Loan growth. Ears of bank CEOs across the country perk up when those two words are spoken, especially now in 2022. But there’s a caveat to that as well.
Grow loans too quickly and regulators will be all over you, assuming all manner of misdeeds. Too slowly and your earnings and NIM suffer.
Many bank CEOs tell me they’re doing well…but they see danger on the horizon with small businesses being squeezed from every angle at the same time.
The smart ones from the highest-performing banks are the most nervous. That’s always a sign of what is next to come.
What’s the biggest mistake made during a strategic planning day? That’s easy.
Lack of intentional congruence.
If you knew what the very top-performing banks knew, could you become a top-performing bank?
If strategic plans actually exist to create predictable growth, profit, and bank culture, why is it that most of them do the opposite?
The coming bank consolidation has been predicted for years. In fact, the next 18 months are destined to be a major “shake out” period when weak banks will be acquired or closed—and banks who are in a position to capture the best customers in town will become stronger and more profitable.
If a merger or acquisition opportunity like this landed unexpectedly in your lap…would you be ready?
Most banks wouldn’t be. Unfortunately, they’ll suffer years of pain, lost productivity and even reputational damage from what was previously viewed as the opportunity of a lifetime.
Here’s what I know from decades of guiding banks through mergers and acquisitions: You have no business doing an acquisition if you’re not ready.