2021 Strategic Planning Conference

Liquidity & Interest Rate Risk

Bank Profile - IRR - Asset Data - Overview

IRR - ASSET MATURITY INFO

Fidelity Bank (West Des Moines, Iowa)

Assets > 5 Years / Total Assets

Assets > 15 Years / Total Assets

2% 3% 4% 5% 6% 7% 8% 9%

32%

28%

24%

20%

Metrics

Bank State All Banks

16%

12%

8%

2008Q2

2008Q4

2009Q2

2009Q4

2010Q2

2010Q4

2011Q2

2011Q4

2012Q2

2012Q4

2013Q2

2013Q4

2014Q2

2014Q4

2015Q2

2015Q4

2016Q2

2016Q4

2017Q2

2017Q4

2018Q2

2018Q4

2019Q2

2019Q4

2020Q2

2020Q4

2021Q2

2008Q2

2008Q4

2009Q2

2009Q4

2010Q2

2010Q4

2011Q2

2011Q4

2012Q2

2012Q4

2013Q2

2013Q4

2014Q2

2014Q4

2015Q2

2015Q4

2016Q2

2016Q4

2017Q2

2017Q4

2018Q2

2018Q4

2019Q2

2019Q4

2020Q2

2020Q4

2021Q2

Assets > 5 Years / Total Assets (By Category)

Assets > 15 Years / Total Assets (By Category)

10%

10% 12% 14% 16%

8%

6%

Metrics

2% 4% 6% 8%

Loans MBS Bonds

4%

2%

2008Q2

2008Q4

2009Q2

2009Q4

2010Q2

2010Q4

2011Q2

2011Q4

2012Q2

2012Q4

2013Q2

2013Q4

2014Q2

2014Q4

2015Q2

2015Q4

2016Q2

2016Q4

2017Q2

2017Q4

2018Q2

2018Q4

2019Q2

2019Q4

2020Q2

2020Q4

2021Q2

2008Q2

2008Q4

2009Q2

2009Q4

2010Q2

2010Q4

2011Q2

2011Q4

2012Q2

2012Q4

2013Q2

2013Q4

2014Q2

2014Q4

2015Q2

2015Q4

2016Q2

2016Q4

2017Q2

2017Q4

2018Q2

2018Q4

2019Q2

2019Q4

2020Q2

2020Q4

2021Q2

• Holding a large amount of long-term assets often corresponds with risk to rising interest rates, because the yield on long-term assets could be stagnant for a long period while rising interest rates cause funding costs to increase. • Keep in mind that debt securities are typically non-amortizing and tend to have longer durations than amortizing loans and MBS; the implication being that a high amount of long-term debt securities is more concerning than a high amount of long-term loans and mortgage-backed securities (MBS).

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Liquidity & Interest Rate Risk

Bank Profile - IRR - Funding Data - Overview

IRR - FUNDING MATURITY INFO

Fidelity Bank (West Des Moines, Iowa)

Short-Term Funding (Repricing/Maturing < 1 Year) / Total Assets

Long-Term Funding (Repricing/Maturing > 3 Years) / Total Assets

12%

72%

68%

10%

64%

8%

60%

Metrics

56%

6%

Bank State All Banks

52%

4%

48%

2%

44%

2008Q2

2008Q4

2009Q2

2009Q4

2010Q2

2010Q4

2011Q2

2011Q4

2012Q2

2012Q4

2013Q2

2013Q4

2014Q2

2014Q4

2015Q2

2015Q4

2016Q2

2016Q4

2017Q2

2017Q4

2018Q2

2018Q4

2019Q2

2019Q4

2020Q2

2020Q4

2021Q2

2008Q2

2008Q4

2009Q2

2009Q4

2010Q2

2010Q4

2011Q2

2011Q4

2012Q2

2012Q4

2013Q2

2013Q4

2014Q2

2014Q4

2015Q2

2015Q4

2016Q2

2016Q4

2017Q2

2017Q4

2018Q2

2018Q4

2019Q2

2019Q4

2020Q2

2020Q4

2021Q2

Non-Maturity Deposits / Total Assets

Funding Maturity Structure Over Time

70% 65% 60% 55% 50% 45% 40% 35% 30%

100% 90% 80% 70% 60% 50% 40% 30% 20% 10%

Metrics

> 3 Years 1-3 Years < 1 Year

2008Q2

2008Q4

2009Q2

2009Q4

2010Q2

2010Q4

2011Q2

2011Q4

2012Q2

2012Q4

2013Q2

2013Q4

2014Q2

2014Q4

2015Q2

2015Q4

2016Q2

2016Q4

2017Q2

2017Q4

2018Q2

2018Q4

2019Q2

2019Q4

2020Q2

2020Q4

2021Q2

2008Q2

2008Q4

2009Q2

2009Q4

2010Q2

2010Q4

2011Q2

2011Q4

2012Q2

2012Q4

2013Q2

2013Q4

2014Q2

2014Q4

2015Q2

2015Q4

2016Q2

2016Q4

2017Q2

2017Q4

2018Q2

2018Q4

2019Q2

2019Q4

2020Q2

2020Q4

2021Q2

Repricing risk is the most common form of IRR, and is caused by a mismatch in the term structure of assets and liabilities. If a bank's asset structure is long-term, risk to rising rates can be partly mitigated by a longer-term funding structure (which could include a high amount of stable non-maturity deposits).

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