The document discusses the business case for innovation and risk-taking at FORUM Credit Union. It highlights FORUM's grading scale for assessing innovation and provides an overview of the credit union's goals and actual performance across various financial and operational metrics for the year-to-date. The document also touches on building consistent processes, product offerings, and delivery channels to promote innovation and change over maintaining the status quo.

1. Innovation | the business case for risk taking Rick Rambo | Director | FORUM Credit Union Doug True | President | FORUM Solutions & SVP of Innovation @ FORUM Credit Union

6. I CU

7. Innovation Grading Scale Promote Change Neutral Risk Averse – Status Quo

10. I our model

11. partner architect business owner corporate pharmaceuticals retired corporate telecommunications asst. school superintendant Retired corporate telecommunications former Enterprise executive – now realtor commercial building executive business owner

14. Trust

17. New Members & Businesses Net Interest Margin Loan Mix/Growth Member Deposit Mix/Growth Member ROA Liquidity Market/ Account Growth Assets Under Management Cross-Sells/Referrals Non-Interest Income Expense/Income Ratio Net Worth Ratio

18. ..irectorsrganizational.xls Year-to-Date Name Goal Actual Variance Year-End Goal Member Satisfaction Loyalty Index 90% 88.5% -1.5% 90% Raddon Quarterly Survey Satisfaction % 90% 95% 5% 90% ROA ROA 0.32% 0.45% 0.13% 0.60% ROE 3.34% 4.68% 1.34% 6.36% Yield on Assets 5.85% 5.80% -0.05% 6.05% Cost of Funds 3.15% 3.09% -0.06% 3.27% Net Interest Margin 2.70% 2.71% 0.01% 2.78% Fee Income $4,277,664 $4,218,767 ($58,897) $14,200,000 Net Income $1,055,566 $1,482,875 $427,309 $6,200,000 Net Worth Ratio 9.41% 9.64% 0.23% 9.36% Expense to Income Ratio 52.26% 52.76% 0.50% 49.06% Delinquency Ratio 1.11% 0.99% -0.12% 1.00% Net Charge-off Ratio 0.35% 0.39% 0.04% 0.35% Provision for Loan Loss Expense $1,500,000 $1,500,000 $0 $4,500,000 Liquidity Total Assets $1,014,000,000 $993,215,935 ($20,784,065) $1,075,000,000 Liquidity Ratio > 3.00% 6.87% 3.87% 5.52% Loan Originations $125,791,000 $112,643,272 ($13,147,728) $431,198,000 Yield on Originations 8.10% 8.26% 0.16% 8.07% Total Loan Balances $847,077,611 $837,925,538 ($9,152,073) $923,925,000 Yield on Loans 7.04% 7.02% -0.02% 7.20% Total Deposit Balances $702,134,052 $701,335,542 ($798,510) $732,895,000 Cost of Funds - Deposits 3.19% 3.17% -0.02% 3.31% Loan to Deposit Ratio 121% 119% -1% 126% Borrowed Funds $205,347,948 $184,149,583 ($21,198,365) $230,755,000 Cost of Funds - Borrowing 4.73% 4.71% -0.02% 4.82% Market & Account Growth Membership 96,120 95,682 (438) 98,500 Assets Under Management - FORUM 1st $92,835,226 $96,821,865 $3,986,639 $115,000,000 Quality Referrals - Closed 916 1,116 200 2,760 Retail Checking - Net Account Growth (#) 467 946 479 1,475 Retail Checking - Average Account Balances $2,071 $2,003 ($69) $1,850 Business Checking - Net Account Growth (#) 80 159 79 275 Business Checking - Average Account Balances $16,899 $12,335 ($4,565) $18,250

19. Process

20. Consistent Processes

23. Examples building businesses product offerings delivery channels

31. In today’s hyper-competitive world maintaining the status quo is no longer an option.

32. Continue the conversation @ dougtrue.net