The market is preparing for the end of USD LIBOR as a benchmark index after 2021.  Most national and regional banks have created LIBOR working groups and have formulated a transition plan for LIBOR.  At SouthState Bank, we have been busy over the last year working on our transition from LIBOR to alternative indexes for liabilities, general lending, and our ARC hedge program.  In the next few weeks, we will be hosting a series of webinars to share with bankers our plans for sunsetting LIBOR.

Save Time and Attend The Libor Transition Webinar

We will discuss our plan for fallback rates for legacy contracts, our preferred index for new contracts, our timelines, and what we have learned from our core systems and support vendors.  We will be discussing the pros and cons of each alternative index and what should be your methodology to choose.

We would also be willing to share some training material that can be used with your commercial lenders and customers. At SouthState Bank, we have already started using SOFR, and we want to share best practices and pitfalls.

Forum: A 45-minute live webinar with Q&A.  We plan to host two general sessions over the next few weeks in addition to facilitating peer roundtable discussions so you can hear not just from us, but what other banks are doing in your area. In addition, we will also be conducting personalized webinars for individual banks upon request.

Recommended for: Bank management, commercial lenders, loan operations, and credit officers.

Topics of discussion: How to handle legacy loans, consideration for new loans using SOFR, Prime, or Ameribor. We will talk about pricing and credit consideration for SOFR as well as how to market and educate your customer base. We will discuss deposit marketing and operational considerations for using an alternative index as well as touching on other instruments such as TRUPS that could impact your balance sheet.

Best practices: We will share how SouthState is training commercial loan staff on the transition from LIBOR, the timeline we are using, and what materials can be effective at educating both lenders and customers.  We will also share our accrual and lookback conventions for SOFR.

While you may already have a plan, we are certain you will pick up some new ideas as well as save valuable bank time by leveraging our materials. Few bankers have lived through the introduction and stabilization of a new lending and deposit index and the end of LIBOR will present some unique challenges.

We will be sending invitations to bankers in the next few days.  If you are interested in attending these webinars, respond to our emails registration, or send us email addresses for interested bankers to [email protected] to be added to the distribution list for registrations.

Published: 08/09/21 Author: Chris Nichols