Case Study: State Bank Financial boosts loan yield and NIM with ProfitStars Customer Profitability & Pricing

State Bank Financial Improves Loan Yield with ProfitStars® Customer Profitability & Pricing

State Bank Financial, a community bank in Wisconsin, faced a declining trend in loan yields and net interest margin due to intense competition and a prolonged low interest rate environment. To address this, the bank sought to build a disciplined pricing culture and turned to ProfitStars, implementing their Customer Profitability & Pricing module to gain a holistic view of customer relationships for better decision-making.

The ProfitStars solution provided lenders with accurate customer profitability analytics, empowering them to make informed pricing decisions based on the total value of a relationship rather than just a single loan. As a result, State Bank Financial reversed its declining loan yields, improved its net interest margin, and saw significant increases in key metrics like return on assets and return on equity from 2016 to 2018.

State Bank Financia

Chris Weeks

Chief Financial Officer