Well, it appears the SFB plane is taxiing down to the runway. I had a friend reach out regarding a contract to oversee the M&A activity on a bank. The description of deposits and loan portfolios as well as some other nuggets describe SFB to a T. After being in the Bank 10 years, I'd love to benefit from its undoing, but am otherwise engaged at this time.
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The bank is being spun off? Why?
You answered your own question. In banking, if you are not growing you are dying. They cannot simply close accounts and bar the doors. There will be a sell off. The question then becomes whether it is a package deal, or bits and pieces?
I've been loyal to state farm for over 20 years but the bank is really making me question if my loyalty has been misplaced. It's hard to not feel like we are being wound down with the lack of new intitiatives and lack of any mention of growing the bank. Can someone please tell me what's going on?
Bank is gone in 2020
All this is jibberish to me. The only thing I know is the day I retired, I closed all my SF bank accounts. Not competitive.
The bank is misfit island for the Enterprise. Meek is the lacky who must keep his lackies in line so they can spew the nonsense meek is told by JM and DP to spew across the island. Holding pattern until the island can be cut loose...
Yes, meek and his freshly promoted minions are the Kool aid pouring crew for those naive enough to stay in the bank. They must keep the wheels on while the bank is exited.
The bank is gone in 2020
I read the comments on all the posts, you jagaloon
Oh my god you posted the original post and still come back to read the comments! You’re pathetic and I love I got under your skin. Let’s keep this going I need the laugh.
Hey Voice. OP here. I never said I was an attorney. I never said I currently work for SF. I said I had worked for SFB for 10 years. I said that I am currently engaged in another contract situation and unavailable for this contract to oversee some of this work, including some due diligence and planning for some of the systems integration.
Clearly you your ignorance and inability to read plain English displays a level of incompetence equivalent to that of a Meek crony.
I think it’s obvious whoever the OP was is completely full of bologna and has no idea what type of work is involved in bank M&A. First of all, unless your friend is the most incompetent attorney in the US they would know hiring you to “oversee the M & A activity on a bank” you work for is a terrible idea. Real banks will use a combination of their internal and external council as well as an outside consultant firm. They won’t just call up a friend who works for the bank being targeted, like they need someone to watch their dog over the weekend. There would be non-disclosure agreements for everything so doing posting like you just did would be a huge no-no. Now I’m not saying you’re not incompetent, you surely are, I’m just saying the likelihood of two people that stupid being in a position to oversee a $17B bank acquisition is highly unlikely, especially since you’re obviously not an attorney.
Do some research before you post trash like this trying to scare people.
Cat fishman is right. Even if they wanted to try and recoup some of the billion wasted on the excuse of a bank they'd have a hard time finding a buyer. Meek doesn't care. He's just been doing his part to integrate into the SF exec cult. He's SF because he has no other options. He's not a banker nor a real executive. Zero transferrable skills. Don't trust him and get out of the bank if you're smart.
Just took a look at the 1Q results for the bank and wow it’s bad. I don’t think you’re an acquisition target when you don’t make any money and your operations are perhaps the worst in the industry (74.5 efficiency ratio)!!
I think the clean effort is just that, a clean up effort. So you get your house in order and see if you can make money with your model when there aren’t a dozen fires to put out.
At the end of the day the bank has $137.8 million in negative retained earnings and had a whopping net income of $4.7 million in 1Q. To sell now would be a disaster because your future cash flows look like c-ap. You’re a $16.3 billion dollar bank so if you can sc-ape up a 1% annual ROA (a good bank is 1.25-1.40) you can erase your negative retained earnings and actually get a decent return on sale.
The call report isn’t clear on what the maturities are, but it looks like almost all of the bank’s deposits are non-transaction accounts...which holy hell what is wrong with this place...but if these are fixed rate cds for more than 24 months, the interest rate environment is ripe to boost net interest income.
FWIW - I don’t think a sale is going to happen, but bank transformation v999 will probably be do or die.
I'd love to know how KM not only conned JM and DP into allowing him to stay, but into giving him more power, as well. His bootlickers even controlled the restructuring committee. He must have been better than the other AVPs at pointing fingers.
Yes, AM absolutely worships KM. AS does, too. They're bonded by the fact that they all have female only offspring. It's weird.
AM is where he is because he worships the ground KM walks on.
Could be the hardest bank to do business with by a long shot
Anyone who believes you're actually building a banking business is completely disenfranchised. You're being kept busy doing low impact work while you're unloaded.
No spin off. Building the banking business.
Any updates on the spin off? I'm very curious as to who,if anyone,will go with it. Meek and his kids being apart of the purchase package makes alot of sense...
@YjuyzPO-klot, the problem is the Bank has never been substantively profitable to provide diversification to the business. Moreover, the costs of compliance for both the bank and the enterprise (as a holding company) are far too high to justify its continued existence . . . especially given the lack of profitability, minimal penetration in the book of business, and overall lack of awareness the bank even exists.
Those who saw all new product development get shut down immediately before the hiring freeze, restructure, and compliance efforts knew that the bank was getting cleaned up for sale/spin-off.
I believe everything is on the table these days. That being said, I don’t think the plan is to spin the Bank off. The P&C business ( not just at SF) is going downhill and they desperately want to supplant lost insurance business with Financial Services business.
Wake up. A sell off takes years to orchestrate. You have to get your ship tidy, create an owners manual, and hold steady while the sale is shopped. No investment in the bank while it sits anchored says it all. The sale is being shopped and you're all being kept busy enough and quiet enough until a deal is inked. Meek and his kids are the perfect minions for this.
There is no sell off. Fake news. New team refocusing on vehicle lending and deposits product and operations first to get It right.. They may jettison other products or build them differently. The bank adds a lot of value to the long term vision of the company. First gotta fix the operation disaster that TM personally created.
Was the sell off actually announced?
@YjuyzPO-geuf Can you elaborate more on what “gen 2 tipsord integration” means? Also what steps will they be taking to renew our focus on p&c?
Meek and his kids are the patsies to keep pretending they and the bank don't s---. They're clueless about the spin off. Comical.
2020 = renewed p&c focus and gen2 tipsord integration. Yes, goal is to have bank exit underway by Q1 of 2020.
Goal for spin off deal inked and announced is Q1 2020.
The holding pattern we're in says it all. Meek and his kids are absolute patsies.
When is the bank going to finally be spun off?
is the pension frozen or are they still accumulating pension credits for exixting employees?
Any other insight you can provide on this contract? Yes, this has been the plan since JM took over and got things in an organized holding pattern. However,the timing has always been the question... Did your friend have any insight on timing?
If there is a pension buyout, it will be reasonable, otherwise, no one would take it and just keep their current pension payment. This is already happening in corporate world. The whole idea is for the company to move these payments off the books. If folks chose not to take the lump sum pension buyout, there would be no benefit to the company. The down side is that people who may have no investment experience take a 300K buyout and spend it or don’t invest it for income, etc.
Pension is next. Expect mandatory buyouts at pennies on the dollar if you are under 50. Over 50 can take a better buy out option or keep tgeir pension frozen.
@YjuyzPO-1fhp, that's exactly what this means. Anyone who's been on the inside of the bank (and some connected parts of the Enterprise) over the last two years (at least) could see this coming unless they're blind, incompetent, or willfully ignorant . . . . which unfortunately describes a great many leaders at the Bank.
What does this mean? That SF is unloading its banking business?