Treasurer / ALM officer
Owns the position and wants the measurement, stress testing, and plan kept current without it taking over the quarter.
Asset/Liability Management · Services
Liquidity risk management for community banks
NineFive helps community bank treasurers and ALCO committees measure liquidity, stress it against deposit runoff and funding shocks, and keep a contingency funding plan and early-warning indicators current. The point is to know the bank can fund growth and outflows before either one becomes urgent.
The engagement
Quarterly, plus triggers
A full refresh each quarter and an update when an indicator is hit
Sources, uses & stress
Deposit runoff, funding shock, and wholesale capacity
Contingency funding plan
Built with your team, reviewed every quarter
What it is
Liquidity measured, stressed, and planned for.
NineFive keeps the four parts of a community bank liquidity program current: measurement, stress testing, the contingency funding plan, and the early-warning indicators.
Measurement
Sources and uses of funds
On-balance-sheet liquidity, cash flow from the loan and investment portfolios, deposit trends, and available wholesale capacity, laid out over a forward horizon.
Stress
Stress scenarios that reflect real events
Deposit runoff by category, including uninsured and concentrated balances, combined with loan growth and a funding shock, with runoff assumptions anchored to peer behavior.
Plan
A contingency funding plan that is usable
Stages, triggers, funding sources at each stage, and roles, written so the plan can actually be run under pressure rather than filed and forgotten.
Indicators
Early-warning indicators with thresholds
The metrics that move first when liquidity tightens, tracked each quarter against thresholds your ALCO sets, with a clear signal when one is breached.
What you get
Every quarter.
- A quarterly liquidity report with sources, uses, and forward coverage.
- Stress test results across deposit runoff, loan growth, and funding shock scenarios.
- A contingency funding plan, reviewed and updated each quarter.
- An early-warning indicator dashboard against your ALCO thresholds.
- A board summary and support in the liquidity section of your exam.
Who it is for
The people who fund the bank.
CFO
Answers to the board and the examiners for liquidity and wants a program that holds up.
ALCO committee
Sets the thresholds and reviews the indicators and the plan every quarter.
Board of directors
Wants to know the bank can fund itself through a stress event, in plain terms.
How it works
A quarterly refresh, and an update when a trigger fires.
Modeled in BankCore, owned by your ALCO
NineFive builds the measurement and stress analysis in BankCore from your call report data and deposit detail, sets runoff and funding assumptions with your team, and keeps the contingency funding plan and indicator thresholds current. If an early-warning indicator is breached, NineFive updates the analysis outside the quarterly cycle.
- Deposit and borrowing detail from you each quarter
- Runoff assumptions anchored to peer behavior
- Off-cycle updates when an indicator is hit
Why NineFive
A program that holds up under pressure.
- The NineFive team has managed community bank funding through tight liquidity, not only modeled it.
- Runoff and funding assumptions are anchored to peer data, so the board can judge whether they are reasonable.
- The contingency funding plan is written to be run, with stages, triggers, and roles.
- One relationship covers liquidity, IRR, ALCO, strategy, and peer reports.
Liquidity risk FAQ
Frequently asked questions
Basics
What is liquidity risk management for a community bank?
Liquidity risk management is the work of making sure a bank can fund loan growth and deposit outflows without selling assets at a loss or leaning on expensive wholesale funding. It covers measuring sources and uses of funds, stressing them, keeping a contingency funding plan, and tracking early-warning indicators. NineFive does this work each quarter and when a trigger is hit.
CFP
What is a contingency funding plan?
A contingency funding plan is a written playbook for a liquidity event: the stress scenarios the bank could face, the funding sources available at each stage, who does what, and the indicators that move the bank from one stage to the next. NineFive builds it with your team and reviews it each quarter.
EWIs
What are early-warning indicators?
Early-warning indicators are the metrics that signal liquidity pressure before it becomes a problem: deposit trends, concentration, wholesale reliance, unused capacity, pledged collateral, and pricing pressure. NineFive tracks them each quarter against thresholds your ALCO sets.
Deposits
How does NineFive stress deposits?
NineFive runs deposit runoff scenarios by category, including uninsured and concentrated balances, alongside a loan growth and funding shock, and anchors the runoff assumptions to how peer banks have behaved in past cycles, using call report data in BankCore.
Wholesale
Is brokered and wholesale funding capacity included?
Yes. The analysis includes Federal Home Loan Bank capacity, Federal Reserve facilities, brokered and listing-service capacity, fed funds lines, and pledged and unpledged collateral.
Pressure-test your liquidity
Run a deposit runoff scenario with us.
Tell us the outflow you are worried about, and we will show you where the bank stands and what the plan would do.