South State Correspondent

JANUARY 22, 2023

In a previous article ( here ), we discussed why commercial loan prepayment protection would be a critical return on asset (ROA) driver for community banks in 2023. In today’s credit environment, most quality borrowers have near-equal access to capital from multiple lenders. This cost to the bank is shown in the graph below.

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Jeff For Banks

DECEMBER 10, 2023

Total return includes two components: capital appreciation and dividends. As a point of reference, the S&P US BMI Bank Total Return Index for the five years ended December 7, 2023 was 23.32%. Communities First Financial Corporation (Now FFB Bancorp) (OTCQX: FFBB) #2. Coastal Financial Corporation (Nasdaq: CCB) #3.

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Abrigo

NOVEMBER 13, 2024

Businesses' working capital cycles are longer. In conversations with community banks and credit unions across the country, we’re hearing about a significant increase in line utilization, raising questions about both liquidity and credit risk. Companies need more working capital, but they’re still paying their suppliers as they should.

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Independent Banker

DECEMBER 31, 2022

We recently spoke with community bank CEOs from across the country to gain insights on how they’re proactively positioning to manage risks and take advantage of growth opportunities in the coming year. Following some respite in 2022, community bankers are bracing for a tougher economic landscape ahead in 2023. Koger Propst.

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Abrigo

NOVEMBER 9, 2022

Financial institutions work to meet Q1 2023 CECL deadline A CECL implementation survey by Abrigo found progress by financial instittuions is mixed ahead of the upcoming deadline. . In many cases, financial institutions adopting CECL for the 2023 deadline are tracking ahead of where SEC registrants were as they faced a 2020 deadline.

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Independent Banker

FEBRUARY 28, 2023

wanted to be a financier before finding his way to community banking. Photo by Harold Daniels Derek Williams, president and CEO of Century Bank & Trust in Georgia, is bringing his passion for community banking to his term as ICBA chairman for 2023/24. That love of community has defined his career.

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South State Correspondent

JUNE 13, 2023

When interest rates rise, lenders struggle to manage revenue and economic capital; when rates fall, borrowers can commonly refinance the debt at lower rates. Borrowers are not capital market experts and need to understand what the market is forecasting – even though the market may be wrong in its forecast.

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Abrigo

AUGUST 30, 2024

Prepare now for potential changes to FHLBs Capital rules and membership criteria are among the areas where banks could see changes in how the Federal Home Loan Bank system operates. Capital rules and membership criteria are among the areas where banks could see changes.

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South State Correspondent

OCTOBER 26, 2023

The catalyst was likely a panel led by the CEO of Taktile (AI Underwriting), a Partner from Bain Capital, a partner for Andreessen Horowitz, the chief data scientist from Branch International (digital banking fintech for India and Africa), and a tech correspondent for CNBC. You have never heard so many intelligent people sound not so smart.

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South State Correspondent

JULY 30, 2023

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% Community banks (assets under $10B) composed 14.3% The graph below shows the quarterly ROE for all community banks from 1984 to Q1/2023.

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South State Correspondent

SEPTEMBER 25, 2023

On September 20, 2023, the Federal Open Market Committee (FOMC) left its benchmark rate unchanged, but it would be a mistake to conclude that the committee did not send a strong message about the projected path of future interest rates. in 2023 and slightly higher in 2024.

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Gonzobanker

FEBRUARY 8, 2023

Fintech startups looking for funding in 2023 are finding that it isn’t as easy as it was a few years ago. Community Banks as Venture Capitalists In fact, not all providers of venture capital are venture capitalists. That figure is expected to grow by about a third to roughly $4 million in 2023. totaled $3.9

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Abrigo

DECEMBER 22, 2023

The most-read lending & credit blogs in 2023 Probability of default, CECL model validation, and stress testing were among Abrigo's top blogs on ALM, CECL, and portfolio risk this year. download NOW Takeaway 1 The most popular blog posts on the Abrigo site reflect many of the priorities community banks and credit unions had in 2023.

