The Subject:

A Banking Examination: What Happened to Your Local Banker?

Ever wonder how your banker arrives at his decision for your request? Banking certainly has changed from the days of instant approvals or equipment funding by placing a phone call. Prior to 2008, a client’s character was sufficient to fund that request or provide a loan approval within a matter of hours. Now, the decision includes a wholesale business colonoscopy. Inviting? Hardly. However, there is a bright side...

In the past, our banking landscape was comprised of the largest 13 mega-banks and regional banking centers. Around 2002, a proliferation of community banks sprang forth all over the country and certainly in the Greater Knoxville MSA. The result? Our local community banks are staffed with some of the brightest bankers and motivated staff people ever trained by large bank lending cultures. This means [the bright side...] potentially better banking relationships for family-owned and closely held businesses even in the midst of current challenges in the banking industry.

This Lunch & Learn will open your eyes to the inter-workings of today’s banking environment. You will be surprised to learn:

• How loans are priced?
• How banks are rated?
• How cash flow is determined?
• What banks see for the future US economy?

For businesses to be successful when leverage is involved, you must have a good understanding of the 5 “C’s” of credit and how they affect your banker. Please join us on October 23, as we explore methods used in underwriting credit risk.

(Note about Presentation: This lunch & learn will not tell you about banking and investment products, but it will provide you with an inside look at why banks are struggling to provide their clientele with quick decisions, capital needs, and deposit pricing. While the 13 largest banks heavily continue to influence congress and the treasury department, your local community banker remains committed to a high level of service. Many of these bankers have been thoroughly trained with an understanding of cash flow and local market conditions.)

The Expert:

After 22 years working for one of Tennessee’s largest regional banks (First American Bank), Sam Hammett ventured into the community banking culture in 2001 and has not looked back. Prior to his current job as Senior Vice President - Commercial Lending with United Community Bank, Sam also worked 9 years with FSGBank. According to Sam, in 32 years, there have been many changes in the banking environment, but none as drastic since the real estate debacle in 2008. While it remains a fulfilling profession, bankers continue to be frustrated with the stringent underwriting environment that was largely influenced by lax regulation of Wall Street and the derivative markets. Furthermore, Sam believes that sound banking should be 'boring banking' consisting primarily of loan and deposit opportunities; exotic investment vehicles are dangerous to our economy and the banking industry. We think you will be impressed by Sam's ability to make sound decisions and yet value relationships - a rare, some would say "dying breed" in the banking industry!

Lunch Provided.

Note: The Legacy Centre's Lunch & Learn Series is a monthly/bi-monthly educational workshop in a small group setting that gives owners and key employees the freedom to ask questions and seek specialized training from experts on professional topics pertinent to their business success.