High Performance Lending: It's All About the Fundamentals
“To keep your balance you must keep moving.” --Albert Einstein
In previous High Performance Executive Briefings, we have focused on the traditional measures of bank performance—Return on Assets, Return on Equity, Efficiency Ratio, and other financial measures that shed light on the overall health of a bank. Today’s levels of performance may have changed from twenty years ago; however, the measures by which we judge the success, or lack thereof, in a financial institution have largely remained the same.
But what about the biggest driver to community bank earnings? How does lending factor into High Performance? One thing is clear. For community banks to remain viable into the next decade and beyond, they must be developing High Performing lending platforms that facilitate growth and quality. Organizations who do so will produce increased loans more quickly with fewer resources and – believe it not – with better risk management and compliance practices. This Executive Briefing, therefore, introduces a new facet to measuring High performance. In this study, we measure High Performance not just on the traditional ratios, but also on whether an organization is making quality, balanced, and profitable loans proportionate to their asset size.
Any reference to "banks" or "community banks" collectively also refers to credit unions
Resurgent performance, inc. 4920 Atlanta Highway suite 309 alpharetta, ga 30004 (770) 664-9239