DCG Client Results

DCG’s results-oriented approach meaningfully impacts our clients’ businesses. 

  • Helped transform how a lending team thought about loan pricing and structure for $6B institution; as a result, added roughly $50M of new loans to the balance sheet, driving well over $1M added net interest income.   ​

  • Guided $5B institution in ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​addressing ~100 MRAs related to capital planning, strategic planning, and liquidity planning. ​

  • Altered institution's thinking about investing (products/term), driving millions of dollars of added net interest income. ​

  • Designed liquidity measurement and contingency funding plans for $250M institution under multiple MOUs from its regulator.​

  • Aided development and creation of pro-forma financials for successful de novo applicant.

  • Improved net interest income by 10% for $1B institution via execution and defense of portfolio lending strategy.

  • Devised and helped facilitate rising rate “de-risk” plan for $200M credit union under regulatory order without increasing funding costs or reducing interest income levels.

  • Developed cash deployment plan for $700M bank with over $100M in cash to optimize liquidity yield by an extra 130bps while maintaining asset sensitive preference over the longer-term horizon.

  • Recommended on and off balance sheet hedging strategies for a $6B bank that reduced falling rate exposure by 50% and added millions of dollars of current and future earnings.

  • Provided $3B bank liquidity cashflow analysis and interest rate risk modeling foundation for investment strategies that increased NII by 15% and reduced falling rate risk.

  • Empowered $1B bank with retail deposit strategic advice that produced $175M of new relationships.

  • Transformed $2B bank’s interest rate risk profile and lending function with strategic advice on derivatives.

  • Supported $1B credit union with strategic guidance, risk analysis, and tolerance testing that produced double digit loan growth and doubling earnings/ROA in a one-year timeframe.

  • Provided strategic insight and education to executive management and the board of directors at credit union in need of capital to support new membership growth.

  • Guided $325M credit union in merger of equals where the two partners had strikingly different cultures and risk appetites; the combined entity is a top performer with over $1B in total assets. 

  • Used new strategies and risk modeling to support bank's redeployment of cash into mortgages, aggressively lowering deposit rates and selectively adding to bond portfolio while increasing earnings three-fold and accreting much-needed capital.

  • Advised bank on protecting earnings at risk to falling interest rates before the FOMC began cutting interest rates in 2019. Successfully added interest rate floors at a reasonable cost before market rates declined. The derivative is currently 200bp “in the money” and bank only regrets not doing more. 

  • Provided risk analysis, what-if and scenario stress testing to support $1B of bonds purchased by $4B bank throughout the pandemic and deposit surge.

  • Empowered underperforming credit union with new balance sheet strategies that resulted in ROA soaring from 40bps to 130bps and millions of dollars of real capital created over the course of three years.

  • Guided $200M community bank with no previous formal ALCO process in the creation and implementation of complete ALCO policy, framework, and education in six months.

  • Guided a $5B internet bank out of an MRA with support around deposit stability and liquidity planning.   

  • Reduced community bank’s Net Interest Expense by 10 bps by segmenting deposit base and recommending alternative pricing and tier structure.

  • Provided COVID Deposit Surge analytics for $2B community bank by demonstrating ability to safely extend investment portfolio, improving Net Interest Income levels by $2M/year.

  • Guided $750M bank with insights around deposits at risk, equipping staff with ammunition to save over $3M in valuable relationships.

  • Enabled $35B bank to support interest rate risk and liquidity assumptions with data insights.

  • Provided analytics consulting to $17B bank to support stability of PPP deposits and deploy investments.

  • Led $6B credit union analytics team on migration and retention of member certificate portfolio trends, resulting in $500M new product offering.

  • Created robust loan prepayment assumption support for interest rate risk, liquidity, and CECL life of loan calculation for $3.5B bank.

  • Created institution-specific CECL documentation for a $10B+ bank with both technical detail for modelers’ understanding and practical discussion for non-statisticians’ understanding.

  • Provided effective analysis and a detailed technical review of complex CECL vendor approach and documentation to give management of a $25B+ institution confidence that calculations were working as intended.

