Saturday Morning Humor

Steve Stifler (@StevStiffler) tweeted at 8:20 PM on Fri, Jun 07, 2013: Cigarettes are just like hamsters. Perfectly harmless, until you put one in your mouth and light it on fire.

Wyoming Billboard Feedback

Tell Rodney to quit sightseeing and get back to Burning!

From AJ MCLAUGHLIN-BENTON COUNTY, IA

From Bryan Bayness- Buchanan County, IA

Buried ECI Coop sprayer!

Cash hog prices strong

Rumblings in the country is that packers paid up to $102/cwt for cash lean hogs yesterday.

Wyoming Billboards

Driving through Wyoming saw a lot of pro-Ag and conservative billboards. Thought they were pretty cool!

Sent from my iPad

Wyoming Billboards

Wyoming Billboards

Wyoming Billboards

Wyoming Billboards

Wyoming billboards

Hog Futures Rising

The Final Drive (@TheFinalDrive) tweeted at 8:18 PM on Thu, Jun 06, 2013: Hog futures climbed to a 23-month high on speculation that U.S. consumers are switching to pork as a cheaper alternative to beef.

Hay For Sale: Small Squares

Approx. 500 small square hay bales For Sale

in Buchanan County

Call Paul for details: 319-961-0829

The Profitability of the Average Checking Account

The Profitability of the Average Checking Account
By: Tyler Spaid, Mike Branton
AS SEEN ON: http://www.bankdirector.com/board-issues/retail/the-profitability-of-the-average-checking-account/

The bank down the street just did away with free checking and one of their upset customers closed the account and opened a free account at your financial institution. Good news, right?

Let’s look at this a little more closely. What balance did that customer bring? Did that person open any other relationship products? How many times does that person swipe a debit card per month? What balance did that customer bring? Did that person open any other relationship products? How many times does that person swipe a debit card per month?

Maintaining a customer’s checking account costs your financial institution money. The American Bankers Association estimates the annual cost to a bank to maintain a checking account is between $250 and $400 per year. For community financial institutions with less than $5 billion in assets, the average according to other researchers is closer to $250 to $300.

So what costs are included in these figures? The research shows printing, staff, legal and compliance, processing, fraud prevention, and other overhead costs are the main factors in the cost to maintain a checking account. Some argue overhead shouldn’t be included in the calculation since financial institutions will have branches, tellers, and ATMs no matter what their product mix may be—these are simply a cost of doing business. But think about the typical branch overhead for a moment. A great deal of these costs support those customers dealing with transactions and activities related to a checking account. Do you really think ATMs were invented for the loan customer?

So let’s objectively look at what the average consumer checking account looks like. According to StrategyCorps’ proprietary data on nearly 100 financial institutions and over 2 million demand deposit accounts during the last 12 months, we’ve found the average checking account balance is $5,600 with the following annual revenue contributions:

Net interest income $252

Service fees of $8.33

Miscellaneous fees $7.12

Overdraft fees $92.75

Debit interchange revenue of $53.43

These averages total $413.63. That would seem to suggest the average checking account pays for itself, right? No. Averages don’t tell the real story. Of all the financial institutions analyzed by StrategyCorps, we found almost 40 percent to be unprofitable - not covering what it costs to maintain them.

What do unprofitable customers look like? They tend to have very low debit swipes, about six times per month. They have practically no other relationship other than checking. Only 17 percent have more than one demand deposit account, only 23 percent have a savings account, only 1 percent have both a savings and a loan product, and 3 percent have a loan. The average balance is $812. Total annual revenue contribution for all unprofitable accounts is $92. Overall, unprofitable customers comprise only 2.7 percent of all checking-related revenue and 1.4 percent of total relationship dollars.

Contrast this with profitable customers. Their average balance is $8,000, the average monthly debit swipes are 15, 54 percent have more than one DDA, 60 percent have a savings account, 30 percent have a loan and 20 percent have both. The average revenue contribution is $1,650.

