GRADUATE SCHOOL OF BANKING AT COLORADO CLASS OF Intersession Research Project RISK MANAGEMENT. Timothy Koch & Jerry Crigger
|
|
- Julia Robinson
- 6 years ago
- Views:
Transcription
1 GRADUATE SCHOOL OF BANKING AT COLORADO CLASS OF 2014 Intersession Research Project RISK MANAGEMENT Timothy Koch & Jerry Crigger
2 2 Introduction GRADUATE SCHOOL OF BANKING AT COLORADO INTERSESSION RESEARCH PROJECT - RISK MANAGEMENT CLASS OF 2014 During your enterprise risk management (ERM) and loan portfolio management classes at GSBC, you were exposed to different methodologies to identify and manage interest rate risk and credit risk in a bank and plan for contingency funding. This intersession assignment provides you with an opportunity to apply these concepts to your organization. After you complete the assignment, you will have a better understanding of the general value of a risk profile, the specific profile of your bank, and what your bank does to manage overall balance sheet risk and the credit risk in the bank's loan portfolio. The intent is for you to combine the ERM activities with specific Credit Risk Management activities within your bank to better help you make strategic decision. Importantly, the final part of the assignment is to make recommendations along these lines. Project Resources and Information Needed To complete this project, you are expected to generate portions of an internal risk assessment of your institution. In particular, you are asked to assess risk associated with capital adequacy (C), asset quality (A), liquidity (L) and sensitivity to interest rate risk (S). A. To assess your institution s capital and liquidity risk profile, you may use your UBPR or UTPR information for the most recent quarter (plus trends) or other information generated by your ALCO or Risk Committee. In order to complete the interest rate risk analysis, you will need to obtain copies of your bank s reports that analyze GAP, Net Income Sensitivity Analysis / Simulation, and/or Economic Value of Equity Sensitivity Analysis. You should be able to obtain this information from your bank s ALCO or Risk Management Reports. Supporting information is also available in the UBPR/UTPR or Canary Report. B. Several templates are available at the GSBC website to facilitate completing the credit risk (asset quality) assessment. To access the template, go to An instruction sheet is provided on the site to facilitate entering data into the template. Within your bank, you should obtain Loan Quality information with supporting information available from the UBPR/UTPR. ( If you are a regulator or do not work for a financial institution, attempt to gather the information from a bank you have examined or from regulatory reports, e.g. examination reports, and the Uniform Bank Performance Report (UBPR). Alternatively, you might ask one of your fellow students to share information on his/her bank. To protect the confidentiality of the information, it is not necessary that regulators disclose the name of the bank.
3 I. Executive Summary [5%] 3 Briefly, describe the current situation in your institution regarding ALCO and Credit Risk. Using GSBC experience, comment on the quality and completeness of these activities. Briefly summarize your current job responsibilities. For additional project context, summarize your financial institution s asset size; age of the institution; ownership structure (e.g. family owned, closely held, subchapter S, publicly traded); markets served; and principal loan products offered. II. ERM: Construct a Profile for the institution s Capital adequacy, Liquidity and Interest Rate Risk [40%] Obtain a recent copy of your bank's ALCO report or Risk Management report. Supplement this information with UPBR / UTPR data as appropriate. For Parts A, B and C, refer to the most comprehensive method of measuring interest rate risk (static GAP, earning/income sensitivity and/or simulation, economic value of equity (EVE) or net present value sensitivity, model simulations, etc.) that your bank uses to analyze the bank's current exposure to interest rate changes. A. What are the bank s interest rate risk policy targets? Cite specific policies related to the allowable size of GAP, the sensitivity of earnings, and/or the sensitivity of EVE. Interpret what the figures mean. A. Describe your bank s current interest rate risk profile. Attach a copy of all relevant data. This information will be shared only with the grader. a) Explain what the figures indicate regarding the bank s interest rate risk exposure. Specifically, is the bank asset or liability sensitive and is the bank positioned to profit if rates increase or decrease? If your bank does earnings sensitivity analysis or EVE sensitivity analysis, what is the estimated impact on earnings and/or the economic value of equity across different rising and falling rate environments? Cite specific figures for the earnings impact by comparing the change in earnings compared to some base case or most likely case. b) Is the bank s aggregate interest rate risk exposure large or small? Describe how you arrive at this conclusion. C. Discuss the impact of embedded options. In its sensitivity analysis, explain how your bank explicitly attempts to measure the impact of loan prepayments, bonds being called, and asset yields changing differently than liability costs when rates change. Also, discuss also the impact of early withdrawals of deposits on interest expense. Describe any specific approach, or modeling, that is used by your institution to address embedded options potential earnings impact.
