Sundry Edition
A Biweekly Newsletter by Salt of the Earth Consulting, LLC
Vol. 21 | August 9, 2023
At Salt of the Earth Consulting, we created Sundry Edition as a way to further our mission to be a trusted and beneficial partner within our community. Each newsletter includes a curated list of articles that fit a theme within the financial services industry. And, because at SOTE we each share a passion for music, we always include a few song recommendations!
Regional News
In this week’s Sundry Edition we are spotlighting the ongoing discussion about regional banks and changes that have occurred since the Silicon Valley collapse this past spring. Last month, The New York Times reported that midsize banks’ performance from April through June has shown healthier looking balance sheets due to aggressive deposit strategies and culling of lending relationships that do not include other bank services. This past Sunday, American Banker published an article explaining that many regional banks are taking steps to minimize less profitable parts of their lending businesses, such as auto and commercial real estate loans. Interestingly, reporters Stephen Gandel and Joshua Franklin at The Financial Times believe that many banks are still too reliant on government financing, although one might hope that banks learned their lesson in the first quarter and are now testing their FHLB and Fed borrowing capabilities in a more rigorous manner. Finally, we have Moody’s downgrades this week, that seem a bit “barn doors closed after the horses are gone.” The greatest unknown currently seems to be the future of commercial real estate and in that regard, the devil is in the details. You can be sure the regulators are looking at these portfolios closely and bankers with concentrations should be doing the same.
Interested in our view on the best course of action for your financial institution? As a boutique consulting group that offers tailored regulatory advice and risk management strategies to financial institutions of all sizes, we welcome you to get in touch with us to discuss the ways we can help you and your business navigate the current banking situation.
Salt of the Earth is a boutique consulting group that offers bespoke solutions and quality advice to people, companies and associations. While we strive to keep our finger on the pulse of all aspects of the financial services industry, you can read about the specific services we offer here.
What We’re Reading…
What We’re Listening To…
Would That I
Hozier
Know It All
Billy Strings
Campus
Vampire Weekends
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