2022 Journal of Case Studies

Mississippi State University Executive Summary

A comprehensive financial analysis was conducted on the Bank of Commerce. Five areas of the Bank of Commerce’s financial reports were examined. These five areas include earnings performance, asset growth, capital levels, loan portfolio composition, and liquidity. The Bank of Commerce’s performance in these areas was compared to a peer group to measure the bank’s performance. BoC was found to have strong financial performance over the past decade in all five of these areas. In the earnings performance, they compete by controlling costs like pre-tax, non-interest espenses observed in their efficiency ratio. Their strategy in liquidity is to rely more heavily on core deposits. Bank of Commerce’s loan portfolio had growth from farm loans and commercial and industrial loans, and their liquidity strategy is to rely more on core deposits. This report contains a summary of changes that have occurred within the Bank of Commerce

over the last decade, such as the lower demand for loans following the recession from the Pandemic. This section of the report details the challenges faced by the BoC, like increased need for technological adaptation, and regional and demographic including the recent brain drain trend. Also included are the specific ways in which the bank’s profile has changed, and a story provided by bank managers that exemplifies how the bank has served its community within the last decade. Finally, this report details the changes that are expected to occur within the Bank of Commerce in the upcoming decade. Conditions discussed for this decade were discussed with senior bank managers. They revealed ways in which they expect the community banking environment to change, whom they see as up and coming competitors, and how the COVID pandemic changed the bank going into the future.