BH Financial® Case Study

Banking Market Penetration Study and Relationship Management Search

Our client is a regional commercial bank with a strong market presence in western and central Massachusetts. Economic change throughout their footprint has caused a decline in new business opportunities within their target market, which consists primarily of manufacturing companies. The bank’s management team has spent the majority of their careers with the bank and their customers and referral sources were tied to this region and its eroding economic base. It was apparent that they needed to tap into the Boston Metro area to achieve growth and expand profit margins. The bank considered partnering with another bank with roots in eastern Massachusetts but determined it was not viable. The only alternative was to recruit new relationship managers from within the Boston market.

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Challenge

Without an existing platform in this market, it is very difficult to attract top level producers. This was compounded by the fact that the bank had no market presence in the area and its track record did not reflect the ability and commitment to structure and underwrite very large complex transactions.

Solution

Knowing the best way to attract top-tier talent is to have top level talent already on the team, we worked with the bank’s executive committee to identify several key players in the greater Boston banking community; successfully recruiting one of these top-level producers to join the bank as “the first one in.” We ensured success by properly designing the department and the mission of the new initiative, and by structuring the compensation package so it was compelling enough to offset the risk associated with joining a bank without a proven track record in the market.

The Results

Once this person was on board and operating in the market, we were able to hire two more market-leading producers. The bank has established its presence in the Boston area successfully booking new business, with plans to create another new business group in Northeast Massachusetts.