c. myers live – Credit Union Thoughts on Navigating Member Giveback and New Economic Health Paths
April 16, 2020
We recognize that credit union leaders are facing uncertainties now more than ever. Conversations with our clients are happening daily to help with strategic thinking, strategic planning, and financial modeling. C. myers live is an opportunity to take these conversations to the masses.
In this c. myers live, we share some results of the participant survey questions from a recent webinar, and talk through some learnings we have experienced.
- Isolating additional ‘Member Giveback’ in this environment – how much of a reduction in earnings over the next 12 months are you willing to invest to be extra helpful to members?
- There are many ways credit unions are adjusting to this environment in order to help their members.
Scenarios: Economic Health Paths
- Of these scenarios, which do you think is the most likely? Which is the hardest path you feel you should better understand for your potential financial exposure?
- Urgent Care – Unemployment increases materially, hitting 6-8% by the end of the year, and we experience a recession through 1Q/2021.
- Hospital Stay – Unemployment increases dramatically, hitting 10% (peak of Great Recession) by 3Q. Deep recession lasts through 3Q/2021.
- Induced Coma with Swift Recovery – Unemployment hits 25% by end of 2Q. Unemployment at the end of 2020 is 10% and drops to 5% in 4Q/2021.
- Extended ICU with Longer-term Disability – Unemployment hits 20% by end of the year, another wave of virus hits 1Q/2021, and unemployment increases to 30% through 2022.
These discussions are perfect for ALCO meetings and now is the time to have your ALCO be agile and forward-thinking, even in a virtual environment.
About the Hosts:
Rob, one of five c. myers owners, has a reputation for deep, original thinking on asset/liability management and every conceivable modeling methodology, as well as analysis of investments, liquidity, aggregate risk, concentration risk, and other related topics. While Rob is a familiar face to the managements and boards of many of the largest credit unions, he has helped credit unions of all sizes tackle some of their toughest challenges, such as rebuilding capital and navigating safely and soundly with the smallest of margins. He has become quite familiar to many leaders in the regulatory world, both as an educator and a thought leader.
Learn more about Rob
Sally is a founder of c. myers corporation and one of five owners. Driven by a deep commitment to helping credit union leaders and regulators for more than two decades, her guidance has shaped c. myers’ focus on client support and leadership development. Sally has facilitated hundreds of strategic planning, governance, and business model evaluation sessions, and has spoken at countless national and regional industry conferences.
Learn more about Sally
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