Page 22 - BusinessWest March 20, 2023

CREDIT UNIONS RANKED BY TOTAL ASSETS
CREDIT UNONS
ASSETS
LOANS
SHARES
PRESIDENT/CEO
$1,557,669,672
792,410,103
683,394,959
631,833,069
387,637,675
251,736,599
247,928,009
243,499,383
194,525,306
140,490,628
135,190,134
87,894,449
29,750,954
GREYLOCK FEDERAL CREDIT UNION
1
2
3
4
5
6
7
8
9
10
11
12
13
All figures end of Q3 2022
Continued from page 21
$1,190,524,760
666,836,435
483,465,861
452,792,703
201,563,125
200,308,963
103,431,567
106,321,048
135,314,320
101,633,545
97,064,937
42,323,912
9,218,655
• When does the lease end?
• Are there early termination or renewal options?
• Are there variable expenses related to the lease? • What is the monthly cost of the lease?
The answer to all these questions is integral to the
calculation of the asset and liability to be included in the financial statements. Once the total future lease obligation has been calculated, the obligation will
be presently valued using one of three discount rate options. The newly recognized right-of-use asset and liability will then be amortized over the life of the lease, based on the lease type.
For income-statement purposes, operating leases will continue to be classified as lease expense, and finance leases will be split between amortization expense and interest expense.
Transition Methods
As part of the initial adoption of the new lease stan- dard, there are certain practical expedients that can be adopted to help make the transition easier. Companies are not required to assess existing lease classifications. Existing operating leases with terms extending beyond 12 months will be included on the balance sheet effec- tive Jan. 1, 2022, the date of required adoption. Exist- ing capital leases will continue to be included with property, plant, and equipment, and will be amortized over the remaining life of the lease.
$1,415,571,920
645,767,748
554,105,565
573,262,755
337,438,970
223,205,545
218,833,443
206,671,667
178,743,448
118,417,499
120,596,465
81,072,210
26,876,921
Financial-statement Disclosure Impacts
John Bissell
James Kelly
Glenn Welch
Richard Kump
David Plantier
Jennifer Calheno
Jennifer St. Peter
Michael Murphy
Adam Corcoran
Anabela Grenier
Michael Ostrowski
Michelle Dwyer
Nancy Canino
150 West St., Pittsfield, MA 01201 (413) 236-4000; www.greylock.org
POLISH NATIONAL CREDIT UNION
46 Main St., Chicopee, MA 01020 (413) 592-9495; www.pncu.com
FREEDOM CREDIT UNION
1976 Main St., Springfield, MA 01103 (413) 739-6961; www.freedom.coop
UMASSFIVE COLLEGE FEDERAL CREDIT UNION
200 Westgate Center Dr., Hadley, MA 01035 (413) 256-5500; www.umassfive.coop
MASSMUTUAL FEDERAL CREDIT UNION
1295 State St., Springfield, MA 01111 (413) 744-3431; www.massmutualfcu.org
LUSO FEDERAL CREDIT UNION
599 East St., Ludlow, MA 01056
(413) 589-9966; www.lusofederal.com
GREATER SPRINGFIELD CREDIT UNION
1030 Wilbraham Road, Springfield, MA 01109 (413) 782-3161; www.grscu.org
HOLYOKE CREDIT UNION
490 Westfield Road, Holyoke, MA 01040 (413) 532-7007; www.holyokecu.com
ALDEN CREDIT UNION
710 Grattan St., Chicopee, MA 01020 (413) 536-0475; www.aldencu.com
PIONEER VALLEY FEDERAL CREDIT UNION
246 Brookdale Dr., Springfield, MA 01104 (413) 733-2800; www.pioneervalley.coop
ARRHA CREDIT UNION
145 Industry Ave., Springfield, MA 01104 (413) 732-9812; www.arrhacu.com
FRANKLIN FIRST FEDERAL CREDIT UNION
57 Newton St., Greenfield, MA 01301 (413) 774-6700; www.franklinfirst.org
MYCOM FEDERAL CREDIT UNION
101 Fenn St., Pittsfield, MA 01201 (413) 442-6501; www.mycomcu.org
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Leases
for all their existing leases and thoroughly review the contracts to determine whether they include an oper- ating or a finance lease.
Do You Have an Operating Lease or Finance Lease?
If the lease meets any of the following criteria, it will be classified as a finance lease:
• Does the lease transfer ownership at the end of the lease term?
• Does the lease grant the lessee a right-to-pur- chase option that is lessee is reasonably certain to exercise?
• Is the lease term for the major part of the eco- nomic life of the underlying asset?
• Does the present value of the sum of lease pay- ment and any residual value guaranteed by the lessee not reflected in the lease payments equal or exceed substantially all of the underlying asset’s fair value?
• Finally, is the underlying asset of such a special- ized nature that it is not expected to have an alterna- tive use to the lessor at the lease term end?
If the answer to all five of those questions is no, then the lease qualifies as an operating lease.
Lease Details
After concluding the lease type, it is time to dig into the lease details:
• When does the lease start?
Aside from the impact on the balance sheet, the standard will also provide enhanced disclosures in the notes to the financial statements. The required disclosure will include qualitative and quantitative disclosures, including descriptions of the existing leases, disclosure of lease expenses as included in the income statement, cash paid for leases during the current year, new right-of-use assets obtained through operating and finance leases, weighted average of dis- count rate used to present value the lease obligation, and the maturity analysis disclosing the future obliga- tions to be paid.
In Conclusion
The new lease standard is expected to have the biggest impact on those companies with a large vol- ume of real-estate leases that have previously been required to be disclosed only in the footnotes to the financial statements. The overall expectation is that most companies with leases will see some impact related to the adoption of the new standard. Because the new standard has a balance-sheet impact, it is recommended that all companies review any finan-
22 MARCH 20, 2020
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