ASSET LIABILITY MANAGEMENT



Leading ALM Solution Provider Serving Community Banks and Credit Unions:
THC provides the tools to satisfy regulatory requirements related to IRR, liquidity, credit, and budgeting while empowering users to make actionable decisions with robust optimization tools and dynamic modeling capabilities.
THC Financial Engineering enables you to seamlessly evaluate risk and profitability with what-if and pre-transactional analyses to enhance balance sheet performance.

Advantages:
• Access to extensive computational capacity for comprehensive and accurate risk simulations via our cloud-based solution;
• Ease of use with real-time support;
• Quick response concerning model enhancements and users’ requests;
• Complete control over the risk management process. Users get the advantages of both outsourcing and desktop solutions;
• Manage loan and deposit pricing while considering the impact of CECL on the net margin

Client results:
Loan pricing methodology accurately relates capital market realities to ROE.
We help $50 billion banks to deal with prepayment, basis, senior management feedback loop, hedging, pipeline management issues.


CAPITAL MARKETS ACCESS

THC Financial Engineering provides a first of its kind, peer-to-peer, whole loan transactional network.
Members may identify loan participants and optimize loan pricing using secondary market pricing.

Comprehensive analytics provide efficiency in the due diligence process and add transparency in execution.

Some of the applications:
• Loan Central
• Lending Simulations
• Fund Transfer Funding
• Single Securities Analysis
• Investment Portfolio Analysis



Untapped Opportunities:
• Enhance loan market liquidity
• Identify participation partners using our vast nationwide database
• Expand loan sale distribution channels
• Expand products to acquire and retain customers by selling to participating network banks
• Communicate with advisory services and brokers to access market information, quotes, and recommendations
• Pre-screen loan transactions to predict balance sheet profitability on every trade

THC is not a broker/dealer


CONSULTING SERVICES

We help our clients to manage risk and enhance performance utilizing consistent models.

Consulting Expertise:
· Model validation
· Core deposit account model
· Prepayment – Default models
· Loan portfolio appraisal
· Fair value accounting


Experience:
· 30 years of pioneering research in ALM modeling and model applications
· Published over 80 academic papers
· Consulting clients include AIG, OTS, Metlife, and other major financial institutions