Western Banker - November/December 2016 - 6

Back to the Future to Manage Portfolio Performance By Dev Strischek, SVP, Senior Credit Policy Officer, SunTrust Bank D uring the worst days of the Civil War, Abe Lincoln observed, "The best thing about the future is that it comes one day at a time." The recent Great Recession is almost a distant memory for some, but many of us in the banking industry remember those dark days when our loan portfolios performed as poorly as Mr. Lincoln's Union Army. To avoid a "Greater Recession," we bankers have worked hard to implement more forward-looking portfolio management processes 6 www.wib.org Western Banker and techniques. This article offers a view of some of those methods. Start with the Past to Predict the Future Attorney and politician Clarence Darrow once complained, "History repeats itself, and that's one of the things that's wrong with history." Still, repetition is a time-honored learning method, so planning for the future requires us to learn from the past. Predicting the future and managing to that future end necessitates knowing where we have been and where we are right now. Keeping our portfolios on the road to success also means we have to stay within the white lines and guardrails on the sides of the road. In other words, we use performance data to set portfolio limits. Loan portfolios represent a basket of credit risk, and there are generally two types of white line data - asset quality measures and credit administration measures. Generally, the credit administration measures flash red lights well ahead of deterioration in the asset quality measures. http://www.wib.org

Table of Contents for the Digital Edition of Western Banker - November/December 2016

A Message from the President & CEO
Back to the Future to Manage Portfolio Performance
The WIB App Store
Managing Your Bank’s Reputation by Taking an “Inside-Out” Approach to Communicating News
Interest Rate Risk and ALM: Most Institutions Are Doing it Wrong
Everything Old is New Again — Updating FCRA Compliance in a CFPB World
Professional Development
Secrets to Employee Engagement for Bank Managers
March of the Millennials: Cultivating Relationships Within the Digital Generation
Welcome New Members
Index of Advertisers
Western Banker - November/December 2016 - cover1
Western Banker - November/December 2016 - cover2
Western Banker - November/December 2016 - 3
Western Banker - November/December 2016 - 4
Western Banker - November/December 2016 - A Message from the President & CEO
Western Banker - November/December 2016 - Back to the Future to Manage Portfolio Performance
Western Banker - November/December 2016 - 7
Western Banker - November/December 2016 - 8
Western Banker - November/December 2016 - 9
Western Banker - November/December 2016 - The WIB App Store
Western Banker - November/December 2016 - 11
Western Banker - November/December 2016 - 12
Western Banker - November/December 2016 - Managing Your Bank’s Reputation by Taking an “Inside-Out” Approach to Communicating News
Western Banker - November/December 2016 - 14
Western Banker - November/December 2016 - Interest Rate Risk and ALM: Most Institutions Are Doing it Wrong
Western Banker - November/December 2016 - 16
Western Banker - November/December 2016 - 17
Western Banker - November/December 2016 - Everything Old is New Again — Updating FCRA Compliance in a CFPB World
Western Banker - November/December 2016 - 19
Western Banker - November/December 2016 - 20
Western Banker - November/December 2016 - Professional Development
Western Banker - November/December 2016 - Secrets to Employee Engagement for Bank Managers
Western Banker - November/December 2016 - 23
Western Banker - November/December 2016 - March of the Millennials: Cultivating Relationships Within the Digital Generation
Western Banker - November/December 2016 - 25
Western Banker - November/December 2016 - Index of Advertisers
Western Banker - November/December 2016 - cover3
Western Banker - November/December 2016 - cover4
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