Our Services
ALMPro® Classic
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.
See Your Credit Union’s Key Ratios & How They Compare
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Comprehensive ALM Reporting with Personalized Training and Support.
ALMPro® Classic by Mark H. Smith, Inc. offers comprehensive asset and liability management analysis tailored for credit unions. In addition, unlimited training and consultation are included at no additional charge. Our services are specially designed for institutions with less complex balance sheets, this service provides concise semi-annual or quarterly reports and actionable insights.
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Comprehensive Reporting
Clients receive the ALMPro® Classic report either quarterly or semi-annually. This comprehensive report includes a two-page dashboard that shows an overview of the credit union’s interest rate risk (IRR) and liquidity risk profiles. It compares major IRR and liquidity risk points against the credit union’s risk guidelines and references detailed analyses for deeper insights.
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In-Depth Risk Analysis
The service includes income simulation analyses that estimate IRR for forecasted net interest income and net income across multiple rate change scenarios and timeframes. Additionally, multiple net economic value (NEV) analyses assess the market value changes in the balance sheet due to interest rate fluctuations, capturing longer-term IRR.
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Extensive Training & Support
Beyond analytical services, ALMPro® Classic provides extensive training and assistance to help clients effectively understand and utilize their reports. Training options include quarterly report reviews, training or participation in the Asset-Liability Committee (ALCO) and Board of Directors, live and archived webinars, GoToMeeting consultation sessions, what-if scenarios, policy reviews, regulator support, and more at no additional cost.
Get the Facts:
MHSI Outsourced vs. In-House Software
Compare cost-effective outsourced solutions with customized in-house software. At MHS we help financial institutions evaluate options based on your unique operational needs, budget constraints, and growth objectives.
What’s Included in Your ALMPro® Classic Report?
ALMPro® Classic comprehensively analyzes your interest rate risk to help manage your balance sheet. It includes an easy-to-read dashboard with additional report details.
Income Simulation
This analysis simulates forecasted interest income and interest expense in benchmark and shock scenarios. It is designed as a stress test to evaluate sensitivity to interest rate changes while comparing with policy guidelines. Details of this analysis are given in the report, including:
- Three-year Cumulative Income Simulation Summary for shock rates-up and rates-down.
- Comparative Income Simulation Analysis of shock rates-up and rates-down to benchmark.
- Graphical forecasted quarterly Net Interest Income, Net Interest Margin, Net Income, and ROA.
- One, two, and three year forecasted analysis including a three-year cumulative analysis.
- Peer assumption availability or customized assumptions.
- Assumption defaults in base-case, rates-up, and rates-down shocks that can be customized.
INCOME SIMULATION
Net Economic Value (NEV)
This analysis estimates the effect of interest rates on the market value of net worth (capital) by calculating the market value of assets minus the market value of liabilities. This calculation measures long-term interest rate risk in a credit union’s balance sheet at a fixed point in time. The Net Worth remaining after the impact of Market Risk is applied and is referred to as the CU’s Net Economic Value (NEV). The analysis simulates different shock scenarios and compares them to policy guidelines. Details of this analysis Include:
- Net Economic Value/Market Summary in rates-up and rates-down shocks.
- Net Economic Value Detailed rates-up Analysis.
- Net Economic Value Detailed rates-down Analysis.
- NCUA Supervisory NEV Analysis.
- NEV Alternative Scenario - Non-Maturity Share Index Assumptions 25% Shorter.
- NEV Alternative Scenario - Non-Maturity Share Index Assumptions 50% Shorter.
- NEV Alternative Scenario - Non-Maturity Deposits at Par Analysis.
Net Economic Value (NEV)
Current Position Liquidity Analysis
This panel provides information to monitor and control liquidity risk. Report analysis includes static liquidity analysis as follow:
- Overnight liquidity ratio.
- Three-month liquidity ratio.
- One-year liquidity ratio.
- Loan turnover ratio 12-month moving average.
- Unfunded LOC liquidity analysis.
- Loans to total assets.
- Loans to total shares.
- Borrowings + non-member deposits to total deposits.
Capital Assessment
This section includes an analysis from a regulatory perspective and a policy perspective. In addition, it includes information on the maintenance of net worth/capital, a historical view of net worth, and a graph on net worth to total assets ratio.
In addition to the dashboard, the report contains information on:
- Net worth (capital) management summary.
- Three-year net worth history.
- Three-year net worth to total assets ratio graph.
Historical Financial Statement Analysis
In addition to the panel information, additional analysis includes:
- Year-to-date income statement analysis.
- Summary income statement analysis.
- Interest income and interest expense analysis with graphs.
- Rolling 12 months income statement analysis.
- Last three quarters income statement.
- Net interest Margin/NII analysis graphs balance sheet.
- Summary balance sheet analysis.
- Detailed balance sheet analysis.
- Loan portfolio analysis for the last 3 years.
- Investment portfolio analysis for the last 3 years.
- Shares & deposits portfolio analysis for the last 3 years.
Included with every report on request:
- Training and Report Review
- Consultation
- What-Ifs
Extras that come with Mark H. Smith, Inc. Services
Beyond our core ALM modeling and reporting, we provide additional analysis and expert guidance to help your credit union make informed decisions with confidence. Our comprehensive reports include:
- Policy and Assumptions consultation and guidance (assumption peer defaults and customization options)
- Consultation with Board and ALCO
- Examiner Consultation and Support
- Local loan and deposit rate surveys, trends, and top rates reports
- Key ratios report (including customized peer groups)
- Liquidity and Funding Analysis
- Concentration Analysis
Why Credit Unions Trust Us
Personalized Service & Support
Think of us as your dedicated ALM specialist, always just a call away. We understand every credit union is unique, which is why we tailor our solutions to your specific needs, providing personalized support as if you had an expert on staff.
Results-Driven Solutions
Our approach delivers measurable value through customized solutions, not one-size-fits-all services. We're known industry-wide for going beyond expectations to help credit unions achieve their financial management goals.
Your Credit Union Specialists
We've exclusively served credit unions for over 40 years, giving us unmatched understanding of your unique challenges. Our ALM validation acknowledges that your IRR management program should match your size, complexity, and risk profile.
Ready to Strengthen Your Credit Union’s Financial Strategy?
Gain clarity and confidence with expert ALM insights, regulatory support, and data-driven decision-making. Let’s discuss how our solutions can support your institution’s success.
FAQ
More Questions? We’ve got answers.
Looking for more information? Visit our FAQ page for answers to common questions, or feel free to contact us below if you need further assistance. We’re here to help!
