Focusing On the Horizon in a Sea of Change
Asset Liability Management
ALM Strategies Built for the Future
Since 1996, we've been helping community-based financial institutions with expert balance sheet consulting. Our team uses top-notch software and experienced professionals to offer customized Asset/Liability modeling and analysis. We understand the complexities of your balance sheet and know how to boost your performance through strategic focus and actionable tactics. Let us help you meet your goals and achieve your mission.
ALM Deliverables
Our Pillars of Asset Liability Management
Utilizing your institution's strategic business goals, financial data, and our comprehensive process of assumption building, EPG provides interpretation and analysis of your institution's various interest rate risk and related return scenarios.
1. Comprehensive Focus
The regulatory guidance that outlines the appropriate procedures for IRR management is woven into our ALM process. Stress testing, alternate scenarios, back testing and proper reporting procedures are all considerations encompassed in our process.
2. Policy Development
We will ensure that your ALM policy provides guidance and fully complies with the statement of policy.
3. Exam Preparation
We will assist your institution in preparing for upcoming regulatory exams through education, documentation, and policy review.
4. Board Education
As banking becomes more complex with a small margin for error, the Board of Directors’ understanding of ALM issues is increasingly important. Our user-friendly graphic reports help facilitate explanation and Board education.
5. ALM Validation
EPG can provide an independent review and assessment of your institution’s ALM process as required by regulatory agencies.
Strategic Focus
Our Strategic ALM Focus
We produce an overall risk/return assessment that is presented in quarterly on-site meetings to develop actionable strategies that stay:
1. Preventative
Obtaining an optimal risk/return profile is challenging. Once achieved, how do you maintain strong earnings? How do you prevent a decline in earnings or shift to unacceptable risk?
2. Corrective
How do you fix an existing problem in the most prudent manner?
- Improve earnings
- Reduce IRR
- Address regulatory pressure
3. Proactive
How do you enhance performance?
- Increase Earnings
- Leverage Capital
- Introduce New Products
- Test Pricing Sensitivity
ALM Process
Portfolio Management Aligned to Your Objectives
EPG actively manages investments by setting target prices, monitoring market conditions, and aligning buy/sell decisions with your objectives, looking at:
1. Target Price
For fixed income securities, a target spread and/or price is created to benchmark what we believe to be full valuation.
2. Security Outlook
We actively monitor and assess changes in interest rates and credit ratings to capture potential changes that may impact security performance.
3. Client Objectives
We recommend buy or sell actions that integrate investment management practices with client objectives.
Our Pillars of Asset Liability Management
Utilizing your institution's strategic business goals, financial data, and our comprehensive process of assumption building, EPG provides interpretation and analysis of your institution's various interest rate risk and related return scenarios.
1. Comprehensive Focus
The regulatory guidance that outlines the appropriate procedures for IRR management is woven into our ALM process. Stress testing, alternate scenarios, back testing and proper reporting procedures are all considerations encompassed in our process.
2. Policy Development
We will ensure that your ALM policy provides guidance and fully complies with the statement of policy.
3. Exam Preparation
We will assist your institution in preparing for upcoming regulatory exams through education, documentation, and policy review.
4. Board Education
As banking becomes more complex with a small margin for error, the Board of Directors’ understanding of ALM issues is increasingly important. Our user-friendly graphic reports help facilitate explanation and Board education.
5. ALM Validation
EPG can provide an independent review and assessment of your institution’s ALM process as required by regulatory agencies.
Our Strategic ALM Focus
We produce an overall risk/return assessment that is presented in quarterly on-site meetings to develop actionable strategies that stay:
1. Preventative
Obtaining an optimal risk/return profile is challenging. Once achieved, how do you maintain strong earnings? How do you prevent a decline in earnings or shift to unacceptable risk?
2. Corrective
How do you fix an existing problem in the most prudent manner?
- Improve earnings
- Reduce IRR
- Address regulatory pressure
3. Proactive
How do you enhance performance?
- Increase Earnings
- Leverage Capital
- Introduce New Products
- Test Pricing Sensitivity
Our ALM Focus Process
Our Process provides strategic solutions, developing actionable ideas to meet profitability and risk/return objectives.
1. Generate
Perspective
We look at the current financial landscape to better understand the economic outlook and rate forecasts while developing a thorough client profile that encapsulates your current and future positions alongside your strategic focus.
2. Operating
Environment
The level of interest rates, the shape of the yield curve, and targeted sector spreads are evaluated and forecasted on an ongoing basis.
3. Risk Rate
Assessment
Prior to recommending a strategy, we assess each security to determine its appropriateness given your institutions investment objectives and policy parameters.
3. Strategy
Development
Prior to recommending a strategy, we assess each security to determine its appropriateness given your institutions investment objectives and policy parameters.
"Increasing regulatory oversight, operating complexities, and intense competition requires today's senior leadership teams to seek out the best resource solutions."
Jon Rankin
Executive Vice President, Director of ALM Services
Integrated Analysis and Strategic Recommendation
Preview Our Asset Liability Services
Enter your information to preview a sample report showcasing the insights and support we offer community-based financial institutions.
Preview Our Asset Liability Services
Enter your information to preview a sample report showcasing the insights and support we offer community-based financial institutions.
