Efficient Risk Containment
In last week’s What’s Working, David Howard highlighted the NCUA’s approval of a $160.1 million equity distribution to eligible credit unions and the opportunity to use that distribution to offset any losses that may be incurred from removing low-yielding assets. Many of our customers have implemented strategies to shift from long-term/low yielding mortgage loans and into commercial loans with friendlier repricing characteristics. Utilizing some or all of that unscheduled profitability for portfolio clean-up can be a shrewd strategy if developed properly. FTN Financial Capital Assets Corporation (“Capital Assets”) is highly skilled at working with management teams in devising and implementing balance sheet management strategies like this.