Commercial Bank Credit Analyst vs. Spring Recruiting

Friends,

I have a second round phone interview with a big brand commercial bank for a credit analyst/relationship management trainee. The location's great and work-life balance would be pretty sweet but that means pay isn't anything special to start. I hear there's lots of golf, dinners, and sporting events on the banks dime which is incredibly attractive.

My question: Is this an opportunity I should be happy about or should I hold out until spring recruiting?

Things to consider:
-Low GPA so I was passed for the consulting opportunities I was pursuing
-Considering an MBA eventually (does credit analyst place well?)
-Exit Ops
-Long-term career attractiveness for credit analyst/relationship manager (would I like doing this for the next decade?)
-Long-term goal would be PE or management consulting (pretty much post MBA at this point)

I'm pretty worried that credit analyst/RM in commercial banking is going to pigeon hole me with little transferable skills if I wanted to change industries. Would spring recruiting hold better prospects?

 

I don't know why so many of these questions pop up when they all get the same answer.

If you get the offer for the credit analyst position, take it.

When spring recruiting comes around you can go to it and hope for a better opportunity. If something better comes up, just tell the credit analyst firm that you've decided to move to a different state and won't be able to go through with the offer.

make it hard to spot the general by working like a soldier
 

I'll give you some info/perspective since I was in a similar position.

-My GPA was above a 3.0 but not spectacular, so was passed on for consulting and Ibanking -Like the commercial bank I got an offer from so stuck with it and did not bother with spring recruiting -Work/life balance is great, pay is mediocre -Pay increases significantly after completion of my rotation program -For my bank there is a lot of visibility and interaction with senior management -Exit opps are to F500, very credible private companies (specifically O&G in my region), and PE if you can network and perform -Plenty of people get MBA, though from my bank I cant say its the top 10 programs -Credit I personally feel has a lot of transferable skills. Maybe not as much to certain areas of ibanking. I do think it has relevancy in PE and obviously corporate finance. You will leave commercial banking with phenomenal business knowledge about a lot of areas.

 
Best Response

I don't understand this misconception of Commercial Banking and low pay.

Granted I'm at a FVP/Sr RM role, I'm only 31 and have a base of $160K with annual commissions around $50K. So all in, I'm around $210K which from my understanding, is close to an Associate in IB; however, I work 40-45 hours max. Live in a low COL area. So I'm basically crushing it. Live in a prestigious gates community in a 3,400 sqft house and play a ton of golf.

Granted the ceiling is lower. I'll max out $250-300K unless I hit EVP status. But honestly, I don't understand this theory of there being low pay in Commercial Banking.

I think it's people on here who have no idea what their talking about and are stuck on some elitist, chip on the shoulder bullshit who are afraid to realize I make way more money than they do on a per hour basis.

 

Obviously this thread is a little dated, but yeah, a Chief Credit Officer can easily do $200,000 in a middle market with 10 years of experience. Ridiculously easy hours, too. I mentioned this several months ago that commercial banking pays like absolute garbage in the opening years; therefore, there is a ton of turnover in the business. Those who choose a career in commercial banking and who stick it out can land into really well paid roles with really easy hours based on their seniority/the lack of qualified competition. It's kind of a hidden gem.

 

Yes this is what I have found as well. And 200k might even be conservative, even for middle market. It depends on what kind of deals you are doing as even in commercial banking we have different groups. I think if you are committed and want/can generate business, you are looking at a pretty lucrative career.

 

I think your number is off (although I am based in California) so if you are referncing Mid-West or South numbers maybe you are correct.

From our SEC Filing, here is our EVP/Chief Credit Officer's Comp Package for 2012:

Salary - $255,008 Bonus - $165,000 All other Comp - $259,559 (includes Qual/Non-Qual Retirement Contributions, Club Dues, Personal Car, Insurance Premiums) Total All-In Comp - $679,567

And once again to note, we are a small community Bank with $2B in Assets. Our CEO is at $2.3MM+ all-in comp wise.

