THE ECONOMY: WHAT TO EXPECT IN 2014
updated 11/19/13 09:32 AM
CA, NV and the Nation
What lies ahead for California and Nevada credit unions and the economy in 2014?
Although no one can say for sure, California and Nevada Credit Union Leagues Vice President and Chief Economist Dwight Johnston points to a mixed-but-encouraging picture of how the new year may progress.
He notes how the U.S. economy dodged several bullets in 2013 and managed to rack up another "okay" year—not "good" or "great."
Can California, Nevada, and the nation move beyond "okay" to something better? It depends.
"The federal budget deal—which was not a deal, but a delay—likely means the very end of 2013 and beginning of 2014 will be weaker than if a true deal to avoid any future shutdowns or defaults had been achieved," Johnston said.
However, once the haze clears over Washington, the U.S. economy will rebound and perhaps make up for lost time, he said. There are still some worrisome signs of weakness coming from China and Europe that could foretell a weaker global economy, which would drag on the United States. "But there are no direct threats of this right now."
Even though Nevada's job recovery hasn't been strong, the largest single sector of employment, hospitality and leisure, is not far below pre-recession levels.
Also, the second largest sector, business and professional, is closing in on pre-recession levels.
"The gaping hole in the employment picture in Nevada remains in construction," Johnston said. "That sector represented more than 11 percent of all non-farm payroll jobs at the economy’s peak in 2006 and has dwindled to 4.4 percent of total employment."
What's encouraging is, there are anecdotal reports suggesting a modest recovery in construction is growing more likely, he said.
The outlook for jobs in California is "especially bright" from several perspectives, Johnston said.
More than half the jobs recovered since the turnaround in California came from two sectors: trade and transportation, and business and professional. Those two sectors have performed "very well."
Since those sectors depend greatly on international trade and global growth, "imagine the numbers we could see if the global economy steps up a notch in 2014," Johnston added.
He said that just as important is the fact that these two sectors are the two highest-paying major employment areas as identified by the Bureau of Labor Statistics.
"The construction sector is an area that I believe is on the verge of a more significant recovery," Johnston said. "Fortunately, this sector also ranks high on the income chart." He added that any improvement in the national and global economies beyond "okay" will be felt even more strongly in California due to the state’s sensitivity relative to the bigger picture.
"If the national economy is ready to move to the next level, the California job market is in a perfect position to outperform the rest of the United States," Johnston said.
RATE HIKE UNLIKELY BEFORE MID-2015 updated
01/29/15 08:38 AM
Fed Watching Economic Developments
California and Nevada credit unions are cautiously keeping an eye on 2015 interest rates, and some are expecting short-term rates to increase this summer. Economists suspect the Fed is waiting to see how inflation and the global economy respond to recent shaky periods before making a decision.
'APPLE PAY' EXPANDS IN CALIFORNIA updated
01/28/15 10:07 AM
CU Leaders Discuss Member Adoption
Apple Pay will soon be in the hands of more California credit union members—this time at KeyPoint Credit Union in Santa Clara, CA.
ACCEPTING APPS: CU ADVISORY COUNCIL updated
01/27/15 11:00 AM
Eight Seats Vacant in Fall 2015
The Consumer Financial Protection Bureau (CFPB) is accepting applications for membership on its Credit Union Advisory Council and inviting individuals who can provide the bureau with guidance as it carries out its work.
CONGRESSMAN VISITS TRAVIS CU LEADERS updated
01/27/15 10:39 AM
DeSaulnier Makes it a Top Priority
As first reported on the California and Nevada Credit Union Leagues’ Advocacy Blog, newly sworn-in Rep. Mark DeSaulnier, D-CA, attended a district meeting at Travis CU on Jan. 23.
CLARK COUNTY CU AWARDS DIVIDENDS updated
01/22/15 02:07 PM
$2.7 Million to 34,000 Members
For Clark County CU, 2014 was a successful year as the credit union closed out with a healthy net worth ratio of 11.77 percent and recorded an annualized net income of nearly $12.3 million. This afforded the credit union to award a whopping $2.7 million in bonus dividends to nearly 34,000 members. Each bonus averages $79 per member, with the highest single bonus totaling just more than $10,000.
BIZ KID$ FINANCIAL GRANTS AVAILABLE updated
01/21/15 12:41 PM
Application Deadline is March 31
Promote financial literacy at your credit union and in your community with a Biz Kid$ Financial Education Grant from the National Credit Union Foundation (NCUF). Apply for the grant by March 31, 2015.
IMMIGRANT EVENT ANSWERS QUESTIONS updated
01/20/15 11:41 AM
Los Angeles Councilman Speaks
With President Barack Obama’s recently issued executive order on immigration, something transformative could be in store for credit unions serving immigrant communities—but it’s going to take more knowledge, more action, and a desire to understand the culture and language surrounding this group of individuals.
NCUA's SECOND RBC PROPOSAL updated
01/15/15 10:32 AM
New Draft More Favorable
The Leagues are thoroughly reviewing the National Credit Union Administration’s (NCUA) 450-plus page Risk-Based Capital Proposed Rule in detail to understand its components and potential impact. It seems this second proposed rule is more favorable than its first draft, and that most of our requests were at least partially addressed.
