Community financial institutions came off of a strong year in 2019 and entered 2020 a little apprehensive. The economy was slowing, the Fed started lowering interest rates and there was a presidential election on the horizon. By the middle of the first quarter of 2020, apprehension turned into anxiety. Today…
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…
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….
Guest: Jerry Champi, President and CEO, FNCB Bank Listen on Spotify Listen on Apple Podcasts 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…
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…
Listen on Spotify Listen on Apple Podcasts 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…
Times are looking pretty good for community financial institutions. While we can always find something to complain about, we are working within an environment where Washington is beginning to ease the regulatory burden, loan quality is sound and the new tax plan makes the outlook for earnings even brighter. When…
We have just completed producing the Performance Measurement reports for our clients for the 4th quarter of 2016 and thought this would be a good time to take a look back and review the profit performance of selected banking products and bank branches. We will also take a look at…
I’m sure that most of you would say that the answer to the above question is, “sure they do,” and often this starts and stops with “top of the house” financial statements. But perhaps the real question is, are banks willing to do anything about performance? Or, do banks really…
The current and protracted low interest rate environment has played havoc on net interest margins and resulting bank performance and profitability. Banks have historically made money by borrowing short and lending long in a normal rate environment and with a normal sloping yield curve, and/or otherwise being compensated for taking…