c. myblog

August 16, 2012

Budgeting For Loan Growth

In this uncertain economy, many credit unions are seeing loan growth come in below budget.  Others are experiencing loan growth that meets their budgets; however, they are still below budget on loan interest income.  Why?  Interest rates have fallen since their budgets were created and competition for loans has resulted in the credit union getting […]

July 27, 2012

Strategic Plans And Quantifying Risk

In the recently issued Interest Rate Risk Questionnaire, the NCUA devoted an entire section to evaluating if decision-making is informed by interest rate risk measurement systems.  The guidance specifically references interest rate risk “what-if” testing in conjunction with strategic plans and operational decisions—and that “what-if” analysis outcomes should be documented within the strategic plan to […]

October 14, 2011

Setting Board Expectations

Setting board expectations has always been key.  However, it is increasingly important as many credit unions are seeing their ROA jump—largely due to falling provision ratios.  Over the last two years, the industry average PLL has declined from its peak of just over 1% in 2009 to about 0.50% as of the first quarter in […]

September 15, 2011

Auto Lending: The Concerning Slow Decline

Traditionally, auto loans have been the “bread and butter” of credit union loan portfolios.  However, 1st mortgages have claimed that honor with short- and long-term trends showing continued declines in auto loans as a percent of total loans for the credit union industry’s balance sheet.  Auto loans have been consistently decreasing from roughly 40% of […]

August 11, 2011

Thoughts On Checking Account Fees

Given the current challenges that financial institutions are facing, free checking has been proclaimed a soon-to-be thing of the past.  Many banks and some credit unions have already moved away from free checking, but many credit unions are wrestling with the idea.  Here are a few of the arguments we’ve heard against charging for checking […]

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