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How community banks can regain the small business lending market

Bess Patton
Posted by Bess Patton

In today’s banking world, community banks are focused sharply on shareholders’ expectations for growth in earnings and return on equity. So, how can community banks support earnings and ROE growth in the face of intense regulatory scrutiny and competitive pressures on profitability? By leveraging their strengths in relationship lending and…...

Marketing tips for credit unions

Marin Goodwin
Posted by Marin Goodwin

In March 2018, the Credit Union National Association (CUNA) held the 25th Annual CUNA Marketing & Business Development Council Conference in San Francisco. At this conference, they held a “Tech Talk” session that “digs into the intersection of marketing and technology.” Here are some takeaways: Embrace marketing automation During the…...

Top five resources for CECL and navigating the transition in 2018

Amanda Rousseau
Posted by Amanda Rousseau

The Current Expected Credit Loss (CECL) model, otherwise known as the “biggest change to bank accounting yet”, goes into effect in 2020 for banks that file with the Securities and Exchange Commission (SEC) filers and in 2021 for all other financial institutions. The change impacts all financial institutions, including community…...

Benefits of community banking

Kylee Wooten
Posted by Kylee Wooten

There’s a lot to celebrate in April. From National Canine Fitness Month, National Soft Pretzel Month and National Community Banking Month. As much as we love our dogs and our soft pretzels, we’re especially excited to highlight our community banks. When we began Sageworks, our mission was to help small…...

Loan pool segmentation: Standing pat or making changes for CECL?

Amanda Rousseau
Posted by Amanda Rousseau

Proper loan pool segmentation, already a critical issue in the incurred-loss method of calculating the allowance for loan and leases losses (ALLL), is expected to have even more importance under the current expected credit loss model, or CECL. Various methodologies for forecasting expected credit losses will require specific kinds of…...

Boost lending without adding staff: Sageworks client featured in American Banker

Mary Ellen Biery
Posted by Mary Ellen Biery
provide advisory services to accounting clients

Sageworks client Millennium Bank in Ooltewah, Tenn., was featured recently in American Banker for its use of technology to increase lending without hiring more lenders. “Many small banks that lack the resources to hire more lenders have made similar investments in recent years in an effort to compete with not…...

Managing the bank with a forward view

Mary Ellen Biery
Posted by Mary Ellen Biery

Dealing with the day-to-day challenges of operating a community bank can keep top management “in the weeds” of lending or credit operations. This can leave little to no time for surveying the entire “field” of the portfolio, its risks and its impact on the institution’s financial results. It’s the same…...

Field-of-membership judgment hearing results in mixed ruling

Marin Goodwin
Posted by Marin Goodwin

A judgment hearing on March 29 related to the National Credit Union Administration (NCUA) recent field-of-membership (FOM) rule resulted in a mixed ruling. The hearing was the next step in a lawsuit filed by the American Bankers Association, which alleged the NCUA overstepped its authority in issuing this comprehensive reform…...

For more efficient lending, do this, not that

Mary Ellen Biery
Posted by Mary Ellen Biery

Booking new loans can translate into increased earnings for community banks, so long as financial institutions are efficient in how they obtain, underwrite and onboard those loans. Small business loans, in particular, can contribute to an improved bottom line if an institution can increase the loan volume while booking those…...

CECL for community banks: The practical path recap

Amanda Rousseau
Posted by Amanda Rousseau

Sageworks Senior Consultant Tim McPeak and Implementation Consultant Danny Sharman recently shared practical tips for community banks facing the CECL transition. The session included a good overview of CECL expectations and followed up on points discussed in an earlier regulatory webinar. Approaches All banks, including small, non-complex community banks, will…...