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NFNR is our primary loan category with real estate in general making up most of our loan portfolio. Interim, land loans, some 1-4 as well as commericial real estate is our primary types of loans for which we see a demand.
We make 1-4 family loans, but not for primary residence. Investment property only.
Corporate Trust and Employee Benefit Trust Administration

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Farm Credit, Government Lending Programs
financial planning firms and non bank lenders
insurance co., auto dealership, Walmart,
Farm Credit Services and Finance Companies
The Regional banks are able to offer lower interest rates, longer term and community banks will be fighting for other loans. IRR and Compliance risk
Non bank players in the prepaid card and payment systems arenas
Private Trust Companies / RIAs and out of state trust companies with Directed Trust statutes
non regulated lenders, aka payday lenders, etc
Increased competition from non-bank company's such as paypal etc.
Farm Credit Services, Non-Bank Consumer Lenders
Farm Credit and similar Government sponsored
Private companies that lend to consumers.
Farm Credit and its affiliates such as AgStar
Non-bank financial companies (PayPal, Green Dot, Wal-Mart, etc.)
mainly one, one of our best competitors has merged with a CT bank and the disruption will provide us significant opportunities

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with the continued poor economy, reduced margins, and lack of new quality loans all banks are scrambling to find loans to invest in. also when rate start to increase I believe there will increased deposit competition.
Loan growth is extremely hard to come by these days and the larger institutions are going after the smaller loans that would typcially be targeted by community banks.
Non bank completion is greater than traditional competitors.
Seems like there are no new banks and limited M&A occurring
There will be fewer banks competing but the survivors will be more agressive in procing and terms offered.
explosion of new Credit Unions in our area
They are drawn to the RDU market area to achieve loan grown goals.
With economic downturn effects on banks, we are not seeing expansions.
There are not enough loan applications in our market. Everyone with a presence in our market is pursuing the same loans. There seems to be little evidence of improvement for loan demand. As everyone sees their earnings suffering, everyone will push harder to get the loans that are available.
We are in a very attractive market and most banks want into our market.
all banks are fighting for the same business
Regulatiosns regarding CU's are continously being relaxed
All of our markets are already very competitive, don't expect it to increase.
The larger banks in the area are all competeting for the same loans as we are and loan demand is soft.
We have one bank competitor that will be consolidated with another, but we also have a new bank coming into our market through branching.
Recent acquisitions making formerly insignificant banks more viable in our market, and regional banks are so liquid they are very agressive in lending at rates that are not sustainable at my bank. Of course the credit unions are always doing crazy things with no check on their actions
there is more competition for loans from all sizes of instititions.
We are now pursuing loan diversification in areas that other Community banks are slow in adapting. Solid loan growth well underwritten. Most others are using SBA and premiums from sales to provide the bulk of their income.
The game is over with community banks. Facebook (just one of many) has approval in Ireland to do transaction.
There are no new lenders proposed for the area.
Our market is stagnant and not a draw for competitors
I don't anticipate many more competitors.
There are many non-bank service providers (PayPal, Bluebird, The Lending Club, etc.) that are gaining scale in the payments segment and the small dollar consumer loan segment.
diminishing level of wealth management providers in our market.
More banks and credit union branching to my MSA in search of loans
The long-term reduction in interest rates has forced all of our competition into Ag and CRE lending at rates that are generally below required long-term margins. Low rates have forced 1-4 Family lending into the secondary market and greatly reduced the attractiveness of bond investing.
We do business in a very rural area where it is unlikely any other bank is going to put a brick and mortar branch.
Two of our competitors are each closing a branch during this upcoming year.
Credit unions are becoming much more aggressive in all types of lending, including commercial. Large regionals are looking for loans.
They continue to grow and take market share.
As the big banks loosen their credit standards again and the demand to boost profits they will start to cuts rates to get deals and will trickle down and have an impact on the small community banks. Don't get me started on the credit union advantage.
Our area Wisconsin is well represented with financial institutions of all sizes. They all hungry for growth.
Consolidation due to compliance/audit expenses.
We don't anticipate any new entrants in our market and the local institutions are active competitors with "typical" bank products and pricing.
bank mergers are increasing and smaller community banks are being purchased.
Banks have fewer problem loans, and more liquidity- continued low rates puts more pressure on NIM, garnering more loans helps to maintain profitability.
Very rural area with no other banks expanding to the area.
The competition for Ag loans is fierce as loan demand is down. Farm Credit Services is able to offer low fixed rate long term loans which we can't compete with.
As a smaller bank, we have limited capital, smaller growth, and basically the same regulatory cost as the larger banks. Credit Unions typically do not pay federal income taxes, are regulated somewhat differently therefore can offer better rates and lower fees. However, they have been allowed over the years to expand their markets by acting like banks.
Aggressive pricing and substandard underwriting by credit unions and FCA
In our rural market the number of competitors is fairly constant.
We operate in slow rural communities which do not attract new competitors.
It is only going to be more competitive across the board from all sectors.
MARKET SATURATION VERY LOW RATES - LESS RIGID LTV, DTI REQUIREMENTS
new locations being allowed to build in metro area
One large credit union in particular is building new branches in our area and has been very agressive with pricing on both loan and deposit side
Regional banks are acquiring smaller community banks due to increased regulatory burden caused by Dodd Frank and CFPB
Not much physical branch penetration into our market, they have the ability to operate in our area with little overhead.
Small town with [redacted] banks. Not much fighting between banks
Farm Credit and other government lending (Student Loans, Questions with FNMA and FHLMC)
Don't see new banks or new companies entering the market.
because of our distance from other banks
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They are agressive for the larger lines and have a tax advantage.
Their presence in our geographical area is increasing.
Not many changes ahead in our rural area
There will no new players in the market and the level of competition amongst current players in the market is expected to remain constant.
Good loans are tough to find and when you find them everyone is fighting for them.
Rural area, no new branches or banks we know of.
Farm Credit has access to low cost money and is NOT dependent on deposits
Rural Location, somewhat captive customer Base
Based on experiences we have had making recent loans, response from other banks when attempting to pay them off, and recent statements from competitors.
Bank of the West has started coming into our area and offering extremely lower interest rates; even lower than Farm Credit.
we are the only locally-owned bank in a small town where ecomonics are quite stable
Farm Credit has already taken most of our farm operating lines of credit and there is no other bank in town that is aggressively going after our loans.
Credit standards are being lowered and lenders in the area are becoming more aggressive (utilizing loan quotas, etc,)
large community bank entering our market
We experienced competition for good loans during 2013 and this will continue into 2014.
Larger banks have the staff and automated systems to implement all of the new mortgage regulations. These resources give them a huge cost/pricing advantage over us. Credit Unions also typically have more resources, as we had to do a 40% tax dividend and they do not pay taxes.
Because we are seeing both Regional and community banks be very competive with loan rates while at the same time offering LTV outside the norm.
The larger banks just keep getting larger and larger, and continue to increase their national market share. As for credit unions, they keep growing and have their tax advantage.
Competition in our area has not had any major changes.
It is waht we are experienceing today and I expect more of the same.
Sale of [redacted] branches to smaller community bank. There are three locations in our market.
We are in a booming economy with heavy competition to attract loans. The competition comes mainly from other local institutions.
Compliance with current and proposed regulations will make it extremely difficult for small community banks to compete!
Do not expect any new competition nor any competition to leave or lessen efforts.
Almost all banks are sitting on substantial liquidity and aggressively seeking loan volume. Our primary niche has been C & I lending for over 30 years and all other banks and Credit Unions are aggressively seeking market share in this space as consumer lending and banking becomes less profitable due to regulation.
I don't see much consolidation, we are located in low growth areas, no financial institutions entering or leaving the market area
other local banks are competing in a limited market.
the regional banks have economy of scale for better technology. The credit unions offer lower loan rates as they do not pay income tax. :)
Competition is normal in the financial business
We have seen credit unions in New Hampshire utilizing their tax exempt advantage to expand (as opposed to benefit their customers through pricing). A large credit union entered our market in 2013 and another is opening a branch just outside our market, probably in 2014.
With the current economic conditions, there is more competition for loans in our marketplace.
they are beating us on both consumer deposit and loan rates AND now going after small business accounts
because i don't see the pie getting much larger within the next year and i believe all financial institutions will be trying to get a bigger piece of the pie, therefore, i see more competition with cutting rates, extending terms ect. in order to get more of the business.
Everyone will be chasing fewer loan applications.
Banks are in need of loans and will compete agressively for them.
No additions or reductions in banks surrounding us.
Both Regional Banks and Credit Unions have always been competition in our area and they both seem to be trying to expand their footprints.
We faced intense competition the last two years as this recovery drags on and larger institutions look at our customer base as being investment grade assets, repricing our existing loan yields downward and driving new loans yields down towards investment grade/no credit risk pricing. We expect the same intensity this year and well into 2015 until investment yields lift.
The larger institutions and credit unions have the ability to offer lower more attractive rates, while maintaining a high level of profitability when compared with smaller community banks. They also offer a wider range of products that have the ability to reach a broader percentage of the population.
in an area of established banks surrounding us and our customers are quite loyal
Don't anticipate any changes in business practices with competition
Our markets are seeing increasing competition from other similarily sized banks and credit unions due to the strong economic conditions that are present in the markets we serve.
Same market - same competitors - same regulatory issues for each of us
The non regulated lenders are having a field day while we're trying to be sure we comply with all the rules and as the economy struggles the normal borrowers are pulling back from debt whenever possible.
I view competition as an opportunity to further differentiate our product and service delivery methods.
The threat isn't from other financial institutions, it is from increased federal regulatory action.
The largest banks appear to be more interested in larger markets than we compete. Other community banks have the same need for asset growth as we do and take the same attitude we are, "we will not lose a good customer to price". Credit Unions seem to be re-focused to use their tax advantaged status to reduce loan rates to a level they need in order to compete and then to give substantial "community gifts" to obligate clients for future business.
Growing pressure to generate earnings is driving larger players into smaller markets & deals as well as creating more aggressive actions from peers.
Acquisition of our main competitor by larger more agressive bank.
Do not anticipate new competitors or major changes in practices of current competitors.
We cannot compete with Farm Credit due to funding differences. They have the luxury of creating long term fixed rate funding and we dont. They hold that advanatage as a quasi governmental agency. Credit unions are fierce competitors given the fact that no common bond requirements are honored or enforced and they waiver their tax exempt status in our face on a regular basis and use it to steal our consumer customers day after day.
Merger of one local bank into an existing regional bank with local presence
Less demand means we are all trying to get loans from a smaller pool
We are seeing lower fixed rates with longer terms
Everyone is competiting for the customer's business.
We are a small community bank and we will be soliciting the same type and quality of customers.
Farm Credit Services is a major competitor in Agricultural lending and the Finance companies refers to farm equipment financing, primarily John Deere Finance and CNH. Farm Credit Services is a GSE and is able to operate with many advantages not available to community banks. The major farm equipment manufactures are using their finance companies to promote sales of their product.
Less "deals" means everyone is after the same loans and are priating one another at the same time. Credit Unions will always be a competative problem as long as they have their tax advantage.
The need for banks to get loans. The larger banks and credit unions have built in benefits to be able to price loans cheaper
No new banks coming to our locations and new charters for banks is declining.
Continued competition for limited loan demand.
Many recent announcements of out-of-MSA banks moving into our MSA
Because now as a small Community Bank the regulations have forced us into the same rules as the larger institutions therefore our cost have gone up and our competitive edge is gone because of the QM rule.
They are the primary competitors in our market
Regional Banks will be able to offer lower rates for longer terms and community banks will have to fight for the remaining credits. Also IRR and Compliance risk
Those are our existing competitors. Several have had asset quality issues that prevented, those issues are behind them and they are now looking to grow.
Competition is already intense and it will remain so
Community and Regional Banks in our market are where we are seeing increased competition in the last year on business side and the CU is very strong on consumer.
They are currently the competition and are growing their locations and footprint.
There is a credit union that has purchased property in one of our markets and has expanded their charter to include our county in their member district. Also, other community banks have increased their presence in our markets.
Farm Credit has been very agressive on cherry picking 1 rated credits. The large banks with there two big to fail status are also agrressive on all products
300,000,000. banks are hiring former USDA loan officers who are using information they gained working for USDA to cherry pick business. Unethical to me but they are doing it.
Credit unions have been encroaching on the CRE market for sometime. More recentty the terms offered by credit unions have been at levels that would be considered unsound banking if offered by my bank.
Pricing for commercial loans from all banks in the area have been substantially more competetive in the last year or so. We expect this to continue and possibly become more aggressive in the next year.
They are agressive seeking out our best customers and are offerring them below market long term rates to steal them.
All local banks appear to be stable and strong
FARM CREDIT WILL ALWAYS BE A PAIN IN THE [redacted], UNLESS THINGS CHANGE. CREDIT UNIONS CONTINUE TO BE ABLE TO EXPAND FIELDS OF MEMBERSHIP OTHER COMMUNITY BANKS ARE ALWAYS COMPETITORS, BUT AT LEAST THE PLAYING FIELD IS LEVEL.
Competition in our small community has been consistent for several years and we do not anticipate any changes in the next year.
Most of the financial institutions in our market are community banks, so most financial services offered would source from community banks.
Most of the loans that have paid off are due to lower rates offered by money center and large regional banks. We cannot offer these low rates and still remain profitable. We end up with loans that have tighter cash flow and marginal collateral; riskier loans.
More aggressive lending and pricing to acquire the business
This has been and will continue to be the main competition geographically and strategically
No new banks coming to the area and no major new products introduced by competitors.
increasing margin pressure for all banking organizations
Lending frenzy is coming back. Lose terms and lower pricing
Everyone has excess funds and we are seeing very agressive advertising and rates offered by credit unions and ins. companies
No significant changes in our marketplace
We are a small bank - everyone is our competitor - larger community banks, regional and national franchise banks, credit unions, pay day lenders, mortgage originators - so no change.
It's fierce now and it will only get more competitive. Good for the consumer.
State of the economy and our industry as a whole. The level of entry is much more difficult, although we do see more mergers and acquisitions within the next 3-5 years. To much regulatory burden and significant number of small banks are "tired".
Large and regional banks are, and will continue, to be more competitive on rate(s) and credit unions continue with an unfair tax advantage that allows them to compete more rigorously on rate
With a finite number of customers the only way to grow is to take customers from other institutions
Demand for loans is great and interest rates are very competitive.
Competion in this area stays about the same
We are [redacted] miles from the next bank.
The effect Dodd-Frank has on community banks and the products and services offered. For Credit Unions they do not pay taxes and can offer better rates on deposit products.
They are offering our ag customers very low rates.
They can offer better rates as they do not pay taxes
The regulatory requirements for community banks is becoming more cumbersome and expensive. Therefore several community banks will just decide not to provide certain products to by-pass the regulatory changes.
Credit Unions have become increasingly active in the Real Estate Mortgage and Commercial Lending arenas
Rates have remained stable and the business climate has shown minimum improvement
Credit Unions continue to grow and with their unfair tax advantage, can do the same thing we can and have a lot lower cost basis when they do not pay income taxes. Other banks are trying to grow their portfolios by taking business away from others by offering below market rates.
We share most of our markets with other community banks and credit unions. We are successful in beating most (but not all) regionals and nationals.
Larger Banks are targeting small business more, credit unions continue to offer very attractive rates (pay no tax), and with low loan demand/slow recovery it has become very competitive in our market.
Our compettition has been extemely competitive and does't seem to be easing
Big bank selling branches to community banks in the area
Because of increased competition for quality loans and increased competition from non-bank financial institutions (less compliance) and government sponsored entities & credit unions (limited or no tax liability)
We are situated to compete very well right now.
The large banks that got out of small business lending are now showing interest in returning to that market.
Big banks are better prepared to absorb the huge increase in compliance costs and the credit unions continue to leverage their tax payer subsidy
Margin compression is requiring the everyone in the industry to look at all alternatives in order to remain profitable.
Community and Regional Banks are our primary competitors.
So far in 2014 we are experiencing the same competion for commercial lending...coveted C&I lending included.
Unable to cope with regulatory overload. Director fatigue and unclear future of the Community Bank model will result in less Community Banks.
They have unlimited marketing ability and have been targeting depositors.
Larger banks moving into our trada territory.
we don't anticipate any new banks in our markets and the ones that are there will continue to aggressively seek new loans and deposits
The competition in the markets we serve have really not changed in the last 12 months, and we don't anticipate any change in the foreseeable future.
Banks expanding into the state, new branches and LPO's.
We see competition coming from all segments of the banking industry.
This group has a very similar credit appetite as ours.
Acquisition of another local institution by a huge regional bank
Large banks have a lower cost of funds and more high tech services to offer. In good economic times, they cut loan rates and lower underwriting standards. With credit unions, it is impossible to compete with a financial institution that pays no taxes, but wants to look like and act like a bank.
I feel the number of players in our market will remain constant
Large banks will continue to be tough competition based on technological superiority. Regional banks have the resources to comply with new and voluminous regulations. Credit unions can undercut community banks by not paying taxes.
Our competition is in about the same position as we are in that loan to deposit percentages are down and we are all trying to pick up good loans and do not see a change in that area.
Have not seen any major change over past several years.
That has been happening in the past few years. Both of these entities have unfair tax advantage as well as limited regulations requirements. What started as specific lending purposes has generalized into any membership or loan style.
The appetite for loans is driving the larger institutions to be more competitive in our market and the regionals are looking for growth as well
Everyone looking for good quality loans.
Stronger competitors and interest rate environment. Structure of deals seems to be more innovative/aggressive.
Economy in ND is strong and expect competition to remain the same.
Being more of a commercial driven bank that focuses on low income housing lending, we anticipate our competition to stay constant.
The large banks will be aggressive in home mortgages and small business. Their infrastructure will allow them to handle the new mortgage requirements more cost competitive than us. Regional and other community banks will have some of the same advantages. All will go deeper into the commercial market for new customers.
We are in a rural area and don't foresee any new competition. Additionally, the markets should remain the same.
Larger institutions are not going for the size of loan customers that we are. Smaller institutions are fighting over the same loans.
There are 20+ community banks in our market area and our region has a fairly stable population. We all battle for a bigger piece of a finite pie. Additionally, we are pressured on the mortgage side by regional credit unions, online lenders, and other local competitors seeking to recreate our model for success.
We have previously lost a signficant amount of loans to credit unions.
We are in a rural market with a rather stable economy that does not vary too much and the competition is pretty consistent also.
Community Banks being purchased by large banks.
Large banks and credit unions have an advantage from regulatory, compliance, and taxes.
Lack of new branches and overall economic conditions.
They continue to increase what they are able to do especially in the commercial lending area.
EVERYONE is desperate for loans. For every new opportunity we have, there are multiple organizations competing for the deal.
They have less overhead and will undercut rates for our loan customers. Small banks have very heavy compliance costs!
The market is very competitive and is expected to remain so.
[redacted] FCU expansion. All banks getting bigger
The pricing power that they possess due to their ability to avoid taxation and the expansion of their lending base.
Our local market is already over-banked, with 9 banks, 3 credit unions and several agricultural lenders. In addition, many of the military personnel living and moving to the area bank with USAA as well as other large banks. Mobile banking options offered by these institutions make them a strong competitive force in the market. Many of the mortgage loans originated locally are through on-line mortgage companies.
Other banks have become more aggressive seeking loans outside there trade area.
Surrounded by big banks in the metro area
Regional Banks have greater access to technology and more resources to direct to compliance. Therefore the regional banks have an advantage over us.
more branch locations in our communities and as we increase branches our competition grows
We see Regional Banks and Credit Unions taking aim at the Community Banks as consumer and commercial demand has decreased.
Loan volumes are stagnant and we are all searching for more interest bearing loans to generate income to keep the bank profitable
we have seen an increase in competetion already with deals being offered with aggressive pricing; somee clients have chosen to move due to rate.
Credit Untions continue to offer better rates and additioanls services and can afford these options due to not paying taxes.
Small Community, with Credit union and one wells fargo.
The current marketplace is and has been very competitive
Everyone that is funding agriculture is looking for good loans so everyone is chasing the same borrower(s).
Limited number of community banks in this market
We are an SBA lender, and competition for SBA loans is increasing from all types of instituions.
the markets in our service area are flat with not much growth
More financial institutions are getting more and more aggressive on loan pricing in order to maintain volume. Financials instituions are chasing yields in the loan portfolio because they do not exist in the securities portfolio today.
I think the new Qualified Mortgage rules will dramatically change the lending markets and therefore competition for these institutions.
The market is changing to serve an instant gratification style customer.
I do not expect any new financial services in my area
We have many community banks in our geographic area.
Markjet is fairly saturated with banks and credit unions and not aware of any new coming in or leaving.
Banks have a lot of liquidity. The economic recovery has been slow. Quality credits are harder to come by. Banks with more dollars to lend are competing for customers borrowing fewer dollars.
Competition regarding rates for loans and deposits.
We are all going after the same good customers, even the larger banks are after our better larger customers and usually at fixed rates we can not touch. Only thing that saves us is our service and our people who do not turn over.
The demomgraphic makeup & being a strong agricultural area.
We are a small community bank and we don't anticipate changes in our local market regarding competition.
Since federal tax rates approximate 35% for businesses earning over $75,000, this translates into a tremendous pricing advantage that nontax paying credit unions have over taxpaying competitors like us and other taxpaying banks. It provides them with the ability to use tax money to build up their capital base, purchase buildings, and finance their marketing and other expenses. Assuming all other expenses are exactly the same, a credit union could charge 2.925% on a five-year commercial loan and have the same net annual profit as if we had charged 4.5% for the same loan. The old-fashioned credit union is a myth of the past. Fields of membership are wide open with very little common bond required for membership. They do the same types of loans we do at the same amounts with minor restrictions on commercial lending that they have been violating for years with no consequences. Credit unions have a tremendous pricing advantage related to lack of taxation that was put in place when credit union membership was li
Our primary lending focus is to the small business market.
As regulations related to mortgage lending become more restrictive and institutions like ours decide to omit this line of business, other institutions that continue to provide these loan types will have the upper hand.
Subsidies enjoyed by FCS and credit unions provide pricing advantages that are difficult to compete with.
We are already seeing an increase in competition from these companies.
We believe the amount and type of competition in our niche will not change.
They are currently offering low, long-term rates to our best customers.
