South State Correspondent

SEPTEMBER 4, 2023

We analyzed the loan performance (return on equity, loan yield, fee income, and loan size) of hedged borrowings in a large group of community banks and compared this to the community bank industry averages. This loan performance is a significant driver of profitability for this group of banks.

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South State Correspondent

SEPTEMBER 25, 2023

Given this new signal, community banks need to analyze what this interest rate environment means for their business model and how to maximize performance. The question is how will this interest rate development affect community banks’ performance, and what must community banks do to remain profitable?

Community Bank 195

Community Bank Community Industry Marketing 195

Perficient

MARCH 15, 2022

The Office of the Comptroller of the Currency (OCC) has released 11 Community Reinvestment Act (CRA) performance evaluations. This review process can take weeks for small banks and sometimes months for larger banks. This review process can take weeks for small banks and sometimes months for larger banks.

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Training Community Compliance Meeting 294

South State Correspondent

JANUARY 11, 2023

In a previous article ( HERE ), we analyzed industry performance and demonstrated that the average five-year net interest margin (NIM) and return on assets (ROA) are unrelated. This lack of connection has been a general observation in the banking industry for decades. Why is NIM Not Predictive of ROA.

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Community Bank Community Analysis Industry 195

Perficient

JULY 27, 2023

The Community Reinvestment Act (CRA) is a federal law in the US that promotes the interest of financial service firms to serve their communities’ credit needs, including low- and moderate-income neighborhoods. New businesses like digital startups are also gaining more attention than traditional brick-and-mortar businesses.

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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. Unfortunately, this is both incorrect and often leads to bank underperformance. Many banks target profitable commercial clients.

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How To Community Bank Community Management 195

South State Correspondent

AUGUST 10, 2015

Here is our quarterly report on banking industry trends and insights ( HERE ). In a nutshell, banking improved by most measures as the average bank became more profitable. In a somewhat rare occurrence, lending got safer, yet loan pricing on new production improved.

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Community Bank Community Lending Trends 150

South State Correspondent

MAY 14, 2015

In order to give you the most current perspective on our banking industry, we have compiled the latest data and have attached a complete presentation at the bottom of this blog post.

Community Bank 150

Community Bank Community Industry Data 150

South State Correspondent

MARCH 19, 2024

We continue this theme of major drivers of loan and bank profitability and discuss the importance of cross-selling and upselling, and its impact on bank performance. In a future article we will discuss how community bankers may structure their commercial loan products to maximize cross-selling and upsell opportunities.

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Community Bank Community Industry Cards 195

South State Correspondent

JULY 30, 2023

The banking industry’s return on equity (ROE) was 14.42% as of Q1/23 and so far is looking materially lower for Q2/23. How should community banks target and compare their ROE to the industry and their peer group, and what defines a top-performing bank? Community banks (assets under $10B) composed 14.3%

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Community Bank Community Capital Policies 195

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. We argued that community banks must learn to improve performance in a low-growth environment for the foreseeable future.

Community Bank 195

Community Bank Community Capital Comparison 195

South State Correspondent

JUNE 30, 2023

Many banks pride themselves on superior customer service, and approximately 90% of all community banks believe that they provide an above-average level of customer service (the math cannot work that way). There are several ways for bank managers to address this issue and better align relationship pricing with bank profitability.

Resources 195

Resources Community Bank Capital Community 195

Perficient

JULY 7, 2021

The Office of the Comptroller of the Currency (OCC) has released 16 Community Reinvestment Act (CRA) performance evaluations. The full list is included below, by type of examination from largest to smallest bank, and within that, by CRA Rating. Large Bank. Guaranty Bank & Trust, National Association.

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National Texas Tennessee CA 309

South State Correspondent

JANUARY 3, 2023

Despite reaching the highest profitability in over a decade in 2022, US banks overall trade at a discount to other sectors as measured by P/E or P/Book, and approximately 53% of US banks have earned less than their cost of equity over the last five years. Data Visualization and Bank Profitability.

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Community Bank Community Data Marketing 221

South State Correspondent

APRIL 19, 2023

Focusing on uninsured deposit performance is a hot topic among investors, analysts, and regulators. While every bank is now tracking the general metric, only a few banks monitor deposit performance in the category. That is a mistake, as this segment is likely the segment where you can quickly improve deposit performance.

How To 195

How To Examples Resources Community Bank 195

Perficient

APRIL 26, 2021

The Office of the Comptroller of the Currency (OCC) has released 15 Community Reinvestment Act (CRA) performance evaluations. Reviews, which can take weeks, assess an institution’s performance in helping to meet the credit needs of communities, including those of low or moderate income within its assessment area.

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Community Wichita Tulsa National 294

South State Correspondent

JUNE 5, 2023

Community bank cost of funds is jumping up. As shown in the graph below, the net interest margin (NIM) for community banks declined 22bps in Q1’23. The question is – what will happen to community bank’s cost of funds from here? There are a few key takeaways.

Community Bank 195

Community Bank Community Industry Strategy 195

South State Correspondent

FEBRUARY 20, 2023

Community bankers need to understand their competitive landscape. Who the competition is, what the lending competition is offering, their delivery channels, and service levels can help community banks differentiate their services and enhance their competitive advantage.

