TKG Perspectives

Interview with Glenn E. Moyer, Former Pennsylvania Secretary of Banking and Securities

Glenn E. Moyer recently joined TKG and three other complementary community bank consultancies as Senior Advisor after spending the previous four years as the Commonwealth of Pennsylvania’s Secretary of Banking and Securities. Prior to his tenure in Harrisburg, Glenn was a lifelong banker and most recently served as CEO of National Penn Bank and its […]

Do Banks Really Care About Their Financial Performance?

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 want to take the time […]

What Can Banks Learn from Mutual Mergers?

Since 2010, investment bankers have been predicting that the pace of merger activity in the banking industry would significantly increase and accelerate.  While these predictions may have been wishful thinking, we currently see signs that many banks are, at a minimum, talking and considering their strategic alternatives. As a result, many of these predictions are […]

Things to Think About in 2015

The Kafafian Group would like to wish all of our clients, business associates, and friends a Happy Holiday season and much future success in the coming New Year.  We are grateful for your business and the relationships we have mutually developed over so many years. It’s hard to believe that the beginning of the financial […]

Bankers: What is Your “Well-Capitalized?”

TKG has had the distinct impression that the bank regulatory community is not pleased with certain limitations and exemptions from Section 171 of the Dodd-Frank Act, the section that covers leverage and risk-based capital requirements. Why do we think this? In a Consent Order dated August 20, 2014, issued by the FDIC and the Alabama […]

Bankers: Let’s Be Necessary

Why did Willie Sutton, famous bank robber from the 1920’s to 1950’s, rob banks?  “Because that’s where the money is.”  By the way, Sutton denied the quote, but we can’t deny it’s true.  Financial Institutions (“FI”) remain the place to go for money, but not for long. Why do FIs opt for the sideline in […]

The Next Three Significant Risk Factors

The past five years have been filled with significant risk factors that have affected virtually every financial institution of all types, size, structure, and geography.  We are well aware of the eight OCC risk categories: credit, interest rate, liquidity, price, strategic, reputation, IT/operational, and compliance.   They have all been drilled into our heads by regulators.  […]

Lessons from Management Reviews

Over the past three years, TKG has been engaged by a significant number of banks to provide an assessment of the capabilities of management to operate the bank in a safe and sound manner.  Most, but not all, of these assessments have been required by regulatory requirements, expressed either in formal enforcement actions or through […]

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 […]