Virginia Credit Union League Annual Meeting April 2, 2014

Transcription

1 Virginia Credit Union League Annual Meeting April 2, 2014

2 David A. Reed Attorney at Law Reed & Jolly, PLLC (703)

3 Management and Officials Understand Risks Accurate and Timely Financial Data Sound Internal Controls / Effective Audits Active Supervisory Committee Efficient Operations / Operating Expense Controls Written Policies that Reflect Actual Practices Realistic Budget and Strategic Plan Communication and Transparency

4 You can get your information from multiple sources: Credit Union Auditor Outside expert NCUA Which one gives you the information you need, when you need it?

5 General Credit Union Performance Income or Loss Capital Asset Return on Assets Loan to Share Business growth (loans, deposits and members) Delinquency and Charge Off

6 Net Worth Ratio Measures Capital (Equity) as a % of your assets Expression of how much you have in reserve versus your asset size Net income flows into this ratio since it increases equity

7 Return on Assets ROA Measures Net Income as a % of your Assets Expression of the profitability returned to the CU s bottom line Positive numbers indicate an increase in equity

8 Net Interest Margin Expression of the spread or difference between the $ earned on loans and the $ paid out on deposits Leads directly into the ROA, profitability and equity

9 Operating Expense Ratio Expression of the cost of operating the CU as a % of the Assets of the CU Subtracted from Net Interest Margin to flow into ROA

10 Loan to Share Ratio Loans divided by Shares Shows how fully you are putting the shares members put on deposit here to work earning $ on loans

11 Delinquency and Charge Off Ratios Delinquent loans and Charged Off loans divided by Total Loans Expression of loss (charge off) and potential loss (delinquency) caused by troubled loans

12 Credit Unions who have access to the Internet and are able to use the online system will be categorized as "Online Filing" credit unions. Online Filing Credit Unions will enter, update, and submit their profile and 5300 Call Report information in the online system every quarter. Credit Unions who are unable to use the system will complete the paper forms and return them to their regulator for input in the online system.

13 5300 Report Certification Manual Filing By signing below, I hereby certify the information being submitted is complete and accurate to the best of my knowledge and has been certified by the person below. If submitted information is not accurate, I understand I am required to submit a corrected Call Report upon notification or the discovery of a need for correction. I understand false entries and reports or statements, including material omissions, with intent to injure or defraud the credit union, the National Credit Union Administration, its examiners, or other individuals or companies is punishable under 18 U.S.C

14 Credit Union Online is a web-based program used by credit unions and state supervisory agencies to capture and display credit union information. It is comprised of two parts: Credit Union Profile Online 5300 Call Report.

15 The Credit Union Profile is a collection of general information NCUA maintains about credit unions. It includes information that NCUA maintains about a credit union. For example, credit union address, phone number, list of officials, hours of operation, and similar information. It also includes background on information systems and technology, CUSOs, and products and services. With every cycle of the 5300 Call Report, credit unions must review and certify their credit union profile.

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18 The Online 5300 Call Report system is used to collect and display the quarterly financial information of credit unions.

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21 Financial Performance Reports provide a financial summary for a credit union, including assets, liabilities & capital, and income & expense. You can select your own peer group for review. Note: Peer average ratios and aggregate FPRs for the most recent cycle are normally available within six to eight weeks following the cycle date.

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27 NCUA Research a CU Unions.aspx Call Report Form and Instructions CRF pdf

28 QUESTIONS?