2 minutes
These short clips show the simple calculations you can do to understand ballpark performance.
When brainstorming various ideas with your team, you really want to see the financial impact fast! We created our Napkin Math videos to help keep the conversation moving. The primary purpose of the videos is to show the simple math that people can literally do on a napkin to understand ballpark financial performance.
As a continuation of this post, here’s a selection of educational videos appropriate for board member featuring simple, yet incredibly useful calculations that can be done quickly during conversations.
Napkin Math: How to Quickly Convert Basis Points to Dollars (Part 10)
Have you ever been in a meeting and the conversation bounces back-and-forth between basis points, percentages and dollars? Navigating the conversations between basis points and dollars can help the financial impact of decisions come to life for non-financial people. This video shows how you can quickly convert to or estimate between basis points and dollars.
Napkin Math: Average Life on a Napkin (Part 11)
Average life is a term used to generally describe the length of a particular product or category on the balance sheet, based on principal repayment. Learn what the average life tells you, and what it doesn’t.
Napkin Math: Value in the Current Rate Environment (Part 12)
In previous videos, we showed you an easy way to approximate the change in value when interest rates increase or decrease for bullet and amortizing products. In this video, we will show how you can use that same approach to help understand how the value has changed in the current rate environment when market rates have changed.
Napkin Math: ROA Impact of Operating Expense Growth vs. Asset Growth (Part 13)
Know how to calculate the operating expense ratio when the growth of expense dollars outpaces asset growth. Understanding this calculation can be helpful when you’re having strategic discussions about changing patterns in expense growth and asset growth.
c. myers corporation has partnered with credit unions since 1991. The company’s philosophy is based on helping clients ask the right, and often tough, questions in order to create a solid foundation that links strategy and desired financial performance. c. myers has the experience of working with over 550 credit unions, including 50% of those over $1 billion in assets and about 25% over $100 million. They help credit unions think to differentiate and drive better decisions through real-time ALM decision information, CECL consulting, financial forecasting and consulting, liquidity services, strategic planning, strategic leadership development, process improvement, and project management.
Apply It to your Boardroom
- What financial numbers does your board consider on a regular basis?
- How does your board stay compliant with NCUA’s rule 701.4, which requires financial literacy for directors?
- Which of these videos gives you an idea for further discussion at your next board meeting? What’s that idea?
