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
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?
How are we capitalizing on these reasons?
Were these accounts closed that only had the account for a loan? Did these members have larger balances? Were they delinquent members?
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 taking on additional credit risk in an effort to grow the portfolio?
Is the credit union funding these loans with long term deposits? Has this increase been evaluated by the Asset Liability Committee (ALCO)?
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
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
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?
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?
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?
Where did this money come from? Non-renewal of our investments; loan prepayments; increased member deposits; other?