2005 SunTrust Banks, Inc. Corporate Banking: …as a Career Option or Stepping
Stone. Pete Nelson. Vice President. SunTrust Bank, Tampa Bay. 813-224-2342 ...
Corporate Banking: …as a Career Option or Stepping Stone
Pete Nelson Vice President SunTrust Bank, Tampa Bay 813-224-2342
© 2005 SunTrust Banks, Inc.
Introduction & Objectives
Banking Overview
Intro ¾ Personal Background ¾ Perspective during my MBA experience ¾ Ask Questions… Objectives ¾ Full Understanding of a Bank and Departments ¾ Job Description – Commercial-Middle Market Banking ¾ Describe Typical Week in the Life of a Banker… ¾ Description of my Current Deals/Clients ¾ Provide Clear Vision of Pros/Cons ¾ Friendly Advice
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Corporate (Commercial) Banking
© 2005 SunTrust Banks, Inc.
Bank – Organizational Overview
Banking Overview
Retail ¾ Branch Network ¾ Retail Investments, Brokerage, Mortgage, etc…. ¾ Business Bankers Commercial Bank ¾ Commercial - $10MM - $50MM Revenue ¾ Middle Market - $50MM -$250/$500MM Revenue ¾ Commercial Real Estate – Builders and Developers ¾ Core Products – Treasury, Merchant, International etc…. ¾ Capital Markets Group to support Commercial Clients and Prospects Personal Wealth Management ¾ Private Banking - $500M - $1MM Liquidity ¾ Wealth Management & Banking - $1MM - $15MM Liquidity ¾ High Net Worth – Family Wealth Management - $15MM and up
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Bank – Organizational Overview
Banking Overview
Cont….Personal Wealth Management ¾ Trust Administration ¾ Portfolio Management Corporate & Investment Banking ¾ Corporate Banking - > $500MM Revenue ¾ Investment Banking – Bankers, Sales & Trading, Equity Research, etc… ¾Products – i.e. Derivatives, Sales/Leaseback, ABL Funds and Corporate Investments ¾ Mutual Fund Companies ¾ Bond Portfolios etc…
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Trends In Banking
Banking Overview
¾Continuation of Acquisition Environment ¾Revenue Growth is Imperative – Sales Focus ¾Capital Markets Products Downstream ¾ M&A ¾ Derivatives – swaps, collars, forwards ¾ Sales/Leaseback ¾ Subordinated Debt/Equity ¾ Cross-selling focus – Depth of Relationship ¾ Certifications – MBA, CFA, CFP, etc…. ¾ Competition more intense and more diverse
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Commercial Banker
Banking Overview
Job Responsibilities ¾Team Leader – Sales/Service Team • Portfolio Specialists, Credit Group, Service Staff, Loan Documentation, Product Specialists ¾Client Relationship Manager: Manage Portfolio of 30 Clients • Loans & Deposits • Cash & Investments • Capital Markets Products • i.e. All products of the bank • Breadth vs. Depth
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Commercial Banker
Banking Overview
cont…..Job Responsibilities ¾ Financial & Business Analysis • Credit Underwriting – sitting on the fence • Financial Analysis & Management • We loan to Owners, not Businesses ¾ New Business Development/Sales • Referrals – Internal, External • Prospecting ¾ Social / Community Involvement • Local non-profit Boards • Community Networking Events • Social-Country Clubs • Sporting Events
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Weekly Calendar – week of January 16, 2006
Banking Overview
Monday, January 16
Thursday, January 19 1:30pm to 4pm - XYZ Prospect Meeting
9:00am - 5:00pm - GOLF with Calabro & Cuffe Pitch M&A (talk with Scott)
