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David Reed

Recent Posts

Does “Fees” have to be a Four-Letter Word?

Submitted by David Reed on September 16, 2019

Preparing for another Board meeting, studying the most recent Income Statement and reminiscing about the margins of days gone by...It used to be a lot easier to meet or surpass the board and/or shareholders' expectations.

The Federal Reserve rate was just reduced to 2.25% and as of August 1, 2019, the discount rate for institutions to borrow funds is 2.75%; however, all indications lead us to believe that there will be no further reduction this year.

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Risk vs. Safety: The Protection You Choose Against Loan Loss Due to Collateral Damage

Submitted by David Reed on May 31, 2019

A lender’s determination to extend a loan or not often depends on the value of the collateral and the stipulation that the borrower must maintain insurance coverage on said collateral. A lender must determine the loan to value ratio and what they could sell the collateral for in order to mitigate their loss if the loan defaults, and be assured that their interest in the collateral is always protected. The portfolio protection program your institution chooses can mean the difference in risk vs. safety for your loan programs.

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