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CUNA Mutual: Loan Generation Marketing: A Comprehensive Strategy

The Pulse (04-03-13)









The Pulse (04-03-13)

April 3, 2013    ●    Volume 02, Issue 13

 

The Pulse Archive

Credit Union News

Register now and join us at the 2013 Annual Meeting & Convention

Don't miss out on a weekend packed with education, networking opportunities and entertainment. Registration is now open for MnCUN's 2013 Annual Meeting & Convention!

Taking place May 17-18 at the DoubleTree Hotel in Bloomington, this conference offers the state's largest credit union tradeshow, with opportunities for vendors to exhibit their products and services and connect with credit union leaders. There are also education sessions for credit union staff and volunteers, alike, as well as activities for Crew members – MnCUN's young professionals group.

Education sessions for credit union professionals and volunteers begin Friday afternoon and continue on Saturday. Additional ticketed events are offered throughout Annual Meeting weekend, including Volunteer Achievement Program sessions and the Awards Banquet on Saturday evening. You'll also have a chance to place your bids on a host of items at the Family Involvement Council's silent auction, and get your colleagues together for blackjack and other games during the Minnesota Credit Unions for Kids event on Friday night.

For more a complete conference schedule and online registration, go to the 2013 Annual Meeting page of the Network website.


Year-end profile: CU growth strong; Fourth quarter performance mixed

Minnesota credit unions experienced strong growth in 2012, according to year-end data from the National Credit Union Administration. Last year alone, more than 62,000 Minnesota consumers joined a credit union, which is more than a 4 percent growth rate. That's 15 times the membership growth in 2011, and is a testament to the value and relevancy of credit unions in today's financial service marketplace.

As reported in the Minneapolis/St. Paul Business Journal last week, Minnesota credit unions were among the fastest-growing in the U.S. in deposits, assets and membership.

  • The deposit growth of Minnesota credit unions in 2012 was fourth highest in the country, and asset growth was fifth highest.
  • Minnesota credit unions experienced the sixth highest year-over-year growth rate of any state in the U.S. at 4.2 percent, ranked behind:
    • Idaho at 7.6 percent growth
    • Virginia at 6.3 percent growth
    • Alaska at 5.9 percent growth
    • Utah at 4.5 percent growth
    • Washington at 4.3 percent growth


Other Minnesota credit union financial performance indicators were a "mixed bag” in the fourth quarter, as the Minnesota economy gained 13,000 jobs. The following excerpts are summarized in MnCUN's Fourth quarter statistical profile.

  • Loan balances increased 0.8 percent in the fourth quarter of 2012, down from a 1.1 percent increase in the fourth quarter of 2011. A 3.1 percent increase in the member business loan portfolio made it the fastest growing loan category. Consumers continued deleveraging their home equity loan balances, which fell -2.5 percent.
  • Asset quality measures improved in the fourth quarter. Overall, the 60-plus-day dollar delinquency rate fell to 1.09 percent. Net charge-offs declined to 0.58 percent in the fourth quarter. The Minnesota credit union delinquency rate is almost one-half that reported by Minnesota banking institutions.
  • Minnesota credit unions reported fourth quarter earnings of 0.88 percent, below the 0.95 percent reported one year earlier. Net worth grew faster than assets in the fourth quarter, increasing the net worth-to-asset ratio to 10 percent, slightly below the national average of 10.4 percent.

Looking ahead, economists expect improved growth in 2013 due to improving housing, energy and durable goods sectors. For additional insights from the report, click here to download the full Fourth quarter Minnesota Credit Union Profile.

Credit unions are encouraged to share this information internally and with members of the media, drawing comparisons and contrasts with your individual credit union's data. With questions about the report's information and data, contact MnCUN Controller Tommy Rempfer by email or at (651) 288-5511. With questions about disseminating this information to the media or your members, contact MnCUN Communications Specialist Kelli Sandhurst by email or at (651) 288-5503.


State deposit program now available to Minnesota credit unions

The Minnesota Credit Union Network has been working on credit unions' behalf to ensure their ability to participate in a state deposit program – the Minnesota State Board of Investment's Certificate of Deposit Program. Credit unions are now able to participate in this program in a way that is on par with banks, and the Network has worked with the State Board of Investment to increase the amount credit unions are able to access through this program to $1.5 million.

The Certificate of Deposit Program provides three- to six-month CDs to participants, with a maximum investment of $1.5 million per financial institution. This program is open to state and federal credit unions chartered in Minnesota, regardless of their affiliation with the Minnesota Credit Union Network. The next offering of this program is Thursday, April 4.

To participate in this program, credit unions must use one of the following clearinghouse financial institutions:

  • Alloya Corporate Credit Union;
  • U.S. Bank, Milwaukee;
  • Wells Fargo Bank, Minneapolis; or
  • United Bankers Bank, Bloomington.

