Calling All Bank Directors

Preparing for Your Next bank Examination in Light of Recent Bank Failures | Calling All Bank Directors Ep. 50

The recent failures of Silicon Valley Bank, Signature Bank, and First Republic Bank have upped the ante for your next examination. Expect it to be rigorous and searching for opportunities to take enforcement action against your bank, directors, and officers.

Banking agencies have ramped up their review of bank liquidity, investments, and asset/liability management (ALM) in response to the failures and a flood of enforcement actions is anticipated. To help banks and their boards of directors and officers prepare, host David Baris is joined by David D. Gibbons to discuss preparing for your next examination.

David Gibbons has extensive financial services experience with a unique blend of public and private sector experiences as a senior bank regulator, a practicing Chief Risk Officer, a financial services risk management and regulatory advisor, and a testifying expert. He serves as a member of AABD’s Task Force studying how a bank director’s risk of personal liability may be mitigated consistent with safe and sound banking.

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Thanks to our guest, David Gibbons: https://daviddgibbons.com. 

Calling All Bank Directors is the podcast of the American Association of Bank Directors. AABD has been your advocate since 1989 and our podcast, hosted by AABD President David Baris, is designed to keep you well informed to help protect both you and your bank.

Questions? Contact dbaris@aabd.org.

New Fair Lending Challenges Facing Banks and Bank Directors and Officers | Calling All Bank Directors Ep. 49

In this episode, host David Baris is joined by Troutman Pepper Partners Lori Sommerfield and Chris Willis to discuss changes in fair lending regulation and supervision that represent new challenges to banks and their directors and officers. They are co-authors of the Practical Handbook on Fair Lending for Bank Directors and Executive Officers, 2nd Edition.

Lori and Chris identify the important changes that have occurred since the Handbook’s first edition in 2016, including more regulatory emphasis and actions relating to redlining, disparate impact, and redefinition of the statutory term “fair” to include discrimination.

At Troutman Pepper, Lori and Chris represent banks, bank directors, and other bank officers in fair lending compliance, enforcement, examinations, and litigation. 

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Thanks to our guests:

• Lori Sommerfield: https://www.troutman.com/professionals/lori-sommerfield.html 
• Chris Willis: https://www.troutman.com/professionals/chris-j-willis.html 

Calling All Bank Directors is the podcast of the American Association of Bank Directors. AABD has been your advocate since 1989 and our podcast, hosted by AABD President David Baris, is designed to keep you well informed to help protect both you and your bank.

Questions? Contact dbaris@aabd.org.

Planning for a Sale of Your Bank | Calling All Bank Directors Ep. 48

In this episode, David Baris is joined by Dave Martin to discuss the factors that influence banks to sell, and how the selling bank can plan to maximize its appeal to a buyer and the consideration paid in the transaction.

Dave details the essential role that the buyer/seller ratio, which considers the number of potential buyers that exist in the bank’s market, plays in the likelihood that a bank can be sold. He also explains the practical steps that a bank can take to improve its attractiveness and value to a buyer.

Dave Martin advises banks on whether it is an opportune time to sell the institution and how to do it. With Mellon and several investment firms, he has represented banks in numerous bank mergers and acquisitions.

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Thanks to our guest, Dave Martin.

Calling All Bank Directors is the podcast of the American Association of Bank Directors. AABD has been your advocate since 1989 and our podcast, hosted by AABD President David Baris, is designed to keep you well informed to help protect both you and your bank.

Questions? Contact dbaris@aabd.org.

The Search For and Selection of Great Bank Directors | Calling All Bank Directors Ep.47

In this episode of Calling All Bank Directors, Women2Boards Founder and CEO Nancy Sheppard addresses how to go about finding great bank directors. 

She identifies specific strategies to tap into a variety of talented and qualified people from a variety of backgrounds, including women, ethnic minorities, and those outside the community or communities served by the bank.

Prior to founding Women2Boards, Nancy served for over 20 years as CEO of Western Independent Bankers (now the Western Bankers Association).

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Thanks to our guest, Nancy Sheppard: https://women2boards.com/ 

Calling All Bank Directors is the podcast of the American Association of Bank Directors. AABD has been your advocate since 1989 and our podcast, hosted by AABD President David Baris, is designed to keep you well informed to help protect both you and your bank.

Questions? Contact dbaris@aabd.org.

Federal Banking Agencies’ Proposed CRA Regulations: What Are the Pitfalls? | Calling All Bank Directors Ep. 46

In this episode, host and AABD President David Baris is joined by Dr. Ken Thomas, Founder and CEO of Community Development Fund Advisors, to address how proposed CRA regulations, once finalized, can impact your bank. A lot depends on the size of your bank. Banks with assets of $600 million or more will be facing an additional measure of CRA performance (retail lending) and those over $10 billion will have additional challenges.

The comment period expires on August 5, 2022.

Ken is a leading expert and author of the seminal work on CRA. He taught banking and monetary economics at Wharton for 42 years. He is the Chair of the Nominating and Corporate Governance Committee of a community bank.

Community Development Fund Advisors manages the Community Development Fund, which enables banks to invest in CRA-qualified investments.

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Thanks to our guest, Dr. Ken Thomas: https://www.linkedin.com/in/ken-thomas-2371a8125/ 

Calling All Bank Directors is the podcast of the American Association of Bank Directors. AABD has been your advocate since 1989 and our podcast, hosted by AABD President David Baris, is designed to keep you well informed to help protect both you and your bank.

