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We were recently collaborating with a community banker who was trying to win a relationship client from a regional bank. The issue was that the incumbent bank was pricing this client at a credit spread of 1.25% over SOFR and our client banker was told that his bank would not accept less than 2.40% credit…

In last week’s article (here), we discussed why category and geographic diversification may be unfeasible for many community banks.  We concluded that after a community bank sets limits on loan categories, the added benefit of geographic or loan category diversification is nullified.  We discussed three main reasons why community bank diversification by geography and loan…

Since our last update on 2Q credit HERE, 3Q commercial loan pricing trends start with a better economic picture as higher than-planned growth and softer inflationary data have changed part of the market’s outlook. The fear of recession has decreased in 3Q, and the new primary concern shifts back to interest rate risk and deposit…