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South State Correspondent

AUGUST 21, 2023

Earlier this month, on August 7, 2023, Moody’s Investor Services (“Moody’s”) published a banking sector review. However, that publication, directly and indirectly, identified three discrete risks affecting community banks. We will outline what we think community bankers should glean from this publication.

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Gonzobanker

AUGUST 24, 2023

The Credit Card Competition Act of 2023 could negatively impact banks’ ability to generate interchange fees and reduce the amount of capital they issue, however. The crisis the WSJ is alluding to is the short-term “crisis of 2023.” One bright spot for the banking industry is Americans’ rising appetite for credit card debt.

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Abrigo

FEBRUARY 14, 2024

You might also like this podcast, "How to sleep easier at night about your capital and risk levels." office buildings with a vacancy rate over 95% declined to 60% in Q2 2023 from 63% in Q1 2020, or pre-pandemic. CBRE stated recently that the share of U.S. CRE stress testing , in particular, is a timely risk management practice.

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Abrigo

OCTOBER 22, 2024

At Abrigo, we’ve always focused on helping financial institutions thrive—not just for their own benefit but for the sake of the communities they serve. It’s about supporting the people who safeguard banks and credit unions from the growing threats of financial crime and who keep capital flowing to small businesses and families.

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Abrigo

FEBRUARY 11, 2022

Firm deadline for CECL implementation set As expected, the FASB agreed to uphold CECL’s 2023 implementation date. You might also like " CECL Streamlined: A Webinar Series for 2023 Adopters". Takeaway 1 The FASB agreed to uphold the 2023 implementation date for those that haven’t yet adopted the CECL standard. Learn More.

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Independent Banker

DECEMBER 31, 2022

And with 2023, we have no shortage of adventures awaiting us. It’s a challenge to be sure, but it’s one that community banks have previously faced with strength. In fact, this is when community banks shine, bringing stability to customers simply by being relationship bankers who see them and know them. Rebeca Romero Rainey.

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ABA Community Banking

JANUARY 22, 2024

Late in 2023, Warsaw Federal — a $71 million mutual savings and loan in Cincinnati — was officially designated as a minority depository institution. The move to MDI status is part of the 130-year-old bank’s pivot to serving its community more deeply while building its capital base to support growth.

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ABA Community Banking

MAY 12, 2023

The post Podcast: Analyzing first-quarter earnings and 2023 annual meetings appeared first on ABA Banking Journal. First quarter earnings reports are done, and bank shareholder meetings are currently going on, and rarely have these activities been in the public spotlight as now in the wake of three significant bank failures.

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Abrigo

JULY 20, 2024

Takeaway 3 To fully capitalize on the forthcoming C&I wave, institutions need the right products, systems, people, and technology. 2010-2023: 137.3% Source: Cornerstone Advisors presentation on C&I lending Since January 2023, commercial and industrial loan balances have fallen slightly or stagnated at around $2.8

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Abrigo

MAY 24, 2023

Takeaway 2 Considering the urgent need for a legislative solution, the SAFE Banking Act of 2023 could bridge the gap between state and federal marijuana laws. The new 2023 version of the SAFE Banking Act was introduced in the House of Representatives ( HR2891 ) and the Senate ( S1323 ) in May 2023.

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Perficient

NOVEMBER 21, 2023

Describe a typical day in the life. Perficient, though not new to insurance, is consistently realigning to capitalize on the industry’s digital transformation potential. After conversations with industry leaders at ITC 2023, we believe that, while embedded insurance is still in its infancy, it’s still something to watch.

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South State Correspondent

FEBRUARY 29, 2024

This article provides an update on pricing trends driven by our Loan Command aggregated community bank data and highlights some commercial loan insights that can improve bank performance. percentage points bringing forward looking LGD to 44% of the average community bank loan amount.

