State Farm Bank is closing. All their loans will be outsourced to Quicken Loans. Definitely no surprised by this information.
59 replies (most recent on top)
Do you honestly think anyone expected us to be blowing previous years out of the water after a restructure? Reading comprehension doesnt seem to be your thing so let me dumb it down for you: We aren't closing, and the Quicken deal doesnt indicate that. We are profitable. You are a troll.
You’re on pace to make half of what you made last year, I’m so confused why you think you’re doing so well. The view from the call center must be a little more rosey than everywhere else…
Actually our reported income in 2014 was 64 mil, and that was over 5 years ago. That income was offset by other costs as well. We are doing better today than we have in several years, and that's simply a fact. Anyway - I've already wasted enough time here. I'm sorry you feel the need to come "be right" here, but you aren't. I only commented back because the people who read this board deserve a dose of positivity amongst the trolls like you wanting to make us feel bad or nervous about our jobs. You aren't helping anyone.
State Farm Bank had a net income of 4.7M in 1Q, that’s not more money than they’ve made in years. That’s $18.8M annualized or a 0.01% return on assets. I’m fairly certain Joe Monk could have done better buying scratch off lotto tickets. The Bank made over $100M net income in 2014, still not good but way more than this bank 2.0 you can’t stop gushing over.
And to further educate you - the amount of capital invested in the bank is a tiny drop in the 108 billion dollar SF bucket. Life company c-aps out larger investments on a Sunday morning after its coffee. Redirecting Bank assets would do almost nothing for SF, whereas having a bank that continues to grow slowly over time is a fantastic long term investment. Especially as insurance continues to be more competitive than ever and by all projections will become less useful for customers as vehicles continue to evolve to be safer/less accident prone.
You're just grasping at straws and have no real information, that's clear. The Bank is doing better than it has in years and we are on an upward trajectory. My point wasnt that we are raking in money, it's that the bank has been profitable since the restructure. I'm not saying its sticking around forever - no one knows that for sure. What I am saying is that the supposition that we are closing based on the Quicken partnership is alarmist at BEST. Also, the idea that we would have a 4-5 year plan to close it down is ridiculous. No company in it's right mind would take that long to close anything. The amount of wasted resources over that time would be fiscally mo–nic. This board is a place where people like you come to speculate on supposed info you hear 12th hand, and about 10% of it is ever right. So save me the "oh I'm not the bad guy here" bs. Whether you clearly intend to stir the pot for people, and rile them up.
@3gfv - Being in the black means nothing, what was the bank’s net income through 2Q? I guaranty it was a lot less than nearly every other bank in the country in their asset range. Also a whole lot less than sf can make by using that capital for any other reason. I’m glad you still have your job, the goal isn’t to come on here and take joy in people’s suffering. If you truly believe sf bank is a long term viable career option for you then be like Steve Perry but just because you’re still there doesn’t mean you’re doing well.
We know the Quicken info is legit, it's all over SFnet and we had meetings about it. The wild speculation is everything after that. This was an easy fix for our mortgage originations which is a mess. It's a solution that works well for both SF and Quicken, and we are paying them nothing to use their top of the line customer experience for our mortgage portfolio. This has nothing to do with a bank closure. Bank is in the black this year, and things are improving steadily. I'll happily bury my head and let this round of wild speculation pass just like I did 2 years ago. Still have my job!
It’s not wild speculation, the Quicken piece is legit and it’s possible sf Bank is one of the worst run banks in the country. It’s not wild speculation to think this experiment will be over soon.
So bury your head in the sand all you want but if you’re not one of the chosen few at sf bank (we all
know who they are) you should be looking at plan b, c, and so on.
Do you trolls never learn? This post sounds exactly like one made with the same title about 2 years ago. Guess what? It was all b—s—. Enjoy your wild speculation.
This “strategic change” was approved in the June board meeting, along with a recommendation to sell the existing mortgage portfolio to the life company, thus allowing the bank to pay back the roughly $1.7B they owe the mutual company and put the bank in a position to shut down over the next 48-60 months if partners are found for other products. Capital One is the favorite for the vehicle and cars platform. The brokerage model allows sf to compensate agents and the mutual company can take in revenues without the risk the bank has had.
As soon as Quicken gets up and running with Mortgage I'm sure they will not need the Mortgage employees anymore. It's only a matter of time. The people who are left working after the 8/31 layoffs are there to hold out for severance or for pension, they know it's only an matter of time.
The bank is a wasteland. Simply holding more bodies to compete for enterprise jobs in the upcoming rounds of layoffs.
@Lovethefarm Corporate Woods has been on life support for years. No ETA for closure I am aware of but I would not get too complacent if you work there. The writing has been on the wall since late 2016.
While this post is not entirely accurate I do think this a major signal for the overall direction of the bank. Outsource and co-brand products by companies that actually know how to operate a bank. Someone could easily take on the auto operation, credit cards and deposits are simple to co-brand.
Bank is done, they will just do it slowly to stay out of the media radar. I know people that work there and they have known it for some time.
What about corporate woods in Earth City Missouri
Bank is not closing. Mortgages will be worked by quicken, no other changes to back products. Geesh!
True