CEOs @Lunch Networking Discuss the Economy and Pressure on Income

Yesterday at the second of the Association’s @Lunch Networking round tables, 14 CEOs from Utah’s credit unions broke bread while discussing everything from where to purchase loan pools to the CFPB’s effort to curtail fee income to margin compression as rates remain elevated.

The CEOs had extensive discussion about how the CFPB and NCUA have overdraft protection (ODP) in their crosshairs. The regulators believe that the fees are unfair, but credit unions maintain that proposed changes are avoidable, fair, and make it possible to offer a product that would otherwise not be offered. If the CFPB’s proposal regarding ODP were to be enacted, it would likely put an end to overdraft protection, a service that members value and want, because it would no longer be feasible to offer the service.

The CEOs also chatted about the current rate environment, and how the forecast for rate decreases has changed. As loans continue to re-price slowly, and deposit rates in Utah have climbed to higher than rates in surrounding states, the squeeze on margins continues without signs of changing.

Part of discussion surrounded the important role that commercial loans have played for some credit unions through the current economic cycle, where to purchase loan pools, and how to help members with their fraud.

The next CEOs @Lunch Networking will take place at the Association office, at noon on October 30.