9 Class Hours

Instructors: Greyson Tuck, Bob Monroe

This is a two-part course that focuses on the duty to enhance shareholder value and deal with regulators and regulations while operating within the current regulatory environment.

The first three days of the course, taught by Greyson Tuck, will focus on the fundamental obligation of a community bank director or senior officer to enhance shareholder value. In the community banking context there are a myriad of different ways this can be accomplished. For some institutions, enhancing shareholder value may best be accomplished by remaining independent and using one of several alternatives to enhance shareholder value without sale of the bank. For other community banks, enhancing shareholder value may be best accomplished by buying another institution or selling the bank altogether. This course will contain a practical discussion on the multiple opportunities available to enhance shareholder value, including strategically planning to enhance shareholder value, sale opportunities and the merger and acquisition market. It will also provide specific steps to enhance shareholder value without sale, including effective use of the bank holding company, stock repurchase planning, employee incentives, ESOPs, S corporation, best practices for corporate governance, and other  techniques. Upon completion of the class, students will understand:

  • Impact of the regulatory environment on enhancing shareholder value
  • How to design and measure whether the institution is enhancing shareholder value
  • Basic techniques to enhance shareholder value, including:
    • Bank holding company formation and use
    • Stock redemption
    • Dividend or distribution policies
    • Alternative lines of business
    • Attracting and retaining human resources
    • Enhancing value through appropriate corporate governance
  • Mechanics of mergers and acquisitions
  • Important issues regarding negotiating mergers and acquisitions
  • Fundamentals with respect to pricing an acquisition of a bank or a branch

The last two days of the course, taught by Bob Monroe, will focus on current laws, regulations, and current issues affecting financial institutions in today’s environment. This will be accomplished through a review of recent changes in laws and regulations affecting financial institutions. The following topics will be covered:

  • Current hot topics
  • Fintech
  • De novo charters
  • Lender Liability
  • Corporate account takeovers
  • Interstate branching
  • BSA
  • Third party risk management
  • Fair lending
  • Many other regulatory topics

Upon completion of the course, students should understand the regulatory environment in which banks operate today.

Annual School Session

Third Year, First Week Elective Course

Financial Management Track