ProBank Austin’s Managing Director for Loan Pricing & Profitability, Jeff Morris, recently presented “Loan Pricing & Profitability – Recommendations for the Post-Covid 19 Environment” at the Ohio Bankers League Virtual Annual Meeting. The presentation centered on determining how to find the floor for commercial loan pricing within today’s current lending environment where competition for high quality credit, low interest rate benchmarks and weak loan demand are driving lending rates to unprecedented levels.
Each community bank must determine where to draw the line on pricing based on its own unique circumstances, including risk tolerances, costs of fund, available capital and market position. Within the 45-minute presentation Jeff demonstrated how objective loan pricing metrics can assist community lenders in consistently making these difficult choices in a manner that will enhance portfolio profitability while effectively managing risk.