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Bussman Advisory

OCTOBER 7, 2023

Join our community of 50,000+ subscribers and stay informed on the latest trends and news in the FinTech & AI world with the weekly newsletter provided by Bussmann Advisory. This week’s must-know stories: Metro Bank’s Financial Struggles: Will Metro Bank in the UK be 2023’s next banking collapse?

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Abrigo

DECEMBER 18, 2023

WATCH Takeaway 1 Banks and credit unions are critical sources of capital for businesses in their communities, so how institutions assess CRE credits matters. Takeaway 3 Loan-level stress testing can help assess repricing risk, while capital stress testing helps clarify the impact of CRE loan losses on capital.

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Abrigo

APRIL 25, 2024

Data in this report is current as of Q2 2023 and is representative of market trends and conditions at the time of publication. The negative correlation of funded business loans to the Fed funds rate is a staggering 86% as businesses weigh their needs for capital against expensive debt and lenders aim to limit risk.

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Abrigo

MARCH 17, 2022

Takeaway 3 Using stress testing scenarios helps banks and credit unions determine whether estimated loss rates will push projected capital levels below regulatory thresholds. Regardless of regulatory pressure, measuring and managing key risks are the cornerstone of community financial institutions’ enterprise risk management (ERM) programs.

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South State Correspondent

JANUARY 30, 2024

For perspective, 2023 and what we expect for 2024 can be characterized as keeping up with revenue. Benchmarking can help banks better optimize capital as it gives bank management a sense of what the average is for the industry. The 2023 median fell so that bank IT spending made up 11.4% and 11.1%, with a median of 8.1%

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Independent Banker

DECEMBER 31, 2022

Here’s how community banks can enhance their payments offerings. We’ve got capital market resets that are potentially happening, technology advancements and continued heightened digital expectations. As 2023 kicks off, community banks can respond to today’s payments landscape by addressing five key trends. Quick Stat.

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South State Correspondent

JANUARY 30, 2023

Rising funding costs and decreasing liquidity at community banks are causing managers to change pricing methodology for new credits. We estimate that 25% to 50% of community banks have a policy requiring minimum yield or credit spreads for new commercial loans. The drop in liquidity ratios is expected to accelerate through 2023.

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Abrigo

DECEMBER 22, 2023

The most-read portfolio risk blogs in 2023 Probability of default, CECL model validation, and stress testing were among Abrigo's top blogs on ALM, CECL, and portfolio risk this year. Here are Abrigo’s 10 top ALM, CECL, and portfolio risk blogs in 2023. Click the header next to each number to visit the corresponding top blog post.

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Risk Management Regulation Management Lending 221

Independent Banker

JANUARY 31, 2023

And with 2023, we have no shortage of adventures awaiting us. It’s a challenge to be sure, but it’s one that community banks have previously faced with strength. In fact, this is when community banks shine, bringing stability to customers simply by being relationship bankers who see them and know them.

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South State Correspondent

JANUARY 11, 2023

In today’s market, that rate is not that competitive to a top-paying bank as that range is 3.20% to 4.11%, but it is far above a national bank (around 0.25%) and above the nation’s 0.15% average bank rate for January of 2023. Talk to almost any Ally Bank or Capital One employee, and they will crow about their deposit rates.

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Training Marketing Capital Course 195

Independent Banker

OCTOBER 31, 2021

The CARES Act extended the CECL implementation deadline for many larger community banks until the end of the COVID-19 pandemic. Community bankers tell us that while the extension is welcome, they’re already down the road to implementation. ICBA tells FASB CECL isn’t feasible for community banks. By Stephanie Vozza. April 2011.

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Independent Banker

NOVEMBER 30, 2022

First National Bank and Black Tech Nation Ventures teamed up to support minority-owned startups in the Pittsburgh community and beyond. Driven by her goal to cultivate a supportive community for diverse tech startups, Kelauni Jasmyn founded the fiscally sponsored nonprofit Black Tech Nation in Pittsburgh in 2018. By Elizabeth Judd.

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