Our Services
ALMPro® Plus
ALMPro® Plus provides an enhanced Interest Rate 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 or longer-term assets will benefit from the additional analyses.
See Your Credit Union’s Key Ratios & How They Compare
Request your credit union’s customized Key Ratios report to uncover critical financial metrics and improve your credit union’s decision-making.
Advanced ALM Solutions Reporting with Personalized Training and Support.
ALMPro® Plus offers an enhanced service to credit unions with more complex balance sheets, enabling them to manage interest rate and liquidity risks effectively. ALMPro Plus includes everything in ALMPro Classic plus forecasted liquidity cash flow scenarios/stress testing and additional interest rate shock scenarios. It also includes an Executive Summary with a general credit union, economic, and interest rate outlook with some consultative considerations and an easy-to-read report summary perfect for board meetings and busy executives.
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Comprehensive Reporting
The ALMPro® Plus quarterly report includes a three-page dashboard estimating the credit union’s IRR and liquidity risk. It evaluates multiple stress testing scenarios with rate fluctuations of ±100 to ±300 basis points and includes forecasted liquidity cash flow analysis. Risk guidelines are integrated into the synopsis, referencing detailed report analyses for deeper insights.
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In-Depth Risk Analysis
The service provides a three-year simulation of net interest and income under various rate scenarios, alongside five quarterly NEV analyses including the NCUA’s Supervisory Test. It combines static liquidity risk indicators with forecasted future cash flows and stress testing. It also uses a specialized Liquidity Coverage Ratio to evaluate the 30-day liquidity horizon, integrating the credit union’s risk guidelines.
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Extensive Training & Support
Beyond analytical services, ALMPro® Plus 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 meetings, 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® Plus Report?
ALMPro® Plus provides interest rate risk analysis with a color-coded dashboard indicating policy compliance, utilizing either peer-based or custom modeling assumptions.
Income Simulation
This analysis simulates forecasted interest income, interest expense, and net income 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 +100, +200, +300 and rates-down -100, -200, -300 or others of your specification.
- Three-year Income Simulation Comparative Analysis of shock rates-up +100, +200, +300 and rates-down -100, -200, -300 or others of your specification.
- Three-year graphical forecasted quarterly Net Income, Net Interest Margin, ROA, and Net Worth Ratio.
- Graphical representation of historical three-year change from benchmark in rates-up and rates-down shocks for NII and Net Income.
- One, two, and three-year forecasted analysis, including a three-year cumulative analysis.
- Peer assumption availability or customized assumptions.
- Multiple assumptions 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 +100, +200, +300 and rates-down -100, -200, -300 shocks.
- Net Economic Value Detailed Analysis rates-up +100, +200, +300 and rates-down -100, -200, -300 shocks.
- NCUA NEV Supervisory Test 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.
- Graphical representation of historical three-year change from the current market in rates-up and rates-down shocks.
Net Economic Value (NEV)
Current Position and Forecasted Liquidity
This panel provides information to monitor and control liquidity risk. Report analysis includes static liquidity analysis as follows:
- 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
- A 12-month forecasted cash flow analysis of a likely, moderate, severe, and systemic stress scenario based on each client's unique criteria and financial makeup.
- Liquidity Coverage Ratio - A Short-term stress test designed to determine the credit union's ability to meet short-term funding requirements in a stress simulation.
- Liquidity Risk Policy, Guidelines review, and Contingency Funding Plan review and/or development.
Capital Assessment
This section includes an analysis from a regulatory perspective and a policy perspective. In addition, it includes information on the maintenance of next 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
This section provides detailed information of the credit union’s income statement and balance sheet.
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 with peer comparisons
- Trending reports and peer comparisons
- 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.
Executive Summary
Our Executive Summary provides a clear snapshot of your credit union’s economic outlook, risk analysis, and strategic recommendations—all presented in an easy-to-digest format perfect for board meetings.
FAQ
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!
