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Planning for Strategic Planning Session

June 27, 2017

Authors

Robert Klingler

Planning for Strategic Planning Session

June 27, 2017

by: Robert Klingler

the-bank-accountWhile I continued on a family vacation (which was totally worthwhile), Jonathan and Jim McAlpin recorded an episode of The Bank Account looking at planning a strategic planning session for your bank.  Jonathan and Jim cover a wide array of topics based on their collective experience in assisting dozens of banks with their strategic planning.

Among the multitude of topics covered include:

  • thinking about shareholder interests in strategic planning;
  • what the “new normal” means for community banks;
  • how frequently strategic planning sessions should occur;
  • the importance of efficiency ratio analysis;
  • the length of a “good” strategic plan;
  • board composition; and
  • the need to address whether or not to pursue the sale of the bank with the board.
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Regulatory Supervision of Third Party Service Providers

June 26, 2017

Authors

Robert Klingler

Regulatory Supervision of Third Party Service Providers

June 26, 2017

by: Robert Klingler

the-bank-accountWith Jonathan and I attending the Georgia Bankers Association’s 125th Annual Meeting, Bryan Cave colleagues Ken Achenbach and Sean Christy broke into our podcasting studio to record an episode of The Bank Account looking at vendor negotiations through a regulatory lens.

The FDIC’s Office of Inspector General’s Report on Technology Service Provider Contracts provides another source of regulatory guidance that needs to be considered while negotiating vendor contracts.  Ken and Sean look at the evolving state and federal framework of regulatory oversight of service providers, and how banks should adopt to this framework in contract negotiations.

You can follow Sean on Twitter at @SeanChristy.  Ken doesn’t need Twitter; he’s already following you.

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Convenience vs. Compliance: Behavior-Driven Marketing of Credit Products

June 9, 2017

Authors

Robert Klingler

Convenience vs. Compliance: Behavior-Driven Marketing of Credit Products

June 9, 2017

by: Robert Klingler

the-bank-account Bryan Cave colleague Ken Achenbach joined Jonathan and me on the latest episode of The Bank Account for a discussion of the potential compliance issues associated with a behavior-driven marketing focus within financial services.  To borrow the immortal words of Salt-N-Pepa, should banks “Push it?  Push it real good?”

While new app technologies are allowing banks to market in new ways, we analyze many of the ways in which behavior-driven marketing already permeates our culture, and why financial services-based behavior-driven marketing may be treated differently.  Some of the articles referenced on the podcast include:

Preserving Deferred Tax Assets in a Capital Raise

June 7, 2017

Authors

Robert Klingler

Preserving Deferred Tax Assets in a Capital Raise

June 7, 2017

by: Robert Klingler

the-bank-accountOn the latest episode of The Bank Account, Jonathan and I discuss the ability of bank holding companies to raise capital while preserving valuable deferred tax assets.

Section 382 of the Internal Revenue Code triggers a limitation on the carry-forward of net operating losses and built-in losses in the event of an “ownership change” in the company.  However, Section 382’s definition of what constitutes an ownership change is very different than many interpretations of a change in control.  Various segregation and aggregation rules can result in an ownership change being triggered when one might not expect it, but can also permit, with advanced planning, significant capital raises without triggering an ownership change.  This podcast provides a high level overview

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The CFPB’s Small Business Lending Data Request

May 12, 2017

Authors

Robert Klingler

The CFPB’s Small Business Lending Data Request

May 12, 2017

by: Robert Klingler

the-bank-accountOn the latest episode of The Bank Account, Jonathan and I discuss the CFPB’s request for comments regarding information about the small business lending market.

Section 1071 of the Dodd-Frank Act amended the Equal Credit Opportunity Act to require financial institutions to compile, maintain and report information concerning credit applications made by women-owned, minority-owned and small businesses.  In connection with this obligation, the Consumer Financial Protection Bureau is now seeking comments to identify, among other things, how to define small business lending, what business lending data is currently easily available, and what kinds of institutions should be obligated to make such reports.

