Strategic Management

The Federal Home Loan Bank System: Lender of Next-to-Last Resort

“The FDIC recently has observed instances of liquidity stress at a small number of insured banks.” So opened the Summer 2017 FDIC Supervisory Insights issue. And so went your exams. At a recent banking conference an industry consultant said, matter of factly, that in times of stress your Federal Home Loan Bank (FHLB) borrowing capacity […]


Hot Rates: Swipe Left

Retail customers are not growing at community financial institutions. According to my firm’s profitability outsourcing service, branches have fewer retail checking accounts than two years ago. Deposit gains were made through growth in average balances per account. If you’re a commercial bank, you may be fine if this trend is happening at your institution. So […]


Machias Savings Bank! Successful Transformation!

Host: Sharon Lorman, Vice President Cohosts: Jeff Marsico, Executive Vice President and Gregg Wagner, Managing Director Guest: Lawrence “Larry” Barker, CEO Machias Savings 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 […]


TMIB Lite: S.2155-Finally Some Regulatory Relief!

Host: Sharon Lorman, Vice President Cohosts: Jeff Marsico, Executive Vice President and Gregg Wagner, Managing Director   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 […]


TMIB Lite: Balancing Digital and Physical

Host: Sharon Lorman, Vice President Cohosts: Jeff Marsico, Executive Vice President and Gregg Wagner, Managing Director   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 […]


Is Your Brand Dead?

Host: Sharon Lorman, Vice President Cohosts: Jeff Marsico, Executive Vice President and Gregg Wagner, Managing Director Guest: Cassandra Giovanni, Marketing Manager at Savings Institute Bank and Trust Company     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 […]


Consumer Lending: Should Banks Do It?

We’re running out of assets.   When I first read Standards Needed for Safe, Small Installment Loans from Banks, Credit Unions by the Pew Charitable Trusts that encouraged financial institutions to get back into small ticket consumer lending, I thought “what are they nuts!”   Consumer loans for those banks that utilize my firm’s outsourced profitability […]


Will Your Bank Be Independent and Relevant in Fifteen Years?

As 2017 enters the history books, it’s hard to believe that Y2K was eighteen years ago.  We all remember the furor over how the world might come to an end.  We feared that power would be cut off, appliances wouldn’t work, trains would stop, planes wouldn’t be able to land, and computers would freeze-up. It’s […]


Are you Asset-Driven or Deposit-Driven?

Over the past sixteen years we performed an analysis to determine if stock pickers rewarded one strategy more than the other.  In two of the three times we did this, the deposit-driven strategy won out.  The last time we did it, asset-driven banks were rewarded with higher market multiples. Although surprising, we should have anticipated […]


Which Bank Will Blink on Rate?

It happened, I received an e-mail this week for a 13-month CD special. The ad insisted it would make me happy. Instead, sadness. Sad that this bank thought I wouldn’t notice they were front-running a likely Fed rate hike. Sad that the bank fell back on old tricks, getting customers to bite on an odd-lot CD […]