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Second Opinion ALM Analysis

Examiners may ask a CU to get a second opinion ALM analysis as a form of an ALM Validation. This can be an informative exercise, particularly for institutions with a complex balance sheet. Since IRR results are highly dependent upon many assumptions the IRR results in any Second Opinion analysis are dependent upon such assumptions. Whether the CU uses non-maturity share valuation, for example, makes a material difference on the NEV results. Risk measures are affected by both market-driven forces and assumed managerial behavior in response to those forces. Therefore, ALM modeling results differ depending on the underlying assumptions. It is important to periodically re-examine the reasonableness of these assumptions. A second opinion can assist in this process. Another benefit of a second opinion is identifying potential IRR-related problems & opportunities.


ALM Reports Current Liquidity Report
ALM Executive Summary Shocked Liquidity Report
NCUA NEV Supervisory Test
ALM Assumptions
Shocked VR Investments by Maturity
Non-Maturity Share (NMS) Premium Report Shocked Member Certificates by Maturity
ALM Terminology & Definition Report 
4 Contingency Funding Stress Tests
Shocked Borrowed Funds Distribution
Financial Statement
3-year Income Sim.- No Rate Change
FR Investments by Maturity/Call Distribution
NMS Decay Rate Database
Shocked FR Investments by Maturity/Call Distribution
VR Investments by Maturity
Key Ratios
Member Certificates Maturity Distribution
Historical Key Ratios
Borrowed Funds by Maturity/Call Report
Peer Group Comparison
Current Market Value (NEV) Report
Key Ratios Graphs
Shocked Market Value (NEV) Report
5-Year Income Simulation Report
Schedule A Diagnostic Report
Average Life/Prepayment/Yield Report


  • ALM Analysis including NEV, Income Simulation, Four Contingency Funding Stress Tests & a Liquidity Analysis
  • Historical Key Ratios Analysis Peer Group Comparison
  • NMS Valuation Assumptions can be Brick & Associates’ Assumptions or the Institution can indicate Assumptions to be Used
  • Information Regarding Behavioral Assumptions
  • Conference Call to Assist in Interpreting Interest Rate Risk Profile 
  • Ramp or Immediate +300BP & when applicable, -300BP Shock Tests for Income Simulation 
  • Optional Historical Decay Analysis to Determine Historical Average Maturities of NMS


  • Annual 2-Day Strategic Conferences*

 * Strategic Conferences not included in Second Opinion fee.

The Second Opinion fee depends on the institution’s asset size and complexity. Contact Brick & Associates for a quote at (800) 332-8188 or email us at