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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...
Which Best Practices Should Loan Buyers & Sellers Consider?
Our team has analyzed more than $2B in potential loan pools for sellers and more than $3B for buyers over the last several years. Through our Loan Transaction Network, we’ve also facilitated over $1B in transactions. This direct experience has given us unique insights...
Why Are Higher Rates Good News for Credit Unions and Banks?
It’s easy to focus on the immediate impact of rising interest rates on depositories’ bond portfolios. No one likes to see the value of their investments fall, even temporarily, but that is how present value math works. Instead of lamenting – “Rates went up and I...
What NCUA’s Proposed Rule on Derivative Use Could Mean for Your Credit Union
An opportunity for federally chartered credit unions to gain greater flexibility in managing interest rate risk and making profitable decisions. Key Takeaways The preapproval process for derivative use would be eliminated for Federal Credit Unions with greater than...
Should credit unions re-evaluate their Pre-Fund plan options?
The past year has challenged many credit unions with ongoing margin pressure and lost interest income, pushing executive teams and boards to seek out additional income sources. To provide relief to the hurdles credit unions face compared to their bank counterparts,...
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All investing is subject to risk, including the possible loss of the money you invest.
“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.
INVESTMENT PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, ALM FIRST OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.