South State Correspondent

NOVEMBER 27, 2022

Banks can use the French Defense in deposit management. The French Deposit Management Defense. The French Deposit Defense stops a bank from executing a deposit promotion in a local market. First, it reinforces its training to its employees with a message that underscores the problem of marketing with rates.

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South State Correspondent

APRIL 4, 2024

These changes may occur swiftly, such as interest rate changes, inflation changes, or unemployment rate changes. However, the common thinking is that increasing federal government debt leads to higher interest rates over longer periods. As interest rates rise and remain higher, the value of deposits will grow.

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Risk Management Community Bank Policies Community 195

South State Correspondent

NOVEMBER 13, 2023

To do so, lenders must identify many criteria that borrowers will consider important, such as amortization term, credit spread, advance rate, credit support structure, prepayment options, credit portability options, etc. The personalized presentation can be tailored to specific borrowers, loan amounts, amortizations, and terms.

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Tools Online Marketing Community 195

South State Correspondent

JUNE 5, 2023

Community Bank Cost of Funds and Federal Reserve Cycles Historically, community bank cost of funds betas usually hit their highest point near the end of the rate-tightening cycles. This makes sense as COF lags behind Fed tightening, and deposit betas increase substantially as the Fed pauses and a bank’s cost of funds continues to grow.

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Community Bank Community Industry Strategy 195

Abrigo

OCTOBER 4, 2022

Financial institutions must plan to take advantage of rising rates. Several factors make this rising-rate environment different, so strong asset/liability management is critical for increased earnings. You might also like this checklist, "6 Reasons to update your core deposit analysis." 5 rate hikes. DOWNLOAD .

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Strategy eBook Security Management 195

South State Correspondent

MARCH 13, 2023

The abrupt collapse of Silicon Valley Bank (SVB) is a stunning example of bank leadership not understanding interest rate risk, running into trouble with an inverted yield curve, and ignoring the impact of a severe monetary correction on long-duration assets. in adjustment (9.2%) for interest rate risk movement.

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Risk Management Management Community Bank Community 221

South State Correspondent

JANUARY 4, 2023

A potential economic slowdown, slower rate rises, an inverted yield curve, and deposit stress likely make 2023 a trying year compared to 2022. Banks will need to balance these short-term challenges with longer-term strategic goals. Why “Growth” is Not on The List. Noticeably absent from the list below is growth.

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Community Bank Capital Training Lending 195

South State Correspondent

FEBRUARY 22, 2024

We do this in a few ways, but the most egregious and costly way is this: We make short-term strategic decisions to employ long-term capital. Compared to investments, loans, deposits, and fees, capital is magical when it comes to these properties. Professional athletes need a different product mix than homebuilders.

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How To Strategy Capital Lending 195

South State Correspondent

MAY 3, 2023

Bank executives that measure and manage the balance sheet based on the fair value of assets and liabilities invariable will change risk behavior, compensation structures, and capital allocation for the long-term benefit of shareholders. At its basic premise, FTP distributes banking profit between lending and deposits.

Lending 195

Lending Capital Management Tools 195

South State Correspondent

MAY 2, 2023

Bank executives that measure and manage the balance sheet based on the fair value of assets and liabilities invariable will change risk behavior, compensation structures, and capital allocation for the long-term benefit of shareholders. At its basic premise, FTP distributes banking profit between lending and deposits.

Lending 195

Lending Capital Management Tools 195

South State Correspondent

MAY 2, 2023

Bank executives that measure and manage the balance sheet based on the fair value of assets and liabilities invariable will change risk behavior, compensation structures, and capital allocation for the long-term benefit of shareholders. At its basic premise, FTP distributes banking profit between lending and deposits.

Lending 195

Lending Capital Management Tools 195

South State Correspondent

MARCH 19, 2024

In two previous articles ( here and here ) we discussed how loan size and loan term affect the profitability of commercial loans. In a future article we will discuss how community bankers may structure their commercial loan products to maximize cross-selling and upsell opportunities. In banking, those numbers are markedly different.

