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
Bank Earns Floating While Borrower Receives Fixed
Allows the bank to offer unique options
Fixed rate terms out to 20 years
Forward rate locks