Reimagining rather than closing branches

As branch traffic continues its decline and branch costs march upwards, community bank executives are often tempted to sell or close branches. Bad idea. For the first few years, the numbers look pretty, since expenses for these now-defunct branches get wiped off the books. While deposits may roll off, they’ll do so slowly, so that the damage Read More

By |2020-05-27T18:00:18-05:00September 14th, 2015|Comments Off on Reimagining rather than closing branches

Unintended consequences of fed capital analysis

Everyone who works in financial services has heard something about the Comprehensive Capital Analysis and Review (CCAR). Whether you work on it directly, indirectly, or not at all, you probably have some idea of where your institution sits on the Federal Reserve’s most comprehensive assessment of financial stability. CCAR influences stock prices, impacts bonuses and governs operating Read More

By |2020-05-27T18:00:30-05:00August 12th, 2015|Comments Off on Unintended consequences of fed capital analysis

Prioritizing vendor management compliance

If you’ve felt the list of regulations impacting vendor management grow longer every quarter, you may be wondering what you can do to stay current and keep the examiners at bay. Horror stories abound of examinations of vendor oversight taking longer and of examiners asking for increasingly complex documentation and evidence of your vendor programs. The problem Read More

By |2020-05-27T18:00:33-05:00June 9th, 2015|Comments Off on Prioritizing vendor management compliance

Mortgage opportunity for community banks

An increasing number of community bankers are asking themselves whether its worth the hassle – and the risk – to originate mortgages, particularly after the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the subsequent promulgation of the qualified mortgage and ability-to-repay rules. These regulations, if not followed correctly, could increase banks’ liability. Read More

By |2020-05-27T18:00:33-05:00May 19th, 2015|Comments Off on Mortgage opportunity for community banks

Stressing out stress testing for community banks

Following the 2008 financial crisis, the Basel Committee of Banking Supervision (BCBS) set out to “strengthen global capital and liquidity rules with the goal of promoting a more resilient banking sector,” formulating rules of which the final phase went into effect in January. Banks now will be required to identify areas of risks that are not in Read More

By |2020-05-27T18:00:34-05:00May 11th, 2015|Comments Off on Stressing out stress testing for community banks

Same-day ACH cost burden for community banks

The implementation of same-day Automated Clearing House (ACH) transactions has been getting a good amount of attention lately. In a letter to NACHA (the Electronic Payments Association) on February 4, the American Bankers Association expressed their support for a proposal to implement same-day ACH transactions. ABA believes that widespread adoption of same-day ACH transactions represents a fundamental step to Read More

By |2020-05-27T18:00:34-05:00April 27th, 2015|Comments Off on Same-day ACH cost burden for community banks

Return to consumer lending for community banks

It’s not a stretch to say the typical experience for a customer getting a consumer loan through their trusted community bank is only slightly more appealing than working with the sleazy finance desk at the local car dealership. The consumer lending capabilities of community banks significantly underperform that of most credit unions, as well as newly emerging Read More

By |2020-05-27T18:00:35-05:00April 10th, 2015|Comments Off on Return to consumer lending for community banks

Community banks find opportunity in business mobile

While mobile banking for consumers has become common, businesses are now demanding mobile banking services as well. Several large banks have met this need, most notably Wells Fargo with its CEO Mobile product, and now community banks are joining the market with their own offerings. This is an exciting new area of innovation, one where community banks Read More

By |2020-05-27T18:00:36-05:00March 17th, 2015|Comments Off on Community banks find opportunity in business mobile

Bolstering defenses against cyber attack

These days, it seems like the latest data breach is detailed in breaking headlines on a daily basis. Not even large, high-profile companies such as Target, Home Depot and Neiman Marcus are immune. According to the Identity Theft Resource Center, there have been 679 data breaches as of late November 2014, a 25% increase over the year-ago Read More

By |2020-05-27T18:00:37-05:00February 11th, 2015|Comments Off on Bolstering defenses against cyber attack

Compensating employees appropriately

How much should community banks and credit unions pay their employees in the current tough banking market? That’s a question that we probed in the 2014 edition of our Retail Salary and Benefits Study for Community Banks and Credit Unions. We found that over the past 22 years, salary and benefits (S&B) rates for front-line employees, on Read More

By |2020-05-27T18:00:38-05:00January 12th, 2015|Comments Off on Compensating employees appropriately