Anyone heard any updates on the bank side? We’ve been waiting for the hammer to drop for about 6 months now. In the meantime, no one seems to care about the customer or the stressed out employees.
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Having been a "brought in" leader, I agree that there seems to be a pattern of quick exits. SF operates a bank but doesn't have the appetite to do what is necessary for success.
Yep. The regulators treat the bank as a mid sized bank, so they better hire someone with mid sized corporate banking leadership experience. Not finding that in central Illinois. Unfortunately it's been a revolving door of directors they've brought into certain positions that werent from central Illinois. They get in the door and can't get out fast enough. They're going to have to back a money truck up to someone's front door to get them to take over the dumpster fire and stay long term, but it can be done.
Not longing for Stan, and I agree they need someone from a national level organization - not a local yokle. But they have an insurance guy running it now, with mostly SF lifers in C-level desks and a CIO that maneuvered through the ranks by kissing a$$ and pushing EOM and CDE rather than learning anything about banking.
To the person longing for Ommen, he made ridiculously risky and downright stupid loan decisions. They need someone to come in that has managed more then a central Illinois credit union or community bank to fix this.
But the Bank doesn't even have bankers running the bank anymore. Stan Ommen is probably fit to be tied seeing what happened to what he built
I feel like it goes against their direction of offering more than just insurance. Seems odd to put so much into the bank and just abandon it. Would be a heavy choice as well given the number employed by the bank.
The bank is ripe for a restructure and I think it could really turn itself around with better direction from management. Need to sort out how to better align similar function teams.
The bank is a compliance and regulatory cost and resource drain.
The bank contributed 200 million while the P&C operation contributed over 60 BILLION.
I was told they have no active plans to sell the bank. They put out feelers to see what return they might get, but there are too many projects that haven't been killed for them to actually have decided to sell it. As soon as the CMS updates are stopped, then I will be more worried. The bank is a revenue stream for the company and has the potential for significantly more if they can manage it right
They are definitely selling SFBank. The question is how they will retain their customer base, that they have built and protected all these years. They will most likely have a marketing agreement in place for SF to keep the customers and the buyer to own the assets and manage service. It is a difficult arrangment to manage.
One poster below mentions that Bank made money and another said they lost. The Bank made money, a little. But they also provided mother mutual with almost $200m in contributions toward their operating expense and the Interest Expense at the Bank is revenue to Mutual.
I have heard State Farm is looking to spin off the bank.
I heard it’s going to happen between tomorrow and 2027, stay tuned for an update...
The bank made money last year unlike mother mutual
Well considering in the financial report today that bank had a 1 million loss compared to a 39 million gain last year I'd say Bank is not looking like a place you want to stay in for too long.....