Lake City Bank: Boosting efficiency through streamlined ALM

Choosing ALM powered by SaaS to enable swift risk and opportunity identification, timely reactions to market volatility, and confident decision-making.

Client profile and objectives

Founded in 1872, Lake City Bank has $6.5 billion in assets and is the seventh largest bank headquartered in Indiana. Lake City Bank operates 53 offices in Northern and Central Indiana, delivering technology-driven and client-centric financial services solutions to individuals and businesses.

Lake City Bank is community-focused, community-driven and community-led. The Bank’s strategic objectives include growth that will bring more regulatory pressure as they approach the $10 billion asset mark. Lake City Bank required an ALM solution that not only meets the requirements of today but is able to support and enable the Bank’s growth in the future.
 

Challenges and requirements

Lake City Bank utilized a legacy ALM system for nearly 25 years before the solution was sunset, leading Lake City Bank to re-enter the market for an ALM solution. The requirements for the new ALM solution had to align with Lake City Bank’s strategic and growth objectives.

Apart from the ability to accurately forecast and manage interest rate risk and liquidity risk, the solution was required to:

• Provide comprehensive risk modelling and stress testing capabilities.
• Deliver efficiencies for improved performance.
• Increase transparency of data and model management for a more hands-on approach.
• Pave a path to easier adoption by improving usability.
• Be flexible to accommodate growth.

Partner reputation and support were also key considerations to ensure alignment with Lake City Bank’s core values and mission.
 

The solution and outcomes

After a careful consideration and vetting of several potential vendors, Lake City Bank chose Moody’s ALM solution. With Moody’s ALM solution, Lake City Bank transitioned to a comprehensive and sophisticated ALM system delivered via cloud technology. Lake City Bank could now leverage faster processing, more efficient data drill down and stress testing of assumptions, and an improved, modern interface.
 

Outcomes

• Processing powered by SaaS was both more streamlined and faster, aiding a swifter risk and opportunity identification, timely reactions to market volatility and confident decision-making.
• With SaaS deployment, transparency and flexibility of data model was improved, making drill downs easier and enabling a better risk understanding.
• Stress testing of assumptions became both more efficient and quicker. That, together with other advanced analytics, contributed to an enhanced holistic risk identification and management.
• A modern, intuitive look and feel of the solution improved user understanding of the process inputs and the outputs (reporting etc.).
• Partner reputation and support were aligned with Lake City Bank’s core values and mission.

"We were extremely pleased with a smooth and timely conversion process to a cloud-native SaaS solution. We look forward to leveraging the Moody's ALM model to assist in strategic planning of different scenarios for Lake City Bank."

Lisa M. O’Neill, EVP Chief Financial Officer

"For us, Moody's ALM is a flexible and dynamic SaaS solution delivered by a partner who can empower us to meet our evolving needs and achieve our strategic objectives. We are now able to more effectively manage the complex risks involved through streamlined processing, enhanced data drill-down capabilities, and advanced stress testing analytics and efficiencies -all on a modern interface for smooth adoption."

Jennifer Hurford, SVP Treasurer