Improving profitability, minimizing risk and maintaining growth in a challenging banking environment – these were some of the strategies discussed in detail during Commerce Street Capital’s (“CSC”) 14^th Annual Banking Conference. More than 200 regional and community bankers in attendance heard insights about ways to positively influence bank performance amid elevated market volatility, increased regulatory challenges and an uncertain economy.

A key theme of this year’s conference was the impact global and national issues have on local community banks. In opening the conference, CSC’s Chairman Tex Gross welcomed attendees and said, “Whether you are in Bowie, Bellville or Beaumont, today, you must have a world view.”

Reva Bhalla, Vice President of Global Analysis for Stratfor Global Intelligence, opened the conference with her presentation entitled “The Global Crunch – How We Got Here. Where We’re Going.” Ms. Bhalla outlined global economic trends over 20-year cycles. Bhalla further explained that the U.S. is in a much stronger position for growth than the rest of the world, given that the projected demographics of the U.S. population isn’t as heavily weighted by senior citizens as other countries.

“As community bankers we have a lot of insight into our local economy, but banking is very much influenced by world issues,” remarked Dory Wiley, CSC’s CEO and President, as he began his overview of the banking industry. “Indications are the 2016 market will continue to be volatile based upon weakness in the U.S and world economy and political instability across the globe. This volatility presents a buying opportunity for banks.” Speaking on the stock market, Dory explained that, “The stock market should produce 3 to 5 percent returns with bank stock returns potentially outperforming, at closer to 10 percent return.”

C.K. Lee, Managing Director of the Financial Institutions Group at CSC discussed bank M&A noting that consolidation will continue to lag due to the energy market downturn and decreases in acquirer currencies. In 2015, bank M&A deal value reached $26.6 billion compared to $18.8 billion in 2014. So far this year, only $6.6 billion in bank deal announcements have been made. “There will be buying opportunities of banks in rural areas due to succession and demographics,” Lee stated.

John D. Steinmetz, President and CEO of Vista Bank in Lubbock, Texas, emphasized the importance of keeping up with technology, creating a culture of customer service and developing partnerships with industry leaders as keys to ongoing growth for his $330 million bank that recently expanded into the DFW market. Craig Scheef, Chairman and CEO of Dallas-based Texas Security Bank, discussed how championing entrepreneurs and relationship management led his bank to being one of the healthiest banks in North Texas. Delivering customizable offerings and knowing what your bank does best are the keys to Laurel, Maryland-based, Revere Bank’s success competing against larger banks according to the bank’s co-President and CEO, Kenneth Cook. Revere Bank is a $1.1 billion bank located in suburban Washington, D.C.

John Mauldin, Chairman of Mauldin Economics, shared insights into the economic environment over the next five years. Mauldin noted that the U.S. economy is growing by less than 2 percent annually and that the country is currently in the third-longest recovery period in history without a recession. He expects a recession is on the horizon, but Mauldin is optimistic that there is a path to stimulating growth, creating new jobs and spurring economic recovery. Sydney Menefee, Deputy Chief Accountant for the Office of the Comptroller of the Currency in Washington, D.C. gave an overview on the new Current Expected Credit Loss (CECL) model. Along with being scalable like today’s financial modeling methodologies, CECL will allow institutions to revert to a historical loss experience for periods beyond which the organization is unable to reasonably forecast, according to Menefee.

Dory Wiley, Mark Whidby and Greg Mykytyn of Commerce Street Peak Advisors discussed organizations reducing risk and improving performance within their 401(k) plans.

Brian Johnson, Managing Director in CSC’s Financial Institutions Group, moderated a panel that discussed recruiting top talent for banks and boards. The panel, which included Tommy Ellison, Chairman of the Board of Commercial Bank of Texas in Nacogdoches, Texas; Robert Strong, Executive Vice President of Commercial Banking for Mutual of Omaha Bank in Dallas; and Doyle Lee of Lee Training & Consulting provided key strategies to improve employee communication and attract millennials. The panel agreed one key element to successful multi-generational companies is implementing “reverse mentoring,” where younger colleagues assist older colleagues in understanding them, current technology and optimal communication.

Guillermo Borda of CSC discussed the Community Reinvestment Act (CRA) credit. Borda explained that banks should develop a portfolio of public welfare investments by investing in assets such as SBICs, Low Income Tax Credit Funds, CRA Mutual Funds and MBS.

Danielle DiMartino Booth, President of Money Strong, LLC wrapped up the conference by discussing the state of debt in the U.S. and the duty of the Federal Reserve to restore the financial markets to their proper function as price discovery mechanisms. DiMartino Booth noted that while income has stagnated, debt from student loans, mortgages and credit cards continues to rise.