4 4 For Parts D, E, F and G, identify the financial ratios and related metrics - including your contingency funding plan - that your institution uses to identify, measure and manage capital and liquidity. Use the information to address the issues referenced in each part. D. Examine and report the following ratios at your bank versus peers in the most recent period. Indicate what the figures mean in terms of trying to assess whether the bank has adequate liquidity. Interpret what the values for your bank suggest regarding the bank s liquidity position. Where relevant, compare your bank s ratios with those for peer banks. 1. Loans-to-deposits 2. Core deposits to total assets 3. [Cash plus unencumbered (liquid) assets] divided by [deposits plus short-term borrowings] 4. Pledged securities to total securities. E. To what extent does your bank rely on purchased, non-core liabilities? Cite specific data for federal funds purchased and repurchase agreements (RPs), Federal Home Loan Bank advances, jumbo CDs, internet and rate board deposits, etc. and compare key ratios to peers. F. Discuss what contingency funding sources the bank has available. Assume that your bank needs to borrow a significant amount of funds in the next 5 days. Explain where and how it would get the funds. Explain where and how you would get a significant amount of funds that you need over the next 30 days. Discuss, in general, whether and why your institution s liquidity risk is low, moderate or high. G. Examine and report the three regulatory capital ratios for your bank versus peers. What are the key trends from 2007 present? Did your institution raise external capital over this period? If so, discuss in what form it raised the capital and its strategic purpose. Discuss, in general, whether and why the risk profile of your institution s capital position is low, moderate or high. III. Construct and Assess an Aggregate Credit Risk Profile [40%] A: Construct a Quantity of Risk Profile for your bank The Quantity of Risk Profile utilizes summary loan portfolio information which should be available from the senior credit officer or senior lender in your bank as well as from the UBPR or UTPR. (NOTE: If the information requested is not readily available, do the best you can. However, be sure to describe any shortcomings to the complete analysis, whether you believe it might be beneficial for your bank to develop more comprehensive portfolio information, and what information additions you believe will be helpful). 1. Use the Transaction Risk Profile (Directional Assessment) template to array the loan portfolio by Risk Rating in a format that displays:
5 a) The % of total loan portfolio by Risk Rating in each Rating Category. Ideally, Risk Ratings will be assigned to Commercial & Industrial (C&I); Commercial Real Estate (CRE); Agriculture; Consumer; and Residential Permanent Mortgage Loans. b) NOTE: If certain categories of loans are not assigned a Risk Rating in your bank, use your best judgment to assign Ratings. Be sure to describe the methodology used for your assessment. c) Also NOTE: The Transaction Risk Profile template provides a choice among four Risk Rating scales. If your bank uses a different methodology, use the closest scale provided and state in the paper how you assigned the categories. 2. Include a table in the paper of your bank s major lines of business expressed in as a percentage (%) of total portfolio outstandings and of bank capital. a) NOTE: This may be found in the UBPR: a. % of Average Gross Loans (page 7A of the UBPR-- Analysis of Credit Allowance and Loan Mix-- has % of Avg. Gross Loans for major loan categories) b. Major loan categories as a % of Total Capital may be found on page 7B of the UBPR (Analysis of Concentrations of Credit). b) REMEMBER: If an industry within a Line of Business is => 20% of Capital, that industry should be identified separately to be used with the Intrinsic Risk Scoring Worksheet. a. NOTE: Owner Occupied Commercial Real Estate should be included in C&I and broken down by respective industries if possible. b. Examples of Industries within Lines of Business (See 3c below for sample Lines of Business): i. Within Agriculture: 1. Dairy 2. Row Crop ii. Within CRE (Permanent): 1. Multi-family 2. Strip Retail Centers 3. Office 4. Warehouse c. As with Transaction Risk, if all data are not available, do the best you can. Comment on what is available, how you used that information, and whether you believe additional bank-wide tracking might or might not be beneficial. Provide reasons for your assessment. 3. Use the information contained in the Line of Business/Industry table to determine how many Intrinsic Risk Scoring Worksheets should be completed, and complete the Worksheets. 5
6 NOTE: a) One Intrinsic Risk Scoring Worksheet will be completed for each Line of Business (after subtracting Industries within that Line of Business that =>20% of Capital i.e. Tier1 + ALLL or Total Capital from the UBPR). b) One Intrinsic Risk Scoring Worksheet will be completed for each Industry that =>20% of Capital. c) If a line of business has nominal outstandings (i.e. <5% of the loan portfolio) combine the outstandings for all similar lines of business and intuitively assign an Intrinsic Risk Score. Examples of lines of business include: :Consumer Direct Indirect Home Equity Credit Card :Commercial and Industrial (C&I) :Real Estate Commercial Construction Commercial Permanent Residential Construction Residential Permanent :International :Municipalities :Agriculture :Factoring/Commercial Finance/Asset Based Lending :Not for Profit 6 4. Include a table in the paper highlighting major Concentrations expressed as follows: a) Borrower: 10 largest borrowers as % of Capital (do not use actual names. A total or list by Borrower 1, Borrower 2, etc. is sufficient) b) Industry, Property Type, or Type of Ag as % of Capital c) Lines of Business as % of Capital (Do not include C&I, Ag, or CRE portfolio: Concentrations in the C&I, Ag and CRE portfolios will be picked up in borrower and industry concentrations. If the Ag and CRE portfolios are considered to be homogeneous, then they may be used as the largest line of business if outstandings warrant). d) Use the information contained in the table to aid in completing the Concentration Risk Assessment template in four categories: 1-Borrower; 2-Geography (Note that Geography has its own template on the GSBC website-- for use in determining geographic concentration risk);3- Lines of Business; and 4-Industry.
