How the Pandemic has Fundamentally Changed Community Banking
Podcast Show Notes:
Our This Month In Banking (TMIB) podcast features discussion with colleagues and other industry thought leaders on interesting banking news that happened this month. TMIB will be available on the last Wednesday of every month here, and on Apple and Droid podcast apps for your listening enjoyment. Join us on your commute, at your desk or at home.
Topic: How the Pandemic has Fundamentally Changed Community Banking
Bob Kafafian, President and CEO of The Kafafian Group, and Rich Trauger, Managing Director of The Kafafian Group, share their insights on how the Covid-19 pandemic has fundamentally changed community banking.
2019 was a very good year for community banks! Net interest margins had stabilized, credit quality was excellent, and capital levels were strong. Then came Covid-19! The business environment has fundamentally changed due to the pandemic in relation to four major themes: employees, customers, partnerships, and data analytics. Bob and Rich reflect on the challenges and opportunities related to these themes, the work from home phenomenon, credit quality, mergers and acquisitions and valuations. Listen and enjoy!
About The Kafafian Group (“TKG”)
TKG is a finance, strategy, and operations consulting firm that specializes in Performance Measurement, Profitability Outsourcing, Strategic and Business Planning, Regulatory Assistance, Profit/Process Improvement, and Investment Banking Advisory Services for the Financial Industry. Over the past 30 years, we have worked with over 400 financial institutions in over 40 states ranging in asset size from $16 million to over $100 billion. We’re passionate about helping community financial institutions become more efficiency and more profitable. We help you solve challenges and take advantage of opportunities in a rapidly changing industry and economic environment.
Robert (“Bob”) E. Kafafian
Bob is founder, President & CEO of The Kafafian Group. He oversees and works in all of our lines of business and areas of expertise.
Over the past 40 years, he has consulted with and advised over 500 financial institutions in over 40 states. He was instrumental in the design and development of a nationally recognized bank profitability software product and has been recognized as a leader in the performance measurement area of the banking industry. He is a frequent speaker and writer on a variety of banking subjects and often quoted in banking periodicals. He teaches at numerous state, regional, and national banking schools.
His previous positions include: President-Consulting Services and Managing Director, Tucker Anthony Capital Markets (now RBC Capital Markets); President & CEO, The Q Group, Inc. (merged with Hopper Soliday & Co./Tucker Anthony Capital Markets); Vice President, Bradford Trust Company (now Bank of New York Mellon Corporation); Director of Budgeting and Profit Planning, United Jersey Bank (now Bank of America Corporation); Controller, First National State Bancorporation (now Wells Fargo & Company).
Bob received his B.A. degree in Business/Economics from Moravian College and his M.B.A. in Finance from Fairleigh Dickinson University.
He is Past President of the Board of Directors of the Association for Management Information in Financial Services (AMIfs), a member of the Financial Managers Society Strategic Issues Council, and is an active Board member of other corporations, professional, community and academic organizations. He has written a book, published by AMIfs entitled, KEYS TO COMMUNITY BANK SUCCESS – Utilizing Management Information to Make Informed Decisions.
Bob was awarded AMIfs’ Lifetime Achievement award, is a Certified Profitability Professional (CPP), is a former Moravian College Greyhound football player, was named a Moravian College Star and awarded the Accounting Club Pinnacle Award.
Richard B. Trauger, Jr.
Rich has been affiliated with TKG in various capacities since inception and is also a shareholder. He participates in all facets of our service lines and is primarily responsible for strategic planning, customer statistical analysis and visualization, capital planning and stress testing, financial analytics and modeling, and is a member of our financial advisory services team.
He has led over 100 client engagements for financial services industry firms and has extensive experience with boards of directors and executive management teams. During his career Rich has successfully completed over three dozen merger and acquisition, capital market, and financial advisory assignments for financial institutions, with an aggregate transaction value of approximately $2.6 billion.
During his 30-year financial services industry career, Rich has developed his skill set, first as a financial analyst with Dauphin Deposit Corporation (now M&T Bank Corporation) and then as an investment banker with Tucker Anthony Sutro Capital Markets (now RBC Capital Markets).
In addition to client facing assignments, Rich has been a subject matter expert for SNL Financial, L.C. (now S&P Global Market Intelligence) on the topic of advanced bank valuation. He has also served as an expert witness for matters involving financial services industry firms. He is a faculty member at the American Bankers Association Stonier Graduate School of Banking, the Pennsylvania Bankers Association School of Banking and Advanced School of Banking and is an occasional speaker at industry events.
Rich holds an undergraduate degree from Penn State University (Harrisburg) and the license of Certified Public Accountant in the Commonwealth of Pennsylvania, along with the following other professional designations: Chartered Global Management Accountant (CGMA®), Certified Valuation Analyst (CVA®), CERTIFIED FINANCIAL PLANNERTM (CFP®), and Chartered Financial Consultant (ChFC®).
He continues to pursue additional levels of education and is eligible to sit for the Level III exam as administered by the CFA Institute. He is a practitioner member of the National Association of Certified Valuators and Analysts (NACVA), and a member of the CFA Institute, the CFA Society of Philadelphia, the AICPA and the PICPA.
This podcast relates to The Kafafian Group’s Strategic Management service. Click here for more information.
Watch for episode 58 of This Month in Banking to be released on Wednesday, October 28, 2020 and a new episode on the last Wednesday of every month.
Thank you for listening!
The Kafafian Group