Management

Bank management must satisfy many different constituents, including the board of directors, bank staff, regulators, shareholders, and bank customers. Young & Associates’ management services are designed to meet the challenges and solve the problems you face in managing a strong, profitable bank.

For more information on our Management Services, give us a call at 1.800.525.9775 or click here to send an E-mail.

Management/Director Succession

Management succession is one of the most difficult processes to complete in any institution. An outside opinion brings objectivity and rationality to a process that can be both painful and very personal. Young & Associates will assist the bank throughout this process so that management succession meets the needs of management, the board of directors, and, most importantly, the bank.

Annual Interest Rate Risk Review and System Validation

Effective control of the interest rate risk requires conducting annual reviews of the risk management process and validation of the risk measurement systems to ensure their integrity, accuracy, and reasonableness. To meet the requirements of the Joint Policy Statement on Interest Rate Risk (IRR) and the subsequent IRR regulatory guidance, Young & Associates, Inc. can assist you in assessing the following:

  • The adequacy of the bank’s internal control system, including the appropriateness of the bank’s policies, procedures, and risk tolerances used to manage and mitigate the interest rate risk
  • Personnel’s compliance with the bank’s internal control system, including the effectiveness of corporate governance consisting of oversight by the board of director’s and management’s involvement in the bank’s control of interest rate risk
  • The appropriateness of the bank’s risk measurement system given the nature, scope, and complexity of its activities
  • The accuracy and completeness of the data inputs into the bank’s risk measurement system, including the verification that balances are correctly specified and that all major instruments and portfolios are captured in the risk measurement models
  • The reasonableness and validity of scenarios used in the risk measurement system, considering the bank’s nature and complexity
  • The reasonableness and validity of assumptions used in the risk measurement system, considering the bank’s existing product mix and business strategy
  • The validity of the risk measurement calculations within the risk measurement system, including back-testing of the actual results versus forecasted results and an analysis of various variance sources
  • Our final interest rate risk review report will assess each of the above, describe the findings, provide suggestions for any corrective actions, and provide recommendations for improving the quality of the bank’s interest rate risk management system and its compliance with the regulatory guidance.

Regulatory Enforcement Agreements

Using a field-tested and regulator-approved methodology, Young & Associates, Inc. has been successfully involved in over 25 bank turn-arounds and regulatory actions. Our method is customized to the specific needs of your bank and incorporates industry and regulatory standards with management expertise.

Interim Management

Every bank faces changes in management from time to time due to retirements, incapacitation, new opportunities, or just unsatisfactory performance. As a result of our many years of working with community banks all over the country, Young & Associates, Inc. has developed a wide network of industry contacts. We maintain a current database of available banking executives with differing areas of expertise and a variety of experience levels, and can help you secure qualified applicants that fit your bank’s needs and requirements.

Operations

An important way to increase the bottom line is to evaluate the bank’s operating efficiency and cost-effectiveness. Young & Associates will conduct a detailed on-site assessment of the bank and provide recommendations on how to improve internal operations to improve the bottom line.

Director Services

Bank directors play an active role in the management of community financial institutions. Young & Associates’ director services are designed to help your bank’s directors meet their responsibilities as well as meet the needs of management and, most importantly, the bank.

For more information on how Young & Associates can assist your bank with its marketing activities, call Gary Young at 1-800-525-9775 or click here to send an email.

Director Development

Bank directors play an active role in the management of community financial institutions. Young & Associates’ director services are designed to help your bank’s directors meet their responsibilities as well as meet the needs of management and, most importantly, the bank.

Management/Director Succession

Director succession is one of the most difficult processes to complete in any institution. An outside opinion brings objectivity and rationality to a process that can be both painful and very personal. Young & Associates will assist the bank throughout this process so that director succession meets the needs of management, the board of directors, and, most importantly, the bank.

Marketing Services

Changing conditions in the financial services industry have made it necessary for community banks to rethink the products and services they currently offer, develop new products, and capitalize on their strengths – namely their ability to provide superior service to their customers. Young & Associates, Inc. is experienced in a wide range of market analysis and planning activities for the community bank.

For more information on how Young & Associates can assist your bank with its marketing activities, call Bill Gaidis at 1-800-525-9775 or click here to send an email.

Sales Training & Sales Incentive Programs

In today’s competitive environment, banks that are successful at officer calling and in-bank cross-selling improve their chances of achieving long-term goals. Young & Associates can assist you by providing the sales training, support materials, organizational structure, goal-setting procedures, sales incentive system, and other tools you need to implement a successful sales culture in your bank. More than just sales training, you get a comprehensive sales “system” customized to your bank’s specific needs, products, and services that you can administer over the long run.

Market Research & Analysis

Young & Associates, Inc. has full-service quantitative and qualitative research capabilities. Our market research and analysis team will profile your service area in terms of customer characteristics, market growth, share trends, competitors, and consumer opinions and preferences about financial services. This information will enable you to make sound marketing decisions and take advantage of market opportunities. This information is also helpful in meeting the needs assessment requirements of CRA.

New Branch Promotions

Young & Associates can develop a special promotion for your new branch. We can create advertising, point of sale material, direct mail, product specials, press releases, and a grand opening celebration event that will help your new branch build a customer base as rapidly as possible.

