“Big Data” is more than just the trend du jour. Banks that are leveraging the power of big data (data analytics) are gaining valuable insights on their customers and are making more informed business decisions. But, as I attend industry conferences and speak with bank executives, the million dollar question I hear is: How can a bank make data analytics produce results? [Continue]
I have long been an advocate for “pruning and planting” in the credit portfolio. Now, the notion of “planting” is usually pretty familiar to the credit staff I work with around the country. Especially these days, growing the credit portfolio is on everyone’s mind. All credit institutions are working hard to plant more assets in their portfolios. [Continue]
Making sure you have the best technology solutions in place for your community bank is tough enough. Making a change in order to save your bank money or to obtain better service should be an option open to every bank. For this reason, you want to make sure you never accept a vendor contract which imposes a large “deconversion fee” on your bank. [Continue]
We often hear leaders of companies credit their success to having “good people,” but what does that mean? Whenever we ask leaders to explain, we get different responses and different perspectives. Simply put, it’s about getting the right people in the right seats. As Jim Collins described in his book, “Good to Great,” the right … Read more
The Financial Accounting Standards Board is replacing the current “incurred loss” accounting model with a “current expected credit loss” model, or CECL. The new and more complex model, slated for implementation beginning in 2020, will likely present a technological challenge for many banks. According to the American Bankers Association’s overview on the subject, this standard is “expected to have a huge impact on the costs to prepare and audit the allowance for loan and lease losses.” This standard is also expected to add expense to how investors analyze the ALLL and how banks manage their capital. [Continue]
With more than 30 years of consistent tax legislation, the federal historic tax credit program seemed to be as steadfast as the heavy timber and masonry buildings that it helps to preserve. Then, in the uncertainty of the 2017 tax reform — the House proposed eliminating historic tax credits entirely while the Senate proposed retaining partial credits — the existence of this powerful program was questioned and threatened, creating confusion and panic throughout the building reuse industry. [Continue]
Facebook is a company that provides a personal experience through technology; that makes it a good company for community banks to study. Consider the Jan. 11 announcement by Mark Zuckerberg, Facebook’s chairman and CEO, that the company is changing its newsfeed algorithm to prioritize posts from friends and family. Public content – posts from businesses, brands and media – will appear much less frequently on the social network. Zuckerberg expressed concern those posts diminish the quality of the Facebook user experience. He actually said he expects this change to result in the amount of time people spend on Facebook to decrease, yet he expects users to get a better experience. [Continue]
The development and deployment of NMLS, the Nationwide Multistate Licensing System, forever changed an industry. It created the means to validate mortgage professionals — in the eyes of both regulators and the public — as properly licensed and operating in good standing, a development that help bring much-needed stability to a troubled market. [Continue]
The day will inevitably come when your customer will visit the bank asking for a higher rate on their certificates of deposit. As one of the largest single sources of sustainable deposits, managing a CD portfolio has long created a dilemma for bankers [Continue]
The influx of capital into the market from tax reform prompts possible changes to bank merger and acquisition activity. Some bankers may use their tax savings to pursue acquisitions, while others may see the lowered tax rate as an opportunity to maximize profits. A change to the estate tax exemption likewise could shift some attitudes … Read more