ALMPro® Classic is our service to estimate interest rate and liquidity risk for credit unions with less complex balance sheets. Interest Rate Risk (IRR) and liquidity risk is performed by our experienced advisors and communicated back to you in the ALMPro® report. We will also provide extensive training and assistance in understanding and utilizing your report. Training options include Quarterly report review, ALCO and Board of Director training/participation, live and archived webinars, GoToMeeting training, what-If scenarios, policy review, regulator support, and more.
Each Quarter, your ALMPro® Classic report provides you with:
- The ALMPro Dashboard is a two-page overview of the credit union’s IRR. Major points of IRR are illustrated and compared to the credit union’s risk guidelines. References on where detailed analysis of these figures is also included if more in-depth review is wanted. It is a great solution for users who have limited time and need only an overview of the data. It’s also an effective starting point for more serious uses.
- Assumptions the pages after the dashboard detail the assumptions, documentation, and policy information used to complete the report.
- An income Simulation estimates IRR with respect to forecasted net interest income and net income. Three scenarios are modeled; benchmark, rates up shock, and rates down shock. Income simulation is an excellent approach to analyzing IRR for small and midsized credit unions. It is straight forward and the concept is easily understood even by non-financial users.
- An NEV Analysis estimates the market value change in your balance sheet due to market rate changes and captures interest rate risk for longer term instruments that are not analyzed in the income simulation. For credit union management, NEV analysis identifies the opportunity cost of holding intermediate and long-term fixed-rate assets in a rising interest rate environment. The ALMPro® Report includes multiple scenarios varying the NMD assumptions including NCUA’s Supervisory Test and three more—one at NMD 25% shorter, 50% shorter, and at par.
- Static Liquidity Risk Indicators based on current and historical balance sheet information. These indicators also incorporate the credit union’s risk guidelines on the report.
- Net Worth is tracked and provides a Net Worth (Capital) Management Summary. A three-year Net Worth is also included.
- Spread Analyses and ROA Analyses> A three-year spread analysis is included in both years and quarters. It is then graphed showing the Net Income expressed as ROA.
- Income Statement Analysis
- Balance Sheet Analysis
- A Gap Analysis
- Back-Test Comparing Forecast to Actual Income Statement
Economic Summary is available and provides a written recap of the ALMPro analysis in combined with easy to read and understand graphs.
Discover what many of our clients have discovered:
“Thank you for the excellent job in going over our September report with the board. We all learn a lot from you each session.”
— Darwin B., Citizens Community Credit Union
“They are extremely helpful and answered all of my questions thoroughly and patiently. Just one of the many reasons I use Mark H Smith, Inc. Thank you for such great service!”
— Valerie W., Bethlehem 1st Federal Credit Union