RE #59: James Hill - The Borrower/Lender Relationship 101
James Hill is the Chief Strategy Officer / Fort Worth Market President at Access Bank. He has 12+ years of expert banking experience, specializing in commercial and real estate lending. Born and raised in Fort Worth, Texas, James is a graduate of the Business Honors Program at the University of Texas at Austin as well as TCU, receiving his MBA in the Accelerated Program. He is currently adjunct faculty in the finance department of the business school at TCU and was elected to the Tarrant Regional Water District Board in May 2017. On this episode of The FORT, James and Chris dive deep into the world of banking, lending, and the importance of having a great relationship with your banker. Chris also touches on how the pandemic brought him to James for an in-depth "Banking 101" class in order to be as informed as possible when navigating the future. They also answer some questions from Twitter! Enjoy. For more information on Chris Powers & Fort Capital, visit www.FortCapitalLP.com Follow Chris on Twitter 02:26 — James’ Background 03:53 — Not Being the “Prototypical” Banker 05:40 — Relationships Are Important During COVID 07:13 — How do you view your relationship with borrowers and how should borrowers think about their relationships with their bank? 10:25 — How do banks set their reserve methodology? 12:30 — If a loan is going into default, are the banks the first to lose out but also make interest? 13:11 — How does the bank approach a potentially bad situation? 15:59 - What happens when you have a good relationship with a bank but you're about to be in a default situation? 21:02 — If a bank has a lot of bad loans on its balance sheet, does that affect its ability to borrow from the Federal Government? 21:44 — If you have personal recourse on a loan, and the delta was not met, how do they figure out how it's paid out over time? 23:55 — How do non-recourse loans work? 28:28 — Should I move everything over to one bank or should I use multiple banks? 29:33 — When were you notified about the idea of PPP, what did the process of implementing it into your daily life look like as a banker? 32:36 — Question from Twitter for James: “To what extent does the reputation of the borrower matter? 34:37 — What are the 'C’s' in your credit program? 35:14 — What might change in banking coming out of the crisis? 36:57 — What does it mean for a bank to be more well-capitalized now vs. during the ’08 crash? 38:24 — Foreclosure Protocols Across Different States 40:34 — Pinpointing Value In This Climate 42:05 — If I have a loan maturing in the next 4-5 months, how does one evaluate whether to extend their loan? 48:21 — Given the current environment, when are banks suggesting is a good time to buy again? 50:55 — How do you start a bank and how much liquidity do you need to get one up and running? 53:07 — Where is the banking industry headed over the next decade? The FORT with Chris Powers is produced by Straight Up Podcasts