Our Data Driven ALM Insights webinar is now available for on-demand viewing. In this webinar, we highlight how ALM profiles are continuing to improve, while also addressing the pressure of operating expense growth, which for many is outpacing revenue and asset growth. We discuss the importance of balancing pricing strategies with long-term earnings impact. Additionally, … Continued
As part of our recent webinar, Finance at the Forefront of Merger & Acquisition Opportunities, participants took an exclusive survey on their decision drivers for M&A. Below, we share key highlights from the results of that survey. Who Participated? We heard from institutions of all different sizes, with over half of respondents representing organizations with … Continued
Q: When the Fed has significantly cut rates, how many times has the yield curve shifted in parallel? A: ZERO! What does this mean for you? In a world filled with uncertainty, this is one thing you can count on. So, don’t rely solely on parallel shifts in the yield curve when modeling. Expand your … Continued
Pressure on non-interest income continues to grow, particularly on Overdraft Protection (ODP) and Non-Sufficient Funds (NSF). In 2022, many financial institutions revamped their ODP and NSF programs. Some did this to get out in front of potential regulatory pressure and take advantage of a market opportunity. Many others followed suit because of competitive pressure. Fast … Continued
Robust earnings eliminate a potential impediment on the road toward progress with strategic objectives. The current environment, however, is placing pressure on earnings in a variety of ways. Net interest margin compression, increasing operating expense ratios, higher projected reserves for loan losses, and potential decreases in non-interest income sources all seem to be impacting financial … Continued
While none of us can predict the future, those who anticipate various future scenarios and work through their options tend to fare materially better than those who don’t. Utilizing scenario planning to rehearse for potential future events can boost confidence in decision-making for an unknown tomorrow, while building the strength to handle it along the … Continued
4 minute read – Over the last 18 months, the conversations we’ve had with management teams and board members across the United States have focused on concerns around interest rate risk – rates sat at or near 0% for so long that most people in leadership positions were not in decision-making positions the last time … Continued
3 minute read – The list of pressures on revenue and earnings seems to grow by the day. There are many different drivers of inflation right now, such as food prices, supply chain issues, and wage growth, each of which brings their own unique impacts. Rising rates, recession concerns, and tightening liquidity bring additional pressures … Continued
3 minute read – With the Federal Reserve using monetary policy and increasing rates to combat inflation, there will be different winners and losers. Every financial institution has a unique exposure to rising interest rates. Some financial structures will experience an increase in earnings from higher fed funds and prime rates while others could see … Continued
