From The Desk of the CEO - August 2017
From The Desk of the CEO
August 2017
“How can I help the bank?”
Many of our shareholders bank with us, so we have the opportunity to talk to them regularly. They often ask how the bank is doing, which is usually followed with the question, “How can I help?” This question got me to thinking about the great potential we have collectively to grow our investment in our bank. We, together, have the ability to make our money grow!
A common measure of the national economy is Gross Domestic Product (GDP), which is the total value of goods produced and services provided in a country during one year. What is the Gross Banking Product (GBP) of our shareholder group? What is the sum total of all of the banking products and services consumed by our shareholders? How many of those are provided by our bank? What about the banking services of our relatives and friends, or those entities and organizations we influence or control? How big would our bank be and how much money would it make if we had all of that business within our bank?
"How can the bank help you?"
Are you taking advantage of all of the benefits of bank ownership available to you? Many of our shareholders enjoy:
- VIP service from a personal banker assigned to them, including having that banker’s personal cell phone number. We often get calls before or after normal work hours and on weekends;
- A commercial banking relationship with bankers who understand your business and help you meet your goals, often including networking and referring your business to others to help your business grow;
- Discounted rates on loans, including home mortgages;
- Premium rates on money market accounts and certificates of deposit;
- And, no fee, interest bearing VIP personal checking accounts not offered to the general public.
“What are the barriers to banking with us?”
We have tools to take the geography out of banking. You can bank with your bank from wherever you are, including outside of Waco and McLennan. You can remotely deposit checks (consumer or commercial applications), move funds electronically between banks from your desktop, and use the Frost Bank network of ATM’s, free, anywhere across Texas. We often are able to make loans to shareholders who are outside of our normal trade territory of McLennan county. We can make the conversion for you of automatic withdrawals or deposits currently being made to your accounts; we do the work.
If we have some of your business but not all, what can we do to move those accounts or refinance those loans? If we have all of your business, we would be honored to have you refer us to a friend or relative.
Todd Moore
President & CEO
Cell Phone: 254.722.2300
| Financial Update: | Click here to read more. |
| New Products and Services: | Click here to read more. |
| West Waco Branch Update: | Click here to read more. |
Financial Update
Alliance Bank Central Texas recently closed a successful second quarter of 2017. The financial statement below compares the YTD 2017 with final EOY numbers since 2011.
Through 6/30/17 gross revenues are up $452M, or 13%, over the same period last year, while expenses increased $307M, or 10%. The net increase of $145M speaks well to the outlook for the second half of the year because the growth initiatives (primarily the hiring of additional sales staff) created expenses that are "front-end loaded" while the revenues lag behind. We are just now beginning to see the benefits of the anticipated revenue growth and expect it will continue through year end.
The bank made $761M in pre-tax earnings through the first two quarters, and anticipate we will meet our goal of $1.9MM by year end. A very encouraging measure of future earnings is seen in the bank’s daily net interest margin (interest income minus interest expense) which was up $3,235 per day year over year. That results in an increase of approximately $100M per month going forward.
Total assets were $235MM at month end - up from $207MM at the same time last year. Loans increased to $169MM and while only six months in to our fiscal year, exceeded our year end budget of $166MM. Loans are up $33MM over June of last year. Total deposits increased $26MM to $206MM, up from $180MM at 6/30/16.
Note: M = 000's
New Products and Services
Alliance Bank Central Texas continues to add new products and services. Below are some of the newest offerings from Alliance Bank Central Texas.
Free ATM Network:
Alliance Bank Central Texas customers can use their ATM (debit card) for free at any ATM located in a Frost Bank location. Want to see a list of participating ATMs?- Click Here
Customers can also find participating ATMs in the mobile banking application. The screen on the right is a sample of available free Frost ATMS in the Austin area using iPhones locator service.
Credit Card Loan Payments:
Alliance Bank Central Texas customers can now use a MasterCard, Visa or Discover to make their loan payments for added convenience.
Debit Card Alerts:
Alliance Bank Central Texas customers can now receive text alerts notify them of charges on their debit cards. This new feature will reduce fraudulent transactions and offer a better customer service experience. Want to sign up? - Click Here
For more information on these, or other services, please contact our Customer Service Department at 254.741.8000.
West Waco Branch Update
Alliance Bank Central Texas is in the final stages of preparation for the opening of our newest location. Grand Opening is expected to take place on the morning of August 28 - so mark your calendars! As Todd Moore, president and CEO, previously statedd "Many of our customers, shareholders and friends live and do business in West Waco, or pass by this location on their daily commute. We are happy to make it easier for them to bank with us."
| Gerald Theut | Branch Manager - Commercial Lender |
| Caitlin Barber | Mortgage & Loan Specialist |
| Nancy Threadgill | New Accounts |
| Ivan Olvera | Customer Service |
| Jessica Maxey | Teller |
About Alliance Bank Central Texas
Alliance Bank Central Texas is a community bank founded by a local board of directors, owned by a diverse group of over 200 shareholders, and operated by seasoned bankers, most of whom have spent their entire careers in Waco. In less than ten years it has seen assets grow from $35 million to over $230 million. The bank is focused on helping entrepreneurs, professionals and residents, and understands the condition of the local market. It feels real value is created through people connecting personally with their bankers, versus simply having transactions with a bank. Alliance Bank Central Texas provides a full range of financial services including business, personal and mortgage loans. It also provides a variety of deposit products and services including commercial, personal and certificates of deposits along with electronic banking, mobile deposit and cash management services.