Shows
The Banker Next DoorEpisode 275: How much is your bank really worth?This episode examines a recent blog post from PCBB titled “How much is your CFI really worth?” Recent sales data implies there is a disconnect between buyers and sellers in terms of price. The M&A market has been weak for the last two years with many potential buyers sitting on the sidelines. What factors determine a bank’s value? A link to the blog post is included below.
Link: How Much Is Your CFI Really Worth?
2024-11-2613 minThe Banker Next DoorEpisode 274: Interview with Jason Lange from Chatham FinancialEpisode 274: Interview with Jason Lange from Chatham Financial
This episode is an interview with Jason Lange from Chatham Financial. Jason is on Chatham’s financial institutions team, helping clients install, grow, and optimize balance sheet hedging and customer hedging programs. Jason has been with Chatham for 16 years and is a veteran of the armed forces serving as a U.S. Army Aviation Officer. Jason and I discuss different strategies for banks to manage their balance sheets in a decreasing interest rate environment. Links to Chatham’s website, Jason’s profile, and links to two previous interviews with Bob Ne...2024-11-2523 minThe Banker Next DoorBND: Strategy Room 11-23-2024The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.
2024-11-241h 24The Banker Next DoorEpisode 273: Special Report: Federal Home Loan Banks under fire!This episode is a special report as the Federal Home Loan Banking System (FHLB) is under fire from the Federal Housing Finance Agency (FHFA). The FHFA is seeking to radically change the FHLB system by pushing a dramatic increase in affordable housing, climate change, and DEI politics. The episode examines multiple papers and reports to explain the chain of events that have led to this moment. The episode also reviews the history of the FHLB, their members, and why the FHLB should be left alone. Links to the reports are included below.
Link: Federal Home Loan Banks a...2024-11-2229 minThe Banker Next DoorEpisode 272: New SBA Covid EIDL Servicing Center (CESC) and MySBA Loan PortalThis episode looks at recent announcements from the SBA on the creation of a new Covid EIDL Servicing Center (CESC) and a new website called MySBA Loan Portal. If you need help with an SBA EIDL loan you can contact the CESC by phone (833-853-5638) or by email at covidEIDLservicing@sba.gov. Borrowers can register through the MySBA Loan Portal enrollment page at https://lending.sba.gov/
2024-11-2110 minThe Banker Next DoorEpisode 271: Liquidation pressures led to Republic First Bank failure!This episode examines a recent report from the FDIC Office of the Inspector General on what caused the failure at Republic First Bank earlier this year. The main reasons stated for the failure include unrealized losses in the bank’s bond portfolio, the inability to utilize secondary credit sources, several failed capital raises, and a dysfunctional board of directors. The main take away is that having unrealized losses in your investment portfolio is a very risky situation for a bank to find itself in. One misstep can lead to a catastrophe. A link to the report is included below.
...2024-11-2020 minThe Banker Next DoorEpisode 270: How are U.S. unbanked households doing?This episode examines a recent report by the FDIC on unbanked and underbanked households in the U.S. The report shows positive trends as the number of unbanked households in the U.S. continues to decline. The report also displays some very interesting data including the usage of mobile banking, the use of various payment channels, and for the first time, the use of buy now pay later. A link to the report is included below.
Link: 2023 FDIC National Survey of Unbanked and Underbanked Households | FDIC
2024-11-1920 minThe Banker Next DoorEpisode 269: Yellen continues market manipulation!This episode examines a recent article from the Epoch Times (subscription required) titled “US Treasury plans to borrower $1.37 Trillion over next 6 months.” As the shell game of moving around debt to finance the governments out of control spending continues, the Treasury is losing control of interest rates. Janet Yellen has been manipulating Treasury auctions for over a year and is going to leave a colossal mess for the next Treasury Secretary. This episode follows the events covered in episode 207: U.S. Treasury is manipulating interest rates. A link to episode 207 and a link to the article are included below.
2024-11-1820 minThe Banker Next DoorBND: Strategy Room 11-16-2024The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.
2024-11-171h 32The Banker Next DoorEpisode 268: Tether in trouble and bank crypto update (Crypto Series Part XII)This episode examines several articles from The Wall Street Journal and S&P Global concerning recent troubles with Tether, Provident Bancorp, and Customers Bancorp. Federal investigators are probing whether Tether has possible violations of anti-money laundering and sanctions rules. We also update on previously reported situations with Provident and Customers Bancorp. A link to The Wall Street Journal article is included below.
Link: Exclusive | Federal Investigators Probe Cryptocurrency Firm Tether - WSJ
2024-11-1519 minThe Banker Next DoorEpisode 267: What is your capital plan?This episode examines a recent article from Bank Director titled “Always have a plan in place for raising capital.” This article asks the question, what is your bank’s plan for either selling stock or issuing debt to raise capital? Having adequate capital on hand is critical for banks for several reasons. First, you need a certain amount of capital for regulatory compliance. Second, you need capital to protect against potential credit losses. Third, you need capital for future growth. Fourth, you need capital to take advantage of potential M&A opportunities as they arise. Will your bank be able t...2024-11-1415 minThe Banker Next DoorEpisode 266: A De Novo success, the story of Pinnacle Financial PartnersThis episode examines a recent article from Bank Director titled “Exclusive: An interview with Pinnacle Financial Partners’ CEO and Chairman.” This article is an interview with the CEO and Chairman of Pinnacle Financial Partners which tells their story from start up bank to a successful $50 billion dollar asset financial institution. What does it take to start a bank from scratch and make it successful? A link to the article is included below.
Link: Exclusive: An Interview With Pinnacle Financial Partners’ CEO and Chairman | Bank Director
2024-11-1320 minThe Banker Next DoorEpisode 265: Lesson time: Let's see how quickly a good loan can go bad!This episode examines a recent article from The Business Journals titled “Wells Fargo’s former Market Street office building is crippled. Can it survive and adapt?” This article poses a great example of how quickly good loans can go bad. If you are a lender or work in the credit or risk departments of a bank, it is critical to understand that your loans may not be as strong as you think. A link to the article is included below.
