Last Thursday and Friday, Callahan's held its Quarterly Credit Union Trendwatch Call with Chip Filson leading a discussion on the latest topics in the credit union industry. Part of the discussion was centered on dealing with the recent large share inflows and managing a growing investment portfolio.
Mike Lord, CFO of State Employees Credit Union of North Carolina ($10.4B) talked about how his credit union has handled an 8% drop in their loan/share ratio, which has been the main factor in a 60% growth in investments which have reached $3.1 billion.
Over the past year, SECU has taken a ''Safety-Liquidity-Yield'' investment approach, focusing first on safety, second on liquidity, and lastly taking a look at yield. As a part of their ongoing plan, they ''gravitated from agencies to corporate deposits'' which actually pay a slightly higher yield. With more investments than all but the largest corporates, SECU, in order to avoid flooding any individual corporate with shares, is now ''a member of nine corporate credit unions'' and ''will probably join a few more.''