Your ALCO package should tell you what to originate next.
Empyrean Outsourced ALM is asset liability management consulting for banks and credit unions. We run your interest rate risk and liquidity analysis every month or every quarter, then connect it to products that actually have margin.
You’ll know which loans and deposits are worth originating more of, and which ones are quietly costing you.
Trusted by more than 700 institutions
Your ALM, run by people who have sat in your chair.
Empyrean Outsourced ALM is a managed service for banks and credit unions. We run your interest rate risk and liquidity modeling on the Empyrean ALM engine, build the ALCO reporting package, and deliver it monthly or quarterly.
Where most outsourced ALM stops at producing the number. We tell you why your exposure moved since the last package, and what that means for your pricing, your funding, and what you originate next.
Assumptions built to your institution.
Forecast scenarios, not just a static snapshot.
Run alongside budgeting, liquidity analysis, and deposit studies.
Widen your margins on the products you’re already writing.
Most outsourced ALM ends at the risk report and leaves the pricing and margin to you. Through Empyreans outsourced ALM product analytics you can see what’s driving your margin, and where you have room to adjust pricing.
See which products drive net interest margin.
Understand what you can do about it.
Answer the two questions most balance sheets can’t.
One engagement, not two.
How Empyrean Outsourced ALM compares
Running it yourself costs you a hire. Letting your bond provider do it costs you objectivity. A standalone outsourcer leaves you nowhere to go next.
Everything your ALCO needs, from one engagement.
One engagement can cover the reporting package, the studies your assumptions rest on, and advisory that puts a practitioner in the room. Not a scope you assemble from separate vendors.
Balance sheet risk and compliance
What you get out of it: a regulatory reporting package you can defend, and forecasts you can plan against.
- IRR/ALM. An IRR and ALCO reporting package built for board and examiner review, modeling a static balance sheet plus the projections and rate environments you specify.
- Liquidity stress testing. An extension of your ALM simulations that stresses the sources and uses of funds under adverse conditions. Use it to test your balance sheet strategy, develop your contingency funding plan, and satisfy regulatory expectations.
- Balance Sheet Risk Profile Manager. Run your own portfolio what-if scenarios and see immediately how a given strategy changes your risk profile.
- Model backtest. An annual back-test measuring how well the model and its assumptions forecast income against what actually happened.
- CECL support. Loan and portfolio reporting on the cash flow characteristics your CECL (/cecl/) process needs.
Product and customer insights
What you get out of it: assumptions built from your own data, which are the ones that move your results the most.
- Deposit study. A continually updated and defensible approach to your most consequential assumptions: deposit rate betas, decay rates, and balance volatility. Built from your own data, including share certificates and member deposits for credit unions.
- Prepayment study. Prepayment speeds for each of your lending portfolios, produced by applying behavioral analytics to years of your own portfolio history.
- Portfolio insights. A curated report package on how your lending and deposit portfolios have moved and where they’re heading, by product, line of business, branch, and officer. This is where the pricing and allocation questions get answered.
Advisory
What you get out of it: a seasoned risk practitioner in the room, which at most institutions this size is the difference between having the analysis and using it.
- Advisory services. Assumption setting, results interpretation, a curated executive presentation, quarterly ALCO presentation, ALCO policy and limits advice, strategy recommendations, examination preparation, and board education. Covered in detail below.
- Examiner expertise. Empyrean advisors are invited to Washington each year to teach interest rate risk to examiners. That perspective sits behind your assumptions, your policy advice, and your exam preparation.
Banesco USA can run its models every other month now.
“Banesco USA, a Florida state chartered commercial bank serving South Florida and Puerto Rico, moved its ALM to Empyrean Outsourced Plus. Running models every other month rather than quarterly became practical, so the balance sheet can be looked at more often and decisions don’t have to wait on the calendar. Reporting and model runs also got 40 to 60% faster, with multiple hours saved per ALCO cycle. ”
— Kenneth Schoeni, CFO, Banesco USA
Frequently asked questions