Link: Wells Fargo's departure cripples 401 Market St. - Philadelphia Business Journal
2024-11-1217 minThe Banker Next DoorEpisode 264: What is going on with colleges?This episode examines several recent articles from The Business Journals and The Wall Street Journal on what is happening with colleges in the U.S. Colleges are seeing a decline in enrollment that could threaten their business model. However, colleges in the southeastern part of the U.S. are seeing a surge in enrollment, especially from students coming from the northeastern part of the country. With colleges becoming increasingly politicized, the amount of student loan debt outstanding, and many young people questioning the value of a college degree, how long can this go on before colleges have to make...2024-11-1122 minThe Banker Next DoorBND: Strategy Room 11-8-2024The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.
2024-11-091h 30The Banker Next DoorEpisode 263: What is Extend-and-Pretend?This episode examines a recent report from the Federal Reserve Bank of New York titled “Extend-and-Pretend in the U.S. CRE Market.” This report was published in October 2024. The report shows that banks “extended-and-pretended” CRE mortgages in the post-pandemic period to avoid write offs against their capital and this led to credit misallocation and a buildup of financial fragility. A link to the report is included below.
Link: Extend-and-Pretend in the U.S. CRE Market - FEDERAL RESERVE BANK of NEW YORK
2024-11-0714 minThe Banker Next DoorEpisode 262: The fintech-bank partnership is on the rocks! What can banks do?This episode examines three recent articles from Bank Director covering different aspects of the bank-fintech relationship. What should banks be concerned about with a fintech partnership? How can a bank dissolve a problematic partnership? Finally, how can banks get these relationships right? With the bank-fintech relationship under intense regulatory scrutiny and perhaps the future of banking hanging in the balance, this is a critical topic for the banking industry. Links to all three articles are provided below.
Link: Digital Transformation Challenge for Smaller Banks: Getting Fintech Partnerships Right | Bank Director
Link: A Cautionary Tale for...2024-11-0618 minThe Banker Next DoorEpisode 261: How is CSBS feeling about the banking industry?This episode examines the annual 2024 Conference of State Bank Supervisors (CSBS) Survey of Community Banks. The survey highlights the views of 367 banks across 38 states. The banks included in the survey are all under $10 billion in asset size. Some of the topics covered include cybersecurity, regulatory burden, high technology costs, and the cost of funds. A link to the report is included below.
Link: CSBS Survey Highlights Top Risks and Challenges
Link: FINAL2024CSBSSurvey.pdf
2024-11-0520 minThe Banker Next DoorEpisode 260: How worried are banks about interest rate risk?This episode examines the OCC’s semiannual Interest Rate Risk Statistics Report for fall 2024. Interest rate risk is one of the largest risks that banks of all sizes face. Fluctuation in interest rates can have massive implications for bank balance sheets and future earnings. This report includes a review of bank reported IRR data that includes exposures, risk limits, and non-maturity deposit assumptions. The data is also broken down based on bank asset sizes. A link to the report is included below.
Link: Interest Rate Risk Statistics Report | OCC
2024-11-0419 minThe Banker Next DoorEpisode 259: Will real-time payments lead to faster fraud?This episode examines a recent article from ICBA titled “Can Faster Payments Lead to Faster Fraud?” As real-time payments are implemented, one of the side effects is that fraud can also be perpetrated faster. What can community banks do to combat this issue? A link to the article is included below.
Link: Can Faster Payments Lead to Faster Fraud?
2024-11-0317 minThe Banker Next DoorBND: Strategy Rooom - Crypto Series SpecialThis is a special Strategy Room episode as part of the ongoing Crypto Series. This special will cover various aspects of the crypto debate. We will look at an article from ICBA, several reports from the Bank of International Settlements (BIS) and Financial Stability Board (FSB), and PEW research. Topics include what is the impact of tokenization, cross-boarder crypto regulatory and supervisor challenges, are stablecoins safe havens during crypto market stress, what kind of regulation should be around stablecoins, current crypto scams, and ultimately what do American’s think about crypto?
2024-11-031h 32The Banker Next DoorBND: Strategy Room 11-1-2024The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.
2024-11-021h 33The Banker Next DoorEpisode 258: How is CECL performing?This episode examines a recent PCBB blog post titled “How has CECL adoption affected credit loss allowance levels?” The Current Expected Credit Loss or CECL methodology has been implemented by all banks for managing their Allowance of Credit Losses (ACL). How is this relatively new methodology performing compared to how banks historically managed loan loss reserves or loan loss provisions? What are the differences between small and large banks? A link to the blog post is included below.
Link: How Has CECL Adoption Affected Credit Loss Allowance Levels?
2024-10-3116 minThe Banker Next DoorEpisode 257: How was loan demand and business activity in 3Q 2024?This episode examines the Federal Reserve Bank of New York’s Business Leaders Survey for October 2024. We also examine an article from S&P Global (subscription required) titled “Q3 bank reports to show weak loan growth and modest deposit improvement.” Business activity remained steady in the Northeast section of the U.S. for the third quarter of 2024. Loan demand remained weak in the third quarter of 2024. A link to the FRBNY Business Leaders Survey is provided below.
Link: Business Leaders Survey
2024-10-3017 minThe Banker Next DoorEpisode 256: Crypto fraud is growing! (Crypto Series Part XI)This episode examines a recent blog post from PCBB titled “Crypto Fraud is growing rapidly.” The blog posts looks at the different types of crypto fraud including investment scams, call center fraud, romance, and cryptocurrency kiosks. Who are the likeliest targets by age, state, and country. Finally, the blog post offers six tips on how to avoid getting scammed. A link to the blog post is included below.
