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Study: Construction loan monitoring decreases loan defaults

Abrigo

Monitoring construction loans improves outcomes, study finds. Takeaway 1 "Bank Monitoring with On-Site Inspections" will be presented later this month and claims to be the first empirical study of bank monitoring within non-syndicated loans. .

Study 195
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Bank ROE – What Should Be Your Bank’s Target?

South State Correspondent

How should community banks target and compare their ROE to the industry and their peer group, and what defines a top-performing bank? Most importantly, is there an ROE level ensuring a bank remains long-term independent and healthy? Bank ROE Historical Performance Total assets for all FDIC-insured institutions was $23.7T

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The Growing Concern With Your Cost of Funds

South State Correspondent

The banking industry’s cost of funds (COF) is highly correlated to short-term interest rates. However, as of Q2/22, the average community bank’s COF has risen only a few basis points. The COF over the past five quarters is shown for three asset peer groups: banks under $1B (3.5k using that six-month lag.

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The Future of Noninterest Income at Financial Institutions

Abrigo

Takeaway 3 Community banks have seen less volatility in noninterest income, and many are still eyeing growth across the category. Noninterest income associated with the housing markets such as securitization, trading, and real estate slowed significantly during the financial crisis and beyond. Community banks target growth.

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Compliance burdens: Reducing bank products and services

Abrigo

The ABA’s 2015 Survey of Bank Compliance Officers , conducted February through March 2015, had participation from more than 450 financial institutions, with almost 80 percent being community banks. ABA president and CEO, Frank Keating, commented that Dodd-Frank has impacted banks, their customers and the communities they serve.

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Why banking technology makes sense – recession or not

Abrigo

Experts have highlighted numerous lessons from Southwest’s experience, many of which can benefit bank and credit union executives, regardless of their institution size, as they manage competing priorities for spending and growth initiatives on banking solutions.

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Why Branch Building (Sometimes) Makes Sense

Celent Banking

A more surgical analysis considering market-specific shopping trends tells a different story – and justifies the build. In retail banking, everyone knows branch footfall has been in decline along with teller transaction volumes – and everyone knows why. Source: FDIC, Celent analysis.

Study 125