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Spokane County Chapter “Latest Happenings in Credit Union system”. Linda Jekel, Director of Credit Unions March 10, 2011. Agenda. Economic Outlook Unemployment Housing Outside Events Health of WA State Chartered Credit Unions Closures Examination Issues What’s on your mind? Q&A. - PowerPoint PPT Presentation
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Linda Jekel, Director of Credit UnionsMarch 10, 2011
Economic Outlook◦ Unemployment◦ Housing
Outside Events Health of WA State Chartered Credit Unions
◦ Closures Examination Issues What’s on your mind? Q&A
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Less than vibrant recovery Slight upturn in economy over the next 2 years WA state similar to nation in job growth Employment peak expected in 2nd quarter 2013 WA state’s per-capita income surpasses the
nation Highly skilled and highly paid workers Strong international trade
Source:
Office of Financial Management - December 2010
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WA State 9.2%
Clark County 12.9% Snohomish County 9.8% Yakima Counties 10.5% Pierce County 9.2% King County 8.4% Spokane County 9.1% Whatcom County 8.1% Thurston County 7.6%
Source: Employment Security Department (Workforce Explorer)(not seasonally adjusted)
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City Forecast Seattle − 6.4% Bellingham − 6.0% Vancouver − 5.6% Spokane − 5.1% Yakima − 4.7% Tri-Cities + 3.4%
Source: HousingPredictor.com
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Corporate CU System
Natural person credit union failures
Congressional Regulatory Reform
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Net worth still strong at 8.9% Delinquencies at 1.8% Net charge-offs at 1.39% Allowance for loan loss reserves being funded for
economic factors, and FAS 114 ROAA (excluding Corp CUs) negative for 27 CUs Operating expenses low or being cut Prudent risk management
*Using consolidated ratios
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As of December 2010: 18 closed credit unions with $911.5 million in total assets
As of December 2009: 15 closed credit unions with $1.3 billion in total assets
Source: Bank Info Security
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Concern for asset quality◦ Looking at modifications, extensions, troubled debt
restructuring Rebuilding earnings Compliance exams? Audits? Interest Rate Risk (IRR)
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