Understanding Bank Performance is designed to help bankers understand the fundamentals of the industry. This program allows financial institutions to provide a foundation for new and experienced bankers looking to grow their careers. This program was designed with input from bankers, trainers, and other experts in the field to ensure students can understand and put into practice this subject matter.
Built as a virtual program, UBP offers unique flexibility, allowing your organization to implement it in the way that best fits your culture, whether it becomes part of your onboarding process or for management training.
8 Sessions included in this package-dates and times listed below.
Understanding Bank Performance Part 1: Fundamentals of Financial Statements I
February 14, 2023, 11:00 am EST
This session will focus on the basics of a bank’s balance sheet. By analyzing a sample bank balance sheet, participants will demonstrate an understanding of the institution’s primary sources of earning assets, funding liabilities and total capital. Participants will practice identifying potential risks and limitations on financial performance and will leave with an understanding of how leverage, risk management and asset allocation impact earnings and performance.
What You’ll Learn
- Develop a clear understanding of the relationship how assets, liabilities, and capital interrelate
- Describe the different asset classes held by the bank
- Identify primary funding sources
- Understand risk-based capital
Understanding Bank Performance Part 2: Fundamentals of Financial Statements II
February 16, 2023, 11:00 am EST
Participants will analyze a sample bank income statement and relate it to the institution’s balance sheet. This session will address the differences between interest and non-interest income. Participants will learn how to analyze and explain a bank’s overall cost structure based on its balance sheet and income statement. The material covered will empower participants to interpret a bank’s financial statements and understand cash flow on both sides of the balance sheet.
What You’ll Learn
- Identify components of a bank’s income statement
- Identify how a bank generates revenue and earnings
- Discuss the major cost drivers
- Connect the balance sheet with the income statement
- Identify how risk management strategies impact overall performance
Understanding Bank Performance Part 3: Credit Metrics & Credit Quality
February 22, 2023, 11:00 am EST
Participants will examine credit metrics looking at typical types of loans, as well as specialized lending and the importance of credit quality. Participants will also examine risks related to asset mix concentrations to assess methods to achieve the greatest return at a given level of risk tolerance.
What You’ll Learn
- Understand the ratios that define how a loan portfolio is performing
- Discuss the pros and cons of different portfolio types
- Identify how risk is quantified and measured
- Explain regulatory limits on portfolio concentrations
Understanding Bank Performance Part 4: Funding & Liquidity
February 23, 2023, 11:00 am EST
How efficiently a bank funds its earning assets is one of the single largest determinants of financial performance and is a critical component of an institution’s overall business plan. Participants will examine how funding strategies impact a bank’s overall liquidity and operational costs. Building on key concepts developed in earlier sessions, participants will arrive at a detailed understanding of how banks fund themselves and how various factors come into play in this process.
What You’ll Learn
- Develop a clear understanding of liquidity in banks
- Describe how banks manage liquidity
- Discuss funding strategies
- Analyze the capital position and the impact it may have on financial performance
Understanding Bank Performance Part 5: Capital & Bank Investments
February 28, 2023, 11:00 am EST
This session focuses on capital components, strategies, attributes, structure and other factors that drive value. Participants will consider these topics from several different perspectives, first learning the basics and then progressing through increasingly complex analyses of the subjects covered. By considering how a wide array of variables interact with one another to affect performance, participants will arrive at a dynamic understanding of the role of capital in banking.
What You’ll Learn
- Develop a clear understanding of capital through analysis of the balance sheet
- Discuss capital instruments, retained earnings, dividends, share repurchase
- Identify and discuss the importance of capital ratios, regulatory requirements and valuation
- Identify shareholder’s risk in bank investment, merger, and acquisitions (M&A) activity
Understanding Bank Performance Part 6: Risk & Return
March 2, 2023, 11:00 am EST
Financial performance is a function of leverage, earnings, and expenses. As banks make decisions affecting each of these three factors, they also increase or decrease the risk of loss to shareholders and may impact the deposit insurance fund. Participants will gain a broad understanding of risk considerations as they relate to a bank’s financial performance.
What You’ll Learn
- Discuss risk management expectations
- Understand various risks to your bank and mitigation strategies
- Apply risk and return examples using scenario-based opportunities
Understanding Bank Performance Part 7: Capstone Overview
March 7, 2023, 2:30 pm EST
The capstone overview session will bring together the core lessons from previous sessions and prepare participants to test their mastery of the topics covered. Key performance indicators will be reviewed and capstone assignment criteria will be shared. Participants will be expected to assess various aspects of the bank’s performance and make suggestions related to increasing performance and managing risk.
What You’ll Learn
- Discuss key performance indicators
- Describe the different asset classes held by the bank
- Describe the bank’s general funding strategy
- Analyze capital position and the impact it may have on growth
Understanding Bank Performance Part 8: Proforma Capstone
March 9, 2023, 2:30 pm EST
The proforma capstone overview session will bring together the core lessons from previous sessions. Key performance indicators will be reviewed using a proforma report generated from a real financial institution not previously considered during the course. Using the information in the proforma, participants will have the opportunity to assess various aspects of the bank’s performance and make suggestions related to increasing performance and managing risk.
What You’ll Learn
- Assess and analyze financial performance by working with data from real institutions
- Become familiar with the ins and outs of balance sheets and income statements
- Learn how to apply key performance metrics to the data presented in these documents
- Deeper insight into the factors affecting performance
- How performance may hinder or improve funding strategies and risk management
- Review a bank’s financial statements to identify strengths and weaknesses
- How to recommend changes for improved performance
- Rate a bank’s performance
Who Should Attend
Anyone looking to understand the fundamentals of the industry. This program allows financial institutions to provide a foundation for new and experienced bankers looking to grow their careers.
View Delivery OptionsInstructor
Duncan Taylor
Duncan Taylor is the SVP and Chief Operating Officer for the Washington Bankers Association and serves as President of WBA Professional Services, Inc. He is a seasoned association management professio... read more.
