The Banker Next Door

BND: Strategy Room Bonus - Private Credit Market Update

This is a clip from the BND: Strategy Room Live Stream from 11-1-2025. This clip provides an update on the Private Credit Market. Blackrock had another of those "one-off" delinquencies.

BND: Strategy Room 11-15-2025

The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.

How can bank board's better deal with AI?

How can bank board’s properly understand and implement AI? This episode looks at a blog post from PCBB which discusses the challenge for bank board’s in understanding AI and what they can do to strengthen their skills. In addition, we consider an article from Bank Director which dives into how bank board’s can develop AI algorithms to create fairness, accuracy, and appropriate risk appetite for the bank. This episode examined an article from Bank Director titled “The right questions to ask about AI in the boardroom” and a blog post from PCBB titled “How to boost your board’s AI IQ.” Links to both the article and blog post are included below.
Link: The Right Questions To Ask About AI in the Boardroom | Bank Director
Link: How To Boost Your Board’s AI IQ

Does niche lending allow your bank to build better relationships?

Many Community Banks around the U.S. focus on niche lending products to grow their business and build strong relationships with their customers and communities. This episode looks at three such banks. First Guaranty Bank focuses on commercial leasing. Bell Bank focuses on nonprofit lending. Georgia Banking Company focuses on ESOP lending. Every Community Bank should focus on creating a niche for itself. This episode examined an article from Independent Banker Magazine titled “Specialty lending that strengthens communities.” A link to the article is included below.
Link: Specialty Lending That Strengthens Communities

Is selling underwater securities always the best strategy?

Bank investment portfolios were hit hard when the Federal Reserve increased interest rates a few years ago leading to negative AOCI and unrealized losses in their bond portfolio. Should banks sell those underwater securities to reposition their existing investments for positive income? The answer, it depends. This episode examined an article from Bank Director titled “Selling bonds at a steep loss is not always a good idea” and an article from S&P Global (subscription required) titled “Falling interest rates lift banks’ underwater bonds nearer to the surface.” A link to the Bank Director article is included below.   
Link: Selling Bonds at a Steep Loss Is Not Always a Good Idea | Bank Director

Citi Strata Elite rewards card disater!

Citi just rolled out their new rewards card named Strata Elite to compete with AMEX and Chase. Unfortunately, the rollout did not go according to plan as a number of customers were locked out of their accounts and have not been able to utilize the card much less realize the benefits. This episode examined an article from The Wall Street Journal (subscription required) titled “They signed up for Citi’s new premium card. It turned into a nightmare.”   

Are regulatory exams about to get better for Community Banks?

The Federal Reserve, OCC, and FDIC are all working on slimming down exam requirements for Community Banks. Some of the potential changes include regulatory actions such as “matters requiring attention,” scrapping any requirements that are not found in law or regulation, increasing the existing threshold from $10 billion to $30 billion, changing what pre-exam documentation is required, and tailoring supervision around risks from a banks business model. This episode examined an article from Bank Director titled “Community Bank exams are about to change.” A link to the article is included below.
Link:  Community Bank Exams Are About To Change | Bank Director

Interview with Chad Hull, Investment Banker with Janney

Chad Hull, Investment Banker, with Janney Montgomery Scott returns to discuss the current bank M&A market. Chad and I discuss some of the large banking M&A transactions recently announced. We consider the pickup in M&A activity throughout 2025 and what changes are driving the uptick. Chad provides his thoughts on why the activity could be sustained into 2026. In addition, Chad talks about what regulatory and technological changes will continue to influence banking.  

Is deposit insurance being reformed to benefit billionaires?

Banking regulators are considering deposit insurance reform to better protect consumers and businesses. Congress is also considering deposit insurance reform through a proposed act titled the Main Street Depositor Protection Act (S.2999). The question is, who will the deposit insurance reforms really benefit? Is this reform focused on consumers and businesses or billionaires? This episode examines an article from the Epoch Times (subscription required) titled “Deposit insurance for billionaires?”  

No more bank robbers?

According to an FBI report, bank robberies in the U.S. have declined from a high of approximately 9,500 in 1992 to less than 1,400 in 2023. Why have bank robberies decreased? This episode reviews are article from Investopedia titled “The death of the bank heist: Where have all the bank robbers gone?” This article presented five theories, 1) not a big enough payout, 2) fewer targets, 3) easier to get caught, 4) tougher prison sentences, and 5) better alternatives. A link to the article is included below. 
Link: The Death of the Bank Heist: Where Have All the Bank Robbers Gone?