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11/5/2014
CUNA Mutual: Recapture Loans and Target New Opportunities

The Pulse (02-26-14)









The Pulse (02-26-14)

Feb. 26, 2014 ● Volume 03, Issue 8

 

The Pulse Archive

Credit Union News


Risk-Based Capital Proposed Rule: CUNA creates dedicated page, NCUA accepting comment letters

The Credit Union National Association (CUNA) has created a dedicated web page which provides a summary of the proposed rule, a link to NCUA’s calculator, as well as to CUNA’s own calculation simulator. You can access CUNA’s web page, along with the related links, by visiting the NCUA Risk-Based Capital Proposed Rule page on the MnCUN website. There are also links available to a video discussing the proposal and to a form message a member credit union can fill out with commentary that will be directly sent via CUNA to the NCUA. CUNA is also urging NCUA to hold public hearings on the risk-based capital proposal.

The MnCUN Regulatory Review Committee is meeting soon to discuss the proposed rule. MnCUN will be submitting a comment letter to NCUA, and will also provide that letter to member credit unions to use as a sample for their own comment letters. Please forward any comments you have regarding the proposed rule to MnCUN General Counsel, John Wendland.

The comment period will be open for 90 days after publication in the Federal Register, which is expected soon.


MnCUN & CUNA: See your membership at work!

Every day your state and national trade associations – the Minnesota Credit Union Network (MnCUN) and Credit Union National Association (CUNA) – work on behalf of credit unions. We are committed to providing value to credit unions and to not take your membership for granted!

On the state level, MnCUN works to ensure the success, growth and vitality of Minnesota credit unions. We do this by creating a positive public environment through leadership, political advocacy, education, awareness and regulatory assistance. We are keenly focused on creating the environment to help credit unions grow market share.

MnCUN has a three-year strategic plan, which grounds our core activities in four overarching goals:

  • Create a favorable legislative environment
  • Ease the regulatory burden on credit unions
  • Increase marketplace awareness of credit unions
  • Provide robust product & service offerings to credit unions through strategic partnerships

Specific measurable goals and annual initiatives are derived from these broad goals to maintain our strategic framework and create a shared vision for the association and credit unions throughout the state. For detail on MnCUN’s activities and accomplishments in 2013, visit the membership page of the Network website.

On the national level, CUNA is the largest credit union trade association in the U.S., serving nearly 7,000 credit unions. CUNA works closely with MnCUN and other state leagues to:

Represent the interests of credit unions before the U.S. government, including Congress and federal regulatory ageneies

  • Organize and focus the political efforts of credit unions
  • Act as the voice of the credit union movement before the public (through the press and other media)
  • Provide education and training resources for the development of credit union staff and volunteers
  • Provide various forums for credit unions to meet and share ideas and views
  • Provide access to cooperative products and services for credit unions

On a quarterly basis, CUNA issues a publication called Membership@Work that provides an overview of its activities in recent months. All Membership@Work documents are posted on the membership page of Network website as well. The fourth quarter 2013 issue discusses CUNA’s efforts to ease qualified mortgage compliance for credit unions, highlights mortgage training resources, and provides information about how CUNA works to protect credit unions on Capitol Hill and its specific efforts in the Target data breach.

Want to know more? Then we want to hear from you! Members of the MnCUN team are available to meet with you and your staff to discuss our strategic initiatives and engagement opportunities to get the most out of your dues dollars. With questions, contact MnCUN’s Vice President – Association Services Kristina Wright by email or at (651) 288-5507.


Foundation Committees to hold engaging events at 2014 Annual Meeting

The Minnesota Credit Union Foundation is an organization dedicated to providing the resources for credit unions and communities to prosper and thrive. Two of the Foundation Committees, the Family Involvement Council and Minnesota Credit Unions for Kids, will be hosting events at the MnCUN 2014 Annual Meeting to support their respective missions.

CU4Kids Blackjack Tournament & Awards

New location - same fun! The CU4Kids committee will once again be hosting a Blackjack tournament and awards ceremony during the Minnesota Credit Union Network Annual Meeting. The 2014 Annual Meeting is being held in a new location; Radisson Blu at the Mall of America!

The Blackjack tournament and awards ceremony will be held on Friday, April 25 with a tentative start time of 7 p.m. Exhibitors and annual meeting attendees of all skill levels are welcome to participate in the Blackjack tournament!

Once again, this event will have Sponsorship Opportunities! Your sponsorship dollars go directly to Gillette Children's Specialty Healthcare. As a $700 Tournament Sponsor, your logo will be displayed on event flyers. There will also be additional levels of sponsorship for the night's event. For more information contact Dave Engler.

Family Involvement Council silent auction

In 2013 The Family Involvement Council (FIC) raised $7,500 at its silent auction held during the Minnesota Credit Union Network’s Annual Meeting. This year the FIC is looking to raise even more! All funds raised go toward the FIC Scholarship to assist members pursuing post-secondary education.

This fundraiser allows the FIC to distribute funds to students on behalf of Minnesota credit unions. It’s an incredible statewide initiative that speaks directly to the credit union difference. One hundred percent of the funds raised go to Minnesota credit union members who are looking to further their education. Since 1997 FIC has raised and distributed $136,500. For more information please contact Bridget Moeller.

