Correspondent Blog

Community banks are starting to embrace loan hedging as an effective tool for risk management, loan production, and fee income generation in commercial lending. These banks have concluded that using interest rate hedges on commercial loans has several benefits to the bank that include interest rate risk mitigation, credit enhancement, pricing discipline, increased borrower retention…

Community banks have historically generated less non-interest or fee income than larger lenders.  One reason for this is the lack of analytics on how fee income translates to revenue and profitability.  While there are many ways that community banks can increase fee income, one specific source of non-interest income should be particularly appealing to community…