Credit Unions, Examiners Prepare for Rising Rates
When Mike Hambrick arrived at Envision Credit Union in April 2011 as senior vice president/CFO, the $260 million Tallahassee, Fla., institution was still struggling under the weight of the previous administration’s mismanagement.
The subsequent steps taken by Hambrick and Darryl Worrell, the new president/CEO hired in 2010, put the credit union on a stable course while setting the stage to better manage interest rate risk in preparation for what will one day be a changing rate environment.
From a regulator’s point of view, pending rate increases from the Fed can help credit unions prosper. But certain balance sheet characteristics must be in place in order for an institution to go forward confidently, according to J. Owen Cole, NCUA’s director of capital and credit markets.