ALM overview : ALM features : ALM interface

Wisdom Asset/Liability Management (ALM) integrates the four major areas of Regulatory Compliance, Current/History, Investment Portfolio Management and Budgeting/Modeling/Income Simulation in a simple-to-use, master menu format. Options are accessible from each title across the menu; the same key strokes operate across the entire system, and online help is available for each field, screen or general concept. Wisdom ALM has three major components:

Module One: Current/History, Regulatory Compliance/Board Reporting.
In the Current/History, Regulatory Compliance component, current financial information is imported from your data processor or manually entered into this section each month to generate monthly board packets, compare budgeted and actual results, produce a static GAP report, and much more.

BOARD REPORTS: These include ALL C.A.M.E.L. and other ratios, statistical, trend, spread, and GAP analyses, as well as NCUA format financial statements with Prompt Corrective Action and Net Economic Value compliance. You can use the integrated word processor to enter and track monthly Board Minutes.

COMPARISONS: A budget-to-actual comparison report includes balance sheet, income statement and management data comparisons. Custom comparisons allow you to see a report comparing this data for any 3, 6, or 12 periods you have in history. You may store an unlimited number of periods within this system.

REGULATORY COMPLIANCE: Reports and worksheets provide three ways to figure the allowance for loan loss, reports for state and federal reserve transfer amounts, changes in equity and peer comparisons. There are also cash flow and liquid cash reports as well as Net Economic Value (NEV) compliance worksheets.

Module Two: Asset/Liability Management Modeling System (ALMS)
The Wisdom Asset/Liability Management Modeling System projects future financial positions of your credit union, called models. Models are constructed by making assumptions about future events such as interest rate changes, buying a new building, or creating new loan types. One model will become your budget; other models are used for strategic planning or income simulation.

ALM software enables you to analyze the effect of any one or a combination of events on your credit union. This analysis is called "income simulation", "risk management", or other terms. As a manager, it is your responsibility to have prepared the credit union, as best you can, for the impact of these events in advance. ALMS, the Wisdom Modeling program, prepares what you will need.

Module Three: Investment Portfolio Management System (IPMS)
The Wisdom Investment Portfolio Management System is a complete investment accounting and tracking system for credit unions. It can account for all types of credit union-authorized investments, including but not limited to: Fed Funds, CDS, CMOs, REMICS, FNMAS, and Mutual Funds. New investments are entered, and payments received are posted during the month, then, at monthend, IPMS calculates Accrued Income, the accretion of Premiums/Discounts, Book Values, and Book vs. Market Values. Investment information is automatically transferred to the Board Reports and Static GAP report for further analysis.

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ALM Features
Wisdom ALM is available in Professional ALM. The Investment Portfolio Management System is available independently.

Features	Standard
BOARD REPORTS: CURRENT  & HISTORICAL DATA
Ratio Analysis-100+ ratios including CAMEL ratios
Spread Analysis
Trend Reports
HOW DO I RATE? Predicted CAMEL Rating
Static GAP
Cost of Funds & Loan Yield Worksheets
Custom Comparisons
Growth Trends
Delinquency List Utility
REGULATORY COMPLIANCE
Allowance for Loan Loss
Reserve Transfer
NCUA 5300 Worksheet
Cash Flow
Change in Equity
Peer Comparison
Risk Analysis Net Economic Value
Net Worth / Assets Computation Worksheet
BUDGETING/MODELING/ALM
Models of Your Credit Union	21
Income Simulation with Projected Balance Sheet, Income Statement, Cash Flow, Budget vs. Actual Comparisons
Business and Action Plans
Quick Models / Prediction: Targets, Future Position
Overwrite Model
CU Product Costing and Branch Analysis
INVESTMENT PORTFOLIO  MANAGEMENT SYSTEM
Add to Wisdom for a complete back-office Management Suite	Add-On

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Wisdom ALM Interface
The interface between a Credit Union Data Processing system and the Wisdom ALM system provides accurate and extremely efficient data entry and reduces the chore of preparing for the monthly board package to a minimum.

The ALM Download file contains:
1. Every member’s loan, including type, balance, rate, income, repayments, etc.
2. Every member’s share account, including type, balance, dividend information, etc.
3. Every member’s certificate account, including type, balance, rate, maturity date, etc.
4. Every account in the chart of accounts including monthly balance and average balance.

The ALM Download file provides:
Almost 100% of the monthly board package (including detailed income and expense information). The only exception is Off-Line loan yield and delinquency (balance and average balance may be obtained from G/L if contained in a separate G/L account); and Net Income from the Balance Sheet.

What’s left for the Manager:
The import takes about 30 seconds for an average 25M credit union. After the import, the manager selects "Add a Month" from the menu and that month’s date appears for review. It should take a maximum of 1 minute per page to review and with an average of 8 pages, no more than 10 minutes before the monthly board reports and graphs can be printed.

For more information on Wisdom, please send an e-mail to wisdomsupport@fiserv.com.

Click here for Wisdom online sales presentation schedule.

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