While both of these committees focus on different initiatives, they share the Minnesota Credit Union Foundation’s goal of helping credit unions and communities to flourish and grow. As you prepare for the 2014 Annual Meeting, remember to include these events on your schedule!



Industry expert Jim Aho to lead Financial Principles & Business Planning Workshop

Regardless of whether the country is in a period of recession, expansion or some stage in between, it is vital for credit union employees to have a firm understanding of financial principles. The Minnesota Credit Union Network's Financial Principles & Business Planning Workshop (formerly known as Financial Management School) blends theory with practical application to provide professionals with a thorough understanding of the fiscal aspects of the credit union.

About the School

This training will develop a foundation of the basic financial principles and guide attendees on how to take that knowledge to the next level. Using their own credit union's financials, attendees will calculate, examine and discuss key financial ratios. The ratios will then serve as a basis for an analysis on the strategic issues and financial challenges facing their credit unions today and into the future. During the discussion, attendees will:

    • Perform a personalized analysis of their credit union's financials;
    • Engage in dialogue about the financial challenges facing today's credit unions;
    • Work through a mini-planning session for their credit union; and
    • Receive at least three new ideas that can be implemented at their credit union.

About the Presenter

Jim Aho has been serving credit unions in various capacities since 1973. He holds a CPA certificate and travels throughout the United States providing education and management advisory services to credit unions of all sizes. In addition to writing numerous books and several of CUNA's Volunteer Achievement Program modules, Aho is focused on helping credit unions grow to the "next level" through strategic planning, organizational restructure, staff development and training programs. Over the years he has worked with over 900 credit unions throughout the United States and is a frequent speaker at credit union meetings across the country.

For more information visit the Financial Principles page of the Network website.



CUNA Mutual Group Announces 2014 Loan Generation Marketing Webinar Series

CUNA Mutual Group’s 2014 Loan Generation Marketing webinar series began Jan. 21 at 2 p.m. with a session focused on recapturing auto loans and targeting new opportunities.

"Loan Generation Marketing campaigns help credit unions recapture loans lost to competitors, and acquire new loans, by identifying a credit union’s best loan opportunities using credit pre-screens and then sending the right message at the right time,” said Steve Hoke, director of loan growth products for CUNA Mutual Group. "Campaigns feature a variety of loan types, including auto, mortgage, home equity, credit card and personal loans,” Hoke added.

Webinars are conducted by CUNA Mutual Group Loan Generation Marketing specialists and address top issues facing credit unions, including how to grow larger, more stable loan portfolios, create deeper credit union member relationships and generate interest and member-friendly non-interest income.

"Attendees will gain valuable insights into how to grow loan volume, increase share of wallet, retain and expand membership and grow credit union assets with a Loan Generation Marketing campaign,” said Hoke.

Webinars are free for all credit unions, run from 2 -2:30 p.m., and conclude with a live question & answer session.

2014 Loan Generation Marketing Webinars:

    • Auto Loan Recapture®, Universal Auto and Next Car Purchase: Recapture Loans and Target New Opportunities -Jan. 21, March 5, May 6, July 16, Sept. 10, Nov. 5
    • Credit Card and Personal Loans: Growing Unsecured Loans -Jan. 28, Aug. 5, Nov. 12
    • Mortgage Recapture and First-Time Home Buyers: Increase Your Share of the Mortgage Market -Feb. 5 and July 22
    • Home Equity Recapture and Home Equity Acquisition: Grow and Diversify Your Loan Portfolio -March 18 and Aug. 14
    • Loan Generation Marketing: A Comprehensive Strategy -Oct. 7

To register, go to visit CUNA Mutual online.


Jim Seifert of Hiway Federal Credit Union recognized for 41 years of continuous service

Earlier this month, Hiway Federal Credit Union honored Jim Seifert as a Credit Union Builder through the Minnesota Credit Union Foundation (MnCUF) for his 41 years of service to the institution.

This distinction recognizes those who have dedicated time and energy to building the credit union movement. Nominations for this award are made by credit unions and other organizations in honor of or in memory of a significant individual who has been instrumental in their success.

Seifert began his career with Hiway in 1972 as Controller & Vice President of Finance. He was promoted to President in 1991, a role he held for 11 years. Upon his retirement in December of 2002, he was appointed to the Board of Directors, where he served another 11 years. Seifert retired from his volunteer service in October of 2013.

During the four decades of Jim's service to Hiway, assets grew from $17 million to $919 million.

"Jim was a remarkable leader at Hiway during a time of tremendous growth for our institution, and he was committed to supporting high-quality services that members expect and deserve,” said Hiway Federal Credit Union President Dave Boden. "Under Jim’s leadership, Hiway emerged as a full-service financial institution and added many new convenient services, such as debit cards and internet banking.”

