Case Study: Home Federal Bank of Tennessee achieves deposit stability and model confidence with Abrigo

Home Federal Bank partners with Abrigo experts for core deposit analysis

Home Federal Bank of Tennessee, a $2.8 billion mutual savings bank based in Knoxville, faced the challenge of understanding customer behavior as interest rates rose and validating assumptions in its asset/liability and loan-loss models. With a six-person accounting team that needed to stay focused on core responsibilities, the bank turned to Abrigo—building on a relationship that began with the Farin ALM model—and engaged Abrigo Advisory Services to run a core deposit study and a loan prepayment study.

Abrigo Advisory Services analyzed the bank’s account history and delivered core deposit and prepayment studies that confirmed key model assumptions (beta and lag), revealed a strong core deposit base, and identified which prepayment assumptions needed adjustment. The studies gave Home Federal confidence with regulators, saved staff time, supported the bank’s new loan-loss reserve estimates by projecting loan lives, and enabled management to avoid hasty rate moves—demonstrable outcomes driven by Abrigo’s work.

Home Federal Bank of Tennessee

Andrew Harper

Chief Financial Officer