Automated Financial Systems, Inc. (AFS)

How did C&I and CRE lending fare over the first half of 2024? Get insights with this month’s Credit Trends in Commercial Lending Webinar at https://lnkd.in/gb7wSGJx with AFS expert Tom Cronin!   This month’s webinar featured a review of the Credit Risk Navigator (CRN) portfolio’s performance for the first 6 months of the year. Generally, we’re seeing that while C&I performance has been relatively stable, CRE has experienced more significant declines in performance, with all nonperforming and delinquency measurements higher than what we observed the same time last year.   With challenges in both C&I and CRE lending, we weren’t surprised with the results of our in-webinar polls, showing that many banks are still reticent to loosen their credit standards, with approximately 80–90% of respondents indicating their standards are either the same as before or slightly tighter.   Don’t be left behind, find out what the CRN can do for you! Contact Tom Cronin at tcronin@afsvision.com for more information and how to get started.   @RMAHQ #RMACRNpoweredbyAFS #AFSBusinessIntelligence #CommercialCreditQuality #CommercialLending #CommercialCredit #CILoans #CRELoans #BankingTrends #LendingTrends

As athletes from around the world are preparing for the Olympic Opening Ceremony in Paris on Friday, #TeamAFS had some fun staging our own games this week! We came together to celebrate the competitive spirit with Nerf Archery, Pencil Javelin, Paper Plane Sprint, Ping Pong High Dive, and Water Jug “Swimming.” Whether they made it to our podium or not, everyone had a great time! 🏅 #SummerOlympics2024 #afsofficeolympics

Over the past month, commercial credit quality had been broadly steady amid continued challenging headwinds of high interest rates, new economic and political uncertainty, and weak loan demand. However, despite a prolonged period of high inflation and interest rates, commercial credit quality has largely avoided some of the more pessimistic forecasts. The percentage of C&I and CRE borrowers categorized as “nonperforming” has stabilized even as souring office loans and stress in the transportation and health care sectors have prompted banks to continue to build loan loss reserves. The future path of interest rates will greatly influence whether these areas of weakness develop into deeper problems. Read more about these and other important trends now in the AFS Commercial Credit Quality Bulletin, available here: https://lnkd.in/gb7wSGJx Don’t forget to join our experts next week for a look at the current state of commercial lending and the outlook for the second half of 2024. Register now for the complimentary webinar The State of Commercial Lending: Mid-Year Update on Wednesday, July 31, 2024 at 1 PM ET! https://lnkd.in/dwgFCFwu #CommercialLending #CommercialCredit The Risk Management Association #RMACRNpoweredbyAFS

Join us on Wednesday July 31, 2024 at 1 pm ET where we will discuss the state of commercial lending and the outlook for the second half of the year. Register here: https://lnkd.in/dwgFCFwu  

With the outlook hopeful for rate cuts and net interest expansion for the second half of the year, Banks conveyed more optimism in their recent 2Q2024 earnings releases. Strengthening loan pipelines, significant (albeit geographically uneven) increases in C&I bilateral balances, strengthening fee penetration and levels, and a positive regional bank outlook on loan growth appears to be fueling this optimism, despite other economic and political headwinds. Check out these trends and other important factors in this month’s AFS Pricing Charts! https://lnkd.in/eYEDSNkB To learn more, contact Douglas Skinner, MBA at dskinner@afsvision.com.

Why do employees love to work at AFS? Learn why here: https://lnkd.in/ep9WpSbY

This month’s Credit Trends in Commercial Lending webinar will feature a review of the Credit Risk Navigator portfolio’s performance for the first 6 months of the year. C&I performance has been relatively stable, but we are seeing some significant declines in performance for CRE loans. Join us on Thursday, July 25 at 1 pm ET to hear which property types are under stress. https://lnkd.in/dXf6x_we Tom Cronin

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The talk around AI has been on the upswing in 2024. In their annual trends broadcast, Commercial Banking Top Trends for 2024, Accenture talked about adopting AI and automation as one of the three key technology trends commercial lenders need to adopt in order to remain competitive and grow. AI provides commercial lenders with the power to “harness a new future” that banks have been talking about for decades—a future where you can easily access and process data and automate repetitive tasks not only for efficiency but to free up personnel to spend more time providing the “human touch” value add. According to Accenture, most larger banks have moved beyond exploration and begun adopting some generative AI components to their commercial lending process. And we’ve heard firsthand at the recent AFS Summit how AI has helped our clients to lend in a more capital efficient manner by harnessing the power that technology provides in today’s world. But there are challenges surrounding adopting AI, including replacing outdated technology to enable system integration, lack of quality data for AI use, data security concerns, and skill gaps. Share your perspective in the poll and let us know what you think about AI in commercial lending in the comments! #AFSTransforms #CommercialLending #GenerativeAI

Why do employees love to work at AFS? Learn why here: https://lnkd.in/ep9WpSbY