Large banks are focusing more on small business lending and are more comfortable with lower loan sizes. Credit unions continue to rapidly expand their branching footprints and focus on commercial borrowers. They have tax-free funds to invest in technology and expansion.
Banks are very liquid with monies to lend. All are looking for good lending opportunities.
We are expanding into a new market. That market is currently dominated by the Regional Banks.
Players in the market should remain the same although there could be added pricing pressure
Because our business is non traditional and not offered by many mainstream banks
All are looking for ways to maintain market share in a very soft economic climate and depressed real estate market in our region
Everyone is trying to increase their loan volume.
A large community bank has recently invested heavily in our market (two separate acquisitions), and another large community bank is about to open a branch here.
Flush with deposits and fewer loans advancing fewer dollars
Clients are looking for tax efficient places to have money managed and those that have laws that provide significant flexibility and protection
I don't think that our playing field has had drastic changes within the last year.
The delmarva has been stagnent to shrinking in loans for 7-8 years. Remaining community Banks are very aggressive in bidding for quality assets. Generally, community banks are trading assets with little growth.
We operate in a rural area where there are few changes.
Increasing loan volume appears to be the goal of all financial institution in their attempts to maintain/increase profit margins
We have not seen much change in a few years.
Everyone wants C& lending and the regular agencies are driving the smaller banks out of some markets.
Pressure for smaller (community) banks to merge with Regional Banks due to increased regulatory demands and the related costs.
Greater product selection, better technology solutions, better marketing and somewhat better pricing
We are the only Independent Bank in [redacted],Tx and there are no competitors moving into the area.
Our town would probably not be able to sustain another bank.
It has becomes more difficult with all the regulations for small community banks to compete and be profitable. It has become very costly and timely to address Compliance/CFPB regulations.
We have had the same competitors for 20+ years and have no knowledge of any new banks coming into this area.
Because of our strong local economy and moves by new competitors
Due to increased regulatory demands and costs, more small banks will be forced to merge.
Same banks in the same markets have not seen or heard of any new banks or CU coming into our markets
We are an agricultural lender and most of the larger banks are not interested in our customers.
The competition for good loans in fierce. Loans between $1MM-$5MM are desired by all banks.
local management and board changes at local banks,
While the Texas economy is the "best" in the Nation; quality deal flow remains tight. As a smaller community Bank the competition for appropriately priced quality assets from peer and larger banks continues to be fierce. Tight margins and yield spreads continue to reduce as more players seek to employ excess deposits outside traditional investment sources.
No new financial institutions entering the market.
We are finding small banks to be more aggressive and accomodating
As a [redacted] Bank our competitors have been the same over the years.
We already deal with a wide variety of local banks in the area and we don't forsee that increasing or declining any time soon.
An established bank from the [redacted] area has established a branch in our market within the past 12 months. Their Target potential market is Former [redacted] Bank, now [redacted], customers. But they are offering higher CD and interest checking rates. And they are fairly competitive on loan pricing and underwriting. We are feeling the pressure.
We are seeing a significant/more aggressive push from most competitors for loans.
I see less community banks to continuing consolidation caused by excessive regulatory burden but more non-bank competetion such as credit unions and farm credit system.
Consolidation in our state is bringng in new players; some existing community banks are healthier and more competitive
We don't anticipate the other financial institutions in our community to change their level of aggressiveness based on their current staffing and history.
The market share is tougher to get and the larger institutions believe they have a competitive advantage and can capture our market share.
Those are our primary competitors in the regions we operate within.
Merger activity will decrease the number of banks in market but competition from credit unions will increase
Because of regulations it is becoming harder for banks to offer services that are easy and useful to consumers. Banks are losing their ability to use their discreation in making decisions therefor frustrating customers. Now non-bank businesses offer alot of alternative products that are more convient and provide less hassle.
Community banks make up the vast majority of competitors in our trade area.
Past experience, regulatory burden, tax exempt status of credit unions
Banks of all sizes are aggressively pursuing C&I and CRE loans, regrdless of trnasaction size.
Competition is now coming from non-bank institutions such as credit unions, Production Credit and others. However, other banks in this community have left or reduced their personnel, which leaves the competition about the same.
we will continue to face strong competition from commercial lending
Because that is the trend we are experiencing. Continually more aggressive competition.
Largest banks are not competing for smaller sized commercial loans, and Credit Unions are now expanding and doing commercial lending. Residential lending is still rate driven, with many competitors.
We had been the only bank in town form at least 20 years and a new branch opened up and we did not lose any deposits or loans.
Cu don't comply with regs. we do a cost of doing business significantly lees, No US income tax. Large & Regional banks are able to use economies of scale to improve efficiencies and reduce customer contact.
Due to the consolation of banks, we are all looking for the same business and or services.
This is the size of banks in our market.
We have not lost any deposits or loans have not slowed down either
Stable economy and the trend has remained constant over the last several years.
local market is already overbanked. Pressure from other financial services vendors is not expected to increase appreciably.
We are aware of any new entrants coming into our market at this time.
Quality credits are very sought after and terms being offered by FIs to gain the credit are very advantageous to the borrower. These terms however are outside risk appetites of small commercial banks. Smaller institutions unable/unwilling to take on the IRR risk. Additionally, new regulations attempt to make “one size fits all”. Community banks survive by taking the time to offer custom solutions to individual needs and circumstances. Bigger banks have all the advantages in a one size fits all world.
Market is saturated so no new players anticipated in next year. Internet banking is hard to measure so impact hard to predict from out-of-area players
In rural america and huge banks are not interested in smaller population areas. Other mid size banks are
We are moving a branch to a new location with more competition. The community banks are becoming more aggresive.
they are opening up on every corner now and they have significantly less overhead and no capital requirements.
We do not have many new banks coming to our area and the competition is stable.
I do not see a lot of new banks in our communities as most banks have either merged or slowed down their growth into new markets.
Based on the trend over the previous ten years.
The merger and acquisition market in our area has slowed down considerably and we don't forsee any major changes in the next year.
Larger banks are gaining market share and Walmart, Amazon and Google are good examples of efficient retailers that provide direct banking and financial services that are unregulated.
Credit unions are expanding locally to include much of our Bank's market
It is evident as we solicit loans that the [redacted] market is highly rate competitive and that banks are "loosening" credit standards
fill the void left when banks exit lines of business due to regulatory burdens
They are in our small markets and want a bigger piece of the pie.
Increased competition accross all sectors from aggressive institutions from volume and rate perspectives. Credit Unions continue to expand reach into traditional commercial banking products.
[redacted] Bank is in town and becoming more aggressive. Other competition is about $1 billion size and will be strong competition.
Our market is expanding and other community banks are also active in our markets
Some savings banks becoming more aggressive offset by M & A and fewer banks.
These are the banks that make up the majority of our immediate market
We have a new regional moving into the area, and expect more competition.
Insurance companies are making loans on local commercial RE projects.
Large and regional banks have compliance departments where smaller community banks have one compliance person that wears several hats. Credit unions offer lower rates and we believe have less regulatory requirements.
Most of the competition that we typically face range from other community size banks to regional banks, most of which are getting more aggressive in both pricing and structure in lending.
Financial industry will continue to look for quality loan customers where ever they are.
The regionals and smaller arereally fighting for loan business. The mega institutions only affect some consumer loans and have a generally bad reputation.
Banks will continue to look for ways to increase non-interest income as regulations continue to control certain areas of non-interest income, for example Insufficient Check Income. Banks also need loans and cut rates of competitors in order to get the loan on their own books.
There are only [redacted] banks in our area. Do not expect much change.
Market appears somewhat stable at this time.
Community banks and credit unions are the only financial institutions active in this market. While there are large banks such as Wells Fargo, their centralized approach to doing business isn't well received in this market.
Several banks in the market and not enough loan supply
The larger banks are not staying in rural areas. Bank of America recently sold several branches in our region.
They have a wider range of offering becaue they are bigger.
Large holding company banks have aggressively come back into the market as a response to their inability to release reserves into earnings.
All the above are located in our trade area.
There is already fierce competition for loans in this interest rate environment and we expect to remain so.
Our geographic market creates intense competition from all size financial institutions.
There are not any new banks entering into our local market.
We are located in a fast growing area, and we anticipate other banks will be interested in the growth.
Because we are currently experiencing competition
They are able to be more competitive with interest rates on loan and can lend at higher levels than we are able to.
Our customers are receiving proposals from banks that we have not seen in the past.
Banks in our marketplace are becoming more aggressive in regards to loan terms such as rate and amortization periods.
The Larger banks are undercutting commercial loan rates in an attempt to gain market share. Credit Unions have the tax exemption that enables them to compete on an entirely different level as it relates to interest rates.
Because our community prefers a community bank atmosphere.
We have already seen evidence in more aggressive pricing and less restrictive underwriting.
The economy in our area is only growing slowly and we already have plenty of financial service providers. I doubt any new competition will be coming to our area.
Several new aggressive banks have entered our primary market through acquisition.
More banks are competing for the same deals. Larger banks are pricing loans really low to get the business.
Outside competition has slowly affected lending over the past several years.
People are more willing to use the internet and to shop around
We have the majority of the market now and it will probably stay that way
All are fighting for a shrinking base. In addition, more entries into the lending market from non-bank financial companies that are non-regulated is causing chaos. For example, insurance companies have financed homes at 110% LTV with 80% debt service in this area within the last 180 days.
Another new branch of a one billion credit union that has an office [redacted] hours from our bank is being constructed as I take this survey.
No new financial institutions known to be entering market.
The market where we do business is not inclined to utilize internet for banking and there is limited competition in our area.
There continues to be a migration of area rural banks into the [redacted] market.
Larger regional banks are generally more competitive with respect to loan pricing. In addition, a regional competitor is buying a significant number of branches in our state, some of which are in our market area. We expect this bank to be much more competitive than the current bank.
Our products, services and customer base are similar.
They are starting to hire rainmakers and getting back to the market.
A lot of pressure on banks to grow to get the earnings to cover the increased cost of doing business in this new environment. And with credit issues largely behind the industry for now, many banks have gotten very aggressive with pricing and structure to get the growth.
At the beginning of this year, we opened a branch in a new market that has a strong presence by community banks and credit unions.
They are very aggressive with pricing and structure
our area is beginning to see the economy to stabilize and due to the limits of intrastructure more growth will be hard to acomplish.
Quicken is making more loans on the internet in our market and there are other non-banks doing the same. Also, large multi-national banks are making small business loans on the internet.
More banks in the market place and expanding customer base for credit unions
Lack of quality loans available in the area. Banks trying to find more loans. Pricing on loans continues to decline.
Not enough business investment forcing greater competition for what little there is
Community Banking is growing stronger and I think more people will start to continue the trend of banking with a smaller/more personal institution if community banks can continue to provide the technology and resources that larger banks have.
The volume of Mergers and Acquisitions in our market will generate a lot of competition.
Do not anticipate any of the respective factors to change
We have seen already lareger banks getting involved in smaller deals with some very low pricing.
It appears that all financial institutions have already priced their products about as competitively as they can. Now it is down to providing service.
Loan demand has been down for some time. All banks, but particularly community banks, are looking for good loans and as a result we are seeing cheaper pricing and relaxed terms.
There hasn't been any significant changes in our market areas.
Small community, established banks, no significant changes expected
Credit unions have the ability to "short cut" regulations that the banks must follow.
No major changes in the number of competing banks or the services they provide.
No expectations of additional lenders moving into our area. However, current lending institutions will be more aggressive.
It seems our competitors are proceeding cautiously with all the new regulation so I expect them to not be aggressive.
We don't anticipate any additional financial institutions entering our immediate market area.
Being in a rural area there isn't much change
We anticipate a new Regional Bank player in our market will try to expand thier market presence with lower lending rates
We do not see any additional competators coming to this market during the next year.
entering our primary market and attempting to gain a foothold with pricing
There has not been a lot of change in our community.
Farm Credit System does not come under the scrutiny that FDIC institutions do. Compliance expense to name one. they undercut our rates and pay virtually no income tax. Their model is expanding commercial,non-ag lending.
Fewer competing institutions, but more pressure to grow among those remaining.
I hear it from my customers. One brought me an "offer" received in the mail from Quicken Loans 3 days ago to refinance their mortgage.
We operate in an area that larger banks do not service. The members of this community rely on small community banks for their banking and lending needs.
From a lending perspective, larger banks are going after smaller relationships and credit unions are expanding their small business lending capability
We operate in a stagnant no growth market. There have been additional banks come into the market but they have little impact and are beginning to pull out.
One other bank in town is no longer offering residential mortgages where ATR/QM applies but there is more than enough competition in the market area to offset any possible change due to this.
We will be facing a different kind of competition. Seems to be ever changing. Not as many community banks in our area and the "chain" banks do not really lend like we do. BUT there are more non bank entities that are looking for deposits/investments and non bank lenders of all kinds. Should continue much the same over the next year in our market.
Bank has a niche market in hotel/motel lending.
We are seeing that trend occurring already and anticipate it's continuance.
The large banks are coming down and being more aggressive in lending to our small business customers. The other community banks need more good loan opportunities and will continue to aggressively call on our good customers.
Because the are after my customers more than any one else. they don't pay taxes and they dont have to make a profit. not very fair.. direct competion from the federal goverment. pretty Sad
Community bank competition will quit doing some types of loans in order to avoid the cost of trying to comply with increasingly burdensome regulations.
with bank have lower loan to deposit ratios they are looking to find more loans
Factors in the market remaining the same
WE have been in a highly copetitive market and I think that will continue as [redacted] area banks seek quality loans at the current level of activity.
There are no new market entrants in sight. Competition is brisk but not vicious. This is not a complacent response. We expect competition to stay as vigorous at it currently is.
Our primary locations are in rural communities.
Pricing is becoming even more competitive for quality loans. In addition the regulatory environment is making it even more challenging to be able to provide creative financing solutions for target market.
Credit unions are entering the CRE and other community banks are increasing their CRE lending and entering our geographical market. Offering rates for such loans are dropping.
While there may be fewer banks because of consolidation, the competition of loans will be greater due to marginal loan demand.
We are being forced to compete for the same loans and pricing becomes the overriding factor for some of these banks. Unfortunately, there are banks out there which are needing volume so bad, they are cutting pricing and the quality of underwriting to get the deal.
Competition from other banks has remained relatively the same for the past several years - we don't see any reason for that to change.
Regarding Credit Unions they have unfair operating advantages.
We have branches of the largest national banks, regionals, and community banks in our market along with credit unions and expect each segment to be very active in our market.
I have seen competition grow each year I have been in this business.
The majority of our customer base or prospects would use a community bank or a regional bank.
No significant economic or market changes expected to influence competition.
All lenders are getting more competitive on finding quality assets for their balance sheet.
Starting to see very competitive interest rates being offered on commercial loans from such banks.
Larger banks don't pursue same business as we do, for the most part
Limited number of loans in our service area with a number of regional and community banks to compete for the business
It seems that the larger banks have little appetite for lending making it too cumbersome to do business with.
Larger banks don't have the flexibility to compete. There are smaller banks that are very (and recklessly) aggressive on all fronts.
Thinner margins and increased demand for commercial loans will drive the market which will result in highly aggressive loan pricing from regional and large banks. This increased competion will cause community banks to ccope with thinnner rate margins in order to obtain and maintain loans.
There are not of institutions that would have interest in our very local economy and housing environment.
Our largest competitor in our market is stable and not growing. The other competitors are very small and not growing impressively.
Consolidation of smaller institutions into larger, more robust entities that are still able to be nimble enough to enact rapid change in operating procedures.
The need for loans in order to improve net interest margin
Demographics/Number of banks in area/Niche banking
I don't see too many changes over the next year that would impact competition too much.
All of our competitors are in the same situation as we are.
Large players are able to swamp an area with advertising and have much larger footprints. 1-4 Family borrowers need to have pre-qual letters before brokers will entertain offers. Big footprints allow bank to be in many spots.
There have not been any new banks open up in our area. There has been a bank that sold to another bank. We gained some accounts, but it didn't affect business significantly.
We expect tougher competition but not necessarily more competitors. Most if not all institutions are feeling the challenges of maintaining and growing margin. As a result we are all fighting to capture the same customer. With the economy showing signs, ever so slow, of improvement more customers will be borrowing & more institutions will be lending.
lax loan demand will increase competition for good quality credits. Other banks are aggressively going after loan on other banks books.
Large Banks have the resources to compete in any area they choose. Smaller banks know their markets and will cut prices to get business. Credit Unions have a lower cost structure and are trying to expand their reach into the market
To our knowledge, there are no additional institutions being built in our community or surrounding areas
All banks are competing for loans and deposits.
Those are the types of banks currently in our market.
Number of competitors in our area has not changed.
Competition on loans (particularly interest rate) from all the above.
Competitive environment. Improving credit problems of banks leads to increased risk appetite.
There will be more large banks as consolidation continues to occur, for example Rockville and United.
most of our recent competition has come from larger out of market community bank opening branches in our markets.
They are continuing to introduce a variety of products that do the same type of things that a bank does thru our checking accounts.
The are expanding outside of their charters.
No changes are expected from area competitors.
some community banks are lowering loan rates and extending terms to lure customers to their institutions
Larger banks have exonomies of scale the samller community banks cannot achieve. Communitiy banks continue to place price pressure on each other to compete with each other and the larger regional banks.
Don't see a great deal of new entrants into our existing markets; impact of any new entrants will be partially offset by lessening competition from local banks that have been bought out or by exit of market by some mega banks (i.e. Citi exiting the West Texas market)
There is a new bank in the area and some of the local banks have become more active in the lending and deposit markets
We foresee little change in our competitive environment over the next year.
All of the community banks in our market will be acquired
Our bank has just begun to grow it's loans the last several years and have tried to compete with the banks in the surrounding area. We do not anticipate that the competition will be any greater than what we have experienced the last several years.
Our [redacted] Branch continues to face stiff competition from both established and new banks in the [redacted] area. We are facing more competition in our two locations as well from other local institutions.
There is one other bank in our community and we do not anticipate significant change in their market strategy.
Margin problems, lack of loan demand, and an abundance of deposit funding will cause competitors to be more agressive.
Overall growth in the local market is slow, so the banks will be competing for the few good loans that will be there.
Material consolidation in the industry will result in fewer community banks but the economic health of our Texas markets attracts additional new competition regularly.
Loan demand is not as strong as it has been in the past and there are a lot of financial institutions that are after a shrinking number of loan applicants.
Credit unions are very competitive on rates. Regional banks are acquiring more smaller banks in our area.
We do not expect anything radical to occur in the next 12 months that would either greatly increase the level of competition or cause it to decrease.
Entrance into business mid market cash management. Primary retail market has become commodotized.
Credit unions are becoming more predominant in our market area along with large regionals which have recently moved in. Both have efficiency/tax advantages over small community banks.
We have a new community bank entering the market that will become a direct competitor.
It appears the regulators want fewer banks to deal with.
no limit on field of membership and cost advantage of providing services/rates
A credit union is opening a branch in a town of 1,200 people that already has four other banks in it.
In our area, all of these institutions are aggrtessively seeking new business. There is limited organic growth, so growth at any one bank ususally is the result of aquiring a customer of another bank (or CU.
Due to regulatory and financial advantages these types of GSE's and Cooperatives have over traditional banks.
I see very little changing in our market
The competitive landscape always changes as more avenues are created or made available for other institutions to connect with customers. Customers are willing to do business in a constantly growing area, and markets and the intranet allow for continued expansion of where competitors come from.
The larger banks have a real competitive advantage especially since all of this regulatory non-sense started.
The regionals will increase their presence in the rual markets
They are the closest competitors to our branch locations.
our market doesn't change much in terms of competition.
Bank consolidation is increasing overall bank sizes therefore alienating more than usual amount of small business customers
Not a lot of large or community banks focusing on sustainable lending
Banks in our area need to focus on loan growth to mitigate reduced margins.
Everyone is looking for loans, high quality.
They are the predominant market force in my trade areas.
The only non community bank in our markets is Bank America which does not have operate with on-site lenders.
We're in [redacted],TX -- it's a strong economic environment.
More of them moving into our market and competing for the same market we want.
Market is not growing, so the only opportunity for growth is by taking customers from other institutions.
Larger banks have more opportunities and can take the interest rate risk that community banks are unable to partake - especially now due to the ATR/ QM regulations which resulted in the limited amount of mortgage products community banks can offer.
Competition in our market has always been active.
We have had 5 financial institutions in our communtiy and all have mmaintained a porportional part of the market.
The marketplace has been relatively constant for the past several years.
We already have a large number of competitors in our market and do not anticipate new or additional banks during this economic environment.
As banks have cleaned up their balance sheets and working out loans becomes less of a focus in an improving economy, they will turn their attention back to lending.
We operate in an attractive market, and we continue to see increasing competition at all levels.
We will be moving into a market where they already exist.
The larger banks will have a distinct advantage over the community banks due to their ability to absorb costs associated with compliance and excess liquidity to price loans cheaper than community banks.
Banks are expanding their market areas in order to generate loan demand.
Credit Unions are growing fast and their tax exempt status gives them a very unlevel playing field
Competitive marketplace as fiancial instituions search for yield to offset increasing levels of compliance/regulatory costs.
Federal Land Banks, Texas Land Banks, etc. offer extended low fixed rate loans. They continue to Poach loans the best loans from our portfolio.
There is a branch of Wells Fargo in our town of [redacted] and a [redacted] branch which is out of [redacted]. There are no new banks anticipated for this area.
We are seeing merger activity that is showing new banks entering the market place that were not there before
Large banks offer rates and terms that are hard for community banks to compete with.
More competition is expected from non-bank entities then financial institutions.
We do not anticipate additional competitors in the area.
Market is robust - many new competitors entering market. Competitive pressure causing many to loosen underwriting standards.
No new banks opening, fewer mortgage companies in the area.
This is the primary competition in the market place.
They are growing too fast. Tax exempt status makes for unfair playing field. We can't compete with their deposit rate offerings. CU branching in our assessment area.
COMMUNITY BANKS ARE MORE GEARED TOWARD AG LENDING. POULTRY
We make loans (consumer and residential) to rural people. The big banks don't look for loans of this type.
these alternative lenders are becoming more common in business lending
There is a competitor in an adjoining county that is planning to open an LPO in our county
It appears that all banks have budgeted for significant growth in 2014 and 2015.