Link: Crypto Fraud Is Growing Rapidly
2024-10-2918 minThe Banker Next DoorEpisode 255: ICBA Advocacy in Action update for 4Q 2024This episode examines the Independent Community Bankers Association (ICBA) Advocacy in Action update for the 4th quarter of 2024. What are the main regulatory issues the banking industry is currently facing? How could the proposed legislation affect consumers and businesses? A link to the PDF document is provided below.
Link: top-issues-2024.pdf
2024-10-2820 minThe Banker Next DoorEpisode 254: Update on banking industry ratios and interest rate riskThis episode examines several articles from Bank Director and S&P Global to provide an update on U.S. banking industry ratios, which include efficiency ratio, net interest margin, ROAA, ROAE, and interest rate risk. We try to get an idea of how the industry is performing overall and what headwinds could be on the horizon. The S&P Global article requires a subscription. A link is provided below for the Bank Director article.
Link: Banking: an Industry (Partially) at Risk | Bank Director
2024-10-2823 minThe Banker Next DoorBND: Strategy Room 10-25-2024The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.
2024-10-261h 24The Banker Next DoorEpisode 253: Social Security Benefits received COLA adjustment, was it enough?This episode examines several articles from Investopedia, which address the recent cost of living adjustment (COLA) to social security benefits. Was the adjustment enough for retirees? In addition, we look at the Social Security Administration website and an example of the Social Security online statement. Links to both Investopedia articles, the Social Security Administration website, and the online statement and provided below.
Link: Social Security Benefits Were Adjusted This Week. One Expert Said It May Not Be Enough
Link: Social Security's 2.5% Boost: What Enrollees Need to Know Now
Link: Your Social Security Statement2024-10-2417 minThe Banker Next DoorEpisode 252: Review of ICBA's check fraud detection guideThis episode examines the Independent Community Bankers Association (ICBA) new check fraud detection guide. The guide provides solutions available to community banks for detecting instances of check fraud. The guide covers technology solutions, such as software and federal government systems, and operational mechanisms, such as check cashing limits and new account reviews. A link to the guide is provided below.
Link: Check Fraud: A Practical Guide to Altered, Forged, and Counterfeit Checks for Community Bankers
2024-10-2312 minThe Banker Next DoorEpisode 251: The rise of Private Credit!This episode examines the rise of Private Credit. Private Credit has become big business on Wall Street, and they are now looking to offload this risk onto retail investors. What is Private Credit? How did it start? Why is wall street trying to offload these loans through ETF, Mutual Funds, and Bond transactions? Can they do that? This all seems eerily familiar, like we saw this movie in 2007-2009. Anyone remember the movie the Big Short? Links to several articles are included below.
Link: Wall Street Races to Bring Private Credit to the Masses - WSJ
...2024-10-2229 minThe Banker Next DoorEpisode 250: OpenAI wants to become a for-profit organization, how does that work?This episode examines the case of OpenAI as it wants to change from a nonprofit company into a for profit company. OpenAI started as a nonprofit organization in 2015 that wanted to responsibly develop AI as an open-source platform. That all changed in 2019 when the company formed a for profit arm that developed ChatGPT. OpenAI is now valued at $156 billion. It also just completed a $6.6 billion fundraising round. It has two years to turn itself into a for profit company. There remain many legal and ethical hurdles in transforming this company. Links to several articles are included below.
L...2024-10-2120 minThe Banker Next DoorEpisode 249: What is going on with data-centers?This episode examines the current debate raging over data centers. This topic is at the crossroads of commercial real estate, big tech, AI, environmental issues, and energy requirements. Data-centers have become big business as big tech needs a massive amount of data to drive the development of AI. These data-centers have gotten massive and require a lot of electricity and water. While there is push back against building data-centers in certain areas, big tech is getting creative in signing deals with energy companies to reopen nuclear power plants and build new ones. Links to multiple articles are included below.2024-10-2027 minThe Banker Next DoorBND: Strategy Room 10-18-2024The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.
2024-10-191h 27The Banker Next DoorEpisode 248: Is a CRE concentration a bad thing?This episode examines an article from Bank Director titled “Capitalizing on disruption: California’s entrepreneurial Five Star Bancorp.” We ask the question is a concentration in commercial real estate (CRE) a bad thing? Five Star Bancorp has a niche in financing manufactured housing. This niche makes up 86% of their loan portfolio and resulted in a value of 682% of its risk-based capital, which is way above the regulatory guidance of 300%. However, the bank’s performance is phenomenal! They have been able to show investors, regulators, and customers that this niche is a strategic advantage, not a major concern. A link to the a...2024-10-1716 minThe Banker Next DoorEpisode 247: M&A update for 3Q 2024 and bank merger reviewThis episode examines several articles from S&P Global (subscription required). First, we go through an update on 3Q 2024 M&A activity. How are bank deals trending? What is the aggregate deal value looking like? How does the current market compare to the last four years? Second, we look at a recently announced merger between ACNB and Traditions Bancorp in Pennsylvania. We look at the merger process as the deal goes from letter of intent to competitive bid, to initial offer, through further negotiations, and then reaches culmination. In addition, we consider the third parties involved in the transaction...2024-10-1621 minThe Banker Next DoorEpisode 246: Should you be concerned about your bank board's performance?This episode examines an article from Bank Director titled “Addressing poor performance in the boardroom.” What should your bank do if you have a board member that is not performing? What tools are available? Should your bank consider performance evaluations, age limits, and term limits? What is the impact of having the same person hold the role of CEO and Chairman on the board? To have a high performing bank, you need a high performing board. A link to the article is included below.
