Effective Loan Pricing: Growing Your CRE in a Changing Rate Environment

Wednesday, May 13, 2020
2:00 PM ET / 1:00 PM CT

Having a hard time discerning whether your lending team is originating both high quality and profitable loans?  Are you struggling with how to price loans in a changing rate environment and how to stay competitive on the right deals?

In this session, you will learn how to avoid some common pitfalls in loan pricing decisions and assessing overall customer profitability.  We will discuss risk-based pricing methods, blended funding concepts, and profitability calculations.  We will also discuss the best profitability benchmarks for your current capital position and loan to deposit ratio, as well as how CECL might impact pricing strategy.

Key Takeaways:

  • How capital and growth strategies impact pricing decisions
  • What the different loan pricing models are and how they are used
  • The main components and key assumptions of loan pricing models
  • The concept of blended funding and the cost of funding loans
  • Selecting the correct benchmark/target for loan pricing
  • How CECL could impact pricing and product strategy

Meet Your Presenter

Rob Newberry

Rob has over 20 years of experience in the financial services industry. Rob spent 15 years at Wells Fargo & Co in various strategic and leadership roles. These roles included time in Finance, Servicing, Fair Lending, Pricing Strategy, Business Intelligence, and Delivery Innovation. For the past 5 years, Rob has worked closely with financial institution leaders and regulatory agencies to develop a credit administration suite of tools specifically designed for community banks and credit unions. Rob is a faculty member of the Graduate School of Banking in Madison, Wisconsin. Rob also teaches for both the Financial Managers Society and LexisNexis Sheshunoff eLearning on topics ranging from loan grading, ALLL calculations, and stress testing.

Full Bio

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