South State Correspondent

DECEMBER 13, 2023

Bankers must understand the relationship between money supply and their bank’s COF. Even if the Fed does not increase the Fed Funds rate or even decreases the rate in the future, continued QT is expected to put pressure on the cost of funding in 2024. The graph below shows COF for the same three groups of banks.

Community Bank 195

Community Bank Community Policies Security 195

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?

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Community Bank Community Industry Strategy 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.

Trends 195

Trends Community Bank Community United States 195

Jeff For Banks

DECEMBER 10, 2024

As a point of reference, the S&P US BMI Bank Total Return Index for the five years ended December 6, 2024 was 34.55%. 2 Northeast Bank (NasdaqGM: NBN) Northeast Bank is a full-service bank headquartered in Portland, Maine that had $3.9 billion in total assets and seven branches at September 30, 2024.

Las Vegas 70

Las Vegas Lending Community Bank North Carolina 70

Abrigo

NOVEMBER 13, 2024

As rates stay high, concerns about credit risk and borrower health are top of mind for bank and credit union leaders, especially as it relates to lending to small businesses. Early 2024 figures show a dip in DSCR to 4.62x. However, recent data from Abrigo shows that privately held companies across the U.S.

Lending 221

Lending Meeting Data Risk Management 221

Gonzobanker

JULY 25, 2024

A recent Wall Street Journal nailed the title— Main Street Banking Model Is Being Squeezed —but missed the mark on the cause. Commenting on the Q1 2024 profit declines for many community and regional (i.e., government as a “significant” threat to the banking industry. The savior? Getting there won’t be easy.

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Community Bank Community Lending Maine 143

Abrigo

FEBRUARY 28, 2025

trillion globally in 2024. Connect with an expert Common fraud schemes Check fraud Check fraud is one of the most concerning fraud trends for community banks in 2025. This is a nearly 10% increase in complaints received and a 22% increase in losses and thats just fraud that was offically reported.

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Fraud social media Training Community 221

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

ABA Community Banking

OCTOBER 2, 2024

Amid persistent inflation and core deposit competition, community bankers expand their pools of funding sources, according to the Conference of State Bank Supervisors’ 2024 community bank survey. The post Cost of funds shoots to top of community bankers’ concerns in 2024 appeared first on ABA Banking Journal.

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Community Community Bank Survey Conference 94

American Banker

JULY 11, 2024

The top five community banks have combined first mortgage loans of more than $2.8 billion as of March 31, 2024.

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Community Bank Community Industry 87

ABA Community Banking

FEBRUARY 25, 2025

The banking industry reported an aggregate net income of $66.8 billion in the fourth quarter of 2024, according to the FDICs most recent Quarterly Banking Profile. In addition, the agency ended reporting on the aggregate assets of institutions on the Problem Bank List.

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FDIC Industry Report Community Bank 52

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 ). A graph for SouthState Bank appears below.

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Community Bank Community Analysis Industry 195

Jeff For Banks

FEBRUARY 12, 2025

Online account opening remains the wild west for most community banks. This was the background as I attended Bank Director's Acquire or Be Acquired (AOBA) conference. Berkshire Bank, a $12.3 billion in asset bank based in Pittsfield, Massachusetts, launched Berkshire One for online customers. Makes sense.

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Online Community Ohio Community Bank 96

South State Correspondent

JULY 26, 2023

The bigger risk to community banks’ business model is not a moderate recession induced by aggressive interest rate increases by the Federal Reserve. The yield curve impact is having a negative effect on bank profits. Banks reluctant to commit to fixed-rate terms beyond two or three years are disadvantaged.

Community Bank 195

Community Bank Community Strategy Atlanta 195

South State Correspondent

APRIL 30, 2024

An inverted yield curve, continued bank failures, and the desire to manage risk and offer clients higher service are all factors that are driving more community banks to adopt a loan hedge program. Community banks do this profitably by turning transactional accounts into relationships.

Community Bank 195

Community Bank FDIC Community National 195

South State Correspondent

APRIL 30, 2024

An inverted yield curve, continued bank failures, and the desire to manage risk and offer clients higher service are all factors that are driving more community banks to adopt a loan hedge program. Community banks do this profitably by turning transactional accounts into relationships.

Community Bank 195

Community Bank FDIC Community National 195

South State Correspondent

JUNE 18, 2024

Deposit costs and liquidity remain a challenge for some community banks as competition for core funding remains intense. The graph below compares the liquidity ratio for community banks (under $10B in assets) and banks over $100B in assets. Community banks do have a few strategies for mitigating COF pressures.

Community Bank 195

Community Bank Community Risk Management Management 195

South State Correspondent

SEPTEMBER 12, 2022

The banking industry’s cost of funds (COF) is highly correlated to short-term interest rates. However, as of Q2/22, the average community bank’s COF has risen only a few basis points. The COF over the past five quarters is shown for three asset peer groups: banks under $1B (3.5k The Data on Cost of Funds.

Community Bank 195

Community Bank Community Industry Online 195

South State Correspondent

JANUARY 16, 2024

Bloomberg recently announced that it will shut down its BSBY index on November 15, 2024. We published various articles comparing community bank alternatives to LIBOR (such as SOFR, Ameribor, Fed Funds, and Prime). Historically, community banks have hesitated to adopt derivatives for several reasons.

