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CU CEO CONFIDENCE INDEX RISES
updated 08/26/15 01:56 PM
In Better Spirits Regarding Economy
Catalyst Corporate FCU's CEO Confidence Index bounced up in the second quarter, after see-sawing up and down the previous four quarters.

In the Second Quarter 2015 Credit Union Confidence Survey, the Index registered 31.46, up from 30.22 in the first quarter. The Present Situation Index increased from 28.70 last quarter to 31.08 this quarter, while the Expectations Index advanced to 31.66 from 30.99 in first quarter.

“The uptick in CEO confidence makes sense, as some strong economic numbers have been released since the first quarter that have had a positive financial impact on credit unions – namely vehicle and home sales,” said Steven Houle, vice president of Catalyst Strategic Solutions’ Advisory Service.

“U.S. auto sales were strong again in July, with an annualized sales rate of 17.46 million units. What makes this number impressive is that it came so quickly after a record month in May,” Houle said. “May’s annualized sales rate of 17.63 million units was the strongest since before the recession. More Americans are buying cars, and credit unions are the beneficiaries.

Home sales also have been strong and are adding to credit union loan growth, Houle said. “Existing home sales increased in June to a 5.49 million annualized rate, which was the strongest since February 2007. With this level of activity, 10 percent or more loan growth is not out of the question for the industry in 2015. Furthermore, if the Fed keeps a slow and steady pace with their interest rate increases, interest rates should continue to be accommodative for borrowers.”

CEOs’ assessment of members’ current financial condition increased from 25.25 in the first quarter to 27.09 in the most recent survey. Confidence in their own institutions’ current financial condition also climbed from 32.16 the first quarter to 35.05 in the second quarter survey.

CEOs’ optimism about the short-term economic outlook improved, as well. The percentage of CEOs’ expecting members’ financial condition to improve over the next six months rose from 28.79 to 29.66. Optimism about their own institutions’ financial condition in the next half of the year also jumped from 38.64 to 41.91.

Expectations regarding loan demand over the next six months increased to 32.51 after registering 31.12 last quarter. Anticipation for share deposit growth over the next six months declined to 22.55 from 25.38 in the first quarter.

“Perception often creates reality, so it is exciting to see an increased confidence level,” said Winona Nava, president and CEO of Guadalupe Credit Union in Santa Fe, New Mexico.

“On the flip side,” she said, “the ongoing political debates and campaigns may have a negative impact, since the focus in recent years has been to point out the negative, rather than paint an optimistic picture of the future. Psychologically, this may drive down consumer confidence levels leading up to next year’s presidential election.”

Guadalupe CU, a $137 million-in-assets community development financial institution, serves members of modest means. Nava said that jobs and wages in her area have not increased much, but loan demand has grown, positively impacting the credit union’s net interest margin. “And, interest rates seem likely to rise by year end, but only modestly, so that is reassuring,” she said.

Catalyst Corporate’s quarterly confidence survey – started a decade ago – was sent to 2,063 credit union CEOs across the nation in July 2015; 204 credit union professionals responded, for a response rate of 9.9 percent.

Using a scale ranging from negative (-100) to positive (+100), respondents registered their confidence levels in six key areas to create an overall index, as well as a snapshot of present-day feelings and future expectations. The areas CEOs were asked to evaluate are:

  • Current financial condition of members
  • Current financial condition of credit union
  • Anticipated financial condition of members in six months
  • Anticipated financial condition of credit union in six months
  • Anticipated loan demand at the credit union in six months
  • Anticipated share deposit growth at the credit union in six months

Additional details, including graphs with the survey’s historical data, are available at www.catalystcorp.org.

 
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ADDITIONS TO SEPT. 'HIKE THE HILL' updated 08/24/15 12:08 PM
Coffee With Regulators and MBL
In two weeks, the California and Nevada Credit Union Leagues’ will host a “Coffee with the Regulators” meeting during the annual Hike The Hill gathering on Capitol Hill (Sept. 8-10). Credit union attendees will discuss relevant and important issues with officials from the National Credit Union Administration (NCUA) and Consumer Financial Protection Bureau (CFPB).