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About Commerce Street Capital

Commerce Street Capital, LLC (“CSC”) is a private investment banking firm headquartered in Dallas, Texas. Led by veterans of the banking industry, CSC specializes in investment banking services (mergers and acquisitions, valuations and regulatory issue advising) and bank development (on-site consulting, sales and management of bank capital raises, market assessments and the bank regulatory application process). The firm provides tailored solutions for all or part of a financial institution's business lifecycle. For more information, visit www.commercestreetcapital.com or call 214-545-6800. CSC is a member of FINRA/SIPC.

This press release is for information purposes only and does not constitute a solicitation or offer by Commerce Street Capital, LLC, to buy or sell any securities, futures, options, foreign exchange or other financial instrument or to provide any investment advice or service. The testimonials stated within this press release may not be representative of the experience of other clients. The testimonials stated within this press release are not indicative of future performance or success. The testimonials stated within this press release are not paid testimonials.     

DALLAS – March 9, 2016 – StreetLights Residential  has opened its newest addition to the city of Dallas, a residential high-rise named The Jordan, located in Dallas’ Uptown neighborhood at 2355 Thomas Ave., one block from Klyde Warren Park. The leasing center for these luxury apartments opened Friday, March 4, and the first move-ins began Tuesday, March 8.

The Jordan provides 23 stories of beautifully-designed apartment homes for those who desire to live, work and play in the city center. It offers easy-access to other vibrant areas in Dallas, such as downtown and the Arts District. In addition to the building’s ideal location, the 212 luxury apartments feature first-class amenities to make an impressive urban home. One of the most unique amenities is the resident bar, which will open on Thursday, March 17.

“Due to the team’s hard work and tremendous support from our partners, this project came together just as we envisioned,” said StreetLights CEO Doug Chesnut. “The design, architecture and interiors all work together to create a great atmosphere for residents. Apartments at The Jordan will provide a luxurious home and offer an exceptional experience.  We are excited to reveal the final product.”

The community offers a comprehensive amenity package designed to deliver cosmopolitan elegance with five-star luxury. A 24-hour concierge team will provide an un-paralleled service experience.  Residents can socialize at the beautifully landscaped seventh-floor pool or the resident lounge, both of which offer captivating views of the city. Complete with a pet park, expansive fitness center, electric vehicle charging stations and much more, The Jordan is the finest urban home.

With options of one- or- two bedrooms, units range in size from 735 to 2,262 square feet, inclusive of four penthouse homes. Every unit is complete with a private balcony. The units also contain one of the finest cabinetry packages in the market, with custom solid wood cabinets, slab granite countertops and full granite backsplashes. Penthouse homes offer extra features including fireplaces, 12-foot ceilings, wine refrigerators and upgraded walk-in closet systems.

StreetLights developed the project and SLR Uptown Construction LLC served as general contractor.  The interior units were designed by StreetLights Residential and the interior amenity areas were designed by Waldrop + Nichols Studio, LLC. The architecture design was by GDA Architects, and the landscape was designed by Studio Outside. 

Other StreetLights Dallas-Fort Worth developments include, The Kelton at Clearfork, a four-story residential community, comprised of 392 units, located in Fort Worth, Texas which is now leasing.  The Kathryn - The Canals at Grand Park  the first phase of a three-phase masterplan in Frisco, Texas which will start pre-leasing this summer. With a mix of flats and townhomes, Phase I represents 365 units of the master planned community which includes 1070 units total. The McKenzie, a 22-story residential high-rise located at the corner of Harvard Ave. and Tracy Street in Dallas; The Austin (Trinity Green), a four-story residential community, comprised of 353 units, located in the Trinity Groves area of Dallas; and, The Case Building, a 17-story residential high-rise in Dallas’ Deep Ellum neighborhood.  For more information about The Kelton, The Kathryn, The McKenzie, The Austin (Trinity Green) or The Case Building, visit streetlightsres.com.

About StreetLights Residential

StreetLights Residential specializes in new urbanist apartment homes and mixed-use developments. Its business plan focuses on building around the highest home prices (price per square foot).  With in-house development, design, and construction expertise, the StreetLights team focuses on custom luxury communities which rival the experience, lifestyle, and amenities of living in an urban boutique hotel. Since StreetLights’ inception in 2011, it has grown to more than 100 employees in development and construction companies with offices in Dallas, Austin, Houston, San Diego, Nashville and Phoenix. For more information, visit www.streetlightsres.com.