7 Finalize a Quantity of Risk Assessment: 7 Use the Quantity of Risk information and templates prepared as instructed above to construct a Quantity of Risk Assessment for your bank. STEP 1: Once you have completed the templates for Transaction Risk, Intrinsic Risk, and Concentration Risk and assessed the level of risk for each of the three, provide a summary graphic (such as below) to indicate the relative risk in each category and the combination risk you observe when all three are displayed together: Low Medium High T C I T = Transaction Risk I = Intrinsic Risk C = Concentration Risk STEP 2: Summarize your conclusions regarding the Quantity of Risk for your bank. a) What does the Quantity of Risk profile suggest about the potential for volatility in portfolio credit quality, earnings, and risk to capital? b) If you believe that any of the components of Quantity of Risk should be addressed in your bank, provide potential solutions that you would deploy if you were in charge of the risk profile for the institution. B. Construct a Quality of Risk Management Assessment: STEP 1: Using the Strategic Loan Portfolio Management Visual provided, plot points on the Visual or describe the position on the respective continuum for Stated Priorities/Culture, Observed Risk Strategy, and Implemented Risk Controls where you see your bank. STEP 2: Discuss the relationship between the Stated Priorities/Culture in your bank and the Observed Risk Strategy. a) Describe the Stated Priorities/Culture for your bank. b) Describe the Observed Risk Strategy (based on your assessment of the Quantity of Risk) c) Are the two consistent? d) If not, what do you believe may be the reasons? STEP 3: Discuss the Implemented Risk Controls in your bank focusing on the Visual continuum of Behavior Influencing through Behavior Controlling a) Describe your assessment (and reasons for that assessment) of the appropriateness of the Implemented Risk Controls given the Observed Risk Strategy STEP 4: Discuss the Loan Portfolio Management Tools utilized in your bank as outlined in the Quality of Risk Management hierarchy a) Provide an assessment (and reasons for that assessment) of the appropriateness of the Loan Portfolio Management Tools utilized given your bank s Observed Risk Strategy and Implemented Risk Controls
8 8 b) What steps would you recommend to better monitor, manage, or reduce the portfolio risk revealed in the profile? C. Aggregate Risk Determination and Loan Portfolio Management Conclusions: a) Combine the determined Quantity of Risk assessment with the determined Quality of Risk Management assessment (similar to the quadrant combination used in class. (You do not have to create a visual just state the conclusions for each category. For example: Quantity of Risk-- Moderately High: Quality of Risk Management Moderately Weak) b) Based on this combination, provide a conclusion (and your reasons for that conclusion) of the efficiency and effectiveness of the Loan Portfolio Management system in your bank i. If the LPM system is appropriate, what makes it so? ii. If your LPM system has identified weaknesses, what are they and what solutions would you recommend? IV. Economic Scenario and Recommendations [15%] Suppose that the U.S. and global economy face a stagflation environment in which economic growth is slow, inflation is rising and unemployment remains higher than anticipated. Because of asset quality problems, your bank is experiencing a decline in core funding. Recommend at least two activities or strategies (for each) that could be implemented to improve the risk management practices of the institution in the area of credit risk, liquidity risk, and interest rate risk. Identify specifically how the institution would benefit from each.
CREDIT RISK MANAGEMENT Jerry W. Crigger
2013 Bank Study Project Class of 2015 CREDIT RISK MANAGEMENT Jerry W. Crigger NOTES: 1. Please use Complete 8 l/2" x 11" and paper mail (or paper by February folded to 15, that 2013 size). to: 2. Please
More informationPNC Bank, NA. Board Report. June 30, Pittsburgh, PA. A/L BENCHMARKS Standards for Asset/Liability Management
A/L BENCHMARKS Standards for Asset/Liability Management Board Report PNC Bank, NA June 30, 2006 Olson Research Associates, Inc. 10290 Old Columbia Road, Columbia, MD 21046 Phone: 888-657-6680 Web: http://www.olsonresearch.com
More informationIntersession Project For the Class of 2018 LOAN PORTFOLIO MANAGEMENT YEAR Session
Intersession Project For the Class of 2018 LOAN PORTFOLIO MANAGEMENT YEAR 1 2016 Session P L E A S E N O T E For any questions regarding The Loan Portfolio Management Year 1 intersession project, the contacts
More informationBank Financial Analysis. Georgia Bankers Association
Bank Financial Analysis Georgia Bankers Association Learning Objectives Recognize the basic balance sheet accounts and income statement components and understand their relationship Grasp the ROE model
More informationLIQUIDITY AND FUNDS MANAGEMENT
LIQUIDITY AND FUNDS MANAGEMENT STRATEGIC TOPIC INTERSESSION PROJECT by: Brian Heim LIQUIDITY AND FUNDS MANAGEMENT TABLE OF CONTENTS INTRODUCTION 1 PART I: LIQUIDITY GUIDANCE AND TRENDS 2 PART II: FUNDS
More informationCRE Loan Concentrations in 2017: What You Need To Know
CRE Loan Concentrations in 2017: What You Need To Know NEW JERSEY BANKERS ASSOCIATION 113 th Annual Conference The Breakers, Palm Beach, FL May 17-21, 2017 Michael T. Rave Partner Day Pitney LLP mrave@daypitney.com
More informationLoan Pricing Profitability key words: loan pricing, rates, RAROC, profitability measure, fund transfer pricing, approaches
, Loan Pricing Profitability key words: loan pricing, rates, RAROC, profitability measure, fund transfer pricing, approaches THC Asset-Liability Management (ALM) Insight Issue 7 Introduction Loan pricing
More informationCredit Underwriting Practices
Comptroller of the Currency Administrator of National Banks US Department of the Treasury 2011 Survey of OF THE R C LE UR R EN C Y CO M P T R O L Credit Underwriting Practices 186 3 Contents Introduction...
