34 MAY / JUNE 2017 The way we do business is rapidly moving in new directions, and our industry has never before been in a position to influence, and be influenced. Join us at this year’s ABA Annual Convention as we channel this momentum into real ideas and actionable solutions. ABACCONVENTION OCTOBER 15–17, 2017 CHICAGO, IL Tom Ricketts Executive Chairman, 2016 World Champion Chicago Cubs Chairman, Incapital LLC General Michael Hayden Former Director, Central Intelligence Agency and National Security Agency Marcus Lemonsis Host of CNBC’s The Profit CEO of Camping World and Good Sam Enterprises FEATURING… aba.com/Annual | 1-800-BANKERS #ABAAnnual • Make sure all owners and spouses are involved in the decision-making process; • Obtain as much information and facts about the operation as possible; • Make certain the borrowers recognize the deficiencies in their operations, and that they take ownership for the losses and deficiencies; • Work “by the numbers” – let the numbers do the talking; do not digress into history or emotional topics; • Make sure the borrowers can prepare their own financial projections, or that they can obtain help in doing so; • Identify what must be changed to make the operation viable – make certain the borrower understands that changes must be made quickly, with drastic reduction in expenses and changes in operations; • Agree on a plan of action; • Provide incentives to the borrower if he or she makes changes and meets projections – examples of incentives include reduced or waived fees and maintained or reduced interest rates; • Make the borrowers track their progress-actual versus projections – have borrowers prepare monthly cash flow statements and monthly reports; • When the borrowers fail to comply with the agreement, enforce the loan agreement requirements immediately; • Recognize borrower’s successes, as well as failures; • Discuss the alternatives if the borrower cannot comply with the workout plan; • Ensure the borrower understands the breakeven prices; • Run alternative price scenarios, so the borrower understands the effect of pricing. Understanding and implementing the steps above can help your bank, and your agribusiness customers, avoid a return to the stress felt during the 1980s. HB IBA Cybersecurity Conference At this signature IBA event, security experts will heighten your awareness of recent industry trends, as well as provide you with the tips and tools to counteract security risks. Network with other community bank cybersecurity officers, while learning from top experts in the field. Click on the icon at left in HB Digital to register, or go to indianabankers.org/education-events. Carmel OCTOBER 1112
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