About SLR Construction

SLR Texas Construction was formed in 2011, with regional offices in Dallas, Austin and Houston.  The core leadership of SLR Texas Construction has worked together for 15+ years and has completed several thousands of units ranging in product type from suburban stick product to high-rise luxury multi-family.  The group prides itself on being able to successfully implement complicated urban, high density projects.

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Commerce Street Capital, LLC (“CSC”), a premier investment banking firm serving financial institutions and middle-market companies, has announced the formation of a dedicated real estate team.  CSC’s Real Estate Investment Banking Group (“REIB”), a strategic initiative launching at the beginning of 2016, is a focused team of experienced managing directors with a proven track record in structuring real estate debt, equity and other complex financial transactions.

“We are pleased to bring this new offering that will complement the respective strategies and objectives of our clients,” said Dory Wiley, president and CEO of CSC. “We’re confident that the deep and broad real estate experience of our new team will bolster the success of our clients.”

CSC’s REIB group prides itself on its extensive knowledge of the real estate capital markets. REIB consists of managing directors Claudia Betancourt, John Dienes, Michael Hunter, James H. Polk, III and vice president and principal research analyst, George Kirchwey.

The deep and broad real estate expertise of CSC’s real estate team complements the needs of the firm’s banking clients, family offices, institutional associations and high net worth individuals. With access to such diverse sources of investment capital, CSC has the resources to facilitate a variety of transactions that encompass all property types and financial products, including but not limited to construction loans, fixed and floating rate acquisition financing, mezzanine debt, bridge loans, credit facilities, equity and joint venture equity investments.

About Commerce Street Capital

Commerce Street Capital, LLC (“CSC”) is a private investment banking firm headquartered in Dallas, Texas. Led by veterans of the banking industry, CSC specializes in investment banking services (mergers and acquisitions, valuations and regulatory issue advising) and bank development (on-site consulting, sales and management of bank capital raises, market assessments and the bank regulatory application process). The firm provides tailored solutions for all or part of a financial institution's business lifecycle.

For more information, visit www.commercestreetcapital.com or call 214-545-6800. CSC is a member of FINRA/SIPC. 

JPI, a national developer, builder and investment manager of Class A multifamily assets, has named two new vice presidents and one senior vice president to its leadership team. Each of these executives are based in the Dallas office and are among the growing number of employees in JPI’s offices in Texas, Arizona and California.

Matt Brendel was promoted to Development Partner and Senior Vice President. Brendel began his career at JPI in 2010. In his new leadership role, Brendel is responsible for acquisition, development and asset management activities for all of Texas. He has more than 15 years of experience working in the multifamily industry, and he has served in various roles with leading multifamily firms during which he was responsible for assets with a total market value of more than $3 billion. Brendel is a member of The Real Estate Council (TREC) and Urban Land Institute (ULI). He received his Bachelor of Business Administration in Accounting and Master of Science in Finance degrees from Texas A&M University in College Station, Texas.

Dusty Broadway was promoted to Regional Vice President and made a Construction Partner, and is responsible for overseeing all construction and pre-construction activities within the central region. Broadway began his career with JPI in 1995 in field operations expanding his experience to project supervision within the Dallas market. Prior to re-joining JPI in 2012, Broadway spent 11 years working in the third party/general contractor arena where he gained added expertise in contract negotiations, project execution and client relations on HUD, conventional, student, senior and assisted living projects throughout the Texas market. During his tenure in the industry, Broadway has been involved in the development of more than $1 billion worth of assets totaling more than 8,000 multifamily units. He holds a Bachelor of Science degree in Construction Management from University of Louisiana at Monroe and a MBA in Corporate Finance from University of Dallas.

Chuck Berberich was promoted to Vice President of Design Management. Berberich joined JPI in 2013 and brings nearly 30 years of architectural experience to JPI, including 15 years of country club clubhouse design projects from all regions of the United States. He has an array of experience including luxury multifamily, custom residential design, federal, state and local government projects as well as restaurant design. Under Berberich’s leadership, he has helped JPI deliver best-in-class communities with innovative amenities and construction that meet consumer demand. He holds a bachelor’s degree from Northern Kentucky University and architectural licenses in Texas and Wisconsin.

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About JPI

JPI currently has nearly 3,400 units under construction in Texas, California, Arizona, New York and Massachusetts and has asset management responsibilities for more than 6,700 units nationwide.  JPI has plans to develop an additional 4,000 units over the next 18 months that are in various stages of planning and pre-development and is currently raising capital to complement its venture platforms in order to fund its expansion and business plan. The firm offers investment management, pre-development, underwriting, marketing and asset management services as well as construction, financial and administrative services. To learn more about JPI, please visit www.jpi.com.

