Risk Profile, Strategic Planning, Risk Appetite – all this and more in the Supervisory Insights April 2016 edition and its companion video released in July. Remember when these were all discussed independently? Examining each within the Corporate Governance Program is now the new hot button with regulatory agencies.
Most say strategic plans end up on the shelf!
Plansmith Corp. recently conducted a survey of CEOs and CFOs on the role of community bank strategic planning within their organization. It was not surprising to learn that 90% said they have a strategic plan, but a closer look revealed some interesting statistics on the implementation of their plans.
Not knowing where to start when asked to complete a bank budget or forecast can be nerve-wracking at times. I'm sure we’ve all been there, myself included. Sitting in front of a computer asking, "am I calculating these prepayments correctly? How are others doing this?" The best thing about an open roundtable forum is you’re all in the same boat using the same model! Being able to relate to one another with real life experience and build long lasting relationships with peers can’t be found on the Internet. That's why we started holding Financial Compass Roundtables; and so far, they've been a phenomenal success, not only for us as facilitators, but for the community bankers that actively craft the discussion.
Compliance
The cost of regulatory compliance, declining product prices, and technological threats from new entrants all narrow the path to future profits. Even if the yield curve improves, these threats will force community banks to search harder to improve earnings. It can’t be done on the fly; only strategic thinking and careful planning in the context of your market and the opportunities available will be successful. Would you coach a Super Bowl team without a playbook? Probably not.
Thank you to everyone who attended the March 2016 Financial Compass Roundtable!
We are pleased to announce Ireland Bank - Malad City, ID as our fourth and final April 2016 Community Banking Month winner!
We are pleased to announce Oxford Bank & Trust - Addison, IL as our third Community Banking Month winner!
We are pleased to announce Hastings City Bank - Hastings, MI as our second Community Banking Month winner!
We are pleased to announce 1st Community Bank as our first Community Banking Month winner!
In the previous post we explored the concept of funds transfer pricing (FTP), but only on the surface level. Now for the good stuff: how should the FTP rate be assigned? Well, in a number of ways from the simple to the complex. Like a lot of things in life, simple means fast, easy, less data, good enough; whereas complex requires lots of patience and data for a little more accuracy.