TCT Risk Solutions, located in Boise, Idaho, is a credit union-owned CUSO providing services exclusively to credit unions across the nation. TCT began its existence as Thompson Consulting and Training in 1986. TCT’s founder and Chief Executive Officer, Dr. Randy Thompson, is a “reformed banker” and taught graduate statistics and finance for years.

For 30 years, TCT has provided stochastically developed management tools for credit unions. These tools have been reviewed by CPA firms and regulatory agencies and found to be some of the best for compliance and usability.

TCT’s management tools include:

Risk Based Loan Pricing (RBL)
This management tool uses statistically derived methods to accurately price loans according to the unique risk each borrower poses based on credit scores. TCT’s RBL is one of few tools that take into account all costs incurred by an individual credit union relative to making loans for each credit grade.  TCT’s RBL allows “reaching deeper” into the loan market and assures loans are priced profitably according to operating costs and risk. 

Deposit Pricing 
TCT provides a stochastically derived model to set deposit rates. This method assures rates are set according to loan demand and other factors. By using empirical methods, interest margin is maximized, the emotional factor so common in setting rates is removed, and profitability is better assured.

Credit Migration (CM)
TCT’s Credit Migration is one of the most accurate and concise statistically-derived loan-risk management tools available to credit unions at a price no competitor can match. Among the benefits of CM is the ability to track loans individually and categorically as they improve or digress in credit quality. Problem loans are identified long before any other reporting methods are able. Another benefit of TCT’s CM is the ability to assure ALLL placements meet the new CECL requirements and accurately reflect potential loan losses.

Asset/Liability Management Modeling (A/LM)
TCT’s A/LM tool is unique in that it focuses on Earnings (Equity) at Risk (EAR) as opposed to traditional A/LM models that employ Net Economic Value (NEV). Students of NEV are aware of the weaknesses this method poses as a process to assess how interest rate changes might impact a credit union. EAR is a statistically valid method for forecasting how earnings/equity will be impacted when interest rates shift in one direction or another. A/LM package includes online tools to calculate IRR limits, a liquidity shock test and an IRR Simulation tool for measuring the impact of changes to the balance sheet or income statement, consistent with NCUA requirements.

TCT primary contact information:

Randy Thompson, Chief Executive Officer
Phone:  (208) 939-8366