More informationOffice of Material Loss Reviews Report No. MLR Material Loss Review of Great Basin Bank of Nevada, Elko, Nevada
Office of Material Loss Reviews Report No. MLR-10-008 Material Loss Review of Great Basin Bank of Nevada, Elko, Nevada December 2009 Executive Summary Why We Did The Audit Material Loss Review of Great
More information11/15/2016. Enterprise Risk Management. Building FHLBank Atlanta s ERM Program. FHLBank Atlanta. Navigating the Enterprise Risk Management Landscape
Enterprise Risk Management Navigating the Enterprise Risk Management Landscape Alp E. Can Director of Enterprise Risk Management, FHLBank Atlanta Virginia Bankers Association November 16, 2016 Building
More informationExternal Credit Stress Testing
External Credit Stress Testing What Community Banks Need to Know March 3, 2015 Introductions Greg Dingens EVP and Head of Investment Banking Monroe Financial Partners, Inc. 25 years experience in investment
More informationJerry Boebel, CFA Business Consultant ProfitStars Omaha Office
Liquidity Analysis and Reporting Jerry Boebel, CFA Business Consultant ProfitStars Omaha Office jboebel@profitstars.com Objectives Current trends Recent regulatory releases Consider a new approach Better
More informationLiquidity Management. 158 Route 206 Gladstone, NJ P: (908) Home FinPro, Inc.
Liquidity Management 158 Route 206 Gladstone, NJ 07934 P: (908) 234-9398 finpro@finpro.us www.finpro.us 0 Liquidity: you always have too much until you need it!! 1 Banks must take a holistic view of its
More informationTABLE OF CONTENTS. President's Letter to Shareholders Selected Consolidated Financial and Other Data... 2
3 TABLE OF CONTENTS Page President's Letter to Shareholders... 1 Selected Consolidated Financial and Other Data... 2 Management's Discussion and Analysis of Financial Condition and Results of Operations...
More informationEnterprise Risk Management
Enterprise Risk Management Navigating the Enterprise Risk Management Landscape Alp E. Can Director of Enterprise Risk Management, FHLBank Atlanta North Carolina Bankers Association August 31, 2016 Building
More informationOfficer's Questionnaire. My Bank Corporation September 30, 2003
Officer's Questionnaire My Bank Corporation September 30, 2003 (Name of Holding Company) (As of Close of Business) Any Where, Any Country (Location) Jeff R. Brownie (Examiner-In-Charge) In order to expedite
More informationLoan Profitability Report and Applications key words: return on investment, ALCO, RAROC, loan pricing
, Loan Profitability Report and Applications key words: return on investment, ALCO, RAROC, loan pricing THC Asset-Liability Management (ALM) Insight Issue 8 Introduction Loan portfolio profitability is
More informationon Delaware Banks Prepared for Delaware Bankers Association
The Impact of Standardized di d Basel II on Delaware Banks Prepared for Delaware Bankers Association Executive Summary Basel II bank capital regulations are in the news We estimate that Standardized Basel
More informationLecture Materials LOAN PORTFOLIO MANAGEMENT YEAR 1. George E. Ruth Rosemount, Minnesota
Lecture Materials LOAN PORTFOLIO MANAGEMENT YEAR 1 George E. Ruth Rosemount, Minnesota gruth_1@yahoo.com 651-328-3833 August 9, 2017 1 LOAN PORTFOLIO MANAGEMENT YEAR 1 Wednesday August 9, 2017 Intersession
More informationReviewed ALM Committee, January 2018 POLICY: ALM Policy Approved January 2018
Purpose The Asset-Liability Management (ALM) Policy of NorthPark Community Credit Union (NorthPark) sets forth the policies and guidelines to be followed in the overall management of the credit union s
More informationBASEL II PILLAR III DISCLOSURE
BASEL II PILLAR III DISCLOSURE Page 1 1. SCOPE AND APPLICATION Ithala Limited is a wholly owned subsidiary of Ithala Development Finance Corporation Limited. Ithala Development Finance Corporation Limited
More informationBANK OF CHINA (CANADA) BASEL III DISCLOSURES AS AT DECEMBER 31, 2013
BANK OF CHINA (CANADA) BASEL III DISCLOSURES AS AT DECEMBER 31, 2013 Table of Contents 1. Scope of Application... 1 2. Capital Management... 2 (a) Capital structure... 2 (b) Capital adequacy ratio... 2
More information2015 BOK Financial Corporation and BOKF, NA DFAST Public Disclosure
2015 BOK Financial Corporation and BOKF, NA DFAST Public Disclosure BOK Financial Corporation and BOKF, NA are required to perform annual company-run capital stress testing pursuant to the Dodd-Frank Wall
More informationVictoria Bennett Regional Lending Specialist. NCUA Hot Topics. CUNA Lending Council Conference. November 4, 2014
Victoria Bennett Regional Lending Specialist NCUA Hot Topics CUNA Lending Council Conference November 4, 2014 AGENDA Short update on credit unions Discussion of hot topics Suggestions 12000 Decline in
More informationLiquidity & Capital Management
Liquidity & Capital Management David Hart SunTrust Bank May 5, 2016 Unprecedented Times Current Events 2007-2010: A difficult period marked by bank failures and challenging economic conditions 2012 2014:
More informationA Comprehensive Look at the CECL Model
A Comprehensive Look at the CECL Model Table of Contents SCOPE... 3 CURRENT EXPECTED CREDIT LOSS MODEL... 3 LOSS PROBABILITIES... 5 MEASUREMENT OF EXPECTED CREDIT LOSSES... 5 Individual Versus Pooled Assessment...
