The Padgett, Stratemann & Co., L.L.P. Bank Team is composed of 15 professionals, all who receive in-depth industry training and work on bank projects year-round. Members of the Bank Team are also active in IBAT and TBA organizations which allow the opportunity for our members to stay current with industry issues and trends.

Our collective experience gained by working with over 40 bank clients can be demonstrated in our services which include:

• Accounting and Audit services
• Income and franchise tax planning
• Management issues
• Director's examinations and reviews
• Regulatory compliance examinations
• Loan reviews
• EDP security and control reviews
• Sale of bank or branch brokerage

Our goal at Padgett, Stratemann & Co., L.L.P. is to provide our banking industry clients with a wide variety of professional services. In addition, we strive to become each bank client's trusted advisor.

Banking Industry Business Challenges

Profitability Tied to Real Estate Market - Banks are heavily exposed to real estate cycles. Bank loans secured by real estate, mainly commercial real estate but also home loans, typically account for more than half of bank lending. During the last major real estate downturn, average delinquency rates on commercial real estate loans topped 10 percent. Total US construction spending, a growth indicator for banking, rose 8.5 percent in the first six months of 2006 compared to year-ago values.

Dependence on Regulators - Banking is the most highly regulated industry in the US. State and federal regulators have broad powers over bank operations, the types of loans and investments banks can make, the amount of interest banks can charge, equity ratios, loss reserves, capital reserves, liquidity, and a variety of other matters.
The Office of the Comptroller has ruled that banks that issue gift cards will have to disclose more information about hidden fees, expiration dates, and other terms.

For more information regarding the banking team and the services they provide, please feel free to contact:

"Service…More Than Expected!"