Credit unions are encouraged to take advantage of this state deposit program that provides the opportunity to be part of an important state initiative. Information about the specifics of the program is outlined in the state's Certificate of Deposit Program brochure. If you are interested in participating with the April 4 offering, contact the Account Executive at your clearinghouse to set up your credit union. With questions about the state deposit program, contact the Minnesota Board of Investments at (651) 296-3328.


Credit unions celebrate Financial Literacy Month in April 

Credit unions, businesses, states and government agencies around the country celebrate April as Financial Literacy Month. Credit unions have a foundational belief in financial education, and this month provides an opportunity for credit unions to highlight their financial literacy efforts.

Personal finance is a top priority for credit unions because improving financial literacy, increasing personal savings, decreasing debt and living within a budget is a formula for success. While the offerings and activities of no two credit unions are the same, all credit unions operate with the belief that educated consumers – both young and old – make better members.

The Minnesota Credit Union Network and Minnesota Credit Union Foundation join forces this month to encourage credit unions to make their financial education efforts known to their members and to the local media.

  • Reach out to newspapers and reporters to educate them on the credit union difference and the unique benefits that your credit union provides to consumers.
  • Celebrate Financial Literacy Month with an open house, creating awareness of your programs, tools, products and services that encourage saving, budgeting and wise spending.
  • Inform your community about why credit unions are the smarter choice for financial services, and encourage your members to make the credit union their primary financial institution.
  • Take part in National Credit Union Youth Week by participating in the national savings challenge.

For additional information, celebration ideas and helpful resource links, visit the Financial Education page of the Network website or the Minnesota Credit Union Foundation website.


Commerce Commissioner to visit PCU student branch at Tartan HS

The Minnesota Department of Commerce coordinates a variety of statewide outreach efforts to complement Gov. Mark Dayton's proclamation of April as Financial Literacy Month. This week, Commerce Commissioner Mike Rothman will observe peer-to-peer financial education in action while touring Postal Credit Union's student branch at Tartan High School.

The Department of Commerce will also host its third annual Financial Literacy Roundtable in St. Paul, which brings together approximately 200 stakeholder groups from nonprofits, local governments, private enterprises, and financial institutions. The Minnesota Credit Union Network and Minnesota Credit Union Foundation are regular attendees, along with a handful of other credit unions from around the state.

The PCU event and the Financial Literacy Roundtable are two of nearly 40 outreach and education events across Minnesota scheduled by the Commerce Department throughout April. These financial education events are intended to raise awareness of the need for consumers to have the skills to make well-informed financial decisions during all life stages. The Department of Commerce's events this month target consumers in four categories: youth, higher education, families and seniors.

Additional information about the Department of Commerce's April events can be found on the Commerce website. Additional credit union resources are available on the Network's Financial Education page or from the Minnesota Credit Union Foundation.


Jump$tart Coalition event to focus on youth financial literacy strategies

Minnesota credit unions are invited to participate in the Minnesota Jump$tart Coalition's annual seminar. Slated for Thursday, April 18, this year's event is entitled "Strategies for Increasing Financial Literacy For Minnesota Youth,” and will feature Gina Blayney, President & CEO of Junior Achievement of the Upper Midwest.

Blayney will discuss the rapidly-changing education and business landscapes, which require changes in how students are taught and prepared to succeed in today's global economy. She will present research data on personal finance skills and how that information will shape the future of business/education partnerships. The event takes place from 3 p.m.-6:30 p.m. and includes three breakout sessions for attendees, a vendor tradeshow and tours of the Junior Achievement facility in Maplewood.

For additional information and online registration, visit the Minnesota Jump$tart Coalition website.


Harry Carter

Tom Smith
Credit Union Notes …

TopLine Federal Credit Union President & CEO Harry Carter has announced that he will retire at the end of this year. The TopLine Board of Directors has named TopLine Executive Vice President and Chief Operating Officer Tom Smith to succeed Carter.

Carter joined TopLine FCU in 1999. He has been an active leader during his 22 years in the credit union industry, including serving as Chair of the Minnesota Credit Union Network Board of Directors and serving as Chair of the North Hennepin Area Chamber of Commerce Board of Directors, as well as several other boards and organizations.

Smith has more than 21 years as an executive in the financial services industry. He has been part of the TopLine FCU senior management team since 2008, joining the credit union as Vice President and Chief Lending Officer.

 

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CFPB issues bulletin on indirect lending
Credit CARD Act Rule finalized
Reg E amended to reflect changes to ATM disclosure requirements
CFPB to study compliance costs
Report issued on Fair Debt Collection Practices Act
FHFA announces streamlined modification initiative

 

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