Competition for commercial loans has been incredibly intense as community banks, regional banks, credit unions and fintechs battle to expand their commercial loan portfolios in a low demand, high liquidity environment. Now, the Federal Reserve has announced its intention to raise rates another six times this year after making its first twenty-five basis point increase…
read article →LoanPricingPRO® can easily replace your legacy solution. If your current software is outdated or being retired, migration to LoanPricingPRO® is quick and easy. Your model comes configured with institution specific cost and profitability assumptions, as well as return on equity targets. Full relationship profitability and a core data interface are also part of our base solution….
read article →Most large banks book negative provisions in Q4’21 A strong economy and near-pristine credit quality enabled large U.S. banks to book negative provisions in the 2021 fourth quarter.
read article →Ensure your loan pricing model is calibrated with bank specific assumptions that drive real results. Loan pricing software is only as good as its assumptions. Over time, as your institution evolves, these assumptions can potentially become stale. Our Tier II Cost & Profitability Analysis is designed to eliminate this risk. This annual analysis will ensure all of…
read article →Since the rapid onset of the novel Corona Virus striking US and global financial markets, benchmark interest rates have fallen sharply. Over the past month US Treasury rates for 5 and 10 year securities have quickly moved to historic lows. If your institution is using unadjusted US Treasury rates as proxies for market based cost…
read article →Many thanks to our new and continuing clients – we couldn’t do it without You! LoanPricingPRO® software, the commercial loan pricing system from ProBank Austin, had its best year ever in 2019, experiencing client utilization growth of 21%, following solid growth of over 10% in 2018. Growth was fueled by both new clients signing…
read article →Jun 2019 by Andy Morgan Essential Concepts in Pricing Loans Imagine this scenario. You’ve purchased loan pricing software. Your team is excited to implement the model to help drive commercial relationship profitability. You install the model, login for the first time, and then the questions start popping up. Where did these assumptions come from? Why don’t…
read article →Essential Concepts in Pricing Loans Relationship profitability is an important metric within most pricing models. While it is important to understand the profitability impact of individual new loans, it is crucial to understand how the pricing decision on a new credit will impact the profitability of the entire customer relationship. These relationships often include deposit…
read article →The team at LoanPricingPRO® is excited to launch the new Microsoft WPF Desktop Edition. WPF is a mature technology for line of business desktop applications. This new version of LoanPricingPRO® can be installed on any Windows device, including popular tablets like the Microsoft Surface. Existing LoanPricingPRO® users will find the user interface to be very…
read article →The Federal Reserve continues to gradually tighten monetary policy and increase the Fed Funds Rate. At the same time, the long end of the curve, while flattening over the last 12-months, has also risen. This has helped increase loan yields, but not nearly to the same magnitude as market yield curves. A while back, we…
read article →With the recent passage of the Tax Cuts and Jobs Act of 2017, now is the appropriate time to review the tax rate assumption in your loan pricing model. It is easy to update this key assumption, but you should also carefully consider the impact of a tax rate change on the other configuration areas…
read article →Commercial lending executives often identify two perceived barriers to implementing state‐of‐the‐art commercial loan pricing systems. Cost ranks as the primary objection followed closely by a lack of familiarity with the software’s benefits. Like many other challenges and barriers that may be encountered, there are effective solutions to overcome your concerns with attaining an appropriate Return…
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