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OTC Markets Blog

Latest commentary on Market Structure, Compliance, Small Cap and Reg A+ issues, including insights on the news and trends that affect the public markets.

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Community Banks

Q2 Community Bank Data: A Closer Look at What You’ll Find Outside of the Balance Sheet

As Q2 call report data becomes available, analysts are looking for indications of how the pandemic may be impacting allowances and delinquencies in community bank balance sheets.  However, considering COVID-19’s severe economic impacts didn’t begin until mid-March, what may be more telling at this juncture may be what is occurring off balance sheet.

Continue reading “Q2 Community Bank Data: A Closer Look at What You’ll Find Outside of the Balance Sheet”

Are CRE Concentrations Still a Financial Crisis Prognosticator?

During the Great Recession, commercial real estate (CRE) lending practices were heavily scrutinized and considered to be a leading factor of economic downturn. As a result, bank concentrations in CRE are assumed to be a strong predictor of bank failures.

Over a decade later, rising bank CRE lending concentration levels accompanied by historically high CRE prices have many economists convinced that regulations need to be revisited so history doesn’t repeat itself. As they debate whether or not current CRE lending practices are an accurate prognosticator, recent Qaravan data tells a far more nuanced story. Continue reading “Are CRE Concentrations Still a Financial Crisis Prognosticator?”

Leveraging the High Demand of Community Bank Stocks

The OTCQX Banks Index, a benchmark for community banks traded on the OTCQX market, gained 30 percent in the past 12 months, compared to 15 percent for the S&P 500.  How can community banks leverage this positive trend and deliver greater value to their shareholders? Continue reading “Leveraging the High Demand of Community Bank Stocks”

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