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South State Correspondent

AUGUST 8, 2022

The yield curve’s slope can provide insight into future interest rate changes and economic activity. However, for bankers, the critical dates on the yield curve are short-term rates (Fed Funds) and the ten-year rate. Over this period, the ten-year yield is, on average, 1.18% higher than the Fed Funds rate.

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Community Bank Community Marketing Strategy 195

Gonzobanker

NOVEMBER 30, 2023

To develop an effective, low-cost deposit growth strategy, take some tips from the high performers. Deposit retention and growth is strategic priority #1 in the banking industry today. But although financial institutions need a long-term strategy for a near-term challenge, playing the “rate game” is a race to the bottom.

Strategy 158

Strategy Industry Lending Marketing 158

South State Correspondent

JANUARY 2, 2024

How should lenders discuss interest rates in 2024, and what advice should relationship managers provide their clients about banking products? The average deposit expected life is seven years, the average commercial loan is four years, and the average expected life of a significant commercial banking relationship is almost 10 years.

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How To St. Louis Lending Marketing 195

South State Correspondent

MARCH 26, 2024

The bank is compensated by selling products, services, and especially insightful and targeted advice. Some banks state that they are relationship driven but inadvertently deliver risk-for-pay products. A small rural bank cannot provide trusted advice and needed products to General Motors (as an example).

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South State Correspondent

AUGUST 21, 2023

That publication was referenced in the media as a US bank rating action, with a downgrade to ten larger banks (and a negative outlook to 11 other larger banks). While most banks’ deposits were flat or down slightly, the mix of deposits changed – certificates of deposits (CDs) increased, and demand deposit accounts (DDA) decreased.

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Community Bank Community Capital Analysis 195

South State Correspondent

JANUARY 10, 2024

The Better Way to Calculate Value: Customers and Product If you lower deposit rates in this market, you will likely lose customers to competition that may be paying 5% or greater. All customers are not the same, nor are all products. The problem isn’t in the concept but in the process.

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Management Examples Marketing Millennials 195

Abrigo

JUNE 11, 2021

Measuring Interest Rate Risk Can Vary by Institution Interest rate risk measurement plays a key role in ensuring an institution's safety and soundness. Takeaway 1 Regulators stress sound risk management practices that include the ability to identify and measure interest rate risk (IRR). Interest rate risk measurement.

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How To Risk Management Analysis Kansas City 195

Abrigo

JANUARY 27, 2022

Higher Fed Rates Ahead: Plan Now to Manage Impact on Deposits The Fed's signal of higher interest rates reiterates the importance of financial institution ALM and deposit management strategies, policies, and programs. . Interest Rates. Tighter Fed policy puts ALM in focus. Depositor Behavior.

Strategy 195

Strategy Management Policies Lending 195

South State Correspondent

OCTOBER 10, 2022

FTP was introduced to banks in the early 1980s to help manage interest rate risk on a transactional basis. FTP was initially adopted to enable front-line business units to lay off interest rate risk in their loans and deposits to a central treasury function. Funds Transfer Pricing Framework.

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Community Bank Community Examples Management 195

South State Correspondent

OCTOBER 17, 2022

We defined an FTP framework, the regulatory recommendation for FTP, and how FTP allows community banks to make better decisions about balance sheet profit contribution (loans versus deposits). The CFO and CLO stated that after the last Fed meeting, the lenders were instructed to target a minimum 5.25% coupon on new loan production.

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How To Community Bank Community Capital 195

South State Correspondent

APRIL 10, 2023

Most agree that attempt to fair value certain financial instruments would still not approximate the settlement of that instrument between a motivated buyer and seller – for example, there are many unpredictable or unknown factors to be able to value instruments like loans and deposits.

Community Bank 195

Community Bank Community Security Capital 195

South State Correspondent

SEPTEMBER 6, 2023

We have discussed the importance of bundling or packaging deposit account services to speed up customer choices, increase profitability, and enhance deposit performance. In this article, we examine how behavioral deposit pricing works and how to use it to your bank’s advantage. to $4.8M, or an increase of 70%.

Marketing 195

Marketing Marketing Strategies Analytics Strategy 195

South State Correspondent

JUNE 13, 2023

Loan Pricing and Structuring Themes and Observations Given the concern over credit and lower deposit performance, many banks are choosing to shrink or, at least, control growth to below 5%. Unfortunately, floating-rate loans generally have conflicting outcomes. Better products create win/win outcomes for lenders and borrowers.

