Asset/Liability Management (ALM) Services

• ALM reporting

  ALM reporting packages with customizable options deliver reliable results to improve decision making. Independently certified models accurately quantify risk, supported by the fastest standard turnaround times, with no added fee.

• ALM model validation

  The ALM team is a long term national provider of validation services spanning all ALM models. The ALM team delivers an independent evaluation credit unions' ALM programs. This is done using sophisticated models, industry best practices and the most current methods. This allows the ALM team to verify the soundness (accuracy/validity/reasonableness) of risk management solutions and identify areas for potential improvement.

• ALM model assumption review

  A review is conducted of key modeling assumptions used in the risk management system, whether run internally or outsourced. Key assumptions are evaluated and tested for accuracy and reasonableness. Material differences are identified, summarized and presented, along with recommendations.

• Data integrity analysis

  Detailed examination of balance sheet data files uncovers errant loan and deposit account elements. The review routinely reveals data omissions and inconsistencies due to data entry errors, mergers or core conversions. Identifying potential areas of improvement helps create a more accurate and reliable reporting process. Finding errors before members do helps maintain member confidence.

• Non-maturity deposit analysis

  Non-maturity deposit assumptions have an enormous impact on the reported interest rate risk exposure. Examiners continue to place tremendous emphasis on understanding non-maturity deposits, as well as the modeling assumptions. This analysis evaluates account level historical data to identify specifics on withdrawal behavior, as well as demographic attributes.

• Mortgage servicing rights analysis

  Mortgage servicing rights analysis maintains and enhances member relationships. This helps manage balance sheet risk and produces income. The analysis determines the fair value of servicing rights, while assessing any impairment.

• Liquidity stress analysis

  This dynamic projection identifies liquidity shortfalls across various stress scenarios. The analysis projects net cash flows based upon multiple factors. Those factors include growth, unfunded commitments, deposit runoff and changes in interest rates.

The above service offerings are further supplemented with:

• Online "what-if" capability

  Empowering users to perform “on-the-fly” analysis simply by logging into TranZact. Allows managers to perform ad hoc analysis and generate instant ALM results. It is perfect for a quick answer during Board and ALCO meetings, strategic planning, and even brainstorming sessions.

• Analysis review

  Work with a dedicated professional that reviews your analysis and offers consultation with management, the Board, or ALCO.

• Policy assistance

  Review and update policies as needed to ensure proper control, compliance, and oversight, considering asset size and balance sheet complexity.

• On-site visits

  Our staff has extensive knowledge and experience in ALM and balance sheet management. In-person visits can be tailored to meet your needs.

• Fair Value reporting

  A fair value analysis provides a concise view of the current balance sheet based on current market conditions.