Banker To Banker

How to Use Fees In Lending To Offset a Flat Yield Curve

Increasing Profitability in Commercial Lending

As the yield curve flattens, the difference between Prime and ten-year fixed commercial loans rates gets smaller.  Community banks face a dilemma in how best to manage interest rate risk – which affects both the bank and the borrower.  Banks are further challenged to offer loan structures that maximize their competitive advantage and differentiate their product from multiple competitors.  We see one specific strategy that community banks are deploying that utilizes upfront non-interest income in structuring owner-occupied and investor CRE term loans for ten to 20 years, eliminating both the

How To Use “Specials” And Odd-Month CDs in Deposit Structuring

Better Deposit Pricing

It seems like something is getting lost in the tribal knowledge of deposit gathering. Certificate of deposit (CD) “specials” and the odd-month CD offering are a good example of this. As the legacy knowledge of deposit gathering is passed down from generation to generation of banker, some of the finer points of liability structuring are getting bastardized with some knowledge just plain forgotten about. In this article, we highlight how many banks are misusing CDs at the detriment of their balance sheet plus offer some recommendations.


Winning Email Subject Lines For Lenders

Better Bank Email Marketing

More bankers rely on emails than phone calls and in-person visits to communicate with, and market to, their customers and prospects.  Unfortunately, what may work in person may not translate well to email communication.  We see thousands of emails from hundreds of commercial lenders every year, and we want to share some best practices for email subject lines for initial marketing and ongoing emails.


Moving From Agile To DevOps In Banking Culture

Faster New Idea Execution

Since technology permeates everything we do, it is no surprise that engineering and development methodologies used in information technology (IT) diffuse into other areas of the bank. In the 1980’s the “waterfall” methodology went mainstream and management organized new products, processes, marketing campaigns and everything else around the concept. By 2000, “agile development” was all the rage. Now, in 2018, “DevOps” is the latest management development methodology.

How Using The 10-5 Rule In Banking Sets A Cultural Tone

Recently, at our annual Bank Management Conference, the Ritz-Carlton Leadership Team came in to help bankers improve their customer experience. As you might guess, most of their suggestions were around hiring, training, accountability and setting high standards. In this article, we want to highlight one tactic, called the “10-5 Rule” that many hospitality, healthcare companies, and banks employ to improve customer service.


The 10-5 Rule Explained


Here Is The Latest C&I and Owner-Occupied Real Estate Credit Trends

Credit Trends in the US

As they say, bank performance follows credit.  Right now banking is good because credit is good.  Credit performance for the second quarter of 2018 improved over the first quarter. While investor commercial real estate has seemed to hit is high point back in 2Q of 2017, C&I and owner-occupied real estate continue to improve. According to our analysis derived from Paynet data, the average probability of default (POD) for small and mid-sized businesses was 2.28%, a decrease of 3.8 basis points, or 1.7% improvement over last year.

The Ultimate Refinancing Tactic That Smart Banks Are Doing

Protecting Your Borrowers From Refinancing

Given smokin’ hot production numbers, record low employment and the Fed meeting, many borrowers are concerned about the prospects of rising interest rates and the resulting higher loan costs. Not just that, tax reform has made many loans easily refinanceable. As a result, many borrowers are facing a dilemma – do they keep their existing loan to maturity or refinance now and extend out maturity? In this article, we take a look at one little-known tactic that will set your bank apart from the competition.


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