Seemingly endless rounds of government stimulus have left community banks flush with liquidity and they are understandably unsure how to deploy that liquidity given the uncertainty of deposit stability and loan demand going forward.  This has led to a record compression of margin as banks remain highly asset sensitive even though the Federal Reserve has indicated they will leave short-term rates unchanged until at least 2023.  Should banks continue holding record amounts of cash while waiting for loan demand to pick up or should the invest now to help fight margin compression that only threatens to be worse in 2022?  This broad-based session will focus on the challenges banks face in managing liquidity, interest rate risk and the investment portfolio in an extended low rate environment including specific strategies to meet those challenges successfully.  Topics will include:

  • A Look Inside Industry Trends for Balance Sheets, Performance and the Investment Portfolios Including Bank Specific Peer Data for Each Attendee
  • Best Practices for Managing IRR and Liquidity While Complying with the Latest Regulatory Guidance
  • How To Effectively Deploy Excess Liquidity in the Best Relative Value While Avoiding the Pitfalls of Higher Risk Alternatives
  • Managing Cashflows to Protect Against Extension and Depreciation as Rates Rise