CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » Chat highlights challenges and ‘unknowns’ of virus threat
Operations

Chat highlights challenges and ‘unknowns’ of virus threat

CUNA Finance Council participants are working out what-if scenarios.

April 3, 2020
Ron Jooss
No Comments
2020-04_CUNA-financial_117533

Finance professionals weighed in on how the coronavirus (COVID-19) threat is affecting credit union balance sheets during a CUNA Finance Council chat on Friday.

Topics discussed included employee issues such as pay, scheduling and furloughs, member relief, and budget projections.

Many participants said their credit unions continue to pay employees who are not working their full shifts.

“We continue to pay all staff, but we have a 50% rotation, so we are paying people to stay home,” one participant wrote. “Only a few people are set up to work from home.”

Another offered: “We are still paying everyone. Some are out on administrative leave if forced to quarantine.”

Another participant said back-office employees are working remotely, while branches are fully staffed, serving members by appointment with phone calls being redirected from the call center to branches. “Employees who are required to report to a branch for any reason are receiving hazard pay,” the participant wrote.

Nearly all participants said their credit unions weren’t considering furloughing their employees at this time.

When asked how they are tracking payroll and staff changes, many said they have created new codes or are working with the payroll provider to track changes.

“We set up new payroll codes for anyone affected by the virus, or if they are home with children per the FMLA extension,” one participant wrote.

Another added: “Our people are currently being paid 100% regardless of remote work or rotational work. All communications or tracking is being kept in a pandemic folder for examiners or auditors.”

Many participants said their credit unions were offering loan modifications.

Among those shared by participants:

  • “We are allowing 1 to 2 deferments as we get requests.”
  • “30-day skip-a-pays can extend to 90.”
  • “90 days, no pay; skip-a-pay for 2 or 3 months on consumer loans.”
  • “We are going to offer a 6-month deferment on mortage loans, requiring a 0% loan to be taken out that will make the scheduled payments.”
  • “Emergency loan at lower rates up to $5,000 with no payment for first 90 days.”

Participants said they are projecting significant increases in delinquencies and charge-offs moving forward in 2020.

“Our examiner says to expect 20% delinquencies,” one participant wrote.

“About 20% increase in provisional expense for March,” another offered.

“Reportable delinquency is still around our normal average, but we're watching what may be upcoming,” one participant wrote. “For March, we're seeing a 25% increase in the number and dollar amount that have moved into the 25- to 59-day delinquency range.”

Participants said they had not updated their budgets yet because it was too early to determine outcomes from the pandemic.

“No budget updates as of yet,” one participant wrote. “Just too many unknowns about length and magnitude.”

Another wrote: “We are not updating our budget, but we are trying to lower as many expenses as we can.”

CUNA Council members have been joining together for unique, live chat events to discuss ideas and responses to the current coronavirus situation. Topics are gathered from discussions in the Councils Community and members are encouraged to provide topics or questions upon registration. Council members can register for upcoming sessions, and receive chat transcripts and slides if they are unable to attend live.

Read about more CUNA Councils chats here.

KEYWORDS coronavirus

Post a comment to this article

Report Abusive Comment

Credit Union Magazine: Spring 2023

Spring 2023

Credit Union Magazine’s Spring 2023 issue features the 2023 Credit Union Heroes and examines CUNA-League advocacy priorities, board leadership, the impact of financial well-being efforts, fee-related compliance issues, predictions for the year ahead, and more.
Digital Edition •  Subscribe

Trending

  • CUNA Mascot Madness: Voting opens for East Region

  • Mascot Madness: East winner crowned; Midwest voting opens

  • League leaders highlight credit union difference, safety, soundness

Tweets by CUNA_News

Polls

CUNA Mascot Madness: Which Midwest Region mascot is your favorite?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us