New Product/Service Development

Product development includes the development and introduction of new products, as well as packaging existing products to meet the changing needs of customers as they move through the various stages of their lives. Young & Associates can make recommendations on product pricing. These recommendations are based on the rate structure of the bank’s markets, the status of net interest margin, the economic impact of gaining or losing funding and loans at different rates, and different strategies to boost fee income. We can also develop advertising and promotion programs to bring these products to market.

Special Promotions

Promotions have proven to be an effective means of generating excitement, goodwill, and increased account activity. Whether you want to celebrate an anniversary or branch opening, target specific accounts, or just create goodwill, Young & Associates will design and administer a successful, cost-effective promotion that meets your bank’s objectives and budget.

Strategic Marketing Planning

To function effectively and profitably in today’s competitive environment, the right marketing plan is a necessity. We at Young & Associates will work with you in developing a marketing program that will meet your bank’s strategic objectives for growth and profitability. We have full-service capabilities for implementing the program and tracking its effectiveness.

Human Resource Services

The Human Resources field is becoming broader and deeper everyday. Ensuring community banks derive benefits from this discipline that exceed costs is challenging. It’s not just about compliance, regulations, and practices anymore but the transference of these into hard dollars in the form of increased income, decreased expenses, and maximized profits. At Young & Associates, we have the extensive practical experience to help you realize a solid return on the time, money, and effort you invest in Human Resources.

For more information on Young & Associates’ Human Resource Services, call Michael Lehr at 1-800-525-9775 or click here to send an email.

Affirmative Action Plans

Under Executive Order 11246, Dodd Frank interprets almost every bank as a federal contractor, and thus responsible for having an Affirmative Action Plan. Young & Associates, Inc. has created a unique and customized solution for community banks. We will work with you to develop an Affirmative Action Plan and, in the process, will teach you the plan production process so you can maintain your plan in the future, resulting in significant fee savings in future years. We have the banking experience and knowledge to accurately classify your workforce and compare it to your market’s demographics. We advise – we don’t just crunch numbers and produce documents. This makes us an extremely credible and helpful partner in tackling the production of these plans for community banks. And, we include a compensation analysis particular to banking in our reporting package.

Policies & Procedures

Do you know what the important HR policies and procedures are for your bank’s operation? Are they adequately defined and documented? Without clarity and specificity, training efforts and field application drive up costs. We can help you clarify what’s important, distill it into effective steps, and develop practical policies and procedures for your bank.

Compliance

Are you following your policies and procedures? Often, people only think of ensuring that their documents comply with Federal requirements; however, lax adherence to them – regardless of their Federal implications – can constrain an employer’s relations with its employees. We can help you assess the adherence to your various policies to make sure what’s on paper reflects reality.

Communication

Do your employees know what your practices are? It doesn’t pay to document them if your people don’t have the materials and training to put them into practice. We can assist in the communication and training of HR policies and procedures especially for supervisors and managers.

Management

How do you administer your HR Department? How do you manage it to maximize its contribution to the financial statement? Increasingly, HR is seen as the department that supports, and in some cases drives, culture change. We can assess, recommend, and advise you on maximizing HR as a driving, profitable force in your bank.

HR Audit

If you are seeking some way to comprehensively review your HR practices without incurring a huge expense, an introductory HR audit could very well be the solution for you. We can do a cursory audit that will identify priorities for advancing your HR Department.

Compensation Services

For more information on our Compensation Services, give us a call at 1.800.525.9775 or click here to send an E-mail.

Compensation Risk Assessment

Establish risk-rating parameters, tailored to each bank’s needs
Review compensation plans and related processes to prioritize them according to risk
Identify areas warranting review and provide insight into the company’s compensation risk profile
Provide recommendations and a process for moving forward
Support ongoing compliance and disclosure

Pay Studies

Executive and Board Pay

  • Examine or create compensation policies regarding their pay
  • Determine appropriateness of compensation relative to performance and the marketplace
  • Analyze third-party studies or conduct our own (using SEC filings)
  • Design and implement compensation programs (e.g., long-term incentives, change in control agreements)
  • Research the types and levels of fringe benefits
  • Determine the weighting of compensation elements (i.e., fringe benefits versus other compensation)

Employee Pay

  • Look at third-party studies or perform independent study
  • Evaluate jobs straddling two or more different job functions
  • Recommend factors that should affect compensation
  • Research the competitiveness of employee-wide benefit plans

Salary Administration Plans

  • Gather bank information while examining unique job features
  • Create compensation philosophy, including documentation of policies and procedures
  • Research market
  • Develop initial salary structure and analyze current salary structure
  • Integrate into other bank processes
  • Rollout plan to managers and employees

Performance-Based Compensation

  • Identify participants: employees, executives, board members
  • Specify the goals
  • Benchmarks to consider:
    • What happened previously?
    • How much do you pay one job grade above and below?
    • How does this job compare to others inside the bank?
    • What have we done with other people with the same title?
  • Determine the types of awards:
    • Bonuses
    • Incentives (short-term and long-term)
    • Stock grants and options
    • Perks and fringe benefits
  • Determine the amount of the awards
    • Research market
    • Look at public versus private
    • Factor in overall package
    • Connect to overall bank risk
  • Implement the program
    • Employee communication
    • Document preparation
    • Reporting system
  • Welfare and Fringe Benefits