--- title: Plansmith Blog | asset liability management description: asset liability management | --- [CALL TOLL-FREE 1-800-323-3281](https://www.plansmith.reachproductions.net/project/call-toll-free-1-800-323-3281/) [![Plansmith](https://blog.plansmith.com/hs-fs/hubfs/Plansmith-Logo.png?width=764&height=135&name=Plansmith-Logo.png "Plansmith")](https://www4.plansmith.com) - Solutions - [Budgeting](https://www4.plansmith.com/budgeting/) - [ALM](https://www4.plansmith.com/alm) - [ALM Advisory Services](https://www4.plansmith.com/alm/advisory-services/) - [CECL](https://www4.plansmith.com/cecl/) - [Strategy](https://www4.plansmith.com/strategy/) - [Market Intelligence](https://www4.plansmith.com/market-intelligence/) - Products - [StrategyGPS](https://www4.plansmith.com/strategygps/) - [Compass](https://www4.plansmith.com/compass/) - [BankersGPS](https://www4.plansmith.com/bankersgps/) - Resources - [Blog](https://blog.plansmith.com/) - [Videos](https://plansmith.wistia.com/projects/7qemazkqii) - [Compass Tutorials](https://info.plansmith.com/compass-tutorials) - [Lunch N’ Learn](https://info.plansmith.com/lunch-n-learns) - [Webinars](https://www4.plansmith.com/webinars/) - [About](https://www4.plansmith.com/about/) - [Schedule A Discovery Call](https://www4.plansmith.com/contact-us/) - [CALL TOLL-FREE 1-800-323-3281](tel:8003233281) # Plansmith Blog ## [Budgets & Board Approvals: Meet Tough Questions with Confident Answers](https://blog.plansmith.com/budgets-board-approvals-meet-tough-questions-with-confident-answers) Posted by [David Schwieder](https://blog.plansmith.com/author/david-schwieder) on 10/2/26, 6:45 AM - [Tweet](https://twitter.com/share) [![](https://blog.plansmith.com/hubfs/Board%20Presentation.png)](https://blog.plansmith.com/budgets-board-approvals-meet-tough-questions-with-confident-answers) During budgeting season, management has two important responsibilities: developing a sound financial plan and helping the Board understand it well enough to evaluate and approve it. That second responsibility can be easy to underestimate. Directors aren't involved in every detail management considers while developing the budget. When it's time to present the plan, management has to turn weeks or even months of detailed financial work into information the Board can readily understand and use. [Read More](https://blog.plansmith.com/budgets-board-approvals-meet-tough-questions-with-confident-answers) ## [Why Every Financial Institution Should Budget for Multiple Scenarios](https://blog.plansmith.com/why-every-financial-institution-should-budget-for-multiple-scenarios) Posted by [Jim Groark](https://blog.plansmith.com/author/jim-groark) on 9/1/26, 7:08 AM - [Tweet](https://twitter.com/share) [![](https://blog.plansmith.com/hubfs/Evaluate%20outcomes.png)](https://blog.plansmith.com/why-every-financial-institution-should-budget-for-multiple-scenarios) Annual budgeting has always required financial institutions to make educated assumptions about the future. Loan growth, deposit trends, funding costs, operating expenses, and other variables all shape the strategic decisions that guide an institution through the coming year. What’s changed in recent years is the level of uncertainty surrounding those assumptions. Shifts in customer behavior, margin pressure, changing economic conditions, and evolving growth expectations have reinforced an important reality: a budget built around a single set of assumptions may not provide management with the flexibility it needs when conditions change. [Read More](https://blog.plansmith.com/why-every-financial-institution-should-budget-for-multiple-scenarios) ## [Blueprint for Success: The Plansmith Planning Cycle](https://blog.plansmith.com/blueprint-for-success-the-plansmith-planning-cycle) Posted by [Sue West](https://blog.plansmith.com/author/sue-west) on 8/3/26, 7:23 AM - [Tweet](https://twitter.com/share) [![](https://blog.plansmith.com/hubfs/Planning-Cycle.png)](https://blog.plansmith.com/blueprint-for-success-the-plansmith-planning-cycle) After 40 years in this industry, I’ve seen the same pattern in too many boardrooms: planning treated as a static "check-the-box" exercise. In today’s volatile market, that is a liability. Having worked with thousands of financial