Western Independent Banker - March/April 2009 - (Page 12)

Overcoming the Liquidity Roadblock This second area of focus is how you can increase profitability today and overcome the “liquidity roadblock” of the future: growing core deposits. That will reduce your bank’s cost of funds, increase the bank’s overall value and lead to loan growth. Yes, the competition for deposits is fierce—you may already be impacted by national and larger regional banks’ increasing presence in your local markets. This is why it’s even more important to make this vital area a priority for your bank, from the board to the branch. Here’s how to get started: Establish a solid plan for deposit growth around an aggressive pursuit of local deposits. Assess where you’re getting the most growth and what product(s) is driving it. Do you have a niche that you can leverage? How does your bank stack up against competitors (in growth, service levels, etc.)? Set realistic goals for growing deposits in today’s market and involve the branches: hold them accountable to targets, give them tools to track their progress daily and reward improved performance. Be sure to consistently measure and manage actual bank performance compared to the plan, and adjust accordingly. Lastly, keep this whole process as simple as possible. Communicate. Ensure you are communicating on all fronts to instill continued trust in your local market. Educate employees about how critical core deposits are to the bank’s future and ensure they understand individual and overall bank goals. It’s also imperative to keep them informed of industry developments and their impact on the bank; they are your front line to the customer and must be able to respond confidently, appropriately and knowledgeably to customer questions. Additionally, it’s a good time to get back out on the speaking circuit as the resident expert on the banking industry. Provide exceptional service. One thing you can control today is what happens when a customer walks into your bank (i.e. the messages they receive, the information you provide, the environment, etc.) Extraordinary service will go a long way in securing new deposits, and ultimately, future loan growth. Take action to truly differentiate your bank through service. “Cashing in” on Liquidity By acting today to automate the regulatory side of liquidity and focusing the bank’s attention on generating core deposit growth, you will help your institution get a leg up on the liquidity crisis. Yes, liquidity is a necessity, but you can put liquidity to work for your bank by leveraging it to increase the bank’s profitability and long-term value. There will never be a better time to get started. Note: Banker’s Dashboard surveyed financial managers from a cross section of community banks across the country to determine and measure the areas where they are currently focusing efforts to better manage their banks, and to identify best practices they are deploying in order to meet their improvement objectives. To obtain a copy of the survey report, please visit www.bankersdashboard.com. Chris Bledsoe is CEO and co-founder of Banker’s Dashboard (www.bankersdashboard.com) in Stockbridge, Ga. He can be reached at 770-507-9894, ext. 101, or Chris. Bledsoe@BankersDashboard.com. 12 411665_Equilar.indd 1 12/20/08 10:56:52 AM www.wib.org Western Independent Banker http://www.equilar.com http://www.bankersdashboard.com http://www.bankersdashboard.com http://www.bankersdashboard.com http://www.bankersdashboard.com http://www.wib.org

Table of Contents Feed for the Digital Edition of Western Independent Banker - March/April 2009

Western Independent Banker - March/April 2009 Contents A Message from the President & CEO Profitable Liquidity: Yes, You Can Non-Performing Assets: The Keep Versus Sell Decision Is BOLI the Way to Go? The Troubled Asset Relief Program and Its Eff ect on Executive Compensation TARP Money or Not, Secondary Offerings Belong in Your Plan 52nd Annual Conference Private Equity: Another Capital Option Strengthening Your Bank’s Bottom Line by Adapting to Difficult Times Managing Your Branch Network Capital Dealing with a Hard Insurance Market WIB Service Corporation Report WIB Calendar New Members Index of Advertisers Advertiser.com

Western Independent Banker - March/April 2009

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