Our Services
Deposit Analysis
Understanding your non-maturity share deposit behavior characteristics is crucial to managing interest rate risk, liquidity risk, and your balance sheet overall. Our Deposit Analysis service offers in-depth insights into your non-maturity share account behaviors, helping you make data-driven decisions to optimize balance sheet management.
Gain Clearer Insight Into Deposit Behavior to Strengthen Balance Sheet Strategy.
At Mark H. Smith, Inc., we specialize in helping credit unions with Asset Liability Management;
including interest rate and liquidity risk management. Our Deposit Analysis service evaluates
non-maturity share account behaviors to help manage interest rate risk, liquidity risk, deposit
rate setting, deposit rate forecasting, and overall balance sheet management.
01
Insights into Non-Maturity Share Behavior
A comprehensive Deposit Analysis from Mark H. Smith, Inc. examines the behavior of non-
maturity shares, providing institution-specific non-maturity share account type average life
estimates, rate sensitivities, and lagging effects.
02
Average Lives Estimates
The primary function of this analysis is to estimate the average life of non-maturity shares by share type, including how they behave in various rising and falling rate scenarios. This information is essential for understanding deposit stability and planning for future liquidity needs.
03
Rate Sensitivity Factor and Lag Evaluation
A historical analysis of non-maturity share type rate sensitivity factors (RSFs) will show how the credit union has changed non-maturity share account rates by share type and balance tier relative to changes in market rates. This will also include any lagging change effects relative to the market rate change.
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 Deposit Analysis?
Our engagement is designed to customize insights to your specific members’ non-maturity
share behaviors and characteristics by share type and balance tier.
Decay & Average Lives
We analyze historical account-level data across different rate environments to determine what the estimated decay rates and estimated average lives of your member deposits have been for each share type and balance tier. This includes looking at potentially varied average lives in different rate change scenarios. This valuable insight can assist the credit union in interest rate risk modeling, liquidity risk modeling, and liquidity planning analysis.
Rate Sensitivity Factors (RSFs) or Beta Coefficient
This analysis will derive a correlation between your historical deposit rate movements and historical federal funds rate movements. This will quantify how the credit union has historically changed member non-maturity share deposit rates relative to changes in the federal funds rate. This is done at the share type and balance tier level where different rates for balance tiers exist. The results of this analysis can be incorporated into the credit union interest rate risk modeling, budgeting, forecasting, and rate setting processes.
LAG
This will assess and derive a timing difference between historical changes in the federal funds rate and corresponding changes in the credit union’s non-maturity share type rates by share type. Understanding this lag demonstrates when the credit union has historically reacted with non-maturity share account rate changes following a change in the federal funds rate.
Peer Comparisons
Peer Group Comparisons for each of these calculated characteristics will be provided
Final Report
You’ll receive a detailed, easy-to-understand report outlining the results, along with a consultative report review and Q&A meeting upon request. A teleconference summary of the report results can also be provided to the ALCO or your board of directors at no additional cost.
Online Interactive Deposit Analytics
Additional information included with the comprehensive report is an online interactive deposit analytics application which includes historical quarterly:
- Changes in deposit balances
- New account information
- Decay pools
- Demographic data
- Concentrations by tier and category
- Certificate maturity details
- Geographic data
- Ability to filter data by any data point
- And More
Find the analysis that’s right for you
We offer three customized options to fit your needs and budget.
Comprehensive Analysis
Custom RSA
Basic RSA
Average Lives
Rate Sensitivity Factor & Lag (Custom)
Rate Sensitivity Factor & Lag (from
Regulatory Reports)
Rate Comparison
Summary of Results
Online Interactive Deposit Analytics
Comprehensive Analysis
- Average Lives
- Rate Sensitivity Factor & Lag (Custom)
- Rate Sensitivity Factor & Lag (Reports)
- Rate Comparison
- Summary of Results
- Online Interactive Deposit Analytics
Custom RSA
- Average Lives
- Rate Sensitivity Factor & Lag (Custom)
- Rate Sensitivity Factor & Lag (Reports)
- Rate Comparison
- Summary of Results
- Online Interactive Deposit Analytics
Basic RSA
- Average Lives
- Rate Sensitivity Factor & Lag (Custom)
- Rate Sensitivity Factor & Lag (Reports)
- Rate Comparison
- Summary of Results
- Online Interactive Deposit Analytics
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
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!