Jonathan and I discuss the need for the depository industry to provide comments in response to

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ESOPs: A Path to Bank Independence

May 8, 2017

Authors

Robert Klingler

ESOPs: A Path to Bank Independence

May 8, 2017

by: Robert Klingler

the-bank-accountEmployee Stock Ownership Plans offer an opportunity for banks to offer an attractive employee benefit plan, but can also do so much more.  On the latest episode of The Bank Account, Jonathan and I are joined by Bryan Cave Partner, Steve Schaffer, to discuss the advantages to banks considering implementing an ESOP.

Steve describes many of the advantages of implementing an ESOP, including allowing for smooth transitions of ownership for independent banks.  We also discuss some of the risks and the best means to avoid those risks.

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Order in the Meeting: Dealing with Difficult Shareholder Meetings

April 27, 2017

Authors

Robert Klingler

Order in the Meeting: Dealing with Difficult Shareholder Meetings

April 27, 2017

by: Robert Klingler

the-bank-accountOn our twentieth(!) podcast episode of The Bank Account, Jonathan and I take the opportunity to discuss tips for how to approach challenging shareholders or circumstances at your annual meetings.

Unfortunately, Jonathan had a brain freeze during recording, and forgot to use his favorite Mike Tyson quotation, “Everyone has a plan ’till they get punched in the mouth.”  That said, planning ahead for disruptive shareholders is almost always worthwhile.

Providing a written agenda and set of governing rules to attendees can further help establish and maintain order, but it often comes back to simply ensuring that the disgruntled shareholder is provided an opportunity to be heard.

We’re also thrilled to announce that we’ve updated our recording microphones.  While our

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Do Banks Need a Holding Company?

April 21, 2017

Authors

Robert Klingler

Do Banks Need a Holding Company?

April 21, 2017

by: Robert Klingler

the-bank-accountOn April 11, 2017, Bank of the Ozarks announced that it would be completing an internal corporate reorganization to eliminate its holding company.  As a result, it will continue as a publicly-traded, stand-alone depository bank, without a bank holding company.

In this episode of The Bank Account, Jonathan and I discuss the advantages and disadvantages of the bank holding company structure.  Specific topics include:

  • praise for Bank of the Ozarks innovative approach to further improve its already impressive efficiency,
  • a review of the existing landscape of holding company and non-holding company structures,
  • activities that may require a holding company,
  • size-related thresholds impacting holding company analysis,
  • charter and corporate-governance related elements to the analysis, and
  • the impact
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Thoughts on Payment Systems for Banks

April 14, 2017

Authors

Robert Klingler

Thoughts on Payment Systems for Banks

April 14, 2017

by: Robert Klingler

the-bank-accountJonathan and I sat down with our colleague, Stan Koppel, on Thursday, April 13th to discuss the intersection of payment systems and banks.   Stan joined Bryan Cave LLP following a 28-year stint with VISA, where he was originally the third lawyer employed.  In this episode of The Bank Account, Stan shares his background and touches on what’s working now and what’s ahead in the payments world for financial institutions.

Topics covered include banking the unbanked, tokenization, the blockchain and machine learning!  Preview of a hot take from Stan… “blockchain is more distracting than disruptive.”

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Landscape of the U.S. Banking Industry

April 7, 2017

Authors

Robert Klingler and Jonathan Hightower

Landscape of the U.S. Banking Industry

April 7, 2017

by: Robert Klingler and Jonathan Hightower

(A print-ready version of this post is also available: Landscape of the U.S. Banking Industry.)

From 2006 through 2016, the number of insured depository institutions in the United States has fallen from 8,691 charters to 5,922, a decline of 2,769 charters or a 32% loss.  This headline loss number is worth talking about, but is neither news nor new.  The loss of charters is a frequent source of discussions around bank board rooms, stories from trade press, and chatter at banking conferences.  The number of insured charters has also been in steady decline, with at least 33 years of declining numbers.

However, a deeper dive into the numbers reveals some unexpected trends below the headline 32% loss of charters.

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