Jeff For Banks

Bankers: 7 Questions to Determine If You Have a Strategic CFO

Ajit Kambil of the consulting firm Deloitte, in one of their Perspectives articles, asked seven essential questions to determine if the reader was or has a strategic CFO. I thought it provided great insights for Jeff4Banks readers, and I’ve accompanied the description of the seven questions with how it pertains to banking.   Seven Essential Questions for […]


Bank Customers’ Lifetime Value

*This article was originally published on jeff4banks.com on July 3, 2021*   Who are your target customers? Answer: XYZ Why are they your target customers? Answer: They are our most profitable customers. May I see your profitability reports that show this? Answer: *crickets* Is “most profitable” the right answer? Aside from my skepticism that the […]


Banking’s Execution Imperative

**This article originally appeared in Jeff4Banks.com on June 19, 2021.**   Announcer: Spain had 85% possession against Sweden and did not score. The strategy drawn up by the Spanish side played out… mostly. What Spain didn’t do is execute in their attacking third to put one in the net. It doesn’t matter if you had […]


Excess Liquidity, Low Rates, and Branching. My Answers to Jeff Davis’ Questions

**This video blog was originally posted on Jeff4Banks.com on May 13, 2021.** S&P Global Market Intelligence Principal Analyst Nathan Stovall recently interviewed Mercer Capital’s Jeff Davis on the Street Talk podcast regarding the thorny banking issues of the liquidity glut, persistently (or perpetually?) low rates, and the branch costs millstone. I highlight Jeff’s comments, and offer some solutions in this video […]


Squared Away-How It Happened

**This article was originally posted on Jeff4Banks.com on April 29, 2021.** March 11, 2020: The World Health Organization declared a global pandemic. I attended the Pennsylvania Bankers’ Association Women in Banking Conference the next day. And I wouldn’t attend another for a year and three months. I will be attending the Financial Managers Society FMS Forum this […]


Unintended Consequences of Aggressive Regulation

“In case you’re looking for some light reading this weekend, FRB-Philadelphia working paper 21-08, Does CFPB Oversight Crimp Credit?” ~ Robert Morro (@bmorro44)   So went a tweet from one of my Twitter connections. So I listened to him, and dialed up the FRB-Philadelphia WP 21-08. Forty three pages later, with formulas like:   CFPBLoanSharelt = […]


Fintech Buys Bank. Keeps Stratospheric Valuation.

Imagine a fintech, with off-the-chart valuations such as 2.6x book value and 51x EBITDA, buying a bank. For 1.85x book. In today’s M&A valuations, 1.85x is pretty lofty. Especially for a community bank. But you don’t have to imagine it. Because that was what LendingClub paid for Radius Bank. Since the deal closed, LendingClub has […]


CFPB: Are They Coming to Get You?

A bank trade association CEO asked me a couple of questions while he was researching an op-ed piece. The edited Q&A is below. Q. Shouldn’t the CFPB work to address the impediments to starting a bank in LMI markets rather than punish community banks who scrambled to serve their customers when the economy shut down? […]


Twitter Reacts to M&T / Peoples United Bank Deal

The headlines for subject deal, which dealmakers hope beyond all hope starts a robust bank M&A frenzy, were like the following: (you can click on articles and tweets to enlarge)     Conversely, here are what some Twitter users thought of the deal, which starts with a factual tweet from yours truly. Keep in mind […]


Is Your Contemplated Bank Merger Anti-Competitive

Yesterday at the ABA’s virtual Conference for Community Bankers (CCB), Federal Reserve Governor Michelle Bowman gave a speech, My Perspective on Bank Regulation and Supervision. In that speech, she briefly commented on the FRB’s review of merger applications from an anti-trust standpoint. She said: “Technological developments and financial market evolution are quickly escalating competition in the […]