A Letter from BBOK President/CEO Calvin Coady
This past quarter has been interesting to say the least.
Our financial results remain positive – primarily driven by PPP loan activity. The BBOK lending team and personnel from other departments processed nearly 700 loans for 36 banks totaling approximately $44,000,000. That activity temporarily expanded our balance sheet and bolstered income. More importantly, we were able to help our customer banks with director loans and overflow, allowing bank staff to focus on solidifying customer relationships and matching demand.
The challenges of the past quarter will ripple through the economy and continue to expose weaknesses and risk. In response, we are taking a cautious financial approach, increasing ALLL provision by $350,000 and tying that increase to loans requesting payment modifications. While we remain hopeful the economy will bounce back quickly and the stimulus is sufficient, we believe in the importance of strong reserves to prepare for adversity. We believe in maintaining our position as a trusted partner that delivers strong financial strength to Kansas community banks.
From an operating standpoint approximately 70% of our staff are working remote. Overall, our pandemic plan was well executed. We continue to address gaps when presented and make modifications where necessary. Through this time, we have also been able to complete some strategic initiatives which expedite processes, such as our automated underwriting system in the Bank Card department.
Through these challenges our budget is staying close to projection. The balance of the year remains somewhat unpredictable. One thing I can ensure is that a considerable amount of time will be spent focused on the future by:
- Investing and testing new marketing solutions for our Bank Card program.
- Processing PPP loan forgiveness.
- Preparing for the new banking future and workplace accommodations.
We truly miss visiting our bank partners in person but look forward to staying in touch with you via WebEx video conference, phone or email. I firmly believe within the challenges we face there are unlimited opportunities. Our two outstanding interns have shown that the bankers of tomorrow are eager to make their mark in our industry.
Thank you for your continued trust in us.