Agenda
Asset Liability Management Forum
May 16, 2019
Marriott Newport Beach Hotel
AGENDA
7:30 a.m. Registration and Breakfast
8:30 a.m. Opening Remarks/What’s on Your Mind?
John Lingvall, CCBN
Before we leap into our agenda, we’d like to hear what specific questions you’d like to have addressed today, either in the course of the scheduled presentations or even right now!
9:00 a.m. California Economic Outlook
John McGee, FDIC
An update on the current state of the California economy and future trends.
9:50 a.m. The Strategic Process
Rick Redmond, Vining Sparks
Potential loan, investment, funding and capital strategies should always be evaluated within the context of your existing balance sheet. We’ll look at some best practices for developing and selecting among multiple, alternative strategies designed to improve earnings, manage risk and improve balance sheet efficiency.
.
10:15 a.m. Networking Break
10:30 a.m. Regulatory Perspective – Emerging Risks including Interest Rate & Liquidity Trends
Robert McGibbon, FDIC
A discussion of examiners concerns with ALM and liquidity as rates rise, what they are seeing and what bankers need to pay attention to now.
11:30 a.m. Deposits in the Current Environment
Steve Cibull, FHLB
Today, bankers face a situation that they have not seen for more than 10 years: rising interest rates. What impact has it had on deposit betas, product mix, retail competition, and marginal cost of funds? It is important for bank management to re-examine and fully understand the sensitivity of deposit assumptions embedded in asset liability models and the potential impact to earnings and liquidity.
12:00 p.m. Luncheon
1:00 p.m. Round Table Discussion
Rick, Steve & Robert facilitate
Based on what you heard this morning answer the following questions at your table. Select a recorder to capture your answers and reporter to share with the group.
1:45 p.m. Funding & Hedging Strategies, Tools & Resources
Rick & Steve with commentary from Robert
During the latest economic cycle, community banks have dealt with market dynamics not encountered in nearly a decade. With loan growth outpacing deposit growth, funding costs on the rise, deposit betas increasing and an essentially flat yield curve, bankers need to consider innovative new ways to maintain liquidity and earnings momentum. Rick and Steve will discuss strategies that you can use to improve performance and manage interest rate/liquidity risk.
2:15 p.m. Networking Break
2:30 p.m. Funding & Hedging Strategies, Tools & Resources (continued)
Rick & Steve with commentary from Robert
One of the enduring challenges of banking is that bank and customer preferences are rarely aligned. In a rising rate environment, banks prefer floating rate assets and fixed rate liabilities while customers prefer just the opposite. That creates a dilemma when trying to offer products that resonate with customers That’s where interest rate derivatives come in to play. They are designed to solve the age-old dilemma of providing products that are relevant to your customers while also meeting your needs. Rick and Steve will discuss specific strategies available to community banks.
3:15 p.m. Wrap Up/ Final Q&A
3:30 p.m. Forum Adjourns
May 16, 2019
Marriott Newport Beach Hotel
AGENDA
7:30 a.m. Registration and Breakfast
8:30 a.m. Opening Remarks/What’s on Your Mind?
John Lingvall, CCBN
Before we leap into our agenda, we’d like to hear what specific questions you’d like to have addressed today, either in the course of the scheduled presentations or even right now!
9:00 a.m. California Economic Outlook
John McGee, FDIC
An update on the current state of the California economy and future trends.
9:50 a.m. The Strategic Process
Rick Redmond, Vining Sparks
Potential loan, investment, funding and capital strategies should always be evaluated within the context of your existing balance sheet. We’ll look at some best practices for developing and selecting among multiple, alternative strategies designed to improve earnings, manage risk and improve balance sheet efficiency.
.
10:15 a.m. Networking Break
10:30 a.m. Regulatory Perspective – Emerging Risks including Interest Rate & Liquidity Trends
Robert McGibbon, FDIC
A discussion of examiners concerns with ALM and liquidity as rates rise, what they are seeing and what bankers need to pay attention to now.
- Emerging Risks – Current state of the industry
- IRR – trends, examination focus
- Liquidity – trends, examination focus
11:30 a.m. Deposits in the Current Environment
Steve Cibull, FHLB
Today, bankers face a situation that they have not seen for more than 10 years: rising interest rates. What impact has it had on deposit betas, product mix, retail competition, and marginal cost of funds? It is important for bank management to re-examine and fully understand the sensitivity of deposit assumptions embedded in asset liability models and the potential impact to earnings and liquidity.
12:00 p.m. Luncheon
1:00 p.m. Round Table Discussion
Rick, Steve & Robert facilitate
Based on what you heard this morning answer the following questions at your table. Select a recorder to capture your answers and reporter to share with the group.
- What are the top three ALM issues your banks are facing right now?
- What are the greatest obstacles you have in addressing these issues?
- What best practices in ALM can you share with the group?
1:45 p.m. Funding & Hedging Strategies, Tools & Resources
Rick & Steve with commentary from Robert
During the latest economic cycle, community banks have dealt with market dynamics not encountered in nearly a decade. With loan growth outpacing deposit growth, funding costs on the rise, deposit betas increasing and an essentially flat yield curve, bankers need to consider innovative new ways to maintain liquidity and earnings momentum. Rick and Steve will discuss strategies that you can use to improve performance and manage interest rate/liquidity risk.
- Current balance sheet trends
- Using FHLB products to compliment local market funding
- Using collateral efficiently
- Using unsecured funding products
- Managing the wholesale funding book
2:15 p.m. Networking Break
2:30 p.m. Funding & Hedging Strategies, Tools & Resources (continued)
Rick & Steve with commentary from Robert
One of the enduring challenges of banking is that bank and customer preferences are rarely aligned. In a rising rate environment, banks prefer floating rate assets and fixed rate liabilities while customers prefer just the opposite. That creates a dilemma when trying to offer products that resonate with customers That’s where interest rate derivatives come in to play. They are designed to solve the age-old dilemma of providing products that are relevant to your customers while also meeting your needs. Rick and Steve will discuss specific strategies available to community banks.
- Loan hedging
- Do-it-yourself floaters
- Funding hedges
- Macro strategies allowed by new hedge accounting rules
3:15 p.m. Wrap Up/ Final Q&A
3:30 p.m. Forum Adjourns