IRR, Liquidity and Investment Strategies in a Challenging Environment

Tuesday, September 21, 2021

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1:00 PM CT

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2:30 PM CT

Program Description

Multiple rounds of government stimulus programs have left community banks flush with cash liquidity, and many are unsure how to deploy that liquidity given the uncertainty of deposit stability and loan demand going forward. These excess liquidity levels combined with historically low interest rates has led to record margin compression, and banks remain highly asset sensitive even though the Federal Reserve has indicated they will leave short-term rates unchanged until the end of 2022 or longer. Should banks continue holding record amounts of cash while waiting for loan demand to pick up? Or should they invest now to help fight margin compression that only threatens to be worse in 2022? This session will focus on the challenges banks face in managing liquidity, interest rate risk, and the investment portfolio in an extended low-rate environment, including specific strategies to meet those challenges successfully.

Agenda

    Topics will include:

    - An Economic Overview and Outlook of Federal Reserve Policy
    - A Look Inside Community Banking Balance Sheet and Performance Trends
    - Best Practices for Interest Rate Risk and Liquidity Risk Management Programs
    - How To Effectively Deploy Excess Liquidity to Achieve the Best Relative Value While Managing Risk

Presenter

Dale S. Sheller

Senior Vice President, The Baker Group

Dale Sheller is Senior Vice President in the Financial Strategies Group at The Baker Group. He joined the firm in 2015 after spending six years as a bank examiner with the Federal Deposit Insurance Corporation. Sheller holds a bachelor’s degree in finance and a master’s degree in business administration from Oklahoma State University. He works with clients on interest rate risk management, liquidity risk management, and regulatory issues.

 

Registration to the live session includes:

  • One online connection

  • CPE credit for registrant

  • Permission to reproduce the handouts and other written material for additional attendees at your location

Only registered attendees of the live session can obtain CPE credit

Credit Hours

Earn up to 1 hour of CPE

  • Level:

Intermediate

None

  • Prerequisites:

  • Advance Preparation:

  • Field of Study:

  • Instructional Method:

  • Length:

60 Minutes

Finance - Technical

None

Group Internet Based

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For more information regarding administrative policies such as concerns or refunds, call 312-578-1300. FMS is registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses. Complaints regarding sponsors may be addressed to: The National Registry of CPE Sponsors, 150 Fourth Avenue, North, Suite 700, Nashville, TN 37219-2417 Web: www.nasba.org.

Cost

  • Member Price:

  • Non-Member Price:

Complimentary

Complimentary