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? The graph below shows community bank cost of funds compared to those banks over $25B.

Community Bank 195

Community Bank Community Industry Strategy 195

Perficient

NOVEMBER 1, 2024

In November 2022, the Treasury Department explored opportunities and risks related to the use of AI in its report assessing the impact of new entrant non-bank firms on competition in consumer finance markets, for which the department conducted extensive outreach.

Regulation 221

Regulation US Community National 221

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% Where is the Recession?

Marketing 119

Marketing Conference Policies Survey 119

South State Correspondent

AUGUST 14, 2024

To effectively differentiate their services, commercial lenders will need to be thought leaders, understand their market and industries, and provide more insightful advisory services. Why Is It Important for Lenders Most community bank commercial clients do not have professional CFOs or treasurers. Identify performance needs.

Tools 195

Tools Marketing Community Bank Community 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. You wouldn’t know we have recession risk when stocks are rampaging; markets crashed for a day on August 5 th but recovered in mere days. trillion for fiscal 2024 compared to -$1.7 y-o-y for August.

Marketing 119

Marketing North Carolina US Community 119

South State Correspondent

APRIL 22, 2024

In a few short months, stronger economic data (higher GDP, stronger job market, and stubborn inflation) changed the market’s and the Fed’s view on the future path of interest rates. The market and the Fed are now aligning on only one rate cut in 2024 – obviously this will change over the course of the year as the economic data evolves.

Marketing 195

Marketing St. Louis Analysis Study 195

Jeff For Banks

OCTOBER 14, 2024

Community banking has almost achieved Kleenex or Xerox fame, being generalized to the point of meaninglessness. And the dilution of what it means to be a community bank has been diminished not just by interlopers pretending to be sheep in wolf's clothing, but also regulators, and unfortunately, community banks themselves.

Community Bank 101

Community Bank Community Capital Lending 101

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. in 2023 and slightly higher in 2024.

Community Bank 195

Community Bank Community Industry Marketing 195

Jeff For Banks

MARCH 21, 2024

In the markets, we watched helplessly as real GDP plummeted -5% in 1Q20 and -31% in 2Q20 before rebounding by +33% in 3Q20. I’ve previously theorized that China would try to reclaim its global market share lost during the pandemic by flooding the markets with cheaper goods. 2024 could exceed -$2.0 Here's a rant.

Marketing 111

Marketing Policies Report Atlanta 111

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 ). Deposit Behavior In This Tightening Cycle Versus Last Three.

Community Bank 195

Community Bank Community Analysis Industry 195

South State Correspondent

JANUARY 16, 2024

Bloomberg recently announced that it will shut down its BSBY index on November 15, 2024. With the development of the term SOFR market, BSBY offers no perceived advantages over SOFR, Fed Funds, or Prime. BSBY was not well received by US regulators from its inception, but the market eventually embraced SOFR over BSBY.

Community Bank 195

Community Bank Community Compliance CA 195

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. cuts through the end of the year.

How To 195

How To Community Community Bank Marketing 195

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 Fed may be nearing the end of its hiking cycle, but given the high threshold for interest rate cuts, there may be no changes in the Fed Funds rate until well after 2024.

Community Bank 195

Community Bank Community Strategy Atlanta 195

South State Correspondent

SEPTEMBER 12, 2022

However, as of Q2/22, the average community bank’s COF has risen only a few basis points. Community banks should be concerned about their COF because looking at current deposit conditions is like driving a car while looking at the rearview mirror. Community banks will feel the effects of these hikes over the next few quarters.

Community Bank 195

Community Bank Community Industry Online 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’ main goals are to diligently support their local communities and make an acceptable return on capital in these challenging times.

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’ main goals are to diligently support their local communities and make an acceptable return on capital in these challenging times.

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. This deposit and loan repricing mismatch caused NIM pressure at community banks.

Community Bank 195

Community Bank Community Risk Management Management 195

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

JANUARY 30, 2024

Marketing and technology (IT) are two budgets that have taken the most significant hit. 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. of total expenses; in 2024, this number is expected to be 11.2%.

Capital 195

Capital Operations Customer Experience Comparison 195

ABA Community Banking

OCTOBER 7, 2024

ABA announced six banks are the recipients of the 2024 Brand Slam Awards, which honor exceptional bank marketing strategies. The post ABA recognizes six banks with national bank marketing awards appeared first on ABA Banking Journal.

National 98

National Marketing Marketing Strategies Strategy 98

Jeff For Banks

NOVEMBER 5, 2024

Bank Director Magazine recently came out with its Ranking Banking report for 2024. The analysis was performed by Piper Sandler using the following criteria: "The report uses year-end 2023 data from S&P Global Market Intelligence. One is I wanted to push it forward to second quarter 2024 (the list was year ended 2023).

