The Bottom Line - Banking on Capital Management
Banking On Capital Management
Corporate depository accounts and investments: finding the right balance for your business
Corporate depository accounts—your everyday operating accounts for working capital—provide easy access and a safe place to store funds you’re likely to need in the near term. For most businesses, those treasury accounts are the best places to store the funds you would need to cover business expenses over the course of 18 to 24 months. The primary advantages of these accounts are liquidity, security, and financial flexibility.
Regarding liquidity, having quick access to cash is essential to cover payroll, operational costs, and unexpected expenses. Corporate depository accounts allow immediate withdrawals, ensuring you can meet your obligations without delays.
Corporate depository accounts are also low-risk. FDIC insurance or equivalent protections can be desirable for businesses with a low-risk tolerance. Returns on these accounts are gained from predictable interest income, ensuring preservation, controlled growth, and availability when you need it.
Large corporate depository accounts also enable financial resilience. If you face potential fluctuations in revenue—common in industries with seasonal demand cycles or economic sensitivity—keeping healthy cash reserves accessible can stabilize operations and safeguard against cash flow disruptions.
But what about excess corporate funds resulting from a real estate sale, business sale, and other windfall events?
Our Capital Markets team works with businesses across various industries, providing tailored financial solutions that enable companies to allocate excess funds wisely. We help business clients tap into various fixed-income strategies to provide returns while maintaining the necessary liquidity.
With options like laddered investments and bond funds, we can put large sums of excess cash to work with speed and efficiency.
And we believe one of the core advantages of our approach is simplicity. At Country Club Bank, that means offering you a one-stop shop for all your financial needs—from deposit accounts and loans to custom investment vehicles and custodial services—under one roof. When your company’s assets are held with us, your funds are managed with care, accountability, and accessibility, eliminating the need to rely on multiple providers.
Whether it’s enhancing liquidity for operational use or growing reserves for long-term planning, our Capital Markets Group can partner with you to provide guidance that aligns with your business goals. If you’re considering ways to make your excess funds work harder, let’s discuss an intelligent, flexible investment strategy designed specifically for your business.
Thank you for trusting us to help you with your banking and investment needs. We look forward to being of service as those needs arise.
— Scott Carrithers, Managing Director, Capital Markets Group, Country Club Bank
Capital Markets Group Product and Services are Not Insured by the FDIC or any other federal government agency, Are Not deposits of, or guaranteed by, the bank or any bank affiliate, May lose value.
Economic Insights
Solid growth, positive earnings, and tamed inflation continue to signal resilience and momentum
In the last month, the economic indicators have painted a fairly balanced picture of the U.S. economy, suggesting overall resilience with hints of potential caution.
Unemployment is still very low at 4.1%, and has bounced around which may reflect some loosening in the labor market but it isn’t yet a cause for concern. The latest JOLTS data (Job Openings and Labor Turnover Survey) also points to a slight reduction in job openings, which could mean that while hiring demand remains healthy, companies are becoming more cautious about adding new roles.
Inflation appears to be moderating, with headline inflation at 2.4% and core inflation—excluding food and energy—at 3.3%. While core inflation is still above the Federal Reserve’s target, the downtrend is good for households and businesses. Strong consumer spending also supports the idea that people still feel confident in their financial situations, suggesting they haven’t been significantly discouraged by inflation pressures.
Corporate earnings season has kicked off, with initial reports from big banks coming in strong. Banks with investment banking divisions have seen a boost in deal-making activity as mergers and acquisitions have picked up.
Blackstone (the $1.1T alternative asset manager), in particular, has had an impressive quarter, investing $54 billion in the quarter, the most in two years, as buyers and sellers find common ground on pricing again. It’s a sign that some stability is returning to asset values.
Debt levels among consumers also remain reasonable, which is encouraging, as households and businesses aren’t overly leveraged. This fiscal responsibility, combined with an expected 3.3% GDP growth rate in the third quarter (according to the Atlanta FED GDPNow forecast), suggests the economy is on solid footing.