FHA ISSUES STATEMENT ON 'PACE' LOANS updated 08/24/15 02:41 PM
Consistent With Leagues' Comments
On Monday, the Federal Housing Administration (FHA) issued a policy statement on Property Assessed Clean Energy (PACE) that is consistent with comments from the California and Nevada Credit Union Leagues’ position on the issue.

REP. MCCLINTOCK SUPPORTS MBL RULE updated 08/21/15 10:45 AM
Submits Letter to NCUA
As reported in the California and Nevada Credit Union Leagues’ Advocacy Blog, Representative Tom McClintock (R-El Dorado) is now the second member of Congress to send a support letter to the National Credit Union Administration (NCUA) in support of credit unions and their proposal to modernize the member-business lending (MBL) rule. Rep. Julia Brownley (D-Ventura) sent a letter last week.

WHAT'S DRIVING MEMBERSHIP GROWTH updated 08/19/15 11:59 AM
Three California Perspectives
Competitive products and services don’t tell the whole story of why membership continues to soar at several credit unions in California. Neither does the growing economy.

RMJ TOURNEY RAISES NEARLY $60,000 updated 08/19/15 10:39 AM
Event Sold-Out With 144 Golfers
The Richard Myles Johnson (RMJ) Foundation/CUNA Mutual Golf Tournament, held August 17 at the Newport Beach Country Club in Newport Beach, CA, raised nearly $60,000 for the state foundation for credit unions in California and Nevada.

'PACE' EXPANSION ATTEMPT DEFEATED updated 08/18/15 10:36 AM
League Engaged Lawmakers on Issue
The California Credit Union League has helped defeat an attempt in the California legislature (Senate Bill 602) to give super-lien rights to unregulated lenders through Property Tax Assessed financing.

CALL TO ACTION: MBL COMMENTS NEEDED updated 08/17/15 04:28 PM
NCUA Deadline is Aug. 31
More positive comment letters that support the National Credit Union Administration’s (NCUA) proposed member business lending rule are needed to help the agency shape its final rule—including letters from your credit union and your business members.

CA CUs AID FIRE VICTIMS updated 08/14/15 03:20 PM
Fundraising Efforts Continue
As more than dozen fires raged on in northern California in recent weeks, area credit unions stepped up efforts to help—supplying the hard-working firefighters with goodie baskets of water, food, and supplies; helping in large animal rescues and defending family farms; and raising much-needed donations to help those who have suffered losses. Some Coast Central CU staffers—who are also volunteer firefighters—were deployed to help fight the fires.

CU Direct Partners with CULA updated 08/13/15 02:54 PM
Leasing Option Availability
CU Direct, the provider of lending, automotive and strategic solutions to the credit union industry, has entered into a new agreement with Credit Union Leasing of America.

MEMBER BEHAVIOR: SHIFT IS COMING updated 08/11/15 10:40 AM
Conference Spotlights Rates, Economy
It was evident during a three-day conference in San Diego that credit unions are on high alert as they wade into tricky waters and strategize how to manage balance sheet spreads and liquidity in light of the Federal Reserve’s upcoming federal funds interest rate hike.

CUs GAIN INSIGHTS AT SHAPIRO SUMMIT updated 08/11/15 09:25 AM
Talk Strategy, Marketing, Trends
More than 60 credit union leaders from California and Nevada, speakers, and League staff convened at the annual Shapiro Summit on Aug. 7-8 in Ontario, CA to discuss important issues credit unions $50 million and under face in today’s economy, and how to overcome those obstacles.

NCUA AWARDS $2 MILLION IN GRANTS updated 08/07/15 11:05 AM
Funds Help 225 Low-Income CUs
The National Credit Union Administration (NCUA) has awarded more than $2 million in grants to help 225 low-income credit unions expand products and services, open branches or relocate offices, advance digital growth, and provide greater security for their members.

Auto & Home Loans Drive Trend updated 08/07/15 02:42 PM
Member Lending Benefiting CUs
California and Nevada credit unions are experiencing auto and mortgage loan growth as part of a trend of increased lending activities by credit unions nationwide.