Link: Addressing Poor Performance in the Boardroom | Bank Director
2024-10-1520 minThe Banker Next DoorEpisode 245: What does a successful core conversion look like?This episode examines an article from ICBA titled “Helpful tips for streamlining the core conversion process.” What should you know about the ins and outs of going through a core conversion? The article goes through five critical stages. 1) make the decision to convert, 2) calculate conversion costs, 3) have the right internal conversations, 4) evaluate providers, and 5) listen to peers. A core conversion is one of the toughest and most difficult things any banker can go through in their career. A link to the article is included below.
Link: Helpful Tips for Streamlining the Core Conversion Process (independentbanker.org)
2024-10-1417 minThe Banker Next DoorEpisode 244: Fed pivot could spur more bond restructuring!This episode examines a recent S&P Global article (subscription required) titled “Fed’s pivot to lower rates could spur more bond restructuring.” The topic of unrealized losses in bank bond portfolios has been a big issue since the banking crisis in early 2023. Now that the Fed has embarked on a rate reduction cycle, what impact will this have on banks’ existing investment portfolio?
2024-10-1320 minThe Banker Next DoorBND: Strategy Room 10-12-2024The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.
2024-10-131h 31The Banker Next DoorEpisode 243: Review of FDIC 2024 Small Business Lending SurveyThis episode examines the FDIC 2024 Small Business Lending Survey. We go through the report and cover the key findings. Do small businesses still prefer banks? What impact is technology having? Do customers still value relationships? These are just a couple of the topics covered in the key findings. A link to the report is included below.
Link: FDIC Small Business Lending Survey 2024
2024-10-1021 minThe Banker Next DoorEpisode 242: Let's talk about Treasury Services!This episode looks at an article from Bank Director titled “the growing demand for Treasury Services in the financial sector: Economic drivers and implications for deposit growth.” Treasury Services provide a number of key products and functions for banks’ business customers. Having these products and services can be the difference between winning and losses business customers. Treasury Services can be a key part of your deposit gathering strategy. A link to the article is included below.
Link: The Growing Demand for Treasury Services in the Financial Sector: Economic Drivers and Implications for Deposit Growth | Bank Director
2024-10-0912 minThe Banker Next DoorEpisode 241: Discusion with DelphX CEO, Patrick Wood, on Credit Rating Security (CRS)This episode is an interview with Patrick Wood, who is CEO of DelphX Capital Markets. Patrick and I discussed his company’s specialty in the bond market. He introduces the company’s new product called Credit Rating Security (CRS). This product shields insurance companies from credit rating downgrades while enhancing return potential. Patrick and I also discussed his career, Bernard Baruch, and the movie Margin Call. A link to DelphX Capital Markets website is included below.
Link: Home - Building a better credit market through risk-diffusion (delphx.com)
2024-10-0831 minThe Banker Next DoorEpisode 240: Interview with crisis management expert Stephanie CraigThis episode is an interview with Stephanie Craig, who is President of Kith. Stephanie has built her reputation as a crisis expert by guiding some of the world’s most prominent people and organizations through their most trying moments. Kith is an elite crisis preparation, response and recovery firm focused on one thing: your reputation. Stephanie and I discuss crisis management and things bank management should consider when doing business continuity and disaster recovery planning. A link to Kith’s website is included below.
Link: Kith | Kith’s sole focus is to defend corporate reputations in times of crisi...2024-10-0726 minThe Banker Next DoorEpisode 239: Learning Agility and navigating a crisis!This episode looks at a recent article in Bank Director titled “How Western Alliance and its board navigated a crisis.” This is a good example of how a bank board of directors can work with their senior management team in a time of major crisis. Furthermore, we examine the concept of ‘learning agility.’ A link to the Bank Director article is included below.
Link: How Western Alliance and Its Board Navigated a Crisis | Bank Director
2024-10-0617 minThe Banker Next DoorEpisode 238: What is up with men not in the work force?This episode examines a recent article in CNBC titled “More men in their prime working years are neither working nor looking for jobs – here’s why.” We also looking at multiple charts from the St. Louis Federal Reserve Fred for unemployment, unemployment (education), and labor force participation for men. Right now, we have a disturbing economic picture of millions of men in their prime working years that are not currently in the labor market. This will become a major problem. A link to the CNBC article is included below.
Link: Why more men are dropping out of the work...2024-10-0520 minThe Banker Next DoorBND: Strategy Room 10-4-2024The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.
2024-10-051h 18The Banker Next DoorEpisode 237: The 2Q 2024 GDP number was WHAT?This episode reviews a recent article from Zero Hedge titled “Mystery of upward GDP revision solved: You are all $500 billion richer now according to a revised Biden admin spreadsheet.” The article highlights how the 2Q 2024 GDP numbers were “adjusted” for a more positive result. The GDP numbers are being manipulated just like the unemployment numbers. A link to the Zero Hedge article is included below.
Link: Mystery Of Upward GDP Revision Solved: You Are All $500 Billion Richer Now According To A Revised Biden Admin Spreadsheet | ZeroHedge
2024-10-0416 minThe Banker Next DoorEpisode 236: Let's talk about deposit strategy!This episode reviews a recent blog post from PCBB titled “Are deposit costs finally easing?” With interest rates reducing, this blog post offers five strategies banks should be considering for managing their deposits in this challenging environment. Every bank should be thinking about these deposit strategies. A link to the blog post is included below.
Link: Are Deposit Costs Finally Easing? (pcbb.com)
2024-09-2915 minThe Banker Next DoorEpisode 235: Interview with commercial insurance provider Ryan StillwellThis episode is an interview with Ryan Stillwell, owner of Stillwell Risk Partners. Ryan is a commercial insurance provider. Stillwell Risk Partners specializes in providing business and commercial property insurance. The focus of the interview is on commercial real estate coverage. We discuss different property types, what is happening in the marketplace, what you should expect, things you should consider when evaluating different properties, and how you can better cover loss and flood risk. A link to Stillwell Risk Partners website is included below.
