Outsourced ALM Analysis for Credit Unions
ALMPro Classic is our entry level service for small credit unions up to approximately $50 million in total assets. IRR and liquidity risk is estimated and analyzed 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 you report. Read more about ALMPro Classic
ALMPro Plus provides a more robust IRR and Liquidity Risk analysis suitable for mid-sized credit unions. Small credit unions with a more complex balance sheet may also benefit from the strengthened analyses. IRR and Liquidity Risk is estimated and analyzed by our experienced advisors and communicated back to you in the ALMPro Plus report. ALMPro Plus will provide you with the risk estimates and our experienced staff will help you understand and put the analysis to productive use. Read more about ALMPro Plus
ALMPro Premier provides the ultimate in model power to analyze IRR and Liquidity Risk analysis. It is appropriate for credit unions of any size. Typically Premier will be used for larger credit unions at $200 million assets or greater. The Premier model uses more advance model technologies such as Instrument level analysis of loans. When combined with the knowledge and experience of our senior analysts ALMPro delivers unsurpassed modeling performance. As always ALMPro service is delivered with training and support to your request. Read more about ALMPro Premier
Mark H. Smith, Inc. can help credit unions forecast and manage liquidity risk. Our Liquidity reports include a liquidity coverage ratio and a 12-month cash flow forecast with stress tests. This service is included with our ALMPro® Plus and ALMPro® Premier reports. It can also be adopted by credit unions looking for a liquidity only solution
Our interactive peer analysis tool allows you to customize historical financial statement, performance, interest rate, and trend comparisons to your specific asset size and geographic peers. The in-depth tool includes balance sheet, income statement, loan loss, and interest rate peer analysis modules where you can drill down to the specific institution level.
THIRD PARTY IRR MANAGEMENT
The Third Party IRR Model and Management Process Validation Review meets regulatory requirements and much more. Our comprehensive review performs an in-depth appraisal of your IRR/ALM model as well as your entire IRR management process at a very competitive cost. The goal of the review is not only to provide you with the assurance that your IRR/ALM modeling and management process is reasonable, but to utilize our extensive experience to add value to your program.
and Assistance Service
The budgeting support and assistance outsource service will help facilitate the credit union’s budgeting process by utilizing a balance sheet and income statement model. A senior analyst will work with the credit union in developing a budgeted balance sheet and the model will generate budget interest income and interest expense. This will then be utilized to derive the completed balance sheet and income statement budget.
CECL is a new standard for Allowance for Loan and Lease Loss (ALLL). In June 2016, FASB issued the current expected credit losses (CECL) standard – ASU 2016-13 to replace the “incurred loss” accounting model with CECL for the recognition and measurement of credit losses for loans. A similar new standard will also be implemented for investment securities.
The new standard requires estimates of the lifetime expected credit losses at the time a loan is booked.
The new standard will not be effective until January 1, 2021 financial statements but credit unions need to start preparing their data now.
A deposit analysis studies the behavior of non-maturity deposits over time and provides institution-specific results for rate sensitivities, credit union historical responses to market rate changes, decay and average life of deposits. This information is instrumental in accurately estimating and managing interest rate and liquidity risk.
A Comprehensive Deposit Analysis from Mark H. Smith, Inc. employs an account level study to provide the highest quality analysis which includes detailed information needed to make informed decisions regarding the true nature and behavior of non-maturity deposits.
Discover what many of our clients have discovered:
“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