Correspondent Blog

In two articles in the past few weeks (here and here), we discussed how the “higher-for-longer” interest rate environment will affect the community bank sector – continued increase in the cost of funds (COF), steady yields on loans, and a decrease in net interest margin (NIM) will put severe pressure on ROE for new loan…

It is counterintuitive that you might want to advise borrowers to do a loan refinancing at this stage of the interest rate cycle.  The FOMC has raised short-term interest rates by 3.75% in the eight months between March and November.  The market is now forecasting an additional 1.25% in hikes by early next year.  Borrowers…

The most common question we hear from borrowers is, “Should I refinance my debt?”  This can be a difficult question for lenders to answer, but as a trusted advisor, every lender should understand the strategy, and the process to answer that question for every client.  We will address the knowledge that commercial lenders must have…