"Do what you can, with what you have, where you are." Theodore Roosevelt
2st Quarter
2020

ISSUE
No. 21

  IZALE Financial Group eNews
STAY INFORMED WITH IZALE

It is a monumental understatement to say these are interesting times. We trust that you, your family, and your colleagues are healthy and managing as best you can during this pandemic, especially as we attempt to restart our engines. While I suspect that some things will not be the same as they were, others won't change. For example, the value of BOLI as an asset. Or the wisdom from our friends in this eNews edition.

 

Enjoy your summer and continue to be safe. We look forward to connecting with you soon!

 

Scott & Your Friends at IZALE

Scott Richardson, Brenda Haag, Bruce Barge, Chris Richardson, Deb Hardimon, Fannie Mae Pantaleon, Gary Wilberg, Jeff Prescher, Joe Tripalin, Patrick Costello and Phil Aderton
 
Looking Forward
COVID19
Financial Next Steps 

by IZALE Friend
Todd Taylor of
Taylor Advisors 
 
 
As financial institutions across the nation cope with market and economic challenges created by COVID-19, anticipating next steps to manage balance sheet "risks" AND improve or protect profitability is becoming increasingly more difficult.
Below are excerpts from Taylor Advisors' four-part Pandemic Mini-Series. Please click the corresponding hyperlinks below to read the eBriefs associated with the four ALCO positions of liquidity, capital, investments, and interest rate risk.
In Part 1 of our mini-series, we discussed the importance of robust liquidity stress testing, a comprehensive contingency funding plan, and anticipating potential changes in loan and deposit portfolios. 
In Part 2, we discussed potential impact on capital from asset quality deterioration, margin compression, and other balance sheet changes.
In Part 3, we discussed investment strategies, as portfolios and cash usually make a meaningful contribution to institution's overall interest income.  
In Part 4, we turn our attention to interest rate risk management and look at challenges relating to exposures to falling/low rates.  Many financial institutions are beginning to feel pressure on interest income and earning asset yields, frequently compounded by funding costs already at historically low levels.
We hope the topics covered will benefit you and your clients as you progress through these unprecedented times.  
 
 
Contact Todd Taylor of Taylor Advisors, LLC
email  
 
 
click to register
Demystifying BOLI
Webinar 

with Scott Richardson
Founder/CEO IZALE 
 
July 16th
10:30-11:30 am Central 
 
IZALE Financial Group will provide an overview of this alternative asset. We'll review what it is, how it works, why it complies with regulatory guidance and how it performs compared to other assets. Tune in for insight from a leading industry expert to hear how BOLI's steady, predictable earnings can enhance your balance sheet.  

 
click for more info
StartFresh Checking®
 
by IZALE Friend
Tim Bode, StratisTech 
 
The popularity of courtesy overdraft programs combined with recent COVID financial stress has resulted in many potential checking customers not qualifying for a traditional checking account. With fewer customers qualifying, checking account growth rates are lower, and account acquisition costs are higher. To help financial institutions overcome this challenge, the value of a product Stratis created has become even more viable to change this trend. Over the past 12 years with great success they installed it's StartFresh Checking® program in over 50 banks and 2 credit unions.

At Banterra Bank, Head of Retail Debra Becht saw that they were turning down about 15% of checking applicants due to past closure history.  She didn't like losing potential customers, and more importantly not helping people with their banking needs.  Further, their small business customers were also experiencing frustration: they wanted to pay all of their employees via direct deposit, but many employees don't qualify for a traditional checking account due to previous closure history.

The StartFresh program has been a great solution. It helps Banterra Bank serve a previously underserved segment in a way that meets their needs, is profitable, and earns compliance favor.  As Debra recently shared:
"...we had our quarterly compliance committee meeting yesterday.  We love this product and the performance.  It was a great CRA factor in our recent exam.  Just wanted to say thanks for all you do."  

What worked for Banterra can work for your bank or credit union as well; through this program, your StartFresh account holders will:
  • Avoid the embarrassment and inconvenience of not qualifying for a checking account
  • Rebuild their financial reputation
  • Feel more empowered and more "in control" of their finances
  • Get direct deposit for payroll and government checks
  • Avoid costly check cashing fees, and
  • Eventually "graduate" to a more favorable traditional checking product!
By implementing StartFresh Checking, your bank:
  • Serves more customers
  • Increases customer satisfaction
  • Establishes longer lasting and more loyal customers
  • Grows deposit and checking accounts
  • Enhances fee income
  • Opens accounts more efficiently
  • Creates cross-sell opportunities
  • Serves a new segment of customers in a consistent and compliant manner.
Stratis has pioneered this program, implementing it most effectively since 2007. No other firm has more experience in the "second chance" space. With unemployment at an all time high, there is a population that truly needs this option.

Stratis is available to speak with you about your particular challenges to see if StartFresh Checking can work for you!
 
 
Contact Tim Bode of Stratis
email 

   
click to visit now
IZALE WEBINAR W.O.W.S. ANYTIME!

Have you visted our online learning Video Library? We created a place for you to go 24/7 to discover more about the expert services we provide at IZALE. Current titles include:  The Art & Science of Executive Benefits, Demystifying BOLI with separate video tutorials for Banks and Credit Unions, and Split Dollar Loans.
Thanks for your time & attention. We understand the value of both! ~ Your Friends at IZALE Financial Group
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