ALMPro® Plus provides an amplified IRR and Liquidity Risk analysis suitable for credit unions with more complex balance sheets. ALMPro® Plus is geared towards mid-sized credit unions but small credit unions with more complexity and longer-term assets will benefit from the enhanced analyses. IRR and Liquidity Risk is estimated and analyzed by our experienced advisors and communicated back to you in the ALMPro® Plus report. This service provides you with the proven risk estimates and our experienced staff will help you understand and put the analysis to productive use.
Each Quarter your ALMPro® Plus report includes:
- The ALMPro Dashboard is a two-page overview of the credit union’s estimated IRR and Liquidity Risk. Major points of IRR are presented in rates up and down scenarios at 100, 200 and 300 basis points. A summary of forecasted liquidity is also included. Risk guidelines are integrated into the synopsis. References on where detailed analysis of these figures is also included if more in-depth review is wanted. The Dashboard is a great solution for users who have limited time and need only an overview of the testing outcomes
- An Income Simulation Analysis looking forward three years. Multiple scenarios are modeled for benchmark, rates up shocks and rates down shocks. Usually we use benchmark, 100, 200, and 300 basis points but you may choose other parameters for the scenarios.
- An NEV Analysis estimates the long-term IRR in your balance sheet. 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® Plus 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.
- A Liquidity Analysis Incorporates static liquidity risk analysis combined with forecasted future cash flows and stress testing. A Liquidity Coverage Ratio adapted for credit union use is incorporated and evaluates the 30-day liquidity horizon. The analysis also incorporates the credit union’s risk guidelines
- Net Worth
- An Income Statement Analysis
- A Balance Sheet Analysis
- Economic Summary is available and provides a written recap of the ALMPro analysis in combined with easy to read and understand graphs.
— Darwin B., Citizens Community Credit Union#