June 13, 2022
Principal & Chief Risk Officer
Location: Boca Raton Resort, Boca Raton, Florida
Dan and Ryan will be speaking on the topic of Inflation and Residential Mortgage Exposure – Mitigating the Risks on Monday, June, 13 at 1:15 PM.
Over the prior two years, the depository industry experienced extreme growth in liquidity which resulted in meaningful shifts to balance sheet compositions. First, as loan growth in other asset classes stagnated for a period of time, residential mortgage pipelines flourished. For many, this mortgage engine provided a mechanism to utilize excess liquidity by placing these assets on balance sheet in contrast to selling in secondary markets. Second, the investment portfolio grew considerably in light of a lack of alternative methods to deploy cash, oftentimes into longer duration securities. As a result, several balance sheets now have positions or overall asset liability profiles exposed to inflation induced rising rates.
In this session, Dan and Ryan will explore hedging strategies that can help to mitigate these risks. In addition to reviewing guidance and opportunities presented by ASU 2017-12, they will also deconstruct FASB’s recently proposed “Portfolio Layer” hedging method, and provide a practical how to guide for use with residential mortgages. They will provide real life examples of strategies and transactions, mitigation benefits to the risks highlighted, and expand on proper management of hedge positions post transaction. Attendees will walk away with a considerably expanded knowledge of hedging in the current environment.
Merry and Rich will be speaking on the topic of Enabling Innovation through Digital Transformation on Tuesday, June, 14 at 8:15 AM.
The need for financial institutions to embrace technology and innovation has become increasingly apparent over the past two year. In order for financial institutions to achieve their strategic goals, the need to reexamine existing information technology infrastructures, third party relationships, and access to data is critical. With mounting pressure in the form of increased competition from large banks, fintech companies, and community institutions with advanced online capabilities, the time to explore digital transformation is now. This presentation explains the concept of digital transformation, as well as opportunities that can enable results, and threats if ignored.
This session will cover:
- Characteristics of an innovative information technology infrastructure
- How digital transformation compliments existing core competencies
- Threats caused by the failure to take action