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Posts in category "Performance Management"

07/30/2019

Interest rates, market instability, and what it all means

“Turbulent” is probably the safest way to describe the interest rate landscape for financial institutions in 2019. Opinions about upcoming rate movements have taken a rollercoaster ride over the past several months. This is based on comments from Federal Reserve Chairman Jerome Powell, and the Federal Open Market Committee meeting again this week. We will…

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07/25/2019

Reference rates and the LIBOR sunset: Cause for concern?

In June 2017, the Alternative Reference Rates Committee (ARRC) selected the Secured Overnight Financing Rate (SOFR) as the replacement for USD LIBOR. SOFR is based on the overnight interest rate received for lending cash against Treasury securities. These debts are backed by the collateral of US Treasuries, making SOFR a secured rate. Futures and overnight…

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05/01/2019

Millennials: An Untapped Resource to Drive Success

This is a guest post by Shea Ferland, PHR, SHRM-CP, SVP | HR Manager, FirstCapital Bank of Texas. With millennials poised to outpace baby boomers as the largest generation and expected to represent 50 percent of the workforce by 2020, it’s more vital now than ever to prepare your millennial employees for the leadership roles…

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04/24/2019

Why banks should institute rate floors if they haven’t already

Ah, the ever-changing economy. One day interest rates are up, the next day they’re down. Not exactly a roller coaster, but it’s at least a merry-go-round. Those rates impact the mortgages banks offer to their customers, adjustable rate mortgages most of all. Customers choose ARMs because they’re betting the rates aren’t going to go up…

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04/22/2019

The yield curve is inverting. That’s signaled recession since the ’60s. Now what?

Can we predict the future by looking at the past? When you’re talking about finance, the answer may well be yes. Every recession we’ve had since the 1960s occurred about a year after an inversion of the Treasury yield curve. And, it looks like that’s starting to happen right now. But it’s not time to…

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03/19/2019

Which accounts are helping your NIM, and which are hurting?

Net Interest Margin (NIM) makes the world go ’round in banking. Most everyone in finance knows it measures the difference between the interest banks pay and the interest they receive. Last year, the average NIM for U.S. banks was 3.2 percent, which was up from a record low of 2.95 percent in 2014, but down…

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03/18/2019

Three things you should be doing for your board of directors

We ask a lot of our boards—sometimes more than the pay or liability risk would warrant! Fortunately, most community banks have board members who are personally engaged and invested enough to go the extra mile for your institution. To my knowledge, no one has studied this, but I expect that the higher the board’s engagement,…

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