Each year your Credit Union Foundation of Colorado and Wyoming and The Credit Union Foundation of Arizona help advance the credit union movement by promoting credit union leadership, education, social responsibility, and supporting long-term success in our credit union community. Now, here is an easy way to support the Credit Union Foundations and contribute to the success of our movement by including your Foundation Fair Share donation with your 2012 dues statement.
Fair Share is a modest 7 cents per member, or interested credit unions can make a donation at the Foundation Leadership level by donating 10 cents per member. These important donations will be used to support affordable financial services, credit union development, financial education, leadership development, and education. Additionally, your donation will be used to support Foundation initiatives in your home state.
Key financial indicators generally show stabilization and continued improvement in the second quarter of 2011, while economic conditions persist in posing challenges for the system, according to Call Reports submitted by the nation’s 7,239 federally insured credit unions to the National Credit Union Administration (NCUA).
“The second quarter financials demonstrate the continued resilience of the credit union industry,” NCUA Board Chairman Debbie Matz said. “Specifically, I am pleased to see that net income has risen significantly since 2010, and that lending has grown for the first time in four quarters. NCUA’s 2010 rule providing for short-term or payday loan alternatives has contributed to the recent growth. In the latest quarter, credit unions made 52 percent more of these alternative short-term loans.”
The Colorado Credit Union Working Group - a group of seven credit unions in the state of Colorado - has produced two white papers to assist credit union colleagues in the areas of Enterprise Risk Management (ERM) and Allowance for Loan and Lease Losses (ALLL).
A successful Enterprise Risk Management (ERM) process can help credit unions meet many challenges and uncertainties head-on by providing a framework within which managers can explicitly consider how the organization's risk exposures are changing, determine the amount of risk they are willing to accept, and ensure that they have the appropriate risk controls in place to limit risk to predefined tolerance levels. The Enterprise Risk Management White Paper was designed to educate and provide guidance to credit unions as they evaluate options and opportunities to develop their own ERM approach and build their own value.
Changing economic conditions require credit unions to understand and utilize all appropriate resources to manage loan portfolios, assist members, and accurately estimate and fund the Allowance for Loan and Lease Losses. The Allowance for Loan and Lease Losses White Paper focuses on best practices in ALLL funding, in accordance with the NCUA requirements and Generally Accepted Accounting Principles (GAAP). It examines the key elements of ALLL methodology, as well as important qualitative and environmental factors, internal controls and collection practices. It is designed to educate and provide guidance to credit unions as they look to adequately measure and account for losses in their loan portfolio — regardless of asset size.