WHAT WE DO
FMSI wants to do two things for you and your institution. We want to improve profitability by increasing net interest margin, and support management with balance sheet strategies. FMSI applies proprietary analytics to the total balance sheet. We work with management on a day-to-day basis to meet your institution's goals. FMSI works with clients to maximize shareholder value while meeting regulatory requirements for financial institutions to operate in a safe and sound manner. FMSI advisors strategize with you to work on problem areas and continue profit maximization.
Through the utilization of FMSI tools, we can provide easy-to-understand, in-depth monitoring used at multiple levels in your institution.
Investment Portfolio Management
FMSI is a Registered Investment Advisor. FMSI has a fiduciary responsibility to do what is best for each individual client. We work with more than a dozen brokers so you get the best trade execution possible. We find and analyze the best-yielding investments that complement balance sheet risk, not merely buying the flavor of the week. Pre and Post-purchase or sale analysis and documentation. Continued portfolio monitoring.
Core Deposit Analysis
The optionality associated with Non-Maturity Deposits, not only for depository institutions but also depositors, creates many challenges for the institutions holding the deposits. Not only do pricing decisions of these accounts present challenges, but the stability (or instability) of these deposits contributes to an institution's long-term success. Economic factors, competitive forces locally, regionally, and nationally, as well as local market demographics all play major roles in how management should look at and treat non-maturity deposits (NMDs.) Understanding the value of the NMDs is essential to being able to make short and long-term decisions that drive the profitability and stability of the institution.
FMSI maintains relationships with several alternative liability sources, providing institutions with a diverse mix of options for growth.
Customized liquidity reporting is used to identify short-term and long-term liquidity surpluses and needs. Liquidity stress testing is designed to actively test available liquidity sources, to better understand your institution.
Asset and Liability management (ALM) should be used as a foundation to enhance profit, and not merely as a regulatory compliance issue or historical accounting viewpoint. FMSI utilizes sophisticated, market leading tools to analyze the entire balance sheet. FMSI constructs forward interest rate curves, as defined by current market indexes, for income and valuation projections. We utilize “What-If” analysis to expose weaknesses in income and capital. We test strategies prior to implementation, allowing management to make informed decisions based on objective information. FMSI goes above and beyond regulatory reporting minimum requirements. Backtesting is utilized to test projected results to actual results.
ALCO and Board of Directors Meetings
Asset and Liability Committee (ALCO) serves as the heart of financial institutions planning and monitoring process. FMSI provides monthly analysis catered specifically for monthly ALCO and Board meetings. Net Interest Margin (NIM) analysis, investment portfolio, loan portfolio, and deposit portfolio monitoring tools are designed to show exactly what is happening at your institution. FMSI presentations to ALCO and/or the Board of Directors communicate the complex theories behind ALM in a concise and easy-to-understand manor. FMSI incorporates economic updates providing vital macro market information to ALCO and Board members, allowing for productive planning.
FMSI reports and analytics will include specialized, understandable, and customized asset/liability management workshops created directly for your institution. FMSI can communicate ALM concepts to an institution’s management and staff, top executives, and board of directors. We will also prepare each level of management to succeed in implementing recommendations.
• Monthly Investment Portfolio reporting
• Investment portfolio recommendations
• Pre-purchase research and analysis
• Post-purchase documentation
• Bond Swap analysis
• Prepayment monitoring