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.

As the fight for fee income intensifies, community banks are looking for new ways to compete in an ever-changing landscape. Larger banks are eliminating overdraft, ATM, and other fees that will drastically hurt the bottom lines of community banks. Moreover, government agencies have suggested it may be cracking down even more on fee income.

Keith Daly, Principal of Banking & Fintech Search at Travillian, sat down with Damon Magnuski, Founder and CEO of Acceleron Bank, to delve deeper into these topics. Acceleron Bank is a digital firm that partners with community banks and credit unions to offer FX payment services, which can help turn losses into a profit-generating service while keeping customers engaged with their local financial institutions. As business becomes even more global, community banks and credit unions need a way to produce revenue from international transactions and Damon discusses the potential of new streams of income.

In the dynamic world of banking and fintech partnerships, collaboration is key to achieving success and growth. Similar to the importance of building strong relationships in your personal life, BaaS Bank and Fintech partners must align on major strategic decisions to establish a solid foundation for their partnership.

Join Keith Daly, Principal, Banking & Fintech Search at Travillian, as he sits down with two industry leaders, Adam Watts, President & COO at Save and Chris Rigoni, Senior Managing Director, Head of Enterprise Payments, BaaS Sales & Implementation at Webster Bank, to explore why their partnership has been flourishing and to gain valuable insights on how to navigate the complex world of bank-fintech partnerships.

Through their extensive experience in the industry, Adam and Chris highlight the importance of clear communication, shared values, and foundational principles to build a successful partnership that benefits both parties. Their advice is invaluable for fellow fintechs and banks looking to embark on a journey together and achieve mutual success in the competitive world of banking and fintech.

Don’t miss this opportunity to gain valuable insights and learn from the best in the industry! Join Keith, Adam, and Chris in this thought-provoking conversation on the critical elements of successful bank-fintech partnerships.

SmartBank's exceptional track record as a premier financial institution for over a decade has positioned it as an exemplary model for community banks seeking to nurture and invest in their own workforce. With a strong focus on talent development and employee retention, SmartBank has implemented a variety of internal mentorship and leadership initiatives to develop and empower emerging leaders. Further, their unique focus on acquisitive and organic growth in the southeast (namely their home state of Tennessee) has proven quite successful.

Brian Love, Head of Banking and Fintech at Travillian, joined SmartBank's Billy Carroll, President & Chief Executive Officer and Nate Strall, Director of Strategy & Corporate Development, for an insightful conversation about SmartBank and how they plan to move forward with a clear strategy and a talented team.

Key topics discussed:

As the legal cannabis market continues to grow, many community banks and credit unions are looking for ways to support this thriving industry. Banking cannabis brings its own set of challenges and regulations, but with the right partners, it can be a lucrative opportunity for financial institutions.  Cannabis is now legal for recreational use in 21 states, and DC.  Furthermore, it is approved for medical use in 37 states.

Green Check Verified, works with numerous banks and credit unions all over the country to help them navigate the complexities of cannabis banking. The team of experts has years of experience in the industry, including Senior Vice President, Peter Su, who we sat down with to discuss the topic further.  Peter is an expert is Cannabis banking with many years of experience on the banking side including stints with East West Bank and Dime Community Bank.  Peter understands risk, the intense regulatory scrutiny banks are under, and how to work with regulators to ensure cannabis banking is in line with state and federals laws.  In the end, cannabis is a legal business in 37 states and will continue to scale.  Community banks need to take a hard look at the potential upside & risk and decide to partner with the right companies in the industry.

Tune into our latest conversation where Peter and Keith Daly, Principal, Banking & Fintech Search at Travillian, discuss tips for banks on how to enter the cannabis market and where to start.

Nate Mittag and Frank Sorrentino, Managing Directors of FIG at Stephens, joined Brian Love, Head of Banking and Fintech at Travillian, in a conversation about the state of the community banking space in 2023. Economic uncertainties around AOCI, credit and equity have altered some banks’ strategies but Nate and Frank share their thinking on opportunities for banks to plant seeds, think introspectively, and stand out among their peers. The discussion also covers timely topics like M&A, capital raising, share repurchases, tech investments and talent.

Travillian is excited to welcome industry-veteran Tom Bell, CEO of Maast, to discuss the payments ecosystem in a new episode of Travillian Next. Bell’s accomplished career spans decades and includes influential roles like EVP, Corporate Strategy at First Data and CEO of Bank of America’s Merchant Services division. Bell introduces Maast and how the Synovus Bank-backed “Money-as-a-Service” initiative marks a new, innovative player in embedded finance. We also get Bell’s take on what an idea like Maast takes from a talent, skillset, and strategy perspective.

Two of the most well-respected CEO’s in the banking industry – Community Bank System’s Mark Tryniski and ServisFirst Bancshares’ Tom Broughton – join Brian Love, Head of Banking & Fintech at Travillian, and Joe Fenech, Managing Principal of SMBT Consulting, LLC, for an insightful discussion on the approach employed by each bank on their path to success and other observable traits of the nation’s highest valued public banks.

This wide-ranging conversation touched on a number of topics, including the value of core funding, operating in metro vs. non-metro markets, the importance of maintaining discipline, thoughts on M&A, culture, the “sweet spot” for asset size, fintech, and prognostications for the upcoming year.

With the banking industry navigating through a challenging operating environment, this is a timely discussion with two of the industry’s best operators.

0:00 - 3:47 Introduction of Webinar

3:47 - 9:14 Introduction of CEO’s & Companies

9:14 - 16:00 Core Funding Importance/Metro vs. Non-Metro Markets:

16:00 - 19:15 Importance of Discipline

9:15 - 29:00 M&A Strategy

29:00 - 35:45 Culture/Management

35:45 - 39:30 Missteps Along the Way

39:30 - 42:24 SFBS and CBU: More Alike Than Different?

42:24 - 53:48 $10 Bil. Asset Threshold; Optimal Size

53:48 - 1:01:35 Fintech

1:01:35 - 1:07:03 Prognostications for 2023

1:07:03 - 1:07:29 Conclusion

Travillian is excited to welcome industry veteran Tom Bell, CEO of Maast, to discuss the payments ecosystem in a new episode of Travillian Next. Bell's accomplished career spans decades and includes influential roles like EVP, Corporate Strategy at First Data, and CEO of Bank of America’s Merchant Services division. Tom introduces Maast and how the Synovus Bank-backed  “money-as-a-service” initiative marks a new, innovative player in embedded finance. We also get Bell's take on what an idea like Maast takes from a talent, skillset, and strategy perspective.

Embedded Banking. Banking-as-a-Service. Embedded Finance. Whatever you want to call it, banks are both excited and skeptical about the recent upsurge in the adoption of this initiative. BaaS can lead to reaching underserved markets, increased deposit growth and fee revenue, and entering new geographies and hyper-specific communities. But it comes with risks and entering this space needs to be done cautiously and carefully.

Infinant, a Charlotte, N.C.-based technology company, offers a unique platform that is purpose-built for banks trying to pivot into BaaS. Brian Love, Head of Banking & Fintech at Travillian, sat down with Sarah Howell, SVP Partner Programs at Infinant, to discuss their platform and other BaaS-related topics including: