6 minute read – Strategic plans are all about possibilities, but the possibilities for risks to get in the way are also part of the equation. Knowing that there are risks and knowing that they can impact financial performance means that choices must be made. Those choices are better made after reaching as much clarity and … Continued
6 minute read – The following blog post was written by c. myers and originally published by CUES on July 27, 2023. Many are concerned that the next few years could be financially tough for financial institutions, even if we avoid recession. Tight liquidity, escalating cost of funds, inflation-driven operating expense increases, and accelerating loan losses … Continued
6 minute read – For many C-Suites, discussions around loan and deposit pricing, and funding strategies are now beyond the short-term band-aid. Leadership teams are expanding their views to grapple with the inevitable – What may the future hold when our shorter-term funding band-aids peel off? There is no one answer to this question. That … 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
5 minute read – It’s no surprise that borrowings have increased significantly over the last year. With non-maturity deposits shrinking, institutions have been filling the gap with borrowings. As more borrowings are being added and used more actively, it is important to keep a few points in mind. * First, borrowing strategically can … Continued
4 minute read – Unprecedented. We hear this word used every day. However, if you are a student of history, you know that there are no new stories and we’ve read a version of this story before, except now it has new economic twists and technological turns. The questions being asked, and the assumptions being … Continued
6 minute read – The following blog post was written by c. myers and originally published by CUES on June 5, 2023. Big recession? No recession? Rising cost of funds? Regardless of what’s happening in the environment, building a more efficient organization brings big benefits, including cost control, and better employee and customer experiences. A good … Continued
4 minute read – Risk often comes in pairs, and right now, interest rate risk (IRR) and liquidity risk are the dynamic duo putting pressure on financial institutions’ balance sheets. In looking at paths to address these risks, the options don’t always look that great. In some cases, they may create other issues with earnings … Continued
4 minute read – The world is becoming more complex by the minute. As this happens, many Boards are stepping back and asking themselves how their role should continue to evolve to best help the organization. Many Boards are expressing a desire, as well as realizing the necessity, to go to a more strategic level … Continued
6 minute read – Most financial institutions have, for many decades, utilized a strategy of lagging deposit rate increases when market rates rise. However, with the increased competition for deposits at a time when it has never been easier to move funds, this strategy could potentially prove costly in the long run. When determining your … Continued
