Not Just a Lender

By Katrina Huffstutler

5 ways your bank may offer more than you think.

You know to call the bank when you need a loan. But you may not know about the additional services they offer that could help make your ranch run better. Texas and Southwestern Cattle Raisers Association (TSCRA) Director W. Clay Jones, who also serves as president of Commercial National Bank of Brady, says many of his customers are surprised to learn just how much a relationship with a good ag lender can help lighten their load.

For this month’s installment of “Ask a Banker,” he shares his top 5 ways your bank may offer more than you think.

Tools of the trade
Jones says that many of his customers — and probably customers of other agricultural lenders — don’t realize what tools are available just by stopping in to see their banker.

“We have cattlemen come in to the bank and we’ll sit down with them to look at the market reports, sales trends, CattleFax updates, or anything that may help them make better decisions about their operations,” he says. “We, and other financial institutions, have access to so many programs and so much information that could greatly benefit our customers.

A partner in TSCRA
Jones says his bank’s allied industry membership with TSCRA allows them to offer additional services to their customers.

If they need help with theft or investigations — anything an inspector or special ranger can provide — the bank is happy to facilitate that through its relationship with the association.

“That is a good conduit from our customer directly to us through the Cattle Raisers [TSCRA] because of our affiliation with the organization,” Jones says.

He says the membership is a big value for the bank, too, particularly if a customer’s livestock or equipment gets stolen while the bank still has a lien on it.

“TSCRA has been extremely effective at recovering stolen assets that we are relying on as collateral.”

Referrals
Sometimes, a bank customer needs something their lender can’t provide. That’s when Jones says it’s important to consider the bank as a resource for a trustworthy referral.

For example, they don’t have a licensed broker on staff at their location, but they do maintain a list of professionals to recommend.

Of course, Jones says, they must be careful when it comes to investing advice due to the liability. But they can lead their customers to trusted professionals with whom they have relationships.

“We have lists of people we recommend who offer a wide variety of different services,” Jones says. “It’s all about networking and putting our customers in touch with the right pros for the job. If I don’t have the answer, I’ll bet I can make a phone call and get the people who do know the answer.”

Another area in which they often give referrals is estate planning.

“Since so many of our customers are livestock producers and landowners, estate tax is a big thing on a lot of minds,” he says. “And you’d be amazed at how many folks who come in and say, ‘Hey, I’m reaching an age where I really need to look at the next step in estate planning. Where do I start?’”

Jones says they work with a pair of excellent attorneys who specialize in estate planning, but can also do their part at the bank to get customers prepared for that visit.

“I will generally sit down with them and we’ll talk about it a little before they go see the attorney,” Jones says. “I’ll ask, ‘What are you considering doing? Are you looking at forming a trust, or do you want to put a life insurance policy in place that gets it out of the estate? Are you looking at forming a family limited partnership?’ We go from A to Z on those things, which allows them to narrow it down before they go to that attorney.”

That consult not only makes the attorney visit easier, but less expensive to boot.

“Attorneys charge by the hour, so it sure helps if you can be well prepared before you arrive to visit with them,” Jones says.

Transaction advice
It’s all over the news: the importance of keeping your information and that of your customers private and secure. Jones says it’s a hot topic among his customers, too.

Cattlemen will ask, “What’s the best way to get my money? What information should I give out, or not give out? Is it safe to send or receive a wire transfer?” The banker says he’s doing more of this type of advising than ever before, and it’s something most banks are happy to help with.

“We want to do all we can to protect our customers, not only for their sake but our own,” Jones says. “So, I would encourage producers with these sorts of questions to go to their lending institution.”

Knowing the customer
He says while smaller community banks like his may not be able to offer services that are identical to their big city counterparts, they can often offer something those big banks can’t. They can know you, and your cattle operation, better. As a result, they may be able to help you more.

“I always tell my customers, I know we may come across as the kind of bank that is always asking for more information,” Jones says. “It reminds me of this speaker we had a Cattle Raisers meeting one time who said, ‘Raise your hand if your banker is constantly asking you for information.’ Of course, most of the room raised their hands. The speaker continued, ‘For those whose bankers never ask any questions, my recommendation is that you find a new banker.’”

He says while it may feel intrusive at times, he explains to his customers they are gathering this information to serve them better.

“If I don’t have all the information, then I don’t know about my customer’s business,” he says. “And if I don’t know about my customer’s business, how can I help him? But if I have all the information and understand my customer’s needs and how his business runs, I can be a great partner to him.” ❚

“Not Just a Lender” is excerpted from the November 2017 issue of The Cattleman magazine.