so bank failures are back

[Gil Bang 25,923]

well, one anyway. 

The Enloe State Bank of Cooper, TX just got padlocked. 

There was a time that 3 or 4 of these happened every Friday.  Let's hope we don't get back there. 

[SDG 3,319]

It’s rare, but that’s the whole reason for the fdic.  

[Updawg 2,266]

There should have been more. /no cloak

[ButtFumble 5,166]

2 hours ago, Gil Bang said:

well, one anyway. 

The Enloe State Bank of Cooper, TX just got padlocked. 

There was a time that 3 or 4 of these happened every Friday.  Let's hope we don't get back there. 

anything you want to tell us GB?

https://myparistexas.com/update-state-fire-marshal-atf-investigating-fire-at-enloe-state-bank-in-cooper/

[Guest Lobo]

So banks are becoming more mobile/digitization friendly which increases efficiencies and reduces wasteful branch G&A?  Which should reduce costs to consumers and/or raise interest payments, yes?

But last year, banks spent (wasted) more money on branch real estate costs than any other year in history?  

So they're investing R&D in fintech/mobility ease of use for the customers while doubling down on their dumbest fucking assets---real estate and personnel?  And they wonder why consumers aren't applauding?  They know that spending more on both real estate and tech R&D is going to screw them in the end, you fucking child.  I can't believe bank real estate spaces are being vacated faster than Sears.  

[Beau Vine 54,209]

29 minutes ago, Lobo said:

So banks are becoming more mobile/digitization friendly which increases efficiencies and reduces wasteful branch G&A?  Which should reduce costs to consumers and/or raise interest payments, yes?

But last year, banks spent (wasted) more money on branch real estate costs than any other year in history?  

So they're investing R&D in fintech/mobility ease of use for the customers while doubling down on their dumbest fucking assets---real estate and personnel?  And they wonder why consumers aren't applauding?  They know that spending more on both real estate and tech R&D is going to screw them in the end, you fucking child.  I can't believe bank real estate spaces are being vacated faster than Sears.  

Capital One is building coffee shops.  I facepalm every time I see that commercial.

[DaysOff 7,947]

Haven't walked in a physical bank in almost 3 years.

[SpiralOut 1,813]

Found out today that my old man, who has been running running his own business for the last 40 years, has already been doing direct deposit on paychecks for quite a while.  So a bunch of redneck, oil field hands don't even get a check on payday anymore.  Just a statement.  So why do banks need physical locations again?  Seems like a spot for an ATM is all you need.  And I don't know how much longer you'll need even that. 

[Updawg 2,266]

They should combine with Walgreens or whoever. They are on every corner. I've never understood why banks started making so many branches after the atm was invented. Let alone our options now. I just assume small business customer traffic keeps them going

[mycox 582]

51 minutes ago, SpiralOut said:

Found out today that my old man, who has been running running his own business for the last 40 years, has already been doing direct deposit on paychecks for quite a while.  So a bunch of redneck, oil field hands don't even get a check on payday anymore.  Just a statement.  So why do banks need physical locations again?  Seems like a spot for an ATM is all you need.  And I don't know how much longer you'll need even that. 

I don't think you know how banks work

[SpiralOut 1,813]

28 minutes ago, mycox said:

I don't think you know how banks work

My bank account agrees with you.

It's all numbers on a computer, right?  Doesn't seem like you need expensive buildings/real estate to handle numbers.  I haven't been inside a bank in years.  App on the phone.  E-statements.  Customer assistance through their website.    

[52-80 19,148]

1 hour ago, Updawg said:

They should combine with Walgreens or whoever. They are on every corner. I've never understood why banks started making so many branches after the atm was invented. Let alone our options now. I just assume small business customer traffic keeps them going

You ever walked into an empty bank though?

[texasjacket 289]

1 hour ago, 52-80 said:

You ever walked into an empty bank though?

Yes

[Nice Guy Eddie 13,509]

The chase bank near me is packed on saturdays.  No coffee shop inside.

i want think my only trips inside lately are to use their free notary service and get out some cash for a vacation.  The rare check I receive is deposited via their mobile app.  

[formermav43 4,606]

I moved a little over a year ago and have been renting a house up until this week (just closed on my own). The landlord wanted payment in cashier’s check, so I had to visit a bank once a month. 

[Surly Bevo 24,908]

You guys bitching about branches probably don't realize how much shit banks, especially the larger ones get when they close branches....particularly if it is a branch located in or near a minority/majority area.  Closings get politicized real quick.  

[BLKNSTY 289]

I’d think most banks get foot traffic as a result of brick and mortar w/ high cash flow, small business loans, mortgages/car notes, and old people investing in basic financial instruments. Don’t think that’s going anywhere and I’d probably argue that additional bank front real estate is needed and the market is acting accordingly.

 

Taking it a step further, I’d also argue that if all those things I mentioned are increasing proportionally to the overall population, which results in more bank fronts opening, probably an overall indicator of a healthy and growing economy.

[conVINCEd 21,469]

The olds love their safe deposit boxes too, that takes real estate.  Once a year or so I have a need for a cashiers check, so I’ll pop into one of the five branches located within 3 miles of my house.  

[dingleberryswitzer 2,724]

13 hours ago, DaysOff said:

Haven't walked in a physical bank in almost 3 years.

9 years.  And I've bought 2 cars and a house since then.  And the last time I did go to get a car loan, they tried to talk me out of actually going to branch.  My dad went to a usaa branch that wouldnt even take his cash.  

[Macanudo 12,976]

I've been with USAA for over 20 years.   Until recently, the only ATMs were in the San Antonio area and on military bases with almost no branches.   About 2-3 years ago, I noticed one in Porter about 6 miles from me.   A quick Google check tells me there are 3 in the greater Houston area.    Guess how many times I have used any of them?   ZERO.  

My paycheck is direct deposit.  I can deposit the few checks I get with my phone.   So tell me again why we need bank branches everywhere?

[Updawg 2,266]

They need a place to house their employees that make the bogus/fake accounts

[Guest]

On 6/1/2019 at 4:14 AM, 52-80 said:

You ever walked into an empty bank though?

Yeah... right after a school bus drove out of it.

[gurt 748]

As someone who interacts with many bankers from small community banks daily, the average bank employee in Houma Louisiana or Lebanon Ohio is not exactly with the times.

[HRSchenker 2,268]

My bank accounts are mostly with Ally. I have a checking account with a bank that has a physical location only for access to a safety deposit box. I keep the minimum required amount in there so I can keep the box.

[RPM 26,318]

I still bank with the little hometown bank I've used since 1974, but that's about to change. The bank president was my loan officer, but he retired. Now it's some kid I never heard of, nobody knows me by name and their app is a piece of shit. Really trying to find a reason to stay other than being too lazy to swap.

[SimonBolivar 10,957]

On 6/1/2019 at 2:00 AM, SpiralOut said:

 So why do banks need physical locations again?  Seems like a spot for an ATM is all you need.  And I don't know how much longer you'll need even that. 

A lot of people in this country aren't living in 2019 like the rest of us. Friday was one of the busiest days in our history as far as in person transactions and walk in loans. I personally was slammed all day. I mean you have olds that get cash for the weekends. You have illegals cashing their pay checks. You have the retirees with nothing to do but we still make a profit off of them. Branches will die out and some are consolidating, but we aren't there yet.

[Jersey Man10 3,528]

Yeah my local bank will NEVER close. It's full of olds, business owners, and illegals lol.

[Guest Lobo]

So was my Sears store.  

[RPM 26,318]

Used to cash our paychecks at Sears when I was in the Coast Guard. They'd cash them when nobody else would touch them because of the government shutdown. So this hits close to home.

[Assman 1,830]

I joined USAA in 2008, so I haven't walked into a bank since.  However, the only time I miss having a physical location is when I have a large amount of cash to deposit.  USAA has had the mobile deposit for a decade or so, but I can't take pics of cash.

[Jkwellborn 6,695]

I’ve got a buddy that lives in Cooper. Wonder if that was his bank.

[SimonBolivar 10,957]

3 hours ago, Lobo said:

So was my Sears store.  

Sears wasn't making $35 a pop off each poor  6 times a month for nothing in overdraft fees and then following that up with loans at 18% to clear it up until they inevitably fall back into overdraft land. The local bank model is outdated but they should stay in business long enough to get bought out by a midsize then they'll get rebranded and eventually closed.

Edited June 3, 2019 by SimonBolivar

[Guest Lobo]

All very true.  40% of revenue comes from overdraft/late fees.  Fitting my bank is inside an old blockbuster video 

[Armybrat 40,827]

On 6/1/2019 at 9:09 AM, Surly Bevo said:

You guys bitching about branches probably don't realize how much shit banks, especially the larger ones get when they close branches....particularly if it is a branch located in or near a minority/majority area.  Closings get politicized real quick.  

Those branch banks should be combined with a 7/11.

Two for one deal for the robbers. (/racist)

[Goredho 17,397]

Brick and mortar banks are more important to rural communities where they fit the scale of local business development.

Edited June 3, 2019 by Goredho

[SimonBolivar 10,957]

32 minutes ago, Armybrat said:

Those branch banks should be combined with a 7/11.

Two for one deal for the robbers. (/racist)

You see a lot of people depositing money at Oxxo stores in Mexico.

[Lat22 4,010]

16 hours ago, RPM said:

I still bank with the little hometown bank I've used since 1974, but that's about to change. The bank president was my loan officer, but he retired. Now it's some kid I never heard of, nobody knows me by name and their app is a piece of shit. Really trying to find a reason to stay other than being too lazy to swap.

Your hometown bank has an app? That's big time!

[Nueces River Rat 5,538]

11 hours ago, Jersey Man10 said:

Yeah my local bank will NEVER close. It's full of olds, business owners, and illegals lol.

