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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Abrigo

MARCH 31, 2025

Given that a credit memorandum is one of the most critical documents in the life of the loan, it would seem like a straightforward process. Kirby cited FDIC statistics showing nearly three-quarters of community banks require three or more levels of approval, regardless of the loan size.

Analysis 195

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Abrigo

SEPTEMBER 25, 2024

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. Those loans also used E-Tran for origination.

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Abrigo

OCTOBER 2, 2014

Following the recent financial crisis, the Basel Committee of Banking Supervision (BCBS) set out to “strengthen global capital and liquidity rules with the goal of promoting a more resilient banking sector.” The three pillars include maintaining minimum capital requirements, a supervisory review process and market discipline.

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How To Capital Community Bank Maine 236

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%

Community Bank 195

Community Bank Community National Regional 195

Abrigo

SEPTEMBER 2, 2020

Key Takeaways With more customers leveraging channels like online and mobile banking, community financial institutions are trying to solve how to maintain their hallmark community focus in an increasingly digital world. A relationship-based, community focus in a digital world. learn more.

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Lending Community San Antonio Survey 259

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.

Community Bank 195

Community Bank Community Compliance CA 195

PYMNTS

JANUARY 5, 2021

The San Jose-based community development financial institution, or CDFI, on Tuesday (Jan. The Opportunity Fund provides working capital loans ranging from $2,600 to $100,000 to underserved businesses that might otherwise run afoul of more rigid underwriting requirements and more extensive documentation rules at traditional lenders.

San Jose 198

San Jose Lending Community California 198

PYMNTS

JANUARY 8, 2021

There's no doubt that the small business community is facing a period of immense tribulation. As Eiriz explained, the small business lending community has the opportunity, and perhaps even the obligation, to embrace collaboration and dig deeper into the entrepreneurial community in order to best serve SMBs and support the broader economy.

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PYMNTS

SEPTEMBER 18, 2020

Venture capital appears to be picking back up in the B2B technology startup community. This week saw an impressive $324 million in combined funding for a range of B2B FinTechs and other solution providers, including alternative lenders looking to support small businesses as they manage working capital instability. eFileCabinet.

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San Jose Capital Utah Operations 226

Abrigo

NOVEMBER 21, 2014

Those kinds of wording tweaks may be minor in terms of language of the document itself, but significant in terms of how you apply that standard.” How should community banks prepare for the transition? • Capital plan for the adjustment. • Accounting for the life of the loan. • Tracking loans by vintage.

Community Bank 223

Community Bank Analysis Community Video 223

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.

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Independent Banker

JUNE 30, 2022

Working through any difficulty or crisis at your community bank won’t be a walk in the park, but it may lead to an experience for which you’re truly grateful. As a community banker, you’re either going through a crisis or you’re preparing for one. and documenting accordingly. Photo by Chris Williams. My top three.

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Community Bank Community Lending Management 171

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.

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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 2, 2020

Key Takeaways With more customers leveraging channels like online and mobile banking, community financial institutions are trying to solve how to maintain their hallmark community focus in an increasingly digital world. A relationship-based, community focus in a digital world. learn more.

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Lending Community San Antonio Survey 195

South State Correspondent

APRIL 10, 2023

CRE Risk Background While ten years ago, community and regional banks use to make up some 55% of the CRE market, in 2023, these banks now compose approximately 72% (below). The risk here is that community banks continue to take on an above-average amount of CRE credit exposure. This article explores the risk and what to do about it.

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PYMNTS

APRIL 9, 2020

What we need to be told is that we have this document, we have authorization and we’re good to go,” Speight explained. Second: Eliminate The Capital Crunch . Reducing the problem to its simplest terms, he noted: one week in, and there are just too many things that all bankers don’t know. Edwards said.

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Abrigo

NOVEMBER 8, 2019

Top down and bottom up analysis can inform capital assessments. Effective stress testing can benefit many different facets of lending, from risk management and strategic decision-making to capital adequacy and liquidity management. Stress testing and capital adequacy.

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South State Correspondent

FEBRUARY 27, 2022

ARC enables community banks to take advantage of a flat yield curve, differentiate the bank from market competitors, provide a higher level of service to better customers, and instill more relationship business – all of this leads to more loans and more profitable customers. Current Risk in Term Lending. Why ARC Makes Sense. Differentiate.

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Lending Community Bank Community Meeting 195

Independent Banker

JANUARY 31, 2022

These community banks are working to fix that through microlending programs. Now, some community banks are launching microlending programs to redress the balance. That realization sparked the idea at Summit Bank to create a microloan program that would target underserved groups in its communities. By Beth Mattson-Teig.

