Scott Hildenbrand on Balance Sheet Strategy, Bank Boards, and Market Volatility
Travillian’s Brian Love, Head of Banking and Fintech, and Andrew Liesch, Head of Bank Strategy, sit down with Scott Hildenbrand, Head of Piper Sandler Depository Fixed Income and Chief Balance Sheet Strategist, to discuss the forces shaping bank balance sheets and boardroom strategy in 2026.
Drawing on constant interaction with bank boards and executive teams across the country, Hildenbrand shares how institutions are navigating the disconnect between earnings and valuations, why execution often matters more than strategy, and how leadership teams should think about talent, liquidity, and regulatory change in a volatile environment. The conversation also explores where community banks may find opportunity in the years ahead and why clarity of strategy is becoming a defining factor for long-term success.
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00:32: Introduction: Setting the Stage with Scott Hildenbrand on Balance Sheet Strategy
Brian Love opens the discussion by welcoming Scott Hildenbrand back to Travillian Next alongside Andrew Liesch. Hildenbrand, known across the industry for his work advising banks on balance sheet strategy and capital markets decisions, joins the episode to share observations from the many boardrooms he regularly visits. The conversation is framed as an informal, but candid look at what bank leadership teams are discussing as 2026 unfolds, offering listeners a direct perspective from someone who works closely with financial institutions navigating rapidly changing market conditions.
04:11: Current Banking Trends and Boardroom Conversations on Valuation and Market Disconnects
Hildenbrand explains that many banks entered 2026 with expectations that have not played out as anticipated. Earnings across the industry remain strong by historical standards, yet bank stocks continue to trade at relatively modest multiples. This disconnect between performance and valuation has created frustration in many boardrooms. While some banks spend time trying to diagnose the market’s view of the industry, Hildenbrand argues that the more productive approach is focusing on actions that leadership teams can control. The strongest institutions spend less time debating macroeconomic explanations and more time identifying opportunities to strengthen their balance sheets and position themselves for future growth.
04:39: Execution Strategies for Financial Institutions Navigating Rate Volatility
A central theme of the conversation is the difference between planning and execution. Most banks understand the mechanics of interest rate risk and balance sheet management, but far fewer act quickly when market conditions create opportunities. Hildenbrand emphasizes that even relatively small movements in the yield curve can create meaningful strategic openings. The banks performing best today are those that have already established authority with their boards to execute thoughtful restructuring transactions when market signals appear. Preparation and scenario planning allow these institutions to move decisively, rather than waiting for perfect clarity before acting.
11:37: Why Board Education, Transparency, and Communication Matter in Bank Strategy
As balance sheet decisions grow more complex, the relationship between bank boards and management teams becomes increasingly important. Hildenbrand believes that the best-run institutions prioritize transparency and education in the boardroom. Too often, management teams avoid introducing complex strategies because they expect resistance from directors. However, avoiding these discussions can create a deeper disconnect between leadership and governance. When management takes the time to educate directors and openly discuss risks, boards are far more likely to support strategic execution. Clear communication and alignment around priorities ultimately become essential ingredients in effective bank leadership.
16:50: Talent Acquisition in Banking: How M&A Activity Reshapes the Leadership Pipeline
The discussion then turns to talent and the impact of consolidation across the banking sector. As mergers continue to reduce the total number of institutions, experienced executives often find themselves in transition following transactions. Hildenbrand believes this creates an underappreciated opportunity for community banks willing to recruit aggressively. Institutions that seek out leaders with experience in capital markets, restructuring, regulatory navigation, or public company operations can significantly strengthen their leadership teams. However, banks competing for this talent must clearly communicate their strategic vision and long-term direction if they want to stand out in a competitive hiring environment.
22:33: Niche Banking Strategies and Long-Term Growth Opportunities for Community Banks
Looking ahead, Hildenbrand suggests that banks must rethink how they define their competitive advantage. The traditional concept of a community bank rooted primarily in geography is evolving. Many of the highest-valued institutions today have built strong positions by focusing on specific industries or specialized client segments. These niche strategies allow banks to develop expertise, deepen relationships, and produce more consistent financial performance. For institutions evaluating their future direction, the critical question is not simply where they operate, but which communities or industries they are best positioned to serve.
24:19: The Evolving Banking Regulatory Environment and Its Impact on M&A and Liquidity
The regulatory landscape has also begun to shift in ways that many bank leaders view as constructive. Hildenbrand notes that merger approvals appear to be moving more efficiently than they have in recent years, allowing banks to pursue strategic acquisitions with greater confidence. At the same time, regulators continue to place strong emphasis on liquidity management and balance sheet resilience following recent industry disruptions. Institutions are increasingly expected to demonstrate that they can access liquidity through multiple channels, including the ability to sell both securities and loans if needed. This environment requires banks to be more proactive in stress testing their liquidity strategies and ensuring that contingency plans are realistic and executable.
30:07: Closing Reflections and Personal Insights from Scott Hildenbrand
As the conversation wraps up, the discussion briefly turns from banking to personal life. Despite the demanding travel schedule and constant public speaking that come with his role, Hildenbrand admits that he prefers a quieter routine outside of work. After days spent advising banks and analyzing markets, his ideal evening is relaxing and turning in early. The moment offers a lighter ending to a wide-ranging discussion and a reminder that even some of the industry’s most visible voices appreciate stepping away from the intensity of banking from time to time.
