Capital Community Exercises National 
South State Correspondent
FEBRUARY 22, 2024
Banks consistently produce under their cost of capital. For example, at present, return on equity performance is about 12% for the average community bank. However, for the average bank, their cost of capital is between 9% and 14% depending on the bank’s equity liquidity with an average of 12.5%. Why is that? is step one.
South State Correspondent
AUGUST 21, 2022
Last week we wrote about loan-level vs. balance sheet hedging for community banks and provided our loan proposal generator ( HERE ). We compared and contrasted the two strategies and sized the market for community banks. A community bank may transact one or only a few balance sheet hedges over many years.
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Abrigo
MAY 8, 2015
In recent months, the momentum around reducing the regulatory burden on the nation’s community banks has continued to gain steam. However, the regulatory landscape continues to evolve, leaving resource-constrained community banks to cope with new demands. The second idea is community bank exemption from the Volcker Rule.
South State Correspondent
MARCH 15, 2023
It turns out that confidence is more valuable than capital. The ratio would provide a bank’s current core capital position to risk-adjusted assets. Some form of this ratio will likely be applied to the national and regional banks, which means larger community banks will also be judged by this ratio.
Abrigo
MARCH 25, 2020
Regulators also announced other guidance tied to reporting and risk-based capital rules. Garver Moore, Managing Director of Abrigo Advisory Services, said the regulators’ statement provided helpful communication for community financial institutions and their borrowers and members during the responsive phase of the pandemic.
South State Correspondent
MAY 31, 2023
Likely, it might be a combination of the above, but setting a branching strategy should dictate capital allocation, branch layout, marketing, and staffing. Banks should have a clear and stated set of measurable objectives for their branches and then allocate capital accordingly. Our point here is branching isn’t a passive activity.
Abrigo
OCTOBER 9, 2019
In a recent survey by the National Association for Business Economics, 74% of economists who responded expect a recession by the end of 2021. Stress testing gives an institution a serious look into their capital and reserves, and if they possess enough of each to remain viable, should a recession hit.
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