Pub. 9 2018 Issue 2

Summer 2018 11 West Virginia Banker Dale Sheller is Vice President in the Financial Strategies Group at The Baker Group. He joined the firm in 2015 after spending six years as a bank examiner with the Federal Deposit Insurance Corporation. Sheller holds a bachelor’s degree in finance and a master’s degree in business administration from Oklahoma State University. He works with clients on interest rate risk management, liquidity risk management, and regulatory issues. Contact: 800-937-2257, dsheller @GoBaker.com. Proven Leaders Advising Community Banks • Public trading for “private banks” • Converting customers to shareholders • Reducing the threat of unwanted outside shareholders • Enhanced stock listings • Reaching beyond your community 5050 Blazer Parkway | Suite 103 | Dublin, OH | (800) 394-9230 D.A. Davidson & Co. member SIPC | dadavidson.com | communitybankgroup.com Put the Strength of Advice to work for you. Pleased to welcome Tom Dooley and Nick Bicking to the Community Bank & Wealth Management Group Additionally, creditors such as the Federal Home Loan Bank, Federal Reserve, or Correspondent banks will demand more collateral, reduce availability, or terminate the borrowing line. Once you have your stress scenarios well thought out, you need to run those scenarios through a pro forma cash flow analysis and analyze whether or not your current liquidity levels can remedy the stress scenario. If not, you then need to look towards our contingent liquidity sources and see if they are sufficient to fund the shortfall in liquidity. Ensure the results of your liquidity stress tests are discussed by the asset-liabil- ity committee and the review is documented in the minutes. Lastly, don’t forget about your contingency funding plan. The results of your stress testing should also play a key role in shap- ing the institution’s contingency planning. Therefore, stress testing and contingency planning are closely intertwined. Remember to stress your liquidity and not yourself!  Our firm is independent and community focused like the banks we choose to serve! Our team is seasoned and dedicated! Our service approach is first rate! 888.272.7351 ♦ SEK.com Smith Elliott Kearns & Company, LLC CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS