Do You Know Your Credit Union’s Vital Signs?

Are you chasing the wrong problems?

A Case Study to Consider.

A credit union we worked with was convinced that charge-offs were causing an earnings problem. To help this credit union target the real issues, we prepared a Vital Signs Report. The data showed that charge-offs were within industry standards. The real problem was loans were being priced too low, resulting in lost revenue. This credit union was on a downward spiral trying to control charge-offs, which were not even the problem.

If you don’t know the vital signs of your credit union, you may be chasing the wrong problems.

TCT’s Vital Signs Report often uncovers:

  • Loan policies that are too restrictive = low loan to share
  • Excessive reliance on fee income = unstable earnings
  • Deposit pricing that exceeds appropriate levels = low net interest income and earnings
  • Unnecessarily low delinquency/charge-off ratios = low loan to share
  • Excessive operating expenses = decreased profitability

Related web seminar on this topic:

How to use Key Financial Indicators (KFI's)

September 6 • 2017

11 am PT • 12 pm MT • 1 pm CT • 2 pm ET

Register NOW

TCT Risks Vital Signs Report has helped credit union leaders focus their efforts, increase profitability, build equity and better serve their members. The Vital Signs Report is the roadmap to obtaining optimal financial health. TCT’s suite of solutions links to the Vital Signs Report, providing credit union leaders with robust solutions to address the findings.

TCT’s tools average a 10:1 return on investment

Upcoming TCT Risk Solutions Web Seminars:

October 18 • Expected Credit Loss Fundamentals

November 15 • Key Financial Indicators for Boards

December 13 • Crystal Ball for 2018


Upcoming VirtualCorps Web Seminars:

October 10 • Strategies to actively prepare for CECL

November 7 • Core Financial Literacy for Board Members

November 14 • Liquidity Limits: How to Comply with NCUA’s new Liquidity Guidelines

December 5 • Putting it all together: Managing CECL to Benefit Your CU

Register NOW for VirtualCorps Web Seminars