Analysis of interest rate risk, operating performance, and financial trends to help credit union management achieve capital goals and limit risk

A/LM analysis monitors financial performance to manage earnings fluctuations and ensure adequate capital under a broad range of possible interest rate scenarios.

• Easy to implement
  • 5300 Call Report
  • Supplemental financial reports
• Gap analysis is suitable for non-complex credit unions’ balance sheets
• Gap plus Net Economic Value (NEV) analyses are suitable for complex balance sheets

Standard A/LM analysis includes:

• A Gap analysis that is run under a +100 basis point rate shock (non-complex)
• A Gap analysis that is run under a +100 basis point rate shock plus NEV analysis that is run under six interest-rate shock scenarios (complex)
• Reports and a written synopsis of results that are ready for presentation to the credit union’s ALCO or Board of Directors
• Quarterly or semi-annual measures of
  • Earnings
  • Growth
  • Capital adequacy
  • Loan quality
  • Liquidity
  • Exposure to interest rate risk

A/LM Consulting includes:

• Personal attention and hands-on guidance from experienced A/LM specialists
• Quarterly or semi-annual risk assessment, including interest-rate risk measurement, in-depth performance analysis, and commentary
• Assistance with the development of A/LM policies
• A/LM education and consulting

Standard A/LM analysis is available as a stand-alone service or as part of the Investment Advisory Service. Contact a National Account Executive at 800.301.6196 for more information.

A/LM Information Links: