Bank Board Strategic Business Planning Presentation:
2024-2026 “Challenge Brings Opportunity”
Objectives for the Presentation:
- To provide an understanding of the current and anticipated operating environment which community based financial institutions face in the second half 2024/2025/2026 and the related key elements that institutions must consider and understand
- To present the primary challenges which come out of this environment in the areas of:
- Liquidity
- Profitability Drivers
- Business plan focus looking out over 12 months and beyond
- Rates versus Relationship: is it an either-or?
- Clarity of brand for the long term relevant to the current and anticipated demographics of the bank’s markets
- To understand key measures of “performance for community-based banks”
- Balance sheet mix
- Pricing focus
- Deposit structure
- Loan structure
- Sources of income
- Market positioning
- True value proposition
- To compare these key measures with bank’s market and business model to:
- Ensure and maintain competitive strength from a financial and “reach” standpoint
- Fulfilling the complex “community based” vision mandate
Presentation Agenda:
- Current and anticipated operating environment
- Economic/rate outlook
- Demand/focus for lending
- Mix and volume expectations
- Funding/cashflows outlook
- Depositor reliance and/or wholesale resource
- Pricing
- Yield curve expectation
- Community banks as compared to Treasury
- Potential variances for funding mix/rate management (e.g. Beta studies, prepayment speeds, integrated cash flow forecast etc.)
- Asset management pricing/profitability perspective
- Community banks as compared to Treasury
- “Margin” management and pricing/measurement methodology
- Performance metrics relevant for the environment and outlook
Second half – 2024:
- stabilize margin compression
- Manage current and anticipated liquidity
- Capital management
- Strategic planning
2025 and beyond:
- Understanding the markets and environment
- What’s the same, what has changed
- How is the bank strategically positioning for the present and future
Material to be referenced during presentation: (provided at presentation to ensure most current data etc.)
Yield curve
Rate forecast
Third party peer focus performance trends (as of second quarter 2024 –with context)
Interest Rate Risk/Business Plan B/S and Income statement reporting with select support data (source: ALM reports, bank and third party sourced data etc.)
Relevant industry trend data and observations
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