How’s our new loan volume trending compared to last couple of years?
How’s our new loan volume compared to budget?
How’s our new loan volume trending?
Have we filled out Board evaluation questionnaires this year?
If not, why not? What do my peers on the Board think of my place on the Board? How can I challenge other board members to make a similar attempt to engage each other, and ensure the credit union is moving … Continued
How many questions am I asking at our board meetings?
Is the Board consistently asking our management team challenging questions?
Is the CEO ready to answer the same types of questions if he’s approached by an auditor or examiner? What can we, the Board, do to better prepare our staff for these challenges?
Is management planning on introducing any new types of fees or service charges?
Does the fee income reflect the level of service provided or made available to our members and the related expenses?
How does fee income compare to state and national asset averages? How does it compare to our local competition?
How do our salary and benefit expenses per employee compare with our peers?
What is the credit union doing to account for rising or falling expenses per member or per full time employee?
Are there any categories of expenses as a % of average assets that have had a significant increase/decrease? If so, why?
Does our fee and other income help offset expenses or subsidize member service?
How have our operating expenses grown in relation to other local credit unions?
Are we holding ourselves accountable for monitoring the progress of the goals?
Are we holding management accountable for completion of their goals?
Is management making progress on the goals they made for themselves?
Did management set realistic goals for themselves?
What are we doing to retain members? New products; lower interest rates; higher share rates, etc.?
What’s the average number of products and/or services members are getting at account opening?
What are the top reasons members are currently opening memberships with the credit union?
How are we capitalizing on these reasons?
What is the credit union doing to increase the membership?
Why did members close their memberships?
Were these accounts closed that only had the account for a loan? Did these members have larger balances? Were they delinquent members?
The CEO is requesting that the board increase the monthly provision for loan loss expense beyond the budgeted amount:
Has there been an increase in charge-offs over the last quarter? Has the management team altered the ALLL calculation? Has the credit union lending staff underestimated the amount of credit risk in the loan portfolio?
Are we on track for funding our ALLL account properly?
Is our collection and charge-off still timely and accurate?
If we have an indirect loan offering, how does its delinquency breakdown compare to the rest of our portfolio?
Do we need to review our tolerable delinquency?
Have we experienced increased collection concerns in our loan portfolio? Which types of loans has this a
Over the course of the last quarter you begin to see a month after month increase in indirect dealer loans. What questions could you pose?
Are we taking on additional credit risk in an effort to grow the portfolio?
You have noticed a dramatic increase in real estate loans on the balance sheet. What questions should a board member pose?
Is the credit union funding these loans with long term deposits? Has this increase been evaluated by the Asset Liability Committee (ALCO)?
Is our product offering comparative to other regional financial institutions?
If one type of loan makes up a significantly smaller portion of our loan portfolio, why do we keep it? If we should keep it, how can we make it grow?
Why do we have so much unused, but available, limits on our HELOCs or other line of credit loans? What are we doing to get members to use that available balance?
How, if at all, has our underwriting changed due to the economic realities over the past couple years?
What are we doing to increase the number of loans we have in our highest yielding category?
Is the credit union taking too much risk in its loan approvals? Too little risk?
If it’s too little, is the credit union targeting members for loans? Is it actively pursuing new loan opportunities? What is the team doing to increase the number of applications coming through? How does our loan risk compare with other regional and … Continued
If we took 50 applications, approved 48, but only booked 43, why did those 5 walk away?
How many loans are being taken? How many loans are in the queue at the end of the month? How many loans have been in the system for over 30 days?
Is management setting the budget evenly across the year, or is each month budgeted separately to account for year-to-year trends?
If the budgeted amount has been consistently off over the course of the year, has management considered adjusting the budget?
Why was an item more than X% off the budgeted amount? Is that difference a one-time thing? Is the budget for the year off, and does it need to be adjusted?
It’s a good idea to have a percentage difference threshold and request an explanation for any differences that exceed the threshold. Ask questions on line items where there is a large variance from the budgeted amount; or, The line item is carrying … Continued
Month after month you see suspense items on the balance sheet that do not clear to zero. Is accounting reconciling the account?
On this month’s balance sheet you see a negative swing in the investment valuation reserve account:
Which investments are losing market value? Does the portfolio have too much market risk? What controls does the credit union have to manage market risk?
The ALCO is reviewing the investment portfolio and you noticed a number of new investments made by the credit union. What questions should you pose?
Are they within policy? Are they backed by assets which contain credit risk? Are they being held to maturity? Has the credit union done its due diligence on the brokerage firm?
The CEO has made a recommendation to raise rates on specific member savings and deposit accounts:
Are we in need of liquidity to fund loan demand? Are we losing deposits due to market differential? What impact will this have on the overall net income for the year?
I notice that our cash account is X amount higher than last month. What does this do to our capital ratio or loan to share ratio?
Where did this money come from? Non-renewal of our investments; loan prepayments; increased member deposits; other?