Abrigo

FEBRUARY 6, 2025

Cannabis-related businesses (CRBs)spanning everything from cultivation to retailrepresent a market in need of lending services, from working capital to real estate and equipment loans. With the right approach, the rewards may outweigh the risks, creating opportunities for both financial institutions and the communities they serve.

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Lending Compliance Community Software 195

Abrigo

AUGUST 6, 2021

How can community financial institutions thrive in 2021? Community banks provide unique and important banking services for their customers, but they also face significant obstacles. Would you like other articles like this in your inbox? Takeaway 2 Community banks are at a crossroads: innovate or be left behind (or acquired).

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Community Bank Community Kansas City Lending 195

Abrigo

JANUARY 19, 2015

The Recession and its subsequent rate of bank failures underscore the need for banks of all sizes to invest in developing a capital plan. The Recession taught many institutions that whatever processes had been in place for managing capital were not sufficient. The result was insufficient capital. Forward-looking review 4.

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Capital Analysis Policies Examples 150

Abrigo

NOVEMBER 15, 2014

The site analyzed the social media community built by the top banks and credit unions alongside the institution’s asset size. When comparing social impact of banks versus credit unions, the results showed that CUs tend to have an easier time building a community. million in assets for every one follower on Twitter.

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PYMNTS

AUGUST 24, 2019

The woman who was accused of hacking into Capital One’s cloud and swiping the information of more than 100 million people was denied bail, Bloomberg reported on Friday (Aug. Thompson, 33, was described by prosecutors as a loose cannon with violent tendencies, the article said. On Friday (Aug.

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Capital Seattle Policies Community 155

South State Correspondent

MARCH 28, 2023

In a recent article ( here ), we discussed why banks that take risks to earn higher revenue demonstrate lower performance as measured by ROA. While in that blog, we specifically considered the risk-return tradeoff for credit risk; in a future article, we’ll consider interest rate risk.

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Community Bank Community Management Marketing 195

South State Correspondent

AUGUST 21, 2023

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. Risks to the Community Banking Sector Moody’s identified three risks to the banking sector, including risks to community banks.

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Community Bank Community Capital Analysis 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 this article, we consider the common features of upselling and cross-selling. In this article, we consider the common features of upselling and cross-selling.

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Community Bank Community Industry Cards 195

South State Correspondent

OCTOBER 4, 2023

In an article last week ( Here ), we discussed how the higher-for-longer interest rate environment will affect the community bank sector. We argued that community banks must learn to improve performance in a low-growth environment for the foreseeable future. This is especially important when liquidity is scarce, as it is now.

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Community Bank Community Capital Comparison 195

South State Correspondent

OCTOBER 17, 2022

In a previous article ( HERE ), we discussed the concept of Funds Transfer Pricing (FTP), why systemically important banks and large regional banks incorporate FTP, and why community banks should also consider implementing FTP. In this article, we look at using FTP attribution to better understand lending profitability.

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How To Community Bank Community Capital 195

Abrigo

FEBRUARY 25, 2025

This article covers these key topics: Cultivating fertile ground for small business lending Do large lenders have an advantage in small business lending? Automation fosters efficiency, accuracy, and the support that community businesses need. But these businessesoften the backbone of their communitiesdepend on access to capital.

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Lending FDIC Policies Analysis 195

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.

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South State Correspondent

FEBRUARY 20, 2023

Community bankers need to understand their competitive landscape. Who the competition is, what the lending competition is offering, their delivery channels, and service levels can help community banks differentiate their services and enhance their competitive advantage.

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South State Correspondent

JUNE 5, 2024

The typical published analysis considers the industry in aggregate which conflates the challenges and opportunities at community banks (those under $10B in assets). Second, much of the increase in COF for community banks is the result of shrinking non-interest bearing DDA being replaced with higher cost CDs (see graph below).

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Community Bank Community National Marketing 195

South State Correspondent

JUNE 30, 2023

Many banks pride themselves on superior customer service, and approximately 90% of all community banks believe that they provide an above-average level of customer service (the math cannot work that way). Banks can then calculate SVA by subtracting their cost of capital from net operating profit after tax for each client.

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South State Correspondent

MAY 20, 2024

In last week’s article ( here ), we discussed why category and geographic diversification may be unfeasible for many community banks. We concluded that after a community bank sets limits on loan categories, the added benefit of geographic or loan category diversification is nullified.

Community Bank 195

Community Bank Community Strategy Examples 195

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. Would you like other articles like this in your inbox?

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San Francisco Risk Management New York Capital 195

South State Correspondent

SEPTEMBER 30, 2024

In Q2/24 the average return of asset (ROA) for community banks (under $10B in assets) was 1.08%. But within the community banking sector, performance varied among banks significantly and a large swath of banks need to improve ROA. of community banks reported negative ROA. While the average ROA was 1.08%, approximately 5.7%

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Abrigo

MARCH 31, 2025

Kirby cited FDIC statistics showing nearly three-quarters of community banks require three or more levels of approval, regardless of the loan size. It also means removing ritualistic contentsuch as unnecessary analysis of debt service coverage for a working capital linewhen it doesnt directly relate to how the loan will be repaid.

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Analysis Risk Management Management Data 195

Abrigo

DECEMBER 22, 2023

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. Takeaway 3 Articles specific to small community banks were among the most-read blogs, with best practices for construction lending at the top of the list.

