Dear Friends, As the COVID-19 crisis unfolds, we are all in the dark with respect to the ultimate impact on the economy. I have seen a myriad of predictions, ranging from the avoidance of a recession altogether (hard to imagine)...
Coronavirus + CECL = Earnings Nightmare
If we do not get a miracle turnaround with respect to the coronavirus and its impact on markets, the first quarter earnings for most publicly traded community banks (SEC filers) is going to be a disaster because of CECL. In fact,...
The Coronavirus Chaos: CEOs Need to Start Prepping for the Worst-Case Scenario
The coronavirus chaos and its cascading impact on the financial markets has obliterated the existing strategic plan for every community bank virtually overnight. Bank CEOs are now forced to shift gears and dust off their...
The Hidden Cost of Ignoring the CBLR
Many community bankers do not realize their own existing capital plans may be more stringent than the community bank leverage ratio (CBLR). We all know bankers like math. So read on to find out how I can prove that simply...
AOBA 2020: The Importance of Strategic M&A in a Changing Market
Bank Director’s annual Acquire or Be Acquired (AOBA) conference was marked by positive buzz. After all, bank M&A for 2019 came in at a four-year peak, the fastest pace in history. But community bank acquisition strategies can’t...
The Hidden Cost of Ignoring the CBLR
Many community bankers do not realize their own existing capital plans may be more stringent than the community bank leverage ratio (CBLR). We all know bankers like math. So read on to find out how I can prove that simply...
The Community Bank Leverage Ratio: What if My Bank Does Nothing?
Many community banks have decided that the best course of action regarding the new community bank leverage ratio (CBLR) is the easiest: Do nothing. Keep the status quo. After all, regulators have seen their capital plans and...
Deposit Dilemma 2019 Third-Quarter Scorecard: Transaction Accounts Return, Community Banks Continue to Lag
Our on-going analysis of the deposit dilemma shows some good news for community and regional banks, based on 2019 third-quarter data. But trouble still looms.
The Business Case for a Careful Consideration of the Community Bank Leverage Ratio
We have been preaching for two months that community banks must take seriously the decision whether to opt into the Community Bank Leverage Ratio (“CBLR”). Our analysis suggests that it would be damaging to the vast majority of...