Interest Rate Risk Seminar (VIRTUAL)
One 3-Hour Session
Covid-19, economic recession, loan modifications and the slow and uneven business reopening are all causing risks that were not on any banks radar screens when 2020 started. Like the Great Depression, the pandemic will leave an indelible imprint on people. Is your bank ready? FinPro will discuss how to prepare from an interest rate risk perspective, stratify, analyze and stress test your loan portfolio in addition to dealing with all the excess liquidity on banks’ balance sheets. Banks can adapt and manage through these volatile and uncertain times while preparing for a long-term future. FinPro will discuss the demographic, economic, technology, regulatory, political, and infrastructure shifts that will occur in the near future. Understanding these shifts will be required to successfully navigate the new community banking “normal.”
In the wake of the Covid-19 pandemic, community banks are flush with liquidity and are understandably unsure how to invest that liquidity with rates near record lows. Everywhere they look there are challenges before them. They consider investing short and waiting for rates to go back up, but they are already heavily asset sensitive and the Federal Reserve has indicated they want to leave short-term rates unchanged through the end of 2022. They consider investing in municipal bonds, but are worried about the impact of Covid-19 on municipal credit risk and the potential for higher defaults in that sector. They consider investing in mortgage-backed securities, but worry about the impact of rising delinquencies and forbearance on their cash flows. They consider Agencies and CD’s but the yields are practically zero and would not earn much more than at the Fed. How should community banks address these challenges while trying to stay fully invested? The Baker Group will present specific interest rate risk and investment strategies to overcome these challenges and allow banks to successfully invest their excess liquidity to maximize performance while also managing acceptable risk tolerances.
Scott Martorana is an Executive Managing Director with FinPro. Scott, who joined FinPro in 2003, leads and manages the consulting and investment banking divisions of FinPro.
Scott is a capital markets expert with a focus in mergers and acquisitions, stock valuations and fairness opinions. He has been involved in buy-side and sell-side M&A transactions, bank recapitalization transactions, community bank capital raises, valuation analyses and strategic reviews. Strategic analysis and branch divestitures/acquisitions are other areas of experience.
Scott has been involved in consulting engagements for nearly all FinPro consulting services but has particular expertise in strategic planning, value creation, enterprise risk management, de novo bank formation, and asset/liability management.
As part of his work for the firm, Scott has conducted numerous Board of Director and Management retreats, focusing on strategic initiatives and capital markets activities. Scott has also spoken at numerous industry conferences and been quoted in and written several articles for industry publications. Scott is also on the faculty of the Graduate School of Bank Investments and Financial Management at the University of South Carolina.
Prior to joining FinPro, Scott worked as a systems engineer at ITT Industries developing tactical network radio systems for the Department of Defense. While at ITT he was granted a patent for a radio system data screening algorithm.
Scott earned a B.S. in Mechanical Engineering from Johns Hopkins University. In addition, Scott is a graduate of the three-year ABA Stonier Graduate School of Banking program at the University of Pennsylvania.
Scott holds series 7, 24, 79 & 63 licenses.
Ryan Hayhurst joined The Baker Group in 1991 and is now a Managing Director and Manager of the Financial Strategies Group. Ryan oversees the design and implementation of investment and asset/liability strategies for financial institutions and regularly presents educational seminars nationwide, with a focus on investment and interest rate risk management. He is a frequent speaker at financial institution conventions and investment conferences, and has served as a faculty member of several national and regional banking schools. Ryan holds a Bachelor of Business Administration degree from the University of Oklahoma.
Registration for this seminar is $245 per attendee.
All cancellations will be charged a $25.00 administrative fee. Cancellations received less than 72 business hours before the program will be charged a $75.00 administrative fee plus any additional fees associated with the training. Substitutions are allowed prior to the beginning of course.