Loan Pricing Strategies That Deliver

Loan Pricing Strategies That Deliver

As interest rates continue rising, community financial institutions that take a more strategic and data-driven approach to loan pricing and portfolio management will stand to benefit from the strengthening economy. Loans are one of the most profitable ways to leverage an institution’s funds, so banks and credit unions with an extensive understanding of their loan […]

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Funds Transfer Pricing – Simple Can Work

Traditional sources utilize the institution’s individual loan account interest rates compared to an overall cost of funds; while the institution’s individual deposit account interest rates compared to the overall yield.  In this methodology, deposits are evaluated as a single source of funds and loans/leases are evaluated as a single use of funds.  Each pool is […]

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The End of the Educated Guess – Part Three

The End of the Educated Guess – Part Three

Lenders already have practices and policies in place to govern ALLL, so all that really has to change are the inputs—and the way organizations think about estimating losses. The fundamental concept, however, is the same: take all reasonable steps to predict the future state of the portfolio. Larger organizations as a whole are better positioned […]

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