With cost of funds rising at credit unions everywhere, offering long-term fixed rate loans isn’t easy… that is why we created ARC
Provide Long-Term Fixed Rates while Earning a Floating Rate
*At closing, we fix the note for your member with a simple 4-page client addendum written in simple terms.
Generate Fee Income
Earn up to 2% of the loan amount that you can recognize as income immediately. Paid to you from us as an ARC referral fee.
Reduce Your Credit Union's Risks
Reduce credit risk by stabilizing your member’s DSCR with a long-term fixed rate. Mitigate your credit union's interest rate risk with a floating rate loan, helping to stabilize net-interest margin. Loan participation sales to other credit unions are permitted.
No Cost to Use the Program... ever!
There is no cost, or ongoing obligation, when you sign up for the Program and no cost when you book an ARC loan.
*Assumable Rate Conversion (ARC) loans are subject to approval by the client credit union
How ARC Works
ARC allows you to offer up to a 20-year fixed rate commercial loan, while you earn a floating rate.
This allows you all the benefits of an interest rate-swap without the complexities.
All the Benefits of a Traditional Swap Without the Headaches (for commercial loans $250k or larger)
ARC |
TRADITIONAL SWAP | |
|---|---|---|
| Fee Generation | ||
| Swap/Hedge Portability | ||
| Hedges for Unique Structures | ||
| No Hedge Accounting or Reporting | not checked | |
| No ISDA Documentation for Credit Union or Member | not checked | |
| No Cash Collateral | not checked |
- Eliminates the requirement for your loan officers to explain a complex transaction
- Puts SouthState’s capabilities to work for you, giving your credit union the marketing, sales, data and pricing support to better compete in today's landscape
- Training provided to all of your lenders
- The SouthState ARC team can meet in-person with your members anytime
Your plan to win more loans and beat the competition...
201.519.8292
david.greenberg@southstatebank.com