Income Statement
A vital part of net income, loans and investments generate this for the credit union
What is Revenue?
This strategy lever represents the combination of loan income and investment income, divided by the total asset size
What is the Yield on Assets?
This ratio will increase when asset growth is flat but the credit union is generating profit
What is Net Worth Ratio?
Royal has roughly 350,000 of these
What are members?
$1,000,000 represents roughly this many basis points for the credit union
What is two basis points?
This is the largest component of Operating Expense
What is Compensation or Compensation/Benefits?
This strategy lever is the largest detractor from bottom-line ROA
What is Operating Expense?
This ratio will decrease when asset growth is flat but the credit union is losing money
What is Net Worth Ratio?
Royal uses this system as it's core processor
What is Fiserv DNA
During the 2008-2010 Great Recession, this type of risk devastated the industry?
What is Credit Risk?
An important part of Fee and Other Income, this is the income generated from members using their cards
What is Interchange Income?
This strategy lever represents dividend or share expense, divided by the total asset size
What is the Cost of Funds?
During challenging periods of lower earnings and a falling net worth ratio, credit unions will sometimes intentionally do this to boost their net worth ratio
What is shrink total assets?
According to NCUA data, the credit union has 27 of these
What are branches?
This type of financial statement is offered referred to as a profit/loss statement
What is an Income statement?
This type of expense will often rise when market interest rates decrease due to a recession
What is Provision for Loan Loss Expense or ECL?
This strategy lever primarily represents the combination of interchange and NSF/OD income, divided by the total asset size
What is the Fee and Other Income ratio or Non-Interest Income ratio?
The credit union can achieve $10,000,000 in total asset size if it grows at this rate for the next four years
What is 15%?
$6,000,000,000 represents this for the credit union
What is total asset size?
Taking a picture of what the credit union owns and owes as of a moment in time is often referred to as this financial statement
What is a balance sheet?
This expense often rises as market interest rates increase
What is Dividend Expense?
This strategy lever represents the dollar amount set aside for loans that could go bad, divided by the total asset size
What is Provision for Loan Loss or Estimated Credit Loss?
Assuming a net worth ratio of 10.25%, this level of earnings is required to keep the net worth ratio flat while the credit union is growing total assets 5% per year
What is 0.50%
Royal was founded in this year
What is 1964?
This ratio roughly represents the credit unions loan-to-share ratio
What is 95-100%?