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Lending Risk Management Community Management 221

South State Correspondent

NOVEMBER 4, 2024

Over the last few years we have published various articles on the pros and cons of commercial loan prepayment provisions, how those prepay provisions impact marketing and sales, loan prepayment speeds, and the relationship between prepayment provisions and customer return on equity (ROE) (some of the recent articles are here , here , and here ).

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Community Bank Community Marketing Maine 195

South State Correspondent

FEBRUARY 24, 2025

In a competitive market for commercial clients, each loan feature can be valuable to a community bank. Some community banks offer fixed-rate loans through a hedging program and utilize a symmetrical prepayment provision, others community banks will market their fixed rate loans based on the simplicity of a step-down prepayment provision.

How To 195

How To Community Bank Community Tools 195

South State Correspondent

AUGUST 21, 2022

Last week we wrote about loan-level vs. balance sheet hedging for community banks and provided our loan proposal generator ( HERE ). We compared and contrasted the two strategies and sized the market for community banks. A community bank may transact one or only a few balance sheet hedges over many years.

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How To Community Bank Community FDIC 195

Abrigo

NOVEMBER 29, 2021

Takeaway 3 Community banks have seen less volatility in noninterest income, and many are still eyeing growth across the category. This article looks at trends in growth and composition as well as legal, regulatory, and competitive pressure on noninterest earnings. Community banks target growth. Types of Noninterest Income.

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Community Bank Community FDIC Trends 195

South State Correspondent

APRIL 30, 2022

In this article, we analyze the industry’s cost of funding earning assets (COF) and track how community banks’ COF behaves relative to larger banks. In future articles, we will explain our modeling for community banks’ COF based on inflation, Fed Funds rates, consumer consumption and the Fed’s balance sheet runoff.

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Community Bank Strategy Community FDIC 195

South State Correspondent

FEBRUARY 27, 2024

Community bankers need to practice realistic loan pricing discipline. However, we need to understand the meaning of pricing discipline and its effect on community bank performance. This is strong evidence that community banks are pricing to an arbitrary minimum credit spread in this set of loans. Cost-plus pricing.

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How To Community Bank Community Management 195

South State Correspondent

APRIL 3, 2023

In recent articles ( here and here ), we discussed why banks that take the interest rate movement risk demonstrate lower performance as measured by return on assets (ROA). The second article compared and contrasted community banks’ pay-for-risk and relationship business models.

Community Bank 195

Community Bank Community Marketing Lending 195

South State Correspondent

MARCH 5, 2024

In this article, we will consider how and why loan size is one of the most significant drivers of profitability for community banks and what community banks can do to improve performance. However, a community bank’s average commercial loan size is between $250k and $500k.

Community Bank 195

Community Bank Community National Lending 195

South State Correspondent

MARCH 5, 2024

In this article, we will consider how and why loan size is one of the most significant drivers of profitability for community banks and what community banks can do to improve performance. However, a community bank’s average commercial loan size is between $250k and $500k.

Community Bank 195

Community Bank Community National Lending 195

Abrigo

SEPTEMBER 25, 2024

Would you like other articles like this in your inbox? However, in most years, E-Tran handles far fewer loans for the following programs: 7(a) Loan Program : Known for its flexibility, 7(a) loans can be used for working capital, equipment purchases, real estate, and more. Key Takeaways E-Tran is the SBA's loan submission platform.

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Lending St. Louis Fraud Software 379

South State Correspondent

JANUARY 16, 2024

Barings Bank, Orange County (CA), Enron, Long-Term Capital Management, and other entities misused derivatives or didn’t understand the difference between hedging and speculating. We published various articles comparing community bank alternatives to LIBOR (such as SOFR, Ameribor, Fed Funds, and Prime). No ISDA documents.

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Community Bank Community Compliance CA 195

South State Correspondent

MARCH 19, 2023

In this article, we’ll consider the risk-return tradeoff for bank credit risk, and in a future article, we will compare different community bank business models. If your competition is underpricing credit risk, the borrower is more than willing to take that capital, and your only choice is to lose that loan.

Analysis 195

Analysis Community Bank Operations Community 195

South State Correspondent

FEBRUARY 28, 2023

Many community banks today are willing to underwrite real estate secured loans on just two metrics: debt-service-coverage ratio (DSCR) and loan-to-appraised value (LTV). We will consider the minimal project DSCR in this article and cover the debt yield topic in future blogs.

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Lending Community Bank Community National 195

South State Correspondent

FEBRUARY 27, 2022

In our article last week ( HERE ), we discussed how the yield curve is currently flat between the three and 20-year points. While community banks may want the ability to offer longer-term fixed-rate loans, the interest rate risk is too significant for most banks’ balance sheets. Current Risk in Term Lending. Why ARC Makes Sense.

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Lending Community Bank Community Meeting 195

Abrigo

APRIL 22, 2024

Small business lending is also a prominent line of business for many financial institutions, especially those driven by a mission to help their communities thrive. Almost half sought credit to grow their businesses, and 28% applied to make repairs or replace capital assets. A majority of applicants sought less than $100,000.

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Lending St. Louis Community Marketing 243

Abrigo

NOVEMBER 18, 2016

In a survey of community banks and credit unions at the 2016 Sageworks Risk Management Summit, 42 percent of respondents said Commercial Real Estate, or CRE, lending was their primary focus for loan portfolio growth. This reflects a larger industry trend. For many, commercial real estate lending may be the ticket.

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Community Bank Handbook Lending Risk Management 150

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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Trends Community Bank Community United States 195