Ability to absorb compliance-related costs associated with new and pending mortgage laws.
Scale of operations helps the large banks absorb the low cost pricing that we are seeing being offered. Credit unions don't have to play on the same level of field that community banks do and that also affects competitive pricing AND regulation.
Regional banks are under a lot of pressure to cut costs and are essentially slashing loan rates to be competitive while also reducing their personnel.
Competition for good loans is high, especially given declining net interest margins.
They are offering cheaper interest rates and make up the difference for charging more for services.
Farm Credit Banks are taking the best customers by offering low fixed rates, non-bank competition increases all of the time focusing on Consumer lending. They can be more creative since they are unregulated.
Farm Credit System and Credit Unions market a lower interest rate product.
Mortgage data shows increasing market penetration.
No real change in the area financial institutions.
Regional players are becoming more aggressive with the smaller credits & credit unions are directly competing with banks. THere appears to be little difference between what a mid-size to large credit union does as opposed to a bank. It is unfair that they have the tax advantage and their pricing reflects that
More aggressive loan and deposit pricing
They are aggressively marketing to our best customers in our trade area with an unfair tax advantage.
I see fewer people making home and ag loans and the big banks looking to come and cherry pick the good customers in our rural areas.
There hasn't been much change in the number of lending institutions in the area for several years.
Our area has several $1 Billion dollar community banks that are becoming more agressive with their lending
We have noticed a greater market penetration by credit unions.
NO MAJOR CHANGES IN THE MARKET AREA WITH COMPETITORS
There have not been any catalysts in our local market that would increase or decrease the compeition level we face.
Our market area is already bank-saturated and no new banks are expected to open in our market area.
I do not anticipate any new financial institutions coming to the market. We do anticipate the largest financial institutions trying to buy their way back into the market after being absent for the past few years.
New Credit Union opening in our community, when there used to be none.
Our niche is residential mortgage lending and we do not expect an increase in that lending product from our competitors, thanks in part to Dodd-Frank and new mortgage lending rules.
We are in the [redacted] MSA but a county of [redacted] people with [redacted] other local/regional bank. No one else desires to enter this type market and our customer pool is relatively stagnant. Our local economy is slow to recover and many of our core customers can not bank with larger banks due them not fitting into "the box". Most would be considered sub prime borrower per the regulatory definition. we serve a niche market that no one else will serve.
WITH APPROXIMATELY NINE BANKS WITHIN AN EIGHT MILE RADIUS OF [redacted] THE COMPETITION WILL ALWAYS BE ONGOING
No new Banks in our trade area, Credit Union are staying aggressive.
many are raising capital that they will want to use.
Loan growth is difficult Low interest rate environment Rising regulatory costs
We are in a small community, which is considered over-banked. Competition has been strong through-out period.
Operational costs are increasing with the implemenation of new regulations, new systems to handle the new regs, etc. This is causing our NIMs to shrink - however, we are all pricing loans as low as possibleto complete with neighboring banks and the governments artificially low rates.
I've heard the rumor that Farm Credit is targeted a few smaller markets in West Ky for branch presence, with partial focus on residential lending.
The CU in our area is becomming more aggressive both in terms of loans and deposits
Regional and community banks are located in markets that provide new growth opportunities.
Don't anticipate a lot of new lenders entering our market
Not much change in the area. Farm Credit still a competitor, but seem to be less aggressive than they were prior.
Because of their tax exempt status we cannot compete with their deposit or loan rates. It's not a limited target area for CUs anymore, they go after everyone. Because they're growing at such a rapid rate they have an huge economies of scale advantage with the continuous compliance changes and challenges.
I don't forsee significant changes in our market
We are seeing much more illogical pricing on loans from all of these in the past 3-6 months.
Markets are primary community banks already; as each are recovering from asset quality issues, getting more aggressive on pricing and growth.
Based upon the trends we have seen in the last 12 months.
There will be significant consolidation of the community banking industry due to regulatory costs and burdens. Credit unions continue to have the income tax holiday that allows them to absorb those costs easier.
We do not have direct credit union competition and the most aggressive competitors are other state chartered banks
No expected change in the number of competitions.
Physical offices and their proximity to a business or consumer are becoming less and less relevant, due significantly to technology. Therefore, a business or consumer can be served from anywhere and that increases our competition.
Local competitors are community banks and credit unions. Non traditional competition from WalMart, etc will also occur
Our market remains very consistent and stable typically.
Stronger active from other lenders as eco continues to improve
The bank's assessment area is located in an area with little economic growth. This limits the number of competitors looking to move into the marketplace.
Credit unions have become a key competitor in the consumer market; other banks will continue to call in our area to grow business - both community and the regionals in towns near us.
It appears that the bigger banks are now starting to push back in our markets as they did pre 2008. They are now offering products which they had shunned their customers prior.
All financial institutions are actively seeking yield and new customers and generally the view is that economic conditions are appropriate for lending expansion.
Larger banks have a significant advantage. Regional banks in our market have been more active and seem to be more aggressive. Community banks in our market are being acquired by regionals, who are competing more on price, fixing rates for long terms, and lower credit standards in their lending activities. Credit Unions are becoming very active and using their price advantage, offering extended long-term fixed rates, to grow rapidly and compete in commercial loan transactions. For example, there are credit unions that have entered the indirect auto finance business and are offering low buy rates to dealers who in turn offer them to the general public with no real common bond. There are a number of non-bank lenders (i.e. captive finance companies, Lending Club, Prosper, and similar commercial lenders) that are somewhat of an increasing threat because they can use scale and are not subject to supervision by the banking regulatory agencies.
They continue to expand their loan products and promise patronage dividends
I think they have more liquidity and are able to price quality loans more competitive
We are currently not offering owner occupied home loans. However, if we were offering them I feel competition would decrease because many have decided it is not worth the compliance risk and costs associated with offering them.
They are somehow able to offer very low rates for very long maturities.
We expect the banks we currently compete with to continue to be our primary competition.
(1) There will be approximately $300 million in new capital needing to be leveraged. (2) Many of the banks in our market place are still well below their traditional 70-80% loan-to-asset ratio and need loans... and with the economy growing at sub-par levels that means marginal net growth.
All small community banks are fighting for the same customers, on the retail and commercial side. In the reatail space home prices are appreciate but the inventory is not supporting the sort of originations we exepct. On the commercial side there is not a lot of new business and business creation, just banks stealing customers from one another.
Credit Union pay no taxes; large banks are under cutting the commercial and residentail lending rates (especailly for non-ageny (jumbos) products by more than .375 in rate. Jumbo rate for them are lowered than conforming mortgage rates, BOA, CITI, Chase, Wells Fargo ect. all have .25 to .375 rate lower for jumbo residential mortgage than the condomring rate sold to agencies.
The larger institutions are able to offer competitive rates and they are ahead in technology.
I see Large banks losing market share to community banks but the community banks will be tough competitors for that business.
Fort Worth and Dallas are high growth and economically robust markets that will attract financial service companies. Non-bank lenders are gaining market share.
Retailers involved in credit; insurance companies expanded financial services
No new FI's are expected in our market within the next 12 months. Area of stagnant population.
We compete with predominately rural ag Banks as our county does not have a major money center community.
We realize competitive pressures from those sources in our Ag portfolio on a regular basis.
Competition is strong in our area at this time and we expect it to continue.
We have been competing against the local credit unions and the larger financial institutions such as Wells Fargo and Prosperity. They have been in our area for a lengthy period of time. They are not leaving our area. They can also employ economies of scale to reduce their expenses and drive down interest rates. The compliance burden on a community bank is greater due to the amount of staff that is available to execute the demands. The larger institutions also stray from standards that a smaller institution such as us try to adhere to. A good example is 100% financing of a home.
No new players in our market, expect to continue to compete with Farm Credit.
The current level of competition is intense. There are no compelling reasons that would indicate that the current level of intense competition will change significantly.
In our current market area we do not see any new competition moving into our area.
Modest increases in the demand for credit being exceeded by large increases in the supply for credit.
Community Banks in our market have stepped up to the plate
No changes expected from the competition and no new institutions in progress.
Our area of Southern California is already a highly competitive market area for large banks and community banks - we don't see that changing.
It has been a highly competitive time in our area and we don't anticipate it changing much. A lot of banks of our size are merging with larger banks so our peer group is shrinking but competition from larger banks will increase.
Some of our branches are in small markets and underserved, others will see the impact of rising rates weakening the price competition for loans somewhat in my opinion.
We compete in a market with two very large credit unions, one of which is relatively new to the market, both of which are very aggressive.
Banks are aggressively getting into commercial lending and developing more small business lending.
We are in a rural area. Banking institutions in this area have not changed dramatically.
I don't anticipate the banks in our areas changing over the next couple of years.
Regional Bank and Credit Union in our market are agressisve in pricing and structure with their loans...
Farm Credit offers below market loan rates.
Competition level has remained steady for the past five years
Regional Bank has aggressively contacted our loan customers (large borrowers) and undercut our rates to gain the business. This has cost us several large accounts already. Additionally another community bank is opening an office in a town we currently service.
no material changes in competitor community banks, larger banks have not demonstrated any improvment in being responsive to small business and consumer residential construction clients.
Due to our capital and locations our competition is more from the community banks than larger institutions
Large Banks - due their deposit pricing advantage. They also, because of more agreesive fee income strategies, which supplement their earnings, attain lower NIMs; therefore, their loan pricing in many instances is more agressive than ours (community banking). Also, as rates rise, I realize we will lose funding on DDA's due to Reg. Q (under Dodd-Frank) going away as TBTF's will attract core commercial deposits away from community banking by paying higher levels of interest on these deposits than community banking. Community Banking - We serve [redacted] markets in Texas that encompass rural and semi-urban communities. Strong and long established community banks in our markets are our primary competion due to their desire to grow and diversify risk. They also have higher levels of customer service than the TBTF's. These community banks are beginning to reach for yield to grow asset portfolios which reduces everyone's NIM. They are also becoming more agressive on loan pricing and expansion minded.
We are predominantly in non growth agricultural rural markets and the market share is limited to the current competition with less desire for start up banks to enter. Non-bank competition in Farm Credit and Credit Union has greater threats.
Nothing ever changes in our market area.
No significant shifts in the marketplace are expected
The bank has chosen to expand it's footprint for residential lending
I don't see additional players in the market place. I do see some consolidation.
that is the competitors in the markets we serve
Large and regional banks appear to be concentrating on increases in volume at the expense of appropriate asset/liability management concerns. The aggressiveness of pricing and structure is high, presumably to counteract reduced fee income as a result of regulation and strained loan volumes.
We have not seen the level of competition change and do not expect it to.
Stable banking community. Our loan demand steady.
We see an increase in calls to our existing customers
We are seeing some of the community banks that decreeased there commercial lending, specifically construction lending, during the economic downturn return to this business. Additionally, we are seeing increased pricing competition to gain market share.
There is a smaller pool of borrowers due to the economy and more intense competition for qualified deals.
They will go after smaller loan requests
These institutions have more aggressive growth strategies and are moving into our market and after our customers because they are having a difficult time finding new customers in their markets.
as interest margins tighten big banks and credit union will use there price advantage to under price community banks.
Pricing, regulatory and tax advantage of Farm Credit. Low loan volumes of other, larger, community banks.
Our environment is very competitive but we no not anticipate any new completion in 2014.
In our region, loan demand is soft and we see more pressure from larger regional banks and larger community banks prospecting customers.
Competition for loans is fierce now and I expect that to continue.
All of the above are competitors for an increasingly small loan market.
Excess liquidity, weak economy, and earnings difficulty will cause banks to be "extra competitive."
The competitive environment will not change although we intend on originating an Investment Services division so we hope to grow our market share on client services.
Competition for loans and deposits has continued to intensify in our market, particularly in recent months.
They (FFC)are "lurking" around waiting to pick up agriculture customers. Community banks are also lending at rates and terms they think necessary to pick up additional business or retain what loans they have on the books. The larger they are..... the more likely they are going to get this past the regulators. This is a whole different story!!!
The demand to grow loans is increasing coupled with increased regulatory costs to small banks makes it more difficult to compete
Not much change in our local banking market.
They have flooded the large markets and are moving to smaller ones
loan demand is weak and everyone is looking to add loans
Credit Unions have a significant advantage with their tax status and the increase loans allowed The increase in technology, security and compliance regulation expense is the same for all banks but will have less negative effect due to asset size of larger banks
Number of Banks in the area is pretty stable.
they are under pricing all of our land loans
There are very few mergers/acquisitions taking place in our area. Thus, the competition from banks should stay about the same.
We are in a large attractive market with a lot of competition.
Increased marketing efforts and increased number of branch options.
Community banks because there are [redacted] banks in our town of [redacted] people. Also, the credit unions are offering our customers such low rates, which they are able to do because of their tax status.
Many competitors have a significant amount of cash on their balance sheets, and have been that way for the past several years. As interest rates continue to remain low and show no signs of a significant rise in the near term, these competitors are starting to put that cash to use to enhance their earnings. This increasing demand for loans, which is not being offset by an increasing supply of loans, is leading to a significant increase in competitiveness in our space.
New branches opening in our primary market dividing the already static market.
Pretty much every bank with which we compete has less than $10 billion in assets. I do expect additional competition from non-banks.
High quality customers are being sought by banks of all sizes and margins are narrower for each deal. Credit Union tax advantage along with Farm Credit structure create an unlevel playing field.
don't know how it could get more than it is.
All competitors at all levels from the 50 largest banks to the non-bank financial service providers are targeting my bank's best clients with their products and services.
No regionals in our area, credit unions may play a larger part.
everything is getting more competitive as we are all going after the same loans now
It appears that our competitors will be changing their business models or products within the next 12 months.
we are expanding into areas the are currently banked by larger competitors
They are gaining advantages with our increased regulatory burdens.
We sit 2/10ths of a mile from a rural designated county and will be faced with unfair competition from the rural area banks with full exemptions from the current new regulations. We are as small if not smaller than most of the banks in the rural designated areas. We share the same customer base.
Correspondent banking is a low return business so the larger banks will likely exit while the competition will increase among the remaining market participants.
Based on existing trends in our markets. Lot of aggressive bankers chasing a limited amount of credits.
Especially Credit Unions as they are expanding beyond their historical charter and purpose.
banks are healing and aggressively seeking credit in a flat market
Just the nature of the business, it's competitive and we need to keep up with new products and delivery methods.
Its a product of the economic environment we are in. Every instituion is look for profitable growth to survive
Most if not all Local and Regional Banks are looking for good earning assets, both commercial and residential loans.
Regional banks' thirst to grow loan assetsis driving pricing down and causing less strict structure...
I do not know of any banks entering or leaving our market.
Many strong competitors in our markets that have remained somewhat stable over the years.
Always will be competition...rural in nature...outside influences static
With low loan demand, there is more rate pressure and less assets available to go after.
Not much growth in competition but it really has not lessened either.
Do not see any change in our competitors
Area has high level of competition, so doubt whether that will change drastically in the next year.
We oeprate predominatly in low growth market places and community banks in our market will need to steal buseinss from others to enhance earnings. We also have a major competitor who has recently expanded services in the commercial lending area.
More banks seem eager to join the venture lending space.
Not a lot going on from an M&A perspective in the area; still competing with irrational smaller players and rational larger ones.
Farm Credit in essence is backed by the government. They can issue bonds and always loan at a lower rate than a commercial bank.THey can and have failed and been backed by the government.
Customers continue to migrate as their dissatisfaction with the megabanks.
In our market, there are many banks, just about on every street corner. There have been new entrants to add to the competition, all of whom differentiate themselves as providing superior service and products.
Because Credit Unions are growing so fast everywhere, especially Eastern Iowa
There has been a continued growth of competition within our market.
more credit unions and other community banks continue to open offices in our area.
Many competitors with fewer loans due to rising rates.
There are over 50 banks here in [redacted], TX, 90% are less than $10MM and rates seem to be getting cut every day.
Another community bank has branched into our market and credit unions are becoming more aggressive in business lending.
Everyone wants more market share in a market that has minimal growth.
Increasingly sophisticated payment options for consumers therefore creating less demand for traditional banking services
Based on our market area, I expect the regional banks to take a much more active role on the lending side. I also expect community banks to continue to try and gain market share in a declining market area.
Credit unions are on the edge of our market, and headed our way. They are using their tax advantage to pay for significant marketing costs.
they are more aggressive in loan pricing and have more resources to throw at a limited number of loan opportunities in the market
Large banks are under less supervision then smaller banks and have more freedom to compete. Credit Unions are expanding their powers.
Number of bank offices in communities we are in is declining - but Credit Unions are expanding
It appears to be stable in our enviroment.
New Credit Union and an addition of another Bank in our area.
credit unions expanding powers all the time; regional banks reaching down for smaller borrowers
Our local competition has not changed over the last few years.
Only limited number of competitors in Hawaii. Hawaii banks remain consistent in regards to size and customer base.
Increased loan competition and declining spreads
The types of competition have changed over the eyars, but we have been competing with other community banks, larger banks, as well as non-banks for a long time. Any thought of M & A reducing our competition is naive.
They are aggressively soliciting our BEST Ag customers and offering low fixed rate extended term financing that prudent management and our Regulators strongly advise against
Larger banks will no longer see the same revenue benefits in their trading desks, therfore, will pursue more traditional commercial lending activity.
Credit Unions continually exceed their charter responsibilities by extending their membership unfairly. And do not pay their fair share of taxes, etc
A larger bank has purchased a community bank competitor and is currently offering lower closing costs and rates
We are located in a small town with two other lending institutions whose primary service is agriculture lending.
All banks in our area are ramping up their loan business
A community bank is opening an office in a city where many from our markets work or shop.
The competition within the industry is growing at a rapidly increasing pace. Locally, credit unions are posing the greatest challenge. There are three credit unions in our local market that are aggressively expanding offices, product offerings, and personnel. These are credit unions that are acting more like banks than they are credit unions. It is impossible to compete with credit unions such as these due to the fact their deposit rates are considerably higher and their consumer lending rates are considerably lower. Their tax-exempt status and lighter regulatory burden are advantages they eagerly play against us as banks. Other players are also able to aggressively compete with us in niches and also avoid the regulatory scrutiny. PayPal, for example, has captured a significant part of the payments system. Yet, they are not obligated to follow the regulations banks are and they are not subject to examinations. With the advent of the internet, there are a host of companies that offer financial produ
Each year competition seems to increase and I don't forsee anything to change that.
Excess liquidity is driving them to significant interest rate risk.
Local market remains stagnant and larger regional and community banks are very competitive on pricing, having to work harder to keep customers, let alone grow
Primary competition is from community banks, credit unions, and the farm credit system. No regional players in our trade area.
We don't anticipate the interest rate environment to change dramatically, as a result the competition for good credits will remain high.
No new competitors expected in our markets
Market we operate in for loans has at least six other community banks under $1 billion with which we compete and there are two large credit unions that already dominate local consumer loans and is now moving into commercial lending.
Financial Institutions in our trade area are locally owned with one exception. We don't anticipate any new competition. The regional financial institution is not very aggressive in lending in agriculture/rural areas.
Most of our clients maintain business relationship with banks such as BOA, CHASE.
Loan growth goals for all institutions will challenge us to obtain our loan growth goals.
Competition for loans and deposits are not expected to change significantly in the next year.
We don't see addtional competition coming in due to our local economy.
We have had a number of new banks come to town over the past 12-36 months so I am not expecting many changes in the near future.
Don't anticipate more competitors entering the market.
We don't play the rate games, we compete with no one. Our bank has its own unique niche so I don't foresee any changes in competition.
We are out on the edge of a mid size MSA and our area is all agriculture.
We continue to compete with banks and LPOs in our markets.
Same banking structure in the community.
Banks and CUs expanding and there are dozens of non-banks looking to steal our customers; from BlueBird to digital wallets.
The current interest rate environment will likely remain static next year continuing to cause earnings pressure from other institutions.
Due to system conversions, product and service changes, and employee turnover
We will continue to face competition from community banks as well as regional banks in the markets we currently serve.
There is no new competition in the area.
Our rural market is made up of small community Banks all going after the same deals and competition will increase
Large and regional will use their scale to offer lower rates to credit qualified businesses. Community Banks under $10 billion will be looking for income to offset the loss of mortgage fee income. Too many dollars chasing too few loans.
We are moving into a region that is dominated by a bank that size.
Pace of regulatory change and lack of ability to spread increased cost over a large asset base or to customers.
They are more active in the mortgage market.
We have all of these types of competitors in our market, and they have all ramped up their loan products.
Greenstone has a tax advantage and access to capital markets for longer term rates.
Competition has remained same for some period of time
becoming more prevelant in our market areas.
Community banks due to costs of compliance and origination are exiting the SFR market and increasing their presence in area previously primiarly occupied by regional bank.
We regularly see proposals from these competitors today which we have never entertained in the past. They have excess liquidity which they need to put to use for earnings. It is an absolute given this behavior will continue in the future.
1. Low interest rates. 2. Think some banks are exiting due to the perceived compliance/regulatory risk and some banks are entering because others are exiting.
Market is very competitive already. Expect little change in the market participants.
Our Bank has had to sell due to the size and effort and $$ necessary to Comply with all the regulations. No way a 15 million community Bank can survive and we didn't. We don't have a bad asset on the books and still have to sell out. [redacted]
Loan demand is still not very strong, in RE to new borrowing. More lenders are chasing the "good" borrowers.
No new entries into our market are expected. We are competing for generally the same market share.
There are no major changes in the financial services industry going to occur in the next 12 months.
Other banks have branched into our community.
Mostly comunity banks in our trade area.
Seems the growth in banks in our area are in the regional size.
There is tremendous competiton for loans and I don't see that changing. Technology allows larger banks to come into our market and compete on low price inside our market.
Less strict underwriting standards and low pricing
Not anticipating changes in the number of organizations we typically compete with.
Local Community Banks are more prominent in our market area, and more aggressive.
All banks are our competitors, as are other non bank payment providers
Regulations and politicians favor large banks and credit unions.
Non-bank entities are becoming more competition in payment system and for consumer/residential loans.
Despite barriers to entry, we're all competing for the same business and business growth remains limited in the current economic environment.
Shrinking number of community banks in our market, acquired by regional area banks
IT IS ALREADY HAPPENING. WE JUST EXPECT IT TO GET MORE DIFFICULT.
