Advanced Deposit Boot Camp
Learning Objectives
This four part program builds on the materials presented in Deposit Boot Camp, examining key issues in greater depth, and introducing new concepts. The first session in this four part series will examine how the actual behaviors of non-maturity deposits vary from contractual behaviors and how an institution can take advantage of the actual behaviors in maximizing franchise value and managing funding costs while growing deposits. Specifically the behaviors examined will include how institutions respond with pricing to changes in market rates, and the impact on actual retention of core deposit accounts.
Session two will move to how pricing and product strategies can be designed to grow core deposits while managing funding costs, and maximizing franchise value. This session will focus on a how the rich array of features in non-maturity deposit products can be used in designing segmentation strategies aimed at different constituencies. It will also review core deposit tradeoffs with substitutes available in the wholesale markets.
In session three, focus will shift to tradeoffs between CD funding and wholesale funding. A variety of wholesale funding options will be reviewed with their particular strengths and weaknesses contrasted. Sources examined will include FHLB advances, the brokered and rate board CD markets, specialized markets like CDARs, and others.
Session four will focus on ongoing deposit management including tracking of decay rates, pricing betas, designing tier structures, back testing marginal costs of funds raised, and tracking price-demand relationships. A number of case studies will be presented showing how tracking and back-testing of strategies deployed in one quarterly review period lead to strategy modifications in future periods.
Actual data from the Farin & Associates iPrice database on customer and competitor pricing response to movement in market rates, and customer retention will punctuate points made in both sessions.
Program Content:
Specific subjects include:
- Comparison of contractual features of core deposits as compared to actual behaviors and their effect on net interest margins and franchise value
- Measurement tools for measuring core retention and pricing response
- Use of core deposits as interest rate risk hedging tools
- Industry decay rate benchmarks as compared to institution-specific assumptions
- The marginal cost of paying up on existing core deposits as compared to segmentation and the decision relationship to core deposit substitutes in the wholesale markets
- Core deposit features and characteristics that offer potential for segmentation strategies and examples of deployment of these strategies
- Tradeoffs between CD funding and a variety of wholesale funding options including FHLB advances, brokered and rate board CDs and specialized markets
- Tracking, evaluating, incorporating knowledge gained from price/demand relationships into future strategies
- Developing tiered pricing strategies
- Cannibalization analysis and back-testing of marginal costs of funding raised
Program Prerequisites: CEO, CFO, controller, lenders, retail officers, and ALCO teams
Program Level: Intermediate
Advanced Preparation: We suggest taking Deposit Boot Camp before attending.
Cost, Dates & Registration Information:
This webinar consists of four 100-minute sessions offered through WebEx. Since the
Sessions are delivered using state-of-the-art distance education tools, you incur no travel costs!
People can attend without ever leaving the office!
This 4-course session costs $795.00
Attendees will also have access to a resource page containing recordings of all sessions and reading material designed to supplement materials presented in the course.
Upcoming Dates:
Instructional Method of Delivery: Group Internet Based
Farin & Associates, Inc. uses WebEx for online delivery. It has grown into the worldwide leader in online meeting applications, with 64% market share.
CPE Credit
Farin is able to offer 8 CPE credits per internet connection/paid registration. You must sit through the classes and be an active participant to obtain these credits. They are based on 1 credit per 50 minute increment.
Refunds
Refunds will be issued in the form of a credit to be applied to a future FARIN educational event.
For more information regarding refunds, complaints, and program cancellation policies, or any other matters, please contact Jackie Myers at 800.236.3724 or registration@farin.com.
Farin & Associates 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 addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web Site: www.nasba.org