Newsworthy
Sharing the Benefits of CU Sale-Leasebacks
CU senior management and/or CUSO wealth management clients can share in the financial benefits on the buyer/investor side of the transaction. Click here to learn more.
CURES Core Business Elements- Boost Your Credit Unions’ Earnings and Capital
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Another CU Sale-Leaseback closing announced –
The latest Credit Union to announce completion of a sale-leaseback of owned operating real estate is Credit Union 1, a major SEG/associational charter which booked a substantial gain on the transaction for its regional headquarters in Henderson, NV. The 43,000 SF class A office building is occupied by the Credit Union and a pre-existing tenant, Dignity Health, a major California hospital chain. The January 20, 2022 deal unlocked capital otherwise frozen and unrecognized on the Credit Union’s balance sheet, while assuring it long-term control of its essential space
The Earnings Squeeze: Can Overlooked Real Estate Assets Balance ROA, Capital & Deposits?
Discover a financial tool that can help your credit union alleviate capital stresses that inhibit growth. By Steven Eimert and Edward Lopes
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Optimizing Your Credit Union Branch Network
When you optimize your branch network geographically and technologically, be sure you also optimize it financially.
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And When It’s Over – Part II: Credit Union Normalization In A Post‐COVID 19 World
The new normal business environment facing credit unions is taking shape. For the moment, CEOs remain occupied with business continuity, protecting staff, community support and maximizing member service delivery in a difficult environment. But the dialogue in the board room has started to shift. There is a strategic reality to face. Credit unions’ collective mission is to improve the financial well‐being of their members, as well as to help them through temporary quarantine and income interruption. To accomplish that mission, credit unions must be financially secure themselves.
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Using Sale-Leaseback Gains to Offset “COVID 19 Related” Loan Loss Provision Expenses
Credit unions nationwide are being forced to re-assess long-term borrower relationships. The chaos caused by COVID19 is leaving many previously solid borrowers unable to meet their obligations, at least for the short term. Forbearance will help affected members but also will impair credit union liquidity, earnings, and capital in 2020 and 202, and quite possibly beyond. Unique and urgent credit challenges call for time-tested, readily available solutions. A CURES facilities sale and leaseback transaction could generate a substantial gain offsetting all or much of a credit union’s COVID 19- related loan provision expense.
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And When It’s Over – A Strategy to Boost Credit Union Earnings and Capital
Whether it’s in a month or two, or perhaps a little longer, the worst of the COVID-19 crisis will pass, the routine of daily life will resume, and credit unions will be among America’s key businesses looking to jump start their own and their communities’ recovery. Conditions then are likely to include historically low interest rates driven by a combination of various government fiscal and monetary intervention and increased deposits as members burned by a severe decline in stock prices and continuing volatility move much of their financial assets into insured deposits. At the same time, loan demand is likely to surge, reflecting interim emergency credits and longer-term business recovery efforts. In such an environment, where earnings and capital will be under stress, how can a fundamentally sound credit union tap non-lending sources of liquidity, earnings and capital? One innovative, yet time –tested tool worth serious consideration is a sale-leaseback of the institution’s operating real estate.
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Why We Sold Our Office and Leased It Back
Read the story of a credit union that successfully executed a sale-lease back of its corporate office, which also contains retail banking space, unlocking the otherwise unavailable value of its major fixed asset to fund expansion and other projects.
Sale Leasebacks: A Source of Credit Union Income and Liquidity
Steven Eimert of CU Real Estate Solutions, LLC describes how many credit unions have an untapped source of profit and capital – owned branches and other operating facilities that can be sold for a profit and leased back so as to permit uninterrupted operations.