The purchase of an asset liability management (ALM) system presents a problem to many bankers. Often the process begins with the creation of a checklist of features and functions then progresses to comparing vendors. The vendor with the highest "score" wins. While this may be a good start, there are dimensions to the problem that this ignores, specifically the quality and significance of the features identified.
FASB Approves WARM Methodology for CECL
Community banks and credit unions looking for practical advice on how to implement the new CECL standard received a helping hand from the agency that authored the oft dreaded accounting rule. In a January 2019 Staff Q&A, the Financial Accounting Standards Board (FASB) stated that the weighted average remaining maturity (WARM) method is an acceptable method for less complex financial institutions to estimate expected credit losses. The FASB Q&A Comment also provided a couple different examples on the application of the WARM methodology to comply with CECL, and these examples do a good job of explaining the mathematics behind the calculation. If you haven’t done so already, you can read the FASB Q&A Comment here.
As Plansmith’s Director of Client Education, I’m often asked which continuing education programs should I attend and why?
One of my favorite courses that I always recommend is our Compass Advanced Coaching event. Don’t let the title scare you, it’s a great fit for a wide variety of experience levels.
One of the most common calls we take at Plansmith is from a bank or credit union looking to improve their entire budgeting, forecasting and board reporting process. While the organizations vary greatly in size, and the person calling is sometimes the president and other times a financial analyst – most often they all have one thing in common: “I’m currently using Excel.”
Another great year has gone by, the stock market notwithstanding. With the number of banks and credit unions continuing to shrink, the cream is rising to the top. The quality of the remaining institutions is getting better.
Having tried my best to avoid ‘labels’ of all types, I seldom bring attention to achievements that are gender associated. However, the good work of others is something that should always be recognized. Male or female, it is always important to acknowledge role models that inspire.
In recognition of their hard work and dedication, Plansmith would like to congratulate this year’s 2018 Influential Women In Business Honorees, including our client, Jean Theis, EVP and COO of Andigo CU.
Over the past 20 years I’ve experienced the usual ups and downs of home ownership. A leaky roof, a flooded basement, as well as the two-week bathroom remodel that turned into an eight-week job. I’ve seen it all. At first, I tried to tackle many home projects on my own. I soon discovered that I was a pretty good painter and a really bad plumber. After I accidentally caused an upstairs toilet to leak into the family room ceiling, I resolved to get help from a trusted plumber that had the proper tools and know-how to get any plumbing job done right.
For those of you who are fans of the sitcom Seinfeld, George Costanza would break down this word into its two components: thanks and giving.
How many times in our daily lives do we say “thanks"? A lot! It’s our common, casual, and pretty standard way to end each email, text, and verbal conversation. I’m not saying that it isn’t heartfelt. I’m just saying that this time of year - and this particular holiday - give us a chance to pause and appreciate each other. And, maybe more importantly, pay more attention when someone offers us a thank you.
As you grow, your organization has more and more things to manage.
- Strategically, you’re working to find the right markets to penetrate with the ideal products and services.
- Financially, you’re making sure your earnings are meeting or exceeding targets.
- And organizationally, you’re looking for the right talent to expand and grow.
One thing you can’t ignore is the role Interest Rate Risk plays in the banking industry today.
"It was a very informative two days. It was also helpful to learn different ways to navigate through the tabs and fields in the Compass program."
We had nine bankers in our office last Thursday and Friday attending our first 2-day event, and what a success it was! We had a great group ranging from new clients, new users, and more established veterans, banks from $240 MM to $1.6 B in assets, men and women from diverse backgrounds, traveling in from near and far. The group was excited to share thoughts and ideas, and interested in ways we can help them enhance their understanding of the planning concepts and models.