Now granted these are EVP positions, but as someone said, there really isnt any competition where I am at. I'm in a area where most people don't really want to live at (most go to San Francisco area or Sacramento - but I'm born and raised here so I love it!) so that eliminates competition right there, and on top of that, most people never really turn the corner in C Banking (or just keep Bank hopping to get incremental raises and never make it into management).

I'm already at a FVP position and I have only been here 5 years. So long as I keep doing what I am doing, by default I will hit EVP level in 10-15 years. And having that comp package for working 50 hours a week in a low COL area sounds a lot better than making $2.0MM living in NYC and working 80 hours a week; although, everything has + / -.

I can't imagine what a EVP/CCO is making at a $10B or $20B Bank. And those Banks are still considered "small" or regional Banks.

 

I would think larger banks have more supporting personnel. I'm in the Washington, D.C. market and, as I understand it, the Chief Credit Officer is making about $200,000/year (he's 37) and works about 45 hours/week. At a smaller bank a Chief Credit Officer probably has to wear a lot more hats than a Chief Credit Officer at a larger bank, so I could see why he'd make more money.

 

Update: I was invited in for a final round after my phone interview. I had 4 different interviews mostly related to my experience and culture fit. I received an offer, accepted, and am really happy with my decision. I was able to speak with a friend of a friend who is currently in the credit training program I'll be joining next summer and he loves it. I think the industry is a good fit for me.

In case anyone is curious my bank has $22B in assets. Thanks to everyone for their input!

Listen, here's the thing. If you can't spot the sucker in the first half hour at the table, then you are the sucker.
 

Whatever, you guys can throw monkey shit at me all you want, but when a company is advertising for the job publicly at a certain wage rate then that is proof that there are plenty of Chief Credit Officer jobs for $200,000 or less.

 
Click OK to Continue:

What is the typical career path of a Chief Credit Officer? Do most start out as credit analysts and then work as lenders??

From what I have seen, yes..........although it may be different at Big Banks.

BB typically have Portfolio Managers who strictly handle Credit analysis, structure, monitoring, U/W, etc. They have no marketing/sales goals.

At smaller Bank, you can be a lender for years and get burnt out on the marketing....if you were respected for your U/W and analysis when you were a lender, many people transition over to Credit Administration.

PS - I would hate to be a Credit Administrator. Reading and looking at credit all day has to be boring. I like doing a little of that, but also going out and hunting down deals, client lunches/dinners, etc etc.

Plus, Credit Admininstrators get paid WAY less than the guys on the front line bringing in deals/relationships. And I am here to get PAID.

 

Just an FYI, EVP and Chief Credit Officer are not one in the same--many Chief Credit Officers are also on the Executive Committee because they have 25 years of combined banking experience, not because they oversee the credit department. Here is part of the bio of the EVP/CCO:

"Brian Fitzmaurice is executive vice president and chief credit officer of City National Bank, and oversees credit policy, administration and special assets. He also is a member of the bank's Executive Committee."

It goes on to say that he has over 25 years of experience at other places, which is why he's on the Executive Committee. You can be a Chief Credit Officer without being an EVP earning 7 figures and vice versa.

 

Just another data point. Small local bank with 700+ million in 2008 while I was in school. Chief Credit Officer (also EVP) in charge of Credit Manager, Assistant Credit Manager, two credit analysts. $160k base.

6 commercial lenders with about $55 million in production ( all conventional no SBA and nothing sold off) Very minor mortgage lending.

In the south

 
crusader:

Just another data point. Small local bank with 700+ million in 2008 while I was in school. Chief Credit Officer (also EVP) in charge of Credit Manager, Assistant Credit Manager, two credit analysts. $160k base.

6 commercial lenders with about $55 million in production ( all conventional no SBA and nothing sold off) Very minor mortgage lending.

In the south

That would make sense to me. Small Bank (

 

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