Correspondent Blog

For the second quarter of 2025, there were 11mm checks written every day totaling $34B, according to the latest Federal Reserve data. While the number of checks decline by about 8% every year, the fact that we still have the check is an embarrassment to banking. In this article, we explore what each check likely…

Central bank independence is currently, and has long been, considered a cornerstone of economic stability in advanced economies. The Federal Reserve (Fed) is established by Congress with a dual mandate of maximum employment and price stability. Its structure is designed to resist direct political pressures. Yet, in 2025, the Fed faces its greatest institutional challenge…

As banks finish strategic planning, it is helpful to understand your bank’s performance assuming you DON’T make any changes. A statistical reliable model that factors historical performance, current business model and future market assumptions allows bank executives to more accurately apply capital, resources, and risk to improve performance with a higher degree of confidence. In…

Most bankers understand that they are in the business of keeping loans versus making loans.  Originating new loans drains bank resources with acquisition, processing, and onboarding costs.  By identifying the right customer at inception and structuring the appropriate products, community banks can create a long-term, growing banking relationship.  Short-term loan commitments decrease cross-sell and upsell…

Last week we concluded the industry’s first and only pure deposit focused conference in Denver in conjunction with S&P Global. Given that deposits are a bank’s most important product, there is plenty of room for most banks to improve deposit performance, and we could potentially coming up to a period of changing rates, we thought…

On the path to improving bank profitability, we concluded our summer performance series for a handful of community banks.  Because of the demand and success of the format, we are extending this program for a “Fall Performance Series.”  For banks that are consistently earning below 1% ROA, we may be able to help increase performance…

As banks contemplate their strategic options for stablecoin, it is worth understanding the business model that drives the profitability of the product to make the best decision possible against a sea of unknown factors. In this article, we explore the potential profitability of a bank-issued stablecoin and the analytic model that will drive profit. The…

The Fed Funds futures market is currently pricing in a high probability of a September interest rate cut – although that is not a certainty.  Many clients with financing needs are looking to their commercial relationship managers for advice on how to structure and price their credit facilities.  We recently worked with a lender who…

In contrast to 2Q where the market overreacted (in retrospect) to tariffs, government cuts, and immigration reform, 3Q is built around a return to normal theme. Banks increased lending supply and credit performance remained stable. In this article, we will break down detailed commercial loan pricing data and highlight both trends and insights into 4Q….

For any business to succeed, managers need to understand their competitive landscape. What the competition is offering, delivery channels, pricing methods, and service levels helps community banks differentiate their offering and enhance their competitive advantage. Unfortunately, the competitive analysis for the broadly defined banking industry is challenging to understand because of the rapid innovation in…

In the trenches of the battle for deposits, banks have ratcheted up their tactics. While some banks pay customers a 4.25% interest rate for funds in a money market, other banks, such as Chase, Citi, Capital One, PNC, and others, pursue a tactic of offering a near-up-front cash bonus to open the account. In this…

When banks price loans, they stress the borrower’s ability to repay the loan under adverse credit conditions. For example, credit officers will underwrite to various interest rates, vacancy rates, revenue projections, EBITDA or NOI assumptions. However, most banks will not subject that same credit stress analysis to calculate that loan’s ROE. This is unfortunate because…