As another summer fades into the review mirror, I think back to all those family vacations my wife and I took our kids on and the all too familiar question that came every year as we got closer to our destination (and the end of my patience); “Are we there yet?” And just like how we never seemed to get to that destination fast enough, the banking industry just can’t get to a place of deposit stability fast enough either.
Planning for opportunities drives growth; preparing for challenges ensures survival. Despite lingering unknowns like tariffs, governmental tensions, and stubborn inflation, community bankers are entering 2026 with optimism. This positive outlook is supported by the ABA Economic Advisory Committee (2025), which expects modest economic gains in 2026, driven primarily by stronger consumer spending.
The question is: how can you leverage new opportunities while preparing for inevitable challenges?
You've spent countless hours crafting the perfect strategic plan – the one that will drive growth and secure your institution's future. But what happens when that brilliant strategy stalls, derails, or simply fades away due to resource limitations, miscommunication, or a lack of oversight?
That frustrating gap between a great idea and a successful outcome is what we call Execution Risk.
For lean community banks and credit unions, this isn't just a threat; it's the single biggest obstacle to momentum – and success.
AI is transforming the way we work, and, at Plansmith, we're excited to be part of the movement. In August 2025, we proudly launched our latest innovation, RiskGPS AI Assist, available in our BankersGPS model. Since then, we've received thoughtful questions from clients exploring the new feature. One in particular stood out, and we couldn't resist sharing it with you.
In today's banking world, things are always changing, and uncertainty can feel constant. With competitive pressures rising, regulations evolving, and margins tightening, you shouldn't have to carry the burden of ambiguity. Bank leaders require more than intuition; they demand precise, actionable clarity to navigate effectively.
One of the most potent sources of that clarity lies within peer performance data – when approached with a strategic mindset.
The banking industry is complex, and it’s only getting more intricate. For successful organizations, budgeting and forecasting are the foundation of strategic financial planning. They guide decisions, manage risk, and ultimately steer the organization towards its goals. However, striking the right balance in the level of detail included in these crucial processes, namely budgeting and forecasting, is a delicate art. Go too granular, and you risk getting lost in the weeds, obscuring the bigger picture. Provide too little, and you lack the actionable insights needed for effective management. Finding that "just right" Goldilocks zone is paramount.
As a financial leader, you’re no stranger to balancing strategy, compliance, and performance. But if there’s one task that continues to demand more of your time than it should, it’s likely CECL reporting.
You’re not alone. Across the country, CFOs, controllers, and entire CECL committees are hitting a breaking point with their current CECL solutions, especially as the original wave of contract renewals comes due. If you’re stuck wrestling with expensive, clunky platforms, endless spreadsheets, and reporting tools that seem more confusing than helpful, this might be the best opportunity you’ll get to reassess.
Here’s why now is the right time to take a closer look, and why so many financial institutions are making the switch to Plansmith’s all-in-one CECL solution.
Uncertainty and volatility seem to be the only consistent elements concerning the post-COVID economy. So, how do you adequately measure the financial impact today’s economic landscape will have on your business? By utilizing a true planning model.
A professional forecasting platform for Budgeting and ALM/IRR adapts to changing conditions. As it is relationship-driven, it can be set to react to environmental changes, including rates. As the rate environment shifts, so should your balance sheet growth and product mix. Planning models help you test the impact of such changes and measure results in minutes, not hours.
In 2022 and 2023, the Fed increased the target Fed Funds rate by a total of 525 basis points. Those moves were aimed at tempering the overheated economy in the wake of the COVID pandemic. As a result of those increases, we saw massive shifts in deposit balances as consumers became more aware of opportunities to move balances from lower yielding non-maturity deposits into higher yielding CDs and alternative investment products. Now, as the Fed has begun cutting rates, depositors are actively looking both inside and outside their bank or credit union for the highest rate(s) they can find, significantly impacting financial institution liquidity levels and planning strategies.
Risk is inevitable in banking; in fact, it’s what makes banking profitable. The question is, how much risk is acceptable? Recognizing that existing techniques of measurement were sometimes misleading and arbitrary, Plansmith developed a simple calculation called "Margin Risk Tolerance" that defines how much risk each bank can take. Despite the wealth of banking information Plansmith has at hand, we believe risk relates to the individual bank, and cannot be measured to any peer standard or magic number.
Margin risk tolerance calculates the minimum net interest income and net interest margin necessary to maintain continuing operations. Minimum margin consists of two basic components: 1) earnings needed to maintain an acceptable capital ratio and pay dividends, and 2) earnings needed for overhead.