This document discusses the need for financial institutions to have access to accurate and comprehensive data from across their systems in order to meet regulatory requirements, make strategic decisions, and respond to requests. It provides an example of Alaska USA Federal Credit Union which established a task force to review data needs and sources, implemented a relationship lending and portfolio management system, and was able to successfully diversify and grow its loan portfolio as a result. The document encourages other institutions to set goals for their data systems, get management buy-in, review current reporting and identify key data points to establish a unified platform.

1. REPORTING TO GROW YOUR
BUSINESS
Didi Frohardt
Vilma Chavez
Robert Warthen

2. Confidential & Privileged Document
Data – You need it!
• Management strategies
– Loan growth
– Market share
• Regulatory requirements
– Call reporting
– Exposure reporting
– Stress Testing
• Ad-Hoc requests
– Name it, someone needs it
• Forms

3. Confidential & Privileged Document
Where is the data?
• Core accounting system
• Trust system
• Leasing system
• Insurance/investment systems
• Excel spreadsheets
• Sticky notes....

4. ALASKA USA FCU

5. Confidential & Privileged Document
Department Structure
Executive Director
VP of Lending
VP of Administration
11 - loan officers
6 - loan assistants
6 - credit administration (underwriting & portfolio management)
7 - documentation & servicing
4 - administration (compliance, systems adm., reporting, member service)

6. Confidential & Privileged Document
Why Relationship Lending and Portfolio Risk Management
• Needed to increase loan volume outside of Alaska
• California (began lending in 2010)
• Washington (soft rollout 3rd quarter 2013)
• Arizona (soft rollout 4th quarter 2015)
• Develop a process to manage the portfolio in a pro-active approach
• Ad-hoc reporting
• Implemented Relationship Lending (Advisor) and Portfolio Manager,
February 2015

7. Confidential & Privileged Document
2016 Business Plan Results
• In 2016 we were given two primary goals
• Grow the portfolio by 22.50%
• Geographical diversification including purchased participations
How did we do?
• Loan growth was over 22.50%
• In 2015 the Alaska loans represented 85% of the total loan
portfolio and by year end 2016 Alaska was 53%

8. Confidential & Privileged Document
How did we achieve the goal?
• Soft rollout to understand the markets
• Hired the right team
• Unified platform that allows to focus on the
deal not the process
• Modified internal policies to accommodate
the different markets
• Purchased participations

9. Confidential & Privileged Document
Get Started
• Set a goal for what the system should do for your financial institution
• Get buy in from management
• Set up task force comprised of members of each area of the
department
• Review current reports/systems
• Review data required from all systems
• Data Integration = Data Credibility
• Identify data points and where they reside

10. Confidential & Privileged Document
Regulatory Reporting
• Appraisal letters
• Checklist for compliance with Regulation B
• Denied & withdrawn applications
• Policy exceptions
• NCUA quarterly reporting
• Third party provider management

11. SUPPORT STRATEGIES
INCREASE EFFICIENCIES
ENTER DATA ONCE
Presenter Contact Info
Didi.Frohardt@bakerhill.com
V.Chavez@alaskausa.org
R.Warthen@alaskausa.org