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. Second, the hedge provider must be an FDIC insured institution and structure its hedges as a qualified financial contract (QFC).

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. Second, the hedge provider must be an FDIC insured institution and structure its hedges as a qualified financial contract (QFC).

Community Bank 195

Community Bank FDIC Community National 195

Abrigo

JULY 1, 2015

A segmentation strategy, though, is a great place to start to nail down an effective and efficient process – not only will it serve a substantial purpose for the ALLL, but also as a larger risk management tool. Borrowers in a segment generally exhibit similar financial characteristics such as capital sources and/or repayment sources.

Risk Management 150

Risk Management Management Strategy Lending 150

Abrigo

MARCH 31, 2017

Commercial real estate lending continues to receive regulatory scrutiny and reminders for financial institutions to practice solid risk management. FDIC officials in March outlined several types of weaknesses in loan underwriting, administration and oversight practices that are emerging at some banks with CRE portfolios.

FDIC 186

FDIC Risk Management Analysis Lending 186

Abrigo

JUNE 28, 2024

Navigating interest rate management in today's environment As regulators focus on interest rate risk management, read about what financial institutions can do to be ready for a rate drop. You might also like this on-demand webinar, "Navigating uncertain times: Strategies for effective risk management and compliance."

Community Bank 195

Community Bank Strategy Community Management 195

Abrigo

DECEMBER 22, 2023

Takeaway 3 Updates on interest rate forecasting and best practices for managing CRE risk were among the most-read blogs. Abrigo's most popular risk management blogs over the last 12 months cover topics that continue to catch the attention of professionals and regulators. Which credit areas need routine "maintenance"?

Risk Management 221

Risk Management Regulation Management Lending 221

Perficient

AUGUST 15, 2024

– These are the exact words (with a couple of expletives, that I cannot quote here) – a senior fund administrator from a large investment firm uttered when we were presenting about environment aware financial risk management. How does it impact me?

Risk Management 221

Risk Management Resources Regulation Community 221

South State Correspondent

MAY 7, 2024

With the assistance of the FDIC, Fulton Financial acquired certain assets, debt and deposits of Republic Bank. Instead, our industry must insist that bank risk managers be held to a higher standard that includes using modern, simple, and inexpensive risk mitigation models and techniques.

Risk Management 195

Risk Management Security Management Groups 195

Abrigo

OCTOBER 28, 2022

Managing loan workouts and modifications Tips for preparing your bank or credit union to handle an increased volume of problem loans while ensuring prudent credit risk management. You might also like this video, "A look at credit risk in a rising-rate environment." Loan performance since 2020 Chart 2. Watch webinar.

Management 195

Management Risk Management Policies Lending 195

Abrigo

APRIL 12, 2016

The FDIC is offering a fresh take on how a bank’s board of directors should understand and manage risk. The core principles for directors have not changed materially since 1988, the FDIC said. Risk management culture What exactly is a risk management culture? Evaluating risk management.

Management 150

Management FDIC Risk Management Community Bank 150

Abrigo

NOVEMBER 11, 2019

ALM | 4 minute read Key Takeaways Many financial institutions view asset/liability management as a "check-the-box" regulatory exercise. An extreme focus on using ALM to manage the risk of rising rates means some FIs overlook using ALM to grow earnings and capital, putting them at risk of underperformance.

Management 150

Management FDIC Community Risk Management 150

South State Correspondent

AUGUST 21, 2022

Second, community banks should use FDIC-insured institutions as hedge providers, and the hedges must be structured as qualified financial contracts (QFC). We see substantial risk to community banks in dealing with non-FDIC hedge providers or those not offering QFC protection – think Lehman Brothers.

How To 195

How To Community Bank Community FDIC 195

Abrigo

MARCH 17, 2022

Takeaway 3 Using stress testing scenarios helps banks and credit unions determine whether estimated loss rates will push projected capital levels below regulatory thresholds. Regardless of regulatory pressure, measuring and managing key risks are the cornerstone of community financial institutions’ enterprise risk management (ERM) programs.

Capital 195

Capital Regulation Risk Management Community 195

Abrigo

JUNE 11, 2021

Measuring Interest Rate Risk Can Vary by Institution Interest rate risk measurement plays a key role in ensuring an institution's safety and soundness. Would you like other articles on asset/liability management in your inbox? FDIC) noted in its 2021 Risk Review. Measure long-term interest rate risk.

