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.
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.
- $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