Independent ALM Modeling Process
Expert, comprehensive, review of your complete ALM process including best practice, value added solutions
We offer comprehensive ALM training to clients and their boards and ALCO’s at no additional cost.
CREDIT UNION ASSET & LIABILITY ANALYSIS & PLANNING
Mark H. Smith, Inc. helps credit unions of all sizes manage their balance sheet and optimize earnings with our outsourced solutions. These proven solutions include Asset and Liability Management, Interest Rate Risk Management, and Liquidity Risk Management tools. Additional areas of expertise include CECL, Interactive Peer Analysis, Comprehensive Interactive Loan and Deposit Analytics, and other supporting ALM services. MHSI strives to promote credit union success by giving personalized service, improving understanding through training, supporting the credit union’s financial stability, and assisting with regulatory compliance. Founded in 1984 with an ongoing commitment to responsive client support and competitive costs, we currently serve over 400 credit unions nationally.
Essentials for a Successful ALCO Committee
Wed., April 26, 2023, 12:00 MDT
This Webinar will review the organizational structure of an Asset Liability Committee (ALCO). Next, we will discuss the function and responsibilities of the ALCO and its fit with the credit union management and board. Meeting agenda items will be reviewed and discussed along with identifying helpful reports.
- Develop a better understanding of the ALCO purpose and responsibilities
- Identify reports and information that are essential for an effective ALCO meeting
- Discuss key topics that should be addressed by the ALCO
- Explore the flow of information and documentation requirement
Income Simulation & Liquidity Training for Credit Union Leaders, Boards, and ALCO
Wed, May 17, 2023, 12:00 MDT
Measuring, monitoring, and managing interest rate risk are essential to a credit union’s financial success. Income simulation is one of the methods to estimate interest rate risk. This introductory training will help new board, & management members learn about balance sheet management, income simulation, & liquidity.
- Gain an understanding of interest rate risk and why its management is essential
- Review the basic concepts and assumptions about the loan, investment, and member deposit behaviors
- Receive an introduction to the Income Simulation methodology for estimating interest rate risk as market rates change
- Explore the results of various interest rate scenarios and how changing rates impact net interest income and net income
- Discuss basic thoughts about setting Interest Rate Risk Policy limits
Free Product Sample & Consultation
Basic Rate Sensitivity Analysis
The Basic Rate Sensitivity Analysis helps a credit union understand the historical behavior of deposit rates. This is one of the most important components in evaluating interest rate risk. This report estimates your credit union’s deposit rate sensitivities or betas that are unique to your credit union using call report data. It then compares your credit union’s deposit rate sensitivities to other credit unions in your county, state, and nation. Please click below if you would like a FREE copy of your Basic Rate Sensitivity Analysis along with a 10-15 minute consultation to show how this report can benefit your credit union.
For additional webinars and links to past webinars, please see the resources page and click on upcoming webinars or webinar archives.
Our ALMPro® Classic service estimates interest rate risk (IRR) and liquidity risk for credit unions with less complex balance sheets while providing a fully comprehensive ALM solution.
Our ALMPro Plus service provides an amplified IRR and Liquidity Risk analysis and includes an Executive Summary. This level is suitable for credit unions with more complex balance sheets.
Our ALMPro Premier service provides instrument level analytics and paramount modeling to analyze IRR and Liquidity Risk. This level is appropriate for credit unions with complex balance sheets who want more in-depth analysis or increased customization.
Interactive Peer Analysis
Our interactive peer analysis tool allows you to customize historical financial statement, performance, interest rate, and trend comparisons to your specific asset size and geographic peers.
A comprehensive Deposit Analysis from Mark H. Smith, Inc. employs an account level study of a credit unions non-maturity deposits over time to provide institution-specific rate sensitivities, cu historical responses to market rate changes, and decay and average life of deposits.
Our Budgeting Service is available as an add-on for ALMPro clients. A senior analyst works with the CU to develop a budgeted balance sheet and the model will generate budget interest income and interest expense. The completed balance sheet and income statement budget are then completed.
ALM Model Validation
Our comprehensive IRR Model and Management Process Validation Review performs an in-depth appraisal of your IRR/ALM model as well as your entire IRR management process. The goal for us is to add value to your ALM program by leveraging our extensive experience and best-practice advice.
CECL is a new standard for Allowance for Loan and Lease Loss (ALLL) and will be effective January 1, 2021. In spite of the future effective date, credit unions need to start preparing their data now. MHSI will have a CECL solution for small to medium sized credit unions starting the 1st quarter 2018.
Still not sure which service is right for you?
At Mark H. Smith we understand this can be a very complicated process. Let us help you solve your issues, and guide you to the best solution. Our goal is to simplify and make things easier for you and your credit union, by saving time and increasing your knowledge. Let us help.
We do more for you!
How are we different?
Mark H. Smith, Inc. has been helping credit unions for over thirty years. Not only have we been an advocate for small to medium-sized credit unions and IRR/ALM analysis, we also take a step further and train these same leaders on how to use this information for better management decisions.
Teach & Train
as Part of our
Our highly skilled staff of credit union experts put teaching and training our clients at the top of their priorities. We want you to succeed and know with the right information you can. We are happy to review your report, train your ALCO, or attend a board meeting. We also have many other ways to speed up the learning curve such as webinars and other online resources.
Expertise that is
In spite of being highly trained, the staff at Mark H. Smith, Inc. is here to help and be accommodating if at all possible. We want to make things easier for you and serve you with a friendly contact and a quality product with people you can rely on.
FREE PRODUCT SAMPLE & CONSULTATION
2022 Basic Rate Sensitivity Analysis
The Basic Rate Sensitivity Analysis helps a credit union understand the historical behavior of deposit rates. This is one of the most important components in evaluating interest rate risk..