2010 Product Cost Summary for Credit Unions ($175)

Industry Cost Averages

Kohl Advisory Group has compiled product cost averages based on the actual experience of 12 credit unions ranging in size from $300 million in assets to $1.4 billion. Each of these clients received a comprehensive (4-6 month) assessment of its products that was completed in the latter half of 2009 or the first half of 2010. The supporting detail for these average cost figures, by major cost element and participating credit union, are provided in this highly informative 85-page document.

Lending products addressed in the 2010 Product Cost Summary include: Classic, Gold and Platinum Credit Cards; Signature Loans; Unsecured Lines of Credit; New and Used Vehicle Loans (Direct); New and Used Vehicle Loans (Indirect); Recreational Vehicle Loans; HELOC’s and 2nd Mortgages Fixed; and 1st Mortgages. Deposit products addressed include: Regular Checking, Interest Checking, Regular Shares, Money Market Accounts, Regular CD’s and IRA’s.

Lending Product Activities and associated costs for each loan type have been developed and reported by major cost element:

1. Direct Cost to Take Applications and Underwrite Loan (Cost per App)
2. % of Loan Applications that Result in Booked Loans
3. Application Cost per New Loan Booked (#1 divided by #2)
4. Direct Cost to Complete Paperwork and Fund a new Loan
5. Marketing Expense per New Loan Booked
6. Total Cost to Originate a New Loan (#3 + #4 + #5)
7. Estimated Average Life of a New Loan in Years
8. Total Loan Origination Cost Recognized per Year (#6 divided by #7)
9. Total Collection Cost per Year per Existing Loan
10. Total Non-Collection Cost per Year per Existing Loan
11. Projected Net Charge Offs per Year per Existing Loan
12. Total Direct Cost per Year per Loan (Sum of #8 through #11)

Deposit Product Activities and associated costs for each addressed deposit product have been summarized into the following major cost elements:

1. Transaction Related Cost per Year per Depository Account
2. Account Support Expense per Year per Depository Account
3. Marketing Cost per Year per Depository Account
4. Less: Total Fees & Other Income per Year per Depository Account
5. Average Dividend Cost per Year per Depository Account
6. Total Direct Cost per Year per Account (Sum of #1 through #3 less #4 + #5)

Results of all loans and deposit products are portrayed in chart form by major cost element. In addition to the average, the range (average of 3 highest and lowest) are also presented.

Transaction Costs

In addition to costs by deposit product, the 2010 Product Cost Summary also contains average transaction costs for 16 common transaction types. These include the cost to process: an Incoming Check; a PIN Check Card Transaction; a Signature Card Transaction; an ACH Transaction; an ACH or Check Card Exception; an ATM Withdrawal; a Foreign ATM Withdrawal; an ATM Deposit; a Foreign ATM Deposit; a Manually Entered Withdrawal; a Manually Entered Deposit Item; a Stop Payment; a Deposit Item Return; a Bill Payment; an Outgoing Wire and Issue or Renew a CD.

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The 2010 Product Cost Summary is provided on a "satisfaction guaranteed" basis. If you are not 100% satisfied, simply return the book within 10 days in lieu of paying the accompanying invoice. Order Now.