Performance Measurement

Banking’s Top 5 Total Return to Shareholders: 2020 Edition

For the past nine years I searched for the Top 5 financial institutions in five-year total return to shareholders because I support long-term strategic decision making that may not benefit next quarter’s or even next year’s earnings. And I am weary of the persistent “get big or get out” mentality of many industry pundits. If […]


Could Net Interest Margin Woes Spell Opportunity?

When an in-person strategic planning retreat has to be hastily switched to a virtual one, sacrifices must be made. And in this case, I simply didn’t have the time to review the long-term implications of the Fed’s guidance that they were not inclined to raise the Fed Funds Rate until inflation hit or passed 2%. […]


Are Your Management Reports Just An Illusion?

Many financial institutions produce management reports using data only from their general ledger systems. An example is producing branch profitability reports limited to data from the branch’s cost center. Limiting the information within your management reports to only general ledger data may be producing reports that are just an ILLUSION! As noted by this famous painting […]


Two Ideas to Lower Operating Cost Per Account

Last week I wrote a TKG Perspective’s article on Bank Profitability in 2019. I congratulated community financial institutions for delivering a positive trend in business checking account operating cost per account. The challenge is, aside from residential mortgages, all other product categories showed negative trends in operating cost per account. In the below video blog, […]


Banking Profitability Roundup

End of year brings banking industry summaries. Some are very good, such as this one written by Jeff Davis of Mercer Capital (Mercer). In his summary, you’ll find charts and trends for net interest margin (NIM), pre-tax ROA, and fee income for whole institutions, and broken out by size cohorts. But that is as deep […]


How To Do Product Management Without Product Profitability

Quick answer: I don’t know. I posited this question on Twitter because product management has come up during various financial institution strategic planning sessions. I also don’t know of many new banking products since I’ve been in the business. See my post on that subject here from nearly two years ago. But product management is […]


Is It Customer Loyalty That You Seek?

Why are customers loyal to your financial institution? I hear many reasons in strategic planning sessions: 1. Our people. They are loyal to their lender, branch manager, etc. 2. Our service. We have the best service! 3. Our products. We have a really cool checking product. 4. Our location. We’re right in town. Aside from […]


Bankers: Is It Worth Buying Checking Accounts

At least somebody noticed. Noticed that I might be a valuable checking account customer. Aside from credit cards, I don’t get much attention from bankers or financial advisors. Maybe the “do not call” list is more effective than I thought? So when I opened my mailbox and received the bribe, I was interested. Interested to […]


Right-Sizing Your Branch Network? How One Community Banker Made the Tough Decisions

April 23, 2019 | Performance Measurement, Podcast

Guest: Jerry Champi, President and CEO, FNCB Bank 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 […]


How Is That New Year Self-Improvement Program Going?

The start of each New Year is a good time for new beginnings.  That’s when many of us start self-improvement programs.  How is that self-improvement program going so far this year?  We’re already a quarter through 2019, and have you stuck with your program? While we may have gained a few pounds during the holidays, […]