The Daily Dividend: FMS Publications

News, notes and insights from around the industry

SEPTEMBER 19, 2017
Fall Reading
By Mark Loehrke, Editor, Financial Managers Society

fall readingNow that summer is over and school is back in session, it’s a perfect time to catch up with some of the great new pieces that have been added to our Perspectives section over the past couple of months.

Just within the past week, we’ve posted a brand-new article on managing mortgage pipeline risk from Robert Perry of ALM First, as well as the results of our latest FMS Quick Poll on ALCO participation.

Going back a little bit earlier in the summer, you’ll also find insightful pieces you may have missed on model validations, building your investment portfolio and modeling assumptions

So get started on your fall reading list today!
 

SEPTEMBER 13, 2017
Getting Answers
By Hilary Collins, Assistant, Publications and Research, Financial Managers Society

cecl centralRegulators, assemble!

The Board of Governors of the Federal Reserve System, the FDIC, the NCUA and the OCC have gotten the band back together to add fourteen new questions and answers to their previously released CECL FAQs. This is the group’s first update since December 2016, and the new information sheds some light on several issues with which institutions may be grappling as they prepare for the new standard.

Some of the new areas covered include:

The data institutions need to implement CECL
The definition of a PBE, and how PBE status affects implementation of the new standard
The continued use of fair value of collateral to measure expected credit losses for regulatory reporting purposes when a financial asset is considered collateral-dependent

We’ve added these updated FAQs to CECL Central, our member resource for all things CECL. Be sure to stop by often, as we continue to update the portal with new expert analysis and commentary!
 

SEPTEMBER 11, 2017
FMS Quick Poll: ALCO Participation
By Mark Loehrke, Editor, Financial Managers Society

alco compositionOur latest Quick Poll was inspired by a recent member-authored query on FMS Connectwho attends your ALCO meetings?

We ended up hearing from 185 FMS members, and the results ranged from the predictable (CEOs and CFOs are pretty much automatic invites) to the eyebrow-raising (only about half of respondents include a Board representative in their ALCO sessions). We were also curious about how often your ALCO meets. 

Check out all of the numbers and analysis in our new Perspectives piece and look for another Quick Poll coming soon!
 

AUGUST 29, 2017
Fall into FMS forward
By Hilary Collins, Assistant, Publications and Research, Financial Managers Society

fms forwardAutumn approaches, and so does your September/October issue of FMS forward. Check your inbox or flip through the digital version for the following stories:

Did you know the biggest cybersecurity threat may be coming from within your institution? Learn about the human element of cybersecurity and how to protect your organization and your customers.

At its best, the Board of Directors at your institution should provide a long-term strategic vision and prudent, well-reasoned decisions. Discover a few principles for building the kind of board that will deliver great results.

Marijuana legalization seems to be sweeping the nation, yet it’s still difficult for dispensaries and other marijuana-related businesses to find a financial institution. Is banking this growing industry worth the risks?

For once, what happened in Vegas did not stay in Vegas. Attendees brought home new wisdom and insights from The FMS Forum 2017. Read our recap and register for The 2018 Forum.

You’ll get all this and more in the latest issue of FMS forward. (Not a member? Join today!)

AUGUST 21, 2017
CECL Central: A Growing Resource
By Hilary Collins, Assistant, Publications and Research, Financial Managers Society

fms publicationsA little over a month ago, we unveiled CECL Central, a convenient and comprehensive new member resource that will expand to include new expertise, information and commentary as we continue to approach the new standard. If you haven’t had a chance to visit yet, we encourage you to check it out, and if you’ve already been, here are a few new additions that you may not have seen:

Plante Moran takes a look at how to create a CECL implementation timeline that is perfectly attuned to the needs of your institution in the new FMStv episode Calculating a CECL Methodology
From forecasting to estimates, Preparing for the New Credit Loss Model from PwC is a great primer on getting ready
KPMG takes a look at the benefits and drawbacks of using a discounted cash flow approach for CECL in To Discount or Not to Discount
For those institutions looking to enlist the help of a third-party vendor for their CECL preparations, Sageworks has a handy Vendor Due Diligence Checklist to consult

As you can tell, CECL Central is always growing, so be sure to bookmark it to make sure you’re up to date! (CECL Central is available exclusively to FMS members. Why not join today?)
 

AUGUST 10, 2017
Modeling Two-Step
By Mark Loehrke, Editor, Financial Managers Society

Whether your institution is considering a new model or just thinking about checking in on one you’ve been using for awhile – be it ALM, IRR or some other variation – you’ll definitely want to review two recent additions to our Perspectives section.

In “Understanding Requirements for Model Validations,” James Jarrett of Baker Tilly Virchow Krause explains the factors that encompass a proper validation process, and explains why model validations are a good idea for every institution – not just those that are required to perform them.

Elsewhere, Jerry Clark of ZM Financial Systems covers one of the keys to ensuring your model is giving you the output you need in his recent piece “Identifying Defendable Modeling Assumptions.”
 

JULY 19, 2017
Reading Shelf: The Latest Model
By Hilary Collins, Assistant, Publications and Research, Financial Managers Society

If you’ve been questioning your assumptions lately, our new FMS Perspectives piece may provide some answers for you. 

Jerry Clark of ZM Financial Systems teaches you how to reach conclusions you can stand behind while managing risk and maximizing profitability in “Identifying Defendable Modeling Assumptions”. He offers straightforward, actionable advice on prepayments, structured cash flows, and more. 

After reading this, you won’t find yourself tongue-tied when an examiner asks you to defend your assumptions!
 



Contributors


Mark Loehrke
Editor and Director, Publications and Research
Email: mloehrke@FMSinc.org 



Danielle Holland
President/CEO
Email: dholland@FMSinc.org 



Autumn Wolfer
Director, Membership and Marketing
Email: awolfer@FMSinc.org


Hilary Collins
Assistant, Publications and Research
Email: hcollins@FMSinc.org