Bring a Book

Going on 18 years of talking with managers it always amazes me when I hear the following:  I want someone who could bring me a book of business.

I totally understand that wish but it gives me great concern for the following reasons.

1.) You are setting the relationship up to fail.  Unless a Bank is closing or getting out of the market their current portfolio will not move initially.  The reason is  the potential hire should have cross selling skills which leverage multiple relationships of the bank with their clients.  Number two Bank traditionally fight hard and not let that business leave and price or another incentive will need to take place.  This will cause less profitability and will require the lender in most cases to have to bring in even more to offset it.

2.) Traditionally those lenders that are managing a decent size portfolio traditionally do not have the same type of business development initiative and therefore will need to reestablish their connections.  This takes time which leads into the other issue.

3.) Cost verse immediate return.  Seasoned lenders who are managing a book of business will require a much higher base and bonus compensation plus a bump to make a move.  To off set their cost to the bank they will need to hit it out of the park right away without being a liability for the first year.  In additional these individuals will have multiple banks looking at them that will drive their cost even higher.

You got to have credit skills but I have found lenders that have COI's and referral sources and the clients give them the ability to tap into higher loan deals or alternative industries and expand their current calling efforts to be an excellent match. 

With a competitive talent market clients will need to look past the easy way and say if I know year one is going to take some time why not groom the person for the long term, because you never know when the next bank just wants to buy that book of business you thought was coming.