The Most Fun I Never Want To Have Again: A Mid-Life Crisis in Community Banking

362 Pages·2013·25.583 MB·English

by  R. D. Koncerak

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The Most Fun I Never Want
To Have Again
A Midlife Crisis in Community Banking
Robert D. Koncerak
Copyright 2013 BankForward Consulting, LLC
All rights reserved.
ISBN-10: 1481867954
ISBN-13: 9781481867955
Library of Congress Control Number: 2013900175
CreateSpace Independent Publishing Platform
North Charleston, South Carolina
Cover illustration by Laurkon Designs and The Cheeb
To Bill
For the most fun neither one of us ever
wants to have again
I
The author and Bill Short at the opening of Touchmark National
Bank’s Alpharetta, Georgia headquarters in October 2009. In
color, our ties match the palate of the Touchmark company logo.
Contents
Introduction: What Was That All About?. vii
Chapter 1 It’s All About Getting Chosen 1
Chapter 2 All In: A Brief History of Georgia’s
Banking Boom 45
List 1 New Georgia Bank Charters 1997—2012 90
Chapter 3 Caveat Emptor 95
Chapter 4 Running (Up) The Bank 169
Chapter 5 Regulation, Controls and the ‘Chernobyl’
of Banking 193
Chapter 6 The Trend Is Not Your Friend: John Mauldin 211
Chapter 7 Strategic Plans and Avoiding the
Exploding Hippo 221
Chapter 8 Dead Indians 239
List 2 Georgia Bank Failures 1997—2012 248
Chapter 9 Enablers of the Apocalypse and the Perils
of Contemporary Banking 251
Chapter 10 The Downslide Of Creekside 283
Lists Time Line: Banking Crisis and Progress
of Touchmark National Bank 317
Chapter 11 What Happens Now?: Karl Nelson 323
Epilogue What’s An Investor To Do? 329
I
Index of Charts, Graphs and Data
Chart Page
Count of Georgia and US FDIC Insured Institutions:
1995 - June 2012 6
2 Georgia de novo Bank count, 1997-2007 7
3 Commercial and Savings Banks by Asset Size, 12-31-12 48
4 Graph of FDIC Institutions, 1996-2012 49
5 Growth of FDIC Atlanta Deposits, 1994-2007 50
6 Select US population trends 53
7 US Financial Institution Starts, 1997-2012 53
8 Graph of ADC loans at FDIC institutions, 1991-2010 63
9 Average Community Bank CRE charge-off rate,
2000-2010 64
10 Atlanta C&D concentrations, 1988, 1991, 1997 66
11 Southeast Community Bank Median Price/Book
Transactions, 1Q2006 — 1Q2008 69
12 Southeast Community Bank Median P/E
Transactions, 1Q2006 — 1Q2008 70
13 Assets/Deposits of Top 10 Bank Holding Companies,
December 2012 88
»4 Comparative Asset Trends of Community’ vs. Non­
Community Banks, 1984-2011 89
15 Average Georgia Community Bank Start-Up Capital,
1997-2007 104
16 Total Georgia Invested Capital by Year 1997-2007 104
17 Listing of Total Invested Start-Up Capital In Georgia
Banks 1997-2007 105
vi
18 Selected Chart of Touchmark Bancshares Capital
Raise By Week 163
19 Graph of Prime rate, 1 month LIBOR and Fed Funds
1999- 2012 172
20 Target Fed Funds rate 2005-2008 176
21 Treasury-Agency spreads 2007-2012 177
22 TED spread, 3 mo. LIBOR vs. 3 mo. T-Bill 1996-2012 179
23 TMAK Selected Revenue Measures 181
24 Georgia Dept, of Banking New Institutions
Applications Report, Oct 2007 185
25 Major Federal Reserve Policy Actions, August 2007
- March 2008 190
26 GDP Growth +/- Home Equity Mortgage
Withdrawals (Mauldin) 216
27 Bank Return On Equity by Lending Concentration,
4Q12 224
28 TMAK SEC Balance Sheet, June 30, 2010 and
December 31, 2009 245
29 Atlanta Housing Permit Trend, October
2008 - August 2012 254
30 Annualized Housing Starts, Jan 1993 — Feb 2013 255
31 Trend of Residential Housing Inventory 256
32 Trust Preferred Issuance 2000-2007 257
33 Creekside Organizers, 2005 288
34 Georgia Real Estate Write-Offs/Bank Capital
2008-2011 298
35 Graph of US Bank Closings by State 2007-2012 3*3
36 Graph of Georgia Bank Closures 2007-2012 313
37 Atlanta MSA Lending Limits, March 2013 335
vii