Delfi today announced the launch of its Risk/Return Benchmark, which lets U.S. banks and credit unions compare themselves with a select group of peers and see whether they are earning enough margin for the interest rate risk they carry. The tool shows institutions where they are not performing to their potential, and where there is room to improve risk-adjusted returns.

Risk-adjusted return compares the margin an institution earns with the interest rate risk it carries. When two institutions earn the same margin, the one carrying less rate risk has the better risk-adjusted return.

Built by Delfi’s PhD economists with Wall Street quantitative experience, the Risk/Return Benchmark advances the firm’s mission to bring Wall Street tools to Main Street institutions. Delfi designed it so that a community bank or credit union can see whether the rate risk on its balance sheet earns as much margin as its closest peers earn at the same level of risk.

“Taking more risk should come with more reward, but that’s not the case for too many community institutions,” said Daniel Ahn, PhD, Co-Founder and CEO of Delfi. “We’re giving banks and credit unions a way to see where their risk is paying off and where it isn’t, and we’re showing them what unlocked income potential could look like.”

According to Delfi’s analysis, more than 60% of banks and credit unions trail their best-performing peer by at least half a percentage point of projected margin, once that peer’s margin is adjusted to the same level of interest rate risk. Among those institutions, the median potential gain is more than $2.5 million in additional net interest income each year.

Delfi’s Risk/Return Benchmark offers new insights that complement Delfi’s existing balance sheet optimization product suite:

  1. Overwatch Essentials: Assesses balance sheet risk through deterministic simulations and stress tests.

  2. Overwatch Predictive: Evaluates potential strategies through probabilistic simulations and what-if scenarios.

  3. Exchange: Enables execution of capital markets strategies through curated access to financial instruments from third-party suppliers.

“Knowing you have a gap is only useful if you can close it,” said Joseph Ahn, PhD, Co-Founder and Chief Strategy Officer at Delfi. “Delfi’s Risk/Return Benchmark shows an institution where its gap is. Delfi Overwatch then helps it build a strategy to close the gap, and Delfi Exchange lets it execute that strategy through the capital markets. It’s part of the Delfi ecosystem we are building.”

As part of our launch, Delfi is offering free Risk/Return Benchmark reports generated by the tool. The report includes your bank or credit union’s:

  • 5 nearest peers: Institutions you typically benchmark against

  • Optimal positioning: The best risk-return combination your balance sheet could reach

  • Untapped income: The added net interest income available without taking on more risk

  • Recommended strategies: Specific moves you can execute to optimize your balance sheet

Contact us at info@delfi.co to request a free report and consultation, or sign up at www.delfi.co.

Our methodology

The Risk/Return Benchmark draws inspiration from the Markowitz model, a foundation of modern portfolio theory, and its efficient frontier: to achieve the highest expected return for a given level of risk. Delfi applies that lens to community bank and credit union balance sheets, comparing margins with those of the best-performing peers, restated to the same level of interest rate risk.

Delfi’s Risk/Return Benchmark covers 7,800 U.S. institutions with $10 million to $100 billion in assets, and is based on Q1 2026 Call Report data from the FDIC and NCUA.

The tool was developed by Daniel Ahn and Alexander Demyanets, who hold doctorates from Harvard University and Johns Hopkins University, respectively. Dr. Ahn previously served as Chief Economist at the U.S. Department of State and Chief U.S. Economist at BNP Paribas; Dr. Demyanets served as a senior economist at the U.S. Treasury and the Bank of England, as well as an executive director at Goldman Sachs.

About Delfi

Delfi is a New York–based firm offering an AI-native, end-to-end platform for financial decision-making and balance sheet optimization across institutions of all sizes. Its mission is to democratize advanced financial risk management, help financial institutions navigate volatile markets, and unlock sustainable growth. For more information, visit delfi.co

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