Pub. 6 2017 Issue 3

11 f a l l | 2017 On the liability side, gone are the days when banks can solely rely on CD spe- cials—customers are looking for their product to keep up with the increase in rates they read about in the papers. Similar to the music the industry, CDs are a relic of the past. As such, many banks are considering Money Market Deposit Accounts that are specifically indexed to Fed Funds, allowing banks to deliver a product that customers want and can be hedged in the future. Ultimately, there will never be a short- age of forces to make bank manage- ment teams’ lives a little more challeng- ing. Whether those forces originate in the interest rate realm, or from capital markets, the banks that are first to iden - tify those challenges and address them head-on will likely be more successful and should deliver better returns. Scott Hildenbrand is a Principal and Chief Balance Sheet Strategist of Sandler O’Neill + Partners, L.P. He heads the firm’s Balance Sheet Analysis and Strategy group. Scott Hildenbrand is a Principal and Chief Balance Sheet Strategist of Sandler O’Neill + Partners, L.P. He heads the firm’s Balance Sheet Analysis and Strategy group. Auctioneers & Appraisers delivering successful results to Virginia Banking institutions since 1963 www.countsauction.com