How To 195

How To Risk Management Analysis Kansas City 195

Abrigo

AUGUST 3, 2017

The FDIC paper The Entry, Performance, and Risk Profile of De Novo Banks published in April 2016 reports that the number of de novo bank failures and acquisitions annually has drastically declined since 2010, primarily due to the fact that new bank formations have become nearly inexistent. A low interest rate environment 2.

Oklahoma City 150

Oklahoma City FDIC Handbook Oklahoma 150

South State Correspondent

MARCH 15, 2023

It turns out that confidence is more valuable than capital. While we wrote about the root cause of the failure of Silicon Valley Bank (SVB) HERE , the lessons of the current banking crisis go beyond interest rate risk management. The ratio would provide a bank’s current core capital position to risk-adjusted assets.

social media 195

social media FDIC Branding Management 195

Abrigo

JANUARY 29, 2020

Key Takeaways The FDIC issued an advisory to FIs encouraging safe and sound lending practices in today's ag lending environment. FDIC) issued an advisory to financial institutions encouraging exceptionally safe and sound lending practices in agricultural lending. On January 28, the Federal Deposit Insurance Corp.

Lending 195

Lending How To FDIC Survey 195

Abrigo

NOVEMBER 29, 2021

Capital One and Fifth Third Bank have launched programs to give customers early access to direct deposits, up to two days. Noninterest income drove 20% of community banks' net operating revenue in 2019, down from 22% in 2012, according to a recent FDIC study. Drive growth with integrated risk management. Keep me informed.

Community Bank 195

Community Bank Community FDIC Trends 195

Abrigo

FEBRUARY 12, 2020

The main drivers of expected CRE growth in 2020 are: Low interest rates Continued job growth and low unemployment Moderate consumer spending growth Abundant capital and return-seeking investors/lenders, and Increased property values (albeit slowing in appreciation). “2020 could be a pivotal year for the U.S.

Lending 195

Lending Trends FDIC Survey 195

Abrigo

JUNE 23, 2017

The desire to avoid examiner scrutiny may tempt some financial institutions to set the bar high when it comes to credit and liquidity risk management policy limits, but regulators are discouraging this approach. It could compromise institutions’ risk management effectiveness and ultimately hurt the institution.

Policies 150

Policies Risk Management Survey FDIC 150

Gonzobanker

MARCH 22, 2023

Irvine Sprague, Former FDIC Director So Gonzo Bankers … how many of us have been hesitant lately to check our iPhone each morning to see what trouble may have hit the fan in the financial world during a few restless hours of slumber? It’s a good time to surround the executive team with a diversity of smart advisors and capital market players.

social media 78

social media Capital Risk Management Strategy 78

Abrigo

SEPTEMBER 5, 2023

As the FDIC said recently: Exceptions to policy should be few in number and properly justified, approved, and tracked. a significant capital injection into the borrower, or other collateral such as liquid assets). Get details in "A guide to implementing credit policy." A guarantee generally should be unlimited and continuing.

Policies 195

Policies Lending Risk Management Examples 195

Abrigo

JULY 20, 2021

During Abrigo’s recent ThinkBIG Conference, credit underwriting and loan portfolio risk management trainer and consultant Michael Wear , CRC , of 39 Acres Corp. Export Working Capital loans are up to $5 million and are for terms of up to 12 months. They are for exporters needing additional working capital to support sales.

Lending 195

Lending FDIC Capital Risk Management 195

Abrigo

JULY 20, 2021

During Abrigo’s recent ThinkBIG Conference, credit underwriting and loan portfolio risk management trainer and consultant Michael Wear , CRC , of 39 Acres Corp. Export Working Capital loans are up to $5 million and are for terms of up to 12 months. They are for exporters needing additional working capital to support sales.

Lending 195

Lending FDIC Capital Risk Management 195

Abrigo

AUGUST 8, 2021

As regulators described “practices generally considered consistent with safety-and-soundness standards,” they revised loan review guidance to reflect the broader importance of credit review to risk management. Lending & Credit Risk. Credit Risk Management. Credit Risk Regulation. Member Business Lending.

System 195

System Lending Policies Regulation 195

PYMNTS

JULY 14, 2020

percent annual percentage yield (APY), an optional auto-deposit, no fees or minimums, and security as “Affirm Savings is FDIC-insured and accounts are held by our bank partner, Cross River Bank, member FDIC,’” a statement said. Leveraging Risk the Right Way. The account comes with 1.30

Lending 130

Lending FDIC Minneapolis Utah 130

Abrigo

AUGUST 9, 2017

According to the OCC, institutions that have incorporated stress testing into their planning typically demonstrate an ability to withstand negative market developments more effectively than other financial institutions as a result of these beneficial risk management practices.

Columbus 150

Columbus Ohio Strategy FDIC 150

American Banker

MARCH 29, 2016

The ambiguity over whether regulators favor risk sensitivity or simplicity in setting capital requirements does not help risk management efforts.

Capital 28

Capital Regulation Risk Management Management 28

Abrigo

AUGUST 6, 2021

according to FFIEC and FDIC data. Technology can help streamline and automate many manual lending processes, reduce compliance costs, and enhance risk management. Lending & Credit Risk. Even though community banks make up a small share of total assets and deposits, 13.5% Loan Origination System. SBA Lending.

Community Bank 195

Community Bank Community Kansas City Lending 195

Abrigo

MAY 5, 2022

Thankfully for bank and credit union executives, lenders, risk managers, and Bank Secrecy Act (BSA) Officers, banking podcasts and podcasts for credit unions are plentiful, and options are growing. Listen to the podcast episode, " How To Sleep Easier at Night About Capital and Risk Levels.". Lending & Credit Risk.

Community 195

Community Lending Maine Resources 195

CFPB Monitor

NOVEMBER 29, 2021

The Joint Statement also notes that the Agencies will evaluate bank capital and liquidity standards for crypto assets for activities involving U.S. In theory, this potential regulatory clarity sounds promising – but of course, the devil is in the details, and the final product will need to judged according to its actual utility.

Compliance 78

Compliance cryptocurrency Regulation FDIC 78

Jeff For Banks

JUNE 2, 2023

Finally, resolution of failing financial institutions requires that the deposit insurance fund be strongly capitalized with real reserves, not just federal guarantee.” To you, manage your interest rate risk. Before becoming desperate and trading interest rate risk for credit risk. credit default swaps anyone?).

FDIC 78

FDIC Community Bank Regulation Lending 78

Independent Banker

SEPTEMBER 25, 2014

As David Barr, spokesperson for the FDIC, points out, “a vast majority of community banks remain well-rated and exhibit satisfactory corporate governance programs and compliance management systems.”. Be aware of existing or emerging risk concerns. We’re starting to see examiners demanding a capital plan be in place.”.

Compliance 101

Compliance Regulation Community Bank Community 101

Independent Banker

FEBRUARY 24, 2016

Obviously these local lenders took notice when the Federal Reserve, the FDIC and the Office of the Comptroller of the Currency recently issued a joint statement pointing out increased risks in CRE lending. CRE loans totaled 869 percent of Oak Valley’s capital in 2001, resulting in a special examination by regulators.

Community Bank 70

Community Bank Lending Community Regulation 70

Jeff For Banks

OCTOBER 29, 2016

In my firm's most recent podcast , we discussed the recently released FDIC Summary of Deposits data that showed, with all of the negative price surrounding large financial institutions, FDIC-insured banks with >$10 billion in assets moved from an 80.6% deposit market share in 2012 to a 80.7% We should start with ourselves.

Training 60

Training FDIC Community Resources 60

Jeff For Banks

JULY 31, 2017

Which is very close to the 3-year annual net income growth for all FDIC insured banks. Banks are capital intensive. Risk management and the legions of regulators work in tandem to limit growth. The regional banks' PEG ratio, if I do the reverse math, implies that earnings are growing around 3% for the banks in that index.

Regional 60

Regional FDIC Industry Risk Management 60

Independent Banker

FEBRUARY 24, 2016

FDIC-insured deposits largely solve this problem for banks. Against lenders that fund loans with their own capital or with funds from large institutional investors, banks enjoy a considerably larger spread between cost of funds and loan interest. Core deposits also come at much lower costs.

Community Bank 70

Community Bank Community Lending FDIC 70