SNL Tools for Community Banks

– and the tools to use it –can produce higher performance and lowerrisk for your bank.

Better data

1. Your Market

2. Your Peers

3. Pricing Strategies

4. Risk Mitigation

5. Valuations

6. Regulatory Red Flags

7. Board Meeting Requirements

you’re able to evaluate these sevencritical areas, the more competitiveyour bank will be:

The faster

SNL gives you instant access to thedata you need to identify opportunity,drive performance and reduce risk. The challenges of today’s banking industry require faster, smarter decisions. You need to stayahead of shifting markets, competitive activity and regulatory changes. How do you identify yourbest opportunities for revenue and growth? How do you optimize your bank’s performance based on peer performance against specific metrics? What’s the impact of a merger on yourbranch footprint? SNL gives you instant access to timely and accurate intelligence that can impactyour bank’s direction in every area.

SNL ENABLES US TO MAKE BETTER DECISIONSWHILE SAVING US SIGNIFICANT TIME. OUR ANALYSISIS SO MUCH MORE MEANINGFUL.

1. Your Market

Objective: Accurate and insightful market analysis to identify opportunities, design marketing campaigns and set goals to achieve desired results.

SNL solutions: Comprehensive data for analysis ofindividual markets, such as consumer and businessdemographics integrated with deposit market share andinterest rates. Target customers and prospects based onprofit potential. Create instant maps of branch networkslayered with demographic data to visualize your strategies.Identify opportunities with Nielsen Financial CLOUT® datain our Excel Add-In to evaluate the demand for over 100financial products by geographic market.

Sue Savat, Merchants Financial Group, Inc. “ ”

MAP GROWTH OPPORTUNITIES AND PLAN CAMPAIGNS

2. Your Peers

3. Pricing Strategies

Objective: Make pricing decisions not only to win business but to meet corporate goals andshareholder expectations.

SNL solutions: Price your offerings based on real-time competitive data – SNL providescoverage of consumer deposit and loan rates. Balance market-driven decisions with internalgoals. SNL’s platform makes it easy to include estimated cost of funds, perceived default risk,term liquidity and interest rate premiums. Anticipate the effect of rate movements on your financial health and competitive position.

Objective: Benchmark peer performance toplot strategy and evaluate key financial measures for overhead, margins, capitalizationand profitability.

SNL solutions: Peer data and analytical toolsto meet your peer benchmarking objectives.Chart exactly how you compare with yourpeers on key metrics like ROAA, NIM andNPAs/Assets using apples-to-apples templates.Choose from SNL’s prebuilt peer groups orbuild a custom peer group.

Curious where a datapoint on a publiccompany comes from? “Source tagging” onGAAP financials goes to the line item in theoriginal document in one click.

KNOW HOW YOU COMPARE WITH PEERS ON KEY METRICS.

PRICE BASED ON COMPETITION AND INTERNAL GOALS.

• How well you could outmaneuver competitors if you could instantly access and analyze current market data, pricing issues, peer performance and your risk exposure?

• How much easier it would be to forecast future performance or plan M&A if you could quickly model different scenarios with interactive tools?

HAVE YOU CONSIDERED?

YOUR PEERS

CAPITAL ADEQUACY

FINANCIAL METRICS

BRANCHFOOTPRINT

ASSET GROWTHRATE

YOUR BANK

5. Valuations

4. Risk Mitigation

Jon Nelson, Manager of Business Analytics, Rockland Trust Company

Objective: Track metrics critical to a bank’s successsuch as credit quality, credit concentration exposureand liquidity. Maintain a healthy loan portfolio.

SNL solutions: Build risk models quickly using SNL’srobust suite of data and tools, which create more timefor analysis. Track metrics such as credit quality, creditconcentration exposure, capital requirements, liquidity,reputation risk, Basel III Capital and key financial performance ratios versus peers. Instantly create real-time reports to see the health of your loan portfolio or evaluate capital levels.

Objective: Understand the value of your own institution or estimate the market value of a targetinstitution. Identify M&A opportunities.

SNL solutions: Estimate your bank’s value and plan M&A deals with SNL’s valuation data andmodels. Quickly project how changes in your operational strategy can impact the value of yourinstitution. You’ll gain the actionable intelligence you need to make decisions with the potential todrive substantial shareholder value.

SNL’S IN-DEPTH DATABASE OF FINANCIAL METRICS ENABLES US TO QUICKLY ASSESS HOW WE COMPARE TO OURSTATE AND REGIONAL PEERS ON KEY METRICS RELATED TOCREDIT QUALITY AND DEPOSIT MIX.“ ”

MONITOR AND MITIGATE RISK, FROM CREDIT TO CAPITAL.

ESTIMATE YOUR BANK’S VALUE AND EVALUATE M&A OPPORTUNITIES.

6. Regulatory Red Flags

7. Board Meeting Requirements

Objective: Identify regulatory red flags and takepreemptive action. Spend less time preparing forregulatory examinations.

SNL solutions: SNL’s tools have become a criticalpart of our clients’ preparation for regulatoryexaminations and an essential aid in meeting thechallenges of greater scrutiny, including Basel IIIand capital levels. From loan portfolio analysis tostress testing, quickly identify key risks andpotential problems compared to your peers. Viewover 20 years of historical call report financials.Plot trending of key metrics.

Objective: Reduce the time and effort necessary to prepareboard and investor presentations. Demonstrate a compliant,profitable operation with proper risk management controls.

SNL solutions: Assess your bank’s condition and evaluaterisk. SNL’s interactive tools enable you to prepare board andinvestor presentations in less time with less effort. You getdata and templates like CAMELS indicators, deposit andloan composition, Canary Reports and ExecutiveCompensation, plus trending of key metrics from balancesheet to asset quality.

SPOT POTENTIAL PROBLEMS. PREPARE FOR REGULATORY REVIEWS.

STREAMLINE PREPARATION OF BOARD REPORTS.

• The gold standard for banking data trusted by financial institutions since 1987.

• SNL publishes banking data faster than any other provider and is the only one with a 100% accuracy guarantee. We pay $50 for each error found.

• SNL Banker: business intelligence and reporting platform that integrates your internal data in dashboards and scorecards for proactive management.

SNL AT A GLANCE

KEY

FINANCIAL AND PERFORMANCE

TRENDS IM

PACTING RISK

CREDITQUALITY

CRED

IT C

ON

CEN

TRAT

ION E

XPOSURE

CAPITAL REQUIREMENTS

LIQUIDITY

REGULATORY

DEV

ELO

PMEN

TS

REPUTATION RISK

RISK

Download samples of SNL’s powerful tools for banks at SNL.com/BankTools

to the data your bank needs to evaluate opportunity, risk and performance.

Gain instant access

Download samples of SNL’s powerful tools for banks at SNL.com/BankTools

866.296.3743 [email protected]