Loan Prepayment Peer Data
Community banks are beginning to navigate the requirements of the Current Expected Credit Loss (CECL) model. Because of that, Asset/Liability model prepayment assumptions have taken on new importance as they are now factored into CECL.
These prepayment assumption peer statistics were developed using data collected from A/L BENCHMARKS models for over 100 domestic community banks. The prepayment assumption is the portfolio's Conditional Prepayment Rate (CPR) estimate either provided by the bank, or calculated by Olson Research using the bank's detail loan data.
CPR is expressed as an annual percentage rate. If you are comparing your model's loan prepayment assumptions and need to convert from SMM, or PSA you can use this tool.
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Loan category descriptions (click to display)
Commercial & Industrial Loans (C&I)
FFIEC Call Report RC-C Line 4
Loans to sole proprietorships, partnerships, corporations, and other business enterprises, whether secured (not by real estate) or unsecured, single-payment or installment.
Agricultural Loans (Ag)
FFIEC Call Report RC-C Line 3
Loans for the purpose of financing agricultural production include such loans whether secured (not by real estate) or unsecured and whether made to farm and ranch owners and operators (including tenants) or to nonfarmers.
FFIEC Call Report RC-C Lines 1.a.1. & 1.a.2
Loans secured by real estate made to finance (a) land development preparatory to erecting new structures or (b)the on-site construction of industrial, commercial, residential, or farm buildings.
Residential Estate Loans (Mortgages)
FFIEC Call Report RC-C Lines 1.c.2.a & 1.c.2.b.
Closed-end loans (first mortgages and junior liens) secured by 1-to-4 family residential properties as evidenced by mortgages (FHA, FmHA, VA, or conventional.)
Home Equity Loans
FFIEC Call Report RC-C Lines 1.c.1 & 1.c.2
Loans that are outstanding under revolving, open-end lines of credit secured by 1-to-4 family residential properties.
Multifamily Real Estate Loans
FFIEC Call Report RC-C Line 1.d.
Loans for nonfarm properties with 5 or more dwelling units in structures (including apartment buildings and apartment hotels) used primarily to accommodate households on a more or less permanent basis.
FFIEC Call Report RC-C Lines 1.b.
Loans secured by farmland and improvements thereon, as evidenced by mortgages or other liens. Farmland includes all land known to be used or usable for agricultural purposes, such as crop and livestock production.
Commercial Real Estate Loans (CRE)
FFIEC Call Report RC-C Lines 1.e.1. & 1.e.2
Loans secured by real estate as evidenced by mortgages or other liens on nonfarm nonresidential properties, including business and industrial properties, hotels, motels, churches, hospitals, and similar properties.
FFIEC Call Report RC-C Lines 6.b., 6.c., & 6.d.
Loans and all credit (not secured by real estate) extended to individuals for household, family, and other personal expenditures - credit card loans are not included.