Wow

What a whirlwind the last few weeks have been in the banking world. Acquisitions and mergers, banks pulling in, and in one case, pulling out of the market.  High profile hires and life outs.  New faces and old faces…it has been nutty. So, you may be wondering, “what gives?” Why are folks who have been at the same bank for 15 years suddenly popping up in new places? Why are former executives thought to have retired, coming out of retirement?

 

The truth is, no one knows…certainly not us.  If we knew, we would bottle up the secret and sell it. What I do know is this.  The landscape is shifting.  It’s becoming unpredictable.  In fact, the only thing I can predict with certainty is to be ready for and unpredictable finish to 2012 and probably the start of 2013 as well.

 

Rumors and questions are being exchanged at a brisk pace.  Who is next in the merger line? Who is freezing up hiring and why?  Who is growing like wild fire and why?  Again, I am not sure, but for now it looks like many people see this dynamic point we are currently in as an advantageous time to make changes.

 

Pay attention and stay in touch.

Another Lesson Learned via Sports…

If you follow the NFL like I do, you are counting the days until kickoff. You are also aware of the situation with the replacement officials. If not, let me sum it up for you. The officials are holding out for a new deal. In the interest of saving a buck, standing their ground, and sending a message, the NFL isn’t budging. So, throughout the preseason and possibly into the regular season, the league will be forced to use replacement officials. To be fair…I am not sure what side is “right.” Also, to be fair, I don’t care, because as a consumer I just want the best product on the field possible. Botched calls and lousy officiating is not a quality product.

 

There is a point to be made here and it’s simple: It is not easy to replace someone. Sure, we all sling mud at the officials from time to time (in Philly they throw things at them, it’s embarrassing), but those individuals standing on sixteen different fields each week are the very best in the world. There is a reason they are out there each week. It’s not easy.

 

Coaches are complaining, players are complaining, ESPN is complaining, fans are complaining. Will this cripple the NFL? Oh God no. Will it hurt them a bit IF they don’t fix it? Yes. How great will that pain be? How big will that loss be? How deeply will its effects run? These are questions the league is asking themselves right now, and in weeks, days or hours we may get an answer.

 

Replacing key roles is difficult. This situation holds true at any bank, company, restaurant and virtually any employer across the county and world. Not everyone you lose or gain is the best. Not all are as specialized as these Zebra’s making the calls that matter every Sunday. Having said that,  some roles and the people in them are beyond vital to a company.  For those roles you have to strike while the irons hot, take advantage of the opportunity and do what you can to better yourself and weaken your competitor. It’s business 101 and sometimes something as simple as the competitive nature of sports can remind us of this.

 

New World Order

Telling it like it is…

As Ron Burgundy once said “ You got to keep your head on a swivel…”. That is how I would define the first six months of 2012 in the banking world. Mergers, acquisitions, executives jumping ship, top lenders changing teams, new logos, names, signs and faces. It’s a brave new world out there. Stop asking “When are things going to go back to the way they were?” and start asking “What do I need to do to adapt to the way things are?”

First off, customers are being more selective. When I say that, I do not mean our clients (though that is true) moreover I mean your customers. Be it a business looking for a loan, or an affluent customer looking for financial advice…it doesn’t matter. They, like you, have been through ups and downs. They are part of this new world too. Remember that.

Another point of note: financial institutions will continue to purchase other financial institutions, regardless of size. Look at Wells and Wachovia, Lehman and Barclays etc. All banks are susceptible to being bought, big and small. Any and everyone is a target. Don’t let that sway you. It’s something to simply be aware of. This fluctuation in the market is nothing new. This has been going on in good and bad markets. I think now it’s just slightly more prevalent.

Finally, no…it is not quiet out there. In fact, the noise can be deafening. You just need to know where to find it. Certain markets and aspects of the industry are slower than others right now, but just look at the business journals, glance at LinkedIn and listen to the news floating around, and its obvious that folks are moving. Some are completely changing gears others just changing teams.

