c. myblog

February 2, 2017

3 Common Lending Misconceptions to Avoid

In a recent blog, we posed 4 questions that you should answer about your lending experience.  Today, we want to drill down a little further into some common beliefs that have, more often than not, been disproven by the data. 1.  We prioritize service for our direct members. Do you think that the loans you make […]

January 26, 2017

Interest Rate Risk Management: Timing of Earnings Matters

Would it surprise you that some interest rate risk mitigation strategies actually add risk for a period of time?  In the end, these strategies may be effective at mitigating interest rate risk but it may take years for the effectiveness to be felt.  The challenge is that many methods used to test mitigation options, like […]

January 18, 2017

Pay Attention to Liquidity

As we conclude our budget and forecasting work with many credit unions, we continue to see expectations for loan growth to exceed share growth in 2017. Combining this trend with an assumption for higher interest rates could squeeze liquidity positions in 2017. Callable bonds may no longer get called and mortgage related assets will extend […]

January 11, 2017

Focusing on Branch Profitability, Solely, Misses the Mark: 4 Things to Consider

As consumers’ preferences continue to evolve, it is becoming painfully clear that focusing solely on branch profitability will provide an incomplete or even misleading picture for decision-makers. Think of it this way.   Traditional branch profitability analyses often reward branches for living off the past.  Consider a branch that has a large loan portfolio, creating a […]

January 5, 2017

Some Things to Consider About a Rising Rate Environment

The Federal Reserve increased the federal funds target rate to a range of 50-75 bps at its mid-December meeting.  In its forecast (the “dot plot” shown below), the Fed indicates further tightening in 2017. While credit unions have certainly lived through rising rate environments in the past, few have managed a credit union through a […]

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