The Pulse (05-14-14)
May 14, 2014 ● Volume 03, Issue 19
The Pulse Archive
Credit Union News
Minnesota credit union growth continues in first quarter of 2014
Minnesota’s credit unions experienced sustained growth in most preliminary Q1 2014 industry measures, indicating that they continue to be a trusted choice as local, member-owned financial partners for both Minnesota consumers and businesses.
Year-over-year asset, deposit and loan growth at Minnesota credit unions between the first quarters of 2013 to 2014 was strong – growing by $704 million, $605 million and $687 million, respectively. Credit unions continue to support and strengthen communities while creating a positive impact on their own income statements.
“The growth we’re seeing is a good sign of consumer and business confidence,” said Minnesota Credit Union Network President & CEO Mark D. Cummins. “Credit unions are helping communities grow and are also contributing to Minnesota’s overall economic health.”
- The latest available membership results show that Minnesota credit union membership grew by 10,000 in the fourth quarter of 2013 to reach 1,617,000 – a 0.6 percent growth rate. This pace is faster than the 0.4 percent reported in the fourth quarter of 2012, and indicates that consumers continue to choose credit unions as their financial partner.
- Minnesota credit union assets grew by 3.82 percent year-over-year between the first quarters of 2013 and 2014, with a 3.14 percent growth between Q4 2013 and Q1 2014.
- Deposits at Minnesota credit unions increased 3.74 percent year-over-year from first quarter 2013 to 2014. Between Q4 2013 and Q1 2014, deposits increased by 3.36 percent.
- While loan balances fell 0.72 percent in Q1 2014, reflecting a continuing seasonal slowdown in loans seen across the country, year-over-year loan growth for the same period was strong at 6.67 percent between 2013 and 2014.
- Minnesota credit unions are rated as “well-capitalized” by the National Credit Union Administration (NCUA), with a reported net worth of 10.05 percent in Q1 2014. The NCUA considers a credit union as well-capitalized if its net worth is above 7 percent.
“Minnesotans are strong advocates for local, member-owned credit unions,” said Cummins. “Credit unions work for people – not for profit – and consumers continue to choose credit unions because they align with their values.”
Risk Based Capital
May 28 is deadline for credit unions to submit comments letters on the National Credit Union Administration (NCUA) risk-based capital bill proposal (RBC). Last week, former Senator Alfonse D’Amato (R-N.Y.), who was the chair of the Senate Banking Committee during the HR 1151 battle and led the development of the changes to the Federal Credit Union Act, including those on prompt corrective action, wrote to NCUA yesterday outlining how the agency would exceed its legal authority if it adopted the RBC proposal. View a copy of the letter submitted by Sen. D’Amato. Congress is weighing in on the NCUA’s risk based capital proposal with a letter signed by at least 285 House members. Reps. Peter King (R-NY) and Gregory Meeks (D-NY) spearheaded the effort to urge the NCUA to ensure that, whatever form it takes, a final rule does not adversely affect small businesses and credit union members, especially reduced liquidity and financing for families and small businesses. Minnesota Reps. Walz, Kline, McCollum, Bachmann, Peterson and Nolan signed the letter.
For more information and resources on writing your comment letter, please see the risk based capital page of the Minnesota Credit Union Network website.
MnCUN endorses Congressional candidates at April 24 PIC meeting
At its most recent meeting in April, the Minnesota Credit Union Network’s Political Involvement Committee (PIC) voted to endorse four strong credit union supporters for federal elected office in the upcoming November elections.
“In true credit union, bipartisan fashion, PIC voted to lend its strong endorsement to two Democrats and two Republicans,” said MnCUN Vice President – Governmental Affairs Mara Humphrey. “Each of these four people have demonstrated strong support for credit unions and their continued ability to serve their members’ needs.”
The candidates selected for the endorsement were Senator Al Franken (D), Representative Erik Paulsen (R-3rd), Representative Rick Nolan (D-8th) and Republican Party-endorsed Tom Emmer who is running for the open 6th District sea.
Senator Franken and Representative Nolan were both cosponsors and vocal proponents for expanding credit union member business lending in their respective bodies. Representative Paulsen has been a strong credit union supporter since first being elected in 2008, signing on to MnCUN-supported bills on Examination Fairness (H.R. 1553) and Privacy Notifications (H.R. 749). Emmer, during his time in the state Legislature was a strong credit union supporter and has pledged to work with credit unions if he is elected to represent the 6th Congressional District. While each of these candidates vary greatly in their ideologies, they are all stout defenders of the not-for-profit, financial cooperative model of credit unions.
PIC provides input and recommendations on legislative efforts at the state and federal level. Policy suggestions and regulatory roadblocks are brought to the attention of PIC to collectively formulate the Network’s positions on legislation. The committee also oversees the distribution of political action committee (PAC) contributions made to credit union-friendly candidates.
CUNA names Hampel as interim president/CEO
The Credit Union National Association (CUNA) announced last Wednesday that its Chief Economist, Bill Hampel, will serve as interim president/CEO, effective June 11. That is the same day that Bill Cheney, current CUNA president/CEO, returns to California to become president/CEO of Santa Ana-based SchoolsFirst FCU, the largest credit union in that state.
Hampel, a senior member of CUNA's credit union advocacy team in Washington, is one of the longest-tenured executives at CUNA, having joined the association as an economist in 1978, promoted to vice president in 1985 and to senior vice president and chief economist in 1992.
