Hancock Bank & Trust Company (Hawesville, KY) received a public consent order from the FDIC and Kentucky Department of Financial Institutions in August 2013.
The bank had 120 days to bring its Tier 1 Capital above 9% and its Total Risk-Based Capital Ratio above 13%, subject to certain restrictions regarding raising capital. In addition, the bank was entering a liquidity crisis where its correspondent banking relationships either significantly reduced or eliminated capacity to borrow. Legacy high cost of funds, a detriment to earnings, began to leave the tha bank in search of higher rates at competing banks.
Taylor Advisors worked quickly and diligently with the bank to address all the deficiencies mentioned in the consent order. This included creating a profit plan, a liquidity and contingency funding plan, and a strategic plan to address pricing policies, goals for asset growth and capital adequacy, forecasts to maintain a sound liquidity position. In addition to plan formation, Taylor Advisors was instrumental in executing the plans to manage through the liquidity and capital crisis.
The consent order was terminated by the FDIC in January 2015.
A Word From The Client:
“I came here in 2013 and we were in trouble. I had made a career out of turning problem banks around, and they’ve all had liquidity issues. When I came to this bank, they had just recently brought on Taylor Advisors. Because of that, I had a working relationship with Omar, and it’s been exceptional. He is the best liquidity advisor I’ve ever worked with — and I’ve worked with about nine different banks. He has the practical on-the-job experience and the real-world knowledge he gained before he came into the advisory role. Just real good, practical stuff. I use Taylor Advisors for their liquidity skills, and I would especially recommend them to other financial institutions for their liquidity knowledge and skills.” -Danny
For details on the performance of Taylor Advisors’ investment advisory clients, please contact us at at email@example.com or 502-412-2205.