Rick Weiss is Chief Bank Strategist of Ambassador Financial Group. Mr. Weiss joined Ambassador Financial Group in 2015 as Managing Director, Head of Investor Relations. Selected by Forbes and Starmine in 2015, 2010 and 2006, Mr. Weiss is recognized as one of the top stock-pickers for the thrift and mortgage finance industry. He was also named by The Wall Street Journal as “Best on the Street.”
In this exclusive 2,018 word interview in the Wall Street Transcript, Mr. Weiss describes in detail the current market for US community banking and whether you should invest.
One of the largest strategic issues confronting community banks is their access to technology:
“Over the long term, it is easy to see that community banks will resemble a financial technology company with a bank charter, rather than continuing to operate as a traditional community bank that uses financial technology simply as another delivery system to engage local customers.”
An upside is noted for those banks that can successfully merge into an existing asset base:
“Attracting core deposits is easier said than done. In some cases, banks that cannot grow organically will attempt to gain better funding through mergers and acquisitions…An example of a bank that is experienced with acquisitions and has had success with integration is OceanFirst Financial Corp.(NASDAQ:OCFC) of New Jersey.
OceanFirst recently announced another deal, which is their fifth in four years. It seems like a lot, but they have managed to keep the right people and keep earnings moving forward. That would be just one example of an acquisition strategy that works well.”
Regulatory challenges also concern Mr. Weiss:
“…The new accounting standard, the comprehensive expected credit losses, or CECL, which is going to require banks to establish loss reserves for potential losses over the contractual life of the loan. The current accounting is the incurred loss model. CECL will take effect in 2020 and is designed to produce higher loss estimates and higher reserves. So what happens in 2020 if the credit cycle turns sour?”
Read the entire 2,018 word interview in the Wall Street Transcript.
Community Banks are Toast States Richard Bove, the CEO of Dime Community Bank (NASDAQ:DCOM) Disagrees
July 28, 2021
Cutting Costs Key for Northeastern & Mid-Atlantic Banks
January 20, 2012
Linn Energy LLC (LINE) Develops LinnCo LLC (LNCO) to Access Capital to Fund Growth
March 25, 2013
Life Technologies Corp. (LIFE) Holds Stable Cash Flows and Access to New Sequencing Technologies
May 07, 2013
Access Midstream Partners LP (ACMP) Beats 2013 EBITDA Guidance; Anticipates Growth Through 2015
March 28, 2014
