CUs TREND UPWARD IN KEY AREAS
updated 03/04/13 08:39 PM
Beat Banks in Delinquencies, Loan Ratio
Credit unions are outperforming banks in delinquencies and loan percentages, and holding even in net charge-offs, according to research by the California and Nevada Credit Union Leagues. The following trends provide an overview of how credit unions currently measure up against banks in five areas.
In delinquent loans as a percentage of overall loans, credit unions measure below 2 percent, while California banks are close to 6 percent, and banks across the United States are near 9 percent.
In loans as a percentage of shares, U.S. credit unions lead with a 68 percent loan-to-share ratio, while U.S. banks are trailing at 50 percent. California credit unions and banks measure very closely, with credit unions at 62 percent and banks at 61 percent.
The comparison in net charge-offs as a percentage of average loans is more neutral. California banks are at 0.48 percent, with U.S. credit unions at 0.74 percent, California credit unions at 1 percent, and U.S. banks at 1.25 percent.
Trends for capital as a percentage of assets are mixed. California banks are higher than 12 percent. U.S. banks register at 11.55 percent, but on a downward trend. Credit unions are close behind, trending up at 11.25 percent for the nation and 11.64 percent for California.
Capital growth currently appears to favor banks, with U.S. and California banks growing at 10.41 and 20.2 percent, respectively. Credit union capital growth is at 9.49 percent in the United States and 6.14 percent in California. The difference might stem from banks having more channels to grow capital than credit unions.
This data indicates the economic environment tends to favor institutions focused on small business growth—and at the same time, credit unions continue to focus on advocacy efforts to raise the member business lending cap from 12.25 percent of assets to 27.5 percent. In February, bipartisan legislation to raise credit unions' member business lending cap was reintroduced in the House of Representatives.
Additionally, leaders from seven California credit unions were interviewed for a nerdwallet.com report titled Small Business Lending: Advice from the CEOs of Financial Institutions. To read the nerdwallet.com interviews with KeyPoint CU CEO Brad Canfield, Redwood CU CEO Brett Martinez, North Island CU CEO Stephen O'Connell, San Francisco FCU CEO Steven Stapp, Travis CU CEO Patsy Van Ouwerkerk, CoastHills FCU CEO Jeff York, and Meriwest CU Senior Vice President and Chief Credit Officer Mark Antonioli, click here.
CA REPS SUPPORT NCUA’S MBL PROPOSAL updated
08/31/15 11:41 AM
Monday's Supporters Make 5 Total
Five members of Congress from California have written letters to the National Credit Union Administration (NCUA) supporting the agency’s proposed member business lending rule, which would allow credit unions more flexibility in making member business loans.
PLEXCITY ADDS HAWAII LEAGUE AS OWNER updated
08/31/15 10:25 AM
Increases ROI for all Stakeholders
Adding to its unique story of growing collaboration between credit union trade associations since January 2015, Plexcity announced that the Hawaii Credit Union League is purchasing a shared-ownership stake in the Ontario, CA-based company for information technology, accounting/finance, and human resource solutions.
CMG DISCOVERY CONFERENCE COMING SOON updated
08/28/15 02:04 PM
Virtual Meeting To Offer Insights
CUNA Mutual Group will hold its sixth annual Discovery Conference on Wednesday, Oct. 21. This no-cost conference will provide valuable insights pertaining to key topics and trends in the credit union industry—to help credit union leaders move forward with more confidence.
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.
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.