Download CU Capital Market Solutions Workshop

CU Capital Market Solutions Workshop
The Federal Home Loan Bank System has been around since the 1930’s but it was not until 1989 that
Credit Unions were able to gain access to the System. Since then, some 1300 Credit Unions have joined
and are now using the services to fund their business. At the same time, the CU industry is finding
similar challenges to those presented to all members of the financial service industry – funding and
capital constraints to growth. With the recent NCUA discussion regarding secondary capital, we are
finding an increased level of interest about the benefits of secondary capital. Credit unions are inquiring
about; who has access to secondary capital, where can secondary capital funding be found, and how can
secondary capital fit in my strategic planning. For those credit unions that are not low-income
designated today, growth in capital is dependent on retained earnings. So, what strategies can be
deployed to increase current earnings? Maximizing the use of existing capital and diversifying the asset
base may be a solution. Our conference is designed specifically for credit union senior managers and
will focus on how our industry can achieve greater profitability through the services of CMS and your
FHLB membership.
Agenda
8:30 a.m.
Registration / Breakfast
9:00 a.m.
A Review of Today’s Workshop
Bob Colvin, President & Chief Strategist, CU Capital Market Solutions
9:10 a.m.
A User’s View of Today’s Workshop
Casey Grimes Kucera, CFO, Jefferson Financial Federal Credit Union
9:30 a.m.
Funding Strategies That Make a Difference
Kim Weeks, Director of Funding Programs, StoneCastle
Nothing beats our member share deposit business for consistent funding, however, we
sometimes simply need more funding due to loan growth or we need longer term funding
to meet the interest rate risk longer term assets can create. This session will focus on new
funding sources that provide solutions to both of these issues.
10:15 a.m.
Networking Break
10:30 a.m.
The Federal Home Loan Bank – Getting More from Your Membership
Dan Brenton, FHLB Atlanta
With over 1300 Credit Union members now involved with the FHLB organization, we
are the second largest segment of membership in the System. Though we are joining the
System in large numbers, many of us are still working on how we can best use this
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valuable resource. This session will focus on the FHLB capabilities in funding, mortgage
lending, Letter of Credit use, and community development activities so that we all might
make better use of the System and what it can offer our industry.
11:30 a.m.
Secondary Capital – The Source for Growing Our Business
Bob Colvin, President CU Capital Market Solutions
Our industry uses the Cooperative Model which provides significant advantages when it
comes to customer service. “They own us” is always a great tag line for doing more
business with a coop. About the only disadvantage to the model is the issue of Capital.
This session will focus on how we can create more retained profit to benefit capital
creation and will examine a new concept for using debt as a substitute for Capital in the
credit union industry.
12:30 p.m.
Lunch
1:30 p.m.
The UIT (Unit Investment Trust) – A Safe Way To Improve Yield
Mike Macchiarola, Partner Olden Lane
Use of a defined portfolio of fixed income securities may provide an excellent way to
increase yield in your bond portfolio while providing excellent liquidity. This session will
focus on what a UIT can do for your investment strategy.
2:15 p.m.
Manufactured Housing – A Fit For Your Portfolio
Keith Stayer, SVP Triad Financial Services
Finding high quality assets can be quite a challenge in today’s marketplace and our
session will focus on the role that manufactured housing might play in your loan
portfolio.
3:00 p.m.
USDA Guaranteed Lending Program- High Yield with a government guarantee
Bill Mullally, Senior Managing Director, CU Capital Market Solutions
Credit Unions looking for higher yielding business loans should consider USDA loan
participations. Similar to the SBA loan program, USDA loans carry a high government
guarantee, typically as much as 70-80% of the total loan. This session will discuss the
various benefits in participating in the USDA loan program.
3:30 p.m.
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Adjourn