At EasCorp, we believe that intelligent business decisions depend on two things: reliable information and knowledgeable decision makers. Indeed, we believe it so strongly that we built our very successful ALM Modeling service around this principle.
EasCorp's ALM model brings together sophisticated analytical tools and multiple data sources in order to perform complex calculations. We align the model to your credit union's size and complexity; adjusting tests, analyses, and narratives as your institution grows and changes. We collaborate with you for the purpose of developing key modeling assumptions, and we test these assumptions regularly through core deposit analyses and routine assumption sensitivity testing. What's more, EasCorp provides regular reviews of your ALM policies, enabling us to make sure that they conform to regulatory requirements. This also familiarizes us with your policy objectives, enabling us to provide the timely and insightful guidance that you expect of a true business partner.
In addition to in-depth detailed reports, EasCorp provides executive summaries in an easy to read, efficient form, identifying areas of relatively strong and weak performances so that they can be exploited or fixed promptly. EasCorp will present its ALM Modeling report in person and/or conduct customized education programs for your ALM Committee and its invited guests on request, no less than once each year. We communicate in a clear and understandable way so that all members of the ALM Committee, including financial as well as non-financial professionals and elected officials, may obtain meaningful insight into risk taking activities.
An independent ALM service provider enables you to avoid "key person" risk and the inevitable disruption it creates when a major player in the ALM process leaves the credit union. An independent provider also enables you to avoid real and perceived conflicts of interest, as it relates to separating the person(s) who make risk decisions from the risk modeling process. Finally, an independent provider enables you to avoid software upgrade costs and the necessary time to install and maintain sophisticated software.
EasCorp maintains state-of-the art modeling technology and ready access to market-based financial data for analyzing multiple scenarios, including sensitivity testing. We have a team of dedicated, knowledgeable experts to process and explain your ALM modeling reports, including several who serve as instructors at the very popular EasCorp ALM Academy.
EasCorp is a financial institution that is regulated by the National Credit Union Administration. We understand state and federal credit union regulations and the surrounding examination process. We interact with credit union officials each and every business day, providing us a broad perspective across the industry, as well as a catalog of best practices to draw upon. We review your ALM policies and provide you specific recommendations for improving deficiencies or inconsistencies based upon best practices and or/regulatory guidance. We also review and provide specific recommendations for improving the quality of ALM decision making, including communications (format and/or content of your reports), as well as staff or elected official training regimens.
By relying upon EasCorp's ALM Modeling service, you have the time to concentrate on making intelligent business decisions rather than performing data entry, data processing, and report presentations.
Features of the EasCorp ALM Modeling Service include:
- Regular report packages including:
- Net Interest Income simulations with "base case" and multiple shock rate environments across a 3-year horizon
- Net Economic Value analysis with base case and multiple shock rate environments
- Gap analysis
- Liquidity reporting
- Model Sensitivity Testing
- Periodic stress testing of key model assumptions and inputs
- Report delivered as separate package including results and a written summary
- Flexibility to choose the frequency of reporting periods e.g. quarterly, semi-annual, or annual reports
- 'What-if' scenario planning capabilities
- Annual client users meeting