An expert on the economy and credit union issues, he is regularly interviewed by major national television, radio and print media. Hampel also presents the results of the annual holiday spending survey, which is conducted by CUNA and the Consumer Federation of America.
He has also testified numerous times before Congress and is a registered lobbyist, advocating on behalf of credit unions on a wide variety of issues.
"Bill has deep and broad knowledge and understanding of CUNA's top advocacy issues and operations of the organization. He has demonstrated an ability to bring that background to bear in making decisions in the best interests of our members," said CUNA Chairman Dennis Pierce, president/CEO of CommunityAmerica CU, Lenexa, Kan. "During this interim period between CEOs, I expect CUNA and its members will have a steady hand at the helm."
Cheney noted Hampel's nearly four decades of experience in credit union policy issues and with Congress, regulators, state associations, credit unions and the press. "I've worked with Bill on a host of issues affecting the credit union system at large and policy issues specifically," Cheney said, adding, "Bill understands intuitively what credit unions need and want; I fully endorse his selection to oversee CUNA's efforts during the interim period."
Prior to joining CUNA, Hampel was an assistant professor of economics at the University of Montana-Missoula. Before that he was an instructor of economics at Iowa State University at Ames.
During a one-year sabbatical in 1989, Hampel served as a staff member at Navy FCU, Vienna, Va., where he studied credit union operations and carried out a variety of consulting projects.
He was on the board of directors for Madison, Wis.-based Great Wisconsin CU (formerly CUNA CU) from 1991 to 2003, serving as board chair from 1999 to 2001. He served on the board of the National Cooperative Bank, which supports America's cooperatives and their members, especially in low-income communities, by providing innovative financial and related services.
Hampel is a member of the American Economic Association and the National Association for Business Economists. He holds a doctorate in economics from Iowa State University.
CUNA's search for a permanent CEO will continue throughout the summer; the CUNA Board hopes to make a hire by this fall.
Meanwhile, CUNA Vice President of Economics and Statistics Mike Schenk has been named acting chief economist for the association.
MnCUN to host Annual CEO Conference
The Minnesota Credit Union Network will hold its fifth annual CEO Conference once again at the Inn on Lake Superior in Duluth on June 25-27, 2014. Exclusively for credit union presidents and chief executive officers, this event features discussion of the issues, obstacles and opportunities facing credit unions today.
The conference will feature roundtable discussions and networking opportunities. In addition, the education component of the conference will examine many of the unique issues facing credit unions in Minnesota. Designed to be interactive and discussion-oriented, the event will also offer the opportunity to discuss obstacles facing the movement and to build consensus with other CEOs on possible solutions.
Headline speakers will include:
- Elizabeth Ellis, CFPB Deputy Assistant Director
- Keith Morton, NCUA Region IV Director
- Credit Union National Association Board Chair Dennis Pierce
- Bob Trunzo, President & CEO of CUNA Mutual Group
- Tom Hauser, KSTP-TV Reporter and host of “At Issue”
Additional conference and lodging details, along with a schedule of events, can be found on the CEO Conference page of the Network website. If you have questions about hotel room arrangements, contact MnCUN Director of Education Sue Groskreutz by email or at (651) 288-5521.
Unite for Good: Share your story with ACUC
Unite for Good stories will be making the trip to San-Francisco this summer for the America’s Credit Union Conference. Similar to this year’s GAC, CUNA plans to use the stories shared on the Unite for Good story sharing page, to create Unite for Good story panels to display at ACUC this summer. Head to the site and share your stories before May 19th in order to be selected. If you have any questions or comments please feel free to reach out to Angela Barnett or Amy Nigrelli.
Filene seeks CUs to pilot elder financial fraud tool
The Filene Research Institute – a consumer finance “think and do” tank – is looking for credit unions to test a new tools to help credit unions proactively identify, triage, and alert elder members to potential financial fraud. Selected credit unions will pilot the True Link Card prototype starting in July. To explain the project in greater detail, Filene will host a free informational webinar on Thursday, May 22, from 1 p.m.-2:30 p.m. to allow credit unions to learn more about the True Link Card prototype and the testing opportunity.
For additional information on True Link, click here. To register for Filene’s informational webinar, click here. With questions, contact the Filene Research Institute at (608) 661-3740.
Credit Unions in the News
State Legislative Update teleconference scheduled
SPOTLIGHT: Advertising of closed-end loan products
FFIEC publishes Cybersecurity webinar slides as part of awareness initiative
NCUA releases Spanish version of Share Insurance Estimator
Out for Comment
CUNA Strategic Services
The Network and CUNA form strategic endorsement relationships with various vendors to help your credit union compete in today’s financial environment. Through the Network Service Corporation (NSC), your credit union has access to a variety of products and services that help your organization meet the financial needs of its members.
CUNA Strategic Services (CSS) develops strategic alliance relationships to offer products and services to credit unions that contribute to the bottom line, add to your peace of mind, and enhance your credit union's relationships. The company is jointly owned by Credit Union National Association (CUNA) and the state leagues.
To learn more about CUNA Strategic Services and the products and services it has to offer your credit union and its members, contact MnCUN Director of Business Development Vickie Ganrude by email or at (651) 288-5515. Click here for a full list of CUNA Strategic Service providers