Plansmith Blog

Community Bank Planning is a Collaborative Activity, Part 2

Posted by Craig Hartman on 7/30/15 3:00 PM

In the last post, we discussed the responsibilities and planning software opportunities of the Asset Liability Committee (ALCO), Investments/Funds Management, and the CFO. This post will address the role of the Community Bank's Branch/Department Managers, the Marketing Department, and the CEO/The Board.

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Community Bank Planning is a Collaborative Activity

Posted by Craig Hartman on 7/13/15 3:30 PM

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?

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Community Bankers: Basel III, Confucius and Tom Hanks

Posted by Shawna Brauer on 5/11/15 12:00 PM
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

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Bank IRR: Backtesting…Necessary Evil or Just Evil?

Posted by Dave Wicklund on 4/16/15 12:00 PM

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." 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.

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Independent Review, Model Validation, and Backtesting for Community Banks

Posted by Dave Wicklund on 3/16/15 2:30 PM

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.

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Community Bankers, There's Room For Improvement

Posted by Bill Smith on 3/2/15 5:30 PM
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.

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The Benefits of Using Social Media for Community Banks

Posted by Danielle Slowey on 2/2/15 1:00 PM

Social media is booming. Period.

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Interest Rate Risk Is A Community Bank Behavioral Problem

Posted by Craig Hartman on 1/20/15 2:00 PM

Gap, beta-adjusted gap, duration and even basic budgeting models only frustrate, confuse and even mislead the financial institution’s asset liability management committee (ALCO). Detailed gap analysis, fiddling with the distribution of savings balances and even calculating the duration of equity does not lead to better margins, nor do they mitigate rate risk.

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2014: Plansmith's Year In Review

Posted by Danielle Slowey on 12/19/14 10:00 AM

2014 has been a busy year at Plansmith! We have made some great updates to our products, added some wonderful clients to the Plansmith family, and have been busy keeping up-to-date with the latest regulations and changes in the banking world.

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The Future Risk in Community Banking

Posted by Craig Hartman on 12/8/14 10:30 AM

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.

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