Balance Sheet Management Group

Your Balance Sheet

Stay up to date with the most recent events that could affect your balance sheet, and receive tips on how your credit union should react to these changes. To view the Your Balance Sheet archives, click here.

Asset Liability Modeling Service

Stay in control of your credit union’s financial portfolio by understanding how varying interest rates will affect your return on investment before you actually invest. Asset Liability Management (ALM) is the most misunderstood and underappreciated tool available to credit unions. Giving management the ability to make changes in interest rates and project future returns on investments, ALM is as close to a crystal ball as any credit union will have.

Alm Model Validation

To keep your credit union running smoothly, data and model assumptions need to be reviewed and validated periodically. Our ALM Model Validation service will review the sources of data to insure completeness and confirm the assumptions used in the modeling process. Mid-Atlantic Corporate offers three levels of model validation depending on the need and complexity of the balance sheet being modeled.

Model Assessment: An assessment is a general critique of the entire asset/liability management process used by a credit union and includes recommendations for improvement.  The model is reviewed as to its role in the process but not validated.

Model Validation: A non-parallel validation focuses exclusively on the model covering all aspects as defined by OCC 2000-16.  The validation covers model logic, structure, data input, and data output.

Model Validation with Parallel Run: A parallel validation includes all aspects of the non-parallel validation and, in addition, the credit union’s model assumptions and data input are run on an a second independent modeling platform, with the data output being compared to the client’s model output.

Balance Sheet Management Training

Understanding the complexity of the balance sheet while being able to determine the risks and rewards associated with it, will give managers the tools they need to make better decisions for their credit union. Mid-Atlantic Corporate will help your credit union understand how your assets and liabilities relate to the overall success of your balance sheet. We will then develop a process your management can use to project how future decisions will impact the long-term success of the credit union.

Alm/Bsm Policy Review

Your credit union’s policies should create guidelines for your management’s decision-making process. While management can use these policies to protect the credit union, an outside source should review the policies to make sure that the protection is sufficient, but not overly restrictive. As this outside source, Mid-Atlantic will review your policy to insure it conforms to all applicable regulations while accurately reflecting the desired risk profile and decision-making process of your credit union.

Board of Director Education

Board understanding and support is important for management to execute the decision-making process. Better understanding of ALM/Balance Sheet Management by the credit unions’ Board of Directors gives them the tools to understand managements focus and support managements decision making process. With management focused on your credit union’s daily operations, there is not enough time in the day to have a thorough discussion with the board on the importance of the decision-making process. Knowing this, Mid-Atlantic can perform an on-site education session for the Board, so that your management can focus on their daily tasks. The presentation will provide an overview of the importance of Balance Sheet Management while incorporating important factors to consider when making decisions on rates.

Who We Are

Bruce Six, SVP Asset & Liability Management, Mid-Atlantic Corporate
Bruce joined Mid-Atlantic in January 2008 with over 18 years of credit union industry experience where he held several position within Pennsylvania State Employees Credit Union (PSECU), the state’s largest credit union, and most recently served as an Administrator, ALM and Investments. Bruce holds an MBA from Kutztown University and a BSBA in Finance from Shippensburg University. In addition, he is an adjunct faculty member at Harrisburg Area Community College, teaching a course in Management, Finance and Business Information Systems.

Fisher-Rager Consulting
Fisher-Rager Consulting specializes in supporting the credit union industry in desired asset/liability management. Fisher-Rager Consulting works with credit union boards, management, and regulators in providing clients with independent risk measurement, ALM advisory services, and balance sheet strategy formation.

FIMAC Solutions, LLC
FIMAC Solutions, LLC specializes in providing risk management and profitability solutions to their credit union clients. FIMAC’s products and services are comprised of proprietary software solutions such as The Risk Analytics®, an ALM interest rate risk model, Balance Sheet Manager™, a “what if” analysis tool, and the easy-to-use Leading Light™ Budgeting Model. The Interest Rate Risk management report allows credit unions to understand how changes in interest rates and the resulting change in cash flows of balance sheet items affects future earnings and Net Equity Value (NEV). Armed with this information, management can perform its own dynamic “what if” analysis using FIMAC Solutions’ Balance Sheet Manager™ (BSM) software. Leading Light™ is a budget tool designed to work with data produced by the interest rate risk model and Balance Sheet Manager™. Other reports available through FIMAC Solutions, LLC include Back Test and Sources of Risk.