Alloya Corporate Federal Credit Union Balance Sheet Solutions

2015 Symposium Daily Wrap-Up

Credit unions from across the country are gathering in Chicago, Illinois on September 9-11, 2015, to not only hear from experts on a range of topics, but to network with peers – all while addressing key issues facing credit unions today.

In this space, we are providing a daily recap of presentations, conversations and photos from the symposium – so even if you are unable to attend, you can still get to see some of events.



Friday, September 11, 2015


 “Every credit union has a story to tell.”
- Alix Patterson, Chief Operating Officer, Callahan & Associates

This final day of the Credit Union Executive Leadership Symposium began with a somber moment of silence and reflection to remember the victims of the terrible tragedy that occured 14 years ago today on September 11, 2001.

With a packed house – credit union attendees were eager to hear from the symposium’s final two speakers.

“This has been the best conference I have attended in a long time! Thank you Alloya and Balance Sheet Solutions.”

Katee Goodpaster, CEO, 
Dearborn County Hospital FCU

See the Story in the Data
Alix Patterson

How do you tell the story? Following the data can lead to interesting revelations that help you develop a story to share with members and prospective members – focused on the “customer experience.” Alix shared that the most important dimension of a member’s experience at a credit union is their emotional connection to your institution. To reinforce this point, Alix quoted Maya Angelou: “People will forget what you said. They’ll forget what you did. But they will never forget how you made them feel.”


Alix shared a story of a family that spent their entire life savings towards having a child. They had no money left towards buying a home. A credit union heard their story and reached out to help them obtain a loan. This changed this family’s life. They were able to move into a home, and became a champion of the credit union – sharing their story with their community.

Alix discussed that you want your members to feel good about their experience – and they will share their story as you share theirs. So, how can the numbers develop these stories? “It’s all in the framing,” stated Alix. Here are a few suggestions from Alix:

  • We helped # ______ new families enjoy the benefits of homeownership.
  • We’ve saved our members $ __________ through refinancing existing loans at lower rates.
  • We sent #________ students to college, % ____ were first generation!

U.S. Economic Outlook & Its Impact on Credit Unions
Steven Rick, Chief Economist for CUNA Mutual Group

Steven began his presentation with an economic truism: “Economics is the study of the confusion between stocks and flows.” During the final session of the symposium, Steven brought his high energy enthusiasm to a discussion on credit union loans, investments, savings, earnings and membership growth. Here are a couple of samples from Steven’s presentation:

  • “What types of loans are growing the fastest?” asked Steven, after sharing that the economic growth rate for the U.S. economy is 3%. The responses were mixed, but Steven shared the correct answer is member business loans are the fastest growing loan for credit unions.
  • Asset growth is expected to slow in 2015 and 2016 as deposit growth slows. Asset growth will outpace savings growth by one percentage point. The average credit union asset growth of 5.6% in 2014 masked a wide growth rate disparity between large and small credit unions. During the last 12 months ending in Q1 2015, credit unions with assets greater than $1 billion reported asset growth of 7.4%, while credit unions with assets less than $20 million reported asset growth of 0.5%.
  • Credit unions should expect membership growth to exceed 3% in 2015 and 2016 due to strong job growth. This will push the total number of credit union memberships to 104.5 million by year end 2015, which is equal to 33% of the total U.S. population.



Thursday, September 10, 2015

“The power of a single idea can change a company, a life – it can change everything.”
 - Steven Levitt, Keynote Speaker


With a mix of humor, humility and blunt honesty, Steven Levitt delivered a presentation of thought provoking anecdotes to a captivated credit union audience. “Incentives… they drive everything,” said Steven as he described the root of motivation. Some are driven by financial awards, while others are driven by social incentives – meaning that the reward is more about receiving a positive opinion on what you do from your peer group.

Whether it was sharing his research on sumo wrestling corruption; terrorist threats; how a crack gang’s finances are structured; or what drives a teacher to succeed if they already reached their professional pinnacle of tenure – incentives will motivate one to their desired outcome. “When I told my dad I was going to be writing a book – his reaction was that I have no talent,” Steven said, with that the audience bursting out in laughter. This was followed by his father’s proclamation that he himself has no talent either. However, both Steven and his father shared a common goal and drive to be successful in areas where no one else committed time to (Steven, applying diverse economic theories to societal issues and his father in medical research focused on intestinal gas). The common goal was to be recognized and rewarded by their peers – with that said, both Steven and his father became hugely popular and accepted by their peers, despite some early obstacles.

Following Steven’s keynote presentation – an eager crowd lined-up for an opportunity to talk to Steven and to get a copy of his new book, “When to Rob a Bank” signed.

