Angel Oak Advisory Services, LLC has launched a service to help financial institutions develop reasonable assumptions around the stability and repricing characteristics of non-maturity deposits (NMDs). The subscription-based service will feature quarterly industry composite reports generated from data supplied by participating subscribers, and provides an initial step towards an institution-specific study as participants build their unique historical data file. Institutions that have current deposit studies can also participate in the service and use the composite results for benchmarking purposes.
Predicting NMD behavior is never an easy task and it is especially challenging given the current economic climate. Industry estimates (FDICIA 305, OTS Decay Tables, other index-type services) are either outdated, no longer generated, or use underlying data that is limited to past studies performed at single points in time. Performing an analysis of institution-specific NMD behavior remains the gold standard, but this type of analysis requires resources and expertise that becomes cost-prohibitive for many institutions.
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"Angel Oak’s NMD Analytics is designed to support institutions at all levels of deposit modeling expertise and with varying needs for assistance," said Dan Gentry, Managing Director at Angel Oak Advisory. "What makes the service unique is the participation element. Institutions upload monthly deposit data to our secure, SSAE-16-compliant server farm. The NMD model is updated and run at each quarter end using the most recent data received. Participants then download reports that are adaptive and reflective of current market conditions."
The NMD Analytics Model is an annual subscription service that includes four quarterly reports. The first NMD industry composite reports will use monthly participant data received through June 30, 2013 and will be available for download in mid-July.
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