Love it or hate it debt cycles drive balance sheet management so what separates high performing from low performing banks? It’s all about the Net Interest Margin! The median community bank’s dependence on net interest income to drive total income is 89% and re-imagining your ALCO process to promote creative ideas from your team will lead to outperformance.
Interest rate risk is not isolated to the investment portfolio, even though this seems to be the only area of focus today. Our session will cover the impact of unrealized losses from investments on the balance sheet and its impact on your balance sheet positions. More importantly, we will uncover common alco practices that may reside in your bank today and share practices that create an engaging environment for your leadership team to strategize, set tactical and accountable goals, understanding the impact of these decisions on every component of your key risk positions. Are you getting paid enough for the risk you are taking?
This interactive session also contains questions, polling, and surveys, allowing participants to see how other attendees approach the balance sheet management process, decision-making, and how to use your tools to increase engagement, becoming a high performer over long periods of time.
Learning Objectives and Key Takeaways
- Why ALCO/Balance Management is important to overall profitability.
- Why investment portfolio management from a whole bank perspective is key.
- Peer analysis examining various balance sheet ratios and net interest margin dissection.
- Utilize peer comparison tools to identify opportunities to go from good to great.