Photo recap of today’s sessions:

  • NCUA Regulatory/Supervision Update, J. Owen Cole, NCUA
  • 4 Actionable Items for Your Investment Portfolio, Darren Fago, Balance Sheet Solutions
  • Prosper With Business Services, Larry Middleman, CU Business Group
  • Liquidity Tools & Planning, Timothy Bruculere, Andrew Kohl, Alloya Corporate FCU and Ian Lampl, LoanStreet
  • Strategic Networking
  • What Will End the 34-Year Treasury Bond Bull Market? - Tom Slefinger, Balance Sheet Solutions






Wednesday, September 9, 2015

“It’s about people”
- Curt Cecala, Treasurer, Alloya Corporate’s Board of Directors and Chief Executive Officer, TCT FCU

What happens when you have credit union people from across the nation gathered in one room? Answer: A contagious energy – with one-unilateral focus on people helping people. That impression was shared by many who had the opportunity to attend the first day of the Credit Union Executive Leadership Symposium – which included four pre-conference sessions, followed by Alloya’s Annual Meeting.

Myre Presentation

Day 1 Session Recap
Simplify Technology, Increase Capabilities, Reduce Risk and Contain Costs
Biff Myre, Director with OnX Managed Services, Inc.

Continuing on the day’s focus, Biff asked the following: “What’s the most important thing to IT?” He immediately followed by answering his own question with a simple, buy yet profound answer: “People.”

Key takeaways from this session: Six IT cost saving and risk reducing ideas to explore (Biff did note that while this list of ideas will help, it is key to have a strategic plan, an IT road map and a focused IT committee at your credit union).

  1. Managed Backup & DR-as-a-Service
  2. 24x7 Remote Monitoring & Remediation Response + Systems Patching/Admin.
  3. Managed, Hosted Email
  4. Secured Wireless Deployment/Management
  5. Virtualizing & Centralizing Desktops for Policy-Based Security and Mobility
  6. 6. Managed Hosted Highly Available IT Systems


Credit Union Feedback: We had the opportunity to talk to Mary Ann Pusateri, CEO, Partnership Financial CU – asking her if she would do anything differently as a result of what she heard during this session. “We will definitely explore possibilities of developing a committee,” said Mary Ann. “We have committees for ALM and Marketing – so we should look at that for IT.”

Simplify Investments
Heather Thompson, Assistant Vice President, Controller, CUSO Accounting, Alloya
Michael Finley, Senior Portfolio Analyst for Balance Sheet Solutions

Heather began this session by providing a detailed overview of Portfolio View, Balance Sheet Solutions bond accounting system, powered by TPG’s Portfolio Genius. Two key takeaways: 1) Portfolio View can help strengthen operations and reduce efforts. This includes an easy to use online based system – with the ability to interface with BondEdge’s portfolio analytics tool. Plus, Portfolio View features automated rate resets, principal and interest payments, interest accruals, amortization/accretion of premiums/discounts, market pricing and prepayment data. 2) Enhance investment reporting. This includes comprehensive monthly accounting report package (reports include investment activity reports, change in market value and 5300 investment schedules). In addition, detailed investment listing is available in excel.

Michael closed the session by providing an overview of fixed income analytics with BondEdge, which provides comprehensive security coverage and functionality; robust risk/reward analysis; assists in developing investment strategies; and can design reports to meet regulatory/compliance requirements.

Key takeaway: Comprehensive analysis and reporting. “Measure twice and cut once,” said Mike, highlighting BondEdge’s Pre-trade/What If Bond Swap Analysis, which quantifies how portfolio changes impact return before trading; and risk measurements before and after swap.

Preserving the Credit Union Brand in Mobile Wallets
Paul Fiore, Chief Executive Officer, CU Wallet

“Our vision as a company is to collaborate,” said Paul. “We can have conversations with big name merchants thanks to the millions of consumers who belong to a credit union – this is why we are so proud to work with Alloya and their strong membership base.”

Paul discussed the three big moments in technological advances in our industry: 1) ATMs; 2) Internet Banking; and now 3) Mobile Banking.

Key takeaways: when considering a mobile wallet platform and the benefits of credit unions collaborating for mutual success:
• Faster core mobile wallet product platform deployment
• Accelerate delivery of value added product features via shared innovation and insights
• Accelerate merchant acquisition solutions to improve utility of member’s digital wallet
• Pricing and negotiating leverage with technology partners and merchant consortiums via combined scale

Frilot Presentation

ALM and Regulatory Priorities for 2016
Dan Frilot, Senior Vice President, ALM Risk Management, Balance Sheet Solutions

Key takeaway: New guidance for interest rate risk sensitivity testing. Test balance sheet attributes that can severely impact earnings, liquidity and capital adequacy. Identify critical assumptions and breaking points. Help answer the question: What if we are wrong by___???

  • Formalize plan to test model assumption sensitivity levels to understand range of possible outcomes
  • Critical assumptions: prepayment speeds, decay rates, core share durations, dividend rate response, discount rates, share funding migration, yield curve changes, etc.
  • Create “score card” system to identify which assumptions have the largest impact to IRR and/or liquidity risk

Dan discussed what regulator indicators may mean: CAMELS rating system is expected to be adopted – adding an “S” for interest rate sensitivity testing.

Bonus: For those who attended this session, you were treated to a Wednesday “hump-day” trivia question: What do you call a group of camels? Answer: Caravan (we would have also accepted train).


September 7-9, 2016  |  Westin Chicago River North - Chicago, IL