Back to Back SWAPs – An Extra Arrow In Your Quiver

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As a financial institution, you are looking for ways to better manage interest rate risk, lower funding costs and generate fee income in accounting-friendly structures with the right hedging tools. Interest rate hedging programs offer a number of benefits for a community bank and its client base. This webinar will help address advantages of having such a program, how a program works and how it can positively impact your client relationships.

The following hedging strategies will be discussed:
•    Traditional Fixed – Bank offers the client a traditional fixed rate loan and enters into an offsetting swap 
•    Direct Swap – Bank offers the client a floating rate loan combined with a fixed rate swap and enters into an offsetting swap.

Each of these fixed rate alternatives allow the bank to manage its rate risk on a floating rate basis and to fund the loan on the short end of the curve.  Fee income can also be generated in each structure. The bank should discuss the specific type of fee income recognition with its auditors.

Who Should Attend: Chairman, CEO, President, COO, Chief Financial Officer, Chief Banking Officer, Chief Lending Officer, Relationship Managers

Learning Objectives

  • Manage interest rate risk on a floating-rate basis
  • Fund commercial loans on the short end of the yield curve to lower costs
  • Expand your product offering by utilizing interest rate swaps
  • Generate fee income by including a markup in the fixed swap rate
  • Expand your product set and potentially create a competitive market advantage

Speakers

John W. Thompson
Managing Director
The PNC Financial Institutions Group
PNC Capital Markets Group
Mr. Thompson is a managing director in PNC Capital Markets. He has responsibility for strategy, business development PNC’s Financial Institutions Group, encompassing clients in the Banks, Insurance Companies and Asset Managers & Broker Dealers verticals. In this role, he is focused working with FIG Relationship Managers to broaden and deepen client relationships by delivering solutions that draw on PNC’s full suite of products and capabilities. In this capacity he is also responsible for developing new or enhancing existing product capabilities to meet the ever-changing needs of financial institutions. Mr. Thompson joined PNC Bank (formerly National City Bank) in 1990. Over his career, he has held many leadership positions in the retail, corporate banking and debt capital markets group, primarily focused on dealing with private or public companies seeking capital for working capital, growth and or acquisition financing.

Amber Evanco
Managing Director
The PNC Financial Institutions Group
PNC Capital Markets Group
Ms. Evanco is a managing director/executive vice president in the Derivative Products Group in Capital Markets at PNC Bank.  With over 18 years of experience she has extensive knowledge of the fixed income derivatives market. In addition to direct sales coverage she is responsible for a team of salespeople and analysts focused on marketing, structuring and executing interest rate derivative products for PNC’s corporate and institutional clients. Previously, she was an accounting manager for PNC’s derivatives operations group and then worked on the interest rate derivatives trading desk in PNC’s Capital Markets Group. Before joining PNC, Amber was a Certified Public Accountant at a regional accounting and business advisory firm in Pittsburgh, PA. She holds the Series 7, 24 and Series 63 licenses.

Webinar Fees

Pricing For Price Season Pass
Bank Member $195 $0
Bank Nonmember $395 $0
Affiliate Member $195 $0
Affiliate Nonmember $395 $0

Season Pass Members receive 4 individual logins to every webinar

Additional Info

Participants will earn 1.0 CPE credit

Field of Study: Specialized Knowledge

Prerequisites: None

Advanced Preparation: None

Program Level: Basic

Delivery Method: Group Internet Based

Refunds and Cancellations: Webinar registrations are non-refundable. If the registrant is unable to attend the designated time and date of the webinar, a playback link and any written materials will be provided within 2 business days following the conclusion of the webinar

Western Bankers Association is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website:www.nasbaregistry.org.

Register

Click here to register online