6. Expanding Enterprise Risk Management with Additional 5300 Call Report Ratios

We are continuing to add ratios to the 5300 Call Report Ratios dashboard in order to build a complete set of tools for your evolving risk management strategies.  This include Canary ratios which are benchmark ratios that can provide early warnings about the financial performance of the credit union.

With the 14.1 release (July 2014), we added the ability to assign a “category” to each ratio to help define the level of risk.  This project also included the following new ratios:

  • 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

The next phase of the project will include even more ratios 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.

The next group of ratios to be added:

  • Construction and Development Loans/Risk Based Capital
  • Commercial and Real Estate Loans/Risk Based Capital
  • Change in Portfolio Mix
  • Shares and Borrowings/Earnings Assets
  • Fair Market Value Investments/Book Value Investments
  • Market (Share) Growth
  • Net Margin/Average Assets
  • Yield on Average Loans
  • Provision for Loan Loss/Average Assets

Status – Was implemented in the 15.0 release 

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