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Episode Summary

In this archive episode of With Flying Colors, Mark sits down with Todd Miller — longtime NCUA expert, former Director of Special Actions, and member of the CU Exam Solutions team — to break down one of the most misunderstood and under-optimized tools in credit union governance: the board package.

Boards get in trouble not because they don’t care, Todd explains, but because they are often misinformed, overwhelmed, or kept in the dark. A well-designed board package solves that — if it’s built with the right mix of clarity, consistency, and candor.

Todd explains:

• What high-performing board packages include
• Why “size and complexity” shape reporting expectations
• The danger of data dumps, inconsistent formatting, and detail overload
• How to pair dashboards with strong qualitative narratives
• The one question every executive should answer in their reports
• Why peer comparisons matter
• How risk appetite, strategic plans, and deviation explanations must tie together
• Real-world stories from troubled and well-run credit unions
• How to avoid examiner criticism by aligning reporting with actual risk

This episode is full of practical actions your board and leadership team can apply immediately.

Key Themes & Takeaways

1. Great Board Packages Balance Qualitative + Quantitative Reporting

Todd outlines a simple principle:
 Board reports should demonstrate management’s compliance with the business plan, board policies, and the credit union’s risk appetite. 

transcript Board Packages Todd …

Boards need both data and narrative to understand where the credit union is, how it got there, and where it’s going.

2. Consistency Builds Board Trust

From formatting to color-coding to dashboards, consistency helps directors quickly understand risk without getting bogged down.

Inconsistent layouts or disorganized reporting create confusion and can lead to micromanagement or oversight failures.

3. Avoid the “Data Dump” Trap

Todd highlights that many troubled credit unions had mountains of data… but no clarity.
 Board packets that keep expanding over time—without periodic pruning—bury critical insights.

Annual reviews of what stays, what goes, and how information is summarized are essential.

4. Dashboards Are Critical — But Must Be Thoughtfully Built

Dashboards should show:

• Where the CU has been
• Where it is now
• Where it’s trending next

They must also be paired with narrative analysis to flag:

• Variances
• Deviations from strategic/annual plans
• New risks
• New opportunities

5. The Biggest Blind Spot: Credit Risk Reporting

Credit risk is the No. 1 cause of failures.
 Todd explains how to reduce hundreds of pages into 2–3 meaningful pages with:

• Risk migration visuals
• LTV + credit score overlays
• Portfolio trends
• Business loan concentration & large-borrower exposure

6. Committees Create Risk — and Reporting Obligations

ALCO, lending, IT, risk committees…
 Boards need visibility but not minutiae.

Todd walks through how well-run credit unions:

• Summarize committee output
• Elevate red flags
• Keep the board focused on strategy, not operations

7. Real-World Stories—The Good, The Bad, The Ugly

Todd shares examples of:

• 39 unprofitable branches hidden in an overly detailed packet
• Boards blindsided by marijuana banking risk and resulting fines
• A $4 million depositor walking out because the board lacked context

These stories underscore the need for transparency, context, and prioritization.

Why This Matters

A strong board package:

• Improves governance
• Enhances regulator confidence
• Prevents surprises
• Supports faster, cleaner exams
• Keeps boards strategic
• Helps management demonstrate competence and control

This episode is a must-listen for CEOs, CFOs, lending executives, and directors looking to elevate their governance culture.