pricing and profitability Posts

Taking a Deposit Neutral Approach in Relationship Pricing

Posted on September 28, 2021 by John Robertson

The flattened yield curve has created a perplexing scenario for credit being applied to deposits. Operating expenses for deposits on average differ significantly due to the activity and processes put into place to manage the transactions. Demand Deposit Accounts (DDA)...

7 Strategies for Achieving Balanced Loan Growth – Parts 3 & 4

Posted on May 7, 2021 by Baker Hill

On our blog, we’ve been covering different strategies for balanced loan growth. Today, we’re going to give you parts three and four in one! If you need to, you can find part one and part two to get caught...

Understanding Your Customers to Drive Profitability

Posted on September 28, 2020 by Baker Hill

Today, most financial institutions do not know the profitability of their customers – and they need to. To weather the economic downturn, banks and credit unions need to understand their profitability. On average, only one out of every three...

Funding with a Flat Curve

Posted on May 6, 2020 by John Robertson

Recently, we have heard a lot about flattening the curve but what do you do with pricing when dealing with a flat loan yield curve? It’s not as if we haven’t faced this before but it has been some time,...

Don’t Let the Pandemic Be a Death Sentence on Branch Profitability

Posted on April 17, 2020 by Jeff Dwornicki

There is an old story about the new CEO of a community bank with four branches. As he reviewed the profitability, he saw he had one branch doing very well, two barely profitable, and one doing poorly. He thought he...

Business Analytics is Part of the Full Lending Performance Cycle

Posted on February 14, 2020 by John Robertson

On several occasions I’ve spoken about the “Full Lending Performance Cycle” (FLPC). This cycle is comprised of several steps aligned with the origination process and aftermath when evaluating a portfolio. One tool for evaluating the portfolio is business analytics. As...