Tuesday Topic: What Replaces PPP Revenue?

As I told our Board in January, "margins are going down, PPP is going away (or so we thought) and we have a lot of money at low/no interest."  That said, I told them "2021 will be a year where we have to watch our expenses, reduce cost of funds and hope mortgage rates stay low for non-interest income." (We sell all our loans in Secondary market.)

In this environment, you hope you can grow faster than the reduction in asset yields, but in my 35+ years of banking, this is one of the toughest I have had to budget for.

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Jon Drake
Senior EVP & CFO
Peoples Bank
Lubbock, TX
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Original Message:
Sent: 03-22-2021 17:09
From: Barb Rehm
Subject: Tuesday Topic: What Replaces PPP Revenue?

As the Paycheck Protection Program tapers off, bankers are being asked what's next? Where will revenue growth come from? How is your bank preparing? Share your thoughts, please.

 

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Barb Rehm
Senior Managing Director
IntraFi Network
Arlington VA
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