Pub. 3 2022 Issue 2

Susan Sharbel brings over 35 years of expertise in the banking industry, with a focus on asset/ liability management and regulatory compliance. Prior to joining Abrigo, she was an ALM consultant leading ALM model implementations and managing the quarterly ALM process, support, and analysis for nearly 40 banking clients. As a Senior Advisor in Abrigo’s Advisory Services Group, Susan consults with financial institutions on their overall asset/liability management needs. Dave Koch is Director of Advisory Services with Abrigo and a lead faculty member of the Graduate School of Banking – Madison. Dave works with financial institutions on their capital planning, strategy development, loan & deposit pricing, and overall Asset/Liability management to meet the earnings and growth needs while managing regulatory concerns for his clients. Call me at 480.259.8280 Tracy Peterson Based in Ariz. covering Arizona, Colorado, Kansas and Missouri Together, let ’s make it happen. Leverage our large lending capacity, up to $20 million on correspondent loans. Our lending limits are high enough to accommodate what you need, when you need it. We do not reparticipate any loans. Member FDIC 31518 Commercial & ag participation loans Bank stock & ownership loans Bank building financing Business & personal loans for bankers Why choose Bell as your bank’s lending partner? thought out in advance for product and pricing approaches to manage marginal costs. They also need to act quickly on deploying these funds into appropriate assets to manage the margin. How will a financial institution know which customers will do what and how to take advantage of the opportunities presented? Understanding the makeup and behavior of depositors over time through various cycles is key. This understanding across cycles needs to include: • Attributes related to demographics, generational factors, and relationships • Market rate correlations to pricing • Rate sensitivity Armed with this knowledge, an institution can strategically develop appropriate pricing and mix strategies to take advantage of opportunities to grow the deposit base. Additionally, considering how long accounts are likely to stay on the balance sheet can help leaders identify how to best leverage their deposits to provide low-cost funding to finance strategic growth. Today, the asset/liability management process is front and center to ensure margins act — as so many hope and believe they will — as rates increase.  If the market trends downward for long, banks and credit unions worried about money walking out the door might be surprised to find that does not happen. Financial institutions may see yet another flight to safety from investors looking for certainty after enjoying a good run in the market. As a result, financial institution deposit levels may increase yet again — a surge on surge! 15 ISSUE 2 | 2022

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