Questions? Contact dbaris@aabd.org.

Bank Merger Trends and Bank Capital Needs | Calling All Bank Directors Ep. 45

In this episode, host David Baris is joined by Bill Boyan, a managing director at Piper Sandler, to address recent trends in bank mergers – including valuations, forms of consideration (stock, cash or a combination), and factors influencing their direction.  Bill will also discuss how banks can make themselves more valuable and attractive to acquirers, and anticipated capital needs and the movement from sub debt to equity.

Bill has managed numerous bank mergers and capital raises in his long and successful career. A presentation to accompany this discussion is available here: https://bit.ly/3Pkvxuw

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Thanks to our guest, Bill Boyan: https://www.pipersandler.com/2col.aspx?id=5777 

Calling All Bank Directors is the podcast of the American Association of Bank Directors. AABD has been your advocate since 1989 and our podcast, hosted by AABD President David Baris, is designed to keep you well informed to help protect both you and your bank.

Questions? Contact dbaris@aabd.org.

Misalignment of Incentive Compensation | Calling All Bank Directors Ep. 44

In this episode, host and AABD President David Baris is joined by Jeff Marsico, president and founding shareholder of the Kafafian Group, to address how the common misalignment of executive incentive compensation with the compensation of other bank employees can be injurious to banks' profit goals. 

For example, if a loan officer is rewarded for volume and not for the profitability of the loan portfolio, that might lead the officer to sacrifice profitability for volume and act inconsistent with the bank’s efforts to reach ROE goals.

As president and a founding shareholder of the Kafafian Group, Jeff oversees and works on all lines of the banking business, with a focus on strategy, profitability, and financial advisory. He has analyzed and facilitated hundreds of strategy development engagements for community financial institutions.

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Thanks to our guest, Jeff Marsico: https://kafafiangroup.com/team/jeffrey-p-marsico/ 

Calling All Bank Directors is the podcast of the American Association of Bank Directors. AABD has been your advocate since 1989 and our podcast, hosted by AABD President David Baris, is designed to keep you well informed to help protect both you and your bank.

Questions? Contact dbaris@aabd.org.

Inflation and How to Prepare for It | Calling All Bank Directors Ep. 43

In this episode, host and AABD President David Baris is joined by Ethan Heisler, who will address the Fed’s timetable on rate hikes and quantitative tightening, the impact of the Fed draining reserves on bank deposit growth and strategies to address it, and questions that bank directors should be asking management on strategy and technology spending.

Ethan is the Senior Director for Strategy at Kroll Bond Rating Agency.  He is the Editor of the Bank Treasury Newsletter, a monthly publication directed to financial institutions at the Treasury level. He was a Managing Director in Fixed Income Sales and headed up Citi’s Bank Treasury Resource Group.  Before that, he was the Staff Director of Bank Analysis at the Federal Reserve Bank of New York.

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Thanks to our guest, Ethan Heisler: https://www.linkedin.com/in/ethan-heisler-58b370119/ 

Calling All Bank Directors is the podcast of the American Association of Bank Directors. AABD has been your advocate since 1989 and our podcast, hosted by AABD President David Baris, is designed to keep you well informed to help protect both you and your bank.

Questions? Contact dbaris@aabd.org.

Financial Crises: Preparing for the Next Crisis (Part 2) | Calling All Bank Directors Episode 42

In this episode, Tom Vartanian talks with host David Baris about how bank boards of directors can predict when the next financial crisis is coming, what bank boards can do to prepare for the risks of a financial crisis, and how they can avoid risks created by regulation.

Tom is the former Executive Director and Professor of Law, Program on Financial Regulation, at GMU’s Antonin Scalia Law School, a partner at both Dechert and Fried Frank, and General Counsel to the FHLBB and FSLIC.  He currently is a partner at the law firm of Vartanian & Ledig.

He is the author of 200 Years of American Financial Panics: Crashes, Recessions, Depressions and the Technology that will Change it All.

This is the second part of our financial crises discussion with Tom.

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Thanks to our guest, Tom Vartanian: http://www.vllawfirm.com/  

Calling All Bank Directors is the podcast of the American Association of Bank Directors. AABD has been your advocate since 1989 and our podcast, hosted by AABD President David Baris, is designed to keep you well informed to help protect both you and your bank.

Questions? Contact dbaris@aabd.org.

 

Click here to listen to episode 42 or subscribe wherever you get your podcasts.

 

This is the second of two discussions with Tom.

Financial Crises: Why, When, How (Part 1) | Calling All Bank Directors Episode 41

In this episode, Tom Vartanian will address why the U.S. has experienced many more financial crises than most other developed countries and the role of government in causing or contributing to those events.  He will also discuss what may cause the next financial crisis.

Tom is the former Executive Director and Professor of Law, Program on Financial Regulation, at GMU’s Antonin Scalia Law School, a partner at both Dechert and Fried Frank, and General Counsel to the FHLBB and FSLIC.  He currently is a partner at the law firm of Vartanian & Ledig.

He is the author of 200 Years of American Financial Panics: Crashes, Recessions, Depressions and the Technology that will Change it All.

*****

Thanks to our guest, Tom Vartanian: http://www.vllawfirm.com/  

Calling All Bank Directors is the podcast of the American Association of Bank Directors. AABD has been your advocate since 1989 and our podcast, hosted by AABD President David Baris, is designed to keep you well informed to help protect both you and your bank.

Questions? Contact dbaris@aabd.org.