Listen to the video as Hiram (“Hi”) McCard gives us a report on the bank’s financial performance.
In his presentation, Hi gave a brief overview of Insights Bank’s performance and mentioned loans were growing rapidly under the “Visions for Success” program. He also noted a few loan problems resulting from the loan program and a decline in the bank’s earnings.
Do you think all of the directors heard this message? Did they appear to be paying close attention?
When you listened to the video clip, did you hear Hi mention any potential problems?
It can be difficult to stay focused during long presentations, but it’s important to listen for potential areas of risk that may require questioning.
Hi indicated that management had taken action to address lower earnings by selling some securities for a loss and reinvesting the sale proceeds in higher earning loans. This action contributed to the bank’s loan growth and prospect for greater earnings. From this, he concluded that the “Visions for Success” program had been a “smashing success.”
Are there questions the directors should be asking about Hi’s conclusion?
If Hi’s report on “Visions for Success” left you wondering “what does this mean?," you are ahead of the other board members who weren’t paying attention.