Improving profitability, enhancing efficiency and increasing shareholder value in a challenging banking environment – these were some of the strategies discussed in detail during Commerce Street Capital’s (“CSC”) 13^th Annual Banking Conference. More than 200 regional and community bankers in attendance gained valuable insight about ways to impact bank performance amid declining oil prices, increased regulation and a possible downturn in the economy.

“Following the public market retreat from financial stocks during the economic recession, a large valuation void formed,” remarked Dory Wiley, CSC’s CEO and President, as he began his overview of the banking industry. “In addition to investor confidence filling the gap, banks have improved their fundamental strength, supported by an upward trending economy.”

Wiley cautioned banks about becoming “melting ice cubes” in the low interest environment. He told the room full of bankers not to assume that interest rates will rise, when in fact they could stay the same or even decrease.

The ‘status quo’ is a very risky bet for a conservative mindset,” Wiley explained. “Banks are reclassifying a large portion of their securities portfolios to hold to maturity in order to try to shield capital levels ahead of a potential rate hike. The economic risk is still the same, they have less flexibility, and regulators will still note the decline value as a risk to capital. Why do that?”

The discussion “Banking Strategies: Capital and Earnings” led the conference as a panel of bankers summarized their successful, yet diverse approaches to increasing shareholder value. Moderator Scott MacDonald, Ph.D, President and CEO of Southwestern Graduate School of Banking Foundation at Southern Methodist University stated, “Over-risked loans financed with borrower money maybe didn’t create as much value as we thought they did. It’s becoming clear that the quality of the footprint, not the size of the footprint, is what’s most important.”

Panelist Tom Bennett, Jr., Ph.D., Chairman and Co-CEO of First Oklahoma Bank based in Jenks, Oklahoma, said banks should have a key strategy for becoming bigger in order to maximize shareholder value. He noted, “In the interest of creating value for our stockholders, employees, customers and community, we are focused on a business model of quality growth, which has the effect of reducing present earnings as we hire staff, market our services and build our reserve for loan losses.”

Kevin Gibbens, President and CEO of Landmark Bank in Columbia, Missouri, emphasized the importance of raising capital as a key driver of growth for his $2.2 billion bank.

“Strategic post-recession planning” was the key to Arlington, Texas-based, Affiliated Bank’s success according to the bank’s President and CEO, Garry Graham. Affiliated Bank’s post-recession strategy included moving into the residential real estate business to fill the capital allocation and returning to that market before other bankers grew their market share. Graham said the realization that their real estate lending was in “post correction” values and keeping the regulators well-informed of their strategies and execution contributed to the bank’s success.

C.K. Lee, Managing Director of the Financial Institutions Group at CSC noted that Texas is seeing a “hollowing of the middle market” in banking. Dallas and Houston have 20 banks that are between $1 billion and $10 billion in asset size. These banks are currently performing well and are likely targets for competitors both in and out of the market.

“The expected consolidation of the banks in that asset size will create a gap in the banking sector,” Lee explained. “This will create a remarkable opportunity for the $200, $500 and $700 million-dollar banks to fill that gap.”

CSC’s Brendan Achariyakosol moderated a panel on falling oil prices and its impact on banking in the Southwest. The panel, which included bankers Dewey Bryant, CEO of SouthWest Bank in Odessa, Texas and Russell Shannon, President/CEO of National Bank of Andrews, noted that in the Permian Basin, consumers and business owners have taken the recent drop in oil prices in stride.

 As a veteran in the oil and finance industries, panelist James Wicklund, Managing Director of Equity Research for Credit Suisse, explained that Texas has yet to feel the full impact of falling oil prices stating, “We haven’t seen it fully hit yet, but it’s estimated that this will be the second worst downturn in 40 years.”

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About Commerce Street Capital

Commerce Street Capital, LLC (“CSC”) is a private investment banking firm headquartered in Dallas, Texas. Led by veterans of the banking industry, CSC specializes in investment banking services (mergers and acquisitions, valuations and regulatory issue advising) and bank development (on-site consulting, sales and management of bank capital raises, market assessments and the bank regulatory application process). The firm provides tailored solutions for all or part of a financial institution's business lifecycle. For more information, visit www.commercestreetcapital.com or call 214-545-6800. CSC is a member of FINRA/SIPC.

This press release is for information purposes only and does not constitute a solicitation or offer by Commerce Street Capital, LLC, to buy or sell any securities, futures, options, foreign exchange or other financial instrument or to provide any investment advice or service. The testimonials stated within this press release may not be representative of the experience of other clients. The testimonials stated within this press release are not indicative of future performance or success. The testimonials stated within this press release are not paid testimonials.