Supervisors Symposium - December 2023

Internal Use Only

Regulatory Environment

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© 2023 –FinPro, Inc.

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Internal Use Only

What are some hot button regulatory concerns? . . .

• Lack of effective risk identification • Capital adequacy for this stage in the life cycle  Low Tangible Equity • Weak Liquidity  Deposit Runoff  Uninsured Deposit Levels  Mark ‐ to ‐ Market Risk  Inability to sell underwater securities timely and at positive valuations

• Deteriorating Asset Quality • Increasing Interest Rate Risk • Need for enhanced Corporate Governance • Unrealistic modeling and assumptions for banking industry • CRA – Expectations of 10% Needs to Improve • Mission of FHLBs • Sunsetting of Federal Reserve BTFP

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© 2023 –FinPro, Inc.

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