Insights

Guest Post: 4th Quarter Economic Update by Dorothy Jaworski

January 13, 2012 | Uncategorized

Before looking ahead to 2012, I can’t resist the traditional temptation to look back at the past year. The markets in 2011 were dominated by earthquakes and the tsunami in Japan, spikes in gas and oil prices, historic Federal Reserve actions where they “promised” to keep rates at their current low levels until mid-2013 and […]


Customer Service… blah, blah, blah

January 7, 2012 | Uncategorized

My family recently shopped around our homeowners and auto insurance to ensure we were getting a fair shake. We used to use an insurance agent for life, auto, and homeowners. I place value in having an agent because they have access to a number of insurance companies (if an independent agent) and should have our […]


In Pursuit of Return on Equity

January 4, 2012 | Uncategorized

When performing ratio analysis to determine a company’s profitability we should remember that a ratio has at least two data points: a numerator and a denominator. It doesn’t matter if it is banking, retailing, or widget making. In banking, the standard profitability ratio has long been return on equity (ROE). That is… until the financial […]


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 […]


Are the Regulators Getting You Down?

I’ve often found these past two years extremely difficult.  As consultants, we should try not to personalize engagements.  But I can’t change the internal wiring.  Last year, a client failed, and many more received regulatory orders. Memorandums of Understanding (“MOU”), Formal Agreements (“FA”), and Cease and Desist Orders (“C&D”) have been on top of our […]


A Practical Approach to Reducing Operating Expenses

In the present economic environment, revenue growth is becoming much more difficult to attain, net interest margins are under pressure, and compliance costs are on the rise.  In these challenging times, it is imperative that community financial institutions control operating expenses without sacrificing service levels.  Reducing costs can have an immediate impact on the bottom-line, […]


Things That Confound Me!

On an annualized basis, TKG performs somewhere between 35 and 40 strategic plans.  Most of these engagements are between the months of June and December.  However, this year we completed almost a year’s worth of plans by June 30th.  You may ask, WHY?  The answer is the result of regulatory actions and formal agreements which […]


Keeping things in Perspective

The last few years have certainly been a difficult time for the financial industry, as well as the United States and world economies.  The sub-prime fiasco has been compared to the great depression and the final chapter of this story is yet to be written. History will eventually provide us with a rear-view mirror someday, […]