By Christian Wyatt Group
Leadership succession has always been a critical topic for banks, but for institutions under $10 billion in assets, it’s quickly becoming a quiet crisis.
With a wave of retirements looming and limited internal pipelines, many community and regional banks find themselves unprepared to replace key executives — especially CEOs, CFOs, and Chief Credit Officers. For banks without a clear plan in place, the risks are mounting.
The Data is Clear
More than 30% of community bank CEOs are expected to retire in the next five years. Meanwhile, many banks face:
- Thin internal benches for executive leadership
- Difficulty attracting external talent to secondary or rural markets
- Increased regulatory and investor pressure for continuity planning
Without proper succession planning, banks face disruption to strategy, culture, and community relationships.
Why Banks Delay Succession Planning
Some common reasons:
- Overconfidence in internal candidates (without a formal development plan)
- Cultural discomfort discussing retirement or leadership change
- Unclear ownership of the process (Board vs. CEO vs. HR)
- Lack of awareness of how quickly top talent gets scooped up in a competitive market
But delaying planning only increases the risk of rushed decisions or prolonged vacancies at critical moments.
What a Proactive Succession Strategy Looks Like
High-performing banks under $10B are taking action now by:
- Assessing executive bench strength across departments
- Engaging Boards early on CEO transition readiness
- Mapping internal potential successors and providing coaching
- Maintaining a short list of vetted external candidates
- Partnering with search firms to plan ahead for hard-to-fill roles (especially risk, finance, and lending)
Succession planning is not just about replacing leaders — it’s about protecting institutional knowledge, preserving stakeholder trust, and sustaining long-term strategy.
What Happens Without a Plan?
- Boards are forced to settle for candidates they wouldn’t otherwise hire
- Interim arrangements stretch teams and stall momentum
- Regulatory delays and operational missteps can occur
- Culture and morale take a hit — especially when staff feel left in the dark
Avoiding the conversation doesn’t avoid the risk. It amplifies it.
How We Help
At Christian Wyatt Group, we partner with bank Boards and CEOs to make succession planning practical and proactive. Whether it’s a formal CEO search or early-stage conversations around leadership depth, we bring:
- Deep experience recruiting bank executives across finance, credit, lending, risk, and compliance
- Insight into market readiness, compensation, and relocation trends
- Tools to evaluate internal vs. external talent pipelines
Recent example: We helped a $1.2B Florida bank execute a smooth Chief Credit Officer succession plan that resulted in the successful onboarding of a seasoned credit veteran without disruption.