They are expanding their influence in our area through human resources and also funding levels. They have an unfair advantage in loan pricing due to their lower funding costs caused by their quasi-government status.
We do foresee other institutions moving into this area, but competition for loans and deposits is already fairly agressive
FCS has certainly funding advantages being a GSA. FCS and Credit Unions are also tax exempt which provides a significant competitive advantage.
Lowe cost of funding therefore the ability to offer lower loan interest rates.
Credit Unions have a competitive advantage.
Not anticipating factors for significant change in competition
Rates continue to be low and all banks need loans. Interest rates and terms are the two factors banks can control and many competitors are becoming more aggressive on both factors.
Due to the internet, for larger banks, expanding territory for regionals, and Farm Credit is agressively pursuing strong farming operators.
No new competition entering market yet no one leaving the market.
The regulatory environment is currently creating the same issues for most of our local competitors.
No changes in the market place as to competition.
Credit Unions in our area are hiring Commercial Lenders. I have lost two to Credit Unions in the past 9 months.
The market has a slow recovery. Majority of our loans are from other banks and not necessarily "new loans."
I don't anticipate any banks entering or leaving our market space.
More community banks are opening in our area. expect some small community banks to merge and become more aggressive.
Already operating in a hyper-competitive market with multiple community banks, super-regional banks, and credit unions.
Our area is not growing and therefore no new financial institutions will be moving into the area.
We operate in a rural area. Local competition stays fairly constant, and outside competition should not change dramatically in the next year.
They are very aggressive in the area making risky lending decisions in terms of credit, terms and rates.
1) Large banks have forgotten the challenges of 2008 and are reducing underwriting and pricing; 2) Credit Unions are being given more power and latitude to operate within the commercial lending arena, regardless of their qualifications and without regard to their tax-exempt status; 3) economic improvement leads to more competition; 4) there is tremendous liquidity in the banking system and a strong need to earn additional income - which means loans.
It's already happening in their pursuit of loans they typically did not pursue before.
I don't see the CFPB's role as overseer of consumer regulations making a difference yet. Hopefully, they will focus on more of the unregulated financial institutions which I see as a benefit to banks. That and harder reviews of the Credit Union Industry and Farm Credit will level the playing fields a bit and be advantages to banking.
National banks and lager community banks offer lower rate and pricing.
Limited movement of competitors in and out of the market. Continued impact of non-banking entities on comsumer deposit, payment, and lending.
The larger banks are able to lead with technology which will give them a competitive advantage.
Have already seen competition for loans from them
With the creation of the lending groups that are selling participations etc.. for the loan side as well as other non-financial institutions offering alternative financial services
Banks currently have excess liquidity and declining margins. Everyone is seeking yield.
competition in the metro area is already tight with lots of banks competing for a limited number of opportunities.
rate driven competition will remain on par with 2013-2014.
We are in varying markets that include a large metro area which has heavy competition from national institutions as well as a smaller MSA location that will have heavy competition from small regional banks as well as credit unions.
Larger regional Banks are going after larger credits which are generally our larger stronger producers. Those type of producers borrow more dollars and are less risky loans due to the overall strength of the large producer.
Represents most significant loan competitors in our market.
Unfair tax regulation allows credit unions to expand beyond intended roles.
They are entering into the commercial lending market
although we are in an MSA, we are a rural community. Large Regional Banks do not seem to have interest in rural areas of the US.
I do not expect significant change in the local banking makeup.
Change in Dodd-Frank Act and other regulations that smaller servier can no longer afford to be a part of.
Competition in the area has not changed significantly in the past several years.
All area institutions are sound financially and satisfactorily managed.
Lack of loan demand. Everyone searching for good quality loans.
The smaller banks and credit unions seem to be getting more competitive.
We have an over capacity in a rather stagnate market. The rules and regulations, technology cost and other overhead has community banks trying to get larger to cover the additional costs and the only way to do that is to take the business from someone else. The red tape and the length of time to make a loan because of that process will cause the increase in business for consumer and business lenders who are less constrained and able to act quicker due to fewer regulations. The historic low level of interest rates and lack of investment alternatives other than lending has intensified the competition for lower lending rates which may not produce adequate spread but are better than other investment alternatives. Since Credit Unions don't pay taxes they are able to offer lower rates and we are seeing larger credit unions expanding and offering rates that we cannot match.
we are in an are that no new banks will come into our market. We already have competition from agricultural dealers.
Our Bank's market is in a rural area and our customers do not seem to be interested in new services or products. Their primary interest is good service at a low cost.
They are currently cutting rates on loans they are making in our marketplace.
do not anticipate any change in bank competition entering our market area
The credit unions are becoming increasingly more prevalent and aggressive in consumer lending, particularly auto lending. The rates and terms that these credit unions offer are at a level that it would either make no sense to try to compete with them or make absolutely no sense from a consumer lending prospective. I am confused as to how an air force base credit union can offer auto loans through dealers in a county that is 50 miles away from the credit union's closest branch. It appears to me that the credit union's purpose in existing has become lost and that they are in fact tax-exempt banks.
The (tax exempt) credit unions keep adding more and more new branches in our market (probably 10 in the last 2 years). FSC's implied Federal guarantee allows them to borrow at risk free rates and use this to offer low rates to our largest farmers.
Other than the bank branch and the credit union branch in our town, other lenders aren't interested in our niches (production agriculture, consumer, and small residential rural real estate).
Credit Unions are very aggresive in our area and there have been two recent bank aquisitions as well.
If economic and market conditions remain as they are currently, competition will be similar next year.
We have seen the largest banks driving down loan pricing and degrading loan terms such as very long term loans; high LTVs; and reduced guarantees on small business and small investment real estate loans which of course has infected our community bank peer. Credit unions continue to become more active although less direct except become pertinent because they do things that commercial banks in general would not do in terms of offering high risk loan structures.
Underwriting standards seem to have "normalized" and good quality growth is what all banks are chasing after.
WE WILL HAVE THE SAME COMPETITION FOR THE SHORT TERM. CONDITIONS SHOULD REMAIN FAIRLY CONSTANT.
Because we primarily do residential construction and many banks are still scared of it.
We already compete with all of the very large banks and many community banks in our market and credit unions.
Market conditions are solid and competition will remain aggressive for strong borrowers.
1. More banks competing for quality assets 2. Commoditization of credit products 3. More pricing competition to win business
A lot of regional banks in our market and we are already seeing pressure.
Unless another financial institution comes to town, don't expect competitors to change much
We are the only bank in small town and choose not to compete outside our lending area. Our biggest competitor is Farm Credit Services.
Due to limited loan demand, all banks and credit unions are bidding for the same customers.
Regional banks operate more in our service territories.
Lack of loan demand and absolute low level of interest rates is significantly impacting loan pricing as institutions look for quality earning assets
Larger banks have never been successful in our markets -- to much remote policy making -- not engaged with needs in smaller communities
Those are the primary competitors in our market.
FCS has already taken several customers from us due to rate. CU's have a tax advantage and thus operating advantage.
As more community banks merge, regionals are likely to become more significant players in my home state.
COMPETITION IS STIFF NOW. Don't see it changing.
Several aggressive regional banks have moved into our market via acquisitions. And credit unions are expanding by leaps and bounds and compete directly with community banking services.
More banks moving into our existing market territories.
We have experienced increased competition the past three years, trade area is saturated now.
Credit unions advertising and operating as a bank without taxation. Same with FCS.
Smaller banks won't be able to compete and will get acquired from larger institutions
some area banks have been sold to larger institutions in our area, and the Farm credit and implement dealers go after our farmers with competitive rates.
More resources to put toward technology updates and the cost of compliance.
Community Banks are dominant in our market for commercial banking services
Competition for commercial loans is increasing. Fewer good loans; smaller banks always competition. Larger banks increasingly lowering the dollar size of commercial loan to which to market.
I'm not aware of any new competitors entering our market that will be pursuing the same types of loans as our bank.
Big banks are competing for smaller loans than previously.
Area is pretty well saturated with banks. Don't really expect a lot more to enter the market.
Same competitors, same desire to produce new loans
We are competing on loans every day with the credit unions and Congress continues to expand their charters.
Large banks are pursuing more small business relationships.
They are very aggressive/predatory in their loan pricing.
Declining population area. Re-slicing the market share.
Large banks are competing for single family loans on price, to fill their pipelines. Regional and Commmunity banks are competing for C&I loans, with more banks focusing on business lending, with resulting increased competition. All sizes of banks are competing for multi-family deals, with price and terms.
Economic recovery is still too slow. Everyone seems to be fighting over the same quality customers for growth. Credit Unions continue to expand their service areas and the types of customers they are willing to service.
Consolidation is affecting all industries which leads to fewer opportunities to find bankable customers. Technology is also making it easier to compete without a geographic presence.
We have a new competitor coming to town.
Competition in the area has remained stable for several years; however, Farm Credit is building a new and larger office which may increase competition.
The increased regulatory burden under the Dodd Frank Act and Bank Secrecy Act regulatory requirments creates an environment in which it is difficult for community banks to compete with larger financial institutions. Community banks are expected to comply at the same level as large financial institutions. However, community banks do not have the ability to expand compliance resources in order to meet expectations in a cost effective manner.
In Arkansas, there ae by far more community banks than large national or regional banks. The reason for the size comment, is we are seeing consolidation of smaller community banks into larger community banks.
Everyone is seeking the same customers and the larger banks are starting to target the smaller dollar volume loan customer.
With the constant changes in technology and the needs of customers, we will always be modifying our product mix and services to best accommodate the community.
That has been the history of this region.
small market area, most of us facing same challenges, competing for fewer available good loans
We are a small community bank and management has developed a business plan that adequartely prepares the bank to effectively compete within the local market.
The current environment is already characterized by low interest rates and liberal underwriting. We expect that to remain the same next year.
There isn't a real threat of things getting more or less competitive. We still have Credit Unions and Farm Credit to deal with.
Large banks can better absorb the technology costs for compliance and financial crimes monitoring with less of an impact on fees and rates.
The big banks will stay the same, but the regionals and community banks will get more aggressive and more competitive. The credit unoins are now also trying to get into commercial lending.
The economy continues to be weak. There is not a great deal of growth to support everybody's growth needs. Taking business from another bank is one of the only avenues available for growth.
The mortgage brokers have pretty much been thinned out by now and normal competition is steady.
We currently have fierce competition from other local banks as well as credit unions in the area and the government entities in our business. I don't see this changing in the next year.
Untaxed credit unions are using their competitive advantages of increased earnings and reduced regulatory requirements to build branches. Regionals are buying/building branches for market coverage as they position for sale.
Competitive environment with shortage of quality new business to bank.
Our market appears very stable in the current economic environment.
We are in a stable area, with a slight pattern of growth. Our area is not attractive however to 'city banks', and therefore we do not see any additional competition on the horizon.
I don't see any new lenders coming into our market and I don't see any existing lenders consolidating or closing branches.
The bank has a high community service and strong link to the local coverage area, the relationships we maintain adds to our niche.
NO CHANGES IN THE LOCAL BANKING BUSINESS
Aggressive local community banks and credit unions.
1) Credit unions are doing more commercial lending - but only to "A" and "A+" credits - so there is no more credit available to businesses - only more competition for high quality credits. 2) The slow economy continues to hamper loan demand, so banks of all sizes are becoming more aggressive in seeking loan volume.
In the past year Navy and [redacted] credit unions have entered our market and expanding agressively.
Large and regional banks are thinly pricing, granting long-term fixed rates & loosening covenants and underwriting standards. Credit unions are increasingly into business lending.
We do not see a major change in our banking footprint
There is a new Credit Union opening in our Market Area and they have already started advertising that they can do more than banks can do.
These institutions want to increase their 1 to 4 famuily lending. More institutions are building branches in our communities.
Credit Unions are becoming very agressive in our area and because of their tax free status, are able to offer pricing, both deposit and loans, at rates that are not financially fesible for us to match. National Banks are not interested in the market area we serve. Regionals however are very competetive and expected to be even more in the future.
one local and one nearby CU hammer us on rates -- plain and simple. They do not pay tax, nor pay shareholders on their stock giving them a competitive edge. Sub-S helped us with the tax issue, but shareholders demand a return for their investment and we would not exist without them.
We operate primarily in [redacted], TN. While there are more banks coming to the area, our niche clients, businesses with $5MM or less in sales, are still ignored or underserved by all the larger banks, leaving us with plenty of opportunities.
we are seeing an increase in branching activity and technology from all [redacted] competitors
Aside from Farm Credit making a consertive push into mortgage lending we are confident that we can compete with the financial institutions.
Our sister bank is in the process of being purchased and the bank that has purchased them has already begun to establish themselves in our market.
M&A will reduce the community bank industry and cause stiffer competition amoung the remaining ones.
As the economy's growth rate remains below historic levels and the financial services industry experiences both excess liquidity and historically low interest rates, each of these competitors are in the hunt for a limited pool of credit-worthy individual and business borrowers. We anticipate greater competition on loan terms, including interest rates, repayment schedules, and credit-enhancing loan covenants. Of these competitors, FCS is proving to be among the most agressive in the agricultural space while credit unions compete strongly on price and repayment terms for consumer loans.
Credit Union competition continues to increase. The merger of community banks within our market area brings opportunity and also increases the competition.
Credit Unions are making more commercial loans and even though they are suppose to be limited in the amount of commercial loans they can make we are seeing them taking some large loans.
Our business lending structure has remained the same and in accordance with our bank's business plan.
Not much change in rural Eastern Washington
In our market, the large national bank institutions continue to offer reduced interest rates and less stringent underwriting standards than the typical community bank. Given the current rate envorironment we don't see this trend changing in the next year.
Expansion of the credit union base accross the state.

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limited capital, reduced demand and less customers qualifying
We originate 1-4 family mortgage loans and then sell to Freddie, therefore all of our mortgages are deemed safe harbor for QM.
Portfolio loans will be refinaced as secondary market loans and sold.
Rates higher, Promotional consideration limitations
Increased infrastructure, personnel and marketing programs.
staffed to grow more mortgage loans this year
Rates have risen a little. Competition is stiff. We are still interpreting the regs.
Weak loan demand. We will continue to see loans run off at about the rate that we are booking new loans.
We will not be able to make as many non-QM mortgages as we have made in the past.
We are not looking for new volume in this area
we have seen an uptick in house sales and have a chance to make a few non conforming portfolio loans
Seeing less activity. Rate rewrite frenzie has dried up
It is a big part of our business model. We believe other banks will be exiting the 1-4 family residential lending arena and we are prepared to step in and fill the void.
We are seeing a pick up in demand and some loans do not qualify for secondary market so we will keep them on our books.
We will no longer make non-QM mortgages.
The refinance frenzy is over and new construction is steady and somewhat predictable
Are interest rates are 15-25 bp higher than bigger banks because of th number loans we send to secondary market and with new rules, and regulations takes too long to close a loan
our application process is so much more rigorous due to new regulations, and we are scared of making exceptions.
With interest rates increasing, the refi market is slowing substantially which will likely translate into fewer originations and lower balances.
Our loan growth has been strong and we target 1 to 4 because they are not in the the CRE guidance and carry lower risk weights.
New originations in our area are limited and the opportunity to refinance from other institutions will not exceed current portfolio pay-downs.
Our portfolio remains fairly stable from year to year.
The costs of compliance outweighs the profitability of the product, except in specific situations.
Market is soft and requirements are more stringent.
I think the market has level out and demand is starting to pick up again.
Modest demand for new credit should balance out paydowns/payoffs on existing credits.
We have determined that we are unable to efficiently meet the QM underwriting requirements and are refering 99% of 1-4 family mortgages to our mortgage division, which originates and sell all its loans. The 1-4 family portfolio will decline as payoffs occur and no new loans are added.
we are under the small bank temporary balloon QM guidelines. If not changed by Jan 2016, our mortgage business will essentially be eliminated.
It really depends on the relative strength of the residential purchase market. Previous years have benefitted from the refinance boom, but that is complete, so we will generate more loans only if the market improves.
Housing market is rather flat in our area.
The majority of our 1-4 family loans are sold to FannieMae. In the past, the only loans we would hold on our books would be investment properties with a balloon, or customers who would not qualify on the secondary market and exception loans were made.
We expect 1-4 family residential loans to approximate 50% - just where it is now.
Historically we have increased our portfolio between 3-5% each year.
Market is showing very little demand. Mortgages are becoming commoditized.
As the economy continues to improve and interest rates relatively low we exept to have continued growth.
People in our area are being to buy again.
If we only make QM's - don't have as much opportunity to make RE loans
Qualifications are tougher due to regulations. Banks are more fearful of making loans that are non-qualified mortgage loans.
More competition from online sources, large banks, etc., that have the staff to perform compliance needs with less cost.
Regulations will limit options for consumers.
growth plans for [redacted] county, promotional 30 year product for [redacted] Co.
We are not seeing the large lenders ( Wells, Countrywide is gone) coming back to a rural area
Not much change in our trade area over the past few years.
Our mortgage demand has been low and we do not see much improvement.
With interest rates moving up we are doing more ARM's which we are willing to portfolio.
This portion of our portfolio has remained fairly constant as a % of assets.
Overall real estate lending is down and it does appear that there will be regulatory impact on who can qualify for a loan.
Higher construction costs and higher priced existing homes
1-4 residential real estate loans are mostly sold on the secondary market.
We do not sell on the Secondary Mkt, thus we try to refer our Mtg Customers to a lending Institution that does and offers 30yr Amortizations
Since we will only make Qualified Mortgage loans, we will see the portfolio decline as current loans pay down and fewer new loans can be booked due to not meeting QM guidelines.
Majority of our mortgages are sold into the secondary market and our in-house loans stay quite stable year over year.
new guidelines & bank standards are stricter
I anticipate our loans falling under ATR, which is what we are currently doing.
More homes are listed for sale in my trade territory which will give me the opportunity to grow my totals without sacrificing quality standards.
Refinance market is over, less qualified applicants under new regulations
We sell all of our fixed rate loans with terms of 10 years or more.
Lower demand and paydown of existing loans
We are losing loans already to longer-term fixed rates
In North Dakota, our housing market is still very strong. We have experienced tremendous housing growth over the last three years. While this has leveled out some, we will still have a good year of growth.
we have budgeted growth and hope to see growth. But with new Regulatory changes, some stagnation could be expected.
Mortgage applications are at a 14 year low.
Due to the stable rates and slower market we may have a few refinances and purchases but most will not be held on our portfolio but sold to the secondary market.
everyone that can refinance has. We will start to see volumes going back up as we finance those that cant qualify
We are originating more portfolio loans than secondary market loans right now.
The values for the homes in our market are increasing.
That is the current pace after 4 months of 2014.
lack of demand in both the refi and purchase market
higher rates and less refinance activity.
more customers wanting fixed rate mortgages that we sell to fannie mae.
Over the last few years the 1-4 portfolio has been growing between 1% and 3% annually and we expect this trend to continue.
We have projected flat growth in our marketplace for this type of loan
Limited approval with the new rules and placing all we can in the fixed rate market through a correspondent bank.
There will be good opportunities to lend if properly approached.
We are seeing some growth in new home construction as well as sales. We work with the Bank of North Dakota on a Rural Housing Program that allows us to help our customers who are building or purchasing.
We expect that the majority of new loans will be purchases and not refinancings, and we estimate that new loan growth will likely replace maturing loan amortization or exceed it only slightly.
We are seeing an increased activity in investors purchasing investment properties in the current low rate environment. We expect this trend to continue into 2014.
that is my feeling on the market...homes available etc
We are experiencing significant growth in most of the markets we serve. Housing is expanding and our mortgage portfolio has continued to grow over the last several years.
Increased housing activity in our market - have a small lender exemption from "QM"
We will continue to originate at a healthy pace but will also enter into secondary market sale transaction.
Fewer opportunities to provide financing. Refinancing is effectively over and purchases are minimal.
We are not predicting any growth in our loan portfolio due to a lackluster economy in our market area
Demand is flat, will originate loans about equal to what will naturally run off.
Higher rates have decreased demand primarily in refinance
Keeping more loans on our books as opposed to selling on the secondary market.
Activity in the area has increased,home improvements, construction of new homes and purchases and refinancing. Low interest rates have helping the housing market. Our customer base is also traveling longer distances to their jobs, off-shore oil drilling, truck driving, health care jobe, etc.
We have a significant portfolio and want to diversify by putting growth into C&I and CRE.
In the first 4 months of the year there has been very little activity.
We have dedicated a bucket of loan dollars to in-houe 1-4 family residential portfolio lending.
New regulations will prohibit some loans in our organization.
Demand is low, no refis and we sell most into the secondary market
Many of our customers are going to the Mortgage brokers because we are having to escrow them now. Since now we have to do all of the same qualifying and escrowing as a Broker our customers are slowly moving their business for the long term fixed rate products (ie: Secondary Mkt)
Due to increased Qualification limitations
Most 1-4 family loans are sold on the secondary market.
Canadian borrowers who do not qualify for the secondary market. Also, some good borrowers do not qualify for secondary market loans.
because we will not be able to sell as many loans to secondary market as in past and will still want to meet customer need and so will hold more of those deals in house
the combination of an increase in demand in the housing market offset by the increase scrutiny in qualification standards under ATR.
The loan volume available in our area has not increased significantly enough to offset general paydowns. Increased competition from both local and internet lenders has also increased.
the mortgage rules are so difficult along with the compliance exams it scares you from doing them.
Demand for mortgage loans has decreased substantially in the last 3-6 months. The refinance boom is over.
compliance issues with residential lending
We have many self employed borrowers that will not qualify. We also have many other long time customers that will not qualify from a DTI standpoint.
We believe the 1-4 loans we've made in the past would have met QM and ATR standards, and we expect we'll be able to continue in the future
Demand has been steady in our area. Our portfolio has grown steadily over the past 5 years and we do not anticipate a slow down at this time.
There has been an upward trend in rural real estate that we would forecast to continue.
Refinance activity has slowed significantly.
because we cannot grow it but are determined to keep what we have.
our portfolio has remained relatively flat the last couple of years
Accelerating principal reduction / Reduced demand.
Rebound in housing market, investors and homeowners still want 1-4 family homes, we can use the small creditor temporary balloon payment QM that larger banks can't.
All my loan officers and loan processors are scared to death when a Res. R.E. request comes in.
