Need help with small bank

4 replies [Last post]
Tarheels's picture
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Joined: 2007-07-21

I have an opportunity with a small bank in South Carolina and had several questions.  The bank has 5 branches and about 200 Million in deposits, at least that's what they tell me.  They have an existing bank program that has an affiliation through INVESCO, but the last guy left for another bank program in Athens.
Is it really possible to have 200 Million in deposits for 5 branches?  Seems a little low to me.  Can I make a good living doing this.  I have 2 years experience with EDJ and have done well.  Just tired of their promises.  Does anyone know the SC territory, perhaps there are other opportunities in the area.  Lots of questions, I know.  Thank you.

troll's picture
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Joined: 2004-11-29

BAsed on what I've seen posted here, you should be making about $400,000/year without having to work.

Ashland's picture
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Joined: 2007-03-06

Bobby -

Shhhh... you're being annoying again.
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Tarheels -

Depends on the support you'll get.

1 - Do you have access to bank customers including cd lists or will you have to be doing outside propsecting?

2 - Are the bankers compensated to work with you?

3 - Will you have a salary, 100% commission, draw against...

4 - How is the bank compensated by your sales. Are they concerned about 'losing money' to investments? LaSalle Bank 4 yrs ago decided that deposits pay more than the fee income they receive from investments. While they are now being sold for that mistake & others like it, you don't have the luxury for them to figure out that fee income is a good thing. You need a bank that is motivated to push money out the door to you.

5 - What is the bank's intention on growing their program. Is it just going to be you, or do they want 4 reps. Write into your agreement what this will look like over the next 5 yrs. What is the bank's intention for growing branches? Does the bank 'buy' money with higher rates on cd's & mmkt's than local competitor's? If you choose to, can you step away from the bank in 5 yrs & just work your book? Will you get a higher payout(my payout increases by 5% if I choose to do this)? What kind of fee-based program does INVESCO have? Is it something that will work to build an annuitized business?

6 - $200MM is more than enough in deposits for you. I have just over $100MM in my territory & I haven't had a month less than $20K - but I have good support & I cultivate it.

7 - You've done business a certain way at Jones. How does the bank president see your position? In your office by 8AM, out by 6PM.   How flexible is this deal?

Good luck!

doberman's picture
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Joined: 2005-02-22

Want to verify the deposit amount? Go to www.fdic.gov and enter the name of the bank. You can even see how it stacks up versus its competition, deposit-wise.
Lazy? Ok, here's a direct link: http://www2.fdic.gov/sod/sodMarketBank.asp?barItem=2
Yeah, yeah, I know how grateful you are... Geesh, I hate groveling!

scrim67's picture
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Joined: 2005-04-28

Bobby Hull wrote:BAsed on what I've seen posted here, you should be making about $400,000/year without having to work.
To be truthful you would need to gross about $1,000,000/yr to make 400k.    Only the best of the best can do that.
Having said that, if making 100k-200k is your goal without having to work too hard the bank environment is a great place to go.   It will take you 3-5 years in most cases to get there in most cases.
I have one medium size branch with about 50 million in deposits.
scrim

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