Asset/Liability Management


Listen in as our analysts discuss an array of topics that may be affecting your institution, including recent market movements and industry-wide commentary. These briefings can serve as educational tools for both boards and management.

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July 23, 2019 —This week Jamie Sumner, chief analyst, reviews the 1Q GDP results in light of the coming release of the 2Q GDP Advance Estimate. The FRB of Atlanta’s GDP Now is projecting a GDP growth rate of 1.6% consistent with our expectation of a sub 2% growth rate. As for the Federal Funds Rate, the market is placing an 81.5% probability of a 25 bps reduction in the Fed Funds rate next week with an 18.5% probability of a 50 bps rate cut. Lastly, Jamie reviews the current curve compared to the yield curve one day before the Fed beginning its tightening period in December 2015.

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June 21, 2019

June 21, 2019 —This week Jamie Sumner, chief analyst, reviews the FOMC statement and the dot plot. With the “patient” wording removed the likely hood of a rate cut at the next meeting is heightened and the dot plot shows potential for up to three rate cuts in 2019. Additionally, inflation measures remained moderated with inflation expectations moving lower, causing downward pressure on interest rates.

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June 11, 2019

June 11, 2019 —This week Jamie Sumner, chief analyst, reviews May’s Employment Situation Report. The total jobs created was a disappointing 75 thousand. Retail, transportation & warehousing, information, and government jobs all posted reductions. The unemployment rate remained the same at 3.6% while the average hourly earnings grew at a year-over-year rate of 3.1%, below last month’s 3.2% growth rate.

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June 4, 2019

June 4, 2019 —This week Jamie Sumner, chief analyst, reviews the second estimate of the 1Q GDP along with inflation, interest rates, and deposit rates. Overall, the 1Q GDP came in slightly weaker than the initial estimate. As for inflation, the April reading of Core PCE moved up slightly while the inflation expectations remain low. The 10-year treasure moved down significantly over the past couple of weeks. This movement places the yield curve in an inverted position between the 10year and 3month maturities. While the treasury rates have come down, the deposit rates have continued to move up during 2019. Listen in as we delve into the topics this week.

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May 22, 2019

May 22, 2019 —This week Jamie Sumner, chief analyst, reviews the 1Q performance of the S&B Community Bank benchmark group. This group of banks includes banks with assets between $100 million and $5 billion. Overall performance slipped slightly as the return on average assets dropped one basis point to 1.11%. This slight decline was primarily the result of the net interest margin declining by ten basis points. The declining in net interest margin was due to a decline in the yield on earning assets coupled with an increase in the cost of funds. Listen in to hear more about the 1Q performance of the benchmark group.

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May 1, 2019

May 1, 2019 —This week Jamie Sumner, chief analyst, reviews May 1st Fed Statement along with the 1Q GDP release of the Advance Estimate. Overall the Fed continues to see the economy on pace with their expectations and will maintain their patient stance in terms of rate movements. While the GDP growth was higher than expected at 3.2% the individual components shed light on a cautionary note as the consumer section of the economy has weakened. Inflation continued to be in the moderate zone and expectations of inflation have moved down throughout April. As for rates, the long end of the curve is expected to remain around its current rate while the short end of the curve has the potential to move down throughout the next 12 months.

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