We have taken a more aggresive approach to secondary residential lending company wide.
We have already seen an increase in our residential loan portfolio for 2014 and currently have a strong pipeline. We are seeing a small 'blip' upward in purchase money mortgages and slower paydowns and pay-offs
We are a small town and do not originate a large number of loans in a year.
not a lot of real estate sales going on here !
We have an aggressive budget set for 2014 that includes a significant mortgage growth. With the improvement in the economy, more people will be able to obtain mortgages.
We will continue to make the same types of loans as before but have changed our processed to allow for both QM and non-QM loans.
We will be continuing to do unique financing on unique properties not accepted by the secondary market and we expect fewer institutions will do that.
Not our primary business, most residential loans are made as an accommodation.
Harder to make sure it is a Qualified Mortgage loan and if the secondary market qualifications do not work, then we need to keep in house. However, if the risk of default is average or below, most likely we will not take the added risk of a non qualified mortgage even though in the past we would have made the loan.
Too many technical compliance issues to consistently get right. We have also spun up a Mortgage Company to handle most 1-4 residential mortgage requests.
higher mortgage rates and the new regulation will adversely impact new originations.
Most of the refinancing due to low rates has been completed
It sucks! What can I say.....it feels like another area of banking of which we are being regulated out of....
current trends/ compliance burden/ interest rate risk
Because of the low rates, we are doing a majority of conventional long term mortgages and selling them on the secondary market. This is the best product for most of our customers.
It is hard to imagine the housing market rebounding under the burden of Dodd Frank and the general state of the economy. We will be lucky to replace principal run-off with new purchases that are QM.
Our goal in 2014 is to add more of these loans to our portfolio. We are structuring new products to meet the customer's needs while protecting the bank's interest margin.
Buyers will not qualify under the new QM rules.
There haven't been many request for 1-4 family loans.
we began actively marketing in portfolio mortgage loans at the start of the 2nd quarter in 2013 and we will have a full year in 2014 to book new mortgage loans
Added new loan officers, improving economy.
With an acquisition in 2013 we have a focused effort to increase our mortgage business.
1-4 family lending has slowed with the rise in interest rates.
Real estate values have not increased as rapidly in proportion to interest rates remaining relatively low.
Beginning in 2013, our bank discontinued making all owner occupied home mortgages because we could no longer justify the compliance risk.
Most loans we do qualify for the secondary market. Loans kept in the portfolio don't outpace payback speeds.
The economy is improving. Property sales are increasing. We will be able to benefit from those trends.
Interest Rates, Many RE Loans have already been re-financed, Not in a market that has a lot of new construction, Not in a huge market where an influx of consumers are moving into or around this area (rural area), The difficulty of making RE loans in complying with the new regulations, etc.
Most loans originated will be sold. Runoff will offset additions to the portfolio.
Because fewer lenders are competing for 1-4 family loans. Customers prefer a reduced cost shorter term loan.
Too much regulation pertaining to ability to repay and QM.
Most borrowers looking for fixed rate long term financing.
Demand remains relatively strong, plus we have expanded our branch footprint.
Strong economic growth and population moving to North Dakota
Because it will be harder to do home loans for self employed individuals. Small bank exception will help some, but to be safe will follow ATR guidelines.
Opportunities for some good 1-4 family loans are out there that do not fit "in a box".
It has always been a part of our business model and our area continues to be strong in residential construction.
I think the new "Ability to Repay" and "Qualified Mortgage" standards will reduce the number of customers we have who will qualify for residential real estate loans. We will make some but with pay-downs, I would estimate our overall balance will be fairly stable.
because of reduced competition and because of us being a portfolio lender.
Because of all the regulations, we are making a lot less home loans.
We have made a decision - FOR NOW, to keep in portfolio all 1-4 family mortgage loans. This is in part due to complexities and frustration with Fannie/Freddie.
We are seeing a migration of in-house ARMs into secondary market fixed rate loans.
We are experiencing a continued lack of economic recovery in our market area.
Competition should remain the same and soft loan demand
Mortgage rules will not allow people to qualify.
We are looking at opportunities to expand.
We started residential lending mid-2013, so not a complete year of funding loans and took time to generate production.
We have developed a secondary market program.
Competition and the drive for customers to acquire 30 year fixed rate mortgages that we do not portfolio.
Not originating or purchasing any more 1-4 mortgage loans
We have already experienced an increase.
Mortgae business has slowed and refinancing is almost non-existant. QM will make it more challenging to do "exception loans" and that is what commnity banking is known for.
Focused more on Compliance related issues.
Most of the 1-4 family loans are sold to FHLB through the MPF program and not held in the bank. The reason for this is the lack of return and IRR on holding long term mortgages.
we retain only a minimal amount of 1-4 residential originations in portfoilo and with early payoffs/paydowns it should be about flat
Refinance volume is down considerably and purchasing activity remains flat.
Loan demand is still tepid and it will be more difficult to find quality borrowers.
THe current market is relative flat in our area.
Marketing and holding the loans in our portfolio.
The determination to keep more in-house rather than sell to the secondary market.
Many have already locked in at lower rates unlikely to be seen again any time soon. This could be offset by those who have been sitting on the sidelines waiting for rock bottom now making their move.
Pay down on current mortgage loans. New mortgage rules effect on approval of new mortgages.
We have been incinted to not make mortgage loans because of all the new regulations that must be followed to the letter.
We are located right across the state line from [redacted] a college community & we also have several other strong communities surrounding us.
Our market, national economy, lack of increase in income. Lack of jobs for recent college graduates.
Our mortgage business has increased since launching online mortgage apps in June 2013.
Selling more fixed rate loans into the Secondary Market.
The bank typically sells the majority of it's 1-4 family mortgage loans to the secondary market. Our 1-4 family portfolio mostly consist of ARMS. Market conditions have made it difficult to obtain new ARMS because of the low fixed rate environment.
Regulatory risk avoidance and weak market demand.
Higher residential rates will most likely decrease demand for residential loans.
Too many hurdles and regulations. Customers are not qualifying to new standards.
The QM/ATR rules will make it difficult to hold Residential Mortgages in the portfolio. We will concentrate on selling in the secondary market.
Not enough activity locally to see significant growth
We will purchase loans to supplement local originations
We are a CDFI and are exempt from ATR therefore, our loan making will not change drastically.
The loan volume CNB oriignates is in narrow range of borrowers who generally qualify under DTI guidelines and LTV but have either had credit report glitch or appraisal problem. The Bank only offers ARM product which limits demand for product. Volume of refinances or purchases in covered markets are generally stable. therefore, Bank projects stable demand.
We operate in a rural area where things change little.
Refinancing activities have reduced substantailly... thus any change to loan volume will be because of new sales ... that market is anticipated to be active and stable but does not offer signficant opportunity to increase/decrease loan volume
Due to being a smaller bank, the bank does not receive many applications for these type loans.
residential loan demand in our area is flat-lined. refinancing is dead on arrival.
Some local banks are not going to make 1-4 family loans due to increased regulations. We will do them but move slowly as to make sure they are done correctly.
In comparison to this time last year, we're relatively the same.
Qualifying for a mortgage is more difficult with today's regulations, and a large part of our customer base is dependent on manufacturing which has experienced some set-backs recently.
Economy is good but regulations have affected out ability to make profitable home mortgage loans
Increasing regulatory requirements are creating an unfavorable environment for small banks to maintain the necessary infrastructure to underwrite, process and service 1-4 family loans.
It is harder to get customers qualified under new rules . If any exception is made managment is fearfull of fair lending problems
The new regulations will keep us ot of the market.
Until we "experience" and understand exactly how all of the new QM regulations will be viewed by regulatory/compliance reviewers; we will be very cautious to expand in this area.
Because of the increased regulations making 1-4 family loan difficult.
Most of what we have in this loan category is in participation loans. We mainly have on our books commercial 1-4 family loans (Borrowers with rental property) Individual 1-4 family lending is usually due to selling a portion of OREO.
We have yet to do a mortgage loan this year. The refinance boom has passed and I don't foresee that as small of a bank as we are, exceeding what we did in 2013.
Our market historically has been in the $30K to $100K loan size. Most long term mortgage lenders do not appear to be interested in this segment of the market. Plus, we are in a rural city with very few choices for mortgages in that range. We do not wish to "forsake" that smaller market and will continue to make these types of loans on a QM basis. We are hopeful that congress will follow through and pass recent ICBA initiatives that will make all in portfolio loans booked a QM. Nevertheless, we will figure out the compliance and continue to make these types of loans.
In the first quarter of 2014 we have seen a decline in demand for 1-4 family residential loans.
Demand is moderate, less options for consumers for non QM loans.
WE have recently grown our mortgage division adding to staff and expertise
It is harder for people to borrow money to buy a home. The process scares people away and driven them to a point that they don't even want to try to borrow for a home.
The mortgage lending focus is to service our community by providing outlets for all qualified borrowers in the secondary market and we will look at loans on a case by case basis to meet the communities needs.
The mortgage loans that we make are normally for people that have a financial event in their future that will pay off the loan. Our mortgage loans have adjustable rate features therefore are not a desirable long term product.
Past history and harder to qualify borrowers under regulatory guidelines.
The bounce back in house values occurred in 2012-13 so average size loans should stay pretty steady in 2014.
We have Hired a New Mortgage Loan Officer to focus on that area.
We are focusing our attention to the secondary market whereby the borrower can obtain long-term rates which we cannot provide at the bank level.
portfolio is budgeted to increase $7 million in 2014
we are seeing similar volume to last year.
Shrinking interest margins require that more loans be booked in order to retain the same stream of income for the bank.
Loans made in the past where we new our borrower (i.e small business owners and farmers) may not qualify with d/I ratio of 43% and opposed to an acceptable DSC ratio for their primary residence considering their depreciation and interest coverage ratios
we will only do qualified mortgage loans and provide mortgage lending services to our customers
The 1 to 4 family mortgages we make are either rental or construction with take out
Have a few portfolio loans refinancing to fixed rates.
Economic stability and oil and gas industry.
local purchase related mortgage origination expected to just offset normal amortization and payoffs.
The new mortgage lending rules/regs will prevent the bank from making some loans it may have been able to do in prior years.
Competition in the market place. Banks do not want to take on the interest rate risk of a fixed rate loan and customers do not want adjustable rate loans. And again, new regulations attempt to make “one size fits all”. Community banks survive by taking the time to offer custom solutions to individual needs and circumstances. Bigger banks have all the advantages in a one size fits all world.
have increased the staff in the loan production area by adding originators
We know we will renew the balloon notes and not sure about new loans due to requirements invloved.
With loan pay-downs and the volume of loans being originated has slowed since 2013.
harder to qualify borrowers and harder still to book. compliance costs are increasing without any reall advantage to make the loan if we could
We will continue to make 1-4 family loans.
There are many of our customers that will have difficulty fitting into the Qualified Mortgage box that most of the larger banks and mortgage companies are using. Many of our 1-4 family loans are on manufactured homes where we are the only lending option for people to get a loan. The Qualified Mortgage rules coupled with the very strict appraisal guidelines have made many people unable to get permanent financing through a mortgage company and they have begun to look at other options.
Approximately 25% of our originations in the past would be non-QM loans. Going forward, that will be 2-3%.
We are not budgeting for large portfolio 1-4 family loan growth.
Increased regulation and economic uncertainty have reduced mortgage volume dramatically.
We have budgeted for a slight increase in residential loans
This survey has a problem. I am answering questions that I think you will interpret as we are making primary residential mortgages, when we will actually be doing zero. We are out of that market due to the compliance burden. We are only doing rent houses.
QM requirement indicates originations will be eligible for secondary mortgage sale
Coninuation of strong credit standards while servicing customer base
Refinance volume is down plus new QM /ATR rules are a challenge
We will add to the portfolio and continue to sell loans.
More restrictions to meet Ability to Repay and Qualified Mortgage
Anticipate the amount to be virtually the same
We will actively seek to grow that segment of our loan portfolio.
Due to QM, the bank will stop making balloon loans and go to an adjustable rate mortgage product which we believe many consumers will fear due to the lack of understanding of ARMs
The potential risks in compliance and legal issues make it unprofitable. We can not afford the small dollar re loans we used to make.
Rising Interest rates in the mortgage. Anyone who wanted to refinance has already done so.
The new rules have slowed our lending in this segment.
Due to more restrictive underwriting criteria with respect to secondary market 1-4 applications.
Our goal is to grow loans and will continue to fund these types of loans
We have been making 1-4 family mortgages as small creditor QM with 5 year balloon, folks still don't trust balloon loans.
many 1-4 family loans are being paid off
There is not a large demand for home loans in our area at this time.
The rebound in the one to four market has not been significant in our area
We can not anticipate any increase or decrease in deman.
Bank strategy to continue healthy loan growth
We anticipate that we will be able to replace any loans lost and as there is not anticipated to be a loss of people and jobs to our local community until 2015- we should remain the same in 2014.
1-4 family mortgages have been the focus of our bank because of the steady growth and the lower risk.
We budgeted an increase for 2014 and we are currently on track to meet budget.
Are bank is in a small community where there is not much real estate turnover and the biggest percent of the market that is out there will seek longer terms and better rate than we are able to offer.
We do not receive many requests for mortgage loans.
Most of the primary residential loans will be brokered to the secondary market.
Customers are paying down debt; not as many new loans to replace
We continue to add to our 1-4 family portfolio.
It will should only increase if home sales and new home construction increase.
Qualifying standards are more strict than they have been historically.
The real estate market is improving but is still fairly slow. Also, there is still some thought the new requirements will impact lending.
With the amount of new regulation to address, we are only making mortgage loans to accomodate existing customers.
It is part of our budget to increase mortgage lending. We have increased our mortgage staff to accommodate growth.
small community and constricting regulations
It will be more difficult to qualify borrowers because of the increase in regulations and the time needed to process and gather required information
Limited demand, combined with more stringent mortgage requirements in the rural areas that we serve limits our market.
Loan activity has been stronger this spring than last spring.
Housing demand and new home construction is increasing and our bank is doing considerably more new home construction loans.
That is the trend due to a miserable economy.
Historical demand continues at about the same pace.
We have hired two additional mortgage lenders.
There continues to be a slight increase in the demand this type of loans.
Because the loans we lost was to refis in secondary market
Under the new guidelines, the volume of these loans will slow in growth and be offset by pay downs we project.
We have seen a significant decline in mortgage originations since the latter part of last year. That trend has continued into 2014.
We are a private client type bank so our customers have complex tax returns, which does not fit a "typical" mortgage lenders profile. They are mostly jumbo's and we hold them as portfolio loans. they are all short term (< 5 years) in nature.
We will not make many of the non-qualified loans because of regulatory and litigation risk
High competition in the area. Increased regulations.
New regulations have made residential lending more difficult and the refinancing activity of the last few years has ended.
We are growing our loan portfolio rapidly as we grow the bank in every loan category, not just 1-4 residential.
Additional regulation and refinance slowing down
We will continue to make 1-4 family real estate and many banks have chose not to.
Most customers expressing interest in 1-4 family housing
As the secondary market drys up, there will be more opportunity with portfolio loan growth.
Many potential borrowers can not qualify under the new requirements.
We are not seeing the volume of new loans or refinancings so regular amortized payments will reduce our portfolio.
Small market, do not anticipate significant changes in types of mortgages
The area we are located in and being a rural community bank, we will still continue to service customers.
Most of the loans we originate, are qualified mortgages. The new regulation changes shouldn't affect the amount of loans we originate.
Concern and uncertainty over QM/ATR will result in fewer loans being approved.
We intend to offer the same products that we have offered in the past.
Several banks are getting out of the mortgage line, so it will hopefully benefit us.
We do not expect to add many loans to the portfolio, due to the new compliance rules.
It will be harder to get some customers to qualify
We don't work to attract 1-4 family loans, so will not be actively working to grow our current small portfolio.
more competition and compliance issues/concerns make it harder to remain in the mortgage lending business
Our level of customer activity in this area remain steady and consistent.
Still have strong demand in a growing community and improving economy.
We have a mortgage operation in a high growth metropolitan market that contributes to our portfolio holdings.
governmental regulations are too prohibitive
Are doing more construction loans in 2014 due to increase in construction in market area, which may turn into residential mortgage loans.
Tighter standards, fewer people will qualify. We will make some non QM but not a lot. Documentations the consumer has to do has increased. We have had a number of loans refi into long term fixed rates while rates are low and leaving our portfolio.
Current regulations are not allowing us to do good, solid loans that we used to make.
We are currently underwriting to secondary market guidelines and selling everyting in the secondary market and servicing a portion of our own production.
We are strongly encouraging our staff to promote and refer real estate loan opportunities.
The number of this type of loans we make will decline due to new regulations.
Concern with inability to comply with regulation has put us out of the business, leaving a less desirable market almost totally unserved. We aren't originating any new SFR loans and do not plan to do so.
New QM and ATR regulations make it more difficult to provide the financing for customers.
They are the loans most available to our market.
Fewer originations as compared to last year.
Year-to-date 2014 volume us virtually unchanged from last year, and we do not anticipate any significant rate changes.
Less refinance business will create less runoff and increase in portfolio product options.
Economic conditions and interest rate envirenment.
We have initiated a jumbo mortgage loan program in 2014.
We do not anticipate adjusting our approach significantly, nor do we expect the market to change dramatically.
Not enough resources to understand the changing regulatory rules on mortgage lending in a timely fashion in 2014. Have just avoided doing any YTD.
Most of our loans originated will be sold in the secondary market.
(1) Overall slowdown in 1-4 family market, (2) emerging competion, and (3) QM rules will eliminate many of the keeper real estate loans we once did.
The housing market in are area has rebounded somewhat and home sales have increased. The local market forecast looks promising as well.
It is a very narrow market with the majority of our loans being less than $35,000.
1-4 Family housing fluctuates less than 10% year to year.
replacing with new loans only as fast as paydowns. Not enough growth due to lack of confidence
We will portfolio more loans when rates hit 5.5 or more.
Market conditions have not improved in our area and job instability.
Fewer payoffs because rates have stabilized and/or are increasing and that will limit refi activity.
The qualified mortgage and ability to repay rules make it harder for consumers to qualify for a mortgage loan.
It is a strategic decision to maintain the 1-4 family mortgage portfolio about the same size while growing all commercial loan products.
The improving economy will stimulate purchase mortgage loans, but the refinancing mortgage loans has dried up and will not pick up any time soon.
we have a mortgage banking operation that we just acquired. We sell 100% of our production
Because of the fear of scrutiny from examiners, the time it takes to research and understand the rules required to meet the requirements, we foresee that we will be limited in the amount of loans that we can do. Our niche in is customizing a product for our local customers and we are less able to do that with new rules and requirements.
Through the first 5 months of 2014 the portfolio has only increased by.5%.
!-4 Family loans are big art of our portfolio and will continue to be.
Number of borrowers in our area has not increased.
interest rates are up as well as competition and regulation.
2013 had the benefit of refinances. 2014 will be driven by purchases versus refinances, and the market is showing less activity in those areas.
This is no longer a refinance market - it is difficult to compete in a purchase market with realtor based lenders
We have purchased several institutions and have a larger base to draw from that will find our in-house residential loan products more attractive. We anticipate our legacy balances will decline.
Community and competitie market are stable. Lending demand and activities are not expected to flutate.
We are seeing a slow down in home sales and refinancings
Have never pushed this product, and we will push/seek opportunities even less due to perceived pitfalls and unknowns from QM rules.
New regulatory guidelines will make it more costly and more difficult for borrowers to qualify
We expect a consistent paydown/payoff of some loans while we expect to book new loans.
Refinancings are basically over and new housing is controlled by a few large builders who have thier own mtge. companies.
Most of the mortgages we generate are originated for sale in the secondary market. We keep very few new mortgage originations in our portfolio.
General current lending activity and decreased loan demand.
Lack of demand. Re-financing has already been completed by most prospects.
Slow growth in local residential market. However, we will not intentionally be reducing our 1-4 family residential loans.
We do not expect the refinancing market to be as strong.
The added restrictions of new regulations coupled with the fact that the recovery from the last recession is still not complete with the fact that there are very few jobs that can support the payment requirements.
With rising rates, our rates are more competitive.
Residential demand is significantly down compared to a year ago and it appears our mix of loans are now more "portfolio" mortgages instead of "secondary market" loans. Our balances on the books may increase due to it being more difficult to qualify loans for secondary market sale, primarily due to appraisal related issues.
Prepayments and maturities will be offset by new originations as refinance and purchase markets have subsided
regulatory environment is too cumbersome and restrictive
few changes to product offered, lengthening balloon period to 62 months from 36, otherwise terms unchanged
The Bank has lowered rates and made a concerted effort to develop a larger market presence in mortgage lending.
We stopped lending for mortgages from 2010 to 2014
That's our current experience. There is no refi activity and what purchase activity we see is about equal to the payoffs and amortization of the existing portfolio.
Less refinance activity, more competition, more regulation.
in a normal year, paydowns equal new loans originated
More of the loans that are needed in our communities will be non-QM, and therefore, for the ones we can make, without creating excessive liability for ourselves, they will need to be held in-house because the secondary market is not open to purchasing non-QM's.
We are in a small rural area and we do not attempt to compete with banks selling residential loans on the secondary market.
We are entering a new market and the 1-4 family home market is expanding in our current markets as well.
Thus far there is demand. However, if rates rise or regulatory restrictions become even more burdensome we will be forced to decide whether to stay in or get out.
based on the bank's strategic plan and our competitive advantages in the marketplace
Customers are having a hard time with down payment.
We make smaller mortgage, mini-perm loans and there is a need for that product.
We only make portfolio loans. With Fair Lending concerns, coupled with the new QM and Ability-to-Repay rules we are turning down business.
Because we've targeted a certain level of loans as a % of capital ... and we're not at that level, yet.
Although the mtg business has slowed down, we are still booking new loans.
Community banks now have a much more limited amount of mortgage products to offer.
In addition to owner occupied 1-4 family we do 1-4 unit investment properties which is a strong market for us.
We have seen a drop in loan volume during the first quarter of 2014. In addition, the Bank may look to sell some loans in an effort to management interest rate risk.
The majority of our 1-4 family are placed in secondary market and we expect this to continue.
We do very little 1-4 family lending and only offer it as a convenience to our customers but it is by no means a primary business line.
Residential lending is an important part of our business, and we will attempt to continue despite the added cost of compliance with new regulations.
