c. myblog

October 9, 2014

How is Your Modeling Positioned to Capture NCUA’s “Chief Concern”?

In the most recent NCUA Economic Update, John Worth (Chief Economist, NCUA) outlined NCUA’s chief concern regarding the impact of a changing rate environment, given an interpretation of recent Federal Reserve comments and data analysis. See below for a key quote from the video: “If the increase in short rates is larger than the increase […]

September 18, 2014

Forecasting Considerations

Many credit unions have started their budget and, similar to prior years, stress testing key assumptions should be an important part of the budget process. Last year, we emphasized the importance of testing out different rates of loan growth. While that continues to be an important stress test to perform, provision for loan loss (PLL) […]

August 8, 2014

Testing the Budget’s Interest Rate Risk

Budgeting season is around the corner. Credit unions will spend valuable time and resources over the next few months developing budgets that achieve ROA and net worth goals. As the budgeting process moves forward and nears completion, decision-makers should ask: What happens to our interest rate risk if the budget comes true? Budgeting helps credit […]

December 5, 2013

Stress Test Your Budget

Budget season is in full swing and with that comes putting your best foot forward regarding what could happen in the future. This is never an easy task whether you are budgeting for 2014 or doing a long-term financial forecast into 2015 and beyond. In our work with helping credit unions through the budget process, […]

April 4, 2013

Shrinking Margins Yet Higher ROAs? The Sustainability Question…

Unsurprisingly, many credit union leaders continue to watch their net interest margins erode in this continued, low rate environment. In fact, net interest margins have dropped to levels not experienced in over 20 years, dropping below 3% throughout all of 2012 trending down to 2.93% as of December 31, 2012 according to NCUA aggregate data. […]

Start typing and press Enter to search