Link: Professional Insurance Advisors | Stillwell Risk Partners
2024-09-2824 minThe Banker Next DoorBND: Strategy Room 9-27-2024The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.
2024-09-281h 19The Banker Next DoorEpisode 234: Review of Bank Director's 2024 Technology SurveyThis episode reviews Bank Director’s 2024 Technology Survey. The key findings include delayed projects, fraud concerns, tech budget increases, hiring developers, and board priorities. This is a great survey for understanding how banks are utilizing technology in the industry and what challenges they are currently facing. A link to the Bank Director article and 2024 technology survey are included below.
Link: 2024 Technology Survey: Envisioning Your Bank’s Future | Bank Director
Link: 2024TechReport-OpenVersion-v2.pdf (bankdirector.com)
2024-09-2620 minThe Banker Next DoorEpisode 233: U.S. banks looking to lower CD rates!This episode examines several articles from S&P Global (subscription required) looking at recent growth in bank deposits and banks interest in lowering CD rates as the Fed has moved into an interest rate reduction cycle. Banks would like to quickly reduce CD rates to lower their cost of funds. However, will consumers go along with this?
2024-09-2517 minThe Banker Next DoorEpisode 232: Let's talk about 'buy now, pay later' products!This episode examines a recently published Frequently Asked Questions (FAQ) report from the Consumer Financial Protection Bureau (CFPB) on ‘Buy Now, Pay Later’ products. The FAQ provides a general overview of BNPL and explains ‘Pay-in-Four’ BNPL loans. A link to the FAQ on the CFPB website is included below.
Link: Buy Now, Pay Later Product FAQs | Consumer Financial Protection Bureau (consumerfinance.gov)
2024-09-2413 minThe Banker Next DoorEpisode 231: How did Fannie Mae and Freddie Mac end up in conservatorship?This episode focuses on the history of Fannie Mae and Freddie Mac. How did these organizations start and evolve over the years? What scandals were they involved in before the financial crisis? What was their role during the financial crisis of 2007-2009? What are the arguments for and against privatization? Finally, what is happening now?
Link: Fannie Mae and Freddie Mac: An Overview (investopedia.com)
2024-09-2327 minThe Banker Next DoorEpisode 230: SBA UpdateThis episode provides an update on the Small Business Administration (SBA) and the programs it offers. The SBA has rolled out a new 7(a) Working Capital Pilot Program, which is a line of credit up to $5 million. The SBA is seeking out new lenders to work with in an attempt to expand access to their various loan programs. Finally, borrowers that utilized the SBA EIDL loan program continue to struggle with their debt loads.
Link: The SBA’s New Working Capital Pilot Program Launches Today (pcbb.com)
Link: SBA to issue more Small Business Lending Co...2024-09-2225 minThe Banker Next DoorEpisode 229: Interview with SBA lender Paul AveryThis episode is an interview with Paul Avery, who is an SVP SBA lender with Meridian Bank. Paul and I go through the various SBA loan programs. We discussed 504 loans, 7(a), Express, Export, and Microloans. We spent some time discussing the ins and outs of the 7(a) loan. Namely, how long is the process, what documents are required, can closing costs be rolled in, what approvals are needed from the bank and SBA, and why an attorney is typically used for preparing loan documents and caring out the settlement. Below is a link to a chart covering all the...2024-09-2129 minThe Banker Next DoorBND: Strategy Room 9-20-2024The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.
2024-09-211h 18The Banker Next DoorEpisode 228: What should bank board members be reading?This episode looks at eight different books that bank board members should be reading. If you are thinking about joining a bank board, have recently joined a bank board, or even if you are a veteran board member, you should check out this list!
2024-09-1916 minThe Banker Next DoorEpisode 227: Is the Fed's 2% inflation target a good mandate?This episode examines the Fed’s 2% inflation target. First, does it make sense as a good target? Second, is it good or bad that the Fed is going to decrease rates? Third, why is the Fed always praised for fixing the problems they create?
2024-09-1815 minThe Banker Next DoorEpisode 226: Basel III Endgame Update!This episode looks at multiple articles providing an update on the proposed legislation known as the Basel III Endgame. This legislation is looking to dramatically increase the amount of capital being held at the largest financial institutions, not only in the U.S. but in the U.K. and Europe. The legislation was introduced in July of 2023 and received major backlash from banks, trade groups, and politicians. The new proposal appears to be a major compromise. Will this get approved in Congress and when?
2024-09-1716 minThe Banker Next DoorEpisode 225: How can your bank improve digital lending?This episode reviews a recent blog post form PCBB titled “5 tips to improve your digital lending efforts.” PCBB reviewed the Digital Banking Report 2024 on the state of digital lending in banks. Some of the key findings reviewed: types of credit that can be initiated online vs mobile, the end-to-end digital process, branch visits, time to complete an application, and restarting an interrupted application. In addition, PCBB provides 5 tips on ways that banks can improve their digital lending experience. Links to the blog post and the 2024 State of Digital Lending report are included below.
Link: 5 Tips To Improve Your...2024-09-1616 minThe Banker Next DoorEpisode 224: What do small businesses want from their bank?This episode reviews a recent blog post from PCBB titled “What do small businesses really want from their FI?” A recent survey from BAI of small business customers is reviewed to see their comments on primacy, bank switching, channel preference, branch proximity, improving digital capabilities, and generative AI. What is real and what is perceived about banks digital capabilities, branches, and services?
Link: What Do Small Businesses Really Want From Their FI? (pcbb.com)
2024-09-1521 minThe Banker Next DoorEpisode 223: The rise of Tether! (Crypto Series Part X)This episode examines the growth of the stablecoin Tether. We also look at what is a stablecoin. How Tether works and how Tether is different from TerraUSD, which failed in 2022. Links to several articles and sources are listed below.
