"In Community Banking Strategies, Vince Boberski not only gives unique and penetrating insights into the triggering events that caused the áGreat Recession' of 2008-2010, but also outlines effective and powerful forward-thinking strategies for community bankers to adopt as they cope with the new financial and market realities that lie ahead. This book is a must-read for any community banker wanting to take advantage of a generational shift in the financial markets and position the bank to thrive in future years."---Comden R. Fine, President and CEO, Independent Community Bankers of America
"Community Banking Strategies provides timely and sensible advice to the banking industry. Vince Boberski makes good use of historical perspective to provide credible evidence that the balance sheet, earnings, and risk management strategies he outlines do indeed work."---Kent Townsend, Executive Vice President and CFO, Capitol Federal Financial
"The book provides a great overview for community bank managers, directors, and investors for perspective on how to evaluate bond portfolios, wholesale funding, and derivative strategies in the context of managing the dynamics between the core bank and the wholesale bank as it relates to the bank's overall objectives."---Jeff K. Davis, CFA, Managing Director, Guggenhim Securities, LLC
"This book contains critical information for a community bank manager at any level. It speaks in plain terms of the factors creating the global liquidity crisis in 2008 and 2009, explains how broker/dealers operate from an insider's perspective, and has a bird's eye view of the pros and cons of certain popular investment strategies. I highly recommend it."---Jim Reber, President and CEO, ICBA Securities
With Wall Street reeling and big banks under pressure, community banks have an opportunity to strengthen their position in the marketplace. By reconnecting with local businesses and consumers. increasing core deposits. and carefully managing their investments and balance sheet, community banks can attract underserved clients form larger competitors.
With Community Banking Strategies, author Vincent Boberski---a financial professional who has spent years working with senior management and the boards of directors at local banks---skillfully reveals how community banks can compete against bigger institutions in the wake of the most significant financial crisis since the 1930s.
Beginning with a novel analysis of community bank and their relationship to both national and global financial competitors. he insightfully places the meltdown of the financial markets and the resulting Great Recession into a historical context. With a bold look into the future. Boberski outlines the risks and trends that will shape both the industry and the economy as a whole. He sets clear strategic goals that will allow community bank managers. directors, and investors to profit from a broad localization of American finance.
Chapter by chapter, Boberski offers practical advice on many of the most important issues in this area, including portfolio management. balance sheet management, and dealing with interest rate and credit cycles. Along the way, Boberski also offers in-depth insights on establishing and encouraging the lasting client relationships that produce the most essential piece of the banking business: core deposits, the heart of any good local bank.
Written in a straightforward and accessible style, this reliable resource is a must-read for community bank executives, directors, investors, and the brokers who work with them. if you want to gain a better understanding of the strategies that consistently lead to success in this field, this book is the best place to start.
Preface
Acknowledgments
1 A New Era for Community Banking 1
A Five-Forces Analysis of the Competitive Position of Community Banks 3
Rivalry Within the Industry and New (Really Returning) Entrants 7
The Bargainging Power of Suppliers and Customers 9
The Threat of New Products 12
Has the Community Banking Model Changed? 13
Winners and Losers 14
The Revolution of 2008 17
The Nationalization of Fannie, Freddie, and Poof! No More Private Securitization 17
The Loss of Wall Street Balance Sheets: Who Moved My Primary Dealer? 19
The Collapse of the Consumer: An Escalade for Every Driveway 20
The Collapse of the Housing Market: Jingle Mail, Jingle Mail, Jingle All Way 20
A Look Forward 21
Consolidation and Less Competition for Community Banks from Larger Institutions 22
Significantly Improved Liability Pricing 22
More Big Failures 23
A Recession Deeper Than the Early 1980s 23
Housing Prices Fail to Rise 24
The Securitization Engine Fails to Restart 24
The Treasury Effectively Becomes an Activist Shareholder 24
Crowding Out by the Treasury 25
A Prolonged Period of Stagflation Driven by Skyrocketing Energy Costs and Permanently Higher Tax Rates 26
Where, Incidentally, Is the Next Bubble Going to Be If Not in Goods Prices? 27
2 Historical Credit Crises and What's Different Now 29