Western Independent Banker - March/April 2008 - (Page 8)

A Message From the President & CEO Enhancing the Value of Your Franchise Seven Traits of Well-Managed Banks AS WE ENTER 2008, it’s chilling to see how the stock price and market capital of many of our banks have plummeted. Banks that have great management teams and a history of good performance have not been spared the market’s harsh treatment, which assumes the worst about all banks right now. But, this cycle will pass, and well-managed banks that have the fundamentals of a good franchise are likely to bounce back. One measure of your bank’s success is your franchise value. I’ve listed below seven fundamental traits of well-managed banks, which will help you increase the value of your franchise. As a result, most of these areas will be top priorities for WIB programs and services. 1. Core deposits are king. It is pretty universally known now that core deposits will greatly enhance the value of your franchise, both in the eyes of the investment bankers and in the positive impact on your net interest margin. WIB will feature programs dealing with core deposit enhancement at many of our conferences this year. 2. Great people make the all difference. As an independent bank, the people truly are the differentiators among the players today. From the management team through the tellers to the board, without a competent dedicated team, your results will be mediocre. From our HR & Training Forum, which specifically focuses on what you need to do in this changing economic marketplace, to the various components of our conferences and workshops, WIB will help you retain and educate your team. 3. Credit quality matters. Now that the tide is receding, it will be easier to see who doesn’t have a bathing suit. Is your underwriting appropriate for today’s changing landscape? Are you able to get a true picture of your loan portfolio? A new workshop – Uncovering Portfolio Soft Spots in a Credit Crisis is an example of ways WIB can assist you to look for warning signs in your own credit portfolio. 4. A business development culture is a must. Most community banks indicate that they are relationship banks. That’s great, but too often relationship managers just want to service the customers 8 they have today. In this environment, that kind of attitude won’t enhance your franchise value. WIB’s Business Development & Sales Forums launched last year help focus your staff on execution of a business development culture. 5. Technology decisions are strategic. If your bank makes technological advances to enhance your core competencies that make a difference to your customers, keeping those customers is more certain. Smart implementation, with your customers’ needs in mind, will enable you to equal, or pass, the bells and whistles offered by nationwide banks. Remote deposit capture is an example of technology that qualifies. And, if your technology cuts costs, improves service and reduces risks, your franchise value grows. WIB’s is focused on helping you learn more about the “need-to-have” technologies through sessions at our conferences and at our Annual Bank Technology Summit. 6. Good partners are essential. When you outsource to suppliers, you put the value of your franchise at risk because your reputation and customers’ information is in their hands. Good vendor management is essential, but is quickly becoming more complex. WIB Service Corporation can help you narrow down your selection of partners. Look to us to see if we have a recommended product that has undergone our vigorous selection process. 7. Great bankers learn from other great bankers. As a community bank, your resources are limited. You can’t afford the time or money for costly mistakes. Learning from other bankers who have traveled similar roads will help you to reduce costs, execute more effectively and operate more efficiently. WIB is legendary in our history of peer group sessions – both the structured sessions as well as the “in-thehallway” informal sessions you will experience at most WIB events. Sincerely, Nancy E. Sheppard President & CEO www.wib.org Western Independent Banker http://www.wib.org

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Western Independent Banker - March/April 2008 Contents A Message from the President & CEO The Forest Through the Trees Differentiating Your Bank Through the Five Senses 51st Annual Conference for Bank Presidents, Senior Officers and Directors Building Franchise Value Deposit Gathering Steps to Determine ROI on a Successful Brand Want to Improve Customer Loyalty? Managing the Change Your Bank Needs to Grow Ten No-Fail Strategies to Create Profit-Rich Growth Niche Banking Rethinking ROI Using The Reserve’s On-Balance-Sheet Sweep to Their Advantage WIB Calendar Welcome New Members Index to Advertisers Advertiser.com

Western Independent Banker - March/April 2008

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