Audrey HawthorneChief Strategy Officer · Essays & perspective

Audrey Hawthorne / Chief Strategy Officer

Three arguments about how a regional bank funds itself and grows

Perspectives from a life in leadership.

The latest essay

Deposit franchise and interest-rate risk5 min read

A deposit is core when it runs the client's business

After March 2023 I stopped classifying deposits by their age. The balances that stay through a frightening week are the ones a client's payroll, payables and collections depend on, and a bank should build its securities book, its pricing and its bankers' pay around that distinction.

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The archive.

Deposit franchise and interest-rate risk

  1. Deposit franchise and interest-rate risk5 min read

    A deposit is core when it runs the client's business

    After March 2023 I stopped classifying deposits by their age. The balances that stay through a frightening week are the ones a client's payroll, payables and collections depend on, and a bank should build its securities book, its pricing and its bankers' pay around that distinction.

    Open essay

Bank M&A and regulatory approval

  1. Bank M&A and regulatory approval5 min read

    Design a bank deal for the wait, not the announcement

    Much of the value lost in a bank acquisition disappears between announcement and closing, while the seller is frozen and its bankers are courted. A buyer should assume a long review, let the seller keep competing and settle the obvious objections before it files.

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Private credit and middle-market lending

  1. Private credit and middle-market lending5 min read

    We stopped competing with private credit for the term loan

    Direct lenders now offer sponsor-backed companies more debt and fewer covenants than a regional bank should. We withdrew from that contest and concentrated on the revolver, the treasury relationship and careful lending to the funds themselves, which carries a concentration risk of its own.

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