More information(A Special Purpose Vehicle Consolidated by the Federal Reserve Bank of New York)
(A Special Purpose Vehicle Consolidated by the Federal Reserve Bank of New York) Consolidated Financial Statements as of and for the Years Ended December 31, 2013 and 2012, and Independent Auditors Report
More informationASSET/LIABILITY MANAGEMENT - YEAR 2
ASSET/LIABILITY MANAGEMENT - YEAR 2 Interest Rate Risk Measurement & Management Raleigh A. Trovillion Executive Vice President UMB Bank Investment Division St. Louis, MO raleigh.trovillion@umb.com 314-612-8039
More informationLiquidity Basics Measuring and Managing Liquidity
Liquidity Basics Measuring and Managing Liquidity Urum Urumoglu Senior Consultant Urum@farin.com 800-236-3724 x4210 1 Course Agenda Understanding Nature of Liquidity Definition of Liquidity Traditional
More informationCompany-Run Stress Test Results and Process Disclosure Supervisory Severely Adverse Scenario. KeyCorp. March 5, 2015
Company-Run Stress Test Results and Process Disclosure Supervisory Severely Adverse Scenario KeyCorp March 5, 2015 Important Considerations The 2015 Dodd-Frank Act Stress Test ( DFAST ) Results present
More informationKeyCorp Basel III Pillar 3 Regulatory Capital Disclosures For the Quarterly Period Ended June 30, 2016
KeyCorp Basel III Pillar 3 Regulatory Capital Disclosures For the Quarterly Period Ended June 30, 2016 KeyCorp Basel III Pillar 3 Regulatory Capital Disclosures For the quarterly period ended June 30,
More informationTHC Asset-Liability Management (ALM) Insight Issue 2
Optimize Your Liquidity Position by Identifying Your Risk Capacity key words: risk capacity, uses and sources of funds, liquidity coverage ratio, contingency funding plan quantitative assessment, THC Asset-Liability
More informationCommunity First Financial Corporation
Independent Auditor s Report and Consolidated Financial Statements Contents Independent Auditor s Report... 1 Consolidated Financial Statements Balance Sheets... 3 Statements of Income... 4 Statements
More informationFINANCIAL STATEMENT ANALYSIS & RATIO ANALYSIS
FINANCIAL STATEMENT ANALYSIS & RATIO ANALYSIS June 13, 2013 Presented By Mike Ensweiler Director of Business Development Agenda General duties of directors What questions should directors be able to answer
More informationLecture Materials LOAN PORTFOLIO MANAGEMENT YEAR 1
Lecture Materials LOAN PORTFOLIO MANAGEMENT YEAR 1 Thomas A. Farin Chairman of the Board FARIN Financial Risk Management Fitchburg, Wisconsin tfarin@farin.com 608-661-4219 August 10, 2016 GSB Credit Track
More informationCan we take more risk and remain safe?
Beyond : How to Integrate Your Business Strategy with Your Enterprise Management Program September 19, 2018 L. Randy Marsicano, NCRM, CRISC Senior Manager Professional Services WolfPAC Solutions Group
More informationBANK OF CHINA (CANADA) BASEL PILLAR III DISCLOSURES AS AT DECEMBER 31, 2014
BANK OF CHINA (CANADA) BASEL PILLAR III DISCLOSURES AS AT DECEMBER 31, 2014 Table of Contents 1. Scope of Application... 5 2. Capital Management... 3 (a) Capital structure... 3 (b) Capital adequacy ratio...
More informationLecture Materials LOAN PORTFOLIO MANAGEMENT YEAR 1. George E. Ruth Rosemount, Minnesota
Lecture Materials LOAN PORTFOLIO MANAGEMENT YEAR 1 George E. Ruth Rosemount, Minnesota gruth_1@yahoo.com 651-328-3833 August 8, 2017 1 Loan Portfolio Management Year 1 Session 1 Tuesday August 8th: 8:30
More informationAsset Quality. Contents
Asset quality is a critical part of your financial analysis of an institution because it directly impacts the evaluation of other component areas such as capital, earnings, and liquidity. The assessment
More informationBridgewater Bank Regulatory Disclosures March 31, 2016
Bridgewater Bank Regulatory Disclosures March 31, 2016 This document was prepared to fulfill regulatory requirements of the Office of the Superintendent of Financial Institutions Canada. Public disclosure
More informationMorningstar Fixed Income Style Box TM Methodology
Morningstar Fixed Income Style Box TM Methodology Morningstar Methodology Paper 31 October 2008 2008 Morningstar, Inc. All rights reserved. The information in this document is the property of Morningstar,
More informationBridgewater Bank Regulatory Disclosures March 31, 2015
Bridgewater Bank Regulatory Disclosures March 31, 2015 This document was prepared to fulfill regulatory requirements of the Office of the Superintendent of Financial Institutions Canada. Public disclosure
More informationQuarterly Financial Report
Quarterly Financial Report SECOND QUARTER June 30, 207 (Unaudited) Management s Discussion and Analysis Table of Contents MANAGEMENT S DISCUSSION AND ANALYSIS... 3 THE OPERATING ENVIRONMENT AND OUTLOOK
More informationNCUA Regulatory Update on ALM
Peter Jensen, Regional Capital Markets Specialist NCUA, Region 4, Division of Special Actions NCUA Regulatory Update on ALM University for Credit Unions September 23, 2014 Agenda Introduction Interest
