Friday, December 18, 2009 – 12:45
Will it be hard to get everything checked off your credit union’s Wish List this year? You are not alone! Credit union’s earnings are under tremendous stress! Courtesy pay and interchange income is questionable. Investments are yielding under 1%, in addition to the ongoing insurance assessment debacle. We cannot keep doing the same thing we have been doing! You must get money loaned out and losses under control. We tell our members to start saving for Christmas next year beginning in January. Let’s do the same! Make sure by Christmas 2010, we’re waking up with visions of sugar plums dancing in our heads! NAUGHTY LIST: Negative loan growth? Loan yield less than 8%? Delinquencies & charge-offs rising simultaneously Provisions hurting bottom line? Relying on FICO score for decision making? Saying “no” on a loan request? NICE LIST: Moving money from investments to loans Growing unsecured loans to 25% of portfolio Tracking net yield by loan type & paper grade Promoting D & E auto lending Reducing loan losses to less than .6% while maintaining positive loan growth