Business owners (small and medium) still kind of do things the old fashioned way as far a mailing off payments and taking cash payments.   And the mailing off payments thing probably will not go away because some business owners have others do that for them in the way of a bookkeeper or another key employee.  My business is still small enough where I do most of my payments myself and on line, but once I can hand it off to another person as a I grow,  I would be hesitant to give him/her the keys to access my bank account on line.  Just a simple safe guard and nothing else.  

I was at a large national bank  helping my recent high school grad open his first account.   I remarked to him how quiet this place was compared to five years ago when I did the same for his brother.  But you are right most of the people coming in and out were of age and not us Gen X age or younger.   Also I noted the lines at the drive thru banking were way down.   One of the other big national banks down the street has added drive up ATMs to replace the traditional  teller.    

I  also have a Charles Schwab account which I use for travel purposes and before we go vacation or out of town for an extended period of time, I transfer money in to it.   They refund you all the ATM fees at the end of the month.   

 

[Nueces River Rat 5,538]

37 minutes ago, SimonBolivar said:

You see a lot of people depositing money at Oxxo stores in Mexico.

Mexico is weird because many of their workers get paid via direct deposit.   But when  many get paid, they go to an ATM and withdraw all their cash.    Friday's at an ATM in Mexico can be headache, so it's a good idea if you fly in on a Friday , get Pesos at the Airport ATM's.  

[bernorange 8,359]

https://www.fdic.gov/bank/individual/failed/banklist.html

The lists start to get long as you hit 2012 and before (closing date). 

[Guest Lobo]

2 hours ago, Dr. Beeper said:

For the industry or a particular bank?  Either way, I’m calling bullshit. 

40% (it may be 30-35% most other years, you get the idea) of the revenue from depository accounts for banks comes from overdraft fees.  Maintenance fees and ATM fees make up the rest.  Overdraft fees totaled $35 billion last year and it's going up.  Keep in mind that's on checking/savings accounts and some treasury management, not the bank's total revenue which is obviously driven mostly on the lending side.  That's industry-wide, not just my bank.  

[Guest Lobo]

Just now, Dr. Beeper said:

You just changed what you said. There’s a big big difference between depository revenue and revenue. 

Jesus Barbara, I wrote that at midnight.  Between 40% and revenue, I should have typed checking/savings or depository account or somesuch.  My bad.  I know a lot about banks but not much about raising a 2-month old and getting sleep.  I apologize, I'll delete the post if possible.  The statistic is the right.  The notion and critique of my industry still holds.  The general sense of where that side of the bank's money is coming from (it's 3x as much as they make on ATM fees which are all consumers complain about) is valid.  So yes, 40% on the checking/savings side comes from that, much more than maintenance or ATM fees.  Anything else I can address about an innocent detail left out of a one-handed, late-night post?  

[Guest Lobo]

Yes, absolutely true.  I mentioned almost the very same sentiment as yours in post 42.  We were talking about the depository side yesterday and so that 40% thing was on my mind, again I did not qualify it properly when discussing revenue.  Still it makes up a large portion of that side of the ledger.  

Now the really fun thing is when they game the lag time and hold periods on that side of a bank to "encourage" overdrafts.  Because it's not just the overdraft fee anymore, it's how it can help drive revenue on the lending side.  Anybody with any kind of home loan, HELOC, auto loan, etc. through their bank.  First thing they offer you is a little 15bps savings here, 10bps there, 50bps there.  All for stuff like keeping a Gold level checking account active there, agreeing to have auto-withdrawal to repay the loan on xx date of the month, maintaining a balance in savings of 3mos of the debt, whatever.  All those little digital-age perks they "throw in" to shave a little off your loan payment here and there.  Well, most of those little perks have a 1 or 2 strike and you're out penalty on them.  You overdraft and don't have the full amount to make that payment, and your rate skyrockets, you may get charged points, and all the little rate shavings go back up to full freight.  And what happens more than that is you have one lag on a deposit and you're still fine making your payments, but you fall below that agreed-upon benchmark like keeping $10k in checking/savings at all times or whatever to stay eligible for some lower rate on your auto loan (a crude example), and so again ---the customer loses all those rate savings tools they were first eligible for. /rant

[SimonBolivar 10,957]

So back to branches  and their usefulness. I run a small branch in a fairly impoverished area and so far this morning (3rd of the month so Social Security day for a lot of the olds) our drive thru ATM has had 10 transactions and my tellers have had 42, 38, and 42 transactions and we've only been open for an hour and a half. I've also done two walk in auto loans with 0 online or phone apps so far today. A lot of Americans are incredibly slow to adapt to change.

Edited June 3, 2019 by SimonBolivar

[NotActuallyALonghorn 4,975]

I think the people who don't understand how brick and mortar banks are still a thing are the same city slickers who think private car ownership will end in 20 years or so.

[Cosimo de' Medici 121]

This failure was flat-out fraud, not a sign of the industry slipping.

ATF investigating someone burning papers on the boardroom desk.

Edited June 3, 2019 by Cosimo de' Medici

[baboso 6,054]

Agree on the fraud.  A $27 million loss to the FDIC from a bank that only had $37 million in total assets points to a large fraud.

[JimmyHoffa 1,188]

Based solely on numbers- 

 

From- FDIC