Preparing for Rising Rates: Balance Sheet Strategies in a Changing Environment

Recorded On: 02/23/2022

The Fed’s hawkish policy pivot revealed in the most recent FOMC minutes is good news for the industry as the market anticipates earlier Fed actions causing higher rates along the curve. Financial institutions are balancing the earnings challenges in today’s low rate environment against the fear by many of inflation and multiple Fed hikes ahead. Difficult balance sheet decisions will revolve around excess liquidity strategies, preparing for heightened deposit competition and potential disintermediation, and comfort level to add longer-term assets amid rising rates, among other challenges.

Please join Darling Consulting Group for a 75-minute webinar that will take the fear out of rising rates and highlight strategic opportunities for your ALCO to capitalize on in 2022.

Highlights of the webinar will include:

Interest rate risk clarity is key: Understand and quantify the impact of the timing, magnitude, and ultimate yield curve shape as Fed hikes (use history as your guide)
Capitalizing on rising rates: Strategic opportunities to consider and avoid with excess cash and cash flow. Prepare now for unrealized losses and execute your game plan without concern!
Deposit Game Plan: Lessons learned from the 2016-2018 cycle, lag ability and when we make our first move, minimizing cannibalization risk on promotions, assessing an offensive strategy (i.e. growth) vs. defensive (i.e. retention)
Loan Pricing and Product Update: Effective pricing and product structures explored to ensure we retain and grow best credits while being mindful of rising rate risk…negotiation tactics revealed
Rising rate risk insurance options explored including wholesale, retail, and the important role derivatives can play for effective risk management

Joe Kennerson

Managing Director

Darling Consulting Group

Joe is a Managing Director at Darling Consulting Group, where he works directly with senior management teams on building customized balance sheet strategies to improve earnings and manage risk. Joe strives to be an expert in overall Asset Liability Management and educates ALCOs in the inevitable balance of financial performance and regulatory appeasement. In 2021, Joe spoke at 28 industry associations reaching nearly 3,000 bankers. He is an expert at helping bring clarity to the complex and delivers a high level of energy to his ALM presentations.Joe has been with DCG since 2005, where he has benefited from working with nearly a thousand ALCOs throughout the country on ALM and strategic initiatives. He lives in Boxford, MA with his wife and two children and has been an active member of the Big Brothers Big Sisters program. Joe is a graduate of the University of New Hampshire with a degree in finance.

Eric Poulin

Account Manager

Darling Consulting Group

Eric is an Account Manager at Darling Consulting Group where he assists financial institution executive teams to bolster their asset liability management (ALM) process. In this role, he provides comprehensive solutions in various areas such as interest rate risk, liquidity risk management, and capital. Additionally, Eric is well-versed in the areas of deposit strategies, regulatory support, and executive-level education.

Eric began his career at DCG in 2014 as a financial analyst and has also worked closely with the implementation, development, and education of DCG’s decision-support tools (Deposits360°^® and Prepayments360°™). He currently lives in the Seacoast area of NH with his wife and is a graduate of the University of New Hampshire with a degree in economics.

Participants will earn 1.0 CPE credit
Field of Study: Management Services

Additional Information
Prerequisites: No prerequisite and/or advance preparation is required
Who Should Attend: This session is designed for all levels, including CEOs, Presidents, CFOs, Directors, CROs, treasurers, risk managers, model development and model risk practitioners, auditors, senior management, and analysts
Advanced Preparation: None
Program Level: Basic
Delivery Method: Group Internet Based

Cancellations and Complaints
For more information regarding complaints and/or program cancellation policies, please contact Stephanie Pitman at (978) 463-0400 ext. 174.

Darling Consulting Group, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) 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 for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.