More informationRisk Management. Credit Risk Management
Credit Risk Management Credit risk is defined as the risk of loss arising from any failure by a borrower or a counterparty to fulfill its financial obligations as and when they fall due. Credit risk is
More informationBridgewater Bank Regulatory Disclosures December 31, 2017
Bridgewater Bank Regulatory Disclosures December 31, 2017 This document was prepared to fulfill regulatory requirements of the Office of the Superintendent of Financial Institutions Canada. Public disclosure
More informationSEC PROPOSES NEW REPORTING REQUIREMENTS FOR REGISTERED FUNDS
June 2015 Practice Group: Investment Management, Hedge Funds and Alternative Investments SEC PROPOSES NEW REPORTING REQUIREMENTS FOR By Fatima S. Sulaiman, Kelly C. Chapman, Steven B. Levine and Frank
More informationINDIA INTERNATIONAL BANK (MALAYSIA) BERHAD ( D)
Company No. 911666-D INDIA INTERNATIONAL BANK (MALAYSIA) BERHAD (911666-D) INDIA INTERNATIONAL BANK (MALAYSIA) BERHAD (Incorporated in Malaysia) RISK WEIGHTED CAPITAL ADEQUACY (BASEL II) PILLAR 3 DISCLOSURE
More informationINDIA INTERNATIONAL BANK (MALAYSIA) BERHAD ( D)
Company No. 911666 D INDIA INTERNATIONAL BANK (MALAYSIA) BERHAD (911666-D) INDIA INTERNATIONAL BANK (MALAYSIA) BERHAD (Incorporated in Malaysia) RISK WEIGHTED CAPITAL ADEQUACY (BASEL II) PILLAR 3 DISCLOSURE
More informationCredit Risk Management and the ALCO Process
Credit Risk Management and the ALCO Process David Koch Chief Operating Officer dkoch@farin.com 800-236-3724 x4217 1 Definition: Asset/Liability Management asset/liability management is the processes of
More informationCredit Risk Management and the ALCO Process. Asset/Liability Management
Credit Risk Management and the ALCO Process David Koch Chief Operating Officer dkoch@farin.com 800-236-3724 x4217 1 Asset/Liability Management Definition: asset/liability management is the processes of
More informationBridgewater Bank Regulatory Disclosures March 31, 2017
Bridgewater Bank Regulatory Disclosures March 31, 2017 This document was prepared to fulfill regulatory requirements of the Office of the Superintendent of Financial Institutions Canada. Public disclosure
More informationSurvey of Credit Underwriting Practices 2010
Survey of Credit Underwriting Practices 2010 Office of the Comptroller of the Currency August 2010 Contents Introduction...1 Part I: Overall Results...2 Primary Findings... 2 Commentary on Credit Risk...
More informationBOFI HOLDING, INC. Investor Presentation September 2017
BOFI HOLDING, INC. Investor Presentation September 2017 NASDAQ: BOFI0 Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act
More informationLecture Materials ASSET/LIABILITY MANAGEMENT YEAR 2
Lecture Materials ASSET/LIABILITY MANAGEMENT YEAR 2 Raleigh A. Andy Trovillion Executive Vice President UMB Bank St. Louis, Missouri raleigh.trovillion@umb.com 800-433-5962 August 1, 2017 INTEREST RATE
More informationBridgewater Bank Regulatory Disclosures June 30, 2014
Bridgewater Bank Regulatory Disclosures June 30, 2014 This document was prepared to fulfill regulatory requirements of the Office of the Superintendent of Financial Institutions Canada. Public disclosure
More informationRaymond James & Associates, Inc. SF Institutional Investor Meeting
Richard P. Smith, President & CEO Raymond James & Associates, Inc. SF Institutional Investor Meeting May 2, 2017 SAFE HARBOR STATEMENT Certain comments included in this presentation may involve forwardlooking
More informationACHIEVING FINANCIAL GOALS
Welcome Client logo. Right align. No wider or taller than this box. If no client logo, delete white box covering Trusty. ACHIEVING FINANCIAL GOALS This presentation has been prepared by T. Rowe Price Investment
More informationLiquidity Basics Measuring and Managing Liquidity. Course Agenda
Liquidity Basics Measuring and Managing Liquidity David Koch Chief Operating Officer dkoch@farin.com 800-236-3724 x4217 1 Course Agenda Understanding Nature of Liquidity Definition of Liquidity Traditional
More informationThe Variable Annuity Life Insurance Company Audited GAAP Financial Statements At December 31, 2016 and 2015 and for each of the three years ended
The Variable Annuity Life Insurance Company Audited GAAP Financial Statements At December 31, 2016 and 2015 and for each of the three years ended December 31, 2016 TABLE OF CONTENTS Page CONSOLIDATED FINANCIAL
More informationINDIA INTERNATIONAL BANK (MALAYSIA) BERHAD ( D) RISK WEIGHTED CAPITAL ADEQUACY (BASEL II)
INDIA INTERNATIONAL BANK (MALAYSIA) BERHAD (911666-D) RISK WEIGHTED CAPITAL ADEQUACY (BASEL II) Pillar 3 Disclosure for Financial Year Ended 31 December 2015 Table of Contents 1.0 OVERVIEW... 1 2.0 CAPITAL
More informationOffice of Material Loss Reviews Report No. MLR Material Loss Review of American United Bank, Lawrenceville, Georgia
Office of Material Loss Reviews Report No. MLR-10-034 Material Loss Review of American United Bank, Lawrenceville, Georgia May 2010 Executive Summary Material Loss Review of American United Bank, Lawrenceville,
