Excel Bank, a small commercial bank in Southern California, has navigated various economic cycles since its founding in 2005, including the current challenging interest rate environment. With a team of around 40 full-time employees, the bank focuses on commercial real estate and deposit products in the Beverly Hills community. Excel Bank prides itself on its cohesive finance and accounting team. The small but efficient team of four has created a stable and efficient work environment over the past five years.
Despite its stability, Excel Bank faced challenges in managing interest rate risk effectively and sought a more current framework for its ALM model. The bank's previous interest rate risk model, which had been used for over a decade, was becoming outdated and limited in its capabilities. Excel’s EVP and Chief Financial Officer Hrach Kahwajian recognized the need for a more robust and dynamic model to address the bank's specific requirements and satisfy regulatory expectations. While they had considered using ALM software instead of running a model themselves, Kahwajian felt it would be a good learning experience to set up a new model and have an advisor walk his team through it. Kahwajian also sought advisory expertise to help his team fully understand their model.
