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.
Each Quarter your ALM Plus report includes:
- The ALMPro Dashboard is a two-page synoptic overview of the credit union’s estimated IRR and Liquidity Risk. Major points of IRR are presented in rates up and down scenarios at 100, 200 and 300 basis points. A summary of forecasted liquidity is also included. Risk guidelines are integrated into the synopsis. The Dashboard is a great solution for users who have limited time and need only an overview of the testing outcomes
- An Income Simulation Analysis that looks forward three years. Multiple scenarios are modeled for benchmark, rates up shocks and rates down shocks. Usually we use benchmark, 100, 200, and 300 basis points but you may choose other parameters for the scenarios.
- An NEV Analysis that estimates the long term IRR in your balance sheet. For credit union management NEV analysis identifies the opportunity cost of holding intermediate and long term fixed rate assets in a rising interest rate environment.
- A Liquidity Analysis which incorporates static balance sheet analysis and forecasted future cash flows with stress testing. A Liquidity Coverage Ratio adapted for credit union us is incorporated as short term stress test is also. The liquidity analysis incorporates the credit union’s risk guidelines and leads to the liquidity risk portion of the report.
Discover what many of our clients have discovered:
“Thank you for the excellent job in going over our September report with the board. We all learn a lot from you each session.” –
— Darwin B., Citizens Community Credit Union#