Internal CEO Candidates, Deposit Specials, And The Bottom Line

Five can't-miss data points featured this week on CreditUnions.com.

 
 

This week, CreditUnions.com looks at internal CEO candidates, deposit specials, income drivers, the NCUSIF merger, and more.

Here are five don’t-miss data points for the week:

20 Years

When Andy Grimm took the helm at Apple Federal Credit Union in July 2017, he brought with him more than 20 years of service at the mid-Atlantic credit union.

As executive vice president and chief operating officer, Grimm was a natural successor to retiring CEO Larry Kelly. However, the vetted employee who had overseen branch openings, mergers, and more still had to earn the role in the top spot.

In "Tips To Help Internal Candidates Succeed As CEO," Grimm discusses the ins and outs of transitioning from executive suite member to holder of the corner office.

87.8%

Over the past three years, the loan-to-share ratio at Central Willamette Community Credit Union has steadily eclipsed the average for credit unions with $250 million to $500 million in assets. In second quarter 2017, the Oregon-based credit union’s ratio was 87.8% versus 75.1% for its asset-based peers.

The credit union is well-capitalized, with a net worth ratio of 9.21%, but it needed to attract deposits to keep up with its eight consecutive quarters of double-digit loan growth.

That’s why in August, Central Williamette has run two campaigns designed to attract deposits and increase awareness of the institution. See how these specials attracted deposits and increased community awareness in "2 Ways To Boost Savings."

$1.2 Trillion

For the 10th consecutive quarter, credit unions increased share balances. Share balances increased a record-breaking 8.4% and neared $1.2 trillion in the first quarter of 2017.

To learn more about this side of the balance sheet, including portfolio composition, penetration, and growth rates, read "Shares By The Numbers."

4

Income at America’s credit unions form a kind of four-legged stool, with one of the legs a lot longer than the others.

Lending accounts for nearly two-thirds of the movement’s income. Add in investments, and net interest income totals 72.8% of the movement’s $5.5 billion in annualized revenue. Meanwhile, non-interest income — fee income plus other operating income — currently accounts for 27.3% of the take.

But this balance might soon be shifting. Learn why in "How To Boost The Bottom Line While Really Trying."

$1.8 Billion

The NCUA has proposed merging the Temporary Corporate Credit Union Stability Fund (TCCUSF) into the National Credit Union Share Insurance Fund (NCUSIF), and soon.

Sounds good, but the problem is that the way the regulator plans to execute the merger would cost credit unions much of the $1.8 billion that should be going back to the its rightful owners, the members of America’s federally insured credit unions.

In "What's $1.8 Billion Between Friends?" learn more about the merger and how to weigh in on the proposal, which is open for comment until Sept. 5.

Happy Reading!

 
 

Aug. 25, 2017


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