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Abrigo

JULY 5, 2020

Secure online portals allowed PPP loan applicants to upload required documents, and many credit unions finalized borrower applications with electronic signatures. Capitalize on growth opportunities with new members. The SBA didn’t break out larger credit union PPP lending activity.) Among all 5,459 PPP lenders, more than $520.6

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PYMNTS

DECEMBER 13, 2019

by regulatory initiatives (designed to spur competition in small business banking, open up the market to new challenger banks and support marketplace lending platforms), the bank loan is often the first place small business owners look when in search of capital. venture capital investments in U.K. venture capital investments in U.K.

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Abrigo

FEBRUARY 27, 2020

The list goes on, and we haven’t even gotten into creating closing documents or credit presentations. Many community bankers expect a recession will start by at least mid-2021, according to the most recent Community Bank Sentiment Index.

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Abrigo

APRIL 14, 2020

Internal plans should document credit concerns and assess current liquidity. After the Great Recession, financial institutions retained more capital to build in buffers to face uncertain times like this. Document plans for credit concerns. However, be careful on rationale and documentation for the change.

Community 195

Community Lending Marketing Meeting 195

Abrigo

APRIL 8, 2020

Automation is key to streamlining PPP loans and getting capital into the hands of small business owners quickly. More than ever, this is the time for community financial institutions to step up to the plate and show small businesses that they are there to see their success all the way through, beginning with the PPP loan.

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Abrigo

JULY 25, 2017

Leading up the recession and these significant losses, CRE grew in a regulatory environment that “permitted lower capital requirements and did not impose lending caps, merely supervisory limits”. These caps were 100% of capital for construction loans, and 300% for all investor CRE. What are HVCRE loans?

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South State Correspondent

JULY 21, 2024

The biggest surprise for bank managers using risk-adjusted return on capital (RAROC) loan pricing models is the low return on equity (ROE) on smaller, shorter, and lower-credit quality commercial loans. Most banks’ origination costs (marketing, underwriting, documentation, and funding) are higher than the fee charged on origination.

Community Bank 195

Community Bank Community Analysis Capital 195

Abrigo

APRIL 1, 2015

While the larger banks are receiving the bulk of attention, boards at smaller, community banks are realizing that they’re not immune to this heightened attention. One important consideration is the use of a formal risk appetite statement or document. These smaller banks have also seen new, and more frequent, attention from regulators.

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Abrigo

MARCH 31, 2017

However, in general, they are operating with a higher-risk profile based on a couple of measures, including leverage capital ratios, total risk-based capital ratios and whole-funding-to-assets ratios. “As They also call for more robust loan review and ALLL policies and practices and “possibly, higher capital levels.”

FDIC 186

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Abrigo

DECEMBER 21, 2020

Takeaway 2 The bill will set aside billions for community financial institutions to lend, as well as for loans to businesses in low-income areas. . Here’s what financial institution lenders seeking to assist their communities with PPP loans in the new round need to know. Takeaway 1 Congress is voting to spend the remaining $146.5

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Lending Community Regulation Maine 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.

Lending 221

Lending Risk Management Community Management 221

Abrigo

FEBRUARY 5, 2015

While the report recognizes that customer demands and competition from non-traditional banks will shape banking’s future, the report also recognizes that regulatory expectations and scrutiny will continue to increase, for both traditional community banks and non-bank entities that try to enter banking. Blog Bank Credit Union'

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PYMNTS

JUNE 14, 2019

And the idea is to take advantage of the ongoing rise of mobile commerce and social media to create, in essence, digital communities centered around pets — and not just ones that spark to life when little Fido goes missing, or plots an escape from a dog park or a particular section of the beach in the summer.

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social media Retail Community Mobile 194

PYMNTS

JUNE 16, 2020

Cybercriminals are capitalizing on COVID-19, and they are doing so in tandem with the news cycle,” he said during the virtual hearing. ” A memo included with the subcommittee’s documents also pointed to the U.S. As a result, he said, Americans need to have information to keep themselves and their communities safe.

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US Cyber Security Security National 227

Abrigo

JULY 28, 2021

Takeaway 3 Beginning CECL adoption earlier provides time needed for backtesting, documentation, and developing disclosures. While conducting CECL testing, consider the impact each scenario will have on capital. CECL implementation and documentation, testing. Start CECL ASAP and have sufficient time to document your decisions.

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Abrigo

AUGUST 28, 2022

One overall benefit of effective loan pricing is that it is one of the many ways a financial institution can optimize capital. A simple cost-plus loan pricing model is one method of pricing loans, he wrote in a newsletter for community banks that cites the Fed's Commercial Bank Examination Manual (CBEM).

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