![](https://southstatecorrespondent.com/wp-content/uploads/2023/02/Testimonial-4-25-e1677207757581.png)
The Challenge
This community bank was looking for a new tool to boost both loan production, fee income, and their overall ability to compete in their markets.
![](https://southstatecorrespondent.com/wp-content/uploads/2023/02/Testimonial-4-24-e1677207828331.png)
The Solution
Adopt the ARC Program: ARC allows a community bank to offer up to 10-to-20-year fixed rate commercial loans, while the bank earns a floating rate on their balance. All without any hedge accounting or reporting headaches that come with a traditional interest rate swap.
![](https://southstatecorrespondent.com/wp-content/uploads/2023/02/yes.1-e1677207984553.png)
The Results
- $120 Million New CRE Loan Production
- ARC contributed 20% (on average) of the bank’s annual loan growth
- $2 Million Fee Income Generated
- ARC increased the bank’s non-interest income 15%
- No turnover on ARC loans since program was adopted
Why ARC?
![Bank Earns Floating While Borrower Receives Fixed Icon](https://southstatecorrespondent.com/wp-content/uploads/2020/11/icon_balloon-1.png)
Bank Earns Floating While Borrower Receives Fixed
![Allows the bank to offer unique options Icon](https://southstatecorrespondent.com/wp-content/uploads/2020/11/icon_sheet-e1676662278332.png)
Allows the bank to offer unique options
![Fixed rate terms out to 20 years Icon](https://southstatecorrespondent.com/wp-content/uploads/2020/11/icon_lock.png)
Fixed rate terms out to 20 years
![Forward rate locks Icon](https://southstatecorrespondent.com/wp-content/uploads/2020/11/icon_grow.png)
Forward rate locks