Asset-Liability Modeling & Evaluation

• VolCorp’s trained staff can assist you with the evaluation of the risk on your balance sheet through our Asset Liability modeling service.
• VolCorp will illustrate the risk on your balance sheet and how this risk relates to NCUA parameters, as well as examine the causes of these risk changes from period to period.
• VolCorp will provide a full report with Executive Summary, Net Economic Value (NEV), Net Interest Income (NII), Duration, and Repricing Gap.
• VolCorp’s staff will always be available for report interpretation, ALM advisement, and assistance with budgeting and forecasting issues.

ALM Analysis

Reports include Current and Historical Key Trends and Ratios, estimated CAMEL, ROA Analysis, and One-year Cumulative Gap. The reporting package includes charts that graphically illustrate Capital Trends, Capital Use, Asset Growth, Loan Growth, Investment Mix, Share Mix, Delinquencies, Charge-offs, Operating Expenses, Net Interest Income, and Net ROA. A narrative overview provides insight on the most critical trends facing your credit union. This service is offered monthly (reports only), quarterly, and semi-annually.

ALCO & Investment Policy Design and Review

• VolCorp’s trained staff will review your existing ALCO & Investment Policies and draft revisions necessary to comply with NCUA regulations.
• If no policies currently exist, VolCorp advisors will assist your management in their formulation.
• These policies will provide the basics to design appropriate risk assessment and portfolio strategies unique to your credit union.

ALM Validation Service

• VolCorp’s trained staff will do a thorough review of your ALCO and ALM Processing and make recommendations.
• Using our own software, VolCorp will run your ALM model and compare critical risk measures from both models.
• VolCorp will examine the causes of any discrepancies between your model and ours and make recommendations for modifications of key assumptions within your model.
• The VolCorp staff is happy to assist you in ALM theory and discuss the reasoning behind key assumptions within your model.

Investment Portfolio Consultation

Based on your internal ALM review or your VolCorp ALM report, VolCorp’s trained staff can make recommendations with regard to which investment types best suit your yield requirements while staying within your risk tolerance parameters. In addition, VolCorp can actually test securities in your ALM model to determine their impact on your NEV risk profile. These investment strategies can then be applied to your current portfolio to determine the best portfolio mix for your credit union.

Upon working with your ALM consultant to determine the appropriate investment types for your portfolio, VolCorp’s investment consultants can help you find the specific investments that fit your risk profile. Our investment consultants can be reached at extension 234 for Phillip Cochran or extension 264 for Andrea Donaldson.

ALM & Investment Seminars

The VolCorp staff has trained professionals who periodically provide seminars to credit unions with regard to their ALM and Investments. These seminars are free and do not require that the VolCorp member subscribe to any particular ALM or Investment service. Please periodically check the VolCorp website for upcoming seminars and training sessions.

Financial Analysis

VolCorp has the capability to routinely analyze your investments for inherent risks in different interest rate scenarios. This will allow your credit union to develop and maintain the appropriate portfolio for your credit union.

Our investment advisors can also serve as an independent third party any time you need information on a security, whether it is ratings, pricing, yield analysis or just a description.

On-Going ALM & Investment Assistance

At your convenience, advisors from VolCorp will come to your credit union and train not only your management staff but also your Board of Directors on investments.

Training includes, but is not limited to:

• A thorough review of types of investments approved for credit unions.
• A review of the impact that various investments can have on your balance sheet.
• A thorough overview of your ALCO & Investment policies and their implications.
• A thorough review of the rules and regulations that govern credit union investments.

Please contact Paul Shorkey at 800-470-3444 or 615-232-7900, extension 262.