Seifert was actively involved in the Minnesota credit union industry, serving for six years on the Minnesota Credit Union Network Board of Directors from 2000-2006. Seifert was a perpetual supporter of Credit Union for Kids, which supports Minnesota’s Children’s Miracle Network-designated hospital Gillette Children’s Specialty Healthcare. As a member of the Credit Unions for Kids steering committee, Seifert helped to coordinate a variety of fundraisers and organized casual days and hot dog cookouts at Hiway, which continue today.

"The Minnesota Credit Union Foundation is proud to honor Jim Seifert for his dedication, innovation and his long-lasting commitment to the credit union movement,” said MnCUF Chair Pat Brekken. "His passion for service excellence was evident and lives on at Hiway.”

Seifert joins 24 other individuals who have been honored over the past six years with the MnCUF's Credit Union Builder Award. The names of the recipients and the contributing credit unions are permanently displayed in the Minnesota Credit Union Network's lobby as a tribute to their accomplishments. The honorees receive acknowledgment from the Minnesota Credit Union Foundation, and donors are also listed online and in the Foundation's annual report.

To learn more about MnCUF’s Credit Union Builder Award and to view a list of those who have been honored with this recognition, visit the Foundation website.


Credit Unions in the News

Follow the links on the stories below to read more about the outstanding programs, new initiatives and well-deserved recognition received by your peers recently. Got news of your own? Send stories, pitches, press releases and published articles to MnCUN Director of Communications Connie Kuhn.

The Magic Inside Taste Of The Timberwolves
(NBA.com © 02/22/2014)


Tobish family fundraiser set for Feb. 22
(RiverTowns.net © 02/21/2014)


The Minnesota Credit Union Foundation is offering $7,500 in grants
(CUNA News Now © 02/21/2014)


Target breach’s toll on Minnesota credit unions: $750,000
(Minneapolis Star Tribune © 02/20/2014)


Sacred Heart Hospital Employees Credit Union to merge with Royal Credit Union
(press release, 02/19/2014)



Tax reform proposal to be announced
Minnesota State Legislature begins second session
MnCUN encourages questions for GAC attendees through TwitterView all Governmental Affairs news stories

NCUA Announces "Listening Sessions”
NCUA publishes Board Action Bulletin from recent Open Board Meeting
FinCEN Finalizes AML Regulations for Housing Government Sponsored Enterprises

 

Out for Comment

Proposed Rule 710, Voluntary Liquidations of FCUs


CUNA Mutual Group posts earnings growth in 2013

CUNA Mutual Group’s strong operating results in its core credit union business led to the company’s earnings growth in 2013, as consolidated Generally Accepted Accounting Principles (GAAP) operating revenue and net income increased over 2012.

CUNA Mutual Group recorded $162 million of net income (GAAP) in 2013, compared to $150 million in 2012. Strong operating results, particularly in lending, life and health and property & casualty products, helped offset weather-related losses in the company’s crop insurance business. Solid investment performance also contributed greatly to higher net income in 2013.

*GAAP Financial Results

2013

2012

Total Operating Revenue

$2.8B

$2.6B

Operating Revenue Growth

8.6%

3.4%

Net Income

$162M

$150M

Consolidated Surplus

$2.4B

$2.5B

*Financial results are from the company’s consolidated GAAP statements

 

GAAP operating revenue grew by 8.6 percent in 2013. An improved lending environment, the company’s focus on investing in and growing its consumer product lines, and growth in the company’s crop insurance business, were key factors driving the year’s revenue growth.

Net income of $162 million for 2013 grew 7.8 percent over 2012. "Strong operating performance in most of our credit union products contributed to earnings growth in 2013,” said Alastair Shore, executive vice president and chief financial officer. "Low catastrophic losses in our Auto and Home and Credit Union Protection products helped offset weather-related losses from our crop insurance business. We continue to invest in new capabilities to grow our core credit union businesses, while improving our already strong capital position.”

The company continued to build its financial strength. Statutory total adjusted capital of CMFG Life Insurance Company, CUNA Mutual Group’s lead life insurance company, grew to $1.8 billion in 2013, up $152 million from 2012. The company’s consolidated GAAP surplus ended the year at $2.4 billion, a decline of 4 percent from 2012 despite strong earnings due to reduced net unrealized gains in the investment portfolio driven by rising interest rates.

A.M. Best recently affirmed CUNA Mutual Group’s key insurance companies’ ratings at "A” (Excellent), the third highest of 16 financial strength categories, with a stable outlook.

CUNA Mutual Group’s total cash and investment holdings as of Dec. 31, 2013 were $11.1 billion. The company’s investment portfolio is well diversified with an average credit quality of "A.”

"CUNA Mutual Group has clear momentum. We are financially strong, investing in our company for the long term, and committed to credit unions and their members,” said Robert N. Trunzo, President & CEO. "We remain focused on serving hardworking Americans with the products and services they need to build a strong financial future and protect what matters most.”

CUNA Mutual Group continued its strong advocacy for credit unions in 2013, contributing $38 million to support credit union leagues and industry efforts. In 2013, CUNA Mutual Group also invested more than $50 million primarily to strengthen its lending compliance and grow its consumer business. Benefits paid to domestic credit union policyholders in 2013 of $981 million were up eight percent over 2012.

Source: CUNA Mutual Group Company Earnings Reports: 2012, 2013