Tag

Today we bring back a longtime friend of the show, Jack Hubbard from St. Meyer & Hubbard. Jack has trained and coached over 80,000 bankers, helping them become “resource managers” (not simply “lenders”) for their clients. We talk about what it will take for lenders to be successful in 2025, plus several other topics. The…

Today we feature the replay from our October 1st webinar, Finishing 2024 Strong: Keys to Loan Pricing and Production. CLICK HERE TO DOWNLOAD THE WEBINAR SLIDES The views, information, or opinions expressed during this show are solely those of the participants involved and do not necessarily represent those of SouthState Bank and its employees. SouthState Bank,…

Today we sit down with Sim Cheema, one of our ARC Program specialists with SouthState. Sim talks about the current state of interest rates, credit, CRE lending, and how to help your borrowers navigate the current environment. VIEW AGENDA AND REGISTER FOR THE ELEVATE FORUM HERE. The views, information, or opinions expressed during this show…

Deposit costs and liquidity remain a challenge for some community banks as competition for core funding remains intense.  The graph below compares the liquidity ratio for community banks (under $10B in assets) and banks over $100B in assets.  The average difference in liquidity is stark, but for many community banks the issue is translating to…

Most borrowers are implicitly expressing a view that interest rates will be lower in the future than the current market expectation. This view is reflected by a sharp decrease in the average contractual loan commitment term at community banks and an increase in floating vs. fixed rate structures. Borrowers are choosing short-term financing in anticipation…

As the risk of a recession gets pushed out by the market, so does the risk of credit. This is not to say bank credit is without risk, as higher rates, inflation, and a slowing economy have taken their toll. Three essential credit metrics – probabilities of default (POD), POD rate of change, and POD…

Several measurable factors drive loan (and, by extension, bank) profitability, including loan size, credit quality, term, cross-sell, and upsell.  In this article, we will consider how and why loan size is one of the most significant drivers of profitability for community banks and what community banks can do to improve performance. Relationship Between Loan Size…

Today on the show, Caleb sits down with Sim Cheema to discuss the current state of commercial lending. Sim works with both our commercial lenders here at SouthState, as well as our correspondent community bank customers. She helps them serve their borrowers through ARC, our loan hedging program. To learn more about the ARC Program, click…

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…

We estimate that approximately 50% of the community banks in the industry have a credit department that exerts influence or sets standards on loan pricing.  While this process appears appropriate and benign, it increases credit risk, decreases bank profitability, and undermines the proper function of bank credit/yield tradeoff.  Many bankers feel that since credit officers…

Today we sit down with Jack Hubbard, Managing Partner of The Modern Banker. With nearly 80,000 financial services professionals personally trained and coached, Jack is one of banking’s most sought-after facilitators. An author, classroom instructor, and thought leader, his expertise and out-of-the-box thinking put him in great demand when the subject matter is social selling…

On our loan hedging desk, we work with hundreds of banks ranging in size from just over $100mm in assets to some national banks with over $1T in assets. Combined with our relationship profitability model, Loan Command, we see the pricing of thousands of commercial loans per month as small as $30k and as large…