RBC DISCUSSION VIDEO AVAILABLE updated
01/15/15 03:45 PM
Captures Revised Plan
The Credit Union National Association (CUNA) video of today's National Credit Union Administration (NCUA) open board meeting discussion of a new risk-based capital (RBC) plan is now available for viewing.
NCUA PAYS FOR DATA BREACH updated
01/15/15 02:33 PM
Palm Springs FCU Receives Up To $50K
The National Credit Union Administration (NCUA) board has approved payment of up to $50,000 for costs associated with a data breach at Palm Springs FCU late last year.
CO-OP PROCESSED 3B IN 2014 updated
01/14/15 11:04 AM
Sets New Record
CO-OP Financial Services processed more than three billion electronic funds transfer (EFT) and shared branch transactions by credit union members in 2014—an 8 percent increase compared to 2013. This sets a new record for CO-OP.
CUs MEET WITH NCUA, CFPB OFFICIALS updated
01/13/15 09:44 AM
2nd RBC Proposal, Overdraft Discussed
California and Nevada credit union leaders met last week with officials from the National Credit Union Administration (NCUA) and Consumer Financial Protection Bureau (CFPB) to discuss the agencies’ regulatory impact on credit unions.
CO-OP ANNOUNCES THREE PROMOTIONS updated
01/12/15 12:18 PM
New CIO, CMO, and SVP
CO-OP Financial Services has promoted three employees to new positions: Terrence Griffin has been promoted to chief information officer; Samantha Paxson to chief marketing officer; and Connie Trudgeon to SVP of network operations and implementation.
'GAC' AND 'GRR': TWO POWERFUL EVENTS updated
01/12/15 04:37 PM
Your Voice is Needed
The credit union movement needs YOUR voice in Washington, D.C., Sacramento, and Carson City this year as discussions take place on legislative policies that may affect credit unions at the state and federal levels, as well as regulatory issues.
WCMS PRES. RETIRES AFTER 44 YEARS updated
01/09/15 04:44 PM
James D. Likens To Serve Through 2015
Western CUNA Management School (WCMS) officials have announced that Dr. James D. Likens will be retiring from his post as president and CEO of the school at the end of 2015. Likens will continue to direct the school through the end of the year.
CA/NV CUs CAN VIEW RBC DIALOGUE updated
01/09/15 02:26 PM
CUNA to Record NCUA Session
California and Nevada credit unions will have the opportunity view the National Credit Union Administration (NCUA) risk- based capital (RBC) discussion meeting on Jan. 15.
SEN. BOXER NOT SEEKING RE-ELECTION updated
01/08/15 10:22 AM
Served Two Decades in U.S. Senate
In a video announcement earlier this morning, Senator Barbara Boxer (D-CA) stated she will not seek re-election in 2016 when her term expires. Her retirement announcement is not unexpected.
DYKSTRA TALKS LEADERSHIP updated
01/08/15 09:04 AM
California and Nevada Credit Union Leagues President and CEO Diana Dykstra was recently interviewed by CUToday.info to share her thoughts on leadership and management. In this interview, Dykstra talks about communication, working with board of directors, staying relevant, and more.
LEAGUES OFFICIALLY LAUNCH 'PLEXCITY' updated
01/06/15 10:13 AM
Unique Shared-Service Vision
The California Credit Union League, Maryland and District of Columbia Credit Union Association, and New Jersey Credit Union League officially launched Plexcity on Jan. 2—a new shared-services company that will aggregate accounting and finance, human resources, and information technology departments for trade associations across the nation.
CUNA ANNOUNCES REORGANIZATION updated
01/06/15 02:06 PM
Changes to Senior Leadership Team
The Credit Union National Association (CUNA) has announced the reorganization of its senior leadership team in an effort to streamline and better serve the needs and interests of credit unions.
114TH CONGRESS BEGINS TODAY updated
01/06/15 01:43 PM
Leagues Join Aguilar in Swearing-In
Today is the beginning of the 114th session of Congress and the California and Nevada Credit Union Leagues was there to welcome members.
JENSEN JOINS LEAGUES' ADVOCACY TEAM updated
01/05/15 11:29 AM
Will Represent CUs in Sacramento, Carson City
Courtney Jensen has joined the California and Nevada Credit Union Leagues as legislative advocate, where she will support and promote credit unions at the state level.
CMN FUNDRAISING REMITTANCE updated
01/05/15 10:51 AM
Submission Deadline: Jan. 16
If your credit union raised funds for Children’s Miracle Network (CMN) Hospitals in 2014, please submit your funds on or before Jan. 16 to count toward 2014 fundraising totals. Click here to access the form, which includes mailing instructions, along with your fundraising check.
CA CUs GAIN CORPORATE REPRESENTATION updated
01/05/15 10:15 AM
Steve Devan on Catalyst Board
For the first time since the corporate credit union world experienced enormous regulatory changes, a sizeable number of California credit unions are gaining a voice on the board of directors at a large corporate: Steve Devan, CEO of $90-million-asset Grossmont Schools FCU in El Cajon, CA.