Link: Tether: The Cryptocurrency Fueling the Financial Underworld - WSJ
Link: Tether (USDT): Meaning and Uses for Tethering Crypto (investopedia.com)
Link: TerraUSD Crash Shows Risks of Algorithmic Stablecoins (investopedia.com)
Link: Is Stablecoin the Answer to All Cryptocurrency Problems? (investopedia.com)
2024-09-1522 minThe Banker Next DoorBND: Strategy Room 9-13-2024The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.
2024-09-141h 11The Banker Next DoorEpisode 222: Can trademarks in banking hurt your financial institution?This episode examines a study from the Federal Reserve titled “Trademarks in Banking” by Ryuichiro Izumi, Antonis Kotidis, and Paul E. Soto. The researchers found that banks that share their name with a failed bank experience a decrease in transaction deposits relative to banks with similar characteristics but different names. In other words, if you have two banks named “Citizens Bank” but one fails, that will be detrimental to the remaining bank. Guilt by association, if you will. A link to the study is included below.
Link: Trademarks in Banking (federalreserve.gov)
2024-09-1211 minThe Banker Next DoorEpisode 221: How will AI be adopted into analyzing credit risk?This episode looks at how AI can be incorporated into analyzing credit risk within a bank. Many banking professionals in charge of credit risk at their respective financial institutions would like to see how AI can be used in client engagement, credit decision and underwriting, portfolio monitoring, and customer assistance. A link to the PCBB BID daily newsletter blog is included below.
Link: Survey: Credit Risk Leaders Plan Rapid AI Adoption (pcbb.com)
2024-09-1117 minThe Banker Next DoorEpisode 220: Do you know how heavily your state is regulated?This episode examines a report from The George Mason University Mercatus Center titled “Quantifying Regulation in US states with State RegData 2.0” by James Broughel and Patrick McLaughlin. The authors try to answer the question, how regulated is your state? A link to the study is included below.
Link: Quantifying Regulation in US States with State RegData 2.0 | Mercatus Center
2024-09-1019 minThe Banker Next DoorEpisode 219: Review of Bank Director 2024 Ranking Banking ReportThis episode reviews Bank Director’s 2024 Ranking Banking Report. The report ranks the largest 300 publicly traded banks by performance. They also rank the top 25 banks by each asset size category – less than $5 billion, $5 billion to $50 billion, and $50 billion and above. Let’s see who made the cut! Links to a Bank Director article and the report are included below.
Link: 2024 RankingBanking Report: Small Players Dominate the Best Banks List | Bank Director
Link: RankingBanking 24 Digital (1) - Flipbook - Page 1 (paperturn-view.com)
2024-09-0913 minThe Banker Next DoorEpisode 218: Review of FDIC Quarterly Banking Profile for 2Q 2024This episode examines the FDIC’s Quarterly Banking Profile for the second quarter of 2024. How are community banks performing? A link to the current report and a previous episode covering the fourth quarter of 2023 are included below.
Link: FDIC Quarterly Banking Profile - Second Quarter 2024
Previous Episode Link: Episode 86: Review of FDIC Quarterly Banking Profile (Q4 2023)
Podbean - https://joeberq.podbean.com/e/episode-86-review-of-fdic-quarterly-banking-profile-q4-2023/
2024-09-0815 minThe Banker Next DoorEpisode 217: P2P payment fraud, what you need to know!This episode examines peer-to-peer (P2P) payment fraud. The amount of this fraud has skyrocketed over the last few years and is projected to increase in the years ahead. We look at common P2P scams, actions you can take to try and prevent this type of fraud, and we see what a new industry group is doing to try and combat these types of fraud. Links to the articles are included below.
Link: P2P Payment Fraud Is on the Rise: How To Combat It (pcbb.com)
Link: Industry Work Group Scam Info Sharing...2024-09-0712 minThe Banker Next DoorBND: Strategy Room 9-6-2024The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.
2024-09-071h 13The Banker Next DoorEpisode 216: What is the discount window and how do banks get access?This episode examines the discount window and answers how banks get access to it? The discount window is a lending facility, which works like a line of credit, that is open to all financial institutions. The main users of the discount window have historically been the “money center banks,” which are made up of the 25 largest banks in the U.S. Most of the smaller banks in the U.S. do not utilize the discount window due to the stigma related to it. We go over the five steps a bank would take to access the discount window. Links to t...2024-09-0419 minThe Banker Next DoorEpisode 215: Customers Bank hit with enforcement action over crypto! (Crypto Series Part IX)This episode examines recent enforcement actions taken against Customers Bank by the Federal Reserve Bank of Philadelphia for their involvement with cryptocurrency and / or digital assets. The Federal Reserve Bank of Philadelphia found that Customers Bank had deficiencies in their risk management program as it related to BSA and AML compliance. Customers Bank is now under a written agreement and must submit to an independent third-party review of their digital assets business.
2024-09-0317 minThe Banker Next DoorEpisode 214: How do banks feel about loan growth?This episode examines the potential for loan growth right now at U.S. banks. We look at the Federal Reserve Senior Loan Officer Survey for July 2024, an article from Bank Director, an Article from S&P Global, and an article from The Business Journals. Banks are not feeling that great about loan growth in the short-term and have tightened up lending standard but feel that demand will improve over the next year as the Fed decreases interest rates. Links to the articles are included below.
Link: More Banks Are Reporting Slowing Loan Growth, Raising Risk Concerns for...2024-09-0220 minThe Banker Next DoorEpisode 213: What are Chinese and Japanese Megabanks doing?This episode examines recent actions and polices with China and Japan’s megabanks as they both struggle with different issues. China has a major real estate problem, and a surging Yen could threaten profits for Japanese banks. China and Japan are the two largest purchasers of U.S. debt, so we must keep an eye on their economies.
