An old friend of mine, John A. Forlines Jr., chairman and CEO of $422
Basically, the contest question was: How can a bank further economic
The answer is simple, John wrote.
"Growth for growth's sake is no good, just as bigness for the sake of
"Bankers should promote economic growth in their communities only when
"Creating well-paying jobs that 'fit' the community, and being sure
"Naturally neither banks, utilities, nor (local) governments should go
"Periodically, in our community, we have 'appreciation days' for the
"Somehow, we've never been accused of not promoting what is in our
Mr. Forlines will not be accepting his prize - the august title of
"You don't need to worry about making me president of Schmidlap
As original incorporator of Schmidlap National and its honorary
But I took it the other way - as an indicator that community bankers
John Forlines' friendly rebuff should not deter others from striving for
Our new contest should give an opportunity for securities analysts, bank
The topic: What are the best indications that a bank is going to be sold
This is certainly significant, because up to now at least, shareholders
What are some of these indicators?
Ched McConnell, managing director of McConnell, Budd & Downes Inc., a
*The president is aging and has no children in the bank to replace him.
*Board members own a substantial portion of the outstanding shares.
*Officers and directors have a substantial portion of the their wealth
*The chief executive's health is not the best.
*The CEO needs money for a new home or college tuition.
The bank is far less likely to be in play, according to Mr. McConnell,
*A lawyer is on the board and receives high fees for his service to the
*Board members get unusually high payment for board service.
*The top officer has a nice salary, but few shares of stock either in
Mr. McConnell's suggestions probably are better indicators than any
Can you add to the list of indicators that predict if a bank is likely
If you can, and you are willing to share them with our readers, mail
You, too, may be offered the job of president for a day of old Schmidlap