Balance Sheet Management with Investment Consulting

The Bank:

Taylor Advisors began working with Heritage Bank (Erlanger, KY) in the 1st quarter of 2011 in the areas of balance sheet management and investment consulting.

The Challenge:

In addition to desiring help to streamline the ALCO process, Heritage bank was facing challenges with its investment process. Among these were a lack of expertise in investments and fixed income securities, low portfolio yield ranking in the 5th percentile among peer per the FDIC’s Uniform Bank Performance Report, little independent analysis of investment strategies, and difficulties with liquidity assessment.

The Solution:

Taylor Advisors spent time with the management team to initially revise the liquidity process, including the policy and tools. Next, we worked with the bank to formulate a strategy with detailed sector and asset allocation recommendations, and appropriate risk guidelines to assist in purchasing securities. The bank still maintained trade execution and purchase documentation responsibilities.

The Outcome:

During our quarterly balance sheet management meetings we focused on helping the bank take advantage of growth opportunities in the market without compromising the risk positions such as capital, liquidity, interest rate risk, and regulatory examinations.


For details on the performance of Taylor Advisors’ investment advisory clients, please contact us at at or 502-412-2205.