Earnings

TCT Risk Solutions is excited to announce the launch of their real time ALM Simulation tool.

Click Watch Now below to see a demonstration of the tool.

For more information contact us at (208) 939-8366

A December 12, 2019 article in americanbanker.com reports: “U.S. business debt exceeded that of households for the first time since 1991, a potential warning sign for the economy as corporate investment softens”.

Credit union managers should be constantly checking their balance sheets and loan portfolios for early warning signs of impending reductions in earnings and/or increases in loan losses.

In a December 12, 2019 article on cutimes.com, Roy Urrico writes: “TransUnion forecasts balances and originations to grow for most key credit products and serious delinquency rates to either decline or remain steady for auto and unsecured personal loans, cards, and mortgages.”

Jim DePlessis writes in a December 5, 2019 article in cutimes.com that mortgage loans have been doing relatively well  for lenders in 2019 but auto loans have decreased from a year ago.

Credit unions (particularly smaller credit unions) will find it more difficult to compete in a shrinking auto loan market.  Fortunately, there are ways to profitably reach deeper into the auto loan pool by effectively pricing risk into lower credit-grade loans.

David Bauman, in a November 13, 2019 article in cutimes.com, writes “The Small Business Administration failed to review many of its high-risk lenders between 2015 and 2017, placing billions of dollars of loan guarantys (sic) at risk, the agency’s Inspector General said, in a just-released report.”

NAFCU reports that NCUA Board Member J. Mark McWatters, in October, stated he would support – and hopes the NCUA soon acts on – a rule that would phase in CECL's impact on credit unions' net-worth ratios over three years.

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