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The Asset Extension Dilemma: Improve Margin with Confidence - FOR CREDIT UNIONS

On-Demand Webinar (March 31, 2021)

Eric Poulin

Senior Consultant

Darling Consulting Group

Eric is a Director at Darling Consulting Group where he assists community financial institutions with the delicate balance of optimizing earnings while prudently managing risk. In this role, he works collaboratively with ALCOs to develop comprehensive strategies related to all aspects of Asset Liability Management. Eric strives to distill complex concepts into actionable intelligence and delights in bringing education to the industry.

Joe Kennerson

Managing Director

Darling Consulting Group

Joe is a Managing Director at Darling Consulting Group. In this capacity, he works directly with financial institutions by providing solutions for their asset liability management process in the areas of interest rate risk, liquidity risk management, ALM modeling, regulatory compliance and executive-level education. He is a frequent speaker and author and directly advises clients in all aspects of ALM.

The yield curve is steep and excess cash levels are high, presenting an opportunity to slow down the aggressive margin pressure that credit unions are experiencing. However, there is natural apprehension to extend assets at historically low rate levels. This is creating a real-time challenge for credit unions: Extend assets to take advantage of yield curve steepness we haven’t seen in nearly four years, or patiently wait for loan volume and rates to continue to pick up, but risk rates staying flat (or down) while cash levels continue to build. Which scenario poses more risk for your credit union?


The good news is that many credit unions have a strong core funding base and a relatively balanced asset portfolio – a risk position that may allow for some asset extension. The bad news is that traditional risk measurements have left a stigma associated with asset extension (e.g., NEV, long-term assets/assets ratio). It’s time to dispel the stigma and take control of your balance sheet.

 

Darling Consulting Group’s Joe Kennerson and Eric Poulin will take you on a journey to build a balanced interest rate risk management process that focuses on developing strategies to improve earnings while managing risk.


Key highlights of this webinar include:


  • Taking advantage of the steep yield curve

  • Utilizing the right interest rate risk management tools

  • How to use your strongest weapon – core funding – to support your strategy

  • Revisiting the age-old battle of NII simulations vs. NEV

  • Case studies that support earnings improving strategies while balancing risk

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