Independent Banker - January 2019 - 44

Community Bank CEO Outlook 2019
ADDING EARNINGS
Increasing earnings and profits is a perennial issue
for community banks. Many wonder what a rising
interest environment will mean for the bottom line.
Summit Bank in Oakland, Calif., is enthusiastic
about its future. Half of the bank's loans are
floating tied to prime, and its commercial and
industrial loans-30 percent of its portfolio-are
largely in floating lines of credit. " To have 50
percent of our portfolio floating in an upward
interest moving environment will really benefit us, "
CEO Thomas Duryea says.
Bank of Springfield is hopeful that customer
profitability software will help them serve clients
better while enhancing income.
" When we were much smaller and had one
branch with $20 million, when you came back
everyone knew everybody, " CEO Tom Marantz
says. " It's harder to know everyone now because
I can't see someone who comes into an office
somewhere else. We've done a lot of manual
reporting, but this will make it easier to know if
a customer has been in. We want to know our
customers better. "
What initiatives does your
community bank anticipate
introducing, if any, to increase its
income in 2019?
6.90%
Merge with another
community bank
11.72%
Add or
increase
service
fees
64.83%
Grow an existing
line of business
16.55%
Add a new line
of business or
a new service
" We made a commitment to stay
independent for another 20 to 30
years. We're excited for our legacy
to continue in the community. "
-Paul C. Adamski, Pineries Bank
employees with floor space for up to 30, including
Adamski's two grown children, who will take over the bank
when he semi-retires in the next year or two.
" We made a commitment to stay independent for
another 20 or 30 years, " he says. " We're excited for our
legacy to continue in the community. "
It's a challenge all community banks will face as they try
to demonstrate their relevance to customers while staying
true to their relationship-based business models.
" There is no kicking back and enjoying the fruits
of our labor, " Timmerman says. " We are constantly
moving forward. "
Kelly Pike is a writer in Virginia.
From our sponsor
Before you establish growth targets,
are you relevant to your next
generation of customers?
Millennials are the largest generation to be
born in the history of the United States-what
products and services are you offering to attract
the next generation? Digital offerings available
on a mobile phone are a key driver, but perhaps
the biggest driver of all is opportunity. A $30
trillion opportunity. Millennials are in line to inherit
$30 trillion from their baby boomer parents. How
they decide to bank this money-or not bank this
money-will largely determine the success or
failure of community banks. So, before you can
target growth, a bigger question to ask yourself is,
" How am I positioning my bank to be relevant and
offer greater value compared to other choices in
earning the next generation's business? "
-Keith Nolan, VP partner and alliance sales,
FIS Payments
44 Q ICBA Independent Banker Q January 2019
Independent Banker - January 2019

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