Items include
economy
Economic Indicators
Jun 15, 2022
The FOMC raised its benchmark interest rate by 75bps to a new target range of 1.50%-1.75%. This is the first 75bps increase since 1994. The Fed plans to continue to reduce its balance sheet by $47.5 billion a month, as...
Apr 10, 2024
Once again, economic data is filled with sunshine, but general market sentiment continues to function as cloud cover. We discuss consumer sentiment, the housing market, and the general economy.
Apr 17, 2024
Taylor Swift’s popularity extends well beyond her Eras Tour, with her fans providing a boost to businesses that don’t even have a direct connection to the tour. The benefit to small businesses could also spill over to their community bankers.
Mar 27, 2024
Financial institutions dealt with economic uncertainty, higher interest rates, more expensive funding, lower loan demand, and concerns about credit quality in 2023. Yet they continued to grow loans overall. There are some indicators that the lending market could begin growing again. We discuss what factors would contribute to this change.
Mar 11, 2024
Private equity firms and other private investors are showing more interest in CFI deals. We detail what CFIs should consider in the event a PE offer arrives and how to prepare if your CFI accepts a PE investment.
Feb 14, 2024
Although the Fed has kept interest rates steady since mid-2023 and may cut them sometime this year, they’re still the highest they’ve been in many years, and they continue to impact small businesses across all industries. We discuss three ways in which CFIs can support their small business customers as they navigate the high interest rate environment.
Feb 8, 2024
Every economic downturn creates both pain and opportunities. Rather than scaling back or doing nothing, CFIs should consider adopting strategies that will position them for growth when the economy inevitably recovers. We discuss five places to invest during a downturn that can provide you with good return on investment
Feb 1, 2024
According to a new NFIB survey, pessimism prevails among small business owners. We discuss the challenges that small businesses noted in the survey and the potential impact on CFIs.
Jan 24, 2024
Economists are predicting a downturn in consumer spending this year along with a slowing economy. We discuss strategies CFIs can use to prepare themselves and their small business customers for the impact.
Jan 18, 2024
Contrary to popular belief, the Global Financial Crisis in 2023 didn’t happen — and likely won’t happen in 2024. We detail topline reports summing up year-end data and share expectations for the market this year, particularly for the banking sector.
Dec 12, 2023
We interviewed industry expert and PCBB’s President Mike Dohren about the key trends CFIs should look out for in 2024, including increased cyber risk, funding and liquidity struggles, and credit quality.
Dec 29, 2023
In this final holiday reprint, we return to the topic of economy from this March 28 article: There are more ways than one to discern whether the US economy is in or headed for a recession. Instead of looking for the usual suspects, here are eight unconventional indicators that a recession is coming.
Dec 11, 2023
2024 looks to be another challenging year. We discuss ways that CFIs can continue to grow and sustain profitability in an uncertain world by optimizing the value of their tech spend and data, pursuing key growth areas and revenue streams, and focusing on leadership and talent.
Dec 5, 2023
Over the past year, the financial sector has had to navigate many disruptive forces. In two back-to-back articles, we look at the challenges faced by CFIs and the opportunities that have emerged during 2023. In this first article, we explore how CFIs have responded to economic uncertainty and inflation, intensified competition for deposits, and shaken consumer confidence in the banking industry.
Nov 9, 2023
CFIs face tough economic challenges led by rising interest rates. Finding a way forward may require strategic partners. We discuss M&A trends from 2023 and why consolidation might be a solution.
Oct 2, 2023
Economic predictions from the experts are all over the map, ranging from a soft landing to a recession to a boom in GDP. It all poses a difficult environment in which to plan for the near future.
Aug 7, 2023
Colleges are often a key economic driver for their surrounding towns and cities because they attract spending power, encourage innovation, and drive demand. We explore these drivers and discuss some of the opportunities available for CFIs in college towns.
Apr 12, 2023
The economic market presents both challenges and opportunities for CFIs. From interest rate increases and talent shortages to loan demand and digital transformation investment, we dive further into both.
Dec 15, 2022
We interviewed PCBB’s President, Mike Dohren about the key trends he expects CFIs will need to look out for in 2023, including the impact of a slowing economy, the continued rise of disruptive tech, and key regulatory changes.
Dec 20, 2022
Fourteen years of near-zero interest rates may have lulled CFIs into complacency. Shifting gears with the recent rise in rates means CFIs need to adjust to both the immediate and longer-term implications. As CFIs adapt to the new rate environment and its impact on net interest margins, we provide some thoughts to consider.
Jan 3, 2022
As we kick off 2022, let’s look ahead at some of the key economic, regulatory, and market trends that may affect community bankers and their clients this year. The uncertainty surrounding inflation, potential interest rate hikes, and the outlook for M&A activity all are likely to play an impactful role this year. Others that we believe could begin to grow even more prominently are the digital race and ongoing changes to the ways of working. Here is our assessment of things to come in 2022.
Mar 30, 2023
With two banks closing their doors, and a digital run on other financial institutions, consumers and businesses alike are concerned about access to their accounts. We provide strategies to strengthen your position with your customers, your community, and the financial industry.
Mar 28, 2023
There are more ways than one to discern whether the US economy is in or headed for a recession. Instead of looking for the usual suspects, here are eight unconventional indicators that a recession is coming.
Mar 13, 2023
As economists warn that recession is inevitable, CFIs should actively take steps to best prepare themselves and their customers to weather a significant economic downturn.
Jul 13, 2022
The FDIC recently published its 2022 Risk Review. We summarize some of the report highlights relating to market, operational, and climate-related risks emerging within the banking industry, and discuss their potential impact on community financial institutions.
Dec 13, 2022
With inflation reaching a 40Y high this year, the cost of living has risen dramatically. Many banking customers are struggling to keep up with the prices of everyday goods. We discuss how CFIs can support customers through this difficult market.
Aug 30, 2022
Economists predict that global stagflation could hit before the end of 2022. Now is the time for CFIs to determine what risks stagflation could create for their organizations and identify steps to minimize any negative impact. We offer three actions to consider as the potential of stagflation looms large.
Aug 2, 2022
Banks should be benefiting from the interest rate increase, but bank stock prices aren’t following the trend. There are actually many other factors that impact bank stock prices that are keeping current share prices down. Here are the root causes of the current prices and what CFIs can do to turn the market in their favor as rates continue to rise.
Jul 20, 2022
In this second part of our summary of the FDIC 2022 Risk Review, we take a closer look at the FDIC’s findings on potential credit risks for the banking industry and community financial institutions. While credit conditions for banks have improved in 2021, we examine the increased credit risk in certain sectors and markets linked to pandemic-related challenges, rising inflation and the war in Ukraine.
Jun 16, 2022
Economists predict that a recession is on the horizon. Given the difficulties that many CFIs experienced during the last recession, now is the perfect time to look at some of the tactics used by those that prevailed in the last recession.