--- title: Plansmith Blog | community bank budgeting (3) description: community bank budgeting | (3) --- [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: The Indiana Jones Sword vs. Gun Theory](https://blog.plansmith.com/community-banks-the-indiana-jones-sword-vs.-gun-theory) Posted by [Tom Parsons](https://blog.plansmith.com/author/tom-parsons) on 12/1/15, 12:30 PM - [Tweet](https://twitter.com/share) [![IndianaJonesSwordvsGunTheory.jpg](https://blog.plansmith.com/hubfs/IndianaJonesSwordvsGunTheory.jpg)](https://blog.plansmith.com/community-banks-the-indiana-jones-sword-vs.-gun-theory) "In the 1981 film, *"Raiders of the Lost Ark",* one particular scene consistently brings the house down: Indiana Jones, having survived an elaborate chase through a casbah, is confronted by a swordsman whipping through a flashy routine with a scimitar. Indy initially squares off against the deadly swordsman bearing only his trademark whip in his hands; then with a look of infinite fatigue and disgust, he casually pulls out his revolver and blows the bad guy away." (Credit for text: Snopes.com) [Read More](https://blog.plansmith.com/community-banks-the-indiana-jones-sword-vs.-gun-theory) ## [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) ## [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) ## [Community Bankers: Basel III, Confucius and Tom Hanks](https://blog.plansmith.com/community-bankers-basel-iii-confucius-and-tom-hanks) Posted by [Shawna Brauer](https://blog.plansmith.com/author/shawna-brauer) on 5/11/15, 12:00 PM - [Tweet](https://twitter.com/share) [![BaselIIIConfuciusTomHanks.jpg](https://blog.plansmith.com/hubfs/BaselIIIConfuciusTomHanks.jpg)](https://blog.plansmith.com/community-bankers-basel-iii-confucius-and-tom-hanks) Much like you, over the last couple of years I have spent a lot of time trying to get a handle on the impact of Basel III. I have spent countless hours attending webinars, reviewing Basel III drafts, running numbers, and figuring out how we should accommodate those changing needs within our software. During this process, I’ve found myself continually thinking about the following quote: "Life is really simple, but we insist on making it complicated." - Confucius [Read More](https://blog.plansmith.com/community-bankers-basel-iii-confucius-and-tom-hanks) ## [How Much Risk Can Your Community Bank Afford?](https://blog.plansmith.com/how-much-risk-can-your-community-bank-afford) Posted by [Bill Smith](https://blog.plansmith.com/author/bill-smith) on 4/1/15, 11:30 AM - [Tweet](https://twitter.com/share) [![HowMuchRiskYourBankAfford.jpg](https://blog.plansmith.com/hubfs/HowMuchRiskYourBankAfford.jpg)](https://blog.plansmith.com/how-much-risk-can-your-community-bank-afford) Risk is inevitable in banking, in fact it’s what makes banking profitable. The question is how much risk is acceptable. Recognizing that existing techniques of measurement were sometimes misleading and arbitrary, Plansmith developed a simple calculation called ‘Margin Risk Tolerance’ that defines how much risk each bank can take. Despite the wealth of banking information Plansmith has at hand, we believe risk relates to the individual community bank, and cannot be measured to any peer standard or magic number. Margin risk tolerance calculates the minimum net interest income and net interest margin necessary to maintain continuing operations. Minimum margin consists of two basic components: 1) earnings needed to maintain an acceptable capital ratio and pay dividends, and 2) earnings needed for overhead. [Read More](https://blog.plansmith.com/how-much-risk-can-your-community-bank-afford) ## [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) ## [Social Media 101: How to Get Your Community Bank Started](https://blog.plansmith.com/social-media-101-how-to-get-your-community-bank-started) Posted by [Danielle Slowey](https://blog.plansmith.com/author/danielle-slowey) on 2/17/15, 4:30 PM - [Tweet](https://twitter.com/share) [![SocialMedia101.jpg](https://blog.plansmith.com/hubfs/SocialMedia101.jpg)](https://blog.plansmith.com/social-media-101-how-to-get-your-community-bank-started) Although social media has been around for a while now, business profiles are still relatively new. Many financial institutions are still finding their way to the social media arena. As social media keeps growing in popularity, it is important that financial institutions climb on the bandwagon as well. [Read More](https://blog.plansmith.com/social-media-101-how-to-get-your-community-bank-started) ## [The Benefits of Using Social Media for Community Banks](https://blog.plansmith.com/the-benefits-of-using-social-media-for-community-banks) Posted by [Danielle Slowey](https://blog.plansmith.com/author/danielle-slowey) on 2/2/15, 1:00 PM - [Tweet](https://twitter.com/share) [![BenefitsofUsingSM.jpg](https://blog.plansmith.com/hubfs/BenefitsofUsingSM.jpg)](https://blog.plansmith.com/the-benefits-of-using-social-media-for-community-banks) Social media is booming. Period. 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