Growth at this level indicates a strong economy. Still, some are concerned that the market may be ahead of itself, as valuations seem elevated compared to historical norms.
Bottom Line: In terms of overall economic equilibrium, we seem to be in a balanced state where growth, inflation, and employment are in relatively stable positions. However, with a few indicators flashing caution, there’s a sentiment that the market might be slightly over-optimistic. Investors and businesses will likely watch closely for signs of cooling growth or tightening credit conditions, as these could affect the current equilibrium.
Overall, the economy seems steady with solid growth and moderate inflation, but there’s also a sense that we’re approaching a critical balance point, with further developments in employment, inflation, and consumer spending likely to set the direction for the coming months.
— Marcus Scott, CFA, CFP®, Chief Investment Officer (CIO) for Country Club Trust Company
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.
The opinions and views expressed herein are those of the author and do not necessarily reflect those of Country Club Trust Company, a division of Country Club Bank, or any affiliate thereof. Information provided is for illustrative and discussion purposes only; should not be considered a recommendation; and is subject to change. Some information provided above may be obtained from outside sources believed to be reliable, but no representation is made as to its accuracy or completeness. Please note that investments involve risk, and that past performance does not guarantee future results.
Client Success Story
How Bungii leverages its last-mile expertise – and treasury services from Country Club Bank – to fuel national growth
A vision for revolutionizing big and bulky delivery has quickly turned Kansas City-based Bungii into one of the most promising and profitable sharing economy companies in the dynamic world of last-mile logistics.
Launched with the simple idea of making the final mile faster, more intelligent, and more cost-effective, Bungii connects retailers, distributors, logistics companies, and even homeowners with nearby pickup trucks and reliable drivers, offering a hassle-free solution for delivering bulky goods.
Spearheading growth and process optimization is Bungii CFO Kerri Thurston. Thurston joined the company in 2022 after serving as a finance leader at other high-profile local companies, including C2FO, Garmin, and Interstate Brands.
Her journey with Bungii began as a mentor during its early days to her integral leadership role today. “I saw the company’s potential to move from local to enterprise-focused,” Thurston said, “and I knew I wanted to help build that out.”
Today, Bungii serves over 80 metro areas in the U.S., with plans to expand to larger asset classes like box trucks, adding further versatility to its delivery offerings. Through its unique B2B-focused model, Bungii partners with leading retailers and logistics companies, relying on technology to ensure a seamless, secure delivery experience.
Its AI-driven verification processes and data insights offer customers peace of mind, with robust tools like photo verification and facial recognition safeguarding service and reliability. “It’s about creating a best-in-class experience for our partners,” Thurston notes. “We want to be the last-mile standard for quality and innovation.”
To help manage and administer its rapid expansion, Bungii strategically selected Country Club Bank as its provider for all treasury services, including core operating accounts for payroll, taxes, payables, and receivables.
After assessing other local, regional, and national banking options, Thurston said she was drawn to the relationship-first approach at Country Club Bank. The switch to CCB’s treasury management suite and corporate credit card program also streamlined Bungii’s financial processes, easing the day-to-day.
“From the start, their treasury team made it incredibly easy for us to decide and make the switch,” said Thurston. “They coordinated the paperwork, orchestrated the account transfers, and were with us every step of the way to ensure accuracy and effortlessness.”
Thurston said she values the accessibility and local presence Country Club Bank provides.
“Since we pride ourselves on agility and readiness, having a banking partner that’s just a text, phone call, or short drive away adds an extra layer of convenience and trust that we value and appreciate,” said Thurston.
Thurston said Country Club Bank’s commitment to personalized, efficient service also aligns with Bungii’s operational needs and ethos: having an expert team that never quits or leaves anything to chance.
“Whether it’s account transitions or handling customer requests, Country Club Bank understands the importance of responsive and relationship-driven banking,” said Thurston. “They ensure we have what we need and are set up to succeed.”