2024-09-0116 minThe Banker Next DoorEpisode 212: How is the Chinese property market effecting their banks?This episode examines the current state of the Chinese real estate market. Has a deterioration in property values caused problems for their banks? How is the Chinese government dealing with the issue? Can we trust the numbers coming out of China?
2024-09-0116 minThe Banker Next DoorEpisode 211: Let's check in on CEO salaries!This episode looks at 2023 CEO pay for banks, financial services, and S&P 500 companies. Jamie Dimon remains in the top spot for banks, but who takes the top spot for financial services and S&P 500 companies? Are CEOs paid too much?
2024-08-3120 minThe Banker Next DoorBND: Strategy Room 8-30-2024Weekly banking update. Provides financial news and commentary, top stories in the business world, economic indicators, and what is coming up next week.
2024-08-311h 01The Banker Next DoorEpisode 210: Interview with Mark Ritter, CEO of MBFSThis episode is an interview with Mark Ritter who is the CEO of Member Business Financial Services (MBFS). MBFS provides support services to Credit Unions such as underwriting, documentation, loan servicing, and SBA loan support. MBFS is considered a “CUSO,” which is a Credit Union Service Organization, meaning that the business entity is owned by credit unions and primarily serves credit unions or members of the CUSO owners or clients. Links to MBFS and Mark’s websites are included below.
Link: https://www.mbfs.org/
Link: https://markritter.com/
2024-08-3125 minThe Banker Next DoorEpisode 209: Commercial Real Estate UpdateThis episode provides an update on the commercial real estate market. Five articles are examined from S&P Global Market Intelligence (subscription required), Bank Director, and PCBB. Topics covered include should banks prepare for potential losses, precautionary measures that banks can take, community bank earnings tested but not crushed by CRE, German bank assets being impacted by U.S. CRE, and the coming CRE maturity wall. Links to the Bank Director and PCBB articles are included below.
Link: Rising CRE Risks Loom Within the Banking Industry (pcbb.com)
Link: Bracing for a CRE Backlash | Bank Di...2024-08-3025 minThe Banker Next DoorBND: Strategy Room 8-25-2024This was a Live Stream on Podbean for the podcast audience. This episode provides a weekly update on U.S. banking industry news.
2024-08-261h 06The Banker Next DoorEpisode 208: Its official, BLS cooking the jobs numbers!This episode looks at the stunning revisions this week in reported employment numbers from the Bureau of Labor Statistics (BLS). This was the largest downward revision in 15 years! And one of the largest downward revisions in history at over 800,000 jobs! This report confirms what some have been suspecting for the last 18 months, that BLS has been manipulating the employment data to make the labor force appear stronger than it actual is. Several recent articles are reviewed from Bloomberg, The Wall Street Journal, and CNBC. Links to all three are included below.
Link: Fed Confronts Up to a...2024-08-2417 minThe Banker Next DoorEpisode 207: U.S. Treasury is manipulating interest rates!This episode looks at a recent paper issued by Stephen Miran and Nouriel Roubini titled “ATI: Activist Treasury Issuance and the Tug-of-War over Monetary Policy.” The paper was highlighted in a feature article on CNBC titled “Kelly Evans: Is Treasury manipulating interest rates.” Links to both the paper and article is included below. The subject paper details the process with which the U.S. Treasury is effectively enacting quantitative easing to manipulate long-term interest rates. The authors warn that this manipulation has become political and can have dire consequences.
Link: Kelly Evans: Is Treasury manipulating interest rates? (cnbc.com...2024-08-2425 minThe Banker Next DoorEpisode 206: What is The Jackson Hole Economic Symposium?This episode looks at The Jackson Hole Economic Symposium that takes place every year in August in Jackson Hole, Wyoming by the mountains of Grand Teton National Park. This year’s symposium will take place between Thursday, August 22nd and Saturday, August 24th. For over 50 years, The Jackson Hole Economic Symposium has been a major gathering for Federal Reserve officials, economists, academics, and policy makers from around the world. Market watchers always pay close attention to this conference to see what the Federal Reserve is planning for future meetings and monetary policy. What is expected this year? A link to...2024-08-2314 minThe Banker Next DoorEpisode 205: FHFA's new credit scoring requirementsThis episode reviews an article from ICBA titled “Ron Haynie & Tim Roy: Deciphering FHFA’s Credit Score Transition.” The Federal Housing Finance Agency (FHFA) has issued new credit scoring requirements for Fannie Mae and Freddie Mac by transitioning from the classic FICO to the FICO Score 10 T and VantageScore 4.0 credit scoring models. Is this a good or bad change? How will this affect you as a consumer trying to get a residential mortgage? A link to the article is included below.
Link: Ron Haynie & Tim Roy: Deciphering FHFA's Credit Score Transition (independentbanker.org)
2024-08-1916 minThe Banker Next DoorEpisode 204: Review of Bank Director 2024 Governance Best Practice SurveyThis episode reviews Bank Director’s 2024 Governance Best Practices Survey and a related Bank Director article titled “2024 Governance Best Practices Survey: Exercising Independence” by Emily McCormick. This annual survey examines board responsibilities, risk oversight, composition, engagement and governance practices. The question is asked can a dominant CEO or board member have a negative impact on their bank? A link to the article and survey are included below.
Link: 2024 Governance Best Practices Survey: Exercising Independence | Bank Director
Link: 2024GovernanceReport-Open-Version.pdf (bankdirector.com)
2024-08-1816 minThe Banker Next DoorEpisode 203: What is happening in the U.S. labor market?This episode reviews four articles to get a better understanding of the current U.S. labor market. Is there a white-collar job squeeze? Are half the U.S. online job postings fake? What is the new normal for pay raises? Are the lowest-paid workers the hardest hit as unemployment rises? These are some of the questions we try to address. Links to the articles are included below.
Link: Salary budgets expected to grow in 2025 and workers are slated to get pay raises - The Business Journals (bizjournals.com)
Link: The White-Collar Job Squeeze | The Epoch...2024-08-1724 minThe Banker Next DoorEpisode 202: How can small banks level the playing field?This episode reviews an article from Bank Director titled “Three ways smaller banks are leveling the playing field” by Cetin Duransoy. This article lays out three ways that smaller banks and credit unions can effectively compete against the industry behemoths. The three potential solutions include 1) highlight their impact to build consumer confidence, 2) Solutions to combat high compliance and cybersecurity costs, and 3) agility in pricing.
Link: Three Ways Smaller Banks Are Leveling the Playing Field | Bank Director
2024-08-1610 minThe Banker Next DoorEpisode 201: Is the FDIC proposal on brokered deposits a problem?This episode reviews several articles from S&P Global Market Intelligence. The first article titled “FDIC proposal would classify more BaaS deposits as brokered, not core." The second article is titled “US elections have potential to reshape fintech regulatory landscape." Both articles were written by Yizhu Wang. The first article addresses the proposed rule from the FDIC that would end a BaaS practice that allows banks to count deposits originated by fintech partners as core and require them to classify the funds as brokered. The second article points out how the outcome of this year's Presidential election can have mass...2024-08-1520 minThe Banker Next DoorEpisode 200: Check fraud is a BIG problem!This episode reviews an article from the ABA banking journal titled “Is it time to kill the paper check?” by Evan Sparks and an article from The Business Journals titled “Big brands are ditching paper checks. Small-business owners might not be able to do the same” by Andy Medici. These articles detail the current usage of checks in the banking system and why fraud with bank checks is so prevalent. Is it time to replace paper checks? Are the alternatives really that great? Is getting rid of checks even feasible? Links to both articles are included below.
Link: Ho...2024-08-1422 minThe Banker Next DoorEpisode 199: Banks continue to reduce CRE exposureThis episode reviews an article from bank director titled “Banks start to take their lumps to address CRE exposure” by Paul Davis and an article from S&P Global Market Intelligence titled “Many top office lenders continue to dial back exposure” by Claire Lawson and Robert Clark. These articles highlight how banks are still struggling with commercial real estate concerns and how they are addressing those concerns by reducing overall exposure.
Link: Banks Start to Take Their Lumps to Address CRE Exposure | Bank Director
2024-08-1317 minThe Banker Next DoorEpisode 198: Update on bank stocksThis episode reviews a series of articles from July through August of 2024 to check in on how banks stocks are performing. Bank stocks continue to be impacted by commercial real estate loans and portfolio concentrations, compressing net interest income, regulatory burden, presidential election cycle, mixed earnings between the big 4 and regional banks, and enthusiasm over AI. Bank stocks are up on the year but had a rough couple of weeks. The hope right now is that rate cuts will help the industry and ignite an increase in M&A activity toward the end of the year.
2024-08-1115 minThe Banker Next DoorBND: Strategy RoomThis was a live stream on Podbean exclusively for the podcast audience. This live stream was to celebrate the 1-year anniversary of The Banker Next Door. This live stream also served to cover the weekly Banking Update for 8-10-2024.
2024-08-111h 02The Banker Next DoorEpisode 197: How to handle a superstar employee?This episode reviews an article from The Wall Street Journal titled “Are Superstar Employees Worth It?” by Matthew Call. This article looks at the effects of having a superstar employee and how that can be a good and bad thing. What do you have to do to acquire and retain these talented people? Is the price worth it? Can these employees be a long-term benefit? A link to the article is below.
Link: How the Value of High-Performing Employees Evolves Over Time - WSJ
2024-08-1020 minThe Banker Next DoorEpisode 196: Japan Meltdown!This episode examines the meltdown in Japan’s stock market, which started on Sunday, August 4th. What is the YEN carry trade? Why did the Bank of Japan raise interest rates? Did the Federal Reserve play a role in this? And what is up with Warren Buffet? A link to related Episode 163 is below.
Links to Episode 163: Japan’s Norinchukin Bank dumps U.S. government bonds!
Podbean - https://joeberq.podbean.com/e/episode-163-japans-norinchukin-bank-dumps-us-government-bonds/?token=4ad84a95cfbc3d3a023b4f42a5c508ae,
YouTube – https://youtu.be/atAGiMQXRIM,
Rumble...2024-08-0927 minThe Banker Next DoorEpisode 195: Banking Update 8-4-2024This episode provides a weekly update on U.S. banking industry news.
2024-08-0430 minThe Banker Next DoorBND: Strategy RoomThis is the first BND: Strategy Room live stream episode. I provide information on my career and educational background. I review why I started the podcast, the content that is on the podcast, and what is to come over the next year.
2024-08-0430 minThe Banker Next DoorEpisode 194: July 2024 jobs report, OH MY!This episode examines the July 2024 jobs report and what effects it is having on the overall economy and stock market. What do the numbers project for the rest of the year? Below are links to a related CNBC article, WSJ article, Bureau of Labor Statistics data, and FRED data.
Link: Job growth totals 114,000 in July, much less than expected, as unemployment rate rises to 4.3% (cnbc.com)
Link: July Jobs Report: How Markets Are Reacting, in Five Charts (wsj.com)
Link: Bureau of Labor Statistics Data (bls.gov)
Link: Total Unemployed, Plus...2024-08-0418 min
Chamber ChatPlease Join Us for this Episode of TriCounty Area Chamber of Commerce's Chamber Chat with Special Guest: Joseph Bergquist, VP of Lending Services -Harleysville BankPlease Join Us for this Episode of TriCounty Area Chamber of Commerce's Chamber Chat with Special Guest: Joseph Bergquist, VP of Lending Services -Harleysville Bank2021-12-0721 min