Provident teams with AMG to create "Swap Desk" for Community Banks

Published November 29, 2015  /  In Community Banks and interest rate swaps

Asset Management Group, an affilate of Country Club Bank of Kansas, is pleased to announce a new strategic alliance with derivatives partner Provident Risk Management.  The key objective of AMG's new derivatives strategy will be to expand the range of products offered to clients, enhance reporting and hedge accounting and to sharpen pricing and credit terms.  Provident Risk Management is a derivatives advisory firm based in Charlotte NC and has been meeting the swap needs of community banks since 2009.  Provident brings a range of derivatives pricing and reporting systems as well as more than 30 years of experience in swap structuring, risk management and reporting.
AMG's Flex Loan program will remain a key product for community bank lenders, particularly as 2016 signals the end of the Fed's zero rate policy.  But, Provident will expand the loan hedging platform with PRM Swap Desk, a front to back customer swap platform.  The Swap Desk program provides a turnkey solution to allow community banks to offer swaps to commercial borrowers.  Provident will work with bankers to present and address customer questions on swaps, will provide streamlined ISDA documentation, manage swap execution to ensure clients get the best rates, and provide comprehensive reporting over the life of each swap.  With the PRM Swap Desk community bankers can provide a valuable service to their borrowers and generate fees in return.  A typical $50 million portfolio of loan swaps can generate fee income of $500,000.  All fees are paid by Wall Street swap dealers; all fee income is recognized upfront.

Call PRM (704 243-1439) or AMG (800-226-1923) to schedule a review of swap strategies for community banks and learn how your bank can benefit.