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.
CUs ENGAGE LAWMAKERS ON CAPITOL HILL updated
03/03/14 12:29 PM
New Legislators Show Support
As Congress considers tax reform, data security, regulatory relief, and other vital credit union issues, this year’s 2014 Governmental Affairs Conference (GAC) in Washington D.C. was a pivotal event for credit union executives and board members who advocated face to face with legislators on behalf of their members and the movement.
LEAGUES PRESIDENT RECAPS GAC updated
02/28/14 01:41 PM
'Attendees Were Encouraged,' She Says
The highly-anticipated annual Governmental Affairs Conference (GAC) in Washington, D.C. has come to an end. From Feb. 23-26, attendees had the chance to hear from influential legislators and credit union experts on the political landscape, attend breakout sessions on the hottest issues, and network with peers.
CO-OP COMMENTS ON VISA, FIRST DATA updated
02/27/14 03:08 PM
Thinks it’s an Industry Win-Win
CO-OP Financial Services’ business partners—Visa and First Data (STAR Network)—announced an agreement to share Visa’s common debit solution offering issuers, acquirers, and merchants an approach for debit EMV chip adoption.
ROYCE: NEXT STEP FOR MBL LEGISLATION updated
02/25/14 12:37 PM
'We Still Have Work to Do'
Representative Ed Royce, R-CA, announced today during the Credit Union National Association's 2014 Governmental Affairs Conference (GAC) that he will introduce legislation giving parity for credit unions with respect to standing law for banks.