Latitude38 Venture Partners’ Post

The #ACTDepositProgram is the perfect match for institutional depositors looking for a safe, socially responsible way to deploy extra cash and CDFIs/MDIs looking for liquidity. Read American Banker’s story below and learn more here: https://lnkd.in/eHGmFJVe.

When a giant in our industry asks me to comment, I'm grateful. This time, it's BAI, the financial services industry voice with a powerhouse team. Thanks, BAI, for discussing my favorite topic - community banking. This time we are focused on the commercial real estate sector. Community banks work tirelessly to support local communities, meet regulations, and deliver shareholder value. It's a tough balance, and that's why I have immense respect for the industry. Read more about it here: 👇 #communitybanks #cre #realestate

Interesting read from the 11:FS team on the 3 key ways they believe North American community banks can capitalize on how they are changing lives by funneling savings to people who need capital to buy property or set up and grow local businesses - and use this to increase their market share and compete with the big banks in the US. One of the ways is to keep pace with SMBs, which I think is more than needed - since SMBs need all the help they can get in running and growing their business. Read more here:👇🏻 https://lnkd.in/eRhbTnWw #communitybanks #digitalbanking #SME

Minnesota's community banks are more than just financial institutions – they're pillars of support, offering guidance for small business owners to help bolster their local economies. Community banks support small businesses in many ways: 💲 Access to capital – Community banks empower businesses to expand operations and realize their potential by providing vital access to capital through loans, lines of credit, and other financial services. 🧠 Local knowledge – Community banks intimately understand the local economy and specific needs of small businesses within their communities, allowing them to offer insights into market conditions, regulations, and other factors critical for new business success. 🙂 Personalized service – Community banks pride themselves on personalized service, building relationships with small business owners based on trust and understanding, and providing tailored solutions. 🤝 Networking & resources – Community banks facilitate connections with other local business leaders and organizations, promoting a network of support within the community. By choosing a community bank as your financial partner, your small business gains not only access to capital, but also a trusted ally invested in your success. Find your community bank: www.bankinmn.com #communitybankingmonth #communitybanking #smallbusiness #smallbusinesslending #newbusiness #banklocal #bankinmn

Have you made the switch to community banking yet? We would love to work with you here at First State Bank and Trust! #fsbt #communitybankingmonth

Interesting read if you're in or looking to move into the Community Banking arena. "While the biggest banks are getting bigger, the smallest are growing too. Community banks, which typically have less than $10 billion in assets and a concentrated footprint, grew deposits by about 1% in the third quarter from a year earlier. Credit unions grew deposits by a similar amount. Their loan books grew by 10% and 9%, respectively. Both far outpaced the broader banking industry, according to federal data." https://lnkd.in/gjdW5Y6N

Right now, many community banks and credit unions are living in a ghost story – it's about phantom growth. It goes like this: you advertise a new high-rate CD to attract deposits, but your margin is razor thin. Then the bank down the street beats your APY and the deposits disappear. It's time for a strategy that delivers real deposits, real margin, and real engagement. We’re putting an end to phantom growth, find out how. https://lnkd.in/dyxvC6hp

New York Community Bank (NYCB) has set a new benchmark in the banking sector by offering an unprecedented 5.55% annual percentage yield on savings accounts through its online service, My Banking Direct. This rate is currently the highest nationally available, surpassing offerings by both established and emerging banks. The move comes after NYCB required a significant capital injection earlier this year, following unexpected losses on commercial real estate loans and a resulting drop in stock prices and deposit levels. The decision to increase interest rates significantly seems to be a strategic effort to attract deposits and stabilize funding. Analysts suggest that the aggressive rate might indicate underlying funding pressures, as smaller banks have been compelled to offer higher rates to compete with giants in the industry, especially after recent regional banking crises. This strategic decision marks a pivotal moment for NYCB as it navigates through its financial recovery, underscored by leadership changes including the appointment of Joseph Otting as CEO. The banking community will be watching closely how this bold move will impact NYCB’s position in the competitive banking landscape.

It’s amazing to me how an economy which is made up of over 90% of small businesses does not properly serve their needs. Startup founders and new immigrants who are not welcome to bank from institutional FIs because they pose higher credit risks, are then relegated to alternative lending with much higher interest rates. It is a discussion I have with many founders. I used to work in the big banks and the brainstorming sessions we had to creatively grab more incremental revenue from the consumer was one that was incentived over and over. It started with a performance reward for those who can up with the idea that brought in millions by making one tweak to an existing scenario. Ultimately this celebration would be short-lived as the one consumer, who read the entire terms and conditions, called out the bank for improper disclosure. The bank customers won this round. But how many of these practices go unchallenged? The systemic issues we face today are long standing practices that have persisted because it worked for the bank… but ultimately has not served the evolving needs and new customers at the door. So much more to say… Thanks Theo for a thoughtful read!

We feel the same, Christopher Williston VI, CAE. Kudos to The Baker Group and IBAT. Very comforting to see such strong passion, leadership and commitment to the future of our vital community banks. #communitybanking #regionalbanking #IBAT #visibility #strategicvisibility #communitybank #risk #finance #fintech #opportunities #riskmanagement #ERM #ECRM #engagement #banking #CFO #enterpriseriskmanagement #CECL #credit #creditrisk #creditriskmanagement #CRO #compliancerisk #compliance