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Do’s, Don’ts, and Maybes: Rules to Streamline Portfolio Management
Do’s, Don’ts, and Maybes: Rules to Streamline Portfolio Management If my recent aggregate conversations with investment managers are an indication, there is still a lot of seat-of-the-pants...
Munis for the many: Taxable municipal bonds have appeal for nearly all community banks.
Munis for the many: Taxable municipal bonds have appeal for nearly all community banks. Chances are, your bank’s portfolio has been affected by declining portfolio conditions, erratic cash flows,...
Business Continuity and Disaster Recovery—Let’s Cut to the Chase
Business Continuity and Disaster Recovery—Let’s Cut to the Chase Business continuity and disaster recovery are essential to an operation’s contingency plan. Following these established fundamentals...
FDIC Continues to Encourage Consumers to #GetBanked
FDIC Continues to Encourage Consumers to #GetBanked As part of its ongoing efforts to expand financial inclusion, the Federal Deposit Insurance Corporation’s (FDIC) #GetBanked campaign encourages...
Liquidity Strategies for Illiquid Community Bank Stocks
Liquidity Strategies for Illiquid Community Bank Stocks The fundamental duty of community bank directors and executive officers is to enhance shareholder value. One of the key tenets of enhancing...
Reviewing Branch Strategies for 2021 and Beyond
Between 2012 and 2019, banks eliminated approximately 2,700 branches a year. In 2020, as the global health pandemic set in, banks shuttered more than 3,500 branches.
The Great Escape: The bond market braces for the Fed’s wind-down of its balance sheet.
If bond investors (you) were running low on things to worry about for the rest of the year, I’ve got some terrific news: The $9 trillion portfolio owned by our central bank will begin to shrink....
The Rising Importance of Climate Change at Financial Institutions
Banking organizations have no shortage of factors to navigate as geopolitical tensions continue and domestic monetary policy undergoes normalization. But banks also are staring down a new strategic...
FedNow and faster digital payments
We've been working toward a faster payments future for a decade now, and we're finally seeing the fruits of our labor: the launch of FedNow.
Ten Things Directors Need to Know About Bank Marketing
As a board chair who just concluded an annual organizational meeting piggybacked on a regular monthly bank board meeting, you do not have to convince me that banks don’t need to go looking for...
Will D&I requirements change this year?
How does your bank’s diversity and inclusion (D&I) compliance program compare with the regulatory standards for D&I policies and practices?
Podcast features Banking as a Service case study
In the first episode of Communities of Innovation, an ICBA Podcast, ICBA Chief Innovation Officer Charles Potts sits down with Coastal Community Bank CEO Eric Sprink to discuss Banking as a Service.
Price pullback prospects: Availability of discount bonds causes a rethink of strategies.
Community banking is a cyclical industry, and its earnings have some correlation to market interest rates. Discounts are the story of the day, so let’s review how discount-priced bonds can be used...
New Economic Stresses on Your Credit Analysis
With the producer price index down, can we say we are past peak inflation? Not really. Getting behind the reason for the decline of the overall PPI indicates inflation will be here for quite some...
Fourth quarter rally: Some suggestions on how to wrap up 2022
The word "rally" can be used for a number of purposes and in different contexts. For instance, it could mean a long-distance auto race over varying surfaces and involving stages and checkpoints.
A New Approach to Wealth Management Marketing
By Becki DrahotaWho knew that a line of business which doesn't have mass market appeal and has a sales cycle that's measured in years, would be on a lot of financial institution's marketing plans...
Current bond yields have long-term appeal
Bonds purchased early in 2023 may dip in value at least initially if the FOMC continues to push rates higher. Generally, though, 5% yields have proven to be quite attractive over longer periods.
Will D&I requirements change this year?
How does your bank’s diversity and inclusion (D&I) compliance program compare with the regulatory standards for D&I policies and practices?
Four ways banks can cater to generational trends
As earning power among millennials and Generation Z is expected to grow, banks need to develop strategies for drawing customers from these younger cohorts while also continuing to serve their...