No anticipated change in demand or paybacks.
The bank portfolios all of its mortgage loans. Therefore, we will not offer the lowest mortgage rates. We also require 80% LTV and 20% down on purchases. So, the combination of loan underwriting and pricing will keep our production flat. It is also to important to point out that mortgage rates are higher than last year. This issue will also create lower demand.
While originations are currently on the rise, it will take a couple of months before overall portfolio balances will begin to show an increase.
Rural area with limited demand and bank imposed quality standards
Qualified Mortgage requirements make it difficult for a large number of applicants to qualify due to a variety of reasons. Mostly rural, young, self employeed. QM is having a detrimental effect on Bank's ability to make home loans to a certain segment of applicants.
We are selling many of the loans we write but we do book some loans that should cover the run off of loans that paydown or refinance during the year.
Our bank has lowered rates in an effort to attract new loans, but we live in a rural area where demand is low.
Little sales avtivity and not enough inventory
New regulations make it much more difficult.
Fewer refinances, same level of purchases.
Strategic initiative to increase loan-to-asset ratio.
Portfolio has significantly decreased in last 2-3 years. While originations are on the rise, it will take a while to reach 2013 levels.
TAKES LONGER TO ORIGINATE. HOME LOAN APPLICATIONS ARE DOWN SIGNIFICANTLY.
In order to make any loans at all, we have to continue making these type of loans plus we try to properly serve our local customers. Obviously the new rules make it very hard to serve our communities.
Because of the additional restrictions due to added compliance
We've already seen a drastic reduction in applications.
Our exposure to 1-4 family residential loans is at or near the bank's comfort level. We will continue to pursue other loan opportunities including C&I loans and CRE loans as well.
Rules are getting more difficult. This difficulty will be reflected in reduced ability and desire to comply with more complexity.
new mortgage rules are threatening. We make loans to people based on their needs not arbitrary rules
It is not worth the risk of regulatory criticism to make many of these loans.
The risk of non-compliance is greater than the credit risk in the transaction. It may be better not to make the loan in order to mitigate the risk of non-compliance and pentaly. Also the amount of time required in compliance is better directed to a more productive source with less risk for the bank.
take advantage of the small lender exception in QM
Lack of sales for new REM. Refinancing not as advantageous. New rules put into place making it more difficult to qualify.
We are still seeing slow growth and some loans will not meet new qualifications.
Our real estate loan portfolio doesn't fluctuate that much.
Fewer Borrowers will qualify under the Ability to Repay.
We do not anticipate any changes in the real estate market in our area.
Due to the fact that our underwriting standards have become more stringent as a result of the QM rules.
Fewer mortgage loans due to regulatory tightening, increasing rates and movement into a purchasing environment.
Not a lot of activity in 1-4 family residential lending, we believe we will maintain our present position.
That is our business plan and we do not foresee a substantial increase in demand
With the risk associated with doing non QM loans, we feel that we would not be able to make a return large enough to offset that risk. The compliance cost (civil money penalties) for technical errors is too great. The new regulations are contradictary at in many areas and are hard to fully understand in all situations. we have been forced to change our risk profile as a bank due to the new regs in order to find a way to renew existing balloon mortgages we have had on our books for years. We now have ARM loans (in 112 yrs we have never had any adjustable rate products). We always worked within a conservative 5 yr max maturity.
[Redacted] HAS CHANGED OWNERSHIP AND WE NOW HAVE AN EXCELLENT BOARD OF DIRECTORS AND THEY WANT TO SEE [redacted] GROW AND WE HAVE A NEW PRESIDENT WHO IS WILLING TO WORK HARD TO ACCOMPLISH THEIR GOAL.
In our trade area housing market has stayed steady and consistent
Origination volume is way down in 2014 vs first half of 2013.
Loan demand increasing. We began implementing ATR and QM standards last year.
We don't expect a huge drop off of 1-4 family dwelling loans. WE have set up processes that will be able to handle the new ATR rules and underwrite for QM loans.
Regulatory restrictions to making loans that do not fall under vanilla underwriting rules
Higher interest rates, regulatory requirements, and a lack of new construction make growth unlikely. Should Farm Credit get here sooner, a concern of decreasing balances becomes higher.
Real estate lending is a strategic focus of our bank. We will promote ourselves as an alternative to the secondary market for loans that may not qualify.
It will increase in size as we add new customers to the bank more rapidly than the existing portfolio will amortize and pay off.
Don't do a large volume of 1-4 family real estate loans.
The 2 year temporary balloon payment QM exemption will allow us to continue business as normal until Jan 10th 2016.
As a result of the new mortgage qualification requirements.
Too many regulatory changes hampers our ability to make loans. Flat to rising interest rates chokes off the refi market.
Optimistically thinking, we look for loan demand to improve this year.
Do to higher interest rates, fewer loans are being orginated. Of the loans originated, fewer are being held in our portfolio.
Due to the regulatory environment. We have considered eliminating that product from our product mix.
Increased competition on rate from secondary mortgage market.
We will have more fallout from conforming loan products.
The bank has initiated new niche portfolio products that should lead to increased marketshare.
We've moved out of secondary market for the time being. Freddie has become incredibly picky in their reviews of our closed and serviced loans. I anticipate some loans to go elsewhere as a result.
We do not see the demand for loans this year has we had in prior years is the main reason. So due to amortization we will see lower levels along with the possibility of not doint ATR loans.
We continue to see healthy loan volume in the 1-4 family segment.
The new rules have created uncertainty. Until we can offer and market a product to the general customer base that does not carry such a high regulatory risk, that is the rules are clear and we have a standardized product that complies and is competitive, we will only make them on an exception basis.
We sell most of our 1-4 family fixed rate loans to the secondary market.
Demand for the in-house residential loan product is stable.
We do not offer OO [Owner-Occupied] home loans, however we do offer NOO [Non-Owner-Occupied] home loans and expect them to continue as years before.
because of the regulatory burden associated with these loans
The mortgage pipeline, home sales and construction remain about the same as in 2013.
We are actively retaining short and intermediate term fixed and adjustable rate residential loans.
We see an opportunity to originate quality non-QM loans.
QM and competition for rate. we do not keep 30 year fixed for portfolio.
The refinance boom is likely over and some consumers will not be able to qualify under ATR rules. Community banks typically filled the niche when consumers could not meet traditional underwriting guidelines. Now, to do those loans may result in regulatory scrutiny, at best and a violation of law at worst.
Qualified mortgage and ability to repay regulations will make it difficult to lend even when there are alternative sources of repayment.
economy, pricing, secondary market options, non bank competitors
Continued low rates of interest. Housing in our area is in demand.
We have not experienced major price fluctuations in the marketplace.
Normal for our institution to have acceptable 1-4 applicants that we portfolio that do not qualify under "qualified mortgage" standard.
The refinance market is no longer. We do not anticipate major growth in this area.
We are located in a rural area and the amount of activity that comes through is about the same.
We have annual growth, and we do expect to have more "in-house" non-qualified residential mortgages.
We are projecting continued growth in both 1-4 family owner occupied and non-owner occupied investment property mortgage loans. Slower prepayment activity will also play a part in overall portfolio growth.
We will be doing more construction lending that sometimes fails to meet secondary market standards for sale.
originations are down but still active and payoof's have slowed
Due to regulatory changes creating additional compliance requirements which will require substantial increase in expense.
With excess liquidity we are interested in holding more residential mortgage loans in portfolio, while we have in recent years focused on LHFS.
We are doing almost exclusively qualified mortgages due to litigation risk and will see paydowns on our portfolio other than held for sale
I have no reason to expect material changes.
As a community bank, we are willing to take a risk to help consumers finance a home where they would not qualify at larger institutions.
The main industry in this area is agriculture and that is the demand of our customer base.
At best demand will remain about the same
New mortgage compliance regulations will negatively impact the volume of home loans we originate.
The Bank showed a 9.5% growth in total mortgage loans in the past twelve months, and loan demand is still strong
Stricter regulations will deter refinancing and slow new loan demand. We probably won't see payoff due to refinancing but will certainly see demand and approval slow considerably.
We intend to make more QM mortgages now that the rules are more clear for small bank lenders.
Tougher to qualify many appicants due to the income qualification (QM) documentation requirements. Many of our rural customers are self-employed with varying incomes, i.e. agricultural and service businesses. Harder to obtain appraisal comparisons on rural properties and in smaller communities we serve.
The pay down rate of our portfolio compared to our non growth rate area relative to the new purchases due to home sales. Our purchase have to fill our roll off.
We do not expect a significant number of originations this year, nor a significant amount of paydowns.
Construction loan run-off to be replaced by new construction activity, new production will increase due to more originators, higher market rates will reduce refi run-off
We primarily sell our mortgage's to FNMA and keep the servicing. I see demand remaining steady.
the regulations that apply to us make it harder for people in our area to be approved
Refinances into more traditional fixed rate products tend to be similar to origination volumes of the 3 to 5 year adjustable rate mortgages held in the portfolio.
We are seeing a substantial increase in applications for 1-4 family loans.
We continue to grow and expand into other areas near our branches.
We continue to be active in first time home buyer and jumbo loans. These are the types of loan we hold in portfolio
The regulatory environment has changed and so has the housing market in the Phoenix area.
Government regulation has made it difficult to grow in this market and it is our core product.
real estate market is improving in our area and customers are starting to move.
What little volume we do get is primarily sold in the secondary market.
rates and oppressive regulatory structure.
The complexity of requirements and regulations will make it difficult small 1st and 2nd consumer mortgages. We historically made a lot of small loans. Also we are Rural but 15 miles from Metro which will potentially limit balloon loans in the near future.
Our area is not likely to see a change in the next year as employment has stabilized. I think that there is also a tendency to wait and see how the new QM rules are implemented and how the interest rates trend.
We are on the same pace as 2013 thru the first 5 months of the year.
Fewer home sales and refi's. Fewer qualified applicants
We are not adding long term fixed rate loans to our portfolio
Weak demand, and we will not be able (and/or it will be too costly/complex) to make some of the good loans we've made in the past.
Our institution anticipates discontinuing extending consumer purpose 1 to 4 family residential loans.
less homebuyers, and stricter compliance requirements
Not a lot of activity in housing market. Guidelines for secondary market loans are tighter which may increase the volume of portfolio loans somewhat.
very few real estate transactions in our area
There are some smaller area banks that will get out of this type of lending.
New regulatory contrainst(QM & Ability to pay). Compliance too burdensome.
We have been working on increasing our loan portfolio.
We continue to gain a greater market share of residential mortgages as competitors, primarily small community banks, leave the space.
Faster amortizations due to refinancing, less new business, more competition for less business.
ATR/QM is affecting the risk we are willing to take. We still intend to try and work with our customers, but generally will try and fit the ATR/QM criteria.
less applicants qualify so less loans will be made.
we have not substantially changed our practices in regards to loan made, just increased compliance
re-fis over and new purchases slower than we expected
Home sales appear to be slightly stagnant in the communities that our institution currently serves.
demand is marginal - we are keeping rates at a rate that will generate volume to replace normal run-off
We have a great product, low fees, fast closing, and they get to deal with a small bank when they have a question. People see the value in that and are willing to take a chance with a shorter rate lock.
We have somewhat of an exemption until 2016
Less volume due to higher rates and more requirements.
very poor recent market may have bottomed out, is showing signs of some recovery
We're not in a growth area, refinances are minimal, and new loan activity will probably help makeup for paydowns.
Because the market is changing postively
Residential Mortgage loan volume is down in 2014. In addition, we hope to begin selling 30yr. Fixed Rate Product to the secondary market. Our goal is to grow our commercial loan portfolio to a 60/40 split (Resid. /Comm).
In 2013 we developed a jumbo mortgage product requiring high FICO scores. Startegically we want to continue to build this portfolio in 2014 and than level out in 2015 at our strategic hold level
I think the real estate market has rebounded somewhat and sales seem to have picked up. However, we had athe opportunity to do several second home mortgages last year that we will probalby not do as many this year.
Low long term rates encourage borrowers to want fixed rates, which we sell.
Will be difficult to grow with underwriting requirements
We are doing more secondary market loans which reduces in house portfolio but we are doing more home construction loans which increases it.
New loans are very slow which stops any portfolio growth but we have not seen much payoff activity in our portfolio either.
Loan demand doesn't change that much, area is not growing fast, and number of lenders remains stable.
Our business this year allows us to be very competitive on rates which will generate production
We have shifted our focus to purchase lending and have increased our sales staff to ensure our earning assets do not shrink over time
Hasn't been much growth in this portfolio in recent years; 70% of our portfolio is commercial.
We do not originate 30 yr fixed rate mortgages as we do not sell them. We have filled the void with shorter term fixed rate products and adjustables, keeping the portfolio level.
So many loans that were made in the past and secured by 1-4 family mortgage will now be secured with other collateral, unsecured, or not made because of the tremendous amount of paperwork and followup now required for REM.
We are now seeing borrowers moving up in home values in our region plus now seeing some new home construction at higher home values.
that seems to be the trend so far this year
processing speed reduced and some won't qualify as QM
We are seeing an increased application volume relative to 2013. We do not do a lot, but we seem to be getting more apps than last year.
Lack of sales of existing homes and new construction activity in our market
We are going to hang on to some 30 year martgages that we would have surely sold in past years.
While loan demand is somewhat stronger than in 2013, we will manage interest rate risk by selling to Freddie when possible.
We are selling mortgages because of increased commercial volume
our efforts have increased, but the market is very slow.
We are emphasizing growing our portfolio after two years of hibernating.
Overall mortgage volume will be down (slow refi business), but we will retain in house mortgages on the books that are non standard and we offer non standard mortgage to new customer who meet our underwriting.
Rates are so low - it is difficult to take much more in house.
Quite a few loans we used to make we are not doing now. Example: Pole Barn Home loans, can't be approved by FANNIE, so we no longer do them due to Dodd Frank.
We are located in a rural area and sales and refinancing have slowed down in the last year.
Projected increase volume in 1-4 family mortgage held.
We have never done a lot of residential lending so we don't see that changing a lot.
Slightly downward trend over the past 10 years as a percentage of our portfolio.
The market is opening up and people are becoming more confident about spending.
The new rules will prohibit the lower balance mortgages and our competition will have increased.
Our bank is located in a small rural community with two competing banks and expect the volume to remain the same.
Our portfolio has already increased significantly thru the first 6 months of this year
The economy is still challenging in our markets.
In 2014, our 1-4 family residential portfolio has grown over the first five months of the year. A significant part of the bank's primary market area is performing well economically, with growth in population, jobs and per capita income. This is helping drive the local housing market.
I don't forsee anything to boost housing growth in our area.
Most loans are sold in the secondary market
Currently only offering 1-4 family loans sold into the secondary market
The marjority of 1-4 family loans that we originate are not held in house - but, sold on the secondary market.
Little growth expected in our market areas.
Portfolio loans are related to housing stock available and that will not increase.
The main reason is the Qualified Mortgage and Ability to Repay rules implemented in January 2014. These rules reduce the applicant's ability to obtain a loan. In addition, the five year balloon rule introduces significant interest rate risk for a community bank.
Competition will limit our ability to grow.
Because less borrowers are qualifying for the secondary market.
Corporate strategies are being developed to increase market share.
The rates have gone up so refinancing has been down.
2013 was terrible after Q2 and did not start again until May 2014
We do not intend to add additional risk to our balance sheet, but we do anticipate that we will add a very limited amount of non-QM loans to our portfolio.
Requirements to meet ability to repay rule hinders some borrowers.
We are seeing good volume in the jumbo segment, which we hold.
We only expect the 1-4 family portfolio to be static to slightly higher. Even with the still low interest rates available most people who could refinance have already. And, the purchase market is only lukewarm.
We are not booking mortgages with greater than 15 year terms, so coupled with amortization the portfolio will continue to shrink.
Monthly results support forecast increases.
The loan portfolio isn't increasing this year but it isn't decreasing either. Monthly new loan totals and monthly paid note totals are close to the same. Also, the bank isn't aggressively trying to grow the portfolio.
Newer branches in newer markets have increased the size of our loan portfolio, so natural growth from this new market.
Weak housing demand and lack of new credit-qualified borrowers. Plus ALCO considerations in not wanting to extend the duration of the loan portfolio.
Type of customer we have been serving can not be served any longer due to regulatory changes.
Our in house mortgage numbers don't tend to vary much, since we try to sell most of the mortgages we source.
New issues have been approaching payoffs and paydowns
holding more 5 and 7 year mortgages for 1-4 family homes
Supply and Demand trends plus regulatory requirements make it MORE DIFFICULT for qualification.
1. Started a mortgage division in 2013, and 2. Some competitors exiting business. Opportunity to make good loans.
We do residential construction loans and that area is seeing significant activity, so that portion of the mortgage loan portfolio is growing. We are willing to hold adjustable morgages in portfolio. We will do "ability to repay" mortgages.
WE had to quit making them due to compliance issues, RESPA and the like.
We have chosen to not make non-QM loan, whereas we made loans that met this definition in the past. Also, the competitive factors mentioned previously; and, consumers in our market are receiving large cash sums for leasing mineral rights, so they have less need to borrow.
Rates have risen so we will not see significant refinance activity. HELOC's will be a more attrative product as folks will want to keep their fixed rate first mortgages. We will still have our share of purchases and construction loans.
The economy has not improved enough and there is a large inventory of homes on the market
We have already seen a steep decline in home sales.
we are putting a focus on keeping residential real estate loans in house.
Losing many 1-4 RE loans to online lenders who are able to offer long maturity low rate loans. Due to our size, we are not able to engage in the kind of interest rate risk hedging or loan processor systems to offer a competitive product
limited opportunity for growth - competition from secondary market and reduced product offerings becasue of regulatory restrictions.
Originations are not exceeding payments received.
We anticipate a reduction in loans originated for secondary market, but expect our regular book of business for in-house loans to remain about the same due to local economy is flat, but some modest improvement in home values.
The housing market is much like it was in 2013 for our area
Difficulties arising from increase regulatory burden
Rates have been low consistently for the last four years. The refi market is less active and the purchase money/new construction market is soft.
I believe it will be more in the purchse area. Since rates are higher than they were a year or two ago, not too many people are refinancing.
We are putting more and more into our portfolio.
We have held fairly steady so far. New originations are down slightly so far but have picked up recently.
We ceased making non-qualified mortgages. We have some optimism for 2015 [redacted].
Local market is very slow and most of our emphasis is on loans for sale in the secondary market.
I believe the somewhat improved economic condition (very slightly) will result in enough loan generation to offset losses from paydowns and payoffs.
Expect to originate $200 million + in production and portfolio about half.
The housing marked in our area has not changed in several years and the area is not growing.
Growth rates for this portion of our portfolio average 2-4% per year.
Effective 1/1/2014, we discontinued our residential lending activities, due to the changing regulations, rules, increased compliance cost and the limitations on our ability to generate a reasonable profit to pay for all of the above.
We continue to have more comfort in this area of lending.
The bank recently purchase 1-4 Family Residential Loan from other bank. The Bank also form a residential loan team and will start to underwrite 1-4 Family Loan by ourseleves
Increased emphasis on this line of business. Some transition from sold loans to portfolio loans. Addition of new producers.
The refinance activity has effectively stopped and sales have picked up but they have picked up slowly
Holding more in house, rather than selling on secondary market
We have adjusted in-house mortgage products to be more competitive with secondary market.
It is expected to increase only marginally; however, we expect to win more business from out existing business clients and from other institutions that are exiting the residentail mortgage lending market
don't anticipate any change in practice despite changes in the housing market
We have moved into a new market which should open up some opportunities for increased 1-4 family lending.
Larger banks and not lending as much in our rural area when it comes to residential lending.
Loan demand and housing prices are still stagnant in our area.
We have projected an increase in our budget
Ability to repay rules make it hard for customers to qualify. Uncertainty makes us hesitant for non qualified mortgages
Higher interest rates have slowed the refinance activity
There is not much new activity in the area.
Current demand is light. Rewrites in the past had to do with rates. Concerns about the economy.
We continue to see strong volume and the payoffs from refinancings have slowed alot.
Underwritings standards were tightened due to QM rules, rates at historic lows incentivizes all who qualify for fixed rate loans to seek them which is reasonable. However, since they pose interest rate risk we are unable retain them and the refinancing and repayments are reducing the in-house 1-4 family portfolio because there is not an adequate supply of good nonconforming loans nor is there a good replacement asset that provides adequate spread. Demand has also been rather spotty and lower than usual.
We have start originating loans for the FHLB of Chicago and anticipating more chances to book loan that will not fit into the fixed rate market.
Already, we have a slight increase in 2014 relative to 2013.
It has increased so far this year, already.
we are primary lender in our market area
We anticipate the market for 1-4 family residences and our share of that market will continue to grow throughout 2014.
The housing market is improving (slowly) in our market and we have a significant commitment of resources for this segment.
Our loan sizes are so small that the secondary market doesn't want them. Also the lack of comparable sales limits the ability of secondary market lenders to get an acceptable appraisal.
Focus has shifted to shorter term loans (i.e. non-residential/commercial and income producing) for IRR purposes.
We try to be consistent in our mortgage business year over year meaning we don't chase refi booms or expect to reduce our business in down years. The market is certainly much more difficult but we offer mortgages in the context of a client's overall financial picture not as a one off product.
We do not write 30 year mortgages and keep them on the books
WE WILL NOT INCREASE OUR TRADE AREA. THERE ARE ONLY SO MANY OPPORTUNITIES IN A RURAL MARKET TO MAKE HOUSE LOANS.
Because we will not be originating any Non-Q loans and that has been the majority of our portfolio. All 30 year loans have been originated by a firm to whom we make referrals (without compensation, of course).
We have a market opportunity to grow the portfolio given the demographics certain segments in our region.
Formed a mortgage department in 2012 and acquired a team of mortgage professionals to grow residential mortgage loan portfolio.
We will lose primary home loans but will continue to do ok in the multifamily units.
Because of new regulations making it more difficult for the bank and consumers
There is just not much area for growth in our community.
The reasons for us to keep loans in portfolio generally are related to collateral not accepted by the secondary market and are not related to credit and the ability to repay.
We remain committed to servicing the home mortgage needs of our community. We do not expect a significant change in our customers' needs.