This movement defines the market. If these people are moving, then many financial institutions are hiring. In many cases they are not just hiring for backfills, they are growing. This creates constant movement.

So, keep your head on a swivel, your eyes and ears open and speak with you soon!

Summer Trends in Banking

There are some clear trends in the market right now. I want to look at two of them closer.

Let’s start with compliance. There are more compliance people switching positions than in any other year I can remember. From BSA/AML specialists, to commercial and mortgage compliance roles, everywhere you look banks are back filling or beefing up on their staff.  With new regs, policies and laws weekly it is important to have a strong group.

The perfect storm has been created by compliance talent recognizing they are in demand and the institutions doing the same. So this summer, I expect compliance positions to continue to stay hot. Yeah…I went there and threw in that cliché sentence.

Credit positions are almost as big as super hero movies this summer. From C level to entry-level, banks are back filling, beefing up and creating new roles within the credit world. Just like the compliance roles mentioned above, now more than in years past, these credit spots are key.

Now, this influx of so-called “back office” spots does not mean sales or “customer facing” positions have faded. In fact, the opposite is true. They have picked up this year as well. This is part of the need for the added compliance and credit staff. Having said that, the compliance/operations and credit roles standout.

Like summer movies, fashions and trends, maybe this is just a fast moving, eventually fading movement…or maybe it’s something that will become an industry staple. Only time will tell.

Light at the End of the Tunnel is Bright

It happened earlier this year for our firm and then it happened again and again. We had gotten multiple Commercial Real Estate job orders. They’re back and so is the market. So I figured we would take a moment to list the top five signs the market rebound is in full force.

5.         My phone is ringing…a lot…without me having to coax it to. On the other end of the receiver are hiring managers in need of assistance.

4.         My competition is working too. For the last couple years I would occasionally hear this when I made a call, “whatever happened to the ABC firm? This one was also popular “You are one of the only ones that still regularly call me…” This was flattering, means our firm survived and thrived when others wilted, but it also meant the market was going down. To be fair, I know one or two others kept on working hard through the downturn and they know who they are. They are my real competition. My hat is off to them. I am just saying those who would occasionally make a placement here and there were neither here nor there. Now, they are again. Good for them.

3.         CRE job orders are plentiful. I don’t need to spend too much time on it after starting the post with it, but it’s true….very true.

2.         Counter offers are beyond back. They never fully went away, but over the last three years they were tougher to pull off. Not so much anymore. Now managers are not only panicked and left wondering how to cover their own butt, they have money, title and other so called perks to throw at their departing employee (and new BFF).

However that makes counters more dangerous now, because as I am saying…the market is back. The company that didn’t treat you well enough to keep you will soon remember how to lose you all over again. This time…they may realize after the emotion wears off that they have options.

1.         Great offers are prevalent. Offers are strong, vibrant and a plenty. This means many things, but most importantly it means clients need to remember to put their best foot forward and come to win. In all fairness though it’s means candidates need to remember the largest monetary offer is not always the best. It’s about opportunity, fit and yes among other things compensation. Putting your best forward goes both ways. It’s can’t be all about money.

Stop It!

In the upcoming addition of our newsletter, my colleague John Morris discusses pet peeves. It got me thinking about a few things that annoy me in this business and one thing stood out. This “thing” is not an action or tick. It is a mindset and theory. Sadly, it’s a mindset that on some level,  I’ll be it a very basic one, I understand. However, just because I understand it doesn’t mean I don’t think that it is still wrong. I am talking about the theory that every community bank is on the chopping block. Moreover I am complaining about folks just not understanding the size and scope of a bank in certain situations.

For example…

• I am talking to a commercial lender and I say, “my client is a Maryland based community bank that is growing.” I go on and when I’ve wrapped up the lender asks something like “It must be PNC right?” Really? I can say I am representing a Maryland based community bank and someone asks me if my client is one of the top 10 banks in size in the United States? A bank that also happens to be headquartered in a state other than Maryland. This lender seemed to be well educated too. Wow…

Please stop that. It happens more often than it should. Want another example? Too bad, because here comes one anyway…

• I am talking to a seemingly sharp credit officer with a super regional bank and my client just happens to be a smaller regional bank. The credit officer says something like “A bank that size is a target.” Really? So are dartboards, clay pigeons and about a thousand other things.

