Non-performing assets, otherwise known and feared as loans that no longer generate income, are baked into every bank’s cake. The best efforts to keep the ratio of NPAs to gross loans as low as possible can meet many outside forces, recession being foremost. In the 10 years since the last recession, has technology been developed to help community banks manage NPAs to keep their ratio as low as possible in good times and bad? [Continue]
We lost a giant in the business world when Herb Kelleher died on Jan. 3 at the age of 87. Long before innovation and disruption were industry buzzwords, Kelleher was revolutionizing air travel with the late-1960s launch of Southwest Airlines. He opened up air travel to penny-wise consumers who previously had to rely on ground transportation for long distance trips. We can learn a few things from Kelleher. [Continue]
The Centers for Disease Control and Prevention conducted a study in 2016 on the suicide rate amongst farmers and discovered rates significantly higher than with any other occupational group. This led to a flurry of reporting about trouble in the heartland, including our own. The real picture is more nuanced, but no less challenging. [Continue]
The number of FDIC-insured institutions in the United States was 5,670 as of March 31, 2018, down from 8,534 on Dec. 31, 2007. Over the past five years, 1,292 institutions have been absorbed by mergers, while the number of failed banks has declined significantly. The trend will continue through 2018 and 2019 based on multiple factors. [Continue]
At any given time, one-fifth of banking customers are researching where to buy their next product or service, and 42 percent of those who left one institution did so because they received an offer or took notice of an advertisement from a different financial institution. [Continue]
Is it enough to object to the current method by which banks’ CRA activities are audited and evaluated, without first offering a viable alternative based in objective industry knowledge, market demographics, and needs of each local community? [Continue]
We have all been there: Overwhelmed with projects, direct reports and responsibilities. We look to our highest performers to step in or step up to take on managerial duties to relieve our work loads. We ask them if they are ready and willing to manage a small group of teammates and let them know how confident we are that they are going to knock it out of the park. [Continue]
Whether criminals are attempting to trick their victim into providing information (personal, account, internal procedures), downloading malware, conducting fraudulent transactions, or allowing physical or cyber access into the bank, social engineering is often the foundation that leads to fraud and other security concerns. [Continue]
There is plenty of evidence that community banks, even those that specifically seek to serve underrepresented groups, find a challenge in maintaining a pipeline of CRA eligible loan activities. [Continue]
Bank Midwest adopted the Fierce program for its staff six years ago after Mary Kay Bates, president and CEO, was certified in the program. Bates, BankBeat’s 2019 Banker of the Year, views employee-customer communications as critical to the future success of the bank because people are less likely to interact face-to-face. [Continue]