Independent Banker

NOVEMBER 30, 2022

Clockwise from top left: Grand Ridge National Bank, Wheaton, Ill.; Community Financial Services Bank, Benton, Ky.; Bank of Montana, Missoula, Mont.; CNB Bank, Berkeley Springs, W.Va.; Midwest Bank, Norfolk, Neb. Can Bank of Montana’s success be replicated? Grand Ridge National Bank.

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Community Bank Community Montana Leadership 169

South State Correspondent

MARCH 5, 2024

Several measurable factors drive loan (and, by extension, bank) profitability, including loan size, credit quality, term, cross-sell, and upsell. In this article, we will consider how and why loan size is one of the most significant drivers of profitability for community banks and what community banks can do to improve performance.

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South State Correspondent

MARCH 5, 2024

Several measurable factors drive loan (and, by extension, bank) profitability, including loan size, credit quality, term, cross-sell, and upsell. In this article, we will consider how and why loan size is one of the most significant drivers of profitability for community banks and what community banks can do to improve performance.

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Independent Banker

JUNE 30, 2022

But there are ways community banks can help mortgage-seekers get on the property ladder. year-over-year increase in the first quarter of 2022, according to the National Association of Realtors (NAR). Younger millennials and Gen Z buyers—those born after 1980—represent 45% of the total homebuyer market. Click to enlarge.

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Independent Banker

NOVEMBER 30, 2021

We asked both leaders and staffers to tell us what makes their community banks stand out as employers. Key Community Bank: Leading by example. Key Community Bank. At the heart of Key Community Bank’s work culture is connection. Greg Dennis, Key Community Bank. “We

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PYMNTS

JANUARY 31, 2019

is set to see its first new community bank in decades, as the Federal Deposit Insurance Corporation (FDIC) lent its approval for MOXY Bank to launch in Washington, D.C. With clearance to move forward with its plans, the community banking landscape will see its first new industry player in years.

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Jeff For Banks

JANUARY 14, 2021

In June of 2008 I gave a speech titled "The Death of the Community Bank" and in that speech I made predictions. Prediction: The General Bank will become extinct. Much like competitors nip at community banks' customers. Eighteen percent of that group opened an account at a digital bank. Result: Mixed.

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South State Correspondent

JANUARY 25, 2024

Forward Rate Lock Tools National lenders have been using locks for decades, and these instruments can take many forms. If rates rise, the bank eats this cost often not knowing that there is a negative mark-to-market value on the loan from Day One. Community banks also offer forwards to poach customers from other banks.

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Abrigo

SEPTEMBER 16, 2019

Community bankers are largely positive about the future, based on the first results of a new index gauging business sentiment among the financial professionals who serve a critical role in local economies. These insights have the potential to inform the market and policy makers on the overall health of the economy, opportunities, and risk.”.

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Independent Banker

DECEMBER 31, 2021

Independent Banker ’s annual Community Bank CEO Outlook survey reveals how community bank leaders plan to leverage today’s deposit-laden banking environment to grow this year. Janet Silveria, Community Bank of Santa Maria. So, what’s at the top of community bank leaders’ to-do lists?

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Community Bank Community Lending Louisiana 144

PYMNTS

APRIL 12, 2019

Community banks are voicing their frustration with what they say is a lack of competition in the market for corporate bank technology providers, reports in The Wall Street Journal said Thursday (April 11). Community banks say their services are often too expensive and can sometimes be delayed.

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South State Correspondent

APRIL 15, 2024

As usual, it was full of insight that every community banker should consider. Our focus is on information that pertains to the community banking industry. This may lead to stickier inflation and higher interest rates versus market expectations. Bank leaders must obtain knowledge in person.

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PYMNTS

MARCH 15, 2019

Community bank Patriot National has hit a regulatory roadblock in its plans to launch a Small Business Administrative platform, but reports in American Banker on Thursday (March 13) said the financial institution remains undeterred by the challenge. Hana is one of the largest SBA lenders, facilitating $96.6

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ABA Community Banking

SEPTEMBER 8, 2021

Banks of all sizes are hearing from many customers that they want exposure to the fast-growing but volatile cryptocurrency market. Vast Bank recently became the first nationally chartered, FDIC-insured bank to offer crypto banking.

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South State Correspondent

NOVEMBER 29, 2023

One of the lessons that was driven home at the recent American Banker Small Business Banking Conference in Nashville was the difference in marketing between large national banks and community banks, particularly deposit marketing. Many banks fall into the “recency trap.”

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South State Correspondent

JANUARY 16, 2024

With the development of the term SOFR market, BSBY offers no perceived advantages over SOFR, Fed Funds, or Prime. BSBY was not well received by US regulators from its inception, but the market eventually embraced SOFR over BSBY. Historically, community banks have hesitated to adopt derivatives for several reasons.

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South State Correspondent

JUNE 21, 2022

This decision coincided with rate hikes by the Swiss National Bank, its first since 2007, the Bank of England, and the European Central Bank announced at an emergency meeting that they would raise interest rates next month and again in September. The market, however, expects a higher year-end Fed Funds rate at 3.65%.

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Community Bank Policies Community Marketing 359

PYMNTS

JANUARY 9, 2018

With big banks pulling back from small and medium-sized business (SMB) lending in the wake of the global financial crisis, the market was ripe for someone else to fill the credit gap. Community banks approved 49 percent of SMB loan applications in November, according to the latest data from the Biz2Credit Small Business Lending Index.