Stop and think to yourself, did you think Wachovia was a target? How about BofA? What about…well you get it. Nothing against any of those banks. This is more so a shot at the banker. Use your head for a moment and realize that everything in this corporate world is a target and we can’t predict the future.

Now here comes the tricky part. I get it. Small banks can seem more likely to be gobbled up. There is logic behind that thought process. Large banks seem less likely to fail; there is logic behind that too. However, these aren’t logical times. Ask Lehman Brothers about that theory and so called logic.

My point is stop using size of bank as a  major positive or negative. Should it factor into your thought process if it truly matters, sure in some cases it should. That said, don’t let it keep you somewhere or take your anywhere else. Great opportunity exists everywhere.

Top 5 in 2011

Another year almost over. I can’t believe it’s almost time to race around on the whirlwind relative tour, stand in long lines, fight crazy traffic, dig out a horrible holiday sweater, spread some cheer and look back on 2011 and see what made it tick.

This can only mean one thing, time to release our list of Top Positions Filled in 2011. This doesn’t mean what was the best role we filled or what was highest level? No, it simply means what roles did we fill the most of in 2011.

We had a nice year, so naming each and every role would take up too much space. Let’s just look at the top five. It’s easier and cleaner this way.

Drum roll please…

1.       Commercial Lenders

No shock here. We placed a great deal of line lenders at all different levels in 2011 from AVP to SVP, even EVP. These lenders came from the MD,VA, DC  markets right through West Virginia, Pennsylvania, Delaware and even New York and New Jersey too. They were C&I and Mid Market generalist and went with clients that range from one of the largest banks to Denova and Community Banks.

2.       Chief, Executive and Director Level Talent

I’d have to check my notes, but this made a huge jump from last year to this one. From CFO’s and COO’s to CCO’s and CLO’s and other letter combinations like EVP and other E’s…you name it, we filled it in 2011. Why such a spike? Any firm is lucky to come across a select few of these, but we had more than a handful this time around.

What gives right? Well first off, we aren’t complaining. What gives is a couple of things…like the market trending a bit up, like back fills on talent purges from the past and typical turnover among other things.

3.       Credit Talent

This one is always on this list. You hear that credit folks!? We need you. We love you and we appreciate you. From analyst to underwriters and PM’s….keep on keeping on!

4.       Wealth Managers and Financial Advisors

Two roles, but combined into one category due to how our clients classify things. This one moved down a spot I believe, but still stayed very high on list.

5.       Specialty Lenders

All my Not For Profit, GovCon, Health Care, Med/Dent and other specialty lenders” throw your hands in the air and wave them like you just don’t care!” We are glad to see you back on this list and with the Health Care and GovCon trends…trending…this should continue.

Honorable Mentions

Branch Managers, Team Leaders, Workout, Operations, BSA/AML, Bank Accountants/Audit.

Messages About The Mighty Dollar

People go to work for many reasons, but a huge reason people get out of bed, hop in their vehicle, slog through traffic, deal with annoying co-workers, nitwit bosses and the all too familiar “grind” is because they get paid.

Don’t agree with me? That’s ok, why don’t you let your employer know you are going to show up every day in 2012 out of the kindness of your heart? Explain, you don’t need nor will you accept a paycheck. For everyone else that understands that a key driving factor behind their career is a paycheck, I would like you to pay close attention.

Money is very important. I get that. I love it too. That said, there should be more to your career than money. Otherwise you don’t have a career; you have employment. Additionally watch the way you use money and information about money when looking for a job.

“It’s not about money…it’s about sending a message.” A very true statement made by The Joker in Chris Nolan’s The Dark Knight. Some of my contacts and candidates send awful messages to me, my clients and frankly anyone else who interviews them. Many times these messages involve money.

