With the credible perspective very few possess, Hernan Hernandez sheds light on this past weekend’s wild events which shockingly led to Silicon Valley Bank and Signature Bank failing. He gives a behind-the-scenes view of the fair auction, bidding process and how this event may change banking sector fundamentals like deposit flows and liquidity risks.  Also tune in to hear Hernan’s hot takes on potential changes to the FDIC’s insurance policy.

Hernan Hernandez – Background Snapshot:

Hernan started at the FDIC in Los Angeles, CA in 1990 as a Commissioned Bank Examiner – Capital Markets Specialist, primarily monitoring West Coast banks of $100M to $50B in assets.  He joined Comerica Bancorp for six plus years, as First Vice President and Manager of Finance for the bank’s Western Division. There, he managed a 15 person staff in charge of budgeting, strategic planning, forecasting earnings, measuring and analyzing divisional performance, asset/liability hedging strategies, and customer profitability management. Among a host of accomplishments, Hernan was the key strategic analyst in the Comerica/Imperial merger that recognized $785 million gain on the $1.3 billion transaction (2.4x TBV). Hernan moved to City National Bank, Los Angeles, CA, in 2004 as Senior Vice President and Manager – Financial Planning, Corporate Development, Strategy and Special Projects, directly reporting to the CEO and Board of Directors. Hernan was an important part of the executive strategic team that grew the bank from $12 billion to over $90 billion. He managed the team in charge of strategy and merger and acquisitions (including equity partnerships and direct investments in fintech ventures) and led the Strategic Project Management Group that consists of 23 colleagues managing regulatory, efficiency and productivity projects throughout the organization. Hernan’s reach extended to almost every corner of the bank. A sampling of accomplishments include, leading the successful acquisition of 5 banks (4 of which were failed institutions utilizing the FDIC loss share program), 4 business lines, 1 leasing company, and 3 fintech SaaS companies, totaling over $5 billion in assets, raising $1.3 billion in common, preferred, sub debt, and senior debt capital instruments, acting as lead senior officer on the sale of the bank to Royal Bank of Canada (Highlights; $5.4 billion transaction, 2.6x TBV, P/E multiple of 22x), and developing systems/processes used for DFAST Stress Testing (Balances Sheet, PPNR, Aggregation, Submission) while maintaining close relationships with Fed, OCC and FDIC regulators. Hernan is now an FIG investment banker, primarily covering community and regional banks on the West Coast.