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Community Bank Community Fintech Lending 131

South State Correspondent

APRIL 4, 2024

Furthermore, high federal government debt does not just lead to higher interest rates but also poses economic, national security, and social challenges. Federal Debt – Impact Banking The path of the federal debt is already changing economic and public dynamics. With time, these changes will only amplify.

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Risk Management Community Bank Policies Community 195

South State Correspondent

FEBRUARY 27, 2024

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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How To Community Bank Community Management 195

South State Correspondent

FEBRUARY 18, 2024

We recently reviewed a loan term sheet from a national bank for a $13mm commercial real estate (CRE) loan. The bank offered a 25-year amortizing loan with a ten-year term and required the borrower to hedge its interest rate risk. The borrower was provided options on the type of hedge and when to execute.

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Management National Guidelines Capital 195

South State Correspondent

APRIL 18, 2022

Historically, community banks have relied on net interest margin (NIM) instead of fee income to drive return on equity (ROE). In contrast, larger banks have emphasized non-interest income rather than NIM to boost ROE and revenue. Larger banks have historically operated on thinner NIM but higher fee income.

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Abrigo

JANUARY 22, 2015

According to a recent survey from four Federal Reserve Banks, small regional and community banks have the highest approval rate for small business loans. The 2014 Small Business Credit Survey was a joint operation conducted by the Federal Reserve Banks of New York, Atlanta, Cleveland and Philadelphia.

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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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How To Community Bank Community FDIC 195

South State Correspondent

JUNE 9, 2022

Many community banks are searching for ways to increase fee income, and many bank CEOs have concluded that fee income is a significant driver of revenue and profitability. We argue that larger banks do not have an inherent advantage over community banks in generating fee income because of their scale.

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Community Bank Community Comparison Fintech 195

South State Correspondent

MAY 18, 2022

In two recent articles, we reviewed the banking industry’s deposit behavior with regard to cost of funding earning assets (COF) ( HERE ), and we compared how community banks’ COF behaves relative to national banks in a rising interest rate cycle ( HERE ).

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Community Bank Community Analysis Industry 195

South State Correspondent

JULY 10, 2023

One possible solution to this dichotomy is for banks to offer interest rate swaps to hedge individual loans. This article will review domestic banks’ adoption of interest rate swaps. Next week’s article will consider the challenges and possible solutions for community banks to adopt loan hedging programs.

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Community Bank Community Tools Management 195

Jeff For Banks

MARCH 21, 2024

Our lives changed forever from this whole experience of the government’s declaration of a national emergency, leading to forced shutdowns of businesses and schools, mandated mask wearing, forcing 6-foot distances between people, travel restrictions, fear mongering with case and death counts, and forced vaccines/boosters. Here's a rant.

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Marketing Policies Report Atlanta 148

South State Correspondent

FEBRUARY 20, 2022

Community banks refine their products and services to compete for better borrowing relationships – the better borrowing relationships are associated with better credit quality, meaningful cross-sell opportunities, acceptable margins and fee income, and higher return on equity (ROE). Using Loan Maturity as Differentiation.

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PYMNTS

JULY 15, 2016

Small community banks may not have the ample resources that Wells Fargo or Bank of America have to develop high-tech, experimental solutions internally. At least, Seacoast Bank VP and Digital Project Manager Jeff Lee and CEO Denny Hudson believe so. ” Florida-based Seacoast Bank has $3.5

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Community Bank Community Lending Florida 100

South State Correspondent

APRIL 24, 2022

Banks have ceased using LIBOR to price assets and liabilities after 2021. However, some community banks are still deciding on the correct term lending index to adopt. Many banks are uncertain that they have chosen the best term index for their products and markets. Robustness/Volume. Validity. Representative.

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Lending Community Bank Community Marketing 195

South State Correspondent

AUGUST 22, 2023

Part of this ROE value is driven by an average beta of 9 for a TM customer compared to an average beta of 50-60 for a money market or other interest-bearing deposit account. This likely creates the most significant single profitability lift for any bank. Despite these statistics, only a handful of banks currently purchase that term.

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Management Community Bank Survey Community 195

South State Correspondent

MAY 9, 2022

In our previous article ( HERE ), we reviewed the banking industry’s cost of funding earning assets (COF), and we compared how community banks’ COF behaves relative to national banks in a rising interest rate cycle. Influences on Deposit Beta. days of abundant liquidity are expected to be behind us.

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Abrigo

APRIL 28, 2016

Small Business Administration What creates two out of three net new American jobs; produces close to half of our nation’s goods and services (nonfarm private GDP); and can be found, coast to coast, in every small town, big city and rural enclave? Tune in all week for live-streaming , beginning at 7:30 p.m. Every business starts small.

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South State Correspondent

APRIL 10, 2023

Fair value accounting measures assets and liabilities at current market value instead of historical or amortized value. Nonetheless, with the recent collapse of sizeable regional banks, regulators, investors, analysts, accountants, and bankers are now scrutinizing the fair value of banks’ securities and loan portfolios.

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The Financial Brand

AUGUST 31, 2020

Building innovation on a basic bank chassis to produce fresh growth and expansion means venturing beyond your institution's comfort zone. The post Taking a Community Bank National Demands a Niche and a Strategy appeared first on The Financial Brand.

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Community Bank National Strategy Community 32

PYMNTS

FEBRUARY 19, 2019

.” Other critics have raised the issue that the OCC is advising examiners to take community group concerns into consideration separately from their M&A approval processes. ” Now, Powell is also raising concerns about how bank industry consolidation could negatively impact the small business community.

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