Loan Growth Strategies for Highly Competitive Markets

Posted February 24, 2016 by Andrew E. Morgan, Jeffrey L. Morris.

Experience has shown that nothing can move the needle on bank-wide profitability more than growth of the commercial loan portfolio — so long as credit quality is maintained. Jeff Morris and Andy Morgan, Managing Directors of Austin’s Financial Management practice area, presented Loan Growth Strategies for Highly-Competitive Markets, a webinar illustrating opportunities still exist that can provide meaningful growth without lowering a bank’s credit standards or creating additional interest rate risk.

Community banks continue to be challenged by the need for loan growth, particularly in commercial loan portfolios. Recent history suggests that this task has become significantly more difficult. Higher rates of growth are essential to offset unanticipated loan pay-downs and pay-offs created in part by the low interest rate environment and a weak economy. Strong borrowers, flush with cash, but lacking profitable new products or projects in which to invest are finding that the best way to improve their company’s bottom line is to pay down existing debt.

This webinar explored growth strategies for highly-competitive markets and provided recommendations for structuring new loans that will be attractive to high quality borrowers. We also provided guidance on best practices for determining ROE targets appropriate for a bank’s existing loan portfolio, balance sheet positioning, and current lending environment.

Webinar Highlights

Creating a Favorable Mix Variance (16:12)
Cultivating Existing Relationships (20:22)
Participation Loans (25:05)
Gathering Commercial Deposits (30:56)
Setting ROE Targets (34:10)

Dealing with Smaller Sized Loans (38:45)

Download the Presentation Slides Watch the Recorded Presentation Questions and Answers