If you are in the military or public safety and have participated in a tactical operation center, you are likely familiar with the "Planning P." The Planning P is a national framework that helps quickly assimilate information and drive to decisions. This is exactly what is needed in any fast-moving event, such as if your bank has been involved in the production of Paycheck Protection Program (PPP) loans. It is also a great tool for any leader or manager to have, as many of these concepts are applicable to everyday business activity.
Much has been written about the merits of community banks developing banking expertise around specific verticals. We recently worked with a bank that won the banking mandate for a family-run funeral home. At first we were surprised that the term loan was 93% LTV. But when we looked at the entire underwriting package and the borrower’s financials (showing 3.2X DSCR) we recognized the importance of understanding industry specifics and how the funeral industry might be a perfect fit for many community banks.
The Merits of Specializing
Last week’s Money 20/20 conference in Las Vegas proved that it remains one of the best conferences for banks that are serious about innovation, particularly as it revolves around payments. The conference is big, the hallways are endless, everybody and their granddaughter is a speaker, the expo hall is ginormous, and the whole conference is almost unwieldy. However, despite these flaws, Money 20/20 is still a gathering that shapes our financial future. While the Libra folks were noticeably quiet and the regulators seemed less involved, there was still lots of action.
In banking, as everywhere else in life, you never get a second chance to make a first impression. The first page of a credit memo is essential for credit analysts, lenders, management, and board members. The first page is prime real estate where the average reader will spend 25% to 50% of the time reviewing the credit submission. Because the first page commands so much of the average reader’s time, it is vital to draft the first page clearly, concisely and compellingly.
The Credit Memo
Data visualization is the presentation of data in a pictorial or graphical format. It enables decision-makers to see analytics more easily, grasp difficult concepts, identify new patterns, and explain outliers.
One of the easiest ways for community banks to increase profitability is to stem commercial loans from refinancing to a competitor. Competition is intense, and community banks that develop a strategy to retain profitable clients can increase income substantially. While most banks devote resources to marketing, sourcing, and booking new business, much less emphasis is placed on maximizing profitability on the existing loan portfolio by identifying and controlling customer loss (or refinancing risk). We would like to share one specific strateg
Within the last two months, several parts of our country have endured devastating natural disasters. From Hurricane Harvey’s initial impact in Texas to the dangerous wildfires wreaking havoc in the Pacific Northwest and northern California, our communities have faced many unexpected challenges. In light of these difficult experiences, we are reminded time and again of the resolve and character of our people within these communities, and specifically within our banking community.