National 195

National Lending How To Community Bank 195

Independent Banker

APRIL 30, 2022

Independent Banker’s annual listing top-performing community banks of 2021 alongside interviews with some of the winners. In true community bank fashion, each has its own story to tell and its own path to success. In true community bank fashion, each has its own story to tell and its own path to success.

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Community Bank Community Montana Taxes 172

Abrigo

JANUARY 17, 2024

Human trafficking red flags, strategies, and support Human trafficking is more prevalent than most realize, and banks and credit unions can help prevent it. Takeaway 2 AML staff should recognize human trafficking red flags and know their customers well to help detect suspicious activity in their communities. and worldwide.

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Training Community Software Texas 259

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 Fed Hike will send seven waves toward banks. has been exceedingly loose.

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Community Bank Policies Community Marketing 359

South State Correspondent

MARCH 28, 2023

In a recent article ( here ), we discussed why banks that take risks to earn higher revenue demonstrate lower performance as measured by ROA. Empirical evidence, historical bank failures, and common sense teach us that many risks do not translate to higher yields. However, success does not occur by happenchance.

Community Bank 195

Community Bank Community Management Marketing 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.

Lending 195

Lending Community Bank Community Comparison 195

South State Correspondent

OCTOBER 18, 2023

Grid-based pricing is typically used to set the applicable margin of a loan based on specific performance measures, such as credit rating or cash flow coverage. Community banks can maximize profit and increase loan balances using innovative grid-based pricing for their commercial clients.

Community Bank 195

Community Bank Community Industry Operations 195

Abrigo

MARCH 14, 2024

Strengthening customer relationships with tangible value and personal touch Customer retention in banking can be challenging for community financial institutions. Takeaway 3 Proactive customer retention also demonstrates banks' commitment to their customers' success and adds value to their services.

Lending 195

Lending Strategy Community Software 195

South State Correspondent

MARCH 30, 2022

Community banks pride themselves on superior customer service. Approximately 90% of all community banks believe that they provide an above-average level of customer service (of course, the math cannot work that way, as half of all banks should be providing a below-average level of customer service).

Community Bank 195

Community Bank Resources Community Regional 195

Independent Banker

APRIL 30, 2022

Focusing on the ‘whys’ helps employees see how decisions fit together in a perfect puzzle for high-performing success, and it motivates them to be contributors to that success. In community banking, we’re not ones to rest on our laurels. My dad went to banking school, and I was given the opportunity when the time came.

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Community Bank Community Knowledge Base Leadership 171

Perficient

AUGUST 9, 2022

The financial services industry must consider its customer experience game while also grappling with a sense of distrust from many communities due to systematic barriers, maintaining utmost accessibility due to the essentiality of the business, and the lack of financial literacy across the country. Trust and Transparency. .

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Community Customer Experience ATM Examples 275

South State Correspondent

DECEMBER 13, 2023

While the Fed’s current actions on QT have been deemed long-term, slow-moving, and compared to watching paint dry, after years of QT, the impact is real and is affecting money supply and bank’s cost of funding (COF). Bankers must understand the relationship between money supply and their bank’s COF.

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Community Bank Community Policies Tools 195

South State Correspondent

FEBRUARY 29, 2024

Since our last update on pricing and credit HERE , commercial loan pricing trends for the first quarter of 2024 continue to be driven by the perceived increase in credit risk, tighter credit supply and banks’ need for wider margins. percentage points bringing forward looking LGD to 44% of the average community bank loan amount.

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Trends Community Bank Community United States 195

Independent Banker

FEBRUARY 28, 2022

That’s why we’ve spent the past three years educating community bankers on the why of innovation: why bankers should be thinking about innovation, why innovation is a top priority in a digital-first environment and why now is the time to act. Performance marketing. Finding the right marketing partner.

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Community Bank Community Innovation Tools 148

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?

How To 195

How To Strategy Capital Lending 195

South State Correspondent

NOVEMBER 7, 2022

” That same adjustment can be applied to banks’ fixed-rate loans for economic value analysis to better understand value creation and allocation, prioritize future business activity, and better deploy capital. Banks had enough liquidity so it didn’t really matter in terms of day-to-day operations. Today’s Environment.

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Marketing Community Bank Community Security 195

South State Correspondent

AUGUST 8, 2022

With 100+ public banks reporting, we have more than a representative sample to see 2Q 2022 bank earnings trends and derive some operational insights on bank performance. In this article, we put some data behind the trends and provide optimal targets to help you run your bank more successfully. Methodology.

Trends 195

Trends Community Bank Community Retail 195

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). Why Banks Should Take Notice.

Community Bank 195

Community Bank Community Marketing Regional 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 ).

Community Bank 195

Community Bank Community Analysis Industry 195

South State Correspondent

FEBRUARY 9, 2015

In order to give you the most current perspective on our banking industry, we have compiled the latest data and have attached a complete presentation at the bottom of this blog post. In short, we should have issued this last week on Groundhog day, as fourth quarter performance was largely similar to third quarter’s performance.

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Industry Community Bank Community Data 150