Bob Kottler

Many community banks launch credit card issuing programs with agent bank providers because they seem like the simple option. But that simplicity comes with trade-offs: 1. Low revenue 2. Limited control over your program or product design 3. Weak customer relationships There’s a better option. Owning a credit card program enables community banks to profit more, leverage local knowledge, win customer loyalty, launch quickly, and compete with big issuers in the market. 💡 You don’t need to build an issuing platform from scratch or settle for handing your customers over to an agent bank. Learn more about owning your issuing program in our new blog: https://lnkd.in/gtmZUDXF #communitybanking #creditcards #communitybank #issuing

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Your account holder accessing their line of credit doesn't have to require extra steps, paper checks or manual transfers. In fact, it can be real-time, at point-of-sale, using their existing debit card.  IncumbentFI helps community banks and credit unions give their consumer and business account holders easy access to their available funds. It's as simple as connecting existing HELOCs and Business Lines of Credit directly to their existing debit card. The result? Simpler funds access for account holders, reduced check fraud risk and greater debit card utilization for your institution, which can result in increased revenue. All while giving your account holders access to their lines with interest rates much more favorable than credit cards. Let's work together to make lines of credit work more efficiently.

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The CECL standard has rewritten the rules of credit loss accounting; and for community banks and credit unions under $200 million in assets, the stakes couldn’t be higher. Lean teams, tight budgets, and examiner scrutiny make compliance a balancing act. While the Weighted Average Remaining Maturity (WARM) method offers simplicity and regulatory comfort, it can leave institutions over-reserved and under-responsive in a shifting credit landscape. This white paper cuts through the complexity, comparing WARM with advanced methodologies like Roll Rate and Present Value cash flow analysis. You’ll discover why forward-thinking institutions are moving beyond “good enough” compliance toward precision-driven CECL strategies that free up capital, sharpen risk management, and earn examiner praise. If you’re ready to transform CECL from a regulatory burden into a strategic advantage, this is your roadmap. https://lnkd.in/e_kQ9fDJ

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Reserve Banks released 21 CRA evaluations in June - Vision Bank is one if six banks who received an 'outstanding' of Community Reinvestment Act (CRA) evaluation rating. https://bit.ly/45lgw4f #SeeTheDifference

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In 2025, Nacha issued several updates to the ACH operating rules addressing changes in payment behavior and fraud risk that will be effective soon. United Bankers'​ Bank #community #banks #rule #changes #nacha https://lnkd.in/gyWBudpx

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Last week, NCUA conserved People Trust Community FCU in Arkansas due to unsafe and unsound practices. Let’s see if we can deduce what happened. The credit union was chartered in 2022 and reported approximately $3.2 million in total assets, serving over 1,750 members as of September 2025. Before jumping into analysis, I’m typing this as I’m progressing through the reports. Looking at the September 30, 2025, Financial Performance Report, the first ratio that jumps off the page is net worth. The credit union closed September at a 2.05% net worth ratio, down from 7.06% in June. When net worth drops that quickly, the first place to look is asset growth to see whether income failed to keep pace. That does not appear to be the case here. Assets declined over the last year, from roughly $5 million to $3.2 million. Digging into the 5300 Call Report, the contraction is driven by a $1.85 million reduction in nonmember deposits, potentially other credit unions withdrawing funds. The withdrawal of those funds would not have directly hurt the credit union and may have reduced interest expense. Attention then turns to earnings and credit quality. Interest income peaked at nearly $300,000 YTD, with a majority of that being from "other interest income". Non-interest income (fee income) totaled approximately $117,000. There is also a recorded $65,000 grant in September. Provision for loan losses increased to $114,000 in September. Loans greater than 60 days delinquent rose to $153,000, with YTD charge-offs reaching $109,000. Here is where the equity accounts change materially. Undivided earnings totaled $285,000 in June 2025. By September, undivided earnings were reported at $0, while approximately $67,000 appeared in other reserves. This all suggests the clock had been ticking since mid-summer, likely July or August. Expenses also moved sharply. Office operations totaled nearly $500,000 year to date through September, compared to approximately $84,000 at the same point in 2024. Other fixed assets and other assets also increased over the trailing twelve months. I’m not an accountant, but one possibility is a change or correction in accounting treatment. If a long-term contract or lease was not being properly amortized, expenses could have been understated earlier and then recognized through a catch-up entry. Worth noting the financial statements do not provide visibility into any non-financial issues, such as compliance concerns, disclosure problems, or litigation. If I was the examiner, there would be a few other areas I would dig into deeper to validate some numbers. Quick disclaimer. This analysis is based solely on publicly available Call Report data. The data could be incomplete or revised, and my conclusions could be wrong.

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