Capital and Strategic Planning
The banking industry has changed dramatically over the past few years as community and regional banks have experienced significant credit losses related to the devaluation of assets pledged as collateral. This has lead to numerous bank closings and challenged the banking industry with mitigating credit risk, ensuring access to liquidity, and maintaining sufficient capital. In order to maintain this delicate balance requires that banks take a more proactive approach in managing risk and in developing alternative capital scenarios.
Dittrich & Associates has an extensive background in Capital and Strategic Planning. Our bankers have successfully implemented capital and strategic initiatives that have lead to the turnaround of numerous banks in their careers as CEO’s and Presidents of their own banks. Today this level of expertise is available to assist your bank in developing its own plan.
Capital adequacy is at the forefront of a safe and sound banking institution. An appropriate capital plan will ensure that capital levels are in place to support risk profiles, absorb unanticipated loss, or protect against further declines in collateral values. This approach to capital allows for a transparent look at the bank’s overall health and provides the Board the tools necessary to seek additional capital backed by a solid management plan.
Dittrich and Associates enjoys close relationships with many capital companies and works closely with them to develop strategies to address long term capital needs, as well as helping problem banks attract capital as part of an extensive workout plan.
The team at Dittrich & Associates has developed numerous strategies to help client banks meet both short term and long term goals. There has never been a more appropriate time to re-evaluate the goals and objectives for individual banks. The advent of Dodd-Frank, the world-wide chaos and the inherent risks associated with the world’s economy have created an environment for financial institutions that is not only challenging but fraught with new risks.
Perhaps this is the perfect time to discuss the assistance that Dittrich and Associates can provide to this process in your bank. We stand ready to work with you in any or all of the following arena:
- Strategic and Financial Planning/Board of Director Assessments
- Bank-wide analysis of problems and opportunities
- Compliance and Risk Management
- Bank Holding Company structure and debt related evaluation
- Contingent Capital Planning and related sources