ENTERPRISE MANAGEMENT SOLUTIONS

 
ALM
REGULATORY REPORTING

Library of over 50 reports to respond to regulatory requests in a timely manner

BUDGETING
STRATEGIC PLANNING

Leading financial models at your fingertips for pro forma financial statement simulations

PRODUCT PROFITABILITY

Interactive loan rate sheet to measure impact on profitability and identify risk exposures

LOAN CENTRAL

The first transactional network for community financial institutions

CONSULTING

30+ years of pioneering research in financial modeling and model applications

CREDIT RISK
CREDIT RISK MANAGEMENT

Accurate credit risk calculations, including CECL to identify ALM performance strategies

 

OUR KEY INSIGHTS/SUCCESS FACTORS

 
 

CLIENT BENEFITS

 
ENHANCE OPERATIONAL EFFICIENCY
Asset-liability management, credit analysis (including CECL), loan product profitability analysis, and budgeting in one consistent, robust financial model
INCREASE REVENUE
Access opportunities and industry knowledge within the THC network in a single valuation and analytical framework
MINIMIZE OPERATIONAL COSTS
Prepare, discuss and represent regulatory risk requirements for financial institutions in a cost effective way
PARTICIPATE IN LOAN TRANSACTIONAL NETWORK
Supported by comprehensive, capital market conventions and pricing

35+

35+ years of financial model development

2006

Selected by a federal bank regulator as the sole provider of interest rate reports for all its regulated banks

60 M

The THC Library of Analytics is one of the largest collections in the world, containing over 60 million loan records with market-trend data for 15 years

10

Data includes over ten years of loan back testing for banks, (both prepayment and loss default analysis)

10,000

Our proprietary research includes all available regulatory CALL report data, including CRM/TFR data for thrift banks and credit unions since 2004 to incorporate interest rate risk analysis.

30

Pricing covers over 30 loan types including construction, land, 1-4 family mortgages, 2nd mortgages, HELOCs, multi-family, CRE, farmland, agriculture, commercial, credit cards, auto, personal, and other consumer loans

$14 T

$14 trillion under management using key rate durations, a THC innovation

50+

Over 50 regulatory and decision-support reports

TESTIMONIALS

Dr. Ho, I want to thank you for the work you and your team at Thomas Ho Company ("THC") have done for us over the last 4 years. Using your models and reports, we have been able to identify, monitor and manage our level of Interest- Rate Risk. With our ownership structure and certain funding mechanisms, we had some very unique liquidity levers that you were able to adjust into your models and reflect the proper value of those unique funding sources.The value of your work became readily apparent to us two years ago after we had taken some actions that raised our interest-rate risk to a level that we realized we were not comfortable with. Under the direction of our Board of Directors and using your models, we were able to make changes in our investments and funding that reduced our IRR to levels acceptable to us. The THC Simulator Portal on your website has been very beneficial and instrumental in assisting us with our investment decisions, both for acquisitions and dispositions of assets. When we had specific securities, within a few minutes of giving you the CUSIP,your team would have it loaded in our data allowing us to quickly model the changes it would have on our income,balance sheet and IRR. I want to also let you know that both the quarterly IRR reports and the pre-purchase analyses were reviewed by our regulators during our safety and soundness exams. In each case, they were complimentary of the quality of work and analysis we had in our IRR management. The regulators recognized your name and reputation,and being a client of yours, gave us more credibility with the regulators in this area of the business. Dr. Ho,I also have to mention that your personal attention to us in your quarterly phone calls to review our reports assisted us in learning more and understanding the reports in such a way as to make them more integral tools and more useful in managing our bank. Thank you for all your help.

RANDY FORD

FORMER VP/CFO HERITAGE BANK

TESTIMONIALS

I said this is the best model I have ever seen” Recently while attending a FHLB conference I overheard two bankers discussing ALM Models while they were in the pool. I walked over and introduced myself and asked if they were familiar with THC ALM model. I then told them it is the best ALM model I have ever seen. It is well designed to meet all regulatory requirements but if you use it to just do that then you are missing the best part of the model. I began in the late eighties working with ALM as a President of a small South Alabama Bank after the S&L Crisis. Back then you needed to know that is you were asset sensitive when rates went up you made more money and if you were liability sensitive you made less money in a rising rate environment. We did have models and even then they worked well. I have used many different models and often run simultaneous models for comparisons. I also installed the in-house Sendero model at one bank. Today we upload ALL our data and add the assumptions. These are passed thru the model and you get your ALM results. THC offers many different reports in its Dashboard relating to ALM but along with all that you get Financial Simulation where you can see in real time what changes you might want to make be it investments, Loans, or deposits will do to your model not just individual reports like your investments. You immediately can see the results to EVE, NII, and NI. From the Portal you have its Dashboard, Simulation Panel, all Parameter settings at your fingertips. You can make the changes yourself and even look at previous period models. I like to call it my crystal ball. I wish I had this product earlier in my career and could have fully used its power and dynamics. Best of all it is not a static model that you use and never changes. THC is in a constant state of adding modules that will ultimately cover completely all aspects of banking for both the small client and large client. Finally you have access to Tom Ho the creator and designer of the Model and I can assure you he returns all his calls. I would suggest you take some time and let Tom walk you thru the model particularly if you want an arms length model not being influenced by your Investment partners.

KERRY E. NEFF

PRESIDENT/CEO BOONVILLE FEDERAL SAVINGS BANK

TESTIMONIALS

We have been continuously impressed with Dr. Ho and his staff since we become clients in 2012. The systems THC has implemented for us are vastly complex, yet present useful information to strategically plan for the future. I appreciate the interactive reports available on the web page for analysis and for board and regulatory purposes. I believe Dr. Ho is the foremost expert in financial analysis and look forward to many more years of work together.

JOHN GITTINGS

FORMER EXECUTIVE VICE CHAIRMAN AND CFO KEYSTONE BANK

TESTIMONIALS

Effectively managing today’s balance sheet demands evaluating a myriad of alternatives in order to create competitive advantages for Central Savings and its development team. THC’s services are designed to uncover opportunities. Whether assessing our existing ALM framework or systems of our Interest Rate Risk Review process, or participating in our ALCO meetings, Thomas Ho is committed to helping Central mitigate risk and build value. THC provides for Central : ALM & Interest Rate Risk Reviews, Back Testing, and Model Validations Liquidity Reviews Customized Financial Management and Board of Director/Executive Management reporting. We at Central Savings believe that THC’s work of ALM functions, asset quality, portfolio-wide view of liquidity, spread and investment policy are comprehensively captured in their reports and evaluations that inform and guide the Board and management.

JEFF KOSOBUCKI

VICE PRESIDENT/CFO CENTRAL SAVINGS, F.S.B.

 

OUR CONTRIBUTIONS

 


Named one of the two ALM vendors of the 21st century Bank Asset/Liability Management A.S Pratt, April 2014


Mortgage Model: https://www.fhfa.gov


Selected sole provider of risk report: https://www.occ.gov


Introduced Ho-Le Model and authored Key Rate Durations. For more videos, please check our YouTube page.


Featured in Bloomberg Magazine 2008 as "The Mathematical Modeler"