More informationINDIA INTERNATIONAL BANK (MALAYSIA) BERHAD ( D) RISK WEIGHTED CAPITAL ADEQUACY (BASEL II)
INDIA INTERNATIONAL BANK (MALAYSIA) BERHAD (911666-D) RISK WEIGHTED CAPITAL ADEQUACY (BASEL II) Pillar 3 Disclosure for the Half-Year Ended 30 June 2016 Table of Contents 1.0 OVERVIEW... 1 2.0 CAPITAL
More informationRegions Financial Corporation. Liquidity Coverage Ratio Disclosure
Regions Financial Corporation Liquidity Coverage Ratio Disclosure As of and for the quarter ended December 31, 2018 Table of Contents Introduction 3 Main Drivers of LCR 3 High Quality Liquid Assets 4 Net
More informationCertain investments in debt and equity securities
Financial reporting developments A comprehensive guide Certain investments in debt and equity securities (before the adoption of ASU 2016-01, Recognition and Measurement of Financial Assets and Financial
More informationMaiden Lane LLC. (A Special Purpose Vehicle Consolidated by the Federal Reserve Bank of New York)
(A Special Purpose Vehicle Consolidated by the Federal Reserve Bank of New York) Consolidated Financial Statements for theyear Ended December 31, 2009, and for the Period March 14, 2008 to December 31,
More informationCOMMERCIAL BANKING SERVICES
Community Focused. Client Driven. BUSINESS COMMERCIAL BANKING SERVICES BUSINESS CHECKING & SAVINGS Set your business up for success with the right checking and savings accounts for your size and account
More informationEnterprise Risk Management and the ALCO Process
Enterprise Risk Management and the ALCO Process Session 1: Gathering the Parts David Koch Chief Operating Officer dkoch@farin.com 800-236-3724 ext 4217 Agenda Session 1 Overview of ERM Evolution of ERM
More informationCitizens Financial Group, Inc. Dodd-Frank Act Stress Test 2015 (DFAST 2015) Company-Run Stress Test Disclosure. March 11, 2015
Citizens Financial Group, Inc. Dodd-Frank Act Stress Test 2015 (DFAST 2015) Company-Run Stress Test Disclosure March 11, 2015 The information classification of this document is Public. Page 1 I. Introduction...
More informationWhat Is Asset/Liability Management?
A BEGINNERS GUIDE TO ASSET\LIABILITY MANAGEMENT, RISK APPETITE AND CAPITAL PLANNING David Koch President\CEO dkoch@farin.com 800-236-3724 ext. 4217 What Is Asset/Liability Management? Asset/liability management
More informationCapital Speedboat Session 2. Charting your way through troubling waters FARIN & Associates Inc. Agenda
Capital Speedboat 2013 - Session 2 Charting your way through troubling waters 1 Agenda Session 2 Defining Stress Tests Stress vs. Scenario Testing Sensitivity Testing Scenarios Silos Scenario Testing Building
More informationGeorgia Banking School
GEORGIA BANKERS ASSOCIATION Georgia Banking School Asset/Liability Management I 2016 Georgia Banking School May 5, 2016 Rachel Woods, CFA Associate, ALM SunTrust Robinson Humphrey Important Disclosure
More informationCredit Administration and Documentation Standards
Credit Administration and Documentation Standards OVERVIEW: It is the objective of this Organization to extend adequate and constructive credit, in accordance with regulations, under the definition of
More informationManagement s Comments
Management s Comments Performance Summary Zions Bancorporation reported record earnings of $194.1 million or $2.26 per share in 1999. Net income increased 35.4% over the $143.4 million earned in 1998 which
More informationBank of America Merrill Lynch Banking and Financial Services Conference
Goldman Sachs Presentation to Bank of America Merrill Lynch Banking and Financial Services Conference Comments by Harvey Schwartz, Chief Financial Officer November 12, 2014 Introduction Good morning everyone
More informationInvestment Comparison
Investment Data as of 1/31/217 PAGE 2 OF 7 Fi36 FIDUCIARY SCORE OVERVIEW INVESTMENT ClearBridge Small Cap Value I MassMutual Premier Small Cap Opps R5 ishares Russell 2 Small-Cap Idx Instl Victory Integrity
More informationOffice of Material Loss Reviews Report No. MLR Material Loss Review of Cooperative Bank, Wilmington, North Carolina
Office of Material Loss Reviews Report No. MLR-10-013 Material Loss Review of Cooperative Bank, Wilmington, North Carolina January 2010 Executive Summary Material Loss Review of Cooperative Bank, Wilmington,
More informationEstimating Credit Losses: Evaluating Loss Emergence Period and Qualitative Factors
Estimating Credit Losses: Evaluating Loss Emergence Period and Qualitative Factors INTRODUCTION The AICPA Audit and Accounting Guide Depository and Lending Institutions: Banks and Savings Institutions,
More information10-Q 1 usbi _10q.htm FORM 10-Q
10-Q 1 usbi20160608_10q.htm FORM 10-Q WASHINGTON, D.C. 20549 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2016 OR TRANSITION
More informationBASICS OF LIQUIDITY WHAT IS IT? WHAT RISKS DOES IT CONTRIBUTE TO YOUR CAPITAL PLAN & FUNDING NEEDS? David Koch. President\CEO FARIN & Associates, Inc.
