The Academy of Professional Banking Proves its Value to an Arkansas Community Bank

Scenario:
One of the greatest investments bankers can make to achieve their objectives is to continue their education. For Larry Olson, EVP and Chief Credit Officer of Bank of Fayetteville (Fayetteville, Arkansas), meeting his goals meant attending the Academy of Professional Banking. "I spent the first 13 years of my banking career as a regulator for the OCC. Then I moved to the 'other side of the desk' and worked at a regional, multi-bank holding company for 12 years before joining the Bank of Fayetteville in 1999. All of these years, I attended various seminars and training workshops to keep up-to-date with industry topics. However, the Academy of Professional Banking was unlike any training I've ever experienced," said Olson.

Solution:
In May, Olson enrolled in the Academy of Professional Banking. "We were at a point in the bank where we needed to find new ways to attract customers and ultimately make more money," said Olson. "The Academy provided me with a forum where I could share best practices and learn new state-of-the-art techniques to help me more effectively manage my bank. It also gave me a resourceful network of peer bankers to rely on."

A Practical Approach to Enhance the Bank's Bottom Line
Generating more revenue for the Bank of Fayetteville meant finding innovative ways to increase loan volume and fee income. The methodology behind the Academy of Professional Banking is to implement a project that will profitably impact the bank's bottom-line. Olson explained, "One of the projects I chose to implement at the bank was to increase loan growth by 20% annually." The strategy began by identifying the bank's most profitable customers using CRM principles. Olson conducted targeted marketing campaigns to qualified customers who would have a potential need for additional loan services. Through basic profitability profiling, the bank was able to identify its target customers and market appropriate products and services to this audience. Olson has met his goal of 20% annual growth and continues to refine this strategy for long-term results. "Another action plan I implemented was to increase fee income by 50%," said Olson. The first step was to conduct some market research to see what the competitors were charging for late fees, origination fees and processing fees. "Our original late charge was $10, which we found out was way below the average fee, so we increased it to $50. For construction loans we implemented a .5% origination fee and increased documentation processing fees from $25 to $50. We also converted to a 360 day accrual standard on commercial loans," Olson explained. The bank also implemented a project to apply retail pricing on loans to increase average loan yields and renewed loans by an average of 47 basis points. Since putting these strategies in place, the Bank of Fayetteville increased fee income by 54% annually, more than projected.

Results:
An Advanced Graduate Banking Program with Peer Networking Opportunities
The networking experience and measurable results Olson gained from attending the Academy of Professional Banking have proven to be invaluable. "It is so beneficial to network with bankers who face the same challenges as you," he said. "You get to bounce ideas off each other and hear the lessons learned from the group. I've built a network of bankers and friends I can call on at any time." The bankers he met at the Academy of Professional Banking have kept in touch and email one another at least once a week to ask questions, look for information, air ideas and talk about common problems. Olson stated, "The sessions on strategies for revenue growth, leadership and even communication and presentation skills have helped me tremendously." As Chief Credit Officer he is always looking for opportunities to make money. Since graduating that May, Olson has come away with many common sense ideas that really work. "Even if you only implement 10% of the ideas you've gathered at the Academy, you've more than paid for the program," said Olson. "I'd recommend anyone to attend the Academy of Professional Banking. The location gives you a clear mind to think and you're guaranteed to return to your bank with new ideas to put to work. It is truly a valuable opportunity for any senior bank executive who wants to make additional money for their bank or just continue their professional development. The action plan strategies I learned will profit our bank for years to come."