--- title: Plansmith Blog | community bank ALCO (2) description: community bank ALCO | (2) --- [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 ## [Community Banks: Fun with Funds Transfer Pricing, Part I](https://blog.plansmith.com/community-banks-fun-with-funds-transfer-pricing-part-i) Posted by [Tom Parsons](https://blog.plansmith.com/author/tom-parsons) on 10/13/15, 3:00 PM - [Tweet](https://twitter.com/share) [![FunWithFTP1.jpg](https://blog.plansmith.com/hubfs/FunWithFTP1.jpg)](https://blog.plansmith.com/community-banks-fun-with-funds-transfer-pricing-part-i) Yep, the 90s. It was all the rage and I jumped on board like a millennial on the Grateful Dead Fare Thee Well scene – I’m not sure what it’s all about, but I want to say I was there.   [Read More](https://blog.plansmith.com/community-banks-fun-with-funds-transfer-pricing-part-i) ## [When "Market Value" Really Isn't Market Value](https://blog.plansmith.com/community-banks-when-market-value-really-isnt-market-value) Posted by [Dave Wicklund](https://blog.plansmith.com/author/dave-wicklund) on 9/22/15, 10:30 AM - [Tweet](https://twitter.com/share) [![Market\_Value.jpg](https://blog.plansmith.com/hubfs/Market_Value.jpg)](https://blog.plansmith.com/community-banks-when-market-value-really-isnt-market-value) “Where is someone that will pay me 1.5X book?; that’s what my Interest Rate Risk model says my bank is worth.” That statement, along with “there is no way this bank could be sold for 1.5X book”, are two comments I’ve heard a few too many times lately from bankers and examiners. While I will let you figure out which group is responsible for each statement, both illustrate a somewhat common misconception that capital values (sometimes called “market value of equity”) from interest rate risk models are meant to reflect actual current and projected institution sales prices.  [Read More](https://blog.plansmith.com/community-banks-when-market-value-really-isnt-market-value) ## [Five Pillars of a Productive Community Bank Planning Process](https://blog.plansmith.com/five-pillars-of-a-productive-community-bank-planning-process) Posted by [Craig Hartman](https://blog.plansmith.com/author/craig-hartman) on 8/25/15, 2:30 PM - [Tweet](https://twitter.com/share) [![ProductivePlanning2.jpg](https://blog.plansmith.com/hubfs/ProductivePlanning2.jpg)](https://blog.plansmith.com/five-pillars-of-a-productive-community-bank-planning-process) Plansmith has been building financial planning software for community banks for over 45 years. More than just coding keystrokes and calculations, though, we understand the real process of planning and build systems that seamlessly integrate into that process. [Read More](https://blog.plansmith.com/five-pillars-of-a-productive-community-bank-planning-process) ## [Community Bank Planning is a Collaborative Activity, Part 2](https://blog.plansmith.com/community-bank-planning-is-a-collaborative-activity-part-2) Posted by [Craig Hartman](https://blog.plansmith.com/author/craig-hartman) on 7/30/15, 3:00 PM - [Tweet](https://twitter.com/share) [![PlanningCollaborativeActivity2.jpg](https://blog.plansmith.com/hubfs/PlanningCollaborativeActivity2.jpg)](https://blog.plansmith.com/community-bank-planning-is-a-collaborative-activity-part-2) In the last post, we discussed the responsibilities and planning software opportunities of the [Asset Liability Committee (ALCO), Investments/Funds Management, and the CFO](https://www1.plansmith.com/blog/post/Planning-is-a-Collaborative-Activity). This post will address the role of the Community Bank's Branch/Department Managers, the Marketing Department, and the CEO/The Board. [Read More](https://blog.plansmith.com/community-bank-planning-is-a-collaborative-activity-part-2) ## [Community Bank Planning is a Collaborative Activity](https://blog.plansmith.com/community-bank-planning-is-a-collaborative-activity) Posted by [Craig Hartman](https://blog.plansmith.com/author/craig-hartman) on 7/13/15, 3:30 PM - [Tweet](https://twitter.com/share) [![PlanningCollaborativeActivity1.jpg](https://blog.plansmith.com/hubfs/PlanningCollaborativeActivity1.jpg)](https://blog.plansmith.com/community-bank-planning-is-a-collaborative-activity) Who in your community bank should be using planning specialty software? Accounting, the Board, the ALCO? You might be surprised as to how many various areas/departments and their respective managers should actively use and benefit from an automated planning system. What are the various functional areas and departments that should be actively involved in planning at your community bank? [Read More](https://blog.plansmith.com/community-bank-planning-is-a-collaborative-activity) ## [Bank IRR: Backtesting…Necessary Evil or Just Evil?](https://blog.plansmith.com/community-banks-backtesting-necessary-evil-or-just-evil) Posted by [Dave Wicklund](https://blog.plansmith.com/author/dave-wicklund) on 4/16/15, 12:00 PM - [Tweet](https://twitter.com/share) [![BacktestingNecessaryEvilOrJustEvil.jpg](https://blog.plansmith.com/hubfs/BacktestingNecessaryEvilOrJustEvil.jpg)](https://blog.plansmith.com/community-banks-backtesting-necessary-evil-or-just-evil) So if you’re reading this, my second ever blog post, you’ve probably already seen the first one entitled ["Independent