Community Banks Improve Profitability With Liability Coach(TM)

Profitability Program Yields Average Annual Gain Of $587,000 For Institutions

SAN FRANCISCO, March 31 /PRNewswire/ -- Community banks have increased
profitability an average of $587,000 annually by using Banc Investment Group's
Liability Coach, an innovative consulting service that helps financial
institutions optimize their cost of deposits, marketing budgets and customer
service levels.
"Using Liability Coach, Peoples Bank has become much more cost-effective
in gathering deposits," said CEO Wint Winter of Peoples Bank in Lawrence,
Kansas. "In just two months, Liability Coach has helped trim more than 70
basis points from our deposit costs and it saved us $450,000. Liability Coach
has been a terrific solution that has measurably improved our bottom line and
earnings per share."
Since the program was launched three years ago, 25 banks across the U.S.
with average assets of $400 million have engaged Liability Coach. During that
time, the median profitability improvement was $329,000. The average
improvement in margins was 26 basis points, and the median improvement in
margins was 17 basis points.
"Liability Coach makes an institution more attentive to maximizing
shareholder value through the efficient structuring of deposits," said Chris
Nichols, CEO of Banc Investment Group. "Liability Coach is a methodical
approach to setting deposit rates that helps management and bank staff focus
resources to support the deposit products that realize the greatest value to
the shareholders."
Liability Coach addresses one of the core challenges facing independent
and community banks: How to build a cost-effective deposit base. Too often,
small- to mid-tier institutions wind up chasing more expensive retail
deposits, rather than focusing less on rates and growing more organically by
delivering more value to their customers.
In working with banks, Liability Coach also found that independent and
community institutions often neglect to perform client segmentation analysis.
As a result, bankers wind up spending the same on marketing for profitable
customers as they do for their least profitable ones. Liability Coach helps
banks focus on clients interested in multiple product relationships.
"Many institutions get trapped in a strategy that may have worked well in
the past, but isn't productive now," said Greg Judge, Vice President of Banc
Investment Group, responsible for Liability Coach. "Liability Coach provides
the analytical framework to make smarter decisions about deposit pricing and
helps build a client base that maximizes the use of an institution's full
product suite."
To learn more about Liability Coach, contact Greg Judge, Vice President,
Banc Investment Group, 515.221.0147, gjudge@bancinvestment.com.
About Banc Investment Group
Banc Investment Group (BIG), LLC, is the capital markets subsidiary of
Pacific Coast Bankers' Bancshares and an affiliate to Pacific Coast Bankers'
Bank. Serving community banks across the U.S., BIG offers a comprehensive
range of wholesale products, including asset-liability management; credit
stress testing; loan purchases and sales; fixed-income securities, an array of
liability products, as well as other products and consulting services.
Headquartered in San Francisco, BIG can be reached at 877.777.0412, or
http://www.bancinvestment.com.
SOURCE Banc Investment Group

Greg Berardi of Blue Marlin Partners, +1-415-239-7826,
greg@bluemarlinpartners.com, for Banc Investment Group