Many banks and credit unions had great loan production in 2022 only to find that their rates did not keep pace with the Fed's rate increases. To add insult to injury, many of the loans are from single service households with no additional services.

The top graph shows that interest income did not keep up with FTP expense for this sample customer. In the second graph, we see that net interest margin was below 0% and significantly below CECL coverage. This is the data needed to improve net interest margin.

Quest Analytics provides a state-of-the-art community banking CRM solution with a customer profitability module. The profitability module called IQProfitability includes Funds Transfer Pricing combined with customer segmentation. With FTP, new loans will be priced profitably. The banking CRM identifies hidden opportunities and serves them up to your bankers each morning. Cross-selling your underwater loans with additional products and services can offset the loan loss to increase your overall profitability.

To find out how your 2022 loan and deposit production ended up, Quest Analytics can perform a complimentary Funds Transfer Pricing analysis of your loan and deposit portfolio(s). All we need is a file with product codes, open dates, average or ending balance, and current interest rate. See below for an example of what you will send us. We will perform the first analysis on a complimentary basis.

Once complete, we will review the analysis with you, help you determine which products need the most attention, and help you develop a growth strategy.

Our right-sized CRM solution is designed to help grow loan and deposit relationships.

• IQLeads data mines your core banking data to service up relevant sales, service and retention leads to your associates at the right time. It is automated, consistent and effective when combined with our integrated sales and service relationship building training. Using IQLeads, we can identify hidden sales opportunities and provide valid reasons to have a customer discussion. By simply cross-selling a new checking or interest bearing account to single service loan customers, you could offset these losses by expanding the relationship.

• IQProspects customizable workflow automates the process and gets loans completed quickly and accurately. Quest Analytics tracks the journey every step of the way from opportunity stage to underwriting, thru closing.