The purpose of this condensed statement is to provide the planners with a tool to project the credit union’s financial position based on the achievement of member loans and savings growth goals. The statement indicates the New Equity (Net Capital) position based on the annual net income projection, (i.e. see the Projected Income Statement).
It also presents an analysis of the Allowance for Loan Losses, [i.e. both the proposed provision (expense) and the expected net charge-off]. Any changes in the expected amount of Fixed Assets are also identified. Hopefully, the annual goals expressed in the balance sheet support the long&endash;term financial position the credit union wants to achieve.
