The Hidden Value of Long-Term, Fixed-Rate Loans

With a flat and low yield curve, borrowers’ demand for long-term, fixed-rate loans is high. Borrowers are asking banks to extend loan portfolio duration at an inopportune time in the interest rate cycle – when the possibility for rising interest rates is much higher than the possibility for decreasing rates.

Bankers’ Bank of Kansas and Pacific Coast Bankers’ Bank have leveraged the combined strength of the bankers’ bank community to provide banks between $125M and $10B in assets the opportunity to provide their customers with a long-term, fixed-rate product that allows banks to receive a floating rate loan with the borrower over the full term of the loan. Banks have convenient access to multiple loan pricing scenarios via computer or mobile phone.

This loan solution is easy to integrate:

  1. No additional regulatory compliance and reporting for the lender or borrower.
  2. No regulatory capital to be held.
  3. No collateral posting.
  4. No additional accounting.
  5. Marketing materials for borrower education.

Offering numerous lending solutions help community banks defend current loan portfolios against competition, and win new business. Adding a long-term, fixed-rate loan product to your portfolio at no cost to your bank means never worrying about valuable commercial customers going to the bank down the street. Your bank can manage interest rate and related credit risk while generating additional fee income. Fixed-rate loans can be used for a variety of asset classes with no closing costs to the bank or the borrower.

Contact Tim Binns at or 800.999.5725 for more information or to get started immediately.