Olden Lane

In this month’s newsletter: The political landscape remains volatile, with speculation swirling around credit unions' tax-exempt status and the future of the NCUA. While headlines capture attention, we remain confident that credit unions will retain their exemption — the revenue gain simply wouldn't justify the disruption. For credit union leaders, stay focused on your core mission. Advocacy groups are well-equipped to navigate Washington's complexities, while leadership remains vital at home. In uncertain times, sound management is the best safeguard. ?? Receive our monthly newsletter and access past issues easily on our site

In a recent piece, Daniel Prezioso outlines four risk factors to consider as the new Administration’s policies begin to unfold: 2. Deregulatory Disappointment In Rulemaking, the National Credit Union Administration (NCUA) may struggle with responsiveness to the industry. During the first Trump term, under Rodney E. Hood, the agency was active in rulemaking, much of which was designed to implement deregulatory aspects of the Trump 1.0 agenda. The NCUA relieved regulatory restrictions on nonmember deposits and the use of derivatives for hedging, expanded access to the low-income designation and its related regulatory relief and provided clarity on subordinated debt rules that helped spring activity in the market. This time, the Trump Administration appears intent on centralizing rulemaking at the White House. That may limit this NCUA Board’s ability to implement welcome policies or respond to industry challenges with rule amendments in a timely manner. Take a look at Dan‘s QUICK READ OpEd, link in comments below ??

As we just wrapped up the?Governmental Affairs Conference in DC, several risk factors ought to be top of mind. Daniel Prezioso shares four to consider as the new Administration’s policies begin to unfold: 1. Regulatory Gridlock Ironically, governmental efficiency reforms may have negative externalities in the short-to-medium term in the form of regulatory gridlock. The Administration has offered?National Credit Union Administration (NCUA)?staff generous buyouts in return for resignations, insisted on them returning to the office and demonstrated a willingness to aggressively terminate federal staff where it meets resistance. It appears that this Administration intends to shrink the federal workforce aggressively. We suspect it will augment a smaller workforce with progressive automation techniques looking outward. In the meantime, the NCUA’s human resources may be strained considerably. In that case, examinations will remain the priority, while regulatory approvals for strategic decisions of credit unions (i.e. charter amendments, M&A transactions and capital raising) may suffer delays. Take a look at Dan‘s QUICK READ OpEd, link in comments below ??

Looking forward to seeing so many friends. If you’re in Washington DC for the Governmental Affairs Conference, we hope to say hello.?

“Doing things the same way tomorrow that we did them yesterday, because we did them that way, it just doesn't fly anymore. It’s an issue that must be confronted and we have to be straight up about it.” ??C suites are getting older, and we need to figure out how to get younger folks into this market ??C suites can be comprised from non-traditional backgrounds ??Let’s continue to push the envelope where it makes sense ??This is an exciting time in this business Quotes and excerpts from Michael Macchiarola ’s guest appearance on the recent With Flying Colors Podcast with Mark Treichel ?? Search: “With Flying Colors” wherever you get your podcasts to listen.

“We cannot, as an industry, get to a place where the words non-sufficient funds or overdraft are verboten.” This is a brief excerpt of the most recent With Flying Colors Podcast episode featuring our Michael Macchiarola As Mike explains, an honest discussion of fees has more nuance than we often allow. ?? Search: “With Flying Colors” wherever you get your podcasts to listen. Thanks for having us Mark Treichel!

Coming soon on the With Flying Colors Podcast with Mark Treichel, we dive into the 10 Themes for 2025. ? If the With Flying Colors Podcast isn’t already in your rotation, make sure to add the show to your feed. Excited for you to hear our conversation? ?? Search: “With Flying Colors” wherever you get your podcasts...?

Some food for thought on a set of changes that are coming fast and furious.

The #1 most listened-to episode of the CU on the Show Podcast for 2024. If you haven’t caught this one yet, check it out... “We’re happy to help in any way that we can, whether it’s subordinated debt or anything else." How Credit Unions Can Leverage Subordinated Debt for Growth and Impact, featuring Olden Lane's Michael Macchiarola with Todd Fanning and the show's host, Doug English, CFP. A link to the??? episode is below:?

The industry showed notable recovery in Q4, with share growth expanding and loan growth bouncing from a prolonged decline. However, profitability concerns persist, as rising costs and regulatory pressures continue to challenge financial institutions. Q4 Key Takeaways: ??Loan Growth Reverses Downtrend ? Net Worth Remains Strong ? Rising Yield on Earning Assets ? Cost Pressures Intensify ? Profitability Under Pressure ? Regulatory & Fee Challenges While the industry is showing signs of stability and resilience, profitability remains elusive. Institutions must navigate higher funding costs, regulatory headwinds, and inflation-driven expenses to sustain growth in 2025.