Whether you opt for the Regulatory Reporting package or the Financial Performance package, the following services are included at no additional charge.
Historical Share Sensitivity Analysis
In order to estimate an institution’s interest rate risk profile, assumptions must be made about the rate sensitivity of its non-maturity share types. To this end, we conduct a historical analysis to examine the way the credit union has changed the pricing of its "core" deposits in relation to changes in market interest rates. We analyze each of your core share types back to the beginning of the last decade, and provide recommendations for the level of price sensitivity that is most appropriate for your institution.
Peer Comparison of Key ALM Ratios
While our ALM reports do a great job of showing the credit union’s historical trends, it is also valuable to compare an institution’s key ALM ratios to its peers within the credit union industry. To this end, each quarter we send out a separate peer analysis report showing each institution how it compared to its national peer group, as well as to its peers within its own state. This analysis is very helpful in uncovering how the credit union is trending against both its local and national peer groups.
Annual Budgeting Assistance
Given the accuracy of our forecasts, we allow our clients to use one of their quarterly report sets as their annual budget. We typically provide budgeting assistance in either the fourth or first quarter, and include three variations of growth: "Most Likely", "Best Case" and "Worst Case". Once the budget is finalized, we include it as a comparison to actual results in each set of quarterly reports during the following year.
Bond Accounting Reports
In order to forecast future investment cash flows and earnings as accurately as possible, and yet remain completely objective with regard to market pricing, we outsource the bond accounting function to a highly reputable third party provider. These reports are accessible on-line and provide month-end accounting entries, as well as an independent market valuation. In addition, they include a colorful graphics package that is useful to both management and the Board of Directors. This package provides a "big picture" snapshot of the portfolio's overall performance, as well as more detail regarding each sector's relative performance.
What-If analysis is an extremely valuable tool for analyzing the impact of both current and future changes in the credit union's balance sheet and pricing behavior, as well as in the broader economic climate. Endless future scenarios can be created, allowing you, your management team, and your Board of Directors to analyze the potential impact of these scenarios and weigh the risks and rewards of different business strategies before they are voted on.
While other ALM providers might offer some of these services as well, not many of them include them free of charge. This is just one of many reasons why we feel we offer the most value for your dollar.
Objective Advisors, Inc. is a Registered Investment Advisory firm that is regulated by the Securities & Exchange Commission.