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Asset/Liability Management (ALM) is a process that decision-makers are actively involved in every month to make budget, manage capital and meet member needs. To simplify this process, Corporate Central Credit Union offers ALM solutions that place better financial management tools at our members’ fingertips. Partnered with Farin & Associates, we deliver a full range of ALM solutions, from educational resources to outsource reporting services, even robust in-house models. Corporate Central Credit Union’s ALM solutions provide a more personal relationship with in-house experts that are available to discuss your financial decisions and recommend ideas that fit with your credit union’s needs. Our solutions are focused on helping our members grow successfully.
SmartScope™ Quarterly Reporting Service
SmartScope™ is a quarterly reporting service that combines historical performance data with projected performance to test your credit union's performance under a variety of interest rate scenarios.
You simply provide Farin & Associates with the required data and they produce a static forecast of the balance sheet and income statement position under regulatory rate shocks and ramps assessing your level of earnings at risk due to changes in rates. In addition, the reporting package includes a current NEV report to assess the long-term risk embedded in the balance sheet. These results will be coupled with historical reporting on financial trends to provide insight into prior levels of risk and earnings for use in managing future decisions.
Historical data is based upon call report submission dates. As such, these components are subject to release schedules below:
| Data For: |
Available |
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March |
June 1 |
| June |
September 1 |
| September |
December 1 |
| December |
March 1 |
Modeling reports are based upon your transmission of internal data and are typically available within 3-4 weeks of complete data submission.
ALM Analysis
The ALM analysis service offers you a validation of your credit union's ALM process and results. This service is a one-time ALM analysis where Farin & Associates load and prepare a complete ALM package using their FARIN Foresight ALM model. You provide your credit union's raw data and assumptions for future growth to assess your exposure to change in market interest rates. The analysis will focus on the impact to earnings as well as Net Economic Value (NEV) levels. The results are discussed by Farin & Associates with key management personnel via conference call or optional in-house visit. Upon the completion of the project you will receive a written report and comparison of findings as well as documentation on key assumptions used in the analysis for share behaviors, pre-payment speeds, etc.
FARIN Foresight
Are you interested in running the numbers on your schedule? Want to incorporate the budgeting and planning process yourself? Then FARIN Foresight is the option for you. FARIN Foresight is a management decision-making system that combines Farin & Associates' industry leading educational knowledge with an easy to deploy solution for managing your interest rate risk levels and plans, your budgeting and planning process, and monthly board reporting. FARIN Foresight gives you the power to produce accurate outputs on complex issues, the educational support of Farin & Associates, and the flexibility to create the solution to meet your needs. With FARIN Foresight in your hands, you have the power to create all the analysis you want and need. Want help? Farin & Associates can be your back-office for those parts of modeling that you are not comfortable running, while you maintain those parts that you want in-house.
Education
The SmartScope™ Quarterly Reporting Service can be augmented by several educational online seminars. Visit www.farin.com for a complete listing of webinars offered by Farin & Associates.
Strategic Financial Modeling Workshop
Strategic financial modeling workshops, like the educational webinar sessions, add value to the SmartScope™ Quarterly Reporting Service. An important resource for many credit unions is the ability to test their plans and budgets in a true ALM model that will allow the evaluation of the current strategy under various economic conditions.
By utilizing the quarterly report information, this full-day workshop will explore the current economic conditions and discuss possible strategies. The workshop then moves into a hands-on mode with Farin & Associates' staff to help you understand the projections, critical assumptions and possible scenarios to improve performance. Changes will be reprocessed and examined for the cost/benefit of any potential change. The end result is a projected earnings forecast that includes balance sheet targets such as loan originations by category, funding targets for share retention/growth, key income statement changes from new programs or expenses, and an assessment of the plan's earnings and NEV levels under various interest rate scenarios.
For a customized proposal to meet your credit union's ALM needs, please contact a Financial Strategist at (800) 242-4747.
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