LA JOLLA, Calif. -- If a credit union's performance ratios have slipped, expect the NCUA examiner to ask the CEO to discuss his or her strategic plan. David Marquis, director of the agency's E&I office told WesCorp's Future Forum audience yesterday he's directing his charges to judge performance and risk based on more than just ratios and CAMEL ratings this year.

"Ratios are no longer important, because by the time a ratio shows a problem, it's too late," he said. "I'm not as concerned with things like ROA as I am the strategy to manage market conditions," he said.

Sacrificing ROA to gain market share is an example he used as one he could support, provided it's supported by a solid strategic plan.

Marquis said in his experience, credit unions experiencing losses entered into new markets too quickly, without gaining the knowledge and skills needed to effectively manage risk.

"We've got too many cases where the credit union went over the edge so quickly, the NCUA couldn't catch them in time," he said.