BANKING INDUSTRY Credit Union Analysis

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BANKING INDUSTRYCredit Union Analysis

• PRESENTATION BY
• Mike Fitzgerald, Halle Ryan, Ed Sido, Brandon
  Storman

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CAPITIALIZATION GOAL

• CAPITAL PROTECTION
• CAPITAL ADEQUACY
• CFCU TARGET RANGE

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CREDIT RISKS

• LOAN CHARGE OFFS
• CFCU AVERAGES .29 OVER THE LAST FIVE YEARS
• GEOGRAPHIC DIVERSITY
• ECONOMIC DOWNTURN

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INTEREST RATE RISKS

• VOLATILITY
• LUCKE RECOMMENDATION
• LOW LONG TERM RISK FOR CFCU

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OPERATIONAL RISK

• INSUFFICIENT INTERNAL CONTROLS

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LEGISLATIVE RISKS

• LEGISLATION PASSAGE
• HAZARDS
• CAPITALIZATION GOALS

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TECHNOLOGICAL RISK

• COMPETITOR ADVANCEMENTS
• Y2K HAZARDS

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REGULATORY RISKS

• REINTERPRET STATUTES
• WRITE OFF OF CAPITALIZED DEPOSITS
• NCUSIF REQUIREMENTS

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SEASONAL FLUCTUATIONS

• PATTERN OF DEPOSITS
• CAPITIAL RATIO FLUCTUATION

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CFCU BREAKDOWN OF RISK