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Home : Products and Services : Institutional Investing : Fixed Income : Portfolio Accounting : Asset Liability Management : Common Questions

Common Questions

Answers:

  • What makes your service better than the other solutions available in the marketplace?

    Four things make this solution better than competitive solutions:

    1. Precision Modeling - No other outsourced ALM solution has the capability to utilize your investment, loan and deposit cash flow and rate detail, and utilize it in a manner that does not require you to fill out any data forms. Our usage of data, combined with our modeling techniques puts your ALM information on a level of credibility otherwise attainable only with large G/L based internal models that cost tens of thousands of dollars.
    2. Very User Friendly Reports - The BMO Capital Markets ALM reports set a new standard for clarity and ease-of-use. They are unique in their style and in their ability to communicate complex information quickly and in a straightforward way.
    3. Regular Advising - Ours is the only outsourced ALM solution that includes regular advising and consultation sessions each quarter.
    4. Price - Our pricing is below most other outsourced solutions that typically don't offer a fraction of the product quality and service that we do.

    The BMO Capital Markets ALM Service is superior to other outsourced ALM solution in the industry. The combination of precision, ease-of-use, service, and value make the BMO Capital Markets ALM Service a logical choice for any banker who wants to get serious about Asset/Liability Management.

  • How many banks use your service?

    Bank Reporting Sciences, our partner that prepares and supports ALM information, has relationships with roughly 300 community banks in 26 states throughout the nation.

  • How do the regulators regard your information?

    Although the regulatory bodies will never directly endorse an ALM reporting and advising service, the we’ve been told by our bank clients that they have received positive comments about our ALM solution in the examiners’ comments to the bank from OCC, the FDIC, and state agencies.

    We believe that the four aspects of this product that make it so accepted are:

    1. It provides a level of precision to small and mid-sized community banks that is usually accessible only to large institutions.
    2. The report presentations make it very easy for directors to quickly grasp critical information.
    3. The emphasis we place on managing risks through policies makes the process easier for our clients.
    4. Our low fees make this full-service solution accessible and cost-effective for small and mid-sized community banks.

  • What size bank do you typically work with?

    The asset size of our typical client falls within the $100 to $300 million range. However, we serve clients from $18 million to $16 billion in total assets.

  • Do I have to be a BMO Capital Markets Bond Accounting System customer to utilize your ALM services?

    No. Our services are open to any bank that does business with BMO Capital Markets.

  • If my portfolio accounting is handled by a firm other than BMO Capital Markets, how can you access my investment detail?

    If your portfolio accounting is handled by another broker/dealer, simply request an electronic listing of your bond inventory. We successfully handle data downloads from Vining Sparks, First Tennessee, Morgan Keegan and many others.

    For our basic file specification for an investment download, refer to What Information Do You Need.

  • After I submit our investment information, how long will it take to get my results back?

    Typically, our turnaround time is 3 to 5 business days.

  • Can I get my completed information emailed to me?

    Yes. After we have completed your information, a PDF file of your results will be automatically emailed to you.

  • Can I have "what if" scenarios performed?

    Yes. Each quarter you can request up to 5 "what if" scenarios at no extra fee. Additional scenarios are billed at $125 per scenario.

  • How much does your service cost?

    Our annual service fees are based primarily on the size of your institution. To find your annual service fee, refer to the invoicing question.

  • What type of training and consultation will I receive as an ALM customer?

    Regular advising is at the heart of the BMO Capital Markets ALM Service and is one of the main qualities that differentiates our service from others in the field. Each quarter, a specialist from our partner, Bank Reporting Sciences, will spend 1/2 hour with you discussing by phone your ALM position, reviewing ALM concepts, and going over tactics that make sense for your bank.

  • Tell me more about your partner Bank Reporting Science (BRS).

    Bank Reporting Sciences (BRS) was formed in 1998 and specializes in asset/liability management outsourcing solutions for community banks. Currently, BRS has relationships with over 270 community banks in 26 states. BRS has built its reputation on making the complexities of asset/liability management, particularly interest rate risk, easy for bankers and directors to understand, and attributes its success to 3 main principles: a strong belief in education and support of its clients, easy-to-understand presentations, and optimal modeling precision.

    For more information about BRS, visit www.bankreportingsciences.com.

  • How do I get started? What information do you need?

    The list below details the input materials we need and provides a brief description of what we do with the respective materials. Our goal is to utilize information that you have readily on-hand, can acquire quickly and efficiently, and without incurring any expense. We don't ask for anything that does not directly contribute to a superior ALM analysis.

    If there are materials that you cannot readily obtain, let us know. We are flexible and we will work with you to make the most of the input materials you have readily available. Your input materials should be as-of the same reporting date, or as close as possible to the same reporting date.

    # Input Material Description of Use
    1 Current Offering Rates on Loan and Deposit Products The current offering rates for your loan and deposit products allows us to customize the default marginal prices to your institution thus doing away with the need for assumptions.
    2 The Call Report Transmission File The Call Report provides a good foundation of information for general balances, income and expense items, loan quality, and risk-weighted capital.
    3 12-Month Budget With your 12-Month Budget, we can factor your forecast for balance and income growth into the calculations of Interest Rate Risk and Liquidity Risk. This is usually sent in a spreadsheet or a printed schedule.
    4 Detailed Inventory of the Investment Portfolio*
    *Bond Accounting System users see below     		The Detailed Inventory of the Investment Portfolio allows us to precisely model your securities at the instrument or group level. Instrument level detail can be a printed inventory or in an electronic file. Click the link below to download our data file specifications.
    5 Detailed Cash Flow & Rate Data on Loans Detailed Cash Flow & Rate Data on Loans allows us to precisely model your loans at the instrument or group level. Group level detail can be a printed report. Instrument level detail should be in an electronic file. Click the link below to download our data file specifications.
    6 Detailed Cash Flow & Rate Data on Deposits Detailed Cash Flow & Rate Data on Deposits allows us to precisely model your deposits at the instrument or group level. Group level detail can be a printed report. Instrument level detail should be in an electronic file. Click the link below to download our data file specifications.
    7 Detailed Cash Flow & Rate Information on any FHLB Advances Detailed Cash Flow & Rate Information on any FHLB Advances allows us to model each Advance at the instrument level. This is usually sent in a spreadsheet or a printed schedule specifications.

    Download this table

    Bond Accounting System Users

    If your portfolio analytics and bond accounting are handled on our Bond Accounting System, there is no need to send any materials pertaining to your investment portfolio. We will automatically take advantage of the cusip level detail at our disposal.

    Electronic Data File Specifications

    Download our electronic data file specifications

  • How do I send my information?

    We do not use contracts. The only form you need to complete and send along with your input material is our Service Transmittal Form. The Transmittal Form serves the following purposes:

    It provides...

    • a record of your contact and service information.
    • a record of our assertion to keep your information confidential.
    • your authorization for BMO Capital Markets and BRS to use your information for the service(s) you have request.

    It is also...

    • a checklist for the input materials you are sending.
    • a means of telling us the dates of your next Board and ALCO. meetings, and regulatory exams.
    • a way of letting us know how many report sets you need.
    • a record of where to send your completed Transmittal Form and input materials.

    Completing the Transmittal Form

    1. Complete Your Transmittal Form. When you click the link below, and the Transmittal Form activates, you will see gray fields and check boxes. These can be conveniently filled and checked using your keyboard.
    2. Save Your Transmittal Form. Be sure to save the Transmittal Form to your hard-drive after you have completed it.
    3. Print Your Transmittal Form. Once you have printed your Transmittal Form, be sure to sign in Section 4 - "Authorization".

    Sending Your Transmittal Form

    Standard Delivery:
    BMO Capital Markets ALM Services c/o
    BANK REPORTING SCIENCES
    PO Box 2159
    Columbia, MD 21045-1159

    Overnight Delivery:
    BMO Capital Markets ALM Services c/o
    BANK REPORTING SCIENCES
    6331 Wild Swan Way, Suite 204
    Columbia, MD 21045

    Email:
    data@bankreportingsciences.com

  • How is invoicing handled?

    Invoicing is handled on an annual basis. You will receive an invoice directly from BANK REPORTING SCIENCES. Annual fees for our standard ALM Services are based mainly on the size of your institution. Additional fees may apply for customized services and "ad-hoc" requests.

    To determine your standard service fee, see the chart below:

    Bank Asset Size Annual Fee
    Under $25 million $1,500
    $26 to $100 million $1,700
    $101 to $300 million $2,000
    $301 to $600 million $2,200
    $601 to $1 billion $2,500
    Over $1 billion Negotiable

Main Contacts

James P. Fitzgerald
jim.fitzgerald@bmo.com
(312) 845-4140

Meet the team