Bankers attending Commerce Street Capital's Conference Heard it's a Great Time to Buy Banks

DALLAS - May 9, 2016 - PRLog -- Improving profitability, minimizing risk and maintaining growth in a challenging banking environment - these were some of the strategies discussed in detail during Commerce Street Capital (http://www.commercestreetcapital.com/Root/commercestreet/index.asp)'s ("CSC") 14^th Annual Banking Conference. More than 200 regional and community bankers in attendance heard insights about ways to positively influence bank performance amid elevated market volatility, increased regulatory challenges and an uncertain economy.

A key theme of this year's conference was the impact global and national issues have on local community banks. In opening the conference, CSC's Chairman Tex Gross welcomed attendees andsaid, "Whether you are in Bowie, Bellville or Beaumont, today, you must have a world view."

Reva Bhalla, Vice President of Global Analysis for Stratfor Global Intelligence (https://www.stratfor.com/), opened the conference with her presentation entitled "The Global Crunch - How We Got Here. Where We're Going." Ms. Bhalla outlined global economic trends over 20-year cycles. Bhalla further explained that the U.S. is in a much stronger position for growth than the rest of the world, given that the projected demographics of the U.S. population isn't as heavily weighted by senior citizens as other countries.

"As community bankers we have a lot of insight into our local economy, but banking is very much influenced by world issues," remarked Dory Wiley, CSC's CEO and President, as he began his overview of the banking industry. "Indications are the 2016 market will continue to be volatile based upon weakness in the U.S and world economy and political instability across the globe. This volatility presents a buying opportunity for banks." Speaking on the stock market, Dory explained that, "The stock market should produce 3 to 5 percent returns with bank stock returns potentially outperforming, at closer to 10 percent return."

C.K. Lee, Managing Director of the Financial Institutions Group at CSC discussed bank M&A noting that consolidation will continue to lag due to the energy market downturn and decreases in acquirer currencies. In 2015, bank M&A deal value reached $26.6 billion compared to $18.8 billion in 2014. So far this year, only $6.6 billion in bank deal announcements have been made. "There will be buying opportunities of banks in rural areas due to succession and demographics," Lee stated.

John D. Steinmetz, President and CEO of Vista Bank (https://www.vistabank.com/) in Lubbock, Texas, emphasized the importance of keeping up with technology, creating a culture of customer service and developing partnerships with industry leaders as keys to ongoing growth for his $330 million bank that recently expanded into the DFW market. Craig Scheef, Chairman and CEO of Dallas-based Texas Security Bank (https://www.texassecuritybank.com/), discussed how championing entrepreneurs and relationship management led his bank to being one of the healthiest banks in North Texas. Delivering customizable offerings and knowing what your bank does best are the keys to Laurel, Maryland-based, Revere Bank (https://www.reverebank.com/)'s success competing against larger banks according to the bank's co-President and CEO, Kenneth Cook. Revere Bank is a $1.1 billion bank located in suburban Washington, D.C.

John Mauldin, Chairman of Mauldin Economics (http://www.mauldineconomics.com/), shared insights into the economic environment over the next five years. Mauldin noted that the U.S. economy is growing by less than 2 percent annually and that the country is currently in the third-longest recovery period in history without a recession. He expects a recession is on the horizon, but Mauldin is optimistic that there is a path to stimulating growth, creating new jobs and spurring economic recovery. Sydney Menefee, Deputy Chief Accountant for the Office of the Comptroller of the Currency (http://www.occ.gov/) in Washington, D.C. gave an overview on the new Current Expected Credit Loss (CECL) model. Along with being scalable like today's financial modeling methodologies, CECL will allow institutions to revert to a historical loss experience for periods beyond which the organization is unable to reasonably forecast, according to Menefee.

Dory Wiley, Mark Whidby and Greg Mykytyn of Commerce Street Peak Advisors discussed organizations reducing risk and improving performance within their 401(k) plans.

Brian Johnson, Managing Director in CSC's Financial Institutions Group, moderated a panel that discussed recruiting top talent for banks and boards. The panel, which included Tommy Ellison, Chairman of the Board of Commercial Bank of Texas (https://www.cbtxonline.com/home/home) in Nacogdoches, Texas; Robert Strong, Executive Vice President of Commercial Banking for Mutual of Omaha Bank (http://www.mutualofomahabank.com/) in Dallas; and Doyle Lee of Lee Training & Consulting provided key strategies to improve employee communication and attract millennials. The panel agreed one key element to successful multi-generational companies is implementing "reverse mentoring," where younger colleagues assist older colleagues in understanding them, current technology and optimal communication.

Guillermo Borda of CSC discussed the Community Reinvestment Act (CRA) credit. Borda explained that banks should develop a portfolio of public welfare investments by investing in assets such as SBICs, Low Income Tax Credit Funds, CRA Mutual Funds and MBS.

Danielle DiMartino Booth, President of Money Strong, LLC (http://dimartinobooth.com/) discussed the state of debt in the U.S. and the duty of the Federal Reserve to restore the financial markets to their proper function as price discovery mechanisms. DiMartino Booth noted that while income has stagnated, debt from student loans, mortgages and credit cards continues to rise.

About Commerce Street Capital

Commerce Street Capital, LLC ("CSC") is a private investment banking firm headquartered in Dallas, Texas. CSC is a member of FINRA/SIPC.

This press release is for information purposes only and does not constitute a solicitation or offer by Commerce Street Capital, LLC, to buy or sell any securities, futures, options, foreign exchange or other financial instrument or to provide any investment advice or service. The testimonials stated within this press release may not be representative of the experience of other clients. The testimonials stated within this press release are not indicative of future performance or success. The testimonials stated within this press release are not paid testimonials.