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Business Briefing

From monthly archives: April 2018

We are pleased to present below all posts archived in 'April 2018'. If you still can't find what you are looking for, try using the search box.

What’s the Value of a Meaningful Relationship with your Banker?

It’s been said, “The best way to predict the future is to create it.*” To help create your future, you need the right strategic partnerships in place. This includes a strong partnership and meaningful relationship with your banker. While having access to various banking services, including depository accounts or lending, is important, having a relationship with your banking relationship manager could mean a lot more to you and your business than you may think. There are six areas where having a solid partnership with your banker helps your business: Act as your business partner. Most commercial banks have dedicated relationship managers who work specifically with you. Banking services are evolving and improved upon regularly, making it difficult for you to stay up-to-date on what the latest services are for your business. An experienced relationship manager will get to know your business and recommend new products and services that would enhance your daily operations, while makin ...

What is the Value of My Deposits?

by Andrew Zinn, Senior Vice President S. California Commercial Real Estate Banks may be one of the most misunderstood institutions in the world, despite being heavily regulated. At its core, every bank has equity capital that functions as a cushion between its assets and liabilities, currently averaging just 13.55% of total assets for U.S. banks. Unlike an individual, a bank’s loans are its assets and its deposits are its liabilities. Banks lend money to generate interest income; conversely, paying out interest on their deposits. The spread between the two is known as net interest margin (“NIM”) and it’s a key financial metric upon which all banks are measured (FDIC reported in October 2017 the average NIM was 3.65%). Since the Great Recession, banks have operated in a historically-low interest rate environment. Borrowers have generally benefitted from historically-low rates, while banks have had to pay next to nothing for their deposits. Since the FED has begun raising short ...