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ALM & Risk Model Validation Services

Specialized reviews to validate your models, meet regulatory expectations, and support smarter decision-making across your balance sheet.

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Understanding Risk in a Volatile Rate Environment

Interest rate shifts, funding pressures, and evolving regulatory expectations have made asset liability management more critical than ever. For financial institutions, models used to manage interest rate risk, liquidity, and expected credit losses are central to both compliance and strategic decision-making — but only if those models are built on reliable data, reasonable assumptions, and meaningful interpretation.

Saltmarsh works with banks and credit unions to validate ALM, IRR, Liquidity, and CECL models with the depth and precision regulators expect. Whether you're preparing for your annual review or responding to examiner feedback, our specialized team ensures your models are not just defensible, they’re decision-ready.

A Specialized, Independent Perspective You Can Trust

At Saltmarsh, our Asset Liability Management team is composed of professionals with backgrounds at major model vendors and within financial institutions themselves. Our experts have sat on your side of the table and understand the intricacies of your balance sheet, the assumptions that drive your models, and the scrutiny regulators bring to these reviews.

We are model agnostic and have deep experience with all major ALM, IRR, Liquidity, and CECL platforms. That independence means we can provide a truly objective assessment of model inputs, structure, governance, and output, and help you improve them.

 

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Our ALM, IRR, Liquidity, and CECL Model Review Services

Effective model risk management requires more than checking boxes. At Saltmarsh, we deliver thorough, regulator-ready reviews that go beyond validation to provide actionable insight. Whether you’re responding to exam findings, changing vendors, or enhancing governance, we offer support tailored to your institution’s unique structure and strategy.

Model Validation Services

ALM /IRR Model Reviews

Comprehensive reviews of your asset/liability models, evaluating data integrity, assumptions, policy alignment, and sensitivity to rate changes. We focus on deposit behavior, repricing assumptions, and income projections to ensure regulatory and strategic soundness. 

Liquidity Model Validations

We test the design and function of liquidity models, ensuring they accurately project cash flows and align with the institution’s risk tolerance and contingency planning framework.

CECL Model Validations

Independent evaluations of CECL (Current Expected Credit Loss) models, focused on data integrity, segmentation, reasonable forecast assumptions, and proper documentation of loss methodologies.

 

Additional Services

Backtesting and Sensitivity Analysis

We help institutions evaluate the accuracy and responsiveness of model outputs to ensure they remain predictive under changing conditions.

People and Practices. The team is well trained, knowledgeable, experienced, accessible, and demonstraates good communication skills. Fieldwork, deliverables and presentations are first class. Our team at the bank always has good dialogue with Saltmarsh, and we learn something with each engagement.
Piedmont Federal Savings Bank NC

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Get the Most Recent Updates at a Glance

Recent & Upcoming Regulatory Compliance Changes – Quarterly Update

This document includes concise summaries of the most material developments over the past quarter. It’s ideal for those who need a quick, focused view of what’s changed since the last report.

What’s inside:

  • Key updates from CFPB, OCC, FDIC, FRB, and HUD
  • Effective dates and impact levels
  • Hyperlinked citations to original rules
  • Summaries of rescinded, vacated, or delayed provisions

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Clear, Credible Reviews Backed by Experience

Saltmarsh is trusted by leading model vendors to deliver thorough ALM, IRR, liquidity, and CECL reviews. We work across all major platforms and bring a deep understanding of how models function, and how they should be used to guide decision-making.

Our team doesn’t rely on generalists. Every review is led by professionals who specialize in this area, many of whom have worked inside banks or with model vendors. That experience means we know where issues typically arise and how to improve model inputs, assumptions, and processes.

Clients count on Saltmarsh for more than validation. They turn to us for practical insight that strengthens internal reporting, supports examiner dialogue, and improves long-term financial management.

Your ALM Review Experts

Our ALM and model validation specialists bring decades of experience from inside financial institutions and model vendors. Every engagement is led by professionals who focus exclusively on interest rate risk, liquidity, and CECL modeling, ensuring your review is handled with the depth and precision it demands.

Allen, Paul

Paul Allen, CPA, CGMA

Director

Paul is a director in Saltmarsh’s Financial Institutions Advisory Group. He began his career in 1981 and has held senior roles at several financial institutions, including Chief Financial Officer, as well as with an international accounting firm.

Treadwell, Terry-1

Terry Treadwell, CPA

Senior Consultant

Terry is a consultant in Saltmarsh’s Financial Institution Advisory Group with over 25 years of experience. She focuses on asset/liability management, interest rate risk modeling, strategic balance sheet planning, and liquidity management.

Longabach, Julie-1

Julie Longabach

Manager, Financial Institutions

Julie brings over 25 years of experience in accounting and management for financial institutions. She conducts internal audits for banks and credit unions, drawing on prior roles as a CFO and former Bank Examiner with the State of Florida.

Thurman, Jake

Jake Thurman

Senior Consultant

Jake is a senior consultant in Saltmarsh’s Financial Institution Advisory Group with over 12 years of experience. He specializes in asset/liability management, interest rate risk modeling, and liquidity management, drawing on a background in portfolio management for community banks.

Get Expert Support for Your ALM and Liquidity Reviews

Asset liability and liquidity modeling are too important to leave to guesswork. Whether you're navigating model validation requirements, addressing examiner feedback, or simply looking for a deeper level of insight, Saltmarsh delivers the expertise and guidance you need.

Let’s talk about how our team can help strengthen your risk management processes and support your institution’s long-term strategy.

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