elite partnership.

Elite Partnership: for when you want or need it all.

Take advantage of all our services in one powerful, comprehensive package. In addition to everything with the Premier Partnership, our Elite Partnership gives you access to a full menu of innovative and productive risk management tools, plus allows you to choose from an array of additional services including:

ALM’s Elite Partnership also provides you with:

Liquidity Forecasting

The ALM First developed liquidity forecast model uses the results from the client’s latest ALM modeling as a starting point and incorporates the client’s input for growth projections for the next 12 to 24 months. One of the distinguishing characteristics of the model is the sophistication involved in projecting cash flows. Traditional liquidity models tend to be static and may not adequately account for changes in key variables. We integrate projected cash flows that are already incorporated in the ALM income simulation.

Loan Profitability Analysis

There are many benefits to loan analysis which include: determining profitability by a number of criteria and across multiple origination periods, avoiding distorting profitability with heterogeneous pools, and defining variables more accurately by assigning them at the loan level. This service allows you to review your loan portfolio through periodic loan analysis. The analysis relates the information to specific deal structures and loan performance.

Mortgage Servicing Rights Valuations

ALM First offers services for valuing and accounting for mortgage servicing rights. We generate a valuation at the individual loan level and present the results by risk tranche. The valuation can be as detailed as you desire with components including ancillary income, servicing costs, delinquency history, payment amounts, and other data by loan. In addition, we can track book value by risk tranche over time and account for impairment.

Budgeting Services

We can formulate a budget given your projected growth rates with reports showing monthly interest income and expense figures, as well as monthly net-interest margins. Asset and liability categories are grouped as you request. Figures can then be downloaded into an Excel file and e-mailed.

Hedging with Derivatives

Transferring risk to a third party through hedging can be an effective tool in certain situations. The foundation of our hedging program is the analysis of a financial institution’s balance sheet and identification of its inherent risk through net economic value (NEV) analyses. We use this information, as well as our years of experience with derivative instruments, to determine appropriate hedging strategies, build effective hedge transactions, and achieve desired risk profiles.

Total Return Asset Management

This service involves discretionary asset management by ALM First with respect to all or part of your financial institution’s investment portfolio. Your senior executives establish the parameters by which the portfolio will be managed. Total return asset management includes investment policy review, investment execution and management, investment product education, and portfolio monitoring and reporting.

Internal ALM Validations

ALM First will perform an unbiased, onsite review of your financial institution’s entire asset liability management process, including your methodology and assumptions, prepayment and re-pricing procedures, rate indices, and reporting formats. We’ll also conduct a full array of ALM reports. Once complete, we’ll write a comparative review of your ALM reports versus those performed at ALM First.

Unlimited “What If” Scenarios

We’ll run unlimited “what if” scenarios based on your most recent earnings or economic value analyses. These scenarios will answer questions such as earnings variations based upon an increase in a type of loan or a dividend change. Other scenarios include economic value analyses based on an increase in mortgage loans or a change in the shape of the yield curve, or both. Whatever you are discussing in your strategic planning meetings, we can model.

The Elite Partnership also includes all the services of the Premier Partnership:

• Asset Liability Management
• Strategy Development (centered around your risk tolerance)
• Investment Execution
• Compliance and Policy Reviews
• Monthly Investment Accounting Reports
• ALM First On-Demand
• In-house Training
• Call-Report Preparation
• Corporate Credit Union and Broker/Dealer Credit Analyses
• And more!
  

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