The Definition of a Great Board: 2021 Edition
Economic cycles, leadership transitions, market dynamics, competitive changes, governance activists, and even political shifts can impact board composition and best practices in corporate...
Fed Taper Tactics: A review of past QE wind-down strategies
Maybe the U.S. economy has improved to the point where further quantitative easing isn’t as critical to the Federal Reserve’s policy of “accommodation.” It certainly looks like the Fed has some...
Checklist: Questions to Ask When Integrating with Fintechs
As more community banks engage with fintechs to support their business plans, due diligence continues to become an even bigger piece of the puzzle. While every bank is different there are several...
Treasuries for the win! Low yield spreads send community banks back to the basics
I’ll let you in on a secret: sometimes your columnist runs out of new ideas to cover. A dearth of new products, no new regs, a stable rate environment—all of these can cause a writer to run...
Rising tide: Bonds to own for a rate hike environment
Community bankers are nothing if not predictable, and I mean that as a compliment. They are bright, have a nose for the risk/reward and a sense of duty and loyalty to their customers and staff....
Buyers of U.S. debt come in many shapes and sizes.
I think we can all agree that there has been plenty to be concerned about in the last, say, five years. Some are environmental issues, some are social and, for community bankers, plenty are economic.
The Financially Underserved: How Banks are Positioned to Make a Lasting Impact
For the financially underserved in the United States the widening wealth gap and financial hardships resulting from the pandemic are not just media headlines. They are a reality.
Why Financial Institutions Should Embrace ESG
Public and regulatory expectations regarding climate change and other environmental, social, and governance (ESG) issues are rapidly changing. The largest banks have made climate commitments...
The Reality Facing Your Real Estate Credit Portfolio
If your bank is average, your credit portfolio will contain a concentration of over 70% in real estate loans. While you might have the best intentions for underwriting real estate loans with the...
Five Things Banks can do to Prepare for Interest Rate Hikes
With inflation running hot, the Federal Reserve Board has recently begun accelerating its tapering program. In addition, the latest dot plot for the median Federal Funds rate show that short-term...
Banking in the Metaverse
According to Meta founder Mark Zuckerberg, the metaverse is where all activities will happen in a virtual reality world. To many community bankers, the idea of banking in the metaverse seems closer...
Commercial Real Estate Concerns in Your Portfolio
Commercial real estate is a hot topic right now. The perception of increasing risk within the banking system surrounding real estate loans is prevalent. This might be an area within your bank that...
Interagency Guidance for Bank Risk Management of Third-Party Relationships
On June 6, 2023, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency issued final guidance on managing...
Put these two trends on your TO DO list
Directors must understand that new technology procurement and deployment is mandatory and must be accompanied by business modeling that adjusts branch and staffing efficiencies.
Is cybersecurity insurance worth the higher premiums?
Cybersecurity should be a foundational element of any community bank, but do you really need to be insured for it—especially as premiums rise? We spoke to experts to learn more about this...
AI is a new cybersecurity risk: Learn how to help protect your organization
Artificial intelligence (AI) has come a long way, advancing from single-use tools to sophisticated systems that can analyze mountains of data. As AI continues to expand and be used in more ...
Time out for trivia: Qs and As to enlighten portfolio management
Hang with me as I pose a series of my own questions relating to community banks, which I hope you will view as more helpful than trivial. Even better: Your author supplies the answers.
The future of banking: How AI is revolutionizing operations
Artificial intelligence tools such as ChatGPT—though many are still nascent—are rapidly shifting the landscape in numerous industries, including the financial institutions space. The...
How to Deal with Brand in the Boardroom
As a bank director myself, I’m the last person who would advocate for longer meeting agendas. That said, I’m on a constant mission to be mindful that understanding bank performance requires...
Value, added: High baseline yields accompany surprisingly wide spreads
If your responsibilities include your community bank’s bond portfolio, you’ve been confounded by several elements of its performance in the last 18 months.
Remember the munis
I’m speaking of the municipal bond market. It is a maxim of community banking that the more munis a bank owns, the higher performing the portfolio will be.