Housing sales still quite slow locally -- refi boom is well behind us now
Comparing the 2014 pipeline to the same timeframe in 2013, there is little change in the dollar amount of loans. A sluggish recovery in the area also appears to be keeping residential loan growth low.
Continued sluggishness in the real estate economy in my home state combined with fewer borrowers who meet the new lending standards proscribed by the QM rules.
We did not close many 1-4 family mortgages in 2013.
Lower volume but much slower prepayment speeds
Refinances have slowed and purchases have not increased.
Additional balloon mortgage restrictions will force more people into the secondary market.
We believe any run-off will equal what we add to portfolio.
our demand stays about the same in this rural area.
The markets the bank is in have not changed much and do not expect the number of mortgage loans to decrease or increase significatly
Less demand. Balloon payment loan prohibition will eventually prohibit loans that we keep in portfolio. Loans in future will need to be structured in order to sell on secondary market.
No reason to think that our volume will increase or decrease in size.
Not a growing market area. Project flat portfolio growth.
We have a strategy to reduce the proportion of Single Family Mortgages in our portfolio
While we operate in a number of urban markets most of those loans are sold in the secondary market. Our portfolio loans are more rural and the value of those homes have not changed significantly
Slowing growth within our footprint and increased competition from bank and non bank providers of mortgage loans.
We are a small growing bank, and we just added an additional residential mortgage lender.
Anticipate little change in the amount of loans made as fewer people seem to qualify and loan demand is lower given surrounding market conditions.
We have developed a portfolio 5/1 ARM product with a baloon payment at maturity which enables us to manage our interest rate risk yet meet ATR requirements.
our rural area has not recovered from recession
The Ability To Repay requirements will not allow us to lend to a significant portion of our customers.
We will be less likely to make marginal loans that we would have made prior to this issue.
They may increase due to the increase in market value. However, 1-4 family mortgages is not our targeted market. Our 1-4 family mortgages are used for collateral purposes for most of the loans in this category.
2014 budget calls for flat growth in this lending category.
We are limited on what we can do. There is too much compliance risk and the burden of escrows is too much for our bank to take on.
2013 was a big year for re-financing and we gained loans from other banks. We have not seen the trend continue at the same pace in 2014.
We are growing our residential mortgage business, both portfolio lending and brokering loans to other mortgage lenders for a fee.
It is not a primary line of business for us.
Due to low interest rates in secondary market we are only maintaining what we have on our portfolio as our rates are higher internally.
We are refinancing all eligible loans currently in portfolio for sale in the secondary market. While QM provides regulatory protection we believe new regulations have dramatically increased legal liability. The increased regultory risk has tightened mortgage credit availability.
New regulations and less loan opportunities.
QM will slow the increase in the portfolio.
There is a slight upward trend in the sale of 1 - 4 family residences in our area.
We are seeing a bit more residential real estate activity recently.
We are focusing on retaining more of our in-house mortgages rather than send them to the secondar market.
While we are making non-QM loans, the underwriting is much tighter, and the additional documentation required is time consuming and discouraging to consumers and lenders alike.
The refinance boom has ended. Housing starts are flat
Lending in this area is beginning to pick up.
The new rules have effectively put my bank out of the home loan market! Our customer base and home lending focus has always been those applicants who would not qualify for and/or did not need a secondary market loan. Now that we are basically under the same underwriting rules/requirements as secondary market lenders, our customers no longer qualify and/or if they do, they go with the long term fixed rates rather than our variable rate product. In other words, why jump through the same hoops to get a variable rate when a fixed is just as easy. CFPBs byline that it's rules do not dictate the type loans we make is [false]. Although quality borrowers, 75% of our applicants will not, can not, meet the ABR because of the lack of income documentation. We would have made loans to these folks in the past. Now, we will not. To do so now, given CFPB's endorsement/encourgement of suits against bank, would subject us to having all our foreclosure actions challenged in the future. Making a non-qualifying mortgage
We do see an increase in mortgage activity -- since December 2013 -- in our market with the economy slightly improved from the last 5 years. Realtors in the immediate market indicate not enough homes available for buyers.
We are small. We posted 12% loan growth last year and will post between 6-10% growth this year. Some of that growth will be in 1-4 family.
since we are not booking as many because of the new requirements there will be run-off.
We have recently opened a Mortgage office and have a push to increase our mortgage volume.
Because of the local economy, many of our customers will be unable to qualify for a mortgage. Our area is rural and mainly a service industry, the pay is low so many have a higher than 43% dti that would disqualify them for even a small mortgage.
More efforts into adding 1-4 family mortgages this year.
We are projecting net payoffs in purchase money and refinance portfolios and net growth in home equity loans and HELOCs.
We have already experienced a decline in our residential mortgage loan portfolio in 2014 and project this decline will continue.
Loans that we have been able to make in the past will not be able to qualify under the new mortgage rules so we will have to turn down the loans
Because our bank continues to grow our home lending division.
The mortgage market has really tightened since the new regulations have been but in place.

Column without a label
We serve small business, there W-2 income is hard to get qualified on the secondary market.
Loan term limit related to 61-month baloon rule. Majority of our in-house loans are 3 and 5-year baloons.
High Caps with no per adjustment limit results in DTI ratio too high
We do not make loans that borrower can't qualify to repay.
Very strict underwriting standards for self-employed and other non-W2 wage earners (no room for interpretation of how income is calculated. And having to factor in debt ratios after 5 years for ARMs.
Not everything fits in a box. Past credit with our bank and the borrowers' character cannot be overlooked.
All of our loans would have met the Ability to Repay standard
the most widely used mortgage product for loans held in our bank (not sold off) historically would have been a 5 year balloon. under the ATR it was and is our interpretation that the balloon payment would have to be included in the DTI ration. Thus causing a majority of our loans not to meet ATR defination.
non-conforming properties, erratic income, unique situations
All mortgages qualified under Ability to Repay
did not use ability to repay standard verification requirements
Did not verify income or assets due to knowing our customers and their financial status.
Generally, do not make loans where borrower would not have the ability to repay.
We do not make non-qualified mortgage loans.
unable to determine as we do not track data pertaining to this question
strong liquidity but lack of investment income
all would have met the ability to repay requirements
Rental income from property is used to figure repayment.
Because of the adjustable rate feature with no ceilings
there we no mortgages that would not have met the ability to repay
small buiness owners and farmers, DSC acceptable, but d/i not
took on new debt that throws them over the ratio
Difficulty verifying income for self-employed customers
Already had substantial compliance with ATR
Self employed borrowers with fluctuating income
No loans in portfolio failing to meet Ability to Repay
We do not make any that would not qaulify
Some borrowers are selling an existing home and therefore have a temporarily high DTI
All of our loans would qualify under the "Ability to Repay".
Final balloon payment added to DTI would have made the borrower unable to afford this payment.
unable to document income for small business owners, doctors, lawyers etc. whose income is inconsistent from year to year
Small business owners, usully aproved based on DSC not DTI.
The use of "unaffordable is misleading, they are affordable but above prescribed debt ratio limits
Zero, we underwrite every 1-4 family realestate loan to the secondary market standard.
NA We do not originate substainard loans
Sporadic single sourceannual income from agriculture (or other sole proprietor incomes)
Mortgages that would have exceeded the 43% debt ratio but would have been able to afford the monthly payment.
Documentation to meet FNMA's criteria standards or property type
farmers or small business owners with sporadic year to year income
Debt to income ratio not calculated in accordance with new ATR standard
These were rate modifications on well seasioned and performing loans where no new money was being advanced. They were not redocumeted if they met those criteria.
Inability to adequately document verification of income, assets, employment status or other things very specifically required by Appendix Q. Documentation standards there are more demanding than our internal standards.
In the past, we've been able to accomodate borrowers who we believed had the ability to repay. The new regs require everything to fit in a box, which disqualifies many.
self employment income that varies from year to year
We calculate farm income by using the Debt Service Coverage Ratio, not DTI.
All loans are underwritten to ATR guidleines
we always qualified borrowers on an ability to repay
we don't make a loan that the borrower can't pay
The bank knows all the borrowers and no verification was requested.
retired borrowers on with large assets but not current income to support payment stream
Most of our non-qualifiers would have resulted do to a lack of documentation of income, as many times our lenders knew the specifics and relied upon that knowledge prior to the change in rules.
Rather than the loans not being affordable, they may not qualify due to the difficulty in documenting the loan to the ATR standard or loans that are affordable but may not meet the rigid standards
Self Employed Borrowers and Investment Borrowers
substantial increase in supporting docs beyond W-2, 4506 and paystubs. doc trail on every loan
Borrower has other assets or ability to repay outside of income.
Although a customer displayed an ability to handle higher ratios, the overall debt ratio exceeded 43%.
Did not include taxes & insurance in the DTI
all loans are fully documented in regard to repayment ability
case by case decisions less than 2% of loans closed
69% of loan exempt becasue either bridge loans or investment loans.
Numerous other factors impacting assessment of income and assets, etc.
agricultural statements are not formatted for the ATR rules
Did not verify income, assets, or employment status because the rule was not in effect. We likely could have obtained these items if it was needed.
calculation of interest rate re-price on variable rate loan
The Bank has not historically made loans that do not meet ATR rules
DTI is not an appropriate repayment capacity indicator for self employeed debtors
practice is to lend to only those who have "ability to repay"
We do not issue loans unless they meet the "ability to repay" standards
Unknown. These were not previously tracked on the new standards.
This information is not tracked on our system.
high payment, high income but ratio above 43%
We were not required to verify employment, not pulling more current credit reports, not verifying income
Assume that all loans originated met the ATR standard
Temporary reduction in income to support payments
All would have qualified under the ability to repay standard.
We have many homes that are second home or made to retire's with very significant assets but somewhat low annual income without converting assets to cash.
Our underwriting guidelines do not allow
inherited mortgage portfolio from acquired banks
Although we might have made mortgage loans that did not meet the DTI criteria we would not have made loans that "made the borrower unable to afford his/her monthly payment".
Almost all have ratios above the 43% standard but for a variety of reasons we feel that they can still make their payments.
Temporary DTI in excess of limit but assets available to take care of the shortage
Regulation sets how to calculate income & no net worth reliance allowed
DTI ratio does not fit regulatory limits
builder workout loans (no longer offered); reduced documentation loans (no longer offered)
Documentation of income and various other guidelines required by the secondary market to compute ATR
Methodology regarding the calculation of cash flows derived from self-employment/pass through entities. Treatment of balloon payments.
verbal verification of employment is not practiced as we require paystubs or written verification of employment but not bank's practice to actual call the employer to verify
Ballon payment structure for the self employed
we didn’t require third party verifications, we didn’t always include taxes, insurance, HOA fees, etc. in analysis and we didn’t always use the fully indexed rate possible in the first 5 years.
We underwrote all the loans based on the ability to repay standards.

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an inability to meet the underwriting standards and documentation requirements
Same narrative as prior question - no room for interpretation of derivation of income and calculating debt ratios for ARMs after 5 years.
All of our loans would have met the criteria
Would have very few that would not qualify (if any)
None-feel all our loans would have been Qualified
We are in an underserved area and have not had total clarification on qualified vs. unqualified. It has been our understanding that we have only done qualified mortgages, but there is some discussion to be sure. This being the case we may have some that are not qualified be are working with examiners to get accurate information.
All mortgages met the Qualified Mortgage standard
Using a 5 year max payment with no consideration for the borrower's income to increase.
Generally, do not make loans that would not have met qualified status.
ARM's - payments not equal for life of loan
Undocumented self-employment income and case-by-case underwriting exceptions
The loans are commercial loans made up of rental properties.
many of our portfolioed loans are to self employed business owners who do not have standard W-2 statements that fit into the QM standards
there were no mortgages that would not have met the qualified mortgage standard
Writing all to QM (Small Creditor or Temp. GSE Exemption
Loans in portfolio met the Qualified Mortgage standard.
we made no loans that would not have qualified
We are within the small creditor threshold and do not exceed 500 mortgages.
Could not verify recurring income to meet the 43% standard
The reasons that we hold non-qualified mortgages would mirror the reasons that we hold non - ability to repay loans. It is not a structure issue as indicated in the reasons above .
NA We do not originate substandard loans
no verification of employment and income
All 1-4 family mortgages held at 12/31/13 were demand loans.
Also because our popular 3-yr and 5-yr ARM mtg loans are priced as HPML's and thus could only be QM if by rebuttal assumption and never as a General QM
There is now less ability to be creative in developing a solution to get people of modest means into a house.
This information was not tracked historically
82% of the loans were originated prior to 2010. Therefore unable to provide a concise number
Becuase the bank knows the borrower, and the Ability to Repay data was not collected; then bank's mortgages would not have had the required paperwork for the Ability to Repay in the file and therefore the QM status would not have been attained.
Again, the issue is not always that they would not have qualified, its that the documentation requirements took hold in January of 2014, so some of the older loans would not meet the standards from a documentation standpoint only.
Construction loans; negative credit history due to health issues
Due to an affiliation, we would exceed the small creditor asset threshold.
jumbo; rate adjustment period precluded from meeting QM DTI underwriting requirements
Inability to satisfy debt to income becasue of self employment
Prepayment penalty provision would have made them exceed the points and fees threshold
Excempt because Investment or Bridge loans
Other issues with non-standard income, assets, property details
agricultural statements are not conducive to the QM rules for DTI - use schedule F
Did not verify income, assets, or employment status because the Ability to Repay rules were not in effect. We likely could have obtained these items if it was needed.
practice is to lend only to those who meet "qualified mortgage" standard.
did not meet secondary market requirements
The methodology in Appendix Q is restrictive than we have used in the past. We have been able to add back interest expense for rental property, farm and business debt.
There may be a few other isolated reasons but almost all were because of debt-to-income ratio.
Temporary excss dtI ratios that would or could be taken care of in the future or from other assets
Builder workout loans (no longer offered); reduced documentation loans (no longer offered)
Most would qualify because we are a small creditor

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We have seen a decrease in the interest, due to other technological means.
rates are too low and customers tend to rate shop and refinance frequently
Competiton for space on the balance sheet
Most requests are small and due to work involved versus interest rates we can charge
No equity in real estate due to the 5 year Great Recession
These loans fall under the QM/ATR rules. Opens to potential risks associated with the loans.
Compliance costs as well as hard to qualify borrowers
We are exiting our indirect portfolio due to Fair Lending criteria that is largely out of the bank's control.
Second mortgages becoming too burdensome to process (and usually higher risk profile unless first mortgage with us). We have been reducing student loan particpation for 10 years.
Even though we're a billion-asset bank, the compliance risks and training costs associated with doing these loans correctly in all the small offices (rural branches) we have make it highly unprofitable. It's always been tough to try to provide these in communities where they are otherwise not available, but now it's senseless! The biggest banks will still be able to afford to, but they stopped serving rural America with their true needs years ago.
The regulatory burden of "Fair Lending" will soon make small dollar consumer lending a thing of the past.
concern over litigation over ability to repay
The unsecured lending due to economic conditions and the risk of the line of business. Auto lending because of rate competition.
Complicated compiliance and qualification requirements. We are trying to find a way to help our existing customers whose loans are already on our books as balloon type mtg loans. we do not plan on putting many if any new loans on our books.
QM rules and FDIC direction to substantially reduce making any loans to any class of borrower that does not meet the new definition of a proper high class borrower (i.e., high credit score, long-term employment and low leverage)
Uncertain regulatory rules and expectations. Limitations on offering terms that are affordable yet may not be or it is uncertain if they will be considered as such by the regulatory agencies. In addition, the new standards and Dodd Frank create some uncertainty as to the collectablity of loans/additional litigation risk in a collection situation if we do not underwrite exactly to the ATR or QM standard.
Due to the restrictive nature of Qualified Mortgage and Ability to Repay regulations.
Lack of equity in borrowers homes, unwilling to accept unsecured exposure other than to highest levels of creditworthiness.
Regulations, regulations, and more regulation. Unrealistic, time consuming, unlimited risk from regulators free to fine you for not recording the direction of the wind when the application was received and when it was closed. Beyond, way beyond any logic or purpose.
New QM & Ability to Pay reg's. Paperwork too burdensome; not profitable.
To difficult for the customer to understand references to the index in regards to the movement of their interest rate. Confusing number of regulatory notices regarding, interest rate, payment, indices, maturities, future notices and future maturities. Couple that with escrow analysis payment changes. Too difficult for customer to understand and bank to administer. Also very expensive to service.
Demand for the product as to HSA. Compliance concerns and increased risk as to HECLOC.
Low volume small portfolio. Not profitable.
Too risky on the compliance side. Too many regulations.
We will have to limit or reduce our balloon mortgage loans which are 90% of our mortgage business if the balloon mortgage rules are not permanently exempted.
Credit Card regulation and over saturation of market. Student loans additional regulation and the decline in market since student aid offices have taken most of the responsibility of making direct loans through the guarantee programs.
Inability to generate sufficient volume to warrant operational, compliance and technology costs
declined RE values of properties in the area, so fewer will likely meet LTV guidelines in policy.
We don't do enough to be able to afford the staff to ensure the loans are compliant.
all of the reasons are compliance related
We would like to limit unsecured lending due to loss factors over the past few years in this product line.

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both products are in high demand in our market
We are seeing more electronic services & demand for such services. Market is moving quickly to these products.
Additional sources of revenue and loan applications
To see if we can incease consumer lending some. Remote capture is desired by a lot of our younger clients
We plan to expand our commercial product line to include cash management. We expect consumers to demand personal financial management tools as part of their bank's offerings.
The younger population will require that.
Wealth management will tie our commercial customers to us in a new way and deliver fee income. PFM is a way to reach Gen Y customers.
Customers are demanding the convenience and we are looking for some value added products
Technology advancement Add on feature of insurance Key man businesses Identifying Retired Medical Clients requesting wealth management services
We were forced to sell to a bigger insitution because of regulatory costs and couldn't afford to add the services being requested by customers as each new service added comes with more regulation
Add this service as a complement to our electronic banking solutions for our customers
Customer demand for the product requires its implementation
Mobile and online banking products are what Generation Y (and future generations) will want.
To meet regulatory requirements and the demand of the customers.
To stay competitive and generate additional revenue.
ARM's are a way around the balloon payment exemption for QM's. Others are just trying to keep up with technology and services offered by competitors
Competition demands it. Younger clients want it. Perhaps lower internal costs and generate additional fee income.
Income opportunity for our bank based upon the volume of wealth being created/transferred in our market area.
Demand for HELOC's has grown. Adjustable rate mortgages may be an alternative to balloon payment loans to manage interest rate risk. Customer demand for remote deposit capture is increasing.
Additional revenue streams, depending on the risk qualities of the products.
service to customers and expand offerings to community. and to grow. and to make some money.
Too stay competitive and acquire new business.
Relationship Banking and additional cross-sell opportunities.
Market seems to be interested and may help capture new and retain existing customers.
Customer convenience and demand for the products.
We plan to start offering it because competition is offering it, and we expect to need to offer it to keep customers.
To stay competitive and in consideration of IRSA
We have several business customers that have employees with awful credit histories, who would greatly benefit from payroll cards.
To continue to offer our customers those products they are requesting.
These are services we believe our customers will be wanting and we will need to offer them if we are to maintain their relationship
government regulation/intervention in the residential mortgage market
customers wanting more convenience. other banks are offering it already.
Our customers are expecting us to offer this
We feel it will meet our customers requirements to remain competitive.
We believe that this is a way to service our customers better and to also retain young customers who move away for college and employment.
We currently operate out of one central location in our market. Mobile banking will benefit some deposit customers, which will continue to allow us to keep overhead down and operate from one central location.
After the expiration of the 2 year "transition period" we may offer ARM loans as an alternative to 30 year fixed rate mortgages in order to protect the bank from unecessary interest rate risk.
Market demand and the ability to bolster core deposit base.
Match existing products offered by competition
Expanding revenue sources by adding credit cards. Offer adjustable rate mortgages to meet consumer request.
Allow ease of access to banking customers and prospects without adding additional brick and mortar locations
Having an offering to customers that are not branch dependent or are of the age that mobility and flexibility are the key determinging factors for chosing a bank.
ARM's because of baloon exemption expiring, Payroll cards to reach the unbanked,HSA's because of Obamacare
ARMs due to the changes in regulations. Mobile Banking and HSAs based on customer need and competition
Competitive pressures and potential revenue.
customer demand seems to be increasing for this product/service
Convenience to customer and to match competition.
Demand from our un-banked or those that cannot handle the balancing requirements of a typical checking account.
competition is going to force us into these products
We anticipate demand from our customer base.
Working with mortgage broker that offers reverse mortgages. We will utilize them to get the loan completed. Currently working with a vendor to offer personal financial management tools that we hope will be in place before year end.
We have looked into these products specifically to keep up with what competitors are offering. However this list is not exhaustive.
We want to be competitive with larger banks. Our customers are requesting this service and may leave if we do not offer it.
The growing expectation and requests from our customer base as well as the changing medical insurance landscape. We have researched both products and have pricing in place for mobile banking.
Customers will demand access to these products.
marketplace of younger customers will demand it or will move to another financial institution
Demographics - more customers rely on smartphones to access data that previously was only accessed at computers in the home or office. Wireless Ipads and and tablets are replacing wired PCs.
More focus and emphasis on retail banking versus commerical strategy.
We will continue to increase our focus on commercial relationships and believe these areas to be useful, particularly to small business owners
Competition from other institutions and targeting new, younger customers
we were purchased by an outside entity and they will offer these products.
We've always done balloons because we were afraid we could not properly disclose adjustable rate loans. We think our software can do that now and doing them will make the process more automated than balloons.
To give the customers an opportunity to pay online. Many of our customers only have a cell phone and the mobile banking would help them.
customer demand and competition currently offers these services.
Researching now and not sure but feel there is a need in our area.
Greater demand and a clearer picture of the health care industry and direction.
To streamline the process and be more competitive.
Because the competition is offering or planning to offer these products
Increased traffic making it more difficult for customers to come to the bank.
Adding mobile banking as a necessity to retain deposit accounts and have found 3rd party to make student loans for bank (fee income as we will not hold loan balances)
Customers are asking for product and Reginal Banks are presently offering them.
Expanding our customer services. Competition
Adjustable Rate Mortgages because of the balloon clause in the qualified mortgage arena. Loan applications in order to reduce employee time spent and meet the ongoing market demand of electronic banking services.
