Profitability and Derivatives Manager
Overview:
Lead the development and administration of the Bank’s customer and balance sheet derivative programs. Responsible for the management of the daily operations related to customer derivatives, including client prospecting and internal approval, transaction documentation, structuring and execution, on-going support, valuation and accounting, monitoring compliance and performance reporting. Provide recommendations and advise senior management on various balance sheet hedging strategies and oversee the daily operations related to balance sheet derivatives. Assures the Bank’s derivative activities comply with federal and state statutes, regulations and internal policies.
Lead the improvement of existing loan and deposit pricing methods/models as well as the development and maintenance of profitability analysis and reporting. Responsible for the implementation of internal controls needed to determine and track the effectiveness of the loan and deposit pricing processes, identify opportunities for improvement, and ensure ongoing compliance with pricing objectives.
Responsibilities:
- Provide timely customer derivatives and loan/deposit pricing guidance and decision-making support directly to retail personnel, consistent with established policies and procedures, including recommending and approving negotiated loan and deposit rates, term structuring, option structuring, break-funding analysis, and swaps/caps/floors/collars pricing and structuring.
- Price, structure and execute derivative transaction with loan customers. Develop derivative products training materials/classes and provide comprehensive product and sales training to CRMs. Prepare sales and marketing presentations/calling notes and serve as a dedicated one-on-one in market resource and product specialist in marketing interest rate derivative products to customers.
- Oversee and provide internal support on derivatives operations and accounting and coordinate the process between internal and external resources. Generate accurate, timely and comprehensive derivative position reports and ensure ongoing compliance with derivative policies and regulations.
- Lead the improvement of existing loan and deposit pricing methods/models, and train retail personnel to apply methods consistently and effectively. Identify potential factors that warrant changes in pricing methodology and modeling assumptions to ensure the bank is adequately compensated for the assumed risks. Oversee the development and/or maintenance of a loan prepayment penalty methodology/process.
- Lead the development of reports/analysis and implementation of internal controls needed to determine and track the effectiveness of the loan and deposit pricing processes, identify opportunities for improvement, and ensure ongoing compliance with pricing objectives. Serve as the Secretary for the Commercial Loan Pricing Committee and participate in periodic CRM calls/meetings providing economic/rate updates, pricing guidance, model updates and performance review.
- Oversee loan index and deposit rate changes with DP (product control), including communication of rate changes to retail personnel, distribution of rate changes to external vendors, maintenance of rate change records and interest plans as well as verification of rate change accuracy.
Qualifications:
- Strong knowledge of financial mathematics, pricing theory, and interest rate derivatives
- Good knowledge of fixed income capital markets, including interest rate term structures, volatility, forecasting, and related economics
- Familiarity with credit quality valuation
- Knowledge of financial accounting practices, including SFAS 133 and SFAS 157
- Knowledge of bank interest rate risk (IRR) and liquidity management, funds transfer pricing (FTP), loan and deposit pricing theory, and balance sheet management
- Outstanding analytical and organizational skills
- with a high degree of intellectual curiosity
- Capable of performing complex financial calculations and applying valuation methods/models to interest rate instruments, including loans, swaps, caps, floors and other interest rate derivatives and loan structures
- Capable of effective negotiation and support within a wide range of management levels
- Excellent written and oral communication and presentation skills
- Must be able to work independently and have the ability to balance competing priorities, manage multiple projects and tight deadlines
- Advanced Excel, Word, Access and PowerPoint skills
- Graduate degree in business with concentration in accounting, economics, finance or other quantitative discipline with a minimum of 8 years of experience in the field or in a related area
OR
- Bachelor degree in in real estate, finance, accounting or related discipline with a minimum of 10 years’ experience in the field or in a related area
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