10. Expanding Enterprise Risk management with Additional 5300 Call Report Ratios

We are planning to add 30+ new ratios to the 5300 Call Report Ratios dashboard in phases over the next few development years.  In addition to the Canary* ratios listed below, the first phase of the project will include a “category” assigned to each ratio that defines the level of risk.

Ratios to be added in Phase 1:

  • Loan Growth
  • Loans to Equity
  • Non-Maturity Deposits to Long Term Assets
  • Net Noncore Funding Dependence
  • Net Short Term Liabilities to Total Assets
  • Total Loans/Total Shares
  • Residential Real Estate/Total Assets

*Canary ratios are benchmark ratios that can provide early warnings about the financial performance of the credit union.

Future phases of the project will include even more ratios (listed below) and the ability to define policy limits (regulatory preference levels) for each ratio.  That way the credit union can define percentage goals for the ratios along with green, red and yellow ranges.

For more information and mockups from CEO Strategies, view below.
Ratio Mockups(ppt)

Future ratios to be added:

  • Construction and Development Loans/Risk Based Capital
  • Commercial and Real Estate Loans/Risk Based Capital
  • Residential Real Estate/Total Assets
  • Construction and Development Loans/Risk Based Capital
  • Commercial Real Estate Loans/Risk Based Capital
  • Reliance on Wholesale Funding
  • Classified Assets/Net Worth
  • Regular Shares and Drafts/Shares and Borrowings
  • Cash and Short term Investments/Assets
  • Fixed Assets and OREO’s/Total Assets
  • Yield on Average Investments
  • Solvency
  • Shares and Borrowings/Earnings Assets
  • Borrowers/Members
  • Fair Market Value Investments/Book Value Investments
  • Borrowings/Shares and Net Worth
  • Accum Gain-loss/Cost of investments Available for Sale
  • Asset Growth
  • Investment Growth
  • Net Worth Growth
  • Market (Share) Growth
  • Gross Income/Average Assets
  • Net Margin/Average Assets
  • Yield on Average Loans
  • Provision for Loan Loss/Average Assets
  • Net Charge Offs/Average Assets
  • Shares per Member

One Response to “10. Expanding Enterprise Risk management with Additional 5300 Call Report Ratios”

  1. Bruce Kotarek

    We have an off balance sheet CUSO that contains the majority of our business loans. Is there some way we can have our off balance sheet items included in the proposed ratios where appropriate? Is there a document that speaks to the formulas for the different ratios? I think it will be very important for users to understand the numbers behind the ratios.

    Reply

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