Plansmith Blog

Planning Doesn’t Stop At 5:00 On Friday

Posted by David Schwieder on 2/12/20 1:45 PM

At Plansmith, we focus on not only helping our clients with preparing an annual budget, but identifying the action items involved in making the plan come to fruition. When you work all week helping banks and credit unions do a better job of planning, it’s probably not uncommon to take a step away on the weekend and refresh the batteries.

But do we ever really stop planning?

Last weekend, I was making plans (there’s that word again) to attend a concert at Chicago’s Thalia Hall. Since this was a general admission show, my goal was to arrive early in order to be relatively close to the stage. If you’re a bank or credit union CFO, think of this as my desired ROI.

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The 4 Big Backtesting Questions Revisited

Posted by Dave Wicklund on 2/5/20 2:50 PM

As we move into a new year, you may still be working on a few of those items you didn’t quite get to in 2019. And for a lot of our clients, one of those items is often backtesting. Given all the confusion surrounding backtesting, it can be pretty easy to keep pushing it to the bottom of the “to-do” list.

So, we thought it might be a good idea to dust off a blog I wrote back in 2015 to jump start your 2020 so you can get one more thing crossed off your list. In that blog, we looked at a few of the most common questions we get on backtesting. Specifically, we discussed who should do it; how often it should be done; what period should be covered; and if you need to backtest just model results, or also key model assumptions.

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Stop Budgeting and Start Planning

Posted by Craig Hartman on 1/17/20 9:16 AM

Most of us have been building annual budgets forever. First on paper spreadsheets, then with electronic spreadsheet like Excel, and now with software budgeting tools that amount to little more than more convenient spreadsheets. But a budget is typically all numeric built with trending and last year’s information. Usually the CEO provides a growth and earnings expectation and we build the budget to make the math work. If you have a system that can also provide rate risk analysis and draw detailed data from your core system, you really have a great system. So, what’s the problem?

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Turn Your Budget into Action

Posted by Bill Smith on 1/9/20 11:05 AM

A budget without a Playbook is just numbers on a page.

You know what your targets are but you also need to define how you will get there.  A Playbook defines the actions needed for success, and the people who will manage the process.

But many managers say they just don’t have the time or resources.

Plansmith’s Playbook is a simple online platform to help you create clearly defined initiatives, track progress, and reach your targets by creating an action plan for your budget.

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Do It Yourself CECL

Posted by Jim Groark on 12/24/19 10:24 AM

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.

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Plansmith: Budgeting, Asset Liability Management, CECL & Strategy

Posted by Megan Plis Knapp on 12/12/19 11:33 AM

For almost 50 years, Plansmith has helped financial institutions remove the stress from budgeting and interest rate risk.

As customer preferences and regulatory challenges progress, we create new solutions to complement our core in-house budgeting and IRR solutions.

Are you familiar with all of the ways Plansmith helps financial institutions like yours?

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Compass 2-Day Event: What to Expect if You Attend!

Posted by Jennifer Mello on 12/2/19 8:43 AM

Technology is a beautiful thing. It allows people to seamlessly engage in business interactions from thousands of miles away. It helps strangers grow real, meaningful relationships. It bolsters professionalism and deepens client/company relations.

However, we find it can leave you feeling like something’s missing.

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4 Reports for Analyzing & Understanding IRR

Posted by Dave Wicklund on 11/18/19 1:48 PM

Knowing and understanding your organization's risk position is important. Regulators expect you to keep a close eye on your IRR exposure and be ready for a rising rate environment.

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Regulatory Expectations: IRR & Liquidity

Posted by Dave Wicklund on 11/6/19 10:51 AM

Does your organization have the IRR and Liquidity knowledge it needs to succeed?

Regulatory guidance emphasizes the importance of effective corporate governance and outlines expectations for both board members and senior management personnel. Specifically, interagency guidance identifies the board of directors as having the ultimate responsibility for the risks undertaken by an institution – including IRR and liquidity.

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The Real Reasons to Outsource Your IRR

Posted by Dave Wicklund on 10/15/19 11:01 AM

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.

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