Correspondent Blog

The crucial factor in delivering value to your shareholders is first delivering value to your customers. Most community banks understand that simply delivering lower price or looser credit standards can deliver value to customers, but over the long-term it dilutes value to shareholders. However, the empirical data shows that the majority of banks fall into…

During a regulatory exam, one of the first questions you will be asked these days is your percentage of uninsured deposits to total deposits. The concern is grounded in the SVB/First Republic 2023 liquidity crisis and data that shows higher balance accounts are more interest rate and risk-sensitive than lower balance accounts. In this article,…

In a previous article (HERE), we discussed how a portfolio of commercial loans with various expected average lives resulted in different net present value (NPV) of income over a ten-year period.  Our analysis shows that an average community bank can expect $9.7mm NPV of income (about 1% ROA) on a $100mm loan portfolio when the…