REP. BROWNLEY SUPPORTS MBL RULE updated 08/06/15 04:28 PM
Writes Letter to NCUA
As reported in the California and Nevada Credit Union Leagues’ Advocacy Blog, Representative Julia Brownley (D-Ventura) was the first member of Congress to formally write to the National Credit Union Administration (NCUA) in support of their proposal to modernize the member-business lending (MBL) rule. There will likely be many more to write in support of updating this outdated member business lending rule.

Vendor Authority Bill, Halted updated 08/05/15 04:20 PM
The League & CUNA Oppose Amendment
The U.S. Senate just adjourned for the August recess, but not without controversy for credit unions. The Senate was supposed to consider a bill addressing cybersecurity issues. During consideration, Sen. Elizabeth Warren (D-MA) introduced an amendment that would expand the NCUA's third-party vendor authority. The League and CUNA mobilized to halt any progress of this amendment. With the Senate's adjournment this afternoon, neither the bill or vendor authority amendment progressed. Credit unions, our CUSO partners, and vendors will now have time to further mobilize against future efforts.

CO-OP LAUNCHES CO-OP API SUITE updated 08/05/15 01:52 PM
New Developer Tool Helps CU Apps
CO-OP Financial Services is introducing a suite of APIs (application program interfaces) that will enable credit unions to quickly integrate the latest mobile and online technology directly into their existing mobile and virtual channels.

STATE EXPLORES BANKING MARIJUANA BIZ updated 08/03/15 02:30 PM
CU Reps Discuss on CA Panel
While California Board of Equalization Member Fiona Ma is proposing a state-run bank to serve the “legitimate” marijuana industry in California, the board is concerned with people walking into their offices with thousands of dollars in cash to pay their state taxes.

CUNA’S ’15-’17 STRATEGIC PLAN updated 07/31/15 09:44 AM
Letter From CEO Jim Nussle
The Credit Union National Association (CUNA) sent to credit unions a letter which contained the association’s 2015-2017 strategic plan, detailing how President and CEO Jim Nussle will fulfill mandates he received from the board when he signed his contract last September.

CATALYST'S ANNUAL ECONOMIC FORUM updated 07/31/15 08:54 AM
Registration Now Open
Registration is now open for Catalyst Corporate's 38th annual Economic Forum, which will be held Oct. 5-7 at the Omni Mandalay Hotel, near Dallas, TX.

WCMS CELEBRATES ‘15 GRADUATING CLASS updated 07/28/15 08:42 AM
New Fellowship Announced
On July 23, Western CUNA Management School (WCMS) celebrated its 2015 graduating class—the NU Class—in an elaborate affair. Ninety-seven students graduated with Northwest Credit Union Association President and CEO Troy Stang serving as the commencement speaker.

NEW VERSION OF SPRIG BY CO-OP updated 07/24/15 12:29 PM
Available at iTunes and Google Play
An updated version of Sprig by CO-OP is now available at iTunes and Google Play—adding native apps, expanding transaction filtering, and enforcing enhanced security.

NCUA TESTIFIES BEFORE CONGRESS updated 07/24/15 09:24 AM
Chair Debbie Matz Speaks
As reported in the California and Nevada Credit Union Leagues' Advocacy Blog, yesterday the House Committee Financial Service, Subcommittee on Financial Institutions, and Consumer Credit had a very lively hearing where Debbie Matz, Chair of the National Credit Union Administration (NCUA), testified

NCUA APPROVES $1.3M REDUCED BUDGET updated 07/23/15 09:22 AM
Board Cuts Operating Fund
The National Credit Union Administration (NCUA) board approved a $1.3 million reduction to the 2015 operating budget, making better use of California and Nevada credit union dollars. Credit unions are obligated by law to pay into the NCUA, but that does not preclude the NCUA from its responsibility to operate in an efficient manner.

NCUA HEARING SLATED FOR JULY 23 updated 07/22/15 12:35 PM
Chairman Debbie Matz to Testify
The National Credit Union Administration (NCUA) Chairman Debbie Matz is scheduled to testify before the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit on Thursday, July 23 at 11 a.m. PT/2 p.m. ET. Please note this hearing was originally scheduled for Friday, July 24.