ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr 5 key numbers to consider.by. Brett ChristensenThis column is an excerpt from Brett Christensen’s article, “Measuring the Success of a Lending Operation” in the premium content section of the CU Lending Advice website.A few months ago I was consulting with a credit union on the East Coast. As I prepared to start a meeting in which I would discuss with management how to fix every lending problem they had, the CEO asked me an outstanding and thought-provoking question: “Brett,” he said, “how do you judge a successful lending operation?”So, here are some thoughts on key metrics you should be using to judge the success of your lending operation:1. Loan-to-Share Ratio.This is obviously the first ratio that I look at when I consider a credit union’s lending success. To be considered a good lender, I think your LTS ratio should be above the peer LTS ratio on your quarterly call report.When I see a LTS ratio at a credit union above 80 percent, I know that I have walked into a credit union that is focused on serving its members with loans. But I will caution that I have been to plenty of credit unions with LTS ratios at or over 100 percent, and they aren’t making any money. The problem is that their entire portfolio is in mortgages and indirect auto loans, two loan types that are very difficult to turn into an above-average return on assets. continue reading »
- Act like a dog!
- Credit unions, retailers spar over breaches