The Banker Next Door

Episode 361: SBCS: 2025 Report on Employer Firms (Part 2)

This episode examines a report from the Federal Reserve titled “2025 Report on Employer Firms: Findings from the 2024 Small Business Credit Survey.” Some of the findings from the report include the revenue performance index declined, elevated debt played an increasing role in the denial of financial applications, loan approvals remained steady but applicants’ satisfaction with their lenders fell, and special topics that included physical space in which firms operate and the insurance coverage they maintain. This is part 2 covering the SBCS findings. A link to the report is included below.
Link:  2025 Report on Employer Firms: Findings from the 2024 Small Business Credit Survey

Episode 360: SBCS: 2025 Report on Employer Firms (Part 1)

This episode examines a report from the Federal Reserve titled “2025 Report on Employer Firms: Findings from the 2024 Small Business Credit Survey.” Some of the findings from the report include the revenue performance index declined, elevated debt played an increasing role in the denial of financial applications, loan approvals remained steady but applicants’ satisfaction with their lenders fell, and special topics that included physical space in which firms operate and the insurance coverage they maintain. This is part 1 covering the SBCS findings. A link to the report is included below.
Link: 2025 Report on Employer Firms: Findings from the 2024 Small Business Credit Survey

Episode 359: Treasury review of First National Bank of Lindsay failure

This episode examines a recent audit report from the Office of Inspector General inside the Department of the Treasury titled “Safety and Soundness: Failed Bank Limited Review – First National Bank of Lindsay.” The Office of Inspector General issued an initial memorandum reviewing the failure of First National Bank of Lindsay. The bank failed in October of 2024. The memorandum states, “due to deficiencies in the bank’s board oversight and internal controls and other unsafe or unsound practices allowed one or more bank employees to alter bank records and hide weaknesses in the bank’s loan portfolio from examiners.” A link to the report is included below.
Link: Safety and Soundness: Failed Bank Limited Review - First National Bank of Lindsay

Episode 358: Farmer debt continued to grow at Ag focused banks in 2024

This episode examines a report from the Kansas City Federal Reserve bank titled “Farm debt at Ag banks climbed in 2024.” This report provides an update on how Ag focused banks are doing with their farming clients. The report looks and how farm debt has increased over the last year, delinquency rate on farm debt, loan and deposit balances, loan to deposit ratio, and leverage capital ratio at Ag banks. A link to the report is included below.
Link: Farm Debt at Ag Banks Climbed in 2024 - Federal Reserve Bank of Kansas City

Episode 357: Update on Social Security changes!

This episode examines two articles from Investopedia titled “Some applicants will have to visit social security offices to confirm their identity soon” and “Full retirement age for social security benefits changed one expert explains the shift.” Recent changes to social security may require you to go into an SSA office to prove your identity. We also look at related information posted on the SSA website. Social security adjusted the full retirement age to 67 for any individual born after 1960. Links to both articles and the SSA website are included below.
Link: The United States Social Security Administration | SSA
Link: Some Applicants Will Have to Visit Social Security Offices to Confirm Their Identity Soon
Link: Full Retirement Age For Social Security Benefits Changed—One Expert Explains the Shift

BND: Strategy Room 4-4-2025

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.

Episode 356: How did JPMorgan get duped for $175 million?

This episode examines two recent articles from The Wall Street Journal (subscription required) titled “She’s accused of duping JPMorgan. Somehow, the Bank is feeling the heat” and “Charlie Javice found guilty of fraud in JPMorgan case.” Charlie Javice was an entrepreneur who started a company called Frank that helped students get access to financial aid. JPMorgan was so impressed with the company that it decided to purchase it for $175 million in 2021. Shortly after the purchase, JPMorgan figured out that they had been duped. As the case is decided in court what are we to make of this entire fiasco?

Episode 355: What's going on with consumer credit scores?

This episode examines three articles related to consumer credit scores. The articles include “A credit-score hangover is hitting America’s riskiest borrowers,” “Steep drop in credit scores hits student-loan borrowers,” and “Credit scores of more than 9 million student loan borrowers will likely drop in first quarter.” The first two articles are from The Wall Street Journal (subscription required), the third article is from Investopedia. Consumer credit scores are about to drop due to a number of issues that include higher interest rates, student loan debt, and increasing credit card and auto loan debt.

Episode 354: How are banks dealing with unrealized losses in their bond portfolios?

This episode examines a recent article from Bank Director titled “Banks have been unloading bonds at a loss. Is that a good thing?” For several years now the banking industry has been dealing with unrealized losses in their bond portfolios. Many banks in the industry have been selling at a loss to reposition their bond holdings, and many banks are still holding tight. As this issue continues to persist, banks will have tough decisions to make around growth, potential mergers, liquidity, capital, and earnings. A link to the article is included below.  
Link: Banks Have Been Unloading Bonds at a Loss. Is That a Good Thing? | Bank Director

Episode 353: What is a "merger of equals"?

This episode discusses the concept of a merger of equals and then walks through a recent example of a merger between Berkshire Hills Bancorp and Brookline Bancorp as outlined in The Bank Slate. Merger of equals transactions can prove tricky to pull off but can be very beneficial in the long run.
Link: Merger of Equals: What it is, How it Works
Link: https://www.thebankslate.com/