Board Financial Literacy Training
It's important for credit union board members to have annual financial literacy training, and the Credit Union Volunteers Conference offers just that and more! Financial expert Deborah L. Rightmire is vice president of Asset/Liability Management for the Texas Credit Union League overseeing the operations of ALM Resources. She is one of the many speakers taking part in the Volunteers Conference April 26-28. Rightmire's session "Board Financial Literacy" covers:
Solving the Mystery of Credit Union Financial Statements
- Identify the components of a basic financial statement
- Identify the important and not-so-important amounts
- Identify constant balances and annual amount
- Identify market-driven and non-market income and expense sources
Initial discussion includes identification and an overview of each major category of the Balance Sheet, Income Statement and Loan Quality Report in a generic format with specific reference to the goals listed above. Your credit union’s Financial Statement package is reviewed referencing the above information.
Allowance for Loan and Lease Losses
- Distinguish the purpose for the Allowance for Loan Loss Balance Sheet account and the Provision for Loan and Lease Loss Income Statement account
- Reconcile the credit union’s Allowance account
- Review pattern of Allowance as a Percent of Loans for previous years and current period to insure adequate funding or a shift in loan quality
Risk Focused Examination
- Identify the seven risk categories as presented in NCUA Letters 02-FCU-09 and 07-CU-12
- Highlights main components of each category
11 Key Ratios Every Credit Union Board Member Should Know
- Highlight the four primary goals of asset/liability management
- Review the typical sources and uses of cash
- Discuss the “buy” and “sell” process
- Identify the 11 ratios addressing the components of capital, asset quality, and earnings
- Provide a definition, formula, industry standard result, and list of impact factors of each ratio.
- Address risk and reward for the primary impact factors of each ratio
- Review actual credit union ratio results
The Volunteers Conference takes place in St. Louis April 26-28. For more information and to register, click here.