Social Media for Bank Investor Relations

Leveraging Media, Communications and

Technology: Social Media and IR

Dave Hogan, APR, CFPSNL Financial Bank Investor Relations Symposium

March 17, 2010 New York, NY

What is social media?

Social media tools for investor relations

Social media changes are revolutionary

“These changes (social media) are even bigger than those of 1928 (radio) and 1960 (TV).”

Merrie Spaeth, Spaeth Communications, Texas Banking Magazine, August 2008

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Social media, like banking, is all about community

and relationships Community: Social media all about being

connected with other people and building relationships

Conversation: Social media is about creating two-way dialogue with employees, customers, investors and other audiences.

Cost-effective: Social media expands the communication channels at nominal added cost.

Social media benefits banks

“Banks are increasingly realizing the need to implement a social media solution in order to differentiate themselves from the competition and to take an early stake in winning over the hearts and minds of the social network generation.”

Jesse Torres, “Community Banker’s Guide to Social Network Marketing,” December

2008

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Social media supports the role of investor relations

NIRI defines investor relations as “a strategic management responsibility that integrates finance, COMMUNICATION, marketing and securities law compliance to enable the most effective TWO-WAY COMMUNICATION between a company, the financial community and other constituents … ”

Source: National Investor Relations Institute

Why should bank IROs bother with social media?

Institutional investors, analysts are using social

media Average age of analysts, investors is younger

than ever Most analysts, investors fit into prime age

group for social media (18-55) Social media and mobile communications

benefit analysts, investors who are affluent, tech savvy and travel frequently

Investors monitor social media

Source: Brunswick Group survey, September 2009

Question: Do you read postings on the following for company or business information?

43%

29%

Blogs

Message boards

Conclusion: Institutional investors seek information from a variety of sources and a growing number are looking online.

Social networking sites13%

Social media’s growing influence

Source: Brunswick Group survey, September 2009

Question: Do you think that New Media such as blogs and social networking sites will play an increasingly important role in investment decisions in the future?

22%

41%

Yes, definitely

Yes, probably

Conclusion: The majority of institutional investors (63%) think social media will play an increasingly important role in investment decisions in the future.

Reg FD still applies Social media is not a substitute for

traditional forms of disclosure

Apply same policies and procedures to social media that you do to other disclosure channels

Social media’s risk level similar to IR phone calls, e-mails and one-on-one conversations

How to implement social media into your bank’s investor relations

program

Step one: monitor social media

Tools for monitoring social media

Step two: it’s all about Twitter

Twitter is most popular IR social media service

Twitter use for IR grew 175% last year (Q4 Web Systems)

Twitter easiest to set up and use

Twitter ideal for announcements such as earnings, conference calls, webcasts

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Step three: consider blogs and Facebook

Blogs and Facebook for IR

Blogs offer more depth of content than Twitter; no 140-character limit

Blogs are most time-consuming social media tool

Despite popularity, Facebook not widely used for IR

Leveraging online videoDell includes video of CFO discussing earnings results

each quarter on its IR blog and on YouTube

Step four: leverage your work with sharing sites

Sharing sites expand reach of existing IR informationUse social sharing sites to leverage existing disclosure items and expand your audience

Social media best practices for investor relations

Only disclose material information on social media that has already been disclosed through traditional channels.

Use Twitter and other social media to announce news releases, IR conference appearances, etc.

Monitor social media to watch for rumors, false information that could impact stock prices.

Leverage existing IR work with sharing sites.34

Social media action steps for bank IROs

Begin systematic monitoring now

Create a social media policy for employees

Open personal Twitter, Facebook accounts and get familiar with how they work

Start reading blogs

Social media action steps for bank IROs

Add sharing features to your IR Web site

Leverage existing presentations, videos

Start with Twitter for IR purposes

Consider a blog and/or Facebook only if sufficiently staffed and have tech savvy

For more information Dave Hogan

dhogan@ffin.com325-660-5249Twitter: @dahoganLinkedin: http://www.linkedin.com/in/dahogan76

Resources Q4 blog: http://www.q4blog.com/ IR Web Report: http://www.irwebreport.com/ NIRI social media resources:

http://www.niri.org/findinfo/Social-Media.aspx Mashable: http://mashable.com/ Brian Solis blog: http://www.briansolis.com/ IR Café blog: http://ircafe.com/

IR Musings blog: http://investorrelationsmusings.blogspot.com/