COVID-19 is already having a huge impact on the economy. But closer to home, how is it likely to affect your credit union’s financial health? Join us to learn more about the impact and how to monitor key financial gauges during this epic disruption.
THIS WEBINAR WILL ENABLE YOU TO:
- Find what the key causes of rapidly declining capital are
- Negotiate the mark-to-market accounting, and understand what declines in investment market value will mean to your capital and income
- Consider the suddenly changing allowance for loan losses (ALLL) climate and why recent historical models won’t provide the allowance you will probably need
- Understand why attracting deposits right now may be counter-productive for your credit union
- Create teams to handle specialized areas and work to protect both the members and the credit union
- Create scenario balance sheets based on different near-term possibilities
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.
WHO SHOULD ATTEND?
This informative session is designed for directors, supervisory committee members, senior management teams, operations management, department heads, technology management, finance and accounting staff, and consumer, mortgage, and commercial lenders.
- Several report formats to assist board and management:
- Large loan watch list report format
- Loans by credit tier format
- Director dashboard
- Employee training log
- Interactive quiz
SPEAKER: Tim Harrington, TEAM Resources
Tim Harrington is a Certified Public Accountant, author, and consultant who has specialized in working with community financial institutions since 1992. Since 1996, Tim has been President of TEAM Resources, a firm which provides consulting, strategic planning, and training from coast-to-coast.
A presenter at over 1,000 financial conferences, seminars, and webinars, Tim has provided consulting and training for hundreds of community financial institutions in nearly every state and four countries. Tim advises boards and senior management teams on strategy, profitability, and governance and works with staff on leadership and lending. Tim’s book “Eisenhower on Enlightened Leadership” has been used by many boards and management teams to improve internal leadership. In addition, he is a faculty member of three financial institution schools and is the author of the popular lending software “Lenders Tax Analyzer.”