Correspondent Blog

The graph below demonstrates loan repricing changes quarter-over-quarter from June 2020 to June 2021 for banks in three asset bands (under $1B, $1-3B, and over $25B).  The top three stacks of the bars show fixed-rate loans that reprice 3-5 years, 5-15 years, and over 15 years.  The bottom three stacks show floating and adjustable-rate loans. …

September Housing Numbers and More Fed Speak With the November FOMC meeting still a few weeks away we’ll be greeted with a plethora of Fed speakers this week to give us their latest views on the economy and monetary policy. The headliner will be Chair Powell speaking Friday in a policy panel discussion. Investors will…

On our path to describing the Bank Strategy Cube framework, we laid down the four horizontal layers (HERE). In this article, we tackle the vertical layers that complete the cube. Where the horizontal layers pertain to strategy development at different parts of the Bank, the vertical layers provide the foundation for execution. These vertical layers…

September Retail Sales Today but Market Fixated on Inflation Implications After September’s CPI numbers last Wednesday the last major economic release this week is this morning’s Retail Sales Report. Recall that the August report surprised to the upside when expectations were that rising virus cases would dent sales. That wasn’t the case but with downward…

In a recent article (Here), we discussed how lenders might help borrowers decide if and when to refinance debt and why lenders, as trusted advisors, should have a borrower’s best interests as their primary objective.  We also addressed how lenders should compare a borrower’s refinancing costs now versus waiting, and we shared an Excel model…

Examining Bond Portfolio Trends: Third Quarter 2021 Beginning in May 2012 we started tracking  portfolio trends of our bond accounting customers here at the Correspondent Division of SouthState Bank.  At present, we account for over 130 client portfolios with a combined book value of $17.2 billion, or $132 million on average per portfolio.  Twelve months…

If you are reading this, you are likely a high-performing banker. Like us, you are likely passionate about banking, looking to improve, and you are more quantitative than the average non-reader. While we suspect that supposition to be true, we really have no idea. Regardless of how you perform, the fact that we labeled you…

September CPI, Retail Sales and Plenty of Fed Speak A couple first-tier economic releases will likely garner attention from traders this week with a good dose of Fed news to keep the headlines flowing.  First, the September CPI numbers will be released tomorrow and it’s expected to be mostly a placeholder month with little movement…

September Jobs Report Last Before November FOMC Meeting The September employment report will be released at 8:30 am ET this morning and it will be the last jobs report before the November FOMC meeting and the expected quantitative easing tapering announcement. That being said, we don’t think the tapering decision hangs in the balance on…

September Jobs Report Last Before November FOMC Meeting It’s perhaps a quirk of the calendar that this Friday’s September Employment Report will be the only one before the Fed’s next FOMC meeting on November 3. So the question becomes how consequential can it be? We think the risks are asymmetric in that it would take…

A good bank strategy is a multi-layered cube. In this article, we present the four horizontal layers and then follow this article up with the vertical layers to round out the construction of the basic framework that can be used to set any bank’s strategic planning. The reality is that many banks fail to plan…

The most common question we hear from borrowers is, “Should I refinance my debt?”  This can be a difficult question for lenders to answer, but as a trusted advisor, every lender should understand the strategy, and the process to answer that question for every client.  We will address the knowledge that commercial lenders must have…