First-responder Credit Union Newsroom

This is not a comprehensive list. In fact, we’d like to hear from others the things that they’ve seen or what they look for. We’re sure our smart readership has some things to add. This is also not a checklist. We’re not suggesting that once you’ve identified all eight of these you’ve found your troubled board. (Notice that some of these are countervailing.) But these are things that show up regularly and have been present when dealing with troubles. How to Spot a Board in Trouble No turnover on the board – Why? Lack of desire for change? Lack of recruiting? Difficulty in recruiting? Contentment with the status quo? Heavy turnover on the board – Again, why? No diversity on the board – this means you really don’t represent the demographics of your membership. (We doubt your field of membership is made up exclusively of 67-year-old white dudes.) The CEO attends all committee meetings – Is this the board’s overreliance on the CEO? Or is this the CEO's inability to ...

The Federal Reserve has announced a significant policy shift in its approach to inflation and in how it will consider other economic metrics. Practically speaking, the shift indicates the Fed moving forward will be less inclined to increase interest rates when the unemployment rate falls, as long as inflation isn’t on the rise.  In remarks delivered virtually, Federal Reserve Chairman Jerome Powell  said, “Many find it counterintuitive that the Fed would want to push up inflation. However, inflation that is persistently too low can pose serious risks to the economy.” The Fed said it is looking at averaging 2% inflation over time, a departure from its annual goal of 2%. Powell said the Fed is moving to a position of making  job growth pre-eminent and will not raise interest rates to guard against coming inflation just because the unemployment rate is low. In fact, said Powell, the Fed will look to tolerate slightly faster consumer price increa...

As of June 2020, CUNA estimates 5,354 credit unions were in operation, 15 fewer than May and 180 fewer than June 2019. During the first half of 2020, approximately 106 credit unions ceased to exist because of mergers, purchase and assumptions or liquidation, according to the Trends Report. “During a typical year, 46% of the total decline in the number of credit unions takes place in the first half of the year, which means that we can estimate the 2020 full year decline in the number of credit unions to be 230, above the 143 reported in 2019,” CUNA Mutual said in its analysis. “However, my official forecast is for a decline of 180 credit unions in 2020. The average asset size of a credit union now stands at $312.4 million, up 11.7% from a year ago, while the median asset size is $37.5 million, up 7.4% over the last year, indicating larger credit unions growing faster than their smaller counterparts.”   If you are a credit union serving first first-responders and thinking of mergin...

Focus the Meeting Agenda & Board Packet on the Important! By Tim Harrington, CPA At TEAM Resources, we believe the board packet and monthly board meeting agenda should be built around the credit union’s Purpose (Mission) and Key Strategies. This is board level stuff. As we look at the information generally provided to a board in the packet, most directors cannot easily discern what is important, such as what is supporting the Purpose and Key Strategies. Board packets generally contain a lot of information and detail that is operational in nature. The format of information presented to the board can make their job easier or harder. Out of not knowing exactly what the board really wants from the CEO and the  executive team, the CEO will usually give them a “shotgun approach.” That is very common for CEOs to do in the absence of board guidance. Start everything with a reminder of “Why We Are Here”: The Mission (Purpose) and Key Strategic Drivers. From the TEA...