“PCBB has done an
outstanding job,
Gain a Competitive Edge both in person as
well as through
in Commercial Lending webinars, helping
our employees
Borrower’s Loan Protection® (BLP®) understand the
Loan hedging can be a competitive by giving customers the fixed-rate product fully.”
advantage for your institution— payment structure they want, while
– Greg Allen
particularly in a fluctuating rate your institution receives a floating rate
Market President
environment where customers over the full term of the loan.
Premier Bank
demand fixed-rate term loans and your
BLP protects community financial
financial institution prefers a floating-
institutions (CFI) from interest rate risk,
rate asset.
utilizing an interest rate hedge without
With Borrower’s Loan Protection derivatives on your books.
(BLP), you can protect your existing
relationships and win new business
Key Benefits
Grow your loan portfolio by Retain and gain customers with Reduce rate and credit risk Generate additional fee income
offering competitive rates to meet flexible term structures by keeping a floating rate on for your financial institution
market demand your books while extending loan
duration for your customers
Close More Loans with Why Choose PCBB?
Our Simple Solution
Not only can you compete for fixed- attractive longer term loans to your
P1 rate loans without exposing your customers.
TE balance sheet to interest rate or
S
With BLP, your customers simply pay
regulatory risk, but you can also easily
a periodic fixed payment. Also, you
access current market fixed rates—we
have the ability to generate additional
update them daily—online or on your
hedge fee income for your institution.
mobile device.
What’s more, we work with you as
You issue a floating-rate loan— Most hedge solutions offer a your hedging partner, educating
and keep the credit risk and maximum of 10-year terms, but PCBB your borrowers, protecting your loan
customer relationship
can provide much longer terms— relationships, and providing training
helping to keep you competitive and and marketing tools to help your
mitigate debt service coverage to offer lenders be successful.
P2
TE
S
Compare BLP to Other Hedging Solutions
Our Solution Back-to-Back Swap
% Financial institution provides Swap between CFI and
floating-rate loan to broker. Another swap
borrower, we provide rate between borrower
Your customer pays protection to borrower. and financial institution.
a fixed rate via the hedge
Eliminates need for derivative
accounting Yes No
Eliminates need for CFI to post
collateral Yes No
Eliminates master ISDA
Yes No
P 3 agreement
TE Eliminates multiple invoicing
S
and payments Yes No
Does the borrower receive
any hedge gain that exists at Yes Vendor Specific
prepayment?
PCBB takes the interest rate
risk and owns the derivative
LEARN MORE: pcbb.com | (888) 399-1930 | [email protected]
Simplifying Lending So Lenders, Borrowers, and Institutions Win
PCBB, the PCBB logo and other trademarks are owned by PCBB and its parent. For more information, visit www.pcbb.com/copyright. © PCBB. 220-24
