Pub. 13 2018-2019 Issue 2

WWW.NEBANKERS.ORG 28 the space between price and value lies the potential opportunity to outperform. Tomake use of this difference, however, onemust have a methodology for distinguishing between them. 8. Decision-making FrameworksMust Be in Sync What terms should you offer on a CRE loan? Is balloon date an interest rate risk concern or a credit concern? What is the relationship or trade-off between these concerns? The chance is, these decisions get made in one committee or the other, and are never brought into common alignment. They should be. Obviously, in a short article, we can only scratch the surface of this topic, but the hope is to motivate much more thinking along these lines in your daily business. Decide tomake better decisions; decide tomakemoremoney. The application of these eight principles can be improved within almost any bank, regardless of asset size. Don’t be daunted by their number; pick one and attack it today. Philip Nussbaum is a co-founder and chairman of Performance Trust. His passion is to help asset liability managers outperform by applying a disciplined, well- quantified risk/reward decision-making process. Prior to Performance Trust, he was a vice president at Clayton Brown & Associates and a senior examiner with the Financial Markets Unit of the Federal Reserve Bank of Chicago. Eric C. Brown is a managing director at Performance Trust and is a familiar voice on the firm’s Level Playing Field® webinar series, which is aimed at helping depository executives achieve great performance. Previously, he served as CFO, chief strategy officer, ALCO chair, and inside director for a $2 billion community bank. He has past experience as a naval officer and an engineer. Decide to make better decisions; decide to make more money. The application of these eight principles can be improved within almost any bank, regardless of asset size. Don’t be daunted by their number; pick one and attack it today. Less Money — continued from page 27