Financial Analysis

History has clearly shown that investments in branches and headquarter facilities can either be like a ball-and-chain on a credit union's performance, or the springboard that launches the credit union into a new level.  As stewards of the credit union, the management and board are obligated to ensure that the funds are optimized in a manner that is in the best interest the the members.  Rigorous analysis of a credit union's capital investment alternatives is, therefore, of paramount importance to ensuring a well-run credit union.

We Can Help!

Reflection Point works with credit unions to develop indepth analyses of the financial impact of delivery system strategies. 

The principle questions we seek to answer during the financial analysis are:

• Which delivery system options are most viable for the market?
• Will the credit union be able to sustain branch expansion into the new market?
• What is the projected financial performance to the new delivery system?
• Would the credit union achieve higher profitability as a result of implementing a new branch or other delivery system?

Our analyses are founded on indepth market analysis.  We can assist your credit union in a developing a full strategic facilities plan in conjunction with our consulting partners.

Analysis Process:

• Analyze existing membership within market
• Develop membership growth estimates based on market share potential
• Construct a new member growth pattern
• Assess product usage characteristics of current membership
• Develop deposit and loan forecasts
• Estimate staff and facility requirements
• Analyze facility costs
• Generate balance sheets
• Analyze fee income and operating expenses
• Create income statements
• Evaluate relative profit improvement (reduction) of the branching options versus not branching

More Info

"Glenn Christensen successfully led our branch planning project.  His thoughtful approach to combining market research, member survey and financial analysis to evaluate delivery system alternatives led to our Board accepting the plan.  We were very pleased with the professional quality of his work."

Joe Robertson, President/CEO
Simpson Federal Credit Union

• "Our capital ratio is growing and we have a unified strategy for managing growth"

• "When current results are questioned relative to previous years results, I can now reference the directions from the planning session"

• "My relationship with the Board has improved"

• "We were able to work though decisions in the planning session that we were unable to reach a decision on previously"

• "Both the Board and I have a much better sense that what we are doing is a professional thing, it is now less ‘what’s in it for me’"

• "Loan demand has finally picked up"

• "The auditor and examiner are very pleased, the plan leaves the impression that we know what we are doing"