This week on CreditUnions.com we look at the state of grants in the credit union movement, earnings by the numbers, how institutions can improve loan reviews, and more.
Here are four data points you need to know:
La Crosse, WI, is the largest city located along the Badger State’s western border. It is the home to three institutions of higher learning, and both Forbes and Entrepreneur magazines have named it among the best places for business and careers.
Unfortunately, it’s also a city that is aging and in need of an economic and structural facelift.
That’s why organizations, such as the non-profit La Crosse Promise, are stepping in to transform the city. With the understanding that owning a home can be expensive, La Crosse Promise connects perspective borrowers to a loan consortium of 11 financial institutions, including Altra Federal Credit Union, that have each pledged up to $1 million for borrower's financing needs.
Learn more about how the consortium aims to rebuild downtown and keep college students in state in "Rebuilding Community One Mortgage At A Time."
Guadalupe has received nearly $3 million in CDFI grants in recent years and has used these funds in different ways to help the unbanked and impoverished northern New Mexico communities it serves to become banked.
The credit union offers loans with savings components as well as a range of programs and products made possible by the bolstered reserves Guadalupe needs to take on riskier loans in places other financial institutions won’t go.
But they're far from the only financial services cooperative leveraging CDFI, NCUA, and NCUF grants to underwrite their expanding reach and impact. Read more in "The State Of Grants In The Credit Union Movement."
Total revenue for all credit unions surpassed $60 billion at year-end 2016, which represented year-over-year growth of 8.8%. The increase in total revenue resulted from an uptick in non-interest and interest income.
In addition, ROA increased 2 basis points for credit unions nationally. To see where the high and low performers fall, and learn more about credit union income and revenue at fourth quarter 2016, read "Earnings By The Numbers."
In today’s fast-paced financial services world, credit unions must run efficiently. Unfortunately, with the urgency of day-to-day operations taking precedent, it’s all too easy to let reviews of the loan portfolio slide to the end of the year and become a box to check for compliance. At fourth quarter, the total credit union loan portfolio is larger than ever before, as institutions collectively hold $879 billion in loans.
However, overlooking the valuable data that comes from these reviews means missing out on information the credit union could use for operational and origination planning. Instead of scrambling once a year, if credit unions take the right steps, they can make the process less painful and gain strategic insights.
Here are "3 Tips To Improve Loan Reviews."