2023 Community Bank Case Study Competition Journal

2023 COMMUNITY BANK CASE STUDY COMPETITION

Figure 8: CBTC Net Loans & Leases to Deposits

liquidity planning, and consistent capital growth, CBTC has experienced good financial success through the challenging past five years. Part Two: Staffing Recruitment and Retention CBTC leads the community with its recruitment and retention of employees. Updated

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CBTC also has a relatively low loan-to-deposit ratio compared to the 79.3% average in its peer group. In 2022, the bank’s LTD ratio was 51.0% (Figure 8), (FFIEC n.p.). Much of this ratio is due to the higher deposit balances resulting from pandemic stimulus packages without a corresponding increase in loan demand. Having a lower percentage loan-to-deposit ratio means the bank is not earning as much in interest income as it could if it could lend against new deposit growth, but the bank has been able to invest this liquidity into securities. CBTC is planning to increase that ratio to 75.0 – 80.0% by growing its credit underwriting team. CBTC has added additional credit analysts to the loan department, which will enable lenders to focus on obtaining and sourcing loans (Stoots, personal communication, April 1, 2023). CBTC has also enhanced its loan process and invested in new technology for the process. Through diverse revenue streams, a diverse loan portfolio, conservative investments, careful

recruitment strategies, scholarships for minority college students, and an emphasis on being an enjoyable workplace have all allowed CBTC to differentiate itself and remain a top employer in the communities that the bank serves. Using these strategies has allowed the bank to be known in the community as a desirable place to work. According to Jennifer Starks, CBTC’s Human Resources and Professional Development Director, the recruitment process has changed in the last couple of years. Most of the bank’s recruitment in previous years was simply accomplished through word- of-mouth and other connections through industry professionals, but the process has since adapted and has become much more focused on using online applications and employment networks such as LinkedIn or Indeed.com . in addition to accessing college and university career services to find suitable applicants. Although word

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