South State Correspondent

JANUARY 10, 2024

Community banks’ use of swaps (banks’ primary tool to hedge interest rate risk on loans) has increased substantially over the last ten years. Meanwhile, community banks face net interest margin (NIM) and fee income pressure. Only 304 banks (or 6.7% of the total) used swaps directly.

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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? In the recent publication, Community Banks’ Ongoing Role in the U.S.

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Community Bank Community Kansas City Lending 195

Abrigo

OCTOBER 9, 2014

This article is the second in a two-part series on top concerns and growth strategies of community banks. Everyone in the banking industry seems to be asking the same question these days: How can we facilitate growth? Part I focused on bankers’ greatest concerns, while this section will focus on growth strategies.

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South State Correspondent

JULY 5, 2020

Covid-19 and the responses to the pandemic are exerting various pressures on community banks. How a community bank underwrites and books commercial credit through the end of 2020 will have a significant impact on the bank’s profits and credit quality through the entire next business cycle.

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Abrigo

OCTOBER 8, 2014

This article is the first in a two-part series on top concerns and growth strategies of community banks. These are all phrases that resonate with community bankers. Data from Bank Director’s 2014 Growth Strategy Survey in August confirms that these are bankers’ greatest concerns. Blog Bank'

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South State Correspondent

DECEMBER 13, 2016

In a previous blog, we described what factors community bank managers might want to consider in analyzing a loan hedging program for their specific needs. In that blog, we listed the pros and cons of using a hedge to control risk and increase profitability.

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Abrigo

SEPTEMBER 22, 2015

Many community banks see this as a welcomed move towards offering smaller institutions some relief from the regulatory pressures of their larger, national counterparts. An article in American Banker noted that preparing call reports have become increasingly time-consuming and complex. Sound is a $500 million institution.

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Abrigo

OCTOBER 1, 2014

Today’s youth and others across all age groups are placing a significant importance on consuming local food, developing local relationships and improving local communities. This is great news for community banks. A recent American Banker article discussed why the local food movement is good for community banking.

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Abrigo

MARCH 9, 2015

The latest FDIC Quarterly Banking Profile was just released and the industry continues to be led by the nation’s community banks. percent of community banks were unprofitable during the quarter. However, across all banks, fourth quarter net income fell by 7.9 Community bank loan balances also rose 2.5

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Abrigo

MARCH 9, 2015

The latest FDIC Quarterly Banking Profile was just released and the industry continues to be led by the nation’s community banks. percent of community banks were unprofitable during the quarter. However, across all banks, fourth quarter net income fell by 7.9 Community bank loan balances also rose 2.5

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Community Bank Community FDIC Industry 150

Abrigo

NOVEMBER 13, 2024

This article covers these key topics: Debt-service coverage ratios are steady. Bank and credit union leaders can use data to inform small business lending Small businesses are showing resilience. Leveraged has improved since 2019. Businesses' working capital cycles are longer. Interest coverage ratios have stayed strong.

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Lending Meeting Data Risk Management 221

South State Correspondent

JUNE 21, 2022

This regime is now changing, and community banks need to position their lending and deposit portfolios for a period of monetary tightening. Banks that have avoided, or can reduce, their holdings of riskier assets as much as possible will outperform. Conclusion.

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Community Bank Policies Community Marketing 359

South State Correspondent

APRIL 8, 2025

In previous articles ( here and here ), we discussed how a portfolio of commercial loans with various expected average lives results in different net present value (NPV) of income and return over a ten-year period. Community bankers must strive to increase expected life of their commercial loan portfolios to increase profitability.

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Finer Points

JANUARY 5, 2015

I am humbled and grateful for the opportunity to kick off another year representing the nation’s community banks, an industry that has made its mark through honest dealing, community involvement and personalized customer service. Over the holidays, I read an article that reminded me just how good all of us have it who […].

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South State Correspondent

FEBRUARY 12, 2025

In this article, we quantify commercial loan pricing trends from our Loan Command data that will hopefully help community banks price more effectively and win more profitable business. As such, unless a bank thinks a recession lies ahead, the risk/reward profile is likely going to be the best community banks have seen.

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Trends Community Bank Capital Industry 195

Abrigo

FEBRUARY 28, 2025

Connect with an expert Common fraud schemes Check fraud Check fraud is one of the most concerning fraud trends for community banks in 2025. These could be held in a local branch lobby, community center, or place of worship. Can your AML/CFT and fraud staff recognize these fraud typologies?

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South State Correspondent

MAY 15, 2024

We believe that while lending diversification leads banks to lend more in normal times (especially for banks over $50B in assets) and does benefit the general economy, community banks should be careful in how and where they choose to diversify. It is hard to achieve geographical diversification within a bank’s footprint.

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Community Bank Community Lending Study 195

South State Correspondent

MAY 15, 2024

We believe that while lending diversification leads banks to lend more in normal times (especially for banks over $50B in assets) and does benefit the general economy, community banks should be careful in how and where they choose to diversify. It is hard to achieve geographical diversification within a bank’s footprint.

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Community Bank Community Lending Study 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. Another 16.2%

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The Financial Brand

NOVEMBER 1, 2024

This article More Community Banks Tap Treasury Management for Non-Interest Income appeared first on The Financial Brand. Getting started in treasury demands clear focus on business customers' needs and hiring the right people — often from other banks.

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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. Empirical evidence, historical bank failures, and common sense teach us that many risks do not translate to higher yields.

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Community Bank Community Management Marketing 195

The Financial Brand

DECEMBER 3, 2024

This article How a $1 Billion Community Bank Outperforms Industry Giants appeared first on The Financial Brand. Webster Five's retail banking chief shares how smaller banks can leverage technology partnerships and community focus to compete effectively with larger institutions.

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South State Correspondent

JUNE 5, 2024

For banks under $10B in assets, ROE declined to 10.53% in Q1/24 (an 11% decline in the last year). The typical published analysis considers the industry in aggregate which conflates the challenges and opportunities at community banks (those under $10B in assets). For the smaller community banks, DDA balances decreased 9.4

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Community Bank Community National Marketing 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.

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Community Bank Community Risk Management Management 195

The Financial Brand

OCTOBER 28, 2024

This article How This Community Bank Tripled Loan Volume Using Smart Automation appeared first on The Financial Brand. Evans Bank’s journey from manual loan processing to instant decisioning highlights how community banks can modernize lending while maintaining strong risk controls.

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South State Correspondent

JUNE 25, 2024

In a previous article [ here ] we discussed why community banks need product managers to ensure that financial products and services are effectively developed, launched, and managed to meet customers’ evolving needs and the bank’s risk and profitability goals. Not all customers are the right fit for the product.

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Lending Management Community Bank Community 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 ).

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Community Bank Community Analysis Industry 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.

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Community Bank Community Capital Comparison 195

South State Correspondent

AUGUST 28, 2019

At the time, the rule of thumb for bankers was that each bank employee produced about $20,000 of operating profit per year. Since each bank had about 100 employees, operating profit was about $2mm per community bank. In this article, we look at how this equation has changed and what it means for the future.

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Technology ATM Community Bank Community 207

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. We continue this theme of major drivers of loan and bank profitability and discuss the importance of cross-selling and upselling, and its impact on bank performance.

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Community Bank Community Industry Cards 195

South State Correspondent

AUGUST 5, 2019

It sometimes pays to be opportunistic in marketing your community bank’s products. There is currently an exceptional market opportunity for community banks to win profitable business from larger competitors. Our bank recently did just that, and in this article, we would like to share this strategy through a case study.

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Case Study How To Community Bank Community 186

The Financial Brand

OCTOBER 14, 2024

This article Chase Amps Up Its Community Banking Push. This article Chase Amps Up Its Community Banking Push. Can Other Brands Compete? appeared first on The Financial Brand. Chase continues to push aggressive branching in its quest to blanket the country. Can Other Brands Compete?

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Community Bank Community Branding Strategy 35

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

South State Correspondent

SEPTEMBER 3, 2024

Most community bankers we talk believe they will get a boost to bank performance with declining short-term rates. In this article we will quickly highlight the relationship between NIM and ROA/ROE and look at studies and historical trends of NIM in declining interest rate environments.

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Community Bank Community FDIC Industry 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

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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National Lending How To Community Bank 195

Abrigo

JULY 16, 2021

Would you like others articles like this in your inbox? Takeaway 2 Regulations haven't been written, but there are steps community financial institutions can take now to prepare. Currently, the accompanying regulations have not been written, so what should community financial institutions take away from these priorities now?

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