Happy one year anniversary to Sparks from the Anvil! There has been a great response to the blog, thanks to all of you.

In case you missed them, here are the Top 5 blog posts of 2014:

1. Of Bulls and Bears

A new request list and questionnaire from the OCC is making its way around the banking community and the NCUA has issued one of its own. Regardless of who you answer to, expect more scrutiny on your ALM model. For some of you this might be "old hat", but we’ve fielded calls by clients asking for interpretation of the IRR Data Collection. So, Plansmitties, and even non-Smitties, take note: there is a letter with your name on it and we’re here to help. READ MORE

2. Of Bulls and Bears Part Two

Last week we covered the first half of the OCC letter requesting information from client banks on their IRR model. Along with the letter, you may have run across some forms to be filled in with results from your model. This post and the accompanying webinar are meant to clarify the letter and terminology. Separately, but related, we have produced a video and guide for completing the OCC EV IRR Data Form for Financial Compass Clients.READ MORE

3. Why ALCOs Fail: Staffing the ALCO

This was part 3 of a three-part series. You can also read parts one and two.

There is an architecture design concept that says, "form follows function." Once the ALCO has determined what it must do, it must inventory the resources at hand as well as those necessary to make it successful. Among these resources are the men and women within your company whose abilities and perspective will contribute to achieving the goal. It is safe to assume that the general purpose of the ALCO is to control the behavior of the net interest margin by understanding and controlling the factors that affect margin. READ MORE

4. Are You Really Ready for Rising Rates?

Lately I’ve talked to a lot of bankers who are actually looking forward to the inevitable rise in market interest rates. They believe that their institution’s net interest margin and profit will increase because that’s what their rate risk analysis is telling them. READ MORE

5. Bringing Meaning to the Numbers

Financial institutions are not like other businesses. After all how many other businesses get a daily statement of condition? In what other business is the balance sheet also the product list? It must be remembered that a financial institution’s directors typically come from other industries. For these reasons, it is management’s responsibility to translate the business model, key operating ratios and banking language into terms familiar to directors to insure meaningful dialog. READ MORE

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