On October 24, 2023, the federal banking agencies adopted a new Community Reinvestment Act (CRA) regulation that revolutionizes the obligations of banks with assets of $600 million or more. On this episode of Calling All Bank Directors, our guest Ken Thomas, a leading expert in CRA for many years, explains what boards of directors can do to support compliance with the new regulation. AABD recorded this podcast episode prior to the filing of a lawsuit by various bank trade associations. Unless the regulation is overturned or withdrawn by the agencies, bank boards and management of banks of $600 million or more will face huge challenges. Ken is the president and CEO of Community Development Fund Advisors and author of the seminal book on CRA. He taught at Wharton Business School for 42 years and serves on the Board of Directors of a community bank. ***** Thanks to our guest, Ken Thomas: https://www.communitydevelopmentfund.com/about/ 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.
On October 24, 2023, federal banking agencies adopted a new Community Reinvestment Act (CRA) regulation that revolutionizes the obligations of banks with assets of $600 million or more. The rule will move banks away from the original intent of CRA, which was to encourage banks to meet the credit needs of their low to moderate income communities. In this episode of Calling All Bank Directors, Ken Thomas, a leading expert in CRA for many years, explains what the regulation says and what has changed from the old rule. He believes that the new rule will result in nearly 10 times the number of failing banks – from just over one percent to around 10 percent. AABD recorded this podcast episode prior to the filing of a lawsuit by various bank trade associations Ken Thomas is the president and CEO of Community Development Fund Advisors and author of the seminal book on CRA. He taught at Wharton Business School for 42 years and serves on the Board of Directors of a community bank. ***** Thanks to our guest, Ken Thomas: https://www.communitydevelopmentfund.com/about/ 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 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. ***** 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.
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. ***** 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.
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. ***** 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.
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). ***** 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.
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. ***** 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.
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 ***** 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.
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. ***** 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.
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. ***** 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.
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. ***** 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.
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.
In this episode, host and AABD President David Baris is joined by Michael Glotz, co-founder and CEO of Strategic Risk Advisors, to advise bank boards of directors on key ERM questions such as: Does your bank have an ERM policy? Does that policy contain a risk framework (and what are the components of that framework)? Does the framework define responsibilities for the three lines of defense? Are management committee responsibilities defined to oversee identified risks? Has the board established a framework in which to oversee the numerous risks facing your institution? And more Michael will also address the importance of management frequently identifying the main risks facing the bank for the benefit of management and the board, how management is addressing those risks, reporting on key strategic initiatives, and how management is addressing the risks to achieving those initiatives. ***** Thanks to our guest, Michael Glotz: https://www.srarisk.com/people/michael-glotz 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.
In this episode, banking and corporate attorney Dub Sutherland will discuss how to plan for and negotiate agreements involving core challenger systems as an alternative or adjunct to the Old Guard core systems, and the role of your board of directors. Dub is a partner at Kennedy Sutherland and former community bank CEO. As an advisor to community banks, he guides his clients in the implementation of new business models and identification of new technologies to maintain relevancy in a rapidly changing environment. ***** Thanks to our guest, Dub Sutherland: https://www.linkedin.com/in/dub-sutherland-1552686/ 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.
In this episode, banking and corporate attorney Dub Sutherland will discuss whether your bank should consider core challenger systems as an alternative or adjunct to the Old Guard core systems and, if so, how. He will also address the role of the board of directors in guiding management to evaluate, in concert with outside advisors if needed, alternative systems. Dub is a partner at Kennedy Sutherland and former community bank CEO. As an advisor to community banks, he guides his clients in the implementation of new business models and identification of new technologies to maintain relevancy in a rapidly changing environment. ***** Thanks to our guest, Dub Sutherland: https://www.linkedin.com/in/dub-sutherland-1552686/ 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.
Host and AABD President David Baris is joined again by Remedy Consulting partner Charlie Kelly to continue their conversation on what bank directors need to know about bank technology and questions to ask their CEO. Charlie will discuss the bank board role in technology contracts, the biggest risks in those contracts, the special events that need to be anticipated during the life of the contract, the time needed for renegotiating contracts or finding another vendor and conducting deconversions, and pricing and negotiation of technology contracts. Remedy Consulting advises banks and credit unions on system selections and contract negotiation, vendor management, mergers and acquisitions, and technology strategy. Charlie hosts a thought leadership podcast for bank executives called BankTalk. Prior to Remedy, Charlie served as the Vice President of Product Pricing and Contracts at Fiserv, where he was responsible for negotiating client contract setting products and pricing strategy. ***** Thanks to our guest, Charlie Kelly: https://www.linkedin.com/in/charlie-kelly1/ 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.
This week, Host and AABD President David Baris is joined by Remedy Consulting partner Charlie Kelly to discuss what bank directors need to know about bank technology and questions to ask their CEO. Charlie will discuss the banking products that drive the need for technology, questions on whether to rely on a single vendor, planning for the long process of renewing a core processing contract or finding a new vendor, and gaining an understanding of the bank’s current and future technology needs that can support and strengthen the customer relationship. Remedy Consulting advises banks and credit unions on system selections and contract negotiation, vendor management, mergers and acquisitions, and technology strategy. Charlie hosts a thought leadership podcast for bank executives called BankTalk. Prior to Remedy, Charlie served as the Vice President of Product Pricing and Contracts at Fiserv, where he was responsible for negotiating client contract setting products and pricing strategy. ***** Thanks to our guest, Charlie Kelly: https://www.linkedin.com/in/charlie-kelly1/ 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.
This week, Host and AABD President David Baris is joined again by Will Taylor to discuss current and prospective issues affecting your bank’s ALCO and investments. Will has been the Director of the Portfolio Management Group at Vining Sparks. He has extensive knowledge and experience of balance sheet management techniques and investments. He has served on the faculty of Southwest School of Banking, Mid-South School of Banking, and the Western Independent Bankers Bond University. Will discusses the current and future prospects for interest rates and how a bank may plan for interest rate changes. He will also provide advice on how bank boards and ALCO committees can play an important role in overseeing this risk and the importance of ALCO policies and implementation. ***** Thanks to our guest, Will Taylor. 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.
This week, Host and AABD President David Baris is joined again by Will Taylor to discuss current and prospective issues affecting your bank’s ALCO and investments. Will has been the Director of the Portfolio Management Group at Vining Sparks. He has extensive knowledge and experience of balance sheet management techniques and investments. He has served on the faculty of Southwest School of Banking, Mid-South School of Banking, and the Western Independent Bankers Bond University. Will discusses the current and future prospects for interest rates and how a bank may plan for interest rate changes. ***** Thanks to our guest, Will Taylor. 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.
Host and AABD President David Baris is joined again by Will Taylor to discuss current and prospective issues affecting your bank's ALCO and investments. Will has been the Director of the Portfolio Management Group at Vining Sparks. He has extensive knowledge and experience of balance sheet management techniques and investments. He has served on the faculty of Southwest School of Banking, Mid-South School of Banking, and the Western Independent Bankers Bond University. Will discusses the current and future prospects for interest rates and how a bank may plan for interest rate changes. He also provides advice on how bank boards and ALCO committees can play an important role in overseeing this risk. ***** Thanks to our guest, Will Taylor. 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.