CenterState Bank provides a proven hedge solution to community banks.
The hedge solution is called the Assumable Rate Conversion ("ARC") Program, and is a proprietary turnkey process for community banks. ARC eliminates the need for swaps or other derivatives on a lender's balance sheet. ARC, through a simple document, converts a fixed rate payment from a borrower into a floating rate asset for a community bank. ARC can accommodate various types of loans and structures and allows borrowers to repay the loan at any time without a prepayment penalty. In addition to ARC, CenterState Bank will also provide C&I loans and a loan processing platform to WIB associate banks.
"We are very excited to enter into this partnership with CenterState Bank and feel their hedging services should be considered by our WIB member banks when looking at their lending strategy," said Michael Delucchi, President and Chief Executive Officer of WIB and WIB Service Corporation. "Given where interest rates are in the cycle and the threat of rising rates, we felt this was an ideal time to make this innovative program available to help banks grow loans while managing both interest rate and credit risk."
"We're ecstatic to expand our relationship with WIB and its member banks," said Chris Nichols, Chief Strategy Officer of CenterState Bank. "Our research shows that a majority of commercial borrowers want to lock in ten and fifteen-year fixed rate debt obligations, but few community banks offer this product. The ARC product allows a fixed-to-floating rate conversion utilizing our balance sheet and expertise in interest rate risk management."
About Western Independent Bankers and WIB Service Corporation
Established in 1937, Western Independent Bankers (WIB) is the premier networking and educational organization for community banks in the West. WIB informs, educates and connects community banks with the resources and services to achieve the highest standards of personal and organizational performance. WIB Service Corporation was established in 1994 by the WIB Board of Directors as a wholly owned subsidiary of WIB. WIB provides a due diligence summary package on each of its Premier Solutions Providers to WIB Member Banks upon request. For more information, visit www.wib.org.
About CenterState Banks
CenterState Banks, Inc., headquartered in Davenport, Florida, is a financial holding company with one nationally chartered bank: CenterState Bank of Florida. The Company operates through 74 branches operating in 22 counties throughout Florida, providing traditional deposit and lending products and services to its commercial and retail customers. The Company also provides correspondent banking and capital market services for approximately 600 community banks nationwide.
For more information on the Assumable Rate Conversion Program (ARC) visit: