Q. What do we get with FMSI services?
A. Financial Management Services provides customized reports for each client:
Monthly meetings to discuss FMSI-generated management information.
Monthly financial analytics such as several net interest margin analytics, liquidity monitors, proforma cash flow, portfolio analysis, and alternative deposit pricing.
Monthly (and sometimes daily) economic updates that examine today’s fixed income markets, the Federal Reserve’s actions, and other macro-economic news.
Quarterly asset/liability modeling that provides realistic projections in addition to rate shock analysis. Informative analysis that assists management with its business model decisions and enhances earnings. Clients have customized models to meet their specific needs.
A core deposit analysis—understanding core deposits is one key assumption in ALM modeling.
Detailed security analysis and transaction documentation for the pre-purchase or pre-sale.
ALCO meeting-ready presentations to explain where your institution is, and where it’s going.
Educational training is provided for new clients and ongoing training for existing clients as needed.
Q. What size of financial institution would benefit from FMSI's services? A. Banks of all sizes--FMSI's focus is community financial institutions.
Regulators require all institutions to operate in a safe and sound manner.
Investors and management are interested in enhanced income and proper interest spread analysis.
Q. Do we need this? We already have someone doing bond accounting and we have asset liability management software.
A. Financial Management Services isn’t about merely doing the regulatory ALM minimum with rate shocks and gap reports. Asset/liability management can be used to enhance profit and not merely as a regulatory compliance issue. ALM with the associated interest rate risk should be viewed on a prospective, proactive basis rather than from a historical accounting viewpoint. FMSI utilizes non-rate shock interest rate paths, back testing of model assumptions, and graphic presentations for easy board and management evaluation.
Q. How much will it cost?
A. Financial Management Services should be a profit center. FMSI clients have experienced increased earnings (well in excess of the FMSI's cost) as a direct result of the services provided.
Q. Where can we hear you speak about interest rate risk and asset/liability management? A. Though we don’t give “informational seminars,” Financial Management Services professionals are periodically invited to conferences to give presentations on interest rate risk and asset/liability management. We gave presentations on asset/liability management and interest rate risk management at several FHLB Topeka conferences in 2010: