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Community Banks Often Take Risk Without Reward

South State Correspondent

The yield curve is currently flat, and the average community banks cost of funding is highly correlated to Fed Funds and SOFR (the industrys average is over 90% with a about a 6-month lag). There are three main considerations that bankers need to analyze to determine if the risk/reward profile of fixed rate loans is adequate in todays market.

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Increasing Customer Cumulative Lifetime Value Through Lending

South State Correspondent

Our analysis shows that an average community bank can expect $9.7mm NPV of income (about 1% ROA) on a $100mm loan portfolio when the average loan life is seven years, versus only $5mm NPV of income (about 0.50% ROA) on the same portfolio where the average loan life is 2.3 years (both portfolios measured over a ten-year life).

Lending 195
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How Community Financial Institutions Can Regain the Small Business Lending Market

Abrigo

In today’s banking world, community banks are focused sharply on shareholders’ expectations for growth in earnings and return on equity. So, how can community banks support earnings and ROE growth in the face of intense regulatory scrutiny and competitive pressures on profitability? Changing Lending Environment. What's Next.

Lending 195
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These resources on interest rate risk, liquidity, and CECL got the most downloads in 2023

Abrigo

Here are the top resources. 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.

Resources 221
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What Has Helped Our Healthcare Clients Most Rapidly Respond to COVID-19

Perficient

Communication – Gathering and analyzing critical information is important in prioritizing those who are high-risk and providing adequate resources where necessary. Boost existing resources with powerful enhancements. In it, we explore ways you can: Automate user interactions with chatbots.

Resources 553
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Should Your Bank Adopt a Loan Hedging Program?

South State Correspondent

With the current flat or slightly inverted yield curve, plus the current volatility of the market, borrowers have a pricing advantage to lock in long-term, fixed-rate loans, leaving lenders with the interest rate risk without appropriate compensation.

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Visual Storytelling: Design Eye-Catching Graphics

Perficient

To help with this process, we at Perficient have compiled our favorite tips and how-tos for elevating your marketing mix and improving your brand’s visual narrative. Useful on so many platforms, pictures are an integral part of communicating your brand to the right audience. Use Canva.com As a Go-To Graphics Resource.

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