Looking to boost your revenue? Find noninterest fee income opportunities, measure performance, target the most profitable options and repeat.
Every morning, with a cup of coffee in hand, Ken Hale, chief executive of Bank of Montgomery in Montgomery, La., pores over the bank’s statement of condition. Part of what he’s looking for is how well the bank is doing to grow noninterest income.
“It’s important for me to look over our financials daily, sometimes two to three times a day,” Hale says. “This keeps me on my toes a
nd pushes me each day to meet the goals the board and I have set for the bank.”
Several years ago, the $175 million-asset Bank of Montgomery made a conscious decision to boost its fee-based revenues. The goal was to even out the bank’s earnings stream to be less interest-rate dependent and also to offset the cost of implementing new industry regulations.
But Hale recognized that merely increasing noninterest income was only part of the picture; he also had to continually measure the bank’s success against internal and external targets. Yet this is a practice where too many banks consistently fall short, industry consultants and advisors say.