Freshmen Preparation: Bank Accounting
Pre-Session Assignment/GoToMeeting Class
As part of Asset/Liability Management for freshmen, students will attend two one-hour sessions through GoToMeeting with opportunities to ask questions. The sessions will be held one week apart and about two weeks prior to going to school at Fort Lewis College. Students will receive an invitation to participate (mandatory), be sent a useful handout, and attend the pre-sessions which are designed to help students participate more effectively the WSSB Asset/Liability Management class on campus.
The objective of this course is to first provide a detailed understanding of the dynamics of a financial institution’s balance sheet and resultant income. Once those dynamics are presented, the areas of interest rate risk and liquidity are discussed by demonstrating methods to measure those risks. Because the Federal Reserve Bank is instrumental in setting interest rates which affect a bank’s interest rate risk position, the monetary tools of the fed will be discussed to enable the students to have a better understanding of interest rate risk. Once those risks are identified strategies will be presented to manage the risks to the benefit of the institution while staying in compliance to the policies approved by its board of directors. Both on- and off-balance sheet practical interest rate risk tools to mitigate these risks will be presented. Students will be expected to participate in an exercise to create their own balance sheet strategies in a hypothetical bank presented in class. In addition to the asset/liability management concepts presented, the Uniform Bank Performance Reports will be reviewed as a means to analyze individual banks against their peer group of banks across the country.
Concepts presented in the first year session of Asset/Liability Management will be used to complete an intersession project. The students will be expected to present clear and concise strategies to a realistic bank situation where the problem bank is out of compliance to asset/liability management policies as established by the hypothetical bank’s board of directors. Included in the response from the students will be a need to understand the ramifications of their strategy on all aspects of the bank to include: capital considerations, what steps need to be taken to implement the strategy and the positives and negatives to the resultant earnings of the bank.
The students will also be required to do a financial analysis of their own bank’s financials based upon a peer analysis developed by them using the Uniform Bank Performance Reports (UBPR). An understanding of the UBPR is presented in the Asset/Liability Management class that will assist the students in this portion of the intersession project.
Brad Williamson is the CEO and President of Islanders Bank, a $280 million, three branch community bank headquartered in Friday Harbor, Washington. He supervises all aspects of the bank’s operations and additionally runs the investment and asset/liability functions of the bank.
Prior to joining Islanders Bank in February 2011, he was the Director of Banks for the State of Washington’s Department of Financial Institutions for five years. The Division of Banks is the primary regulator for Washington State chartered commercial and savings banks, trust companies and small business development entities. Brad began his banking career in 1987 as an examiner for the Federal Deposit Insurance Corporation where he worked until 1994 when he began working for the State of Washington and became the Program Manager for Bank Examinations where he was responsible for the scheduling and completion of all bank examinations conducted by the State. In 1999 he left government to become Senior Vice President for Phoenix Savings Bank in Lynnwood, Washington. At Phoenix he supervised asset/liability management, deposit operations, internal audit, compliance, CRA and helped develop a wholesale lending operation.
Brad was an organizing member of the Bank on Seattle Initiative and has frequently provided testimony to the Washington State Legislature regarding the financial crisis and other regulatory matters. He has been a frequent speaker at industry conferences and training sessions and is a graduate of California State University, East Bay and the Pacific Coast Banking School.