institutions, I’ve seen the full spectrum of planning processes. My own journey — from running our support department for years to serving as a hands-on budget and ALM model operator for our clients — has given me a front-row seat to the challenges you face. I’ve helped institutions prepare for everything from intense regulatory exams to high-stakes board presentations. Needless to say, I have seen exactly what works and what doesn't when it comes to effective planning. [Read More](https://blog.plansmith.com/blueprint-for-success-the-plansmith-planning-cycle) ## [Performance Today, Continuity Tomorrow: Can Your Team Sustain PTO, Turnover, and Retirement?](https://blog.plansmith.com/performance-today-continuity-tomorrow) Posted by [Megan Plis Mitchem](https://blog.plansmith.com/author/megan-plis-mitchem) on 7/6/26, 7:15 AM - [Tweet](https://twitter.com/share) [![](https://blog.plansmith.com/hubfs/Succession%20Planning.png)](https://blog.plansmith.com/performance-today-continuity-tomorrow) There’s one topic I hear consistently come up in discussions amongst financial institution leaders: succession planning. Or, as I call it, The Succession Elephant – the awkward, looming, unsolved topic occupying space in boardrooms across the country. Leaders know turnover is happening. They know it’s an aggressive risk. Yet they often don’t know where to start tackling it. This very topic was a core focus of my breakout session at the FMS Forum in New Orleans this past June. Because it's so critical – yet rarely nipped in the bud – I wanted to share a strategic framework for solving 'the succession elephant' before facing unexpected vacancies and their broader implications without a safety net in place. [Read More](https://blog.plansmith.com/performance-today-continuity-tomorrow) ## [5 Myths about Financial Institution Planning (And What to Do Instead)](https://blog.plansmith.com/5-myths-about-financial-institution-planning-and-what-to-do-instead) Posted by [Megan Plis Mitchem](https://blog.plansmith.com/author/megan-plis-mitchem) on 6/1/26, 7:30 AM - [Tweet](https://twitter.com/share) [![](https://blog.plansmith.com/hubfs/5%20Myths%20of%20Planning.png)](https://blog.plansmith.com/5-myths-about-financial-institution-planning-and-what-to-do-instead) If we’re being honest, the annual planning season is rarely met with a standing ovation. For many financial institution leaders, it feels like a chore – a box to check for the regulators or a heavy document destined to collect dust on a shelf. The problem is that many management teams are still operating under the *old rules* of planning. These misconceptions keep brilliant leaders buried in "spreadsheet land," where they spend their time managing data instead of managing the organization. If you want to move from a static plan to a dynamic strategy, it is time to debunk these five common myths. [Read More](https://blog.plansmith.com/5-myths-about-financial-institution-planning-and-what-to-do-instead) ## [Introducing the Plansmith Forum: 2026 Inaugural Event Recap](https://blog.plansmith.com/introducing-the-plansmith-forum-2026-inaugural-event-recap) Posted by [Jennifer Mello](https://blog.plansmith.com/author/jennifer-mello) on 5/22/26, 9:15 AM - [Tweet](https://twitter.com/share) [![](https://blog.plansmith.com/hubfs/Plansmith%20Forum%202026.png)](https://blog.plansmith.com/introducing-the-plansmith-forum-2026-inaugural-event-recap) I'm thrilled to share a recap of last week’s first-ever Plansmith Forum, which was an incredible success! **Attendance & Experience** We welcomed 21 attendees representing a wide range of leadership and management roles from financial institutions across the country. Hosted at the Renaissance Hotel near our corporate offices in Schaumburg, IL, the event delivered two full days of learning, collaboration, networking, and social engagement with the Plansmith team — and, most importantly, with industry peers. *“Can’t stress enough the importance of talking with other Compass users.”* *“Wonderful event for new and experienced users!”