Investors underwrite a bank the way a banker underwrites a borrower.
I'm Eric Henderson, a commercial real estate credit officer and a student of how banks earn the market's trust. I write here about investor relations: what analysts ask, what moves a bank's stock on earnings day, and how to tell a bank's story with numbers that hold up.
Perspectives
All essays- Investors underwrite management7 min readTwelve years of credit work taught me the five Cs. They turn out to be a good checklist for investor relations too.
- The release sets the open. The call sets the close.6 min readHow I'd run an earnings day, and how I'd score it afterward.
- Most of the Q&A is predictable6 min readI logged 2,225 analyst questions from 119 regional bank earnings calls. Most of what gets asked can be seen coming, and that changes how a bank should prepare.
How I think about investor relations
Answer it before they ask
Most analyst questions can be seen coming. The release, the slides and the standing disclosure should answer them first.
Give them a number to hold you to
Dated targets and progress trackers turn a quarter into a chapter of a story the Street can follow.
Score yourself honestly
After every call: what we predicted, what was asked, how the stock moved against peers, and what we missed.