Community Bank CEOs: How to Lead When You’re No Longer in Charge
The announcement went out yesterday.
Your board approved the sale.
The press release hit the wire.
Employees got the news.
And just like that, everything changed.
You're still the CEO.
Your title hasn't changed.
Your office is still yours.
But something shifted overnight, and everyone can feel it.
Welcome to the strangest chapter of your banking career.
The Shift Happens Immediately
You'll notice it in small ways at first.
Employees stop coming to you with certain decisions.
They're already looking to the future, to their new leaders.
Customers start asking when things will change, not if.
Your management team knows details about the future before you do.
It feels strange because you were always the one defining the future.
Now you're just managing the present.
This shift is normal.
It's expected.
But the speed of it can catch you off guard.
In everyone's mind, the merger already happened.
Yes, the deal hasn't officially closed.
Yes, there are still things that could derail it.
Regulatory approval could fall through.
Something unexpected could surface.
But in the hearts and minds of your employees and customers?
It's done.
You're in a Tricky Position
Here's what makes this period so challenging:
You might not know your own future yet.
The Letter of Intent might have mentioned your role going forward.
Or it might not have.
Maybe it said you'd stay involved but didn't specify how or for how long.
You have a Stay-Put agreement.
That's good.
But the buyer can decide to pay you out early.
That's their right.
They paid for that option.
Meanwhile, you still have fiduciary duties.
You're still responsible for this organization until your shareholders get their money.
You can't just check out and coast to the finish line.
But you also can't act like you're still calling all the shots.
The Distance You Need to Keep
Remember the tone from your announcement?
Respectful.
Positive.
Collaborative.
Forward-thinking.
You need to maintain that tone now, but with one addition: distance.
Not cold distance. Strategic distance.
You need enough separation that if this deal somehow falls apart, you can step back into full leadership mode. Your board and shareholders need to know you're still protecting their interests.
This might look like you're being aloof to the buyer. They might think you don't care about the new organization or that you're disengaged.
That's not what's happening. You're being a fiduciary. You're doing your job.
The buyer might not understand this, especially if they've never been through an acquisition before. That's okay. Your attorney and investment banker can help explain if needed.
Your Team Is Moving Forward Without You
This is the hardest part.
Your management team is meeting with their future leaders. They're learning about new systems, new processes, new priorities. They're leaning into the future in their words and actions.
This is exactly what they should be doing.
But it means they'll sometimes know more about what's coming than you do.
They'll be talking about "we" when referring to the combined organization.
They'll be excited about opportunities you're not part of.
It's going to feel weird.
You've always been the one setting the direction.
Now you're watching from the sidelines while someone else paints the picture.
Your Employees Need Answers You Can't Give
Here's the reality:
Your team needs to know what the future holds.
Not just for themselves, but for your customers too.
Customers are asking questions.
Lots of questions.
Your employees are on the front lines handling those questions every single day.
They need a clear picture of the future so they can communicate it positively to customers.
If the picture is confusing, you'll lose employees.
You'll lose customers.
The buyer is the only one who can paint that picture.
It's their vision now, not yours.
They need to communicate it clearly and often.
If they don't?
If the communication is slow or confusing?
The only thing you can do is encourage your team to stay positive.
Remind them these things take time.
Advocate for them where you can.
But you can't fill in the gaps yourself.
You don't have those answers anymore.
What to Tell Your Team
Employees will reflexively look to you for answers.
That's natural.
You've been their leader for years.
Be honest with them:
"There are some answers I can't give you right now. I'm hopeful you'll get those answers soon. Our job is to keep things running smoothly and take care of our customers. If we do that, we all win."
Ask them for faith and patience.
Remind them that the answers are coming, just not from you.
It requires humility.
It requires patience.
It requires diplomacy.
Don't Disengage
This period could last weeks or months.
It's easy to check out mentally during this time.
You'll feel a sense of loss.
That's natural.
Your role is changing.
Your identity as the leader of this organization is shifting.
But this is when being a professional matters most.
Leaders lead.
Even when they're no longer really in charge.
Even when it's uncomfortable.
Even when it's emotionally difficult.
Keep your eye on the ball.
Support your team.
See this through to the closing.
Your people are watching how you handle this.
Show them what grace under pressure looks like.
Think About This Early
The best time to prepare for this emotional shift is years before it happens.
The longer you spend preparing for your exit, the less painful it will be when the time comes.
Start thinking about life after banking.
What interests you?
What do you care about?
What would make you happy?
Get clear on your number.
How much money would you be satisfied walking away with?
What's your timeframe?
Begin viewing your bank with healthy detachment.
Be objective.
What needs to be built or improved to maximize value?
What would make your exit smooth?
Make a list.
Prioritize it.
Work on the highest-impact items first.
Break big projects into manageable pieces.
The more prepared you are mentally and strategically, the easier this transition will be.
The Bottom Line
The period between announcement and closing is awkward. You're still the CEO, but you're not really in charge anymore. Your team is moving toward a future you're not part of. Employees look to you for answers you don't have.
It's uncomfortable. It's emotionally challenging. But it's also temporary.
Stay professional. Maintain your fiduciary duties. Support your team. Keep customers taken care of. And remember that leaders lead, even in the strange in-between times.
P.S. I'm not a lawyer, an accountant, or an investment banker. Just a former bank CEO who has been in your shoes.
There are zero hacks or tricks in this newsletter. Just proven tactics that help you choose the right path for your bank.
Your path will:
- Inform your strategic plan.
- Guide your annual business plan and budget.
- Clarify priorities.
- Define your message so it can be communicated with confidence.
This is how savvy bankers navigate.
They build smart and valuable banks and choose the best time to sell on a timeline of their own choosing – serving the needs of the shareholders and the board.
I hope you found this short lesson helpful.
What are your thoughts?
I’ll see you next week.
If you would like access to all prior newsletters - click here.
Not a subscriber? The newsletter is free - click here to become one now!
