ARC Program

ARC SUCCESS STORY

 

The Challenge

 

ARC Success Story - The ChallengeChristine, a senior lender, consistently receives long-term fixed rate requests from commercial borrowers. Her bank does not want the complexity of swaps or derivatives, nor the expense of other hedging options. She is justifiably unwilling to take the interest rate risk, so she is forced to structure a shorter term than the market demands. Christine recognizes many other banks are able to offer long-term fixed-rate loans giving borrowers cash flow certainty and she is struggling to protect existing relationships plus compete for new business. 

 

 

The Solution

 

ARC Success Story - The SolutionBetter than a swap, Christine begins using the ARC program to offer long-term fixed-rate loans without her bank carrying a derivative. ARC enables Christine to compete for high-quality transactions without term limitations so she may drive loan growth, enhance retention rates and tap a new source of fee income. She is also able to offer compelling features to borrowers such as loan assumability and rate portability from one loan or property to another. 

 

 

The Result

 

ARC Success Story - The ResultChristine booked $80 million in new loan business and $1 million in fee income through her first twelve months utilizing the ARC program. Her bank’s ROA increased by 36 basis points and she was able to offer no closing cost loans to a newly-defined target market within the owner-occupied medical community. Christine also witnessed an 80% decrease in her overall portfolio runoff, all through a lender-friendly hedging platform. 

 

 

 

CenterState’s Assumable Rate Conversion (“ARC”) Program allows your bank to utilize our data, expertise and balance sheet to allow you to offer long-term fixed rate loans to your customer while your bank enjoys a floating rate – all without hedge accounting, a derivative on your balance sheet or hedge management. How is that for an idea?

 

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ARC Hedging Program Benefits

Here is how your bank will benefit:

Testimonials

The ARC Program has a long list of happy customers that have used the product to compete with national banks, satisfy sophisticated borrowers and generate immediate fee income. Here is what customers have recently said:

"I wanted to thank everyone for their hard work, patience and diligence in making this closing happen.  The closing went very smoothly.  This was my first ARC loan, with more to come."

Lender at a SouthEast Community Bank

 

"This hedge experience was significantly better than ones I had closed at my previous bank, and I look forward to closing many more in the future.   Our new customer also mentioned how great this closing went and complemented our process versus the previous ones he had done at larger banks."

Lender at a NC Community Bank

"Your ARC continues to exceed my expectation for level of service and responsiveness.  Your ARC hedge program an excellent tool in defending our best borrower relationships from the national banks."

CLO at WA/OR Community Bank

"We closed a real estate transaction yesterday for $6mm using the CenterState ARC product.  My lending team was highly impressed with your rep’s professionalism and the seamless transaction for our customer.  I wanted to pass this on to recognize your efforts and how it helped us close this transaction."

CEO at a FL Community Bank

"This ARC product is great.  It allows us to compete for loans that we would otherwise not be able to book.  And the fees we generate is making the bank substantial amount of money."

CEO at OK and TX Community Bank

 

  

 

If you are a potential customer that is in the final stages of due diligence, all the above contacts plus more can be made available to you so you can speak with bankers like yourself that are using the product to achieve their goals.

 

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