Planning

Young & Associates, Inc. is a leader in assisting financial institutions to move successfully through the strategic planning process. We focus on proven methodologies for enhancing long-term profitability, effective capital utilization, and most importantly, increasing shareholder value. Our goal is to build the planning process that best meets the needs of your bank. Therefore, we remain flexible to your specific needs, and help you create a vision with a focus for bank’s short- and long-term future.

For more information on our Strategic Planning Services, give us a call at 1.800.525.9775 or or click here to send an E-mail.
Strategic Planning
The typical format of our strategic planning process is a 1-day strategic planning retreat, held off-site at a location chosen by the bank. Our goal is to build the planning process around your needs, so many other options are available.  The following are examples of the issue/subjects that might be discussed at a strategic planning retreat. (The specific agenda for the retreat will be developed with the input of the bank prior to the retreat.)

Comparison of the bank to peer
5-Year Analysis based on the bank’s current position – completed prior to retreat
Strengths/Weaknesses – Opportunities/Threats
Regulatory Issues
Short-term and long-term objectives
What must be accomplished in the next 12 to 18 months, e.g.:
Bank’s future focus
Geographic expansion – new branches, purchases, LPOs
Product expansion – new or changes to existing products
Capital utilization
Loan growth
Funding (deposits, FHLB borrowing, bulletin board CDs)
Liquidity
Overhead and overhead efficiency
Fee income
Alternative banking products
Technology
Incentive compensation
Infrastructure
Management succession

Based on the information gathered prior to and at the retreat, Young & Associates, Inc. will prepare a written plan for the planning committee, based on what the planning committee wants the bank to accomplish. Professional fees for a strategic plan will vary based on the individual needs of the bank, but typically will run between $8,000 and $12,000.
Strategic Plan for Banks Under $100 Million
Every bank could improve performance with an effective strategic plan. But, the cost to smaller banks makes it very difficult to engage a professional facilitator. Young & Associates, Inc. has developed a strategic planning process for under $100 million banks that significantly reduces our cost, which we can then pass on to the client. This reduces the professional fee to approximately $5,450, and also significantly reduces or nearly eliminates out-of-pocket expenses. With this approach, the smallest bank can afford to have the leaders in strategic planning assistance, Young & Associates, Inc., assist in developing an effective strategic plan that will meet the needs of the bank and regulators.

For more information on our Strategic Planning Services, give us a call at 1.800.525.9775 or click here to send an E-mail.
Capital Planning
Capital adequacy requirements are changing. Community bankers need to understand, plan, and then implement the new regulatory emphasis on the responsibility of the board and senior management to determine capital adequacy based on the specific risk at the bank, and develop a capital contingency plan and policy to ensure capital adequacy after stressing capital. Young & Associates, Inc. can guide you through this process by assisting in the development of a useable methodology that meets the regulatory guidelines while avoiding the traps that an ill-conceived methodology can create.

For more information on our Capital Planning Services, give us a call at 1.800.525.9775 or click here to send an E-mail.
Profit Planning
Increasing profitability, both in the short term and the long term, is critical to your bank’s success and, in many cases, its survival. Young & Associates, Inc. will analyze the various components of your bank’s stream of earnings and identify those areas that can be pursued to increase your bank’s bottom line and shareholder value. Beyond identification, we make specific and detailed recommendations that your bank can implement in its path toward superior performance.

For more information on our Profit Planning Services, give us a call at 1.800.525.9775 or click here to send an E-mail.
Budgeting
Budgeting is the nuts and bolts of profitability. Understanding this process enhances the ability to increase profits. Through analysis of key ratios and prior years’ budgets, we can help you determine positive and negative variances, as well as your strengths and weaknesses. We examine your peer averages, project net interest margin, and make recommendations that will help you monitor and control your budget in the future.

For more information on our Budgeting Services, give us a call at 1.800.525.9775 or click here to send an E-mail.
Liquidity Planning Services
Liquidity Program • Contingency Funding Planning
Liquidity Cash Flow Projections and Stress Testing

Maintaining an adequate level of liquidity depends on the institution’s ability to efficiently meet both expected and unexpected cash flows and collateral needs without adversely affecting either daily operations or the financial conditions of the bank. Young & Associates, Inc. can assist you in different areas of the liquidity planning process.

For more information on how Young & Associates, Inc. can help you with your liquidity planning, please call 1.800.525.9775 or click here to send an email.
Liquidity Program
We can help you define general liquidity strategies, policies, procedures, and liquidity metrics that match the bank’s business plan and its risk profile.
Contingency Funding Planning
We can assist in the process of developing procedures for addressing liquidity shortfalls in emergency situations. Our customized contingency funding plan will identify potential stress events, define relevant early warning indicators and parameters for liquidity stress testing, identify alternative sources of funds and funding strategies, define lines of responsibility and communication, and establish a detailed crisis action plan.
Liquidity Cash Flow Projections and Stress Testing
We can assist in developing quantitative cash flow forecasts and performing various liquidity analyses, including providing estimates regarding the bank’s anticipated funding needs and the available funding sources over time, monitoring cash flow gaps, measuring primary liquidity position and availability of contingent liquidity, as well as monitoring dynamic cash flow ratios, funding concentrations and other liquidity metrics. We can also assist in performing liquidity stress tests, including identification of various stress constraints, analysis of potential funding erosion in a stress situation, impact of stress on the availability of contingent funding, and the primary liquidity position of the bank. Our assistance includes guidance for keeping the analyses up-to-date and a development of a customized Excel model available to the bank for future use.