Asset-Liability Management IRR Modeling 2025

7/28/2025 - By Terry Treadwell, CPA

We are observing that accuracy in ALM modeling has become an increasing focus area for many of our financial institution clients.  Model accuracy is especially important to those using their ALM models and reporting to help determine and support strategic balance sheet management decisions.  In addition, we note a related increase in client use of internal review checklists, to further ensure all key modeling and reporting areas are covered and documented. 

 

To that end, we have developed for your use a related ALM-IRR model internal review checklist using the regulatory framework* (also the basis for our independent reviews) as general guidance and, best practice observations from our numerous client ALM-IRR reviews.  Though generally applicable to all financial institutions, this checklist is not intended to be a "one size fits all”. Use the items that specifically apply to your situation and further customize as needed. 

 

Click the link below to access the ALM/IRR Modeling Checklist:

Download Checklist

 

Questions? If you have any questions about this or any ALM-IRR or Liquidity area, contact a member of our Financial Institutions practice. 

 

About the Author | Terry Treadwell, CPA

 

Terry is a senior consultant in the Financial Institutions practice at Saltmarsh, Cleaveland & Gund. She has more than 30 years of experience serving financial institutions, including 10 years as the senior vice president of finance for a Florida-based savings bank. Terry began her career with an international public accounting firm and also served as a bank consulting associate for Stogniew & Associates, she provided internal audit services to community banks. Terry’s primary areas of concentration are asset/liability management including interest rate risk modeling, strategic balance sheet planning and liquidity management.

 

*Based on January 6, 2010 Federal Financial Institution Council Interagency Advisory on Interest Rate Risk Management and a supplemented with the October 8, 2013 Federal Deposit Insurance Corporation FIL-46-2013, Managing Sensitivity to Market Risk in a Challenging Interest Rate Environment.

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