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From the CEO: Managing your Balance Sheet

March 4, 2014

Dear members:

Managing a credit union’s balance sheet has rarely been more challenging. The combination of the historic low rate environment and the increased regulatory load has significantly modified the way in which credit unions fund themselves, and in turn deploy their funds into loans and investments. The tools and expertise used to optimize balance sheet structure will continue to be tested as the credit union industry migrates to a more normalized interest rate environment. As your credit union’s partner, we have the solutions, knowledge base and expertise to help you not just navigate, but thrive in this changing environment.

IRR and Balance Sheet Management

Today, a significant focus of examiners is the level of interest rate risk that credit unions have assumed over the past few years in an effort to stay profitable. Appropriately measuring the risks and returns embedded in your credit union’s balance sheet is the focus of the Asset/Liability Management team at Corporate One’s CUSO, Accolade. Accolade’s balance sheet management tools include the online ALMonitor for less complex credit unions and the more robust corpAnalytics offering, which includes customized balance sheet modeling and analysis by Accolade’s ALM experts.


Many credit unions have also seen a change in the composition of their assets, with a larger reliance on income from investments. Corporate One has a range of investment resources available, based upon your credit union’s needs. For those credit unions managing their own investment portfolio, Corporate One’s investment representatives can provide customized investment solutions, including overnight and term investments, as well as a full range of investment products, including the certificate of deposit program SimpliCD and securities through Multi-Bank Securities. For those looking for a full-service portfolio management solution, Accolade provides an investment advisory solution, which delivers independent investment analysis and trade execution, supported by a full suite of administrative and operational resources that allows credit union management to leverage our expertise and focus on serving their members.


Finally, for those credit unions experiencing increasing loan demand as the economy recovers, Corporate One offers a full suite of liquidity and borrowing solutions. Corporate One maintains the largest balance sheet in the corporate credit union network to support our members’ needs for lines of credit and term borrowings. Additionally, our participation in the SimpliCD program gives your credit union access to non-member deposits through SimpliCD issuance as an efficient and effective liquidity solution. Further, Corporate One’s unique role also allows us to offer members correspondent access to the Federal Reserve and Central Liquidity Facility (CLF). These solutions, as well as others, are ideal to fit the requirements of the recent liquidity-related regulations. Your Corporate One relationship manager can help you determine the best product to fit your liquidity needs.

Corporate One is a committed partner in your credit union’s success. For us that also means providing the total package to credit unions, and having experienced and licensed personnel on staff to support the solutions we offer. And, we go beyond just a conversation on the phone. Our staff regularly provides counsel, training and educational opportunities. For example, Accolade produced a two-part webinar series on the recent interest rate risk (IRR) regulation change, Corporate One’s VP, CIO, Bob Post conducts quarterly economic update webinars/podcasts, and in a couple of months, our integrated team will be hosting regional in-person Investment Strategy Education seminars. 

As your credit union considers its balance sheet management strategy and needs, let Corporate One help you. We have the solutions and the team to ensure your success.


Lee C. Butke