Community Bank 195

Community Bank Community Compliance CA 195

Jeff For Banks

JULY 1, 2024

Financial Markets Update – Second Quarter 2024 A dream vacation! That and getting consumed by Euro 2024 and Copa America soccer and of course, the Phillies. In July 2024, we will mark two years of inversion between the 10-year Treasury and the 2-year Treasury yields. for 2024 and 2.0% It was so beautiful and lots of fun.

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Marketing Conference Policies Survey 119

American Banker

JANUARY 3, 2024

A resilient economy and the potential for interest rate cuts could infuse further bullish sentiment into markets and bolster the shares of small lenders.

Community Bank 87

Community Bank Community Marketing Industry 87

South State Correspondent

JULY 29, 2024

However, we would like to identify one important macroeconomic variable that will affect the banking industry regardless of the makeup of the legislative and executive branches of the US government. Regardless of who wins, our national debt will continue to increase, and community banks should be prepared for its consequences.

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Community Bank Community US Taxes 195

American Banker

NOVEMBER 21, 2023

Bankers are hopeful that several factors could strengthen profits next year, including higher loan demand and more stable funding costs as the Fed holds the line on — or even lowers — interest rates.

Community Bank 85

Community Bank Community Lending 85

ABA Community Banking

MARCH 28, 2025

Credit union acquisition of banks doubled their pace in 2024, hitting a record high of 22 announced deals. The post ABA DataBank: Credit unions buy record number of banks in 2024 appeared first on ABA Banking Journal.

Community Bank 75

Community Bank Community Data 75

South State Correspondent

NOVEMBER 29, 2023

Community banks are striving to increase loan yield and maintain their cost of funding (COF). We have created and used a novel structure to take advantage of the inverted yield curve to allow community banks to increase net interest margin (NIM) and fee income on these existing fixed-rate loans.

Community Bank 195

Community Bank Community Tools Strategy 195

Jeff For Banks

OCTOBER 2, 2024

Financial Markets Update – Third Quarter 2024 I had a fantastic September traveling to France and Luxembourg with my sisters. Between December, 2022 and March, 2024, M2 declined on a y-o-y basis, which was the first time that has happened since 1931 to 1933. trillion for fiscal 2024 compared to -$1.7 6 Money Stock report.

Marketing 119

Marketing North Carolina US Community 119

Abrigo

DECEMBER 26, 2024

However, community banks, in particular, face challenges in quantifying risk and applying compliance measures using a risk-based methodology, Brewer said. To succeed against fraud, more banks and credit unions must also focus on internal fraud prevention training. Check fraud detection efforts will continue.

Fraud 195

Fraud Compliance South Dakota Resources 195

South State Correspondent

JANUARY 30, 2024

We recently conducted a small sample poll, and out of 21 banks, budgets were down an average of 14% for this year. In this article, we partner with Gartner to look at 2024 key IT metrics and provide strategic insight into how much your bank should be spending on IT. Usually, a bank spends about 8% of its revenue on IT.

Capital 195

Capital Operations Customer Experience Comparison 195

South State Correspondent

JANUARY 14, 2025

Many banks budgeted some six rate cuts in their 2024 asset-liability plans last year that never materialized. How should community banks think about their balance sheets, product offerings, and client demand in this pivot? The graph below compares the December 2020 and the December 2024 FOMC DOT plots.

Management 195

Management Policies Community Bank 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. The market anticipates about $3 trillion in total balance sheet reduction by the end of 2024.

Community Bank 195

Community Bank Community Industry Online 195

American Banker

DECEMBER 31, 2024

Community banking highlights in 2024 included strong deposit growth at a Los Angeles-based digital-only bank, continued regulatory scrutiny of banking-as-a-service arrangements, along with a transformational deal in the Old Dominion.

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Community Bank Los Angeles Community Online 36

PYMNTS

OCTOBER 6, 2020

billion people – will likely be using online and mobile banking services by 2024. Add in generational preferences for digital products, as well as the stricter regulatory requirements and oversight that national banks face, and it becomes clear that the effort to refresh big, old banks will be no easy task.

Digital Banking 256

Digital Banking ATM Mobile Atlanta 256

South State Correspondent

APRIL 9, 2024

We estimate that the average contractual loan commitment for term credit at community banks has decreased from just under five years in 2022 to just under three years currently. Community banks should carefully consider the prudence of such a strategy from both a risk and revenue perspective.

How To 195

How To Community Community Bank Marketing 195

Jack Henry

OCTOBER 29, 2024

This year’s Jack Henry Connect was a remarkable event that captured the spirit of community banking while embracing the continuously shifting world of technology.

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Community Bank Community Technology 78

American Banker

NOVEMBER 12, 2024

This year, 90 banks made American Banker's 12th annual Best Banks to Work For ranking. The leaders of these institutions share how they keep their employees happy.

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Community Bank Community Management 95

South State Correspondent

JUNE 20, 2023

The Fed’s Dot Plot now shows a 5.625% terminal fed funds rate in 2023 and a 4.75% rate at the end of 2024. Equally important are the Fed’s 2023, 2024, and 2025 projections for inflation, GDP, and unemployment – all pointing to a hotter economy for a longer period.

Policies 195

Policies Meeting Marketing Community Bank 195

ABA Community Banking

OCTOBER 21, 2024

The ABA Foundation named seven banks as 2024 Community Commitment Award winners. Raul Valles of Dallas Capital Bank in Texas to receive the George Bailey Distinguished Service Award.

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Community Dallas Texas Capital 52