Weekly Update:

Good Morning!

Over the last month, the goal of my daily message is to highlight profitability. I have touched on:

• Deposits – Lack of growth in the industry and the increasing cost of funds.
• Loans – The irrational fear of raising loan rates.
• Investment duration and yield – Having the proper duration for your institution.
• Loan to Deposit ratio – Higher is not always better.

The result of properly managing your balance sheet is profitability. We are in a strong economic and low loan loss environment and, in a lot of ways, the banking industry does not get much better. We should see profitability at near record levels.

It can be easy to get caught up in any one aspect of “Banking,” but a true leader needs to address all areas. Sometimes this is not popular. I encourage you to ensure that your focus is on profitable, sustainable financial performance.

If you would like to have a conversation about profitability, please contact your advisor to discuss ways that we can help. All of us at McQueen Financial are dedicated to your long-term success.

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