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As the COVID-19 effects ripple across the economy, the board and management need solid, up-to-date information on key financial issues that may change rapidly. It’s too soon to know much about changes in members’ ability to repay loans, or about the coming effect on capital and the allowance for loan losses. That said, it’s imperative to quickly set up and monitor systems that will provide some leading indicators of the coming changes.
This session will address ways to protect as much capital (net worth) as possible. Learn ways to identify weakening loans before the payments stop coming in. Explore how to help financially troubled members stay in their loans and reduce the risk of charge-offs. Understand why attracting deposits now could be a real burden to both the balance sheet and income statement, and how to avoid a rapid increase in unwanted and unneeded deposits. Discover how to manage the ALLL at a time when the typical look-back period of 12 to 24 months suddenly makes no sense. Investments have a mark-to-market issue that could well contribute to a rapid decline in capital. Learn how to monitor this. The importance of staying in touch with commercial borrowers at a time when their worlds have been turned upside-down will also be covered.
It is important that the board and management have a broad, up-to-date set of gauges to provide a window into the credit union’s key financial issues as this crisis progresses. Having this information available will allow for faster and better decisions. Now is not a time to panic – there may even be opportunities in this chaotic period. But good data and information are the keys to keeping your credit union from becoming a COVID-19 victim.
For more information or to register CLICK HERE