Bankers must consider many factors during M&As
Community bankers need to consider a number of factors when embarking on M&As, according to CliftonLarsenAllen CPAs Joshua Juergensen and David Heneke. [Continue]
Commodity prices are good now but what about 2022?
Commodity prices — from corn to dairy — look favorable, but as farmers turn their attention to what next year holds, more than a few ag bankers see storm clouds ahead. Input costs are rising, and pandemic-era government programs are drawing to a close. Tight labor markets and other region challenges also complicate the outlook on 2022. [Continue]
Building a strategic roadmap
A lot of banks take time during October for strategic planning. If I were a banker, these are some of the things I would put on my strategic planning meeting agenda. Should we start a virtual bank? A long-established bank might not have much opportunity to grow its business footprint, so rather than defining the market by geography, maybe we define it by affinity and reach out to new customers digitally. [Continue]
Outlook brightens for farmers, less so for ag lenders
As they near the end of 2021, many community ag bankers say their farm clients are feeling optimistic. Commodity prices — from corn to dairy — look favorable. Low interest rates are driving the price of farmland in some areas, but expansion is an obstacle in others. Some of the sunnier projections for the coming year are partially offset by higher costs for feed, fertilizer and fuel. Farmers are hedging by locking in fertilizer prices early, and doing so with help from banks. [Continue]
Gain customers by greening up some bank products
A church in my neighborhood is holding an electric vehicle expo this month. It’s a hands-on event with test drive opportunities and a chance to visit with EV owners. The expo sign caught my eye because I’ve been seeking new ways to reduce my own carbon footprint beyond using LED light bulbs, recycling and composting, and not using the air conditioner at home except for when the dewpoint creeps into the high 60s. As it turns out, I’m not alone. [Continue]
A hat tip to the family-owned bank
While it is difficult to nail down exact numbers, it is safe to say that the number of banks owned by one or two families is declining. The family-owned bank is a venerable niche of the community bank arena. Family-owned institutions experience pressures other banks avoid. As the family group grows with generations, fewer of the shareholders retain direct bank involvement. More of the shareholders in these families see their shares as solely an investment. As they weigh the value of their shares against other investment options, they may press the other members of the family to sell. [Continue]
Banking tools help college-bound gain financial independence
As high school students prepare for college, they find themselves in need of transitional financial products as they become independent adults. [Continue]
What about post-merger tech?
Equally important to the merger of the bank’s assets and people is the merger of technology. And this is an aspect that is often treated as an afterthought. Some banks come with teams and a clear vision for the merged technology. Some have an idea about where to begin but need guidance to ensure everything runs smoothly. And some contact their technology vendors about three weeks before the merger is scheduled to take place to say, “By the way, we’re merging.” (Hint: Don’t take this approach.) [Continue]
Resilience is that invaluable intangible
Did you happen to catch Charles Woodson’s Pro Football Hall of Fame induction speech last month? The inductee class of 2021 included some big names such as Drew Pearson and Peyton Manning. But it was Woodson — the Heisman Trophy winning defensive back who began and ended his career with the Raiders but who also wore the green-and-gold for the Packers for seven years — who carried the ceremony with an impassioned speech focusing on family and overcoming adversity. [Continue]
Bankers may find project to identify racist deeds intriguing
U.S. Sen. Tina Smith (D-Minn.) is seeking support for a bill she wrote which would provide grant money to organizations that help identify property deeds containing racist covenants. Some deeds written in the early 20th century contained provisions prohibiting the sale of land to Black people and other minorities. More research needs to be done to determine the impact of decades-old racist covenants on today’s patterns of homeownership. Perhaps Sen. Smith’s legislation could result in additional understanding. [Continue]