Father, son navigate succession through kitchen table confabs

Community banks face never-ending challenges, from regulations to technology to recently, a global pandemic. Yet they take it all in stride and are able to offer their customers a sense of consistency, even familiarity. At Park Bank in Holmen, Wis., familiarly is embodied by suspender-wearing bank President Douglas Farmer. So when thoughts turned to transitioning bank leadership, the process required thoughtful planning and consideration so as to not disturb the bank’s deep roots with customers and businesses alike. [Continue]

Enhanced shareholder value comes through daily practices

Enhancing shareholder value is something that bank management needs in their filter daily. This mantra helps to make sure the decisions made today will help in providing value for the shareholders tomorrow (and not detracting from shareholder value). [Continue]

AI tools speed, secure M&A processes

Founded in 1968 in St. Paul, Minn., Datasite specialized in financial printing, marketing and communications for regulated industries. In 2018, the company went through a major transformation, divesting its legacy businesses to focus solely on its M&A platform. Jenna Kroll, Datasite regional sales manager, based out of Chicago, describes how tech is changing M&A. [Continue]

Navigating bank ownership succession

Understandably, bank owners tend to put off succession planning. It involves discussing discomfiting topics such as wealth and death, for one thing. It entails relinquishing control of the bank and the income stream that comes with ownership. And the planning process requires huddling with lawyers and accountants to work through irksome matters such as regulatory compliance and estate taxes. [Continue]

When bank stock financing is your answer

For banks actively looking to expand brands, footprints and balance sheets via acquisitions and organic growth, bank stock financing can be a great solution. This low-rate environment also makes it an attractive opportunity to refinance existing debt.  [Continue]

Best practices for a modern ERM program

Risk management technology in the banking industry has evolved significantly in the last decade, but the benefits have generally been catered to large institutions. A sophisticated, holistic and modern enterprise risk management program should be a staple in banks of all sizes and types as a primary decision-making tool. [Continue]

Who’s the best person to coach your winning team?

To succeed in business, one must be competitive, nimble and always on the lookout for the Next Big Thing. It’s no different in banking, especially as the pandemic increased people’s use and acceptance of digital tools. What does that mean for today’s managers? More pointedly, perhaps I should ask: What does that mean for tomorrow’s managers? [Continue]

Succession planning pain points: Death and taxes

Once a rough framework for bank succession is in place, it’s time to call in the professionals — estate lawyers and tax accountants who can advise on and execute the technical aspects of transferring bank ownership along with other assets to the next generation. A well-crafted buy-sell agreement that specifies what happens to the principal owner’s stock at retirement or death is essential. A buy-sell (or buy-out) agreement provides for the redistribution of shares to put control of the bank in the right hands when a major shareholder leaves the bank, becomes disabled or dies. [Continue]