Page 11 - Spring 2024_Neat

BY BYRON EARNHEART

th
its 10 anniversary that (again,
“One of the biggest concerns we have is for community banks
let’s be honest) you were hoping
that do not believe they have any weaknesses.” --Gerrish’s Musings
just pays the loan! But if I asked
December 28, 2023
your competition in town what
I can’t agree with this statement any more if I tried. It should be the makes them special, guess what
entire content of the blog post or just be looped over and over to they would say “our bank knows
our customers…we’re the best
make one entire podcast episode. I can’t tell you the number of
times we hear something like this in grad school or in our other bank in town…greeted by their
programming and before we talk about it further here…let’s set name…etc etc etc.” See my
some context before we blow off the statement as “that’s not my point? The weakness here is the
bank”. bank can’t define itself and, more
importantly, has deceived itself
The context for the quote came from some discussions Gerrish into drinking the very old and
Smith Tuck with a bank who had just finished up a focus group study antiquated Kool-Aid. Byron Earnheart is
with their own employees. Employees were asked to give their
opinion and feedback on what they saw as to the bank’s direction Let’s look at another example. Programming Director at
and strategic initiatives. One employee seemed to do just that and One of the best lessons I learned Barret School of Banking in
in bank training was this simple Memphis, TN, an ACB
management didn’t like it. The critique, according to the article,
was at specific items related “creating competitive disadvantages, adage “be honest with yourself Preferred Solutions Provider.
wasting money, and committing similar bad acts as it relates to about what you have”. If you go Byron may be reached at
strategy”. This doesn’t read like the disgruntled employee who is around conferences bragging that byron@barretbanking.org
rd
mad about teller staffing issues on the 3 of the month. That’s you don’t make unsecured loans
important (#iykyk amirite?!?) but these critiques are on what he/ (seen it happen) but you grant overdrafts, congratulations, you’ve
she sees going on at the executive level. made an unsecure loan. I know a loan officer (no longer in the
industry) who put in his memos (AS A STRENGTH OF THE LOAN!)
Now, here’s the question…if you asked one of your employees to that the borrower was a “well-respected member of the
give you honest feedback, he/she does, and you get offended…what community”. Every memo. Apparently, the entire business
does that say about you? I might even grant that it might not be community of this market was so kind and loving that everyone was
done in the most gracious manner with pristine professionalism… well-respected. He was also one of the few lenders I have ever seen
but does that make the criticism wrong? Are you willing to say that legitimately try and argue on multiple occasions that his loans had
you and/or your bank really has weaknesses? no weaknesses. Hallelujah and clap your hands because he’d found
ag and real estate investment loans with no weaknesses….all to well
Let’s go on. Each year, I grade the GAP assessment paper for the respected members of the community. I never did see or hear
Barret Graduate School of Banking where students survey their about him financing the unicorn operation but I’m sure it too was
colleagues and analyze the results as they pertain to communication run by well respected members of the community.
and marketing efforts (for lack of a better term). Every session,
there is going to be a not insignificant number of papers that are You can see the point by now. Just be honest with yourself and
going to have some version of the following: know that admitting (or facing) a weakness is not a weakness. We
love to talk about our strengths (personal, professional, and
1. “Our bank does not conduct marketing research corporate) and those amazing opportunities that are going to blow
because we pride ourselves on knowing all of our the top off of ROE and those threats that are out there that we have
customers.” no control over and therefore don’t have to account for…but those
weaknesses are where we run and hide. If we ask the question
2. “We are the best bank in town because we are the “what do you think about where we are going?” and you don’t like
ones who care.”
the response…is that a “them” problem or a “you” problem? I will
grant that you may not like the answer but does that change the
3. “Our customers are greeted by their first names when
they walk in the door”. fact that…you have some blind spots.

Any of these or some version of them sound familiar? Be honest!

The answer to these is very simple…”Nope”. Now, I know you love
your customers. I still love my old customers and miss them. Those
kids have grown up too quickly or that new business is celebrating

A RKANSAS | 11 | Spring 2024
COMMUNITY BANKER