  • ​​​​​​​​​​​​​​​​​​​Identified shortcomings of vendor macroeconomic forecasting regressions used at a <$10B community bank. Helped management understand the practical implications of independent variable transformations on reasonable and supportable CECL forecasts.​​​​​​​​​​​

  • Validated complex ACL/CECL solutions comprising multiple modeling components, including (proprietary and vendor) econometric forecasting regressions, migration matrixes, loan-level loss rate modeling, portfolio-level loss rate modeling, aggregator models, and qualitative adjustment frameworks.​​

  • Helped improve institution’s risk position modeling by identifying missing contractual characteristics in loan file during data validation.

  • Identified assumption deficiencies through model back-testing / performance monitoring, making IRR model results more accurate.

  • Helped strengthen Contingency Funding Plan to include documentation on potential remediation plans for liquidity stress testing.

  • Helped a $2B bank work through MRA focused on liquidity management. Validation identified deficiencies in liquidity forecasting and stress testing; through customized education with management, helped to implement improved process and better understand importance of forward-looking liquidity analysis.

  • Identified deficiencies in assumptions development and support process for deposit behavior characteristics. Helped institution better understand alternatives to defend deposit assumptions and deposit stability. Strengthened model assumptions and re-focused management on strategic deposit initiatives.

  • Re-validated risk models for $2B bank after exam found third-party vendor's validation “did not provide sufficient rigor.” DCG's re-validation with effective challenge uncovered myriad input and model deficiencies that, once addressed, changed bank’s risk profile and strategic direction.

  • Identified IRR model being used inappropriately for liquidity forecasting, producing unreliable information to key decision-makers at $1.5B bank. Worked with bank to build new liquidity model, resulting in higher confidence in output.​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​

  • In fully “outsourced MRM” capacity, helped resource-limited $2B bank build and implement a right-sized model risk management framework.   ​

  • Identified multiple models in a $7B bank’s inventory that were performing the same function in different departments. Streamlined process to utilize one model across departments, saving expense of redundant models.

  • Educated and informed management team of potential exposure due to risk models not performing as intended, resulting in more focused validation and higher confidence in model results.​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​

DCG's independence is invaluable. I always know there's no hidden agenda, only a commitment to help us maximize the performance of the bank.

Scott Cattanach, CEO

Peoples State Bank

ALM Strategy & Advisory Impacts

Changing the conversation to drive success. 

DCG works with banks and credit unions that seek to change their perspectives to enable better business outcomes. Our unmatched expertise and passion for innovation are reflected across a full range of DCG client results.  

Read more to learn about the results of recent engagements, from ALM strategy through model risk management and special areas of interest including CECL and BSA/AML.

Model Validation Impacts

Model Risk Management Impacts

Data-Driven Solutions Impacts

CECL Impacts

  • Provided insight and educational clarification without undermining validator independence at $25B+ institution to help management address recommendations with precision they desired.

  • Strengthened anti-money laundering (AML) programs at $10B+ institutions. Recreated and tested rules-based strategies to identify rules that have blind spots or loopholes, create an excess number of false positives, or produce too many false negatives among high-risk customers. Helped management revise rule thresholds to ensure they provide more useful information.

  • Validated DFAST processes for over 20% of banks with $10-50B in assets, providing guidance on industry best practice modeling techniques and regulator expectations.

  • Corrected historical loss rate analysis for $25B+ financial institution by identifying type-mismatch errors that caused improper filtering of location and product type.​​

  • Conducted theoretical review and outcomes analysis for an industry-leading loan-level data provider to ensure client confidence in the accuracy and performance of forecasting models.

Quantitative Risk Analysis & Strategy Impacts

DCG’s Capital Planning solution has become an integral part of our overall business and capital planning regimen. It has enabled us to confidently grow our business and improve earnings while enhancing overall shareholder value.

Eric B. Heyer, Senior EVP Chief Operating Officer

Kearny Bank

The DCG Model Risk Management experience continues to enhance our decision-making process by providing comfort and confidence with our financial models.

ALM Manager

$8B Bank

I have told so many people how CECL went from being my number one most stressed thing of the year to so far down in my priority list of stress. I'm not even worried about it anymore.

Kim Thiel, Chief Credit Officer

Traditional Bank

The strength of DCG's quantitative bench is top notch.

President

$30B Bank

We wanted a partner who could give us another assessment on our balance sheets, challenge us to think differently, and see things with a fresh perspective.

Daniela Neacsu, Finance Manager

UNIFY Financial Federal Credit Union