Add to product offerings and generate revenue and cross selling opportunities
To renew our existing balloon mortgage to QM's
Natural extensions of existing business lines
Nonbank competition is forcing us into this arena.
Some large customers who are considering this for their employees.
Customer convenience. Generate more business
I feel that competition will require us to offer both of these products as some banks in our areas already offer them.
to compete and provided customers with requested services
Streamline processes. Keep up with competitors offering similar services.
ease of use for our ag and commercial customers
For competitive factors within our defined trade area and to better serve our business customer base.
Expectations from upcoming generation of customer
To be more competitive and generate additional income.
Gaining more customers that are younger and would like convience
Increase customer base and tie more customers to the bank making it harder to switch banks.
To meet both competition and demand from consumers
to expand our Financial Services menu of products
Ability for clients to apply for credit at home without coming to a branch; technological changes and competition require this move.
Mobile banking just to be competitive. Prepaid cards are just being considered as an option for addtitional fee income
1) it appears more people are going to use mobile phones for more financial products in the future. 2) to retain accounts that are outside of our normal trade territory.
[Redacted]. Mobile banking will expand our footprint and enable us to expand without brick and mortar.
To improve & increase the services to our customers.
Survey responses indicating a local market demand for these products or services.
It seems as though the CFPB prefers that banks write ARM loans versus Balloon-loans. The bank is in the process of offering personal financial management online though our mobile banking product.
We continue to expand and grow the bank. These need to be introduced for competitive and profitability reasons.
So the loans meet the Qualified Mortgage standard to avoid having to get a new appraisal at renewal, and for interest rate risk purposes
natural extension of our current product
Competition and changes in the mortgage rules warrant the ARMs products. Cash managment and personal financial managment tools are needed as customers are asking for them.
Within our geographic footprint, our clients primarily work in urban areas with sophisitcated bank product offerings. Teh Bank will expand its product offering to continue to compete.
To provide our customers with an alternative to FreddieMac home loan financing, the bank needs to offer ARMs as our ability to offer balloon loans will terminate by year end 2015.
Hopefully capture new loans by making application process more convenient.
Moving bank into more commercial lending including SBA's.
To better serve our business customers thru expanded online banking
To expand product offering in effort to solidify customer relationship and produce fee income
Assist and educate the consumer customer and to remain competitive. Serve our community.
to become more competitive and capture a younger customer
Strong potential customers are using them now. If we are to grow we need to offer this service.
to enhance the product suite offered to customers which would allow us to be their primary financial institution
as technology increases and costs come down, we hope to expand electronic services especially to millenials
Expand product offering for our mostly rural markets.
After the exemption period we will not be allowed to do balloon loans since we are not in a rural area, therefore will be required to do ARMs. In order to stay competitive with larger banks, we are looking at mobile or RDC
competition and the search for more income
To keep up with the competition. More customers are using online services rather than walking into banking centers.
Will do 2nd mortgages if we have the first lien
Demand. Other banks in the area offer it and the customers really like it.
To keep up with technology and respond to customer demand
To meet services provided by competition.
More and more customers are demanding these services and products.
COnvenience for our customers and competition offers these products.
There are demand in these services and products.
convenience for customers and for competition in the marketplace
These appear to be products that might offer an opportunity to reach out to a demographic that we currently don't serve very well.
Keeping up with the times and to be able to offer our customers what other banks are offering.
We feel it is a service that will drive loan growth.
We believe that it will increase deposits.
Mobile banking is emerging as a necessity for banks to have in their offerings, while cash management and wealth management are services that our target market finds appealing.
The increased liklihood that more and more people will be moving to this type of arrangement due to transportability and necessity, as well as ease of use.
Add to online banking services if cost effective and compliance and security issues can be assessed and controlled.
Needs by larger customers and competition demands this product.
Enhanced technology for customer convenience
We believe electronic presentment will be a service desired by our small business customers.
WE are looking into partnering with another instution to offer a mortgage product that can meet the need of our customers and that we can be in compilance with the new laws. On line applications are being requested by more of our customers and it may be the best way for mortage customer to apply for a loan.
The bank is recovering from the downturn in the economy and has recently been released from a Consent Order. We are now ready to expand our product offerings and rebuild our loan portfolio.
Revenue oppurtunity and ability to offer full range of products to consumers.
We plan to start offering these services to be competitive in our markets.
Expand product offering for customer service.
Commercial deposit customers are asking for this product. This will allow us to maintain relationships over greater distances.
There is a demand for the product and if done prudently, it will work.
Expand customer base and offer additional services for our customers convenience.
Enhancing customer service and their experience
We feel the first can generate fee income. The latter, Personal Financial Management tools will be value added service our client base would like.
we are only exploring this right now, but think it could be an important product for both our business and personal customers
to be competitive in the market; offer customers a more convenient way of banking with us
Online loan applications - customer convenience and competition Adjustable rate mortgages - potential rising rate environment
competition and better access for customers
Round out our consumer and small business suite of products, and enhance revenue opportunities
Management is making a new investement in technology and technology services.
Not positive we start offering this; but with technology development my guess would be that we begin to offer consumer and possibly home mortgage apps online in three years...big reason why: consumer convenience, and competition.
Based upon need in market. ARMs may be needed after 2 year exemption period for balloon mortgages. Cash management is a service that has been requested by several key customers.
Competitive pressures and customer loyalty
To provide our local community with a service through our institution that is not currently being offered and to grow our loan portfolio with good solid loans.
To remain competitive in the market place.
We believe these are products/services that will help us maintain/increase our market share.
Aging population needing equity from their home to live on.
Increased competition in what has been, until recently, a relatively closed market has required the Bank to increase and update the services offered to stay competitive.
Streamline process. Customer preference for online channel.
The public is using more mobile devices to bank in our area
To meet the needs of our ever increasing tech minded customers.
to accomodate some customers that need it.
Entering new market where these products are necessary to compete.
Greater visibility for the Bank and allow us to extend our potential customer base.
To better serve our MSA and customer base.
better serve our client and prospect base
Additonal service to existing customer base
need to replace the income lost on other regulated products
Once the regulations are more readily defined AND pricing to risk is considered acceptable, this product line has the potential to be very beneficial and desireable in the market place.
To move one step closer to becoming a full-service banking institution and also help to better serve our small business clients.
Everyone is moving to electronic banking. A large portion of our transactions are no longer face to face
The demand of our customers for this product. Competition. Convenience.
We see it as a product that will be demanded to bring in new customers.
To make banking remotely easier for our customer
Customer demand and to remain competitive.
Due to its increase in popularity, and adoption.
Expansion of customer base, and to compete with non-traditional financial instuitions.
to expand our services to remain competitive.
Only looking for high-net worth opportunities
Growing need in markets, looking for ways to replace lost fee income due to regulation changes.
to attempt to draw more commercial business
capture primary banking relationship by bundling products
acceptance in market should pick up by then
Online applications are planned as we extend our geographic footprint for 1-4 family lending and attempt to be a customer's bank for a lifetime. RDC will be offerred for convienence and lowering of cost to process deposits.
Competition, Convenience for applicants. Primarily 1-4 Family home loan applications.
We will need this product to be competitive in our market.
T keep up with competition and give the customer another avenue to bank with us.
To better service our customers and the need for convenience.
Anticipated changes in our structure, possible merger.
Increase demand and to accommodate customers better.
Assist our customer with additional service. Additional non interest income...
To remain competitive in an ever evolving technological world
to remain competative in the market place
To increase efficiency in the overhead cost, targeting specific demographics and having the convenience factor.
to remain competitive in our marketplace
We see a need for both products. Cards because of problems with security of present card systems. Personal financial management because of the growing desire by our client base to have this type of services
to give our customers options and flexibility
Expand consumer client base through additional products and more convenient access to services. Expand commercial cash management services to facilitate growth in demand deposit ratios.
Due to Intrest Rate Risk profile of our bank
To serve customer needs and retain market share
In order to continue serving our customers needs and make mortgage loans.
regulations may require the use of ARMs. Customers will be demanding the use of Mobile Banking
Adjustable rate mortgages - increase loan volume mobile banking - customers and prospects want it payroll cards - efficiency and security
To meet the demand of Internet Banking services
replace our current balloon mortgage loans. To meet the competetion on remote deposit capture
Consumers are wanting more technological advances
competition is doing it and we are not. We can get loans from out of territory but not the deposit relationship. We need deposits.
To target a market that wants to utilize the convenience.
demand for products from existing customers / necessary to stay competative
Try and offer new services that are growing in the marketplace.
Regulatory restrictions on other types of balloon loans
Competition offers bill presentment and mobile banking. Personal Mgmt would be for profit opportunties
We see demand in the market for these services and these offerings will result in business generation
To keep up with technology and competition.
clients are asking for it and general technology advancement.
A desire to meet the needs of all of our clients, be they new entrants to the credit cycle, or ones that have been well established. Also want to ensure we are providing maximum customer conveniences.
To be more full service, broaden our appeal, create additional income
Must enter the mobile market to remain competitive. PFM is available with our new internet platform.
Due to implementation by competition, we will have to offer these products in the very near future.
Requests from customers for that service.
For better customer service and to expand customer base
Expand the products we offer our customers and try to reach new customers.
Compete with other banks in our market area, capture younger customer market.
Inceasing loan volume (online lending) and commercial business (cash management).
It is our opinion that an increasing number of consumers desire to have personal financial management tools available from their financial institution.
We strongly feel the consumers today demand these services and in order to stay competitive we must offer them.
Provide another delivery channel for those that want that availability. Large local employer has part time and seasonal employees that would be better served by paying them with payrolll cards.
Competition will drive the reason for Mobile banking. The insurance product is an avenue of additional fee income.
Stored value cards as they are sought after in our marketplace and large retailers are gaining this business. Personal financial management tool is an extension of the electronic banking we offer.
Part of our strategic planning to continue to offer online / mobile services for our customers.
Cheaper delivery and convenience to customer.
Advancing technology and keeping up with regional competition
consumers requesting and to stay competitive with other institutions.
So we can compete...additional business lines and earnings opportunities
Customers want these services. Next steps in strengthening bank's electronic banking services.
Part of expansion of internet based products.
Mobile Banking: keep up with competition Wealth Mgmt: Influx of cash to consumers in our market, due to active mineral leasing & potential of future royalty payments.
1. To keep up with the competition. 2. To increase non-interest income.
Being forced to do so by our competition.
ATTRACT YOUNGER CUSTOMERS. TRY TO INCREASE THE POTENTIAL CUSTOMER BASE TO GO AFTER.
Customer service expectations and advances in technology.
We have a new software program which will make this process easier. Also, there are more and more people wanting to do applications/loans online.
With more and more financial institutions offering mobile banking we feel we will be a competitive disadvantage if we do not also offer mobile banking.
It important that we improve our on-line and mobile banking services to keep current with competition and satisfy our younger customers.
We have a somewhat clunky online loan app process but it needs to be robust to be competitive.
To make it easier on the customer to apply for a loan.
To appeal to a broader customer base and for convenience in applying for credit.
We need these offerings to remain competitive and viable.
More customer demand and tools are becoming more affordable to provide such services.
As a portfolio product to take the place of Balloon loans if the small servicer balloon loan exception is not extinguished
adj rate mort - expand product offering online aps - generate more loans, keep up with competition mobile banking - consumers want it payroll cards - convenience for business customers and improved security for the bank
To meet technology needs of existing and potential customer base
Many of our competitors offer this service.
Offer greater variety of banking products to grow customer base and change deposit mix. Transition from savings to retail banking focus.
Online loan applications and payroll cards will become more important to consumers. We would do now but other product priorities pushed the aforementioned into the short term future. Personal financial management tools with personal service are critical for community banks to compete against large institutions...being a small Chase is a recipe for failure
Customer needs and benefits. Maintaining services that match current customer base
We are increasing our mortgage offerings
Higher application of technology Build more small business client base
We will have to offer them because some of our other loans may not be allowed.
customer convenience and because competitors are doing so
Consumers require enhanced and convenient technology options.
Customer demand and reaching product parity with competitors
Online loans to meet credit needs of younger population -- Payroll cards as value-added to employers and service to un- or under-banked
Initial discusssion stages at this juncture.
it will meet our needs for small consumer unsecured loans
We want to become more efficient and taking on line applications not only saves us time but make the process more stream line.
competitive reasons, customer preferences, industry trends
Demand by consumers, primarily in younger demographics.
Offer complete services to mortgage customers
Competition. To meet the demands of the consumer in today's marketplace.
Competitive pressure, improvements in security
To better serve our consumer customer base
Continue to expand delivery channels to allow the customer to choose how they want to interact with our bank.
Matching services with public demand and evolving habits.
Management is evaluating a networking arrangement with a SEC registered broker deal to offer NDIPs and wealth management services. Management is also evaluating a mortgage subsidiary which would broker residential mortgages to secondary market investors.
competitive reasons and technology may be more affordable
to make the lending prcess more streamlined.
To provide more accessibility to the ever changing online use.
We are moving to a new provider and it is a service we would like to offer our customers.
customer convenience; encourage customers to utilize technology available
Expansions of services to current clientele.
Changing times. The new generations want that service. We need the loans. We don't really have much of a choice.
First, we need to keep up with current technology and attract younger customers. Second, we need wealth management to incerase our non-interest income.
Will start becoming more accepted by business owners as a way to pay employees.
to keep up with technology and desires of our customers.
Based on our loan portfolio we have a competitive advantage that would allow us to increase fee income.
We currently offer online banking at this time, and see a need to expand to the full 'mobile banking' product due to demand.
Growing demand & popularity and competitive pressure.
to keep up with competition and to make our loan products available to customers.
Demographics. Ten years from now, if we don't change our way of doing business --- such that it changes the demograhic mix of our customer base ---we'll be out of business. Brick and mortar banks are soon to be a thing of the past.
customer demand, competitive disadvantage at present without the services compared to all of our competitors.
Opportunities for core deposits, associated fee income, and cross-sales of other products and services.
We feel that this is a product that would assist the bank in obtaining loans.
Products that our customers are looking for in the future.

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less CEO time devoted to business development and growth
Hiring a full time compliance office and two venders to assist us.
Requirement of regulators for more skilled personnel
We completely withdrew from the mortgage origination business
Significantly more paper and printing costs (disclosures, brochures, etc)
Trying to keep abreast of all of the new regulations
reduction of nsf fees due to daily limits
New rules and regulations have to be met.
training on requirements / legal changes
Unknown loss due increased regulatory burden that can't be measured
third party training and other resources
the 15% increase is only direct cost---we have lost efficiency and cost per loan especially in the single family real estate lending
staff time invested in interpreting and implementing the constantly changing regulations
Frequent complaints about the overwhelming quantity of disclsoures.
If we continue to throw down our best loan customers to satisfy FDIC they will go down the street to a larger national bank with no hassle. Seriously.
Increase regulatory scrutiny....CFPB, FAIR LENDING, UDAAP, CRA are just a few that are that have required us to engage additional 3rd party compliance auditors.
Engagaed vendor to conduct compliance monitoring
we only have 9 employees and 3 are devoted entirely to regulatory activities. a
costs of all the training/new software to handle the compliance changes.
Increased and additional regulatory burden
Loss of customers/loans due to the inefficient appraisal process and lack of accountability of appraisers to provide quality and timely work.
Increase Regulations and heightened regulatory oversite
Re-allocation of resources from production to comliance
increased on-site and off-site training expense
Increased technoloy and education costs.
Dodd Frank caused us more regulation changes
Training and retraining of staff---frustration of paperwork and detail---mounds of paperwork
Increase in the number and complexity of the mortgage regulations
increased third party audit expense to ensure compliance
Increased paperwork, disclosure burdens and increased time between application and final approval due to increased regulations.
mandatory training and audit requirments
Increased regulatory changes and requirements
Additional information needed for mortgages.
New areas of regulatory focus (i.e. risk management, vendor risk management, etc.)
Technology upgrades; Forms and dislosures both new and revised; Increase time to underwrite 1-4 family loan applications.

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By giving responsibilities to three people to do as part of their job instead of having two employees working it as their full-time jobs.
Improvement of regulatory status and improved internal policies, procedures and audits.
more web-based training rather than travel while increasing our dues/subscriptions to more training sources
Making initial investment to recruit senior level talent that was charged to re-organize compliance activities across the Bank. Changes implemented resulted in the reduction of: legal fees, excess software subscription fees, excess FTE, and replacement of highly paid personnel with junior level personnel. Focus on developing internal solutions versus paying for outsourced solutions.
They did not decline but have grown significantly
Lower salaried personnel. We are not a great indicator for this statistic as most bank's compliance costs should have increased over the past few years. We restructured our compliance department that resulted in the dismissal of high-salaried employees.

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Overall operating cost incliding complience cost
Need for capital and lack of available sources. Regulatory pressure. Uncertainty as to what future community bank model will look like.
Dynamics of ownership and senior management. Age
compliance challenges and shrinking NIM in a zero interest rate environment.
Permanent decrease in profitability as a result of regulation.
time, effort, and costs of compliance with new regulations
Too small to be efficent and couldn't afford to offer services requested because of cost of software and maintenance agreements as well additional compliance costs with each new service offered
All around pressure on the independent small community bank model.
Offer price and a realization that our current asset size limits us in a number of ways to continue to grow and provide value to our shareholders.
Competition with credit unions in our area is becoming increasingly out of control. Coupled with the increased demands of compliance -- not sure we want to be in banking any more
Compliance issues and not being able to find anyone who wants to accept the responsibility of being a compliance officer. It has gotten rediculous and making several members of our staff contemplating retirement.
Can't compete with the larger institutions.
We are a small community bank and are finding it harder and harder to compete with larger institutions in today's market.
The increased regulatory burden is making it difficult to compete with the larger banks and the credit unions.
Need more assets to stay competitive rate wise.
Limited income growth opportunities to enhance shareholder value.
regulatory burden and economies of scale
Worried that in the near future we will see our profitablity decrease to a point that we can no longer serve our customers/community, shareholders and employees in an adequate way.
Regulatory fatigue and lower ROE due to increase compliance cost.
Economies of scale and operating efficiencies.
Small banks need size to be able to spread compliance costs over more volume, more staff needed to build infrastructure for QM loans, and examination procedures do not reflect size of the institution.
Regulatory and compliance expenses for a small bank
Felt it would have been good for our shareholders.
Cost of operation for small bank and regulations
Maximize stockholder value and increased regulatory burden and cost to comply
We considered whether the acquisition would be beneficial for the stockholders and the customers.
You eventually wear down. The risks are becoming greater than the reward.
Owner's age, his spouse's poor health, lack of family interest in succession, poor interest rate margins, increased competition, increased compliance costs, and other operating costs.
Economies of scale and increased compliance cost
Economies of scale and compliance burden
The seemingly endless compliance burden imposed on the bank by misguided legislators .
A bank our size does not have the "critical mass" to be able to afford the technical expertise to consistently comply with all the facets (as well as varying interpretations) of the rules and regulations being promulgated.
Seriously considered, but did not accept due to price.
Regulatory Requirements Older Shareholder Base Shareholder Liquidity
Overhead costs. Primarily compliance and technology related costs.
To help the bank grow and have the personnel to manage new types of services currently not being offered at our institution.
Potential acquirer could not fulfill all terms and conditions
I am tired of being viewed as a bunch of common criminals by the federal government and regulators. Folks, most of the criminals these days live in Washington D.C. We are honest people and have been right here for 35 years providing a honest service to our customers. It's time for this bunch to get a grip.
The over zealous regulatory burden that has been placed on us.
The banking business for a [redacted] million dollar bank is no longer fun or profitable.
Restructure the bank's capital to further strengthen the bank to be more aggressive in the marketplace.
Merger of equals consideration based on improving economies of scale and overall depth of talent.
The pressure on bank's profitability and the decline of the independent community banking industry that will result is the primary reason for consideration.
Duplication of expenses related to compliance requirements affecting all areas of the bank to include but not limited to consumer products and lending compliance.
Too difficult for small institutions to deal with all regulatory burdens
To grow the bank and earnings; and lower our overhead cost of running a smaller institution. Improve efficiency of personnel cost.
Failure to achieve acceptable multiple of book value from suitor.
To get out of this over regulated low margin business
If we don't sell out will that bigger bank come into the market and slowly pick off our customers with better rates and eventually force us to sell.
new and expanded opportunities frustration with compliance hassels.
Ever-increasing burdensome regulations, decreasing net interest margin due to government interference in interest rate markets.
The risk/reward model for community banking no longer makes sense relative to other investment options for shareholders.
Regulatory burden and anticipated future regulatory environment for community banks.
Without the rural exemption we will not be able to compete with neighboring banks. We hold all loans in portfolio. Traditional balloon loans have been our business model for appx. 100 years. Without the exemption we will not be able to maintain a margin to adhere to safety and sound procedures for the bank.
Economically it would be better for the Bank.
Merger of equals. In similar markets. Efficiency gains.
Get out from under the huge increases in Regulatory Burden---Not Fun Anymore
Transfer the burden & liability of operating a small bank to another entity. Board and management are extremely fatiqued in their efforts to try to meet all regulatory compliance requirments and meet return expectations of shareholders. Job satisfaction is very low at this time.
Because you're putting us out of business!!!
Too difficult to generate a reasonable rate of return on our capital
Regulatory contraints and economic conditions
We have a fiduciary responsibility to maximize shareholder value and the acquisition offer may make more sense than operating the Bank for profit in the future
Increased regulation and compliance costs
Ability to continue profitability with the increased burden of regulatory requirements.
increasing regulatory burden expected margin/earnings pressure age of management
The appearance that institutions of our size may not be viable in the future.
We question our ability to make a profit and to service customers in the future. Our customers don't blame us for all of the regulatory and "cop" monitoring things we are required to do. Doing business with a bank is difficult.
regulatory burdens and efficincies of small bank
Fear of ongoing and future increases in compliance burden and complexity.
profit margins continue to shrink, cost continue to increase, therefore volume needs to increase
It was a strategic combination both geographically and from a business line and management standpoint.
Continued growth in a different market area
Primary reason had to do with lack of growth, margin contraction, economic outlook. However, we had reached a point where we had more FTE's in Compliance and its' related areas than we had doing credit analysis - which we did not think was a sustainable model for the long term - and which led us to the realization we had to substantially increase the size of the organization in order to leverage those costs over a larger asset base.