I would like to simply lay out three things people are doing all too often when discussing opportunities. All three of these things involve the all mighty dollar.

1.  Unwillingness to share compensation.

When a recruiter, HR person, hiring manager etc. asks what your compensation is, don’t reply with anything that resembles the following…

• I’m not sure.
• I am not ready to share that.
• 150ish…

Any response other than exactly what you make looks foolish. Who doesn’t know what they make? Oh I know…the same person that doesn’t care if they get paid to go to work. Also, I know I called you about this opportunity, but I need to know if I am wasting your time, my time and the clients time from a compensation standpoint. I am asking, because we want to help you, not paint you into a corner.

2.  Using money as a main motivating factor for looking.

Stop saying that the main reason you are looking is compensation. Better yet, if it is true…tell me, because typically we can go our separate ways. Remember, I get how important money is. I love the stuff. I also love getting my clients and candidates more of it. However, if the only reason you are looking to jump is a few bucks, what’s to say you aren’t going to turn into a job hopper or dollar chaser? You tell a company that all the movement on your resume comes down to money or you are looking at them, because of the pay,  you are toast.

3.  Fibbing about what it will take.

For example, Don’t say “$ 115 or I am not going” after getting an offer at $100K if it is not true. I do not deal with this  as much as the other two things, because much of my work is done in a space where folks are typically more sophisticated ,however…it happens. Nine times out of ten, it backfires.

Me, “I told them no deal after they came back at $108.”

Them, “What? Why, I would have taken it at $105.”

Me, “Then why did you tell me $ 115 you idiot?”

Kidding of course…but come on! I asked you. I told you to dig deep and not mess around. I explained this would happened yet you are surprised?

Anyway, a Batman reference, three helpful tips and some good tongue in cheek action. Hopefully it all helps! Time to wrap up.

Promising Information…

I have been littering this blog with promising information lately. Positions filled, banks hiring, divisions growing. All this “stuff” is quantifiable. You can break it down, add it up and see the results. The results are promising. Let’s take a closer look at this “stuff” by the numbers…

• Over half of my placements in 2011 were for grand spanking new positions. In fact, the exact number is sixty percent. I haven’t broken down what this looks like for our entire firm, but for my specific numbers and that of my team its sixty. My clients are growing.

Take a look at the news the past couple weeks. Profits are up. Even at banks that are on life support have third quarter numbers that look promising. Does this mean all is well? Of course not. That said, couple some of those profits with my last few posts (see below) and add that to the numbers above and we can quantify growth.

It’s like my NFL team the Panthers (don’t ask). Sure they are 1 and 5, but their offense is off the charts and they are headed in the right direction. They show quantifiable promise. Passing yards last year…last in the league. This year…top five.

In 2010 our work was up from 2009. Having said that…it wasn’t at the 2011 level and for all the uptick we saw in 2010, I can assure you over half of my fills were not for new divisions, teams and roles.

This is not spin, it is real info. Hopefully all this “info” and “promise” leads to even more growth for everyone.

Update

To tie in with my last post (see below), I figured I would update you folks on what we are continuing to see. Just 18 days in  to Q4 a couple of those other offers we were waiting on came to fruition. Additionally some key clients of ours and competitors of those clients have experienced major growth through new additions.

The Mid Atlantic Market has already seen one of the area’s top treasury management sales leaders jump form a super regional player to a money center bank. Another large player just lost a key lending manager to a large, strong community bank. Obviously this weakens the strength one bank, only to add to the other in both cases. The list goes on too, but I am sure you knew that.

Here is the take away, at least from my vantage point. We are knee deep in Q4 and financial institutions are still swinging. Folks are still moving for the right opportunity and growth is on the mind of those on the cutting edge. Sure, wrap up your year and put a bow on it…but if you aren’t looking ahead to next year…you’ll be lost all over again. When the champagne pops and the resolutions come out, hopefully you have already given them thought. Whether it’s making a move, growing your company, being a better parent, giving up smoking, cutting back on Jersey Shore…whatever. As I always say, keep your eyes open.