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. Read More ""
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. Read More ""
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. Read More ""
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. Read More ""