Consulting Services

ALL Methodology
The Bank’s Board of Directors must approve the adequacy of the allowance for loan and lease loss (ALLL) each quarter and must approve the ALLL methodology annually. MAi performs an independent review of the ALLL process and methodology. We provide consulting services that will ensure that the Bank is in compliance with FAS 5 (ASC450-10-5) and FAS 114 (ASC 310-10-35).
Asset/Liability Management
MAi offers comprehensive and customized asset and liability (ALM) management services to assist you in identification, measuring, monitoring, and controlling interest rate risk. MAi will assist in implementing the ALM management process including: ALM and investment policies, membership of the ALM Committee, the committee agenda, scheduling, and reporting requirements. Our ALM program is action-oriented and ensures decisions are formulated, implemented and reviewed, and appropriate communications take place within the organization.
Audit Committee
Attend Audit Committee to discuss findings, resolution options, etc.
Financial Planning
Long-term financial and capital planning should be based on the bank’s strategic plan. MAi has developed a model, whereby financial objectives established in the strategic plan along with growth, expansion, product development, capital expenditures, and rate and yield assumptions are incorporated into the long-term financial and capital plan. A summarized three-to-five-year pro forma balance sheet and income statement are produced. Once the three-to-five-year plan is fine-tuned and approved, the annual budget should be prepared based on the first year of the financial plan as well as goals and objectives established in the strategic plan. Long-term financial and capital plans, as well as the annual budget, should be prepared to test and validate strategic plan goals and objectives, and provide monitoring methodology. Sound planning processes will ensure that your bank performs at its highest level.
Independent Review of the Interest Rate Risk Management Process
Changes in interest rates can have a major impact on a bank’s earnings, capital, and economic value. Our review will meet the requirements of the most recent interagency guidance and covers the adequacy of related internal control systems, the appropriateness of the Bank’s risk measurement systems, the accuracy of data input into the system, the reasonableness of assumptions, and the validity of risk measurement calculations, all relative to the size and complexity of the bank. MAi will provide recommendations and suggestions for improving your interest rate risk management process. This review will ensure that your bank is properly measuring, managing, controlling, and reporting interest rate risk.
Management Studies
Management studies result in more effective management processes and will positively impact the bank’s bottom line. McCormack and Associates, inc., performs management studies which are customized to meet individual bank’s needs. Typically, the effectiveness of the bank’s organizational structure and the management team are reviewed. Management information systems and processes are evaluated. Planning processes and communication systems are reviewed as well as the content and quality of management and board reporting. Selected policies are reviewed to assure they are up-to-date and provide adequate guidelines from the Board of Directors to management. At the conclusion of the review, any weaknesses in the management process and recommendations for remedial action are documented.
Special Projects
MAI’s experienced staff is available to perform special projects. Engagements that we have completed in the past include:
  • Pre-examination preparation
  • Post-examination consultation
  • Organizational and staffing studies
  • Policy review and update
  • Merger/acquisition planning
  • Management studies
  • Organization of the lending function
  • Succession planning
  • Review of Board packet
  • Review of Board Committee Structure, responsibilities and reporting requirements
  • Job descriptions for key positions

If we cannot help with you with your problems then we will refer you to someone who can.

Strategic Planning
Strategic planning is the most powerful management tool available today. A comprehensive plan that is communicated throughout the organization ensures that the Bank’s Board of Directors, management, and staff are all working toward common goals and objectives in an organized manner. The strategic plan is a prerequisite for successful long-term financial and capital planning and annual budgeting. MAi assists community banks with strategic planning. We organize the planning process, facilitate planning meetings, and document the plan. Strategic planning goals and objectives should be validated through the bank’s financial plan, capital plan, and annual budget. Sound planning processes will ensure that your bank outperforms its competition.

Training: Onsite or Offsite

Be a Banker Training
A comprehensive training program that will transform bank employees into “Bankers”. Staff members completing this session will have a broad understanding of: employee roles and responsibilities, bank structure and regulations, an overview of banking functions, products and services, and the employee’s role in making your bank profitable.
Director's Training
MAi provides on-site Director's Training. This program educates community bank directors on their roles and responsibilities as directors. The program covers bank regulation, risks associated with the banking business, and how to identify areas that need Board attention. This program will give the Directors the tools they need to carry out their corporate governance duties and responsibilities.
Management Training
Many times bankers are placed in a management position without the benefit of any training to perform that function. This program will prepare newly appointed managers to fulfill these responsibilities. This program is also a valuable refresher course for experienced managers.
Time Management Training
Tips for making the best use of your time. If you don’t manage your time, everyone else will.
Asset & Liability Training
Customized for Board or management. This training will familiarize you with the output from the interest rate risk and liquidity models and will also identify key ratios to monitor.
Board Level BSA Training
Board level BSA training provides an overview of the Directors’ responsibilities regarding regulatory requirements, risks associated with BSA policies, procedures, internal controls, and insight necessary to avoid criminal and civil penalties.