LoanPricingPRO Next Generation WPF Desktop Edition Installation Instructions

LoanPricingPRO Silver Edition will be retired in late 2021.  If you are still using the Silver Edition, you will need to upgrade to the newer user interface before October 2021. Read below for install instructions. The team at LoanPricingPRO is excited to launch the new Microsoft WPF Desktop Edition. WPF is a mature technology for

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Loan Pricing Strategies in Current Rate Environment

Between the end of 2016 and 2018, the Federal Reserve incrementally increased the target Fed Funds Rate eight times from 0.50% to 2.50%. During this period, community banks took advantage of this rising rate environment by increasing their Yield/Cost spread. Loan yields increased 45 basis points from 4.65% to 5.10%, while deposit costs only increased 30 basis points from 0.43% to 0.73%. Further, the increase in deposit costs lagged the increase in loan yields, providing further margin enhancement.

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Loan Pricing Model Target Return on Equity (ROE) Calibration

Successful loan pricing model implementations rely on many variables including management commitment, lender buy-in, and proper software calibration. Calibration is a 2-step process requiring accurate assignment of product profitability assumptions, and then based on those assumptions, product by product ROE target assignments

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LoanPricingPRO Clients Outperform Peers

Essential Concepts in Pricing Loans Many financial institutions experienced record earnings in 2018.  The one-time impact of the new tax law coupled with continued improvement in both asset quality and loan yields more than offset the rising cost of funds banks experienced in the second half of the year. In 2018, The Federal Reserve continued

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4th Quarter 2018 Newsletter