Case Study: Is your bank looking for a competitive lending tool to gain and retain customers?

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Community banks are finding it difficult to compete in a changing market. Learn how one community bank competed effectively to win customers using a unique and robust lending tool.

 

Challenge

Do you find yourself losing business to banks that offer a more competitive fixed rate? Looking for more ways to satisfy and retain your current borrowers?

 

Solution

It’s a common theme among community banks: customers want the long-term, fixed-rate loans the large banks are willing to offer them, and community banks are left looking for a way to compete. Lea County State Bank found itself in this very position. The bank is funded with non-maturity deposits that can rise in costs if rates go up, which made them hesitant to offer customers long-term, fixed-rate loans.

In this case study, Lea County State Bank shares how it successfully used PCBB’s unique hedging solution to provide their customers with the long-term, fixed rates they want, while the bank has only the floating rate loan on their books. It was able to compete with larger banks and retain their customers.

“The long term fixed rate was key to getting the long term customer relationship, all because we were able to accommodate the long term real estate deal.”

Sam Spencer, President of Lea County State Bank

Download the full case study here.

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