c. myblog

November 15, 2010

Do Lower PLL Ratios Mean The Credit Crisis Is Over?

On the surface, recent credit union provision for loan loss (PLL) trends seem encouraging; industry-wide through second quarter 2010, the ratio of PLL to average assets has declined by 31 basis points to an annualized ratio of 0.81%.  However, delinquencies and charge-offs as a percent of loans have only decreased by 11 basis points and […]

October 15, 2010

The New Word of Mouth: Revolutionizing How Younger Members Find You

Nobody will argue that the way we search for information over the last 10 years has changed dramatically.  Gone are the days of bulky Yellow Pages and encyclopedias; if someone—especially the younger generation—wants information, they turn to search engines.  According to the Pew Internet & American Life Project (January 2009), 87% of Gen Y use […]

October 7, 2010

43.4 Million People…

Consider that… “25.5% of consumers, nearly 43.4 million people now have a credit score of 599 or below.” Who knows where credit ratings will be when the economy settles down.  We think it would be helpful for decision-makers to have a strategic discussion on the role credit scores will play in lending decisions: Will the […]

September 9, 2010

Annual Long-Term Financial Planning Process: Include A Deflation Scenario

We strongly recommend that credit unions annually invest the time to forecast financial performance for at least three future years.  The baseline forecast should compliment the strategic plan and include the cost of major initiatives, as well as expected growth trends.  If the baseline does not produce satisfactory performance, determine what changes could be made.  […]

September 2, 2010

Are Your Second Mortgages Secured?

As we discussed in our April post, Bankruptcies on the Rise and the Evolving U.S. Debt Burden, bankruptcies have been rising at an alarming rate this year. The trend is likely to continue—it will be interesting to note how the situation evolves (since 1st quarter) when the U.S. Judiciary releases second quarter figures in the […]

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