Analyzing deposit sources and managing expectations during the pandemic

first_img 2SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,James Lutter D. James (Jim) Lutter is the Senior Vice President of Trading and Operations at PMA Financial Network and PMA Securities where he oversees PMA Funding, a service of both companies … Web: pmafunding.com Details The pandemic has brought to light the need to review deposit sources and manage depositor expectation. With massive monetary and fiscal stimulus, financial institutions are inundated with excess liquidity at rates near zero. In addition, political unrest coupled with the uncertainty from the pandemic continues to suppress loan growth and hamper economic recovery. Financial institutions are increasing reserves in anticipation of asset deterioration and loan losses stemming from the economic shutdown.  As a result, regulators are closely monitoring the situation as we move into 2021 and want to see stress testing and contingency plans.Controls and safeguards stemming from the Great Recession have put financial institutions on better footing to weather the storm of the pandemic.  Yet, the pandemic is like nothing we have seen before, with severity and duration still uncertain. Financial institutions are required to develop clear funding strategies and incorporate stress scenarios (“the unexpected”) with an ongoing focus on liquidity position.  Currently, financial institutions are comfortable, from a funding standpoint, as they can access all the cheap money that they want through traditional channels. As a result, wholesale sources, such as listing services, FHLB advances and brokered deposits, are being furloughed for another day.The concern, similar to the Great Recession, is that cheap funding will lead to complacent behavior resulting in concentrations.  In the case of the pandemic, ongoing uncertainty is creating credit stress on assets and shortening duration and amount of depositor cash flows.  How well do you know your depositors, both retail and wholesale, and how will they react in a stressed situation? Questions to ask and record:What sources are you utilizing?What percentage of their portfolio/budget do you have in deposits?   How much of the portfolio reserve is not earmarked? Are your sources ready, available, and tested?Are you able to defend their utilization of this source with your examiners?The questions above are not inclusive, but provide a broad overview in which you can build depositor expectations based on a sound plan.  Currently, with everyone actively seeking to park money, it is tempting to take in large sums from known customers to meet primary needs.  However, without a cash flow, the funds should not be considered stable and there is flight risk. For known customers, look at balances pre-pandemic compared to now and setup tier pricing and limits.  Any balances over pre-pandemic levels should be priced to move off balance sheet. In addition, new depositors or funding sources should be at levels in which balances can be maintained (0-10% of depositor cash flow) with any excess priced to move off balance. By staying diversified and setting concentration limits based on depositor cash flow at the onset, this will help eliminate unexpected surprises during times of stress.center_img Who is your competition for various sources?What situation(s) could have a negative impact on this source? What are their credit criteria? last_img read more

Frances L. Manlief, 97

first_imgFrances L. Manlief, 97, Greensburg, Indiana, passed away on Wednesday, May 4, 2016 at the Aspen Place Health Campus in Greensburg.Born May 14, 1918 in Jennings County, Indiana, she was the daughter of Frank and Bertha (Baker) Montgomery.Frances was a 1935 graduate of Westport High School. She was a member of the Westport 1st Baptist Church.She was married to William D. “Bill” Manlief on October 30, 1937 in Carrollton, Kentucky and he preceded her in death on November 4, 1992.She is survived by six grandchildren, Mike (Teresa) Manlief, Tuscaloosa, AL, Ann Manlief, Greensburg, Vicki (Todd) Houk, Greensburg, Kelly (Scott) Johnson, Bluffton, Fred Manlief, Greensburg, Lisa (Phil) Menkedick, Greensburg; 14 great grandchildren, 4 great great grandchildren and one great great grandchild on the way; daughter-in-law, Marcia (Dick) Manlief Foley, Greensburg, Sister-in-law, Helen Speer, Greensburg, several nieces and nephews including Judy Brashars, Greensburg.She was preceded in death by her parents, husband; one son, Robert “Bob” Manlief; one brother, Virgil Montgomery; two sisters, Ruby Bruneau, Clara Mae Miller.Visitation will be held on Saturday from 9 to 11:00 a.m. at the Porter-Oliger-Pearson Funeral Home in Greensburg.Funeral Services will be held at 11:00 a.m. on Saturday, May 7, 2016 at the funeral home with Rev. Greg Redd officiating.Interment will be held in the South Park Cemetery.Memorials may be made to the Hospice of South Central Indiana.Online condolences can be made to the family at www.popfuneralhome.comlast_img read more

Crystal receives Pac-12 Player of the Week honors

first_imgJunior Nick Crystal was named the Pac-12 Player of the Week on Monday after recording two victories for the No. 8 men’s tennis team at ITA Kick-Off Weekend at Marks Stadium Friday and Saturday.The Men of Troy defeated No. 57 UC Davis 7-0 on Friday and No. 37 Tulane 4-3 on Saturday in the championship match to earn a sweep and a berth in the ITA National Team Indoor Championships on Feb. 12-15 in Charlottesville, Virginia.Crystal was a strong contributor to the successful weekend. The 41st-ranked singles player in the nation, he defeated No. 38 Alec Adamson on Friday with a dominant 6-1, 6-0 performance. That preceded a 6-1 doubles win along with Laurens Verboven over the Aggies’ Adamson and Adam Levie.Crystal helped the Trojans earn a sweep and a spot in the championship match against the Green Waves on Saturday, where Crystal, a junior out of Waccabuc, New York recorded a clutch win over Tulane’s No. 63-ranked Constantin Schmitz to give USC a 3-2 lead in the match. After being shutout 0-6 in the first set, Crystal came back strong, winning the next two sets 7-5 and 6-2. The Trojans wound up with a gritty 4-3 victory over Tulane.Crystal, in his third season at USC, also won a Pac-12 Player of the Week Award last year after another strong performance in the same tournament, winning two matches at the 2015 ITA Kick-Off Weekend. He went 10-5 in singles as a freshman and as a sophomore, earned All-Pac-12 Honorable Mention honors and was named to the ITA National Team Indoor Championships All-Tournament Team. The Trojans play Florida on Saturday in a Pac-12/SEC showdown at UCLA.last_img read more