Ask ALM First
How Should My Depository Navigate a Tightening Liquidity Position?
Throughout the first half of 2022, many institutions have seen liquidity tighten due to increased loan demand and slower deposit growth. This has caused depository leaders to look for alternative ways to fund their balance sheet growth. The first step in liquidity...
How Can My Depository Add the Right Assets in Today’s Environment?
In June of 2021, the 10-year treasury sat just under 1.50% and mortgage rates were in the 3% range for many borrowers. Housing prices were soaring and financial depositories across the country were dealing with margin compression as investment options felt limited...
What Does the New Subordinated Debt Rule Mean to My Credit Union?
Subordinated debt is an unsecured loan issued by a depository institution that is treated as regulatory capital due to its subordination to all other creditors. Recent changes to the NCUA’s subordinated debt regulations, issued late 2021 and effective January 1 of...
How Should Credit Unions Prepare for the NCUA’s New “S” Risk Rating?
On October 21, 2021, the National Credit Union Administration (NCUA) Board approved the Final Rule that officially adds the Sensitivity to Market Risk or “S” component to the CAMEL rating system[1]. This rule is slated to take effect on April 1, 2022 and all...
What Should Depositories Understand About Unrealized Losses?
The potential of a rising rate environment has mounting unrealized losses on investments categorized as Available for Sale (AFS) on the minds of many banks and credit unions. Before making any knee-jerk restructuring decisions, take time to consider what unrealized...
How Can My Credit Union Retain Talent & Boost Margins through Benefits Pre-Funding?
As credit unions continue to navigate challenges in hiring, talent retention, and demands for greater workplace flexibility, paying for rising benefits expenses is a common challenge. Financial institutions are focused on extracting the maximum value possible from...
How Can My Depository Make ALCO More Effective?
The Asset and Liability Management Committee (ALCO), which is responsible for the oversight of balance sheet risk management, is one of the most important operating committees of any depository institution. A proper functioning ALCO will result in more profitable...
What Do Successful Balance Sheet Hedging Programs Have in Common?
Depositories hedge for a variety of reasons, including locking in potential profits, managing risk, attracting more business or extending the duration of their liabilities. At ALM First, we’ve always encouraged institutions, whether they're hedging or not, to look...
What Questions Should Leaders Be Asking About Mergers?
According to S&P Global, June 2021 saw the highest number of U.S. bank M&A deals since September 2019. Credit union merger activity hasn’t dwindled this year either with the NCUA approving 33 mergers in the first quarter of 2021, compared to 34 consolidations...
How Could Changes in The Mortgage Market Impact My Institution?
As if hedging mortgage risk wasn’t complicated enough, 2021 has brought some interesting updates and trends—the outcome of which could make hedging and investing in mortgage debt more challenging. So far in 2021 the mortgage environment has felt like a reversal of...
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“ALM First” is a brand name for a financial services business conducted by ALM First Group, LLC (“ALM First”) through its wholly owned subsidiaries: ALM First Financial Advisors, LLC (“ALM First Financial Advisors”); ALM First Advisors, LLC (“ALM First Advisors”); and ALM First Analytics, LLC (“ALM First Analytics”). Investment advisory services are offered through ALM First Financial Advisors, an SEC registered investment adviser. Balance sheet advisory services are offered through ALM First Advisors. Financial reporting services, loan introduction services, and other special project services are offered through ALM First Analytics. Neither ALM First nor any of its subsidiaries provide legal, tax, or accounting advice.
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