efficiency ratio

The State of Banking

February 4, 2018 | Jeff For Banks

Where are we and where have we been? Trends are telling. In 2013, there were 6,812 FDIC-insured financial institutions. At September 30, 2017 there were 5,737, a 16% decline. There […]


For Banks, What Is Top Quartile Performance?

January 13, 2018 | Jeff For Banks

What is top quartile financial performance? I am often asked this question, and top quartile performance appears as stretch goals in many strategic plans. And I say bravo! Nobody wants […]


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 […]


Banking Economies of Scale Revisited

January 20, 2017 | Jeff For Banks

In 2011, on these pages, I wrote my most read blog post ever, titled: Does your bank achieve positive operating leverage? Even today, nearly six years later, it receives a material […]


A Financial Institution Investment Banker Had Questions. Here Are My Answers.

February 6, 2016 | Jeff For Banks

My colleagues and I are frequent speakers at industry events. At one such event, a financial institution investment banker approached my colleague and handed him a list of questions he […]


Different Paths to Superior Bank Profits

October 21, 2015 | Jeff For Banks

I frequently moderate strategic planning retreats. A recent discussion surrounding bank peer groups was very interesting. I have written and spoken about using peer groups constructively versus striving for “above […]


Will Bigger Lead to a More Efficient Bank?

July 21, 2014 | Jeff For Banks

A friendly competitor of ours, Anita Newcomb, spoke about strategic planning and economies of scale in banking at the recent Maryland Bankers Association annual convention. She led attendees through the […]