TKG Perspectives

Implementing Management Reporting in Community Banks

The pressure is on for Community Banks to raise their skill in the development, delivery, analysis, and utilization of information.  Think about what Enterprise Risk Management, Capital Planning, Compliance Management, Credit Oversight and/or any of the other myriad of recent initiatives have in common?  They require thoughtful, well-organized, relevant information that enables management to: Assess […]


The Impact of Low Interest Rates on Net Interest Margin and Performance

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 on credit and/or interest rate […]


Business Checking: Not Profitable?

Does it make sense for business bankers to seek core deposits from their customers?  This question was posed to me by a senior lender at a Northeast bank that had a declining loan to deposit ratio which was putting pressure on the bank’s net interest margin.  This story is all too common in the current […]


The Current State of Banking, Relevance and Technology

The past five years have been the most trying times in most current bankers’ careers. The economy continues to struggle through a long downturn.  Interest rates remain at historical lows, depressing margins and crushing the profitability of the liability side of the balance sheet, as well as branch networks.  Credit quality remains a concern, and […]


What’s the “Process” of “Process Management”?

One of the adages that became popular over the last decade is “Manage the process; Measure the results”.  Executives have found that, like most such “easy to roll off the tongue” clichés, the reality of “managing the process” is much more difficult than it sounds.  In fact, managing the results, at least from the executive […]


Strategic Management of the IT Function

Most bankers would intuitively agree that information technology (IT) is a strategic function in the banking industry.  It is increasingly important to interact with customers over the web and via mobile applications.  The amount of technology needed to support even traditional banking functions like branching and lending is growing continuously.  The chart to the right […]


What Does Reviewing Strategic Alternatives Mean to You?

I recently read the following headline: “Next step for ABC Bancorp could be ‘strategic alternatives’.”  It could have read, “ABC Bancorp is out of options and should sell.”  [The name of the bank was changed to protect their identity.]  After reading the article, that message came through loud and clear. Since then, I asked a […]


Hard to Believe it’s Been 10 Years!

On November 1, 2011, The Kafafian Group (“TKG”) celebrated its 10 Year Anniversary as an independent company.  But actually, our history goes back to the early 1980’s. TKG HISTORY The seeds of TKG were planted at First National State Bank of New Jersey (“FNSB”) in the late 1970’s.  FNSB was eventually merged into First Fidelity…First […]


Risk Oversight, Capital and Imperatives for a More Engaged Board

The economic smack-down we have weathered since 2008 has emphasized the importance of the Board of Directors’ responsibility for risk oversight.  We have seen an over-reaction to the excesses that precipitated this recession through the passage of Dodd-Frank, the implementation of a number of regulatory “reforms”, and the press reports stressing how banks have gone […]


What Kind of Board of Directors Does Your Bank Have?

As a result of the financial crisis and subsequent recession, Board oversight has become a more significant issue to both regulators and shareholders.  Proper corporate governance and the role of the Board of Directors is an often debated subject.  Regulators are increasingly asking for Board and management studies to determine if the “right” people are […]