2022 Vol. 106 No. 5

Hoosier Banker 21 loan volume will keep up with market rates (in a rising rate environment) to increase yield and limit EVE risk? Yet at our next asset/liability committee/board meeting, the temptation to continue generating additional loan volume by not raising loan rates is too strong to pass up? We could end up with a significantly higher level of IRR than our ALM results originally showed. The same can be noted on the deposit side. So, ALCO decisions and ALM assumptions must be kept in line to ensure consistent accuracy of future strategic planning. We must always look to define, measure and then manage our risks. Hopefully, many of you already have this management process in place and are well prepared to handle this environment’s new challenges. For those who do not have this process in place, there is still time to align your internal systems to improve your institution’s ability to react quickly and correctly. That window of opportunity is closing, however, and now is the time to have those conversations. HB Year-Over-Year Percentage Change 2/10/2017 - 5/31/2022

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