Tuesday, January 17 8am - 8:30am CJ mid-term review 2pm - 4pm Tampa Prep Conference Call with Attorneys, Bond Counsel, remarketing agent etc. 4:30 - 5pm - Jesuit conference call - Proposal results 6:30pm - Watch Carlie Wednesday, January 18 8am - 11am - Evergreen Dev. Job Site 2:30pm - 4pm - Kablelink - Expansion Meeting 6pm - 9pm - Wicked w/ Anthony G. E&Y
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5pm - 8pm - Drink w/ Terence at Fred Flemings i.e. Development Deal Friday, January 20 2pm - Vehicle Inspection - Lease turn-in 6:30pm - 9pm - New Port Event
Saturday, January 21 9am - 12pm Wheels of Success - Car Care Class 2pm - 4pm - Carlie Aquarium
Banking Overview
DEAL PROCESS
¾ Meet with Company – Understand all Banking Needs ¾ Narrow Down specific structural hot buttons ¾ Analyze Financial Strength ¾ Cash Flow ¾ Capitalization ¾ Guarantor Strength ¾ Compare Client’s Request to Bank’s position based on Risk Profile ¾ Create Deal Presentation ¾ Present to Credit for Approval ¾ Overcome Objections ¾ Present to Company for Acceptance ¾ Overcome Objections
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Banking Overview
Deal #1 – XYZ Medical
Overview ¾ Business: $30MM distributor of medical beds ¾ Strategy: Roll-up of Dealer Network, Product Expansion, Potential Liquidity Event ¾ Situation: Shopping for new bank…current bank too small. Looking for relationship, low pricing/fees, lack of personal guarantees ¾ Typical Needs: Term Debt, Line of Credit, CREM ¾ Potential Needs: Subordinated Debt, Equity etc…. Challenges ¾ Personal Guarantees ¾ Receivables – Concentration and Duration - Medicare ¾ Strong Competition – skinny deal ¾ Leverage Covenant
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Banking Overview
Deal #2 – Tampa Prep
Overview ¾ Business: Private School in Tampa ¾ Situation: $20MM VRDB (Variable Rate Demand Bond) issued by City of Tampa for construction of campus in 2001. Wachovia Letter of Credit currently provides credit enhancement for bondholders, and charges Tampa Prep annual fee for this. They informed Tampa Prep the fee was increasing by 25 bps. ¾ Opportunity: I was given the opportunity to underwrite the deal and replace Wachovia’s Letter of Credit. ¾ Result: Won Deal – Replacing Facility on 2/7/06 Challenges - Logistics ¾L/C Provider - Counsel ¾ Bond Trustee ¾ Remarketing Agent ¾ School – Financial Advisor ¾ Investors - Bond Counsel
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Banking Overview
PROS / CONS
PROS ¾Training Program – Credit & Risk Management ¾Truly understand Corporate Growth, Financial Analysis and Capitalization ¾ Develop Strong Knowledge of Numerous Industries ¾ Quality of Life – Hours, Flexibility, Goals & Expectations ¾ Sense of Community ¾ Defined Career Path & Decent Compensation ¾ Opportunity to Change Career Path within the Bank ¾ Introduction to Numerous Business Owners ¾ New Business Opportunities every Day CONS ¾ Once you go Commercial, it’s hard to go Investment or Corporate ¾ To some: Sales Pressure and Daily Performance Requirements ¾ Bank Compliance Issues are Mundane and Constant ¾ Tampa Tribune is more important than Wall Street Journal ¾ Compensation is earned, not given with the degree
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Banking Overview
ADVICE – CAREER SEARCH & OTHERWISE
¾ GET CFA DESIGNATION ¾ LOOK AT THE CAREER SEARCH AS THE NEXT STEP, NOT THE FINAL STEP ¾ MAKE COMPENSATION SECONDARY ¾ SALES FOCUS IS IN EVERY BUSINESS….IF YOU DON’T LIKE IT, FIND A WAY TO CONVINCE YOURSELF ¾ START BIG IN THE SERVICE INDUSTRIES i.e. CONSULTING, BANKING etc…
………………QUESTIONS?
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