Marketing 195

Marketing Examples Capital Management 195

South State Correspondent

OCTOBER 4, 2022

The Federal Reserve Open Market Committee (FOMC) has raised short-term interest rates by 3.00% in the six months between March and September. We get paid to provide advice that benefits our customers instead of selling loans, treasury management, or deposit services. Example of Future Path of Interest Rates.

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How To Marketing Examples Community 195

Abrigo

JUNE 5, 2023

Data-driven decisions Banking management reports for today Financial institution executives are reporting increased or significant concerns about interest rates, credit risk, and liquidity – worries that only add to the number of figurative plates they are spinning. Core deposits should be assessed not only by deposit type (e.g.,

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Report Risk Management Capital Data 195

South State Correspondent

AUGUST 3, 2023

Seasoned bankers call it “The Distributor Tactic,” and it is a little-discussed technique used for ages in banking to speed up the sales cycle to land commercial bank deposits and treasury management accounts faster. A banks increase cross-sell, commercial bank deposits grow.

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Metro Data Management Marketing 195

South State Correspondent

SEPTEMBER 20, 2023

Putting Cash Management in Context It is no surprise that what makes a good cash management customer is a good deposit customer. We ranked the Top 20 Deposit-Rich Industries ( HERE ). As such, operating accounts have low-interest rate sensitivity. However, that is not purely the case. Of course, all things are rarely equal.

Management 195

Management Survey Industry Community Bank 195

South State Correspondent

AUGUST 8, 2022

Since everyone is watching deposits, let’s start there. As expected, 2Q was the first time we saw net deposit outflows in this cycle as the Fed reduced its balance sheet. Deposits decreased in our sample banks by 1.1%. Most deposits were lost at large banks and trust banks. Insights Based on 2Q Bank Earnings.

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Trends Community Bank Community Retail 195

South State Correspondent

OCTOBER 23, 2022

In the last 12 months, the Federal Reserve went from arguing that inflation was a transitory phenomenon to raising interest rates to fight runaway inflation by three percent in just six months. The result is not only higher rates but the most severe interest rate hiking cycle in the past 35 years – and it is not over yet.

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Community Bank Community Meeting Lending 221

Abrigo

FEBRUARY 14, 2024

Takeaway 3 CRE stress testing evaluates stressors such as interest rates and collateral values to help identify vulnerabilities and strategies for risk mitigation. This approach to managing commercial real estate risk prudently includes setting and periodically adjusting concentration limits for different products and markets.

Risk Management 195

Risk Management Management Lending Capital 195

Abrigo

SEPTEMBER 21, 2020

Key Takeaways Financial institution executives wondering about changes in their market value premiums might need to look at the assumption used for modeling deposit servicing costs. Like clockwork, in times of low interest rates, financial institution executives have questions regarding the changes in their market value results.

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Marketing Study Analysis Course 195

South State Correspondent

JUNE 9, 2022

The majority of fees generated by larger banks is related to deposit and loans – business lines that community banks already maintain. The hedge fee can vary from 50bps to about 3% of the loan amount, depending on the term, amortization, and market competition. Hedge fee income becomes even more profitable for banks.

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Community Bank Community Comparison Fintech 195

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. All other parameters (credit quality, spread, fee income, cross-sell opportunity, amortization, term) stayed the same. Larger loans have lower credit risk, all else equal.

Community Bank 195

Community Bank Community National Lending 195

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. All other parameters (credit quality, spread, fee income, cross-sell opportunity, amortization, term) stayed the same. Larger loans have lower credit risk, all else equal.

Community Bank 195

Community Bank Community National Lending 195

South State Correspondent

OCTOBER 9, 2023

In two articles in the past few weeks ( here and here ), we discussed how the “higher-for-longer” interest rate environment will affect the community bank sector – continued increase in the cost of funds (COF), steady yields on loans, and a decrease in net interest margin (NIM) will put severe pressure on ROE for new loan originations.

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Tools Community Bank Community Strategy 195