THINKING STRATEGICALLY: Strengths, Opportunities

Transcript:THINKING STRATEGICALLY: Strengths, Opportunities:
THINKING STRATEGICALLY: Strengths, Opportunities and Threats to the Mutual Model MAXIMIZING MUTUALITY PENNSYLVANIA ASSOCIATION OF COMMUNITY BANKERS June 2, 2021 Jim Clarke, Ph.D. Clarke Consulting, Villanova, Pennsylvania JJClarke2@aol.com Dr. James Clarke, Ph.D. has served on the faculty of the ABA’s Stonier National School of Banking, New England School of Banking, and the Southwest Graduate School of Banking. He also serves as a faculty member for state banking schools. Jim conducts seminars on ALM annually for national associations such as Risk Management Association [RMA] and Financial Managers Society (FMS) as well as state bankers’ associations, including PACB. Jim facilitates strategic planning for community banks throughout the country. Many of Jim’s clients have been mutual associations providing him with an in depth understanding of the mutual model. Dr. Clarke is a frequent convention and meeting speaker. In 2019-21 Jim spoke at the Connecticut, and Pennsylvania Community Bankers conventions, Massachusetts, Ohio, Pennsylvania, Texas and Maine Directors Conferences, and PACB and Massachusetts Mutuality Conferences. Jim has a B.A. in Economics from LaSalle College and a Ph.D. in Economics from the University of Notre Dame. He is a former faculty member in the Finance Department at Villanova University. He has served on the board of five community banks (including three mutual associations) and an investment company. 2 Outline Understanding the mutual business model. Assessing your opportunities in the current environment. Assessing the threats to the mutual model. The Board’s role in the planning process, be bold, but realistic. Preserving the Mutual Model 3 Pennsylvania Banking Environment 4 Large Money Center Banks  Wells Fargo, Bank of America, and Chase which is new to the state, but growing in Philadelphia market. Wells Fargo and Bank of America have significant market share in Eastern Pennsylvania. Regionals  Citizens, PNC, M&T, Santander, TD, Key, and Truist. These banks have significant market share throughout Pennsylvania. State Regionals  FNB, Fulton, Northwest, S&T and WSFS. These are primarily in state banks that have offices throughout much of the state of Pennsylvania. Pennsylvania Community Bank Environment Stock Commercial Bank  These institutions are prominent within the state of Pennsylvania. These banks make up the majority of the banks in the state and rank in size from $5 billion down to less than $100 million. Mutual Savings Banks and Savings & Loan Associations  Based on my count approximately 35 institutions broken down as follows:  > $1 billion – Five institutions