What is normal anymore? Many people really don’t know. They’re trying to figure out what their future is going to be – both in the near- and long-term. Predictions from economists and politicos, paint very conflicting pictures.

Credit unions are in the same boat. Except that some of the things they face are pretty clear, as they are showing up on their balance sheets.

Anthony Leacreta, acting director of NCUA’s northeast Region One, gives a good description of what NCUA is concerned about – namely loan loss reserve accounts. See the Credit Union Journal article, “Examiners Home In On New CU Vulnerabilities.”

So credit unions, are you ready for the future? For the new normal, whatever that may be?

Whatever you do, know that it will impact your balance sheet, and you will have to manage it accordingly so that you produce a gross spread (GS) capable of sustaining your asset liability targets, your liquidity requirements, and your capital objectives.