Correspondent Blog

FOMC Minutes and July Retail Sales With Congress in recess the only headlines from DC will likely come when the minutes from the latest FOMC meeting are released Wednesday afternoon. Recall that meeting didn’t change policy and while tapering was discussed there were no details released in the statement or the post-meeting press conference. The…

When designing products, choosing vendors or trying to solve usage challenges, understanding the importance of alerts and notifications is critical to success. Alerts are important now and will be even more essential for the modern banker to understand in the future as banking morphs into a collection of mobile apps and wearables. While we have…

Will Delta Variant Slow Economy as Much as Treasuries Expect? Relying on anecdotal information can be dangerous, especially when trying to extrapolate the impact to an economy as vast and diverse as the US, but we can’t help ourselves. Much of the recent multi-month rally in Treasuries has been conditioned on the belief that the…

After months of being in a steady-state, the PPP world caught fire. You have the borrowers from Round 1 (2020 origination) that have not filed for forgiveness yet and are now facing principal and interest payments; you have Round 2 Forgiveness heating up, and then, as of last week, you have the new SBA Direct…

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…

Inflation and Infrastructure Now that the July employment numbers are in the books, the market will keep an eye on the infrastructure proposal being debated in the Senate along with the latest inflation data.  If a Senate bill passes it will head to the House for review and vote. The House is unlikely to exact…

The Fed Will Be Watching Some Lesser Known Job Stats The July employment report will be released at 8:30 am ET and the question isn’t so much what the results will be but how much will investors react to the findings? The median expectation is that 870 thousand jobs were created versus 850 thousand in…

The average bank closes about 35% of their loans on their commercial loan pipeline report. Hearing this number begs the question – is that the optimal level for that metric? Put loans on that have a greater percentage of closing, and you potentially deprived transactions from getting the support they need. Put more loans on,…

July Jobs Report and Fate of Infrastructure Bill In addition to the Friday jobs report, the market will be keeping an eye on the infrastructure proposal being debated in the Senate. There is a decent chance something emerges this week and it will then head to the House for review and vote. The House is…

Most customers are borrowing neophytes.  We estimate that the majority of community bank borrowers have a rudimentary financial and accounting understanding, and these borrowers may focus solely on the interest rate on a loan when comparing their options.  Even “sophisticated” and seasoned borrowers do not know how to compare their borrowing options to optimize outcomes. …

Treasury Market Still Focused on Virus Case Counts The Treasury market is finishing up the week pretty much where it started despite getting a lot of new information from the FOMC meeting, GDP, and today’s June personal income and spending numbers.  The income and spending numbers were part of the second quarter GDP release but…

Increasing Virus Cases May Give Fed Pause The Fed concludes it’s two-day meeting this afternoon and investors will be looking for a couple things. For one, we think the Fed may well strike a different tone given they have been consistent in their messaging that the direction of public health (i.e., virus cases) will be…