I once asked the head of a "bank watch" service: What is the first sign that a bank is in trouble? His reply: "When the bank starts lending outside its territory."

Another banker made the same point this way: "If I can't drive to a borrower's facility and be home that night, then I don't want the loan."

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.