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Sageworks’ clients show above-average loan growth

August 21, 2017 

Today Sageworks, a financial information company that provides lending, credit risk and portfolio risk solutions to U.S. banks and credit unions, released a report detailing how institutions that use Sageworks solutions have performed compared to peer banks. Key results show that, on average, Sageworks’ banks have achieved 38 percent higher loan growth over the last 5 years.

The Sageworks platform equips bankers to automate manual steps, including data entry, to streamline the life of the loan. With faster loan turnaround time and efficiency gained by an integrated system, Sageworks’ client banks have been able to efficiently grow.

Using publicly available data published in FDIC call reports, Sageworks analyzed the financial performance of its community bank customer base relative to other community banks in the market. Specifically, the analysis looked at the last five years, 2012-2016, and average changes in performance over that period.

In addition to loan growth, the study examined average yield on commercial loans for Sageworks’ clients versus other banks. On average, Sageworks’ clients have achieved 12 basis points higher yield on commercial loans – the portfolio for which most institutions use Sageworks software.

The study also analyzed average change in efficiency ratio over the 5-year period. During that time, Sageworks’ clients improved their efficiency ratio 2X relative to improvements among other banks, while also increasing loans per employee by 30 percent. Part of this efficiency gain can be traced to paper and printing costs, where Sageworks’ clients saw an average 38 percent decrease in costs over the last 5 years.

“Sageworks was founded with the goal of helping small businesses succeed, and community banks and credit unions are major players in helping SMBs meet their financial objectives,” explains Sageworks President Jay Blandford. “I’m sure there are other factors at play here that have helped our clients toward this success. Yet we are excited to see how we are enabling these community institutions to grow their local economies and spend more time with their borrowers than in spreadsheets.”

For the full story featuring Sageworks, visit Community Bank Insight – Sageworks’ clients show above average loan growth