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Examining industries: The importance of industry analysis for financial institutions

Abrigo

How industry analysis can improve your credit risk management Understanding your customers' businesses leads to better loan pricing, structure, and risk management. You might also like this webinar series, "Tackling common credit risk questions during challenging times." Are there many regulatory requirements?

Analysis 195
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The value of fair value: Credit union merger accounting requires a strong partner

Abrigo

Takeaway 2 Enterprise value goes beyond book value to include earning potential, market position, and intangible assets. Enterprise value, or the fair value of the acquired credit union, becomes the imputed “purchase price” of the transaction and acts as the baseline in the purchase price allocation exercise for goodwill determination.

Lending 195
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Solve This Problem with Your Strategic Horizon

South State Correspondent

Risk management also needs to change. Finding your bank tied to a rural area that is decreasing in size and profitable demographics is your bigger risk. This type of exercise is planning, not strategic planning. While their innovation labs were cutting edge, their management was not. Do you remember them?

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Food for Thought: A Policy on Credit Exceptions

Abrigo

Non-recourse loans While the bank historically has not experienced excessive levels of charge-offs due to loans not having one or more guarantors, there is considerable evidence to show that the options available to resolve a problem situation, as well as the costs incurred to exercise such options, are adversely affected by the lack of guarantees.

Policies 195
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A Masterclass in Bank Total Experience In One Graphic

South State Correspondent

The total experience is the product, the user’s journey with the product, the marketing/branding, and the interaction between the users and support staff. Leaders managing product teams or departments should keep these fundamentals top of mind when launching or improving a program. It is rarely the other way around. Build from there.

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How to Choose a Hedge Provider as a Bank

South State Correspondent

We compared and contrasted the two strategies and sized the market for community banks. Lending Discipline: Hedging programs make loan pricing more transparent and force bankers to exercise sensible pricing methodologies. We also shared a table that summarized the two strategies.

How To 195
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The Risk Your Asset/Liability Management Process Might Be Missing

Abrigo

ALM | 4 minute read Key Takeaways Many financial institutions view asset/liability management as a "check-the-box" regulatory exercise. An extreme focus on using ALM to manage the risk of rising rates means some FIs overlook using ALM to grow earnings and capital, putting them at risk of underperformance.