BOLI – Executive Benefits – Fee Income Strategies
Stay Informed with IZALE Financial Group
4th Quarter 2020 eNews | Issue No. 23

When I started IZALE Financial Group in December 2010, I had a part-time employee and a handful of clients. Ten years later, we have 15 associates serving more than 150 corporate (plus a few dozen individual) clients nationwide. Our core services of BOLI and executive/director retirement benefits have expanded to fee income programs, qualified plans, life and disability restoration plans, and individual services. We are humbled and grateful, and eagerly await the next ten years!
We hope you enjoy the wisdom from our friends at Taylor Advisors and Artisan Advisors.

Scott & Your Friends at IZALE

Scott Richardson, Brenda Haag, Bruce Barge, Chris Richardson, Deb Hardimon, Fannie Mae Pantaleon, Gary Wilberg, Jeff Prescher, Ken Smith, Joe Tripalin, Patrick Costello and Phil Aderton  

Balance Sheet Management: Pulling Ahead of Your Peers
by Todd Taylor and Omar Hinojosa, Taylor Advisors
How important is Net Interest Margin (NIM) to your institution? Community financial institutions are heavily dependent on net interest income (NII). With the majority of earnings coming from NIM, implementing a disciplined approach around “NII management” will make the difference between underperforming and outperforming institutions. To request a comparison of how your institution ranks vs national and in-state peers, click here.

As Financial institutions across the nation are dealing with challenges from COVID-19, anticipating next steps to protecting or to improving profitability will become increasingly difficult. Why: Margins are under pressure! Cash positions are growing with record deposit inflows; loan pricing has become ultra-competitive; and many institutions are seeing accelerated cash flows from investment portfolios. In times of uncertainty, it can be challenging to develop and execute a strategy to defend profitability.  

In addition to profit management, it is important to remember that stress testing your institution’s balance sheet is no longer an academic exercise! Beyond the risk-management applications, stressing the resiliency of capital and durability of liquidity should give your institution the confidence necessary to execute on strategies to improve performance and to stay ahead of your peers. It is of heightened importance to maintain focus on the four major balance sheet positions we discuss below.

Strategic Plans for Banking Risks Due to COVID-19
From Our Friends at Artisan Advisors
Artisan Advisors are now offering two great new tools that will help your banking clients survive – and thrive – in the COVID economy: the COVID-19 Assessment Readiness (CAR) Program and the Rapid Real Estate Loan Evaluation. Both were created by Artisan banking experts, to help community banks gain quick and reliable insight into their regulatory exam risks in a COVID-19 environment.

COVID Assessment Readiness (CAR) Program:

Artisan’s CAR Program is a targeted two-to-three day review and report using Artisan’s unique CAMELS assessment approach. CAR will help banks quickly understand where they have COVID-related regulatory examination risk and what additional steps they need to take to mitigate that risk. CAR is particularly helpful as a “checkup” for an institution prior to an announced examination date. As they mentioned in their recent webinar “So, You Think You Are Ready?” Artisan, anticipates regulatory examinations in 2021 will be much tougher as COVID continues to negatively affect the economy. For more information, contact Dan Kadolph at his email.

Rapid Real Estate Loan Evaluation:

Faster, simpler and more cost-efficient than an appraisal, Artisan’s Rapid Real Estate Loan Evaluation meets all regulations subject to “Interagency Guidelines, Appendix A.” Delivered in just 7-10 days for around half the cost of an appraisal, the final Loan Evaluation Report is a streamlined but detailed snapshot of real estate collateral that can be used for both credit decisions and loan portfolio risk management, which is especially important as the COVID economy continues to negatively affect real estate values. For more information, contact Ron Mercer at his email.

For More information contact Artisan Advisors
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 BenefitsDemystifying BOLI, and Split Dollar Loans.

Visit our website for updates to our calendar!
12/9    CBAI Directors Conference    Streaming Live

12/15   Pandemic Pay Practices    Webinar

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Securities offered through Lion Street Financial, LLC., Member FINRA & SIPC.