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Credit union netted $3.5M last year.
ReplyDeleteSpending $2.5M on naming rights.
+200 bps of fee income.
CFPB going after fee income.
NIM is 3.69. OPEX is 4.18. So, loses 49 bps were it not for fee income, which likely is going to be less.
My board would fire me if I brought this idea to them.
Really? $100K a year would get you fired? A marketing expense that gets plenty of local coverage.
ReplyDeleteYour first marketing "expense" is as little fees as possible on the member.
DeleteYour responsibility in operations is to have margins cover expenses.
Your future for roa is BLEAK.
You then go commit $2.5M to grow a basic model that is failing the member on the numbers.
By committing $2.5 M TO naming rights over that period you can take the easy way out and say,w it's "just" 100 grand a year. Not knowing how much fee income will be going down while compliance and competitive costs go up.
It's an ego decision. Monument to ignorant management that has become complacent with poor performance.
youre feeing your members bc your operations have become too expensive for your core business. Wake up.