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Asset Liability Management

Maintaining the right direction is crucial in managing your investment portfolio and balance sheet. First National Capital Markets can help with a sophisticated array of reporting and analytical tools. Using one some of the most comprehensive web-based systems products in the industry, our financial strategy professionals can fulfill your portfolio management needs with customized reports on where you've been and where you're heading.

Asset Liability Management and Services

Bond Accounting & Reporting

FNCM is proud to offer an industry-leading portfolio accounting package to our investment portfolio clients. This service provides you with a complete set of monthly reports designed to meet your entire bond accounting needs. All reports are available online with just a click of your mouse, and our knowledgeable staff of financial analysts are readily available to answer any bond accounting related questions.

These reports are easy to print or save to your computer in PDF format. Included are several management reports useful to the bank's president and board of directors, as well as the accounting reports needed by your analysts to reconcile your books. Regulatory reports, including a schedule RC-B, are also provided in the standard report set. We encourage you to contact us for a "Sample Bank" user ID and password that will allow you to view or print our entire suite of reports online.

General Ledger Interface

A proprietary feature of our bond accounting package, the GL Interface takes care of your entire investment portfolio's set of accounting entries. Each business day, we provide you with an electronic file that automatically interfaces with your general ledger system. This daily file contains all the necessary accounting entries for your cash transactions resulting from:

  • Purchase & sell transactions
  • Interest receipts
  • Pay-down/Pay-up receipts
  • Called securities
  • Maturing securities

At the end of every month, we send you another file that includes your end of month bond accounting entries. This file automatically posts all the required entries for your:

  • Premium amortization
  • Discount accretion
  • Interest Accruals
  • AFS market value adjustments

We also attach a report that lets you easily view all the corresponding entries for that day. No more manual accounting tickets are needed on your part!

Executive Analytics

Also included with our bond accounting service is our Executive Analytics package, containing a series of reports created by combining your investment portfolio's data with analytical data imported from external sources. Included are graphical reports showing your portfolio's fair value and weighted average life, and cash flow and market value analyses showing expected cash flows and market values for your portfolio under several various interest rate scenarios. This report package captures and analyzes your bond portfolio's unique optionality and compares your portfolio against your peers.

Asset Liability Management and Budgeting Services

First National Capital Markets offers the most comprehensive Asset Liability & Budgeting product on the market, using the Bancware Convergence© system. Sophisticated enough to handle the needs of multi-billion dollar banks, the system is also flexible enough to accommodate banks in any asset category.

The inputs to the system come from specific account and instrument level data. Each individual bond, loan or deposit's unique characteristics are loaded into the system. These inputs lead to accurate, meaningful output data that not only satisfies bank examiners, but is also an essential tool for the management of your bank.

The output reports are customizable, and designed for measuring the liquidity and interest rate risk profile of your bank. Customizable peer groups are created to allow you to compare your performance and interest rate risk position against other banks. Our analysts work closely with your bank to create or enhance your Interest Rate Risk Management Policy and your Investment Policy. We also consult with you on a regular basis to discuss your bank's reports, the current and anticipated market conditions, and our recommendations.

Using the model, our analysts can also help you prepare and maintain your bank's annual budget. When you're comfortable with the budget numbers for the year, our reports will track actual balances and income/expenses against your original budget and against historical numbers. Included in the reports are various standard and customizable balance sheet and income statement ratios to help track and manage your bank's performance.

Core Deposit Studies

Whether it be to improve the assumptions used in your Asset Liability Management model, or just to gain a better insight into the behaviors of your non-time deposit base, FNCM's proprietary core deposit model can provide your bank with valuable information. We import your bank's specific historical data for your DDA, NOW, SAVINGS & MMDA accounts. The model then performs statistical analyses on the data to determine the implied maturities, average lives, and elasticities (% change in your offering rates in response to changing market rates) for your deposit categories. The reports are then presented in an easy to understand format that is informative and easy to apply into your  model.