BASICS OF LIQUIDITY WHAT IS IT? WHAT RISKS DOES IT CONTRIBUTE TO YOUR CAPITAL PLAN & FUNDING NEEDS? David Koch President\CEO FARIN & Associates, Inc. dkoch@farin.com Agenda Describe a functional definition
More information银行管理学 作业习题. Chapter 1 Fundamental Forces of Change in Banking
银行管理学 作业习题 Chapter 1 Fundamental Forces of Change in Banking 1. Many experts argue that it was not deregulation that brought about fundamental change in the banking industry rather increases in competition
More informationOTCQX: CABC. Terry Peterson President & CEO. FIG Partners West Coast Bank CEO Forum Symbol: CABC February 1 and 2, 2017 Los Angeles
OTCQX: CABC Terry Peterson President & CEO FIG Partners West Coast Bank CEO Forum Symbol: CABC February 1 and 2, 2017 Los Angeles Forward-Looking Statements During the course of the presentation and any
More informationLBC BANCSHARES,INC. AND SUBSIDIARY. Financial Statements December 31, 2014 and (with Independent Auditor s Report thereon)
LBC BANCSHARES,INC. AND SUBSIDIARY Financial Statements December 31, 2014 and 2013 (with Independent Auditor s Report thereon) INDEPENDENT AUDITOR S REPORT To the Board of Directors and Stockholders LBC
More informationAll of the Method None of the Madness
CECL Simplified Current Expected Credit Losses ASU 2016-13 All of the Method None of the Madness The ProBank Austin 2017 Webinar Series November 9, 2017 11:00 AM ESDT Live Case Study - CECL I. Example
More informationA CECL Primer. About CECL
A CECL Primer Introduction The purpose of this paper is to provide a brief overview of Visible Equity s solution to CECL (Current Expected Credit Loss). Many facets of our CECL solution, such as the methods
More informationBEST PRACTICES IN ASSET/LIABILITY MANAGEMENT. AMIfs Institute July 18, 2016 Monday Afternoon Session
BEST PRACTICES IN ASSET/LIABILITY MANAGEMENT AMIfs Institute July 18, 2016 Monday Afternoon Session 1 Agenda - Introduction to ALM Monday, July 18 Afternoon Best Practices in ALM Structuring the ALCO Process
More informationUniform Bank Performance Report - Utilized by Maryland Financial Bank to enhance Portfolio Management
Uniform Bank Performance Report - Utilized by Maryland Financial Bank to enhance Portfolio Management March 5 th 2010 Andrew Hines Chief Credit Officer Maryland Financial Bank UPBR COLLATED CALL REPORTING
More informationEXHIBIT INFORMATION Financial Statements OFFERING
EXHIBIT INFORMATION Financial Statements OFFERING Consolidated Financial Statements (with Independent Auditors Report) TABLE OF CONTENTS Independent Auditors Report... 1-2 Consolidated Financial Statements:
More informationMaking the Business Case for the CECL Approach
Making the Business Case for the CECL Approach Attend any recent or upcoming financial institution conference and you will find considerable discussion and debate about the new accounting guidance related
More informationBotswana Building Society Basel II Pillar III disclosure for the year ended 31 March 2016
Botswana Building Society Basel II Pillar III disclosure for the year ended 31 March 2016 March 2017 Contents 1.1 Table references 4 1 The 2016 Botswana Building Society Pillar III disclosure report covers
More informationALCO: The Fundamentals
ALCO: The Fundamentals Presented by: Urum Urumoglu Senior Consultant Urum@farin.com 800-236-3724 ext. 4210 1 What Is Asset/Liability Management? Asset/Liability Management (ALM) is the process of planning,
More informationBotswana Building Society Basel II Pillar III disclosure for the year ended 31 March 2017
Botswana Building Society Basel II Pillar III disclosure for the year ended 31 March 2017 March 2017 Contents 1.1 Table references 4 1 The 2017 Botswana Building Society Pillar III disclosure report covers
More informationLIQUIDITY COVERAGE RATIO DISCLOSURE
LIQUIDITY COVERAGE RATIO DISCLOSURE For the quarterly period ended September 30, 2017 Table of Contents Liquidity Coverage Ratio 1 High Quality Liquid Assets and other liquidity sources 3 Net Cash Outflows
More informationChapter 12 - Reporting and Analyzing Cash Flows. Chapter Outline
I. Basics of Cash Flow Reporting A. Purpose of the Statement of Cash Flows To report cash receipts (inflows) and cash payments (outflows) during a period. This report classifies cash flows into operating,
More informationProsperity Bancshares, Inc. & Prosperity Bank - Dodd-Frank Act Stress Test Disclosure
Prosperity Bancshares, Inc. & Prosperity Bank - Dodd-Frank Act Stress Test Disclosure Prosperity Bancshares, Inc. ( Prosperity ), with $22.1 billion in assets as of September 30, 2017 is a Houston, Texas
More informationEagle Financial Bancorp, Inc. (Exact name of registrant as specified in its charter)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
More informationInteragency Advisory on Interest Rate Risk Management
Interagency Management As part of our continued efforts to help our clients navigate through these volatile times, we recently sent out the attached checklist that briefly describes how c. myers helps
More informationLecture Materials BANK PERFORMANCE ANALYSIS AND CAPITAL PLANNING
Lecture Materials BANK PERFORMANCE ANALYSIS AND CAPITAL PLANNING David Koch President & CEO FARIN Financial Risk Management Madison, Wisconsin dkoch@farin.com 608-661-4217 August 11, 2017 BANK PERFORMANCE
More informationLIQUIDITY COVERAGE RATIO DISCLOSURE
LIQUIDITY COVERAGE RATIO DISCLOSURE For the quarterly period ended June 30, 2018 Table of Contents Liquidity Coverage Ratio 1 High Quality Liquid Assets and other liquidity sources 3 Net Cash Outflows
More informationSound Liquidity Risk Management Practices in Community Banks 1
Sound Liquidity Risk Management Practices in Community Banks 1 Funding growth through core deposits is largely a thing of the past. The advent of nonbank competition and the rise of third party funding
More information