Tag: Loan Origination

How Your Bank Should Take Advantage Of Falling Energy Prices

Tie energy and savings together

Falling energy prices have been front and center in the headlines lately, which is a good thing for retail-oriented banks. Experienced retail bankers understand that consumers often react to lower energy prices by treating it as a windfall and increasing their savings rate. Statistically, the correlation over the last 5 years is that energy prices explain approximately 68% of the savings rate – a correlation that is exceedingly predictive. The question is, what is your bank doing to take advantage of this trend?

 

Use This Loan Barbell Tactic To Book More Loans

Bank Loan Origination Tactic

Some community banks are seeing broad challenges in trying to book and maintain quality loans.  These challenges include borrower demand for long-term fixed rates, general lack of qualified borrowers, and intense competition from multiple lenders (including banks, credit unions, insurance companies and alternative financial institutions).  We would like to share a specific loan origination and portfolio tactic that has worked for banks of various sizes and has been successfully deployed by community banks across th

Marketing Help for Your Lending Team: The Loan Proposal Generator

Loan Marketing: Loan Proposal Generator

In the course of our work with community bankers, we deal with hundreds of banks across the country and talk to thousands of lenders.  Competition is intense and every lender is looking for an advantage against the national or regional bank.  A better product, faster service, or insightful advice can translate into additional loans, better spreads or additional fee income.

The Cost of Waiting to Make That Loan

Loan Decisioning

Every day, there is a banker somewhere in the country that declines to make a low margin loan for fear of hurting the profitability of the bank. While we have discussed in the past (HERE) why that lower margin loan you are giving up may be more profitable than a higher margin loan (especially where that loan is an existing customer that is looking to refinance), today we look at the math in order to give bankers a quantitative framework for making that decision.

Past Patience – How Banks Might Want To Adjust Lending Strategy

Bank ALM Positioning

Federal Reserve has finally broken the patience barrier.  The Fed has said in its official policy statement since December of 2014 that it will be patient before raising the rate.  In dropping the promise to be “patient” before acting, the Fed opens the door to a discussion about a rate increase at its June meeting.  Now, several members have noted that they want that option if the economy holds up between now and then.  Officials also made it clear in recent interviews and public speeches that they want to move awa

Here Is Our Commercial Lender Cheat Sheet To Teach How Banks Stack Up Against Competitors

Bank Loan Competition

We often hear banking customers explain that competition is intense for quality (and sometimes even marginal) lending opportunities.  Some banks even make fatalistic arguments that community banks cannot compete against life insurance companies or conduit lenders because of price or structure.  We do not agree and attempt to prove it every day here at CenterState.

Creating Loan Value: The Construction Through Permanent Loan [Video]

Construction Loan Profitability

A flaw in many bank’s loan production process is calculating the profitability of a non-owner occupied construction loan that is for investment purposes. These are developer-led projects built for investment and thus subject to construction and market risk. Banks that measure the wrong metrics and don’t have a robust risk management process in place are doomed to create construction loans that detract from shareholder value. The problem is many banks and boards are not aware of this risk.

Smart Loan Officers Use This Tactic To Book More Loans

Loan Performance

If you want to win more loan business here is a tactic that experienced bankers know that many loan officers don’t. This should be part of every loan officers training (we work it in) and is handy to have in your back pocket for those rate-focused borrowers.

 

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