry trend. For many, commercial real estate lending may be the ticket.

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Navigating Liquidity, Funding, and Return in the Paycheck Protection Program

Abrigo

PPP loans carry a 0% risk weighting, meaning they don’t count against the institution from a risk-based capital standpoint. Both Domine and another ICBA webinar panelist, Tommy Bates, President and CEO at Legends Bank, both said their respective banks would be making use of the facility.

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Reduce Credit Spreads to Increase Return

South State Correspondent

In last week’s article ( here ), we discussed why category and geographic diversification may be unfeasible for many community banks. We concluded that after a community bank sets limits on loan categories, the added benefit of geographic or loan category diversification is nullified.