economies of scale

Why SunTrust and BB&T? Why?

I know on the investor conference call, Kelly King of BB&T and Bill Rogers of SunTrust spoke to why. But I may not have been listening well. I suppose much […]


The Real Reason for Bank Scale: Trading Multiples

“Get big or get out.” “You must be twice the size that you are to succeed.” These are bromides that some industry talking heads might be telling you. I hear […]


Schmidlap Bank, A Division of Community Bank

November 4, 2017 | Jeff For Banks

“We want to keep our charter because the OCC is a more distinguished regulator.” Seriously, that is what a bank chairman told me when arguing to keep his bank’s charter […]


Bankers Bank: The Next Generation

March 18, 2017 | Jeff For Banks

Correspondent or bankers’ bank is one of those monikers that the meaning is in the eye of the beholder. Like private banking. Or superior customer service. Whenever someone says it, […]


Capacity Planning in Banks: Three Measurement Ideas

February 18, 2017 | Jeff For Banks

Joe Lender’s loan portfolio grew $5 million last year. The Trust Department’s revenues grew nine percent. The Market Street branch’s core deposits grew to 64% of total deposits. All objective […]


Bank Deals: How Are They Working Out for You?

March 16, 2015 | Jeff For Banks

Bank mergers are picking up steam. Technological change, regulation, and scale are cited most often by sellers. Take a premium now, rather than drift slowly into the abyss of irrelevance. […]


Does your bank achieve positive operating leverage?

May 1, 2011 | Jeff For Banks

When a significant portion of your cost structure is fixed, then growing revenues should generate positive operating leverage… the cost of generating the next $100 of revenue should be less […]