The Pulse (07-17-13)


The Pulse (07-17-13)

July 17, 2013 ● Volume 02, Issue 28

The Pulse Archive

Credit Union News

Letter to Klobuchar, Franken urges support of CU tax status

Many of Minnesota’s credit unions and their supporters are submerged in the "Don’t Tax My Credit Union” campaign. They’ve sent thousands of messages to Congress, urging legislators to preserve credit unions’ corporate income tax exemption.

This crusade became even more crucial recently when the Senate Finance Committee leaders asked all U.S. senators to weigh in on tax reform legislation and tell them which tax exemptions should be preserved and which ones – if eliminated – might provide revenue to fix the $16.7 trillion national debt.

Though the state’s credit unions have generated several thousand contacts to Congress, more response is needed to ensure that credit unions’ corporate income tax exemption remains intact. To drive the message home with the state’s senators in Washington, D.C., Minnesota Credit Union Network President & CEO Mark Cummins sent a personal letter last week to U.S. Sens. Amy Klobuchar and Al Franken. The letter implored them to consider the benefits that credit unions are able to provide consumers and the economy because of their tax status.

"For every $1 of credit unions’ corporate income tax exemption, $10 is put back into the pockets of your constituents,” Cummins told the senators in his letter. "Imposing additional taxes on credit unions would reduce the financial savings they can pass on to all consumers. The elimination of the credit union corporate income tax exemption would result in a tax increase on all 96 million credit union members in the United States, and could ultimately lead to the elimination of credit unions.”

Cummins also sent a message to all credit union presidents in Minnesota, urging them to contact their members immediately. By using a sample email, which can be found on the Network’s Tax Advocacy Resources page, credit unions can easily spread the word of the threat and urge members to contact their representatives and senators to deliver the Don’t Tax My Credit Union message!

"Directly asking credit union members to act is how we are going to be successful,” Cummins said.

With questions about reaching out to members, or sending messages to your senators, please contact MnCUN Political Advocacy Director Ryan Smith by email, or call (651) 288-5533.

Final first-quarter analysis shows CUs gaining in membership, asset quality

Minnesota credit union financial performance indicators were a mixed bag in the first quarter of 2013 as the Minnesota economy gained 33,000 jobs. The state’s economy is expected to continue to improve, however, mostly due to better performance in the housing, energy and durable goods sectors. With this backdrop, credit union operations results are also expected to make modest gains.

Minnesota’s credit unions experienced strong net growth in the first quarter and asset quality measures also improved. The following are summaries of performance indicators from MnCUN’s First-Quarter Statistical Profile, compiled by the Credit Union National Association.

  • Loan balances decreased 0.5 percent in the first quarter of 2013, down from a 0.9 percent increase in the first quarter of 2012. A 1.6 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.
  • Minnesota credit unions reported strong net membership growth in the first quarter, up 6,000 to reach 1,579,000. This represents a 0.7 percent growth rate, a pace just shy of the 0.9 percent reported in the first quarter of 2012.
  • Asset quality measures improved in the first quarter. Overall, the 60-plus-day dollar delinquency rate fell to 0.90 percent, a 0.19 percent decline compared to the fourth quarter of 2012. Net chargeoffs declined to 0.44 percent in the first quarter – a 0.14 percent decline compared to the fourth quarter. The Minnesota credit union delinquency rate is less than one-half that reported by Minnesota banking institutions.
  • Minnesota credit unions reported first quarter earnings of 0.76 percent, below the 1 percent reported one year earlier. Net worth grew slower than assets in the first quarter decreasing the net worth-to-asset ratio to 9.9 percent, slightly below the national average of 10.3 percent. The percentage of Minnesota credit unions considered "well-capitalized” (with PCA net worth above 7 percent) remained at 96.3 percent.

For additional insights from the report, go to the Minnesota CU Statistics page of Network website to download the full First-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 Director of Communications Connie Kuhn by email or call (651) 288-5527, or contact Communications Specialist Kelli Sandhurst by email or at (651) 288-5503.


CU experts to offer valuable insight at MnCUN's Fall Conference

The Minnesota Credit Union Network is excited to announce the speaker lineup for its Fall Conference. Set for Sept. 6-8 at Madden's Resort in Brainerd, this conference features sessions that provide insight on topics including credit union best practices, ethics, revenue generation and supervisory committee duties.

This year's conference speakers include economics expert Roger Tutterow and nationally-known business consultant Fred Schafer, along with credit union experts David Reed, Bob Hoel and David Seibert. During Tutterow’s session, he will provide credit union professionals and volunteers valuable insights into the economic, political and business climates in 2013 and beyond. MnCUN's Compliance & Audit Consultant Marcia Armstrong Lewis will also lead a Volunteer Achievement Program (VAP) session focused on the basics of assessing and managing credit union risk.

Register for Fall Conference today and make sure you have spot at this premier conference. For more information and to register, visit the Fall Conference page of the Network website.

One week left: Don't forget about Dora, Louise, Desjardins!

Don’t miss out on the chance to promote the unique projects, products and services offered by your credit union. Submit your entries for the statewide Dora Maxwell, Louise Herring and Desjardins awards competition and show off the ways your credit union benefits its staff, members and communities.

The deadline for entries is next Friday, July 26. To submit an entry, visit the National Awards Programspage of the Network website. This webpage also provides descriptions of each awards program and eligible activities, as well as checklists on what to provide with each entry.

Credit unions are encouraged to enter in one or all of the national awards programs. Winning submissions in the state competition will advance to the national competition for judging this fall. With questions, contact MnCUN Communications Intern Jane Lee by email or call (651) 288-5513.

Credit Unions in the News ...

Minnesota credit unions are making headlines every day! Follow the links in the stories below to read more about the outstanding programs, new initiatives and well-deserved recognition received by your peers in recent weeks. Got news of your own? Send stories, pitches, press releases and published articles to MnCUN Director of Communications Connie Kuhn.

  • Minnesota Valley Federal Credit Union was voted "best bank” earlier this month in the Mankato Magazine’s Readers’ Choice Awards … more

  • Royal Credit Union was crowned as one of the Twin Cities Social Madness champions last week by the Minneapolis/St. Paul Business Journal … more

  • At NAFCU’s annual conference last week, Hiway Federal Credit Union President/CEO Jeff Schwalen addressed a problem with the Consumer Financial Protection Bureau’s qualified mortgage rule, which would ultimately result in CUs losing money … more

  • St. Paul Federal Credit Union is helping students understand savings and the impact that money has on their future. The credit union’s efforts are part of a growing trend to better educate youth about finances. … more


Minn. CUs use unique tactics to spread "Don't Tax My Credit Union"
Senate vote to make Cordray official CFPB leader
20 credit unions have met Fair Share goals for 2013

CFPB publishes final rules clarifying Ability-to-Repay, mortgage servicing
Final 2014 rural and underserved lists excludes some Minn. counties
CFPB issues mortgage readiness guide
Fed publishes list of "small issuers" exempt from interchange fee standards
FinCEN warns of financial scams


Out for Comment

 Agencies issue proposed rule to exempt some HPMLs from appraisal reqs

Convenience of Shared Branching helps Minnesota Valley earn "best bank" accolades


Minnesota Credit Union Network
555 Wabasha Street N, Suite 200
St. Paul, MN 55102

(651) 288-5170
(800) 477-1034