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| Very interesting idea...! |
Read this intriguing statement, in a recent e-mail from an NCUA examiner, about an upcoming exam:
"Which allows me to segway into the next exam..."
Given that unusual thought, started to imagine how he might appear on his next visit...
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| A Segway segue? |
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| A new driving "Force" at NCUA...! |
... even though I believe he might feel more comfortable on a "3-wheeler" - less risk, y'know.
3 comments:
He must be very robust.
Actually very, very robust!
My problem with the NCUA examiners is half of them, especially the ones for the smaller credit unions are incompetent. They come in and try to critique your business model when they don't even understand the balance sheet. I mean, when your examiners previous job was in sub-prime auto lending for a major bank, how can he relate to the credit union model?
I know the NCUA went on an examiner hiring binge in 2010 because they were supposedly understaffed, but some of the clowns they hired were a joke. And I'm going to trust them to tell me how I should market the credit union. (true story)
I was a former CEO for a small credit union that was struggling under PCA. We had it going the right direction with net income growing and we were almost around the corner so to speak. We still had a few charge-offs to go through, but the numbers were obviously much better. I told the examiner and his supervisor we were looking at merger partners just to be proactive. He asked me "are you giving up". I wanted them to know we were prepared for all outcomes. BIG mistake. A week later he came in and said "you need to merge immediately". If your charge offs continue at this rate you will be out of capital in 18 months. Obviously we just had a spike and the numbers would not continue that way endlessly. He and an examiner that were in there gave me conflicting information at the same time. One said I needed to shrink the credit union in order to improve our net worth, and then he said we needed deposits to increase liquidity. I told him if I bring in deposits, I will grow assets and lower my net worth. He replied, no, deposits are on the liability side of the balance sheet. I looked at him and realized he was clueless. The two examiners then went into a closed room for 45 minutes and he emerged and said "you need to shrink the credit union".
We eventually were forced by the NCUA to merge. At first the Supervisor told us to ask for an emergency merger, at which time I said "this isn't an emergency it won't get approved as such". She said please sign here. Two days later the NCUA regional director turned down the emergency merger because it was not approved due to it not being an emergency situation. She then told the board "you need to merge anyway".
We eventually merged. One less small credit union basically because the examiner and his supervisor didn't have a clue. Later they commented after the merger, and we had raised our net worth to well-capitalized, "we just couldn't foresee this turning out the way it did, you getting things to work out so positively in such a short time."
I guess that was a compliment. In my opinion the NCUA is a disaster and the people out in the field doing exams have no ability or talent to "protect the share insurance fund".
Just my two cents. I love your blog and I really like what you have to say about our industry. It's refreshing to hear such honest and critical commentary.
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