When we talk with credit unions about the results of their interest rate risk analysis, we are often asked the question, how do my credit union’s results compare to my peers or to the industry? The answer is not always applicable because credit unions vary quite a bit...
Many are calling this the most sweeping change to financial institution accounting ever! What is it and what is changing? CECL is a new standard for Allowance for Loan and Lease Loss (ALLL). In June 2016, FASB issued the current expected credit losses (CECL) standard...
Mark H. Smith, Inc. recently conducted a survey on CECL readiness and planning among its clients. Based on the survey, most credit unions were aware of CECL and have given it some thought or began planning for CECL implementation. However, most of the credit unions...
Asset-Liability Committees (ALCO) may have become complacent over the last 8 years due to the lack of movement in market rates. Many credit unions I have worked with have been strategically focused on preserving or growing their loan portfolios, while deposit pricing...
As we all know, credit union net interest margins have declined since 2009. Based on call report data the average net interest margin in 2009 was 363 basis points (bps) and in September 2016 was 311 bps. Investment portfolios fully matured and reinvestment options did...
Measured by total loans, Wells Fargo Bank is the largest bank in America. It is also one of the largest when measured by retail deposits. Over the past six months, Wells Fargo has become the poster child for how not to develop and manage a sales culture....
