Reverse Tier Savings, The CECL Method, Do More By Doing Good

Five can't-miss data points this week on

This week, finds one credit union looking to give more to those members less; identifies the good, the bad, and the reserved from CECL methodology, asks if the industry is doing enough, and more.

Here are five can’t-miss data points:


The credit union industry’s loan-to-share ratio hit a first quarter high of 82.3% as of March 2019, continuing a half-decade-long trend of loan growth surpassing deposit growth. Canvas Credit Union is no exception. At first quarter, Canvas’ 96.8% loan-to-share ratio ranks 10th highest among Colorado credit unions and third among the state’s seven credit unions over $1 billion in assets. In fact, over the past five years the credit union’s loan-to-share ratio has jumped more than 35 percentage points to its current rate. That’s one reason why, in November 2017, Canvas introduced its Reverse Tier Savings Account, which turns the idea of a certificate product on its head.

Read: The Reverse Tier Savings Account That Gives More To Those With Less


Effective Jan. 1, 2022, the nation’s credit unions will face what consensus holds is the biggest accounting change for financial institutions in decades. That’s when member-owned cooperatives will be required to adhere to the current expected credit loss (CECL) methodology introduced by the Financial Accounting Standards Board in 2016. The forward-looking approach was created to help shock-proof portfolios against the kind of credit losses that shook the economy after the financial crisis that began in 2007. But it also will have effects seen and unforeseen on how credit unions go about their business, stakeholders say. The impact? Opinions vary.

Read: The Good, The Bad, And The Reserved


Credit unions kicked off 2019 with another strong first quarter. Although lending activity is slowing versus a year ago, membership growth a key indicator of future growth potential remains above 4% over the past 12-months. By traditional measures, credit unions are stronger than ever. The industry’s $1.5 trillion balance sheet is healthy and growing. Capital tops $175 billion. Increased advertising by credit unions has elevated the visibility of the industry, and more than one million new members are joining each quarter. Given the industry’s momentum since the Great Recession, there’s a risk that complacency could set in. Success can lead organizations to pull back a bit from the activity that drove recent results. That’s one reason that repeat champions in sports are typically the exception, not the norm. But there are too many opportunities to support members and communities to slow down. As cooperatives, they must continue to address ever-changing member needs.

Read: Are We Doing Enough?

18 Months

Jennifer Platt has seen her own role evolve as she’s helped lead the evolution of leading-edge products and services at Suncoast Credit Union in the past several years. Platt joined Suncoast in September 2011 as a consumer loan development manager specializing in indirect lending. She became vice president of member experience in October 2016 and then vice president of digital transformation in October 2017. In her new role, Platt has spent the past 18 months helping to integrate strategy and execution between the business and technical sides of the big Florida credit union.

Read: What’s In A Name: Vice President Of Digital Transformation


Every quarter, Callahan & Associates rips real consumer and employee comments from social sharing and review sites to highlight what credit unions can learn from members, employees, and the public. This quarter, we’ve identified four lessons for credit unions on how to better manage brands in the modern age.

Read: Consumer Sentiments And Employee Insights

Happy Reading!

June 24, 2019

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