The Daily Dividend FMS Blog
The Daily Dividend

News, notes and insights from around the industry

FEBRUARY 21, 2017
Extra! Extra! New FMS Update now available!
By Mark Loehrke, Editor, Financial Managers Society

FMS UpdateBe sure to check out the latest issue of FMS Update for: 

 A Q&A with Robert Perry of ALM First on hedging interest rate risk

 A preview of The FMS Forum 2017 in Las Vegas

 A look at the results of a recent study on banking customers’ attitudes toward banking technology

 A wrap-up of recent movement on the FMS Board

All of these stories, plus a sit-down with Marshall Community Credit Union CFO Julie Zink in the Member Spotlight, are available in today’s issue. Enjoy!

 

FEBRUARY 17, 2017
Friday Hot Links
By Mark Loehrke, Editor, Financial Managers Society

In between all of the cake, balloons and laser tag to fete our founding fathers this long holiday weekend, be sure to carve out a few minutes to catch up with these solid think pieces from around the industry press.  

Check under the couch cushions
You might not need to read yet another story about net interest margin compression, but a piece like David Sweeney’s for Bank Director – with specific ideas of where on your balance sheet to look for additional basis points – may prove a little more useful.  

Rethinking risk
Over on Banking Exchange, meanwhile, Ed O’Leary uses lessons learned from the Uniform Bank Performance Report (and a pretty creepy little accompanying image) to explain how institutions can take a look at their risk from multiple angles.  

Hungry?
Speaking of risk – and, incidentally, the pursuit of additional margin in the form of loan growth as well – Ancin Cooley offers another reminder of how important it is for institutions to do an honest and complete assessment of their risk appetite in his piece for Banking Strategies.   
 
 
Check out what's new on The Daily Dividend.



FEBRUARY 16, 2017
Damage Control
By Mark Loehrke, Editor, Financial Managers Society

Most stories on the growing threat of cyber attacks tend to boil down to two main points:

(1) Institutions should do everything in their power to try and prevent them
(2) No matter how well prepared they are, every institution will be a victim at some point

Well, isn’t that encouraging? It’s not that all of these articles are wrong, but they might just as well lay it out as:

(1) Find wall
(2) Bang head against wall
(3) Repeat steps (1) and (2) above

Maybe that’s why a piece like this one from Patrik Heuri of Above Security in the American Banker that lays out some of the do’s and don’ts for institutions after they’ve endured a cyber attack seems like such a breath of fresh air. 

After all, while it’s not terribly fun to envision the day when your bank or credit union falls victim to a data breach or social engineering scam, if the general consensus among the experts is that it really is just a matter of time, then maybe one of the key pieces of advice floating around out there should be how to handle the aftermath of that seeming inevitability. Heuri includes the following suggestions in his piece:

DON’T try to keep it quiet – Slow or less-than-forthcoming communication with customers will result in even more reputation damage

DO stick to the facts – Avoid oversharing, especially where an attack’s breadth is concerned, since having to go back and revise damage estimates is almost always a bad look

DO learn from others’ examples – There are plenty of cyber attacks (both inside and outside the industry) to choose from, so start taking notes on the places that are getting their responses right

DON’T put your customers anywhere but first – Deal with customer concerns first and foremost, reassuring them early and often how you intend to handle this crisis and protect them from future attacks     

The common theme running through all of these suggestions? Be sure your cybersecurity preparations take into account not only how to avoid an attack, but how to deal with what happens if/when one takes place.   




FEBRUARY 15, 2017
Reading Shelf: ALLL and More
By Mark Loehrke, Editor, Financial Managers Society

In his new Perspectives piece Analyzing Your institution’s Portfolio Risk Within Your ALLL, Jamie Buzzerio of Sageworks outlines four ways that institutions can use their existing allowance-calculation data to better understand the risk in their portfolio and provide even more risk intelligence.

Give it a read, and while you’re browsing the FMS Perspectives reading shelf be sure to check out some of our other recent additions.  




FEBRUARY 10, 2017
Friday Hot Links
By Mark Loehrke, Editor, Financial Managers Society

Whether you’ve been busy this past week either stewing or gloating about your Super Bowl pick, here are some worthwhile stories from around the industry you may have missed. 

Strategic auditing
Few businesses are more attuned to the delicate balance of time and resources quite like a community institution, which is why setting priorities is so crucial. In her recent piece Auditing What Matters, Jane Seago examines how internal audit can do its part in this regard to bring real value to an organization.     

Broad thinking
This recent story on CFO.com explains how a CFO’s accountability for traditional financial metrics should extend to non-financial measurements as well, in order to better understand how KPIs from across the organization interact with and affect one another. 

Ladder-climbing
What attributes do accounting and finance professionals need to get ahead? According to a recent Robert Half survey – as summarized by Tim Hird on FEI.com – think less along the lines of long hours at the office and more in terms of “soft skills” like communication and collaboration.   
 
 
Check out what's new on The Daily Dividend.



FEBRUARY 9, 2017
FMS Webinar: IRR Modeling 101
By Tom King, Director, Education and Outreach, Financial Managers Society

FMS logoInterest rate risk scenarios play a key role in the ALM process, but the confusion surrounding the many different approaches and variables that go into IRR modeling often prevents many institutions from getting the most out of this important analysis.    

For those looking to sort through the mysteries of IRR, FMS presents a convenient primer on the topic on Thursday, February 16 at 2:00pm EDT with IRR Modeling 101: Overview of EVE/NEV and NII Simulation. During this 75-minute webinar, Deb Donaldson of Alpha-Numeric Consulting will provide an overview of EVE/NEV and NII IRR simulation modeling, touching on everything from regulatory requirements to common modeling mistakes to industry best practices.

A great educational opportunity for not only those new to the interest rate risk role in their institution, but also a timely refresher for those who have been in the game for awhile, this session is happening one week from today and is FREE for FMS members, so don’t miss it! (Not a member? Join today!)




FEBRUARY 8, 2017
Extra! Extra! New FMS Update now available!
By Mark Loehrke, Editor, Financial Managers Society

FMS UpdateAn early deadline – not to mention the lack of a sports section – prevented us from covering New England’s amazing comeback victory on Sunday, but there are lots of other good things to read about in the latest issue of FMS Update, including:   

Regulatory Roundup
Despite a lack of major new proposals in the works, a new study from Deloitte sees plenty to keep institutions busy in 2017. 

Questioning CECL
As CECL bears down, a handful of regulatory agencies have teamed up with an 18-page FAQ document covering the new accounting standard.

Call to Action
The revolution will not be itemized – or something like that. Ann Thomas offers a few thoughts on the newly streamlined Call Report. 

Sounding Board
If you or someone you know has had a seat on the FMS Board of Directors on the old bucket list, our Call for Nominations is a great step toward checking that life-goal box. 

All of these stories, plus the Member Spotlight, are ready and waiting in this issue.  As always, if you have an idea for a future Update story or a good subject for our Member Spotlight, be sure to let us know.



Contributors


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



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



Tom King
Director, Education and Outreach
Email: tking@FMSinc.org 


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