We sat down with Lance Caldwell, senior vice president and sales director of UMB Bank, Capital Markets Division, to learn more about his career and experience at UMB.

How did you get started in the finance industry?

My interest in finance first began when I was in high school. I volunteered to serve as the finance officer for a Junior Achievement company. Our class sponsor was a local community banker that had our team visit his office for a strategic planning session. With this banker’s encouragement and support, our company received special recognition for the annual report we put together, which sparked a passion for finance.

What’s your background with community banks?

I started my career in bank supervision with the Office of the Comptroller of the Currency (OCC) and received my examiner commission from the Federal Reserve Bank of St. Louis. I stayed in the regulatory world through roles with the Federal Reserve Bank of Kansas City and the Federal Home Loan Bank of Topeka.

I had a long-held dream to own a consulting practice helping community banks, and upon the retirement of a founder of the former Hybarger & Associates, I purchased the group. Then, in 2023, UMB acquired it, providing us with access to a larger brand and its network.

How is the experience of integrating you and your team into UMB?

We have been working to further build UMB’s asset liability management and performance consulting practice. Our expanded team now brings together our collective experiences to provide reports and methodologies that support community banks across all facets of the balance sheet. This includes advanced reporting and analytics to support strategic decision-making and operational efficiency for community banks. We’re excited about what’s next for this team and our clients.

What challenges are community bankers currently facing?

Community bankers are dealing with a volatile and unpredictable environment, including margin pressures, rising costs and asset quality concerns. The recent economic calm may be misleading, with potential issues in asset quality and credit looming on the horizon.

As they approach strategies for combating these challenges, community banks should consider several services, like risk reporting and regulatory consulting. This work includes interest rate risk management, compliance and risk management support, planning and management, and contingency funding and liquidity risk. These models and approaches can help position community banks for multiple future scenarios and help them prepare.

Additionally, fixed-income investment portfolio and liquidity management, as well as annual budgeting and monthly forecasting are invaluable practices for long-term stability.

How have strategies changed for community banks?

Historically, community banks relied on rear-facing or static metrics. Now, like larger banks, community banks are adopting more dynamic and forward-facing analytics to better measure and monitor risks. This shift is driven by regulatory expectations and the need for a more sophisticated risk management approach.

Additionally, liquidity remains a significant concern in today’s market, especially in light of 2023’s bank failures and increased regulatory scrutiny. Community banks are now focusing on more frequent stress testing and evaluating contingent liquidity scenarios to manage liquidity risk more effectively.

Any guidance for those looking to join this line of work?

I feel like I fell into community banking by accident but was able to learn what I enjoyed the most by having a variety of experiences and roles. I would encourage folks to seek out opportunities that will stretch their knowledge and experience by exploring all the different facets of banking until they find that spot were their work and passion collide.

What do you like to do outside of work?

I spend as much time as possible outdoors. Most recently, I’ve been working on developing our small farm in Spring Hill, Kansas building a couple homes for our family as well as a barn. We are looking forward to having our first grandchild living next door and enjoying our barnyard animals, helping us plant our fruit and vegetables and riding around with me on my tractor.

UMB’s commitment to community banks

UMB is dedicated to supporting the community banking model, helping banks navigate consolidation challenges, and achieve efficiency and growth. We are a comprehensive partner, focusing on both asset and liability management to meet banks’ goals and support their shareholders.

When you begin your UMB consultation, we first gather your bank’s financial information, as simply and efficiently as possible. Then we feed data into our technology and workflow, leading to tailored reports and strategic discussions to support the bank’s objectives.

Learn how UMB Bank Capital Markets Division’s fixed income sales and trading solutions can support your bank or organization, or contact us to be connected with a team member.

Products, Services and Securities offered through UMB Bank, n.a. Capital Markets Division are: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED