The Daily Dividend: FMS Publications

News, notes and insights from around the industry

NOVEMBER 14, 2017
Fifteen Years Later
By Mark Loehrke, Editor, Financial Managers Society

One of the big trends in popular music in recent years has been veteran bands going back to revisit a seminal album from their discography and play it in its entirety in concert. 

Perhaps this wave of nostalgic rockers was the inspiration for John Behof of Performance Trust to dig into his archives to unearth a paper he wrote for FMS back in 2002 on the Ten Biggest Mistakes Portfolio Managers Make. Unfortunately, however, this discovery turned out to be not just a pleasant blast from the past for John, but a reminder that many of those mistakes he was writing about fifteen years ago are, in many cases, still being made by community institutions today.

That’s why he decided to revise his original paper for a special 15th anniversary edition featuring present-day commentary on what he believes has – and hasn’t – changed over the ensuing decade and a half. Whether you’re concerned your institution may be making some of these now-classic portfolio mistakes or you just love a good throwback from the not-so-distant past, it makes for a fascinating read in 2017. 
 
OCTOBER 30, 2017
FMS Research: The Growth Outlook
By Hilary Collins, Assistant, Publications and Research, Financial Managers Society

FMS Research The Growth OutlookThough facing a variety of challenges, from ongoing regulatory demands to increasing competition, community institutions are nevertheless optimistic as they look to the future.

In the new FMS research piece The Growth Outlook for Community Institutions, we take a closer look at what’s behind this positive viewpoint, as 400 leaders of community banks and credit unions assess the importance of ten potential growth factors for their institutions. From technological innovation to new products and services, find out what they see as the factors that will help their institutions not only survive, but thrive.
 

OCTOBER 25, 2017
An Early Holiday Gift: FMS forward
By Mark Loehrke, Editor, Financial Managers Society

An Early Holiday Gift: FMS forwardThe November/December issue of FMS forward is here, and while it may not include the ubiquitous holiday gift guide that most magazines proffer at this time of year, you can still enjoy some informative and insightful stories in both the print and digital version, including:

Data is a huge part of almost everything banks and credit unions do these days, and this month’s tandem cover stories look at the growing importance of data analytics for community institutions and the major role that data should be playing in your CECL preparations 

Speaking of CECL, the new credit loss standard is but one of several major accounting changes that FASB Board member Hal Schroeder discusses in an exclusive interview with FMS

If you feel somewhat helpless when it comes to contract negotiations with your third-party vendors, you’ll want to check out the tips we got from two industry pros to help tip the balance of power back to your institution  

Read all about it in the latest issue of FMS forward

Not a member? Give yourself a gift for 2018 and join today!
 

OCTOBER 19, 2017
A One-Stop CECL Shop
By Mark Loehrke, Editor, Financial Managers Society

A One-Stop CECL ShopCECL Central has been up and running for FMS members as a convenient and comprehensive warehouse of CECL expertise, information and commentary for several months now. But even if you’ve visited at some point over that span, it may be worth another look to check out some of the pieces we’ve recently added to the collection, including:

For those just getting underway, A Practical Guide to Beginning the Transition to CECL from SS&C Primatics offers a nice overview of the things you need to be thinking about to get ready 

In Where Credit is Due – CECL Preparation, Data and Strategy, Fiserv discusses how institutions may be able to capitalize on the insights revealed by the data they’re gathering for CECL 

Wipfli also checks in with two pieces on data considerations, exploring the benefits and drawbacks of both the Cumulative Loss Rate and Vintage Loss Rate methodologies

Speaking of data, Understanding Discounted Cash Flow as an Approach for CECL is the topic of a new Sageworks piece for FMS Perspectives

As your institution’s preparations continue to heat up, be sure to check CECL Central often for additional insights like these. And for even more information on the new standard and what your institution needs to do to be prepared, make plans to join FMS and KPMG in Baltimore next week for our one-day CECL Share Forum.
  
OCTOBER 11, 2017
Industry Snapshot
By Mark Loehrke, Editor, Publications and Research, Financial Managers Society

What was happening in the investment portfolios of more than 5,000 community institutions in the third quarter of 2017? Find out now in the latest edition of the Community Bank Investment Index (CBI Index) from PFM Asset Management LLC.

Some of the more notable points from the third-quarter report:

  • Portfolio yields took a step back for the period ending August 15, as yield to maturity slipped eight basis points from the previous quarter to stand at 2.26% – still much higher than the year-earlier rate of 1.78%
  • Portfolio durations shortened to 4.06 years, compared to 4.11 in the second quarter
  • Total dollars invested in bank portfolios dipped by about 2% to $570 billion for the period across all asset classes, with investments in U.S. Treasuries taking a dive of 15% ($3 billion) and commercial mortgage-backed securities registering an uptick of 1.4% ($400 million) for the quarter

Dig deeper into the data in the third-quarter CBI newsletter, now available on the FMS Resources page.


OCTOBER 10, 2017
FMS Research: Confronting Challenges
By Hilary Collins, Assistant, Publications and Research, Financial Managers Society

One of the first things we wanted to find out in our recent research study Community Mindset: Bank and Credit Union Leadership Viewpoints 2017 was which aspects of their business were keeping community institution executives up at night.

In the brand new FMS research piece Confronting Challenges, we take a closer look at these issues by breaking down what community bank and credit union leaders see as the top industry challenges affecting their institutions. Accounting for the responses of 400 executives from institutions ranging from $200 million to $5 billion, this piece is a great opportunity to see how the challenges facing your own institution stack up against those of your peers in the industry – from regulatory demands and technology to the interest rate environment and competitive pressures.




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!
 



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