Review, Model Validation, and Backtesting: Same Thing, Only Different."](https://www1.plansmith.com/blog/post/Independent-Review-Model-Validation-and-Backtesting-Same-Thing-Only-Different) In that piece, we looked at the interrelationship of these three items and brought up a few questions on backtesting. Specifically, we questioned who should do it, how often should it be done, what period should be covered, do you need to backtest model results and assumptions, and why even bother if market rates really aren’t changing. [Read More](https://blog.plansmith.com/community-banks-backtesting-necessary-evil-or-just-evil) ## [Independent Review, Model Validation, and Backtesting for Community Banks](https://blog.plansmith.com/independent-review-model-validation-and-backtesting-for-community-banks) Posted by [Dave Wicklund](https://blog.plansmith.com/author/dave-wicklund) on 3/16/15, 2:30 PM - [Tweet](https://twitter.com/share) [![IRModelValBacktesting.jpg](https://blog.plansmith.com/hubfs/IRModelValBacktesting.jpg)](https://blog.plansmith.com/independent-review-model-validation-and-backtesting-for-community-banks) In our ever increasing efforts to educate and inform, our marketing department here at team Plansmith has been on me to contribute to our Blog. Quite frankly, I’m not really a "blog" guy, but for those of you that know me, I’m not short on opinions either. So, given that I sit here stuck on a plane for a few hours, this seems like a good time to take a shot at it. [Read More](https://blog.plansmith.com/independent-review-model-validation-and-backtesting-for-community-banks) ## [Community Bankers, There's Room For Improvement](https://blog.plansmith.com/community-bankers-theres-room-for-improvement) Posted by [Bill Smith](https://blog.plansmith.com/author/bill-smith) on 3/2/15, 5:30 PM - [Tweet](https://twitter.com/share) [![TheresMoreRoomImprovement.jpg](https://blog.plansmith.com/hubfs/TheresMoreRoomImprovement.jpg)](https://blog.plansmith.com/community-bankers-theres-room-for-improvement) Most community bank and credit union boards and executives spend a lot of time looking at past performance data. But many only look at projected data once a year at budget time. Seems backwards to me. As George Bush (the older one) said, "The past is over". The future is unlimited. We can do nothing to change what has happened, but we can do anything to change the future. [Read More](https://blog.plansmith.com/community-bankers-theres-room-for-improvement) ## [Community Bankers: The Most Popular Posts of 2014](https://blog.plansmith.com/community-bankers-the-most-popular-posts-of-2014) Posted by [Danielle Slowey](https://blog.plansmith.com/author/danielle-slowey) on 1/5/15, 1:30 PM - [Tweet](https://twitter.com/share) [![MostPopularPosts2014.jpg](https://blog.plansmith.com/hubfs/MostPopularPosts2014.jpg)](https://blog.plansmith.com/community-bankers-the-most-popular-posts-of-2014) Happy one year anniversary to Sparks from the Anvil! There has been a great response to the blog, thanks to all of you. [Read More](https://blog.plansmith.com/community-bankers-the-most-popular-posts-of-2014) ## [The Future Risk in Community Banking](https://blog.plansmith.com/the-future-risk-in-community-banking) Posted by [Craig Hartman](https://blog.plansmith.com/author/craig-hartman) on 12/8/14, 10:30 AM - [Tweet](https://twitter.com/share) [![TheFutureRisk.jpg](https://blog.plansmith.com/hubfs/TheFutureRisk.jpg)](https://blog.plansmith.com/the-future-risk-in-community-banking) Since the introduction of the venerable GAP analysis in the mid-1970s, risk management has continued to evolve. It has moved from the basic mismatch of rate sensitive assets and liabilities to more sophisticated techniques – such as prepayment modeling, rate change betas on non-maturing deposits, and rate shocking with parallel rate shifts and non-parallel rate shifts. Then mark-to-market analysis of the balance sheet and the impact on equity was brought in with the attendant benchmarks. These are all interesting measurements of the company’s risk at a point in time. It’s like glancing at your car’s dashboard. [Read More](https://blog.plansmith.com/the-future-risk-in-community-banking) [Previous](https://blog.plansmith.com/topic/community-bank-alco/page/1) [All posts](https://blog.plansmith.com/all) [Next](https://blog.plansmith.com/topic/community-bank-alco/page/3) ### Subscribe Now! ### Posts by Tag - [community bank planning (55)](https://blog.plansmith.com/topic/community-bank-planning) - [community bank strategy (52)](https://blog.plansmith.com/topic/community-bank-strategy) - [community bank (49)](https://blog.plansmith.com/topic/community-bank) - [credit union planning (47)](https://blog.plansmith.com/topic/credit-union-planning) - [community bank budget software (45)](https://blog.plansmith.com/topic/community-bank-budget-software) - [budgeting (42)](https://blog.plansmith.com/topic/budgeting) - [community bank budgeting (42)](https://blog.plansmith.com/topic/community-bank-budgeting) - [interest rate risk (35)](https://blog.plansmith.com/topic/interest-rate-risk) - [community bank interest rate risk (33)](https://blog.plansmith.com/topic/community-bank-interest-rate-risk) - 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