Within this group is a sub-group we call the super-profitables. This group contributes over $6,200 each annually, makes up only about 10 percent of a bank’s checking account base, but not surprisingly, contributes 54 percent of the checking-related revenue and 67 percent of total relationship dollars. Super-profitable customers carry an average checking balance of $23,800, savings of $57,000, and loans of $68,000. More than 72 percent have multiple demand deposit accounts, 81 percent have savings, 59 percent have loans, and 46 percent have both.

Now let’s get back to that customer you’ve just landed from the financial institution down the street. The good news is that you now have the opportunity to develop a relationship that you didn’t have before. However, making that relationship meaningful to your bottom line means this customer needs to have large average total relationship balances, be a power user of the bank’s debit card, be an occasional or chronic fee generator, or be a combination of these. If the financial relationship is shallower than this, it’s costing you money.

So celebrate getting that new customer. Then realize the financial realities of the profitability of a consumer checking account and get to work doing the right things to make sure that that account is profitable to your financial institution, namely selling other products that they want to buy from you and, in some cases, gladly paying your financial institution a fee for doing so.

Replant Checklist

Chip Flory (@ChipFlory) tweeted at 9:03 AM on Tue, Jun 04, 2013: "Replant Checklist" from IA ST: Good info... check item 3 for table of impact of planting date on yield. http://t.co/LQAp6ZNLe8 #pfnews

From Marcus Norman- Buchanan County, IA

From: "Marcus"

Date: Jun 3, 2013 10:55 PM
Subject: Fwd: 7 Day
To: "Pete Burmeister" <prburmeister@gmail.com>
Cc:

This is getting old.... MN

            

From Scott Hingtgen- Jackson County, IA

Finished beans last night (Monday). Have 19 acres of corn to replant (my mistake). Then will plant 25 acres of sorghum/sudan to try and stretch corn silage supply. Usually we are the last to get done, feel fortunate to be done. It is hard for us in this little corner of Iowa to think how bad it is around us. Good luck to all.

Waterloo Open Caddies Needed

From AJ McLaughlin- Benton County, IA

Unplanted Corn Acre Math

Max Armstrong (@maxarmstrong) tweeted at 4:57 PM on Mon, Jun 03, 2013: UNPLANTED CORN ACRES: Of 8.7 million corn acres unplanted, 4.6 million acres are in MN, ND, IA and WI...early frost sensitive states.

Agronomic Meeting Invite

Hey Pete,

 

We are going to have a meeting Wednesday morning from 8:00-10:30 at our warehouse located at 3238 Jamestown Ave. Rowley Iowa.  Anybody is welcome to attend this meeting.  We would like to be able to answer any questions that producers may have ranging from crop insurance to agronomic issues to marketing. 

We will have Jeppe Nelson from PHI Insurance here to answer any questions about crop insurance, prevent plant, or maybe just what your options are in general.

Chip Flory from Pro Farmer will be here as well to provide some insight into the markets so we can all try to maximize our marketing in this difficult growing season to this point.

Finally we will have somebody here from Pioneer to touch on any agronomic issues.  How long can submerged crops survive?  Nitrogen?  Potential pests and diseases. 

We intend to have a short presentation from each person so that we can devote the majority of the meeting to taking questions from producers and trying to provide as much information as we possibly can. 

 

Again, anybody is welcome to attend this meeting.  It is not a sales meeting, we only want to try and clear up any confusion or questions that growers may have.  We think that there will be a lot of valuable information for everybody to take home and hopefully help them make better decisions for their operations. 

 

Thanks,

 

Adam White

Carson & Barron Farms Inc.

Pioneer Sales Representative

C - 319-325-1421

O - 319-938-2897

F - 319-938-2619

adam.white@plantpioneer.com

 

2013 Bean Planting- Jackson County, IA

From Scott Hingtgen

3-5 Million

Hedge Specialist (@KevinVanTrump) tweeted at 7:28 AM on Mon, Jun 03, 2013: Talk in the trade that 3-5 million acres of #corn might not get planted.

Weekly Crop Report- NE Iowa

Kyle Mehmen (@mbsfamilyfarms) tweeted at 7:47 PM on Sun, Jun 02, 2013: Notice the tall grass in the background. Yard is still too wet to mow. That's my crop report for the week...