Trends 96

Trends Comparison Report California 96

South State Correspondent

NOVEMBER 29, 2023

Community banks are striving to increase loan yield and maintain their cost of funding (COF). Unfortunately, pressure on COF is expected to remain, and loans will reprice slower than expected as borrowers with below-market rates will wait until the last maturity day to refinance their credits.

Community Bank 195

Community Bank Community Tools Strategy 195

Jeff For Banks

DECEMBER 10, 2024

I chose five years because banks that focus on year-over-year returns tend to cut strategic investments come budget time, which hurts their market position, earnings power, and future relevance more than those that make those investments. billion in total assets and seven branches at September 30, 2024. M&F Bancorp, Inc.

Las Vegas 70

Las Vegas Lending Community Bank North Carolina 70

Abrigo

APRIL 22, 2024

Recent dynamics of the small business lending market A deep understanding of the small business lending landscape and potential efficiencies can help banks and credit unions grow their portfolios. Dynamic market Small business lending by banks & credit unions Small businesses are a pillar of the U.S. trillion between 2019 and 2022.

Lending 243

Lending St. Louis Community Marketing 243

PYMNTS

OCTOBER 12, 2020

In an interview with Karen Webster, Boston Federal Reserve Chief Operating Officer and FedNow Program Executive Ken Montgomery said the central bank’s ambitious payments initiative remains on track — and will inject competition into the instant payments market. He noted there has been additional input from the FedNow Community of 700 members.

Payments 244

Payments Boston System Operations 244

PYMNTS

AUGUST 5, 2019

Brainard further noted that the Fed is not looking to displace or directly compete with the various private-sector services already proliferating in the market, but to leverage its pre-existing inbuilt connections to over 10,000 U.S.

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System Payments Kansas Online 212

Abrigo

NOVEMBER 13, 2024

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. 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

South State Correspondent

JUNE 20, 2023

The futures market forecasts one additional hike in 2023, but more importantly, no interest rate decreases this year. 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. The tone of the Fed is also hawkish in an attempt to cool a resilient economy.

Policies 195

Policies Meeting Marketing Community Bank 195

South State Correspondent

NOVEMBER 29, 2023

One of the lessons that was driven home at the recent American Banker Small Business Banking Conference in Nashville was the difference in marketing between large national banks and community banks, particularly deposit marketing. The data would indicate not marketing to a new customer is a mistake.

Marketing 195

Marketing Regional National Nashville 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. Second, the market has priced in interest rate risk, but it has not priced liquidity risk.

Community Bank 195

Community Bank Community Industry Online 195

Abrigo

MAY 22, 2024

Recent stats and dynamics of the small business lending market Understanding the small business lending landscape and potential efficiencies can help banks and credit unions grow their portfolios. Dynamic market Small business lending by banks & credit unions Small businesses are a pillar of the U.S. trillion between 2019 and 2022.

Lending 195

Lending St. Louis Community Marketing 195

Gonzobanker

JANUARY 4, 2024

In 2024, Smarter Banks will go on offense and differentiate with the customer experience. When it comes to client experience in banking, the last three years have been a long, reactionary grind of responding to COVID, a white-hot labor market driving up turnover, and rapidly shifting competitive dynamics.

Customer Experience 112

Customer Experience Community Knowledge Base Tools 112

Abrigo

FEBRUARY 14, 2024

LISTEN Takeaway 1 Effective CRE risk management involves adapting to changing market fundamentals to avoid excessive loan losses. Takeaway 2 Pressures on builders, tighter CRE underwriting, and excess vacant office space are some of the indicators pointing to potential market risks. Stay up to date with CRE advice.

Risk Management 195

Risk Management Management Lending Capital 195

Abrigo

DECEMBER 28, 2023

Papers, infographics on risk management Resources related to banking headlines were popular For banking risk and accounting staff, managing challenges tied to interest rates, liquidity, and credit portfolios will remain top-of-mind in 2024. The popularity of this whitepaper on stress testing, then, is understandable.

Resources 221

Resources Risk Management eBook Strategy 221

ABA Community Banking

OCTOBER 21, 2024

The ABA Foundation named seven banks as 2024 Community Commitment Award winners. The post ABA Foundation announces winners of Community Commitment Awards, Distinguished Service Award appeared first on ABA Banking Journal. Raul Valles of Dallas Capital Bank in Texas to receive the George Bailey Distinguished Service Award.

Community 52

Community Dallas Texas Capital 52

South State Correspondent

MARCH 21, 2023

The need for a known, reliable brand creates an excellent opportunity for community banks to help small business customers while building deposit balances. The ERC filing deadline is October 2024. Market Overview To give you a feel for the market, we present the following data from our experience.

Taxes 195

Taxes Community Bank Community Operations 195

PYMNTS

APRIL 15, 2019

Consumers in the digital era want it both ways: In one context, they want to do it all for themselves and act as their own salesperson and cashier – only to quickly reach out for the power of community or the ability to team up with a partner in another. 12 percent: Projected global CAGR for the smart vending machine market from 2019–2021.

eBook 100

eBook Community Innovation Data 100