Kentucky Banker Magazine

From the Smallest to the Largest, Every Bank Can Be a Winner

The KBA's Selina Parrish and Investors Title Insurance Company's Norma Carroll delivered dividend checks to the 10 banks that own the Title Center of Greater Kentucky, LLC in August. The checks represented a 60% return on the initial investment each bank made in the agency after only nine months of operations. Not only has this agency provided an immediate equity return for its members, but also the year-to-date 33.8% profit margin and strong bank support ensure continued financial success. T...

Introducing: Emily Ann Renfro, Fss Graduate

Asset Based Lending - the 'Buried' Opportunity (Part Ii)

Until converted to cash, receivables are an underutilized, vulnerable, and sometimes overstated asset, prudently discounted by today's banker. Accounts receivable financing can provide exceptional returns for a bank, but the risk must be managed. Underwriting must adhere to the same rigid standards that would ordinarily be employed, except in this case, a further step must be taken to underwrite the account debtor credit as well since they are the source of repayment. All invoices must be che...

Coli/Boli Best Practices

President Bush signed into law the Pension Protection Act of 2006, which contained a provision commonly referred to as the COLI Best Practices provision on August 17. This provision deals with insurance policies purchased by employers on the lives of its employees and directors. The new law covers all types of employer-owned live insurance, including Bank-Owned Life Insurance, by adding a new section - Section 101(j) - to the tax code. Now employers, wishing to insure employees and directors ...

Fidelity Bonds and Manifest Intent

An employee must act with the subjective intent to cause his or her employer to sustain a loss for a fidelity bond to provide coverage for that loss. It is important to note, however, that the employee's subjective intent is not determined solely on what the employee has in his mind or what he or she claims in a deposition about wanting to have the money repaid. Instead, an employee's subjective intent is determined by relying on external indicia of subjective intent. This reliance upon the o...

Banks &Amp; Credit Ratings: What You Should Know!

Under even higher competitive pressures, smaller banks are constantly searching for ways to improve their operations. These banks would be well-served if they look into what their credit ratings are as well as consider how their businesses are being affected by those ratings. Unbeknownst to some, credit ratings exist on all US banks in the industry. These ratings are issued by model-driven rating agencies and are based solely on each bank's regulatory filing. An interactive rating is based on...

General Banking School Graduates Awarded Scholarships

Trust Department Errors and Omissions

Sometimes it seems that no matter what you do, in someone's mind it is wrong. Administering trusts is an excellent example, particularly in times of a volatile stock market. BancInsure has paid a claim that clearly illustrates this point. The insured bank's trust department accepted a trust for the benefit of an eight year old girl. The initial trust's assets consisted of approximately $900,000 in cash and about $350,000 in real estate. The trust department actively managed the account throug...

Prepare for Fdic Premiums

After years hovering at or above its target ratio, the fund that insures bank and savings institution deposits has dipped below 1.25% of insured deposits. Consequently, the FDIC has said it will assess insurance premiums on all banks starting next year. It is like starting up payments on a new car after years of driving one that was paid for. But there are several factors that should help to cushion - both mentally and fiscally - the blow. For starters, the new premiums are not the result of ...

Spotlight On: Seven Eastern Kentucky Members

Seven banks and their presidents in 4 different counties of Eastern Kentucky have pledged in excess of $1 million to Hazard Community and Technical College. This was part of their Fulfilling the Promise Major Gifts campaign, which celebrated raising more than $4.6 million dollars on August 8, 2006.

Straight Talk

Looking Back and Ahead

The recent KBA convention is discussed. The government relations committee is meeting regularly in preparation for when the General Assembly begins Session. With the recent key changes in the Governor's staff, it looks as if things will move forward in a positive way over the next few months, which will be a welcome change.

In The News

Lawrenceburg National Bank Walks for March of Dimes

Bank of Benton Names Golden Eagle Award Winner

Lado Family Moves Into Habitat Bankers House

Casey County Bank Pledges to Fulfill the Promise

The Casey County Bank (Liberty, Kentucky) has made a $100,000 commitment over the next five years to the Fulfilling the Promise Campaign for Somerset Community College. The Casey County Bank President and CEO Mark Wolford recently presented the lead gift commitment to Fulfilling the Promise Campaign Co-chair Charlene Harris, president, First National Bank of Russell Springs, and SCC President and CEO Jo Marshall.

Commonwealth Bank Introduces Instant Issue Debit Cards

Heritage Bank Opens New Calvert City Office

Republic's Sadofsky Elected to Kentucky Derby Festival's Executive Board

Traditional Bank Officer Completes Graduate Program

Citizens Bank &Amp; Trust Donates $250,000

Paducah Bank Sponsors Seventh Annual Ice Cream Fridays

Heritage Bank Opens New Calvert City Office

Heritage Bank broke ground August 22, 2006, on the first Heritage Bank office in Clarksville, Tennessee. The expansion is occurring to offer Heritage Bank's high level of customer service to Clarksville neighborhoods and the Fort Campbell military community. The new office in Clarksville will provide for full service retail banking, an ATM location and will allow Heritage Bank to meet the needs of its valued customers under one roof.

First Southern Purchases Blue Ribbon Ham

Products & Services

Loan Pricing and Profitability Solution

A KBA bankers' 2006 survey showed that over 64% of the respondents regard loan pricing and profitability as a top priority. The KBA is proud to announce that it has endorsed the market leader in assisting community banks with loan and deposit pricing solutions - US Banking Alliance. USBA is a premier consulting firm that works with over 365 community banks nationwide to increase their net interest income, grow their core customer base, and strengthen their day-to-day loan and deposit pricing ...