Want to learn more about Bungii and how co-founders Ben Jackson and Harrison Profitt came up with the idea that led to this remarkable growth story? Listen to the full Banking on KC podcast here.
Associate Spotlight
Treasury tips from a pro: A conversation with Kevin Miller, VP & Treasury Sales Officer at Country Club Bank
We recently sat down with Kevin Miller, a Treasury expert at Country Club Bank, to learn more about his journey in finance, his approach to working with clients, and his insights into effective cash management. With a career that spans over two decades in corporate banking and treasury roles, Kevin brings a unique perspective to the financial challenges businesses face today. Here’s what he had to say.
Tell us about your background and role at Country Club Bank.
I joined Country Club Bank in 2020, and my role is mainly working with our commercial lenders to support businesses with their treasury needs. My job involves setting up operations that streamline cash flow—getting money into and out of businesses efficiently, earning interest on idle funds, and optimizing liquidity.
Before Country Club Bank, I worked in treasury departments for large corporations like Sprint, H&R Block, and Kansas City Power & Light. Those experiences gave me a strong foundation in managing cash flow and helped me understand the daily realities that businesses face in cash management.
What do you find rewarding about this work?
I enjoy the impact treasury can have on a business’s day-to-day operations. Treasury is at the core of cash management, so you’re helping companies to ensure liquidity while minimizing costs. I also love the variety—every day is different, and you have to stay on your toes to deal with evolving challenges, especially when it comes to fraud prevention and cash forecasting.
You mentioned fraud prevention as a critical focus area. Could you elaborate on that?
Fraud has increased significantly over the past five years and is one of the biggest challenges we deal with today. For example, Business Email Compromise (BEC) has become a severe threat, where fraudsters impersonate vendors or executives to trick businesses into sending large payments to the wrong accounts.
We work with clients to implement fraud prevention measures like Positive Pay, which verifies checks and payments before they’re processed, and dual authorization, which adds an extra layer of security. However, clients need to be vigilant about verifying payment instructions, especially when they receive unexpected requests via email.
What are some practical treasury tips you would give business owners?
First, pay close attention to your cash position daily. You don’t have to reconcile every transaction, but keeping an eye on your balance can help you catch any unusual activity early.
Second, cash sweep accounts or investment tools should be utilized to ensure excess idle funds are secured and put to good use.
Lastly, ensure you have solid checks and balances, particularly regarding who has access to funds and the transaction approval process. Regular reviews and reconciliation can prevent both errors and fraud.
Do you have any final thoughts or advice for businesses on improving their treasury functions?
Don’t overlook the importance of optimizing cash flow and protecting assets. Treasury management is more than just processing transactions; it’s about strategically managing funds to support growth. Whether implementing fraud prevention tools, streamlining payment processes, or enhancing liquidity management, a good treasury strategy can make a big difference.
We’re here to help businesses navigate these complexities, and I always encourage clients to reach out whenever they’re going through changes or want to review their treasury operations. A proactive approach to treasury can save a business time and money while reducing risks in the long term.
— Kevin Miller, VP Treasury Management Sales for Country Club Bank
Banking on Productivity
KCBJ guest column: Maximizing your business's efficiency with advanced treasury services
In a recent Kansas City Business Journal article, Brian Hoban, Chief Lending Officer of Country Club Bank, highlights the value of well-designed treasury services and how they can enhance financial processes so businesses can focus more on growth and less on the intricacies of financial management.
Hoban writes that a good treasury solution is the right mix of talent and technology. When selecting treasury services, businesses should consider their specific needs and consult with banking experts who can provide tailored advice.
Learn how partnering with Country Club Bank enables recommendations that provide the most effective treasury service solutions and align with your operational and growth objectives. Read the full article here and discover how advanced treasury services can help your company.
— Brian Hoban, Chief Lending Officer of Country Club Bank