Tag: ARC

Case Study: How To Win More Loan Business

Improving Loan Production

We work on thousands of lending transactions every year with hundreds of community banks across the country.  We participate and help structure financing on commercial real estate, C&I and Ag properties ranging in size from a few hundred thousand to over $100mm, and we collaborate with community bank lenders and underwriters that span the whole gamut of experience.  We witness the good, the bad, the ugly, and occasionally the very bizarre in bank marketing, under

Derivatives Are Tough But Hedging Is Easy (Get Our Documentation)

HEDGING OR DERIVATIVES FOR BANK LOAN GROWTH
HEDGING FOR LOAN GROWTH

With a flat and low yield curve, borrowers’ demand for long-term fixed-rate loans is high.  Furthermore, based on the forward market and most analysts’ predictions, the yield curve is expected to stay low and flat in 2020. The difference between five and ten-year loan rates is currently only nine basis points, and the difference between five and 20-year loan rates is 21 basis points.

How Your Bank Can Pick Up 40 Basis Points of Margin

Improving Net Interest Margin
IMPROVING MARGIN

Community banks face intense competition from different institutions and various industries.  There is currently a market phenomenon that is creating an unusually challenging environment for community banks that compete for real estate financing. This phenomenon is creating an advantage for some lenders in the amount of seven to 42bps, and community banks must be aware of this aberration if they want to win more quality borrowers.

 

Swap Spreads

 

Should Your Bank Have A Long Term Fixed-Rate Loan Program

More Competitive Lending

In the last few months, more than a dozen bankers have reached out to us about the merits of a fixed-rate loan program. Up until a few months ago, we didn’t know that the industry had started coining the term “fixed-rate loan program.”  We always assumed that banks made loans that borrowers needed, whether fixed-rate, adjustable-rate, or some form of hybrid.  Now, this seems to be a thing and we, not surprisingly, have an opinion on the matter.

How To Generate More Revenue and Satisfaction with an Inverted Yield Curve

a LOAN TACTIC TO IMPROVE REVENUE AT YOUR BANK
A LOAN TACTIC TO IMPROVE REVENUE

You cannot read a financial paper, business feed, or watch financial television without someone mentioning yield curve flattening and inversion. Google searches for “yield curve inversion” are at their highest level ever. What is all the fuss about, and why should bankers care? We will explain an innovative way that bankers are using the current yield curve to protect existing relationships, increase yield and generate non-interest income, and we will use a recent case study to highlight the specifics loan terms and results.

 

Background

 

Learning from Other Bank’s Commitment Letter Mistakes

Better Term Sheet Practices

One of the best ways to become a better banker is to pay attention to your competition and analyze their strengths and weaknesses.  We pay particular attention to term sheets and commitment letters from other banks to learn what other banks are doing well and where they make mistakes.  We intend to capitalize on competitors’ weaknesses and to learn to address and respond to other banks’ strengths.  We recently reviewed a term sheet that we thought highlighted some in

The Cost of Swaps For Banks

Developing Lending Tools

We believe all banks should have a hedging program to manage interest rate risk while providing a variety of loan structures to satisfy the borrower’s, not the bank’s needs.

Making Constructions Loans Much More Profitable

Increasing Lending Profitability

Let’s Make a Deal was a game show that originated in 1963 and starred Monty Hall. Audience members were offered a gift and then asked if they want to trade it for another gift of unknown value. Hilarity ensued when we watched people trade luxurious Hawaiian vacations for a pack of goats.

Pages

Subscribe to Tag: ARC