* [Read More](https://blog.plansmith.com/introducing-the-plansmith-forum-2026-inaugural-event-recap) ## [The 4Ds to Guide 2026: Deposits, Data, Decay, and Documentation](https://blog.plansmith.com/the-4ds-to-guide-2026-deposits-data-decay-and-documentation) Posted by [Dave Wicklund](https://blog.plansmith.com/author/dave-wicklund) on 5/1/26, 8:15 AM - [Tweet](https://twitter.com/share) [![](https://blog.plansmith.com/hubfs/4Ds%20in%202026.png)](https://blog.plansmith.com/the-4ds-to-guide-2026-deposits-data-decay-and-documentation) As we navigate 2026, the financial landscape continues to evolve at a breakneck pace. From my time as a Senior Examiner and Capital Markets Specialist, I've seen firsthand what separates institutions that thrive from those that merely survive. In 2026, financial leaders must prioritize what I’ll call the **"4 Ds"**: **Deposits, Data, Decay, and Documentation**. This new order reflects the true hierarchy of risk and strategic necessity. Ignore these at your peril; master them, and you secure a competitive and regulatory advantage. [Read More](https://blog.plansmith.com/the-4ds-to-guide-2026-deposits-data-decay-and-documentation) ## [Loan Prepayments - Are You Ready?](https://blog.plansmith.com/loan-prepayments-are-you-ready) Posted by [Dave Wicklund](https://blog.plansmith.com/author/dave-wicklund) on 3/2/26, 7:00 AM - [Tweet](https://twitter.com/share) [![](https://blog.plansmith.com/hubfs/Loan%20Prepayments.png)](https://blog.plansmith.com/loan-prepayments-are-you-ready) I’ve always said that deposit pricing (a/k/a “betas”), decay rates, and asset prepayments are “the big three” when it comes to interest rate risk (IRR) model assumptions. Why is that? Well, it’s because those are the ones that most people think have the greatest impact on model results, and, as a result, those are the ones that examiners tend to look at the closest. And while I don’t always agree that prepayments matter all that much (depending on the duration of any given institution’s intermediate- and longer-term assets), the current falling rate environment is certain to again shine the spotlight on them at regulatory examinations. As such, we thought it would be a good time to review a few key concepts and then go through the best practices to be sure you’re exam ready. So first, the key concepts: [Read More](https://blog.plansmith.com/loan-prepayments-are-you-ready) ## [Dynamic Decay Rates: Worthy Challenge or Futile Pursuit?](https://blog.plansmith.com/dynamic-decay-rates-worthy-challenge-futile-pursuit) Posted by [Dave Wicklund](https://blog.plansmith.com/author/dave-wicklund) on 1/2/26, 10:01 AM - [Tweet](https://twitter.com/share) [![](https://blog.plansmith.com/hubfs/data-graphs.png)](https://blog.plansmith.com/dynamic-decay-rates-worthy-challenge-futile-pursuit) Over the past several years, the banking industry has seen seismic shifts in deposits as trillions of dollars in Government stimulus were released into the economy, followed by a period of dramatic increases in market rates which then resulted in massive amounts of low yielding balances migrating into higher-paying CDs and non-bank investment products. Now, as deposit rates have begun to fall, we're seeing depositors look for higher yields both inside and outside the banking industry. [Read More](https://blog.plansmith.com/dynamic-decay-rates-worthy-challenge-futile-pursuit) ## [Ask the Expert: Top Priorities for 2026](https://blog.plansmith.com/ask-an-expert-top-priorities-for-2026) Posted by [Dave Wicklund](https://blog.plansmith.com/author/dave-wicklund) on 12/1/25, 8:15 AM - [Tweet](https://twitter.com/share) [![](https://blog.plansmith.com/hubfs/IRR.png)](https://blog.plansmith.com/ask-an-expert-top-priorities-for-2026) **"Which measurements would you consider highest priority in 2026?"** I’d say that Net Interest Margin (NIM) changes and Economic Value of Equity (EVE) should continue to be the primary focus of IRR management in 2026. Gap calculations rarely give the full picture (they're focused on timing of repricing, not magnitude), and Duration measurements can be difficult to understand. Given the rate drops we've seen so far and the expectations for further decreases, all financial institution managers and directors should have a clear understanding of how future market rate changes could impact both shorter-term earnings (i.e., NIM in the next one and two years) and longer-term capital values (i.e., EVE). 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