Capital Planning
As specialists in community banking, we contend that capital planning is not just one strategy, but increments of many strategies that should be projected over the short and long term.
Deliverables
- Experience. Our team of advisors has extensive community banking experience that goes back 30 years. We have the knowledge to think through complicated issues and provide creative solutions that will optimize your bank's value.
- Our proprietary Benchmark and Peer Group Analysis evaluates the attainability of growth scenarios and captures your risk/reward profile to rank your bank among all others in the nation and your region. It also presents current banking issues, incorporates your numbers, and provides an assessment of your capital risk, credit risk, interest rate risk, and liquidity risk.
- Through this analysis, our team will assess your capital risk with your board and/or management team to facilitate a consensus on your bank's "just right" level of capital, including discussion of issues like optimizing shareholders' total return.
- We model various scenarios using our proprietary strategic planning tool. Over a 10-year period, we measure how capital strategies will impact the balance sheet, income statement, and share value.
- We follow with written recommendations pertaining to the timing, amount, and most practical forms of raising capital.
- We put forth tested and proven alternatives that go beyond selling stock and fulfill regulatory requirements for managing first and second tier liquidity events.
- Ultimately, we provide a written, long-term capital plan and revised capital policy.