PA Credit Union Growth Rates Outpace National Stats
At year end 2009, Pennsylvania credit unions showed an increase in total assets, loans, savings, and members, exceeding the national rate in all four categories for the 12-month period, according to Pennsylvania Profile Fourth Quarter 2009.
Total asset growth was 13.7%, ahead of the 8.9% national rate; loan growth was 9.4%, almost eight times more than the national 1.2% increase. Savings increased nearly 15%, ahead of the 10.3% national rate. Membership grew at 2.3% in Pennsylvania or nearly 80,000 members, compared to 1.4% nationwide.
In loans for 2009, PA credit unions recorded a 12% growth in credit cards, nearly double the 6.4% national rate; used automobiles grew 10.8%, compared to 3.9% nationally; first mortgages reached 23.9%, compared to 4.3% nationally; and member business loans grew 18.7%, nearly double the 9.9% national rate.
Pennsylvania was also ahead of national growth for share drafts, certificates, IRAs, and money market shares.
The average net worth-to-asset ratio for PA credit unions fell to 10.6% in 2009, from 11.4% at year end 2008. Credit union earnings were less than half the amount needed to keep the net worth ratio from falling.
As of December 31, 2009, there were 557 credit unions in Pennsylvania, with combined assets of nearly $31.9 billion, and more than 3.5 million members. The median asset size was $8.7 million. There are 203 credit unions under $5 million in assets; 167 in the $5-$20 million category; 134, $20-$100 million; and 53 with more than $100 million in assets.
View the complete Pennsylvania Profile report for more information, including charts and graphs.
A complete listing of PA credit unions by asset size, as of December 2009, is available here.
Lancaster Credit Unions Meet With U.S. Rep. Pitts
Credit union representatives from the Lancaster area met with Congressman Joe Pitts (R-16) at Lancaster Red Rose Credit Union. The meeting was held to thank the Congressman for his recent co-sponsorship of H.R. 3380, the Promoting Lending to America’s Small Business Act of 2009. This legislation would raise the lending cap from 12.25% to 25% of credit unions’ total assets.
Meeting participants shared stories of what they are doing for their members and small businesses during this tough economic time. Discussions also covered the recently passed health care bill, student lending, and spending.
The Association extends thanks to Governmental Affairs Committee member and Lancaster Red Rose Credit Union CEO Abby Achey, for hosting the event for Lancaster area credit unions.
To keep up the member business lending legislation momentum, the Association asks credit unions to contact their U.S. Representative and U.S. Senator urging their support of H.R. 3380 (for the House) and S. 2919 (for the Senate). Click here for contact and bill information.
Welcome New Better Choice Participant
Pennformer Community FCU has submitted a signed agreement to participate in the Credit Union Better Choice program. This brings the current number of participants to 81 credit unions with 245 branches.
For questions or more information regarding the Credit Union Better Choice Program, contact Diane Powell, ext. 5221, or Mike Wishnow, ext. 5213.
Condolences
Raymond Dye, a long-time director of Glass Cap FCU, passed away Friday, March 26. Dye, 83, served on the Board for more than 40 years and was a past president. He was a World War II U.S. Navy veteran. Services were held on Tuesday. Our condolences to his family and credit union friends.
Read Obituary
New Shared Branching Outlets Open
Effective today, AmeriChoice FCU opens its Leader Heights branch at 1 Indian Rock Dam Road, York, to service shared branching members. The hours of operation for the lobby are: Monday through Wednesday, 8:00 a.m. to 4:30 p.m.; Thursday and Friday, 8:00 a.m. to 6:00 p.m.; and Saturday, 8:30 a.m. to 2:00 p.m. The drive-thru hours are: Monday through Wednesday, 7:30 a.m. to 4:30 p.m.; Thursday, 7:30 a.m. to 6:00 p.m.; Friday, 7:30 a.m. to 7:00 p.m.; and Saturday, 8:30 a.m. to 2:00 p.m.
AmeriChoice will be adding additional locations to the shared branching network in the coming weeks so watch Highway for more information.
Service 1st FCU opened its newest branch at 814 Westminster Drive in Williamsport, which is also an outlet on the shared branching network. The hours of operation for the lobby and drive thru are: Monday through Thursday, 8:30 a.m. to 5:00 p.m.; Friday, 8:30 a.m. to 6:00 p.m.; and Saturday, 8:30 a.m. to Noon.
There are currently 112 outlets in Pennsylvania, plus one in North Carolina, serving members of participating credit unions. Nationally, there are 4,004 locations.
For more information on how to become a part of shared branching, contact your Account Executive or Sandy Shenk, PaCUSC State Coordinator, ext. 5267; e-mail: sandy.shenk@pcua.coop.
Income That Grows With Your Credit Union
By now you’ve heard of the great benefits to your credit union and your members from Sprint. But did you know that the exclusive credit union member discount program offers marketing incentives to your credit union just by performing some basic promotion, and you receive the marketing materials for FREE?
Look at the figures: a credit union with 5,000 members has the potential to receive an annual check worth as much as $1,750, or approximately $0.35 per member, with little to no out-of-pocket expense. How’s that for an ROI?
To qualify for the incentives, you need only to promote Sprint; incentives are paid annually regardless of member activity. In a year where answers to non-interest income are difficult to come by, Sprint is eagerly awaiting your call. Contact your Association Account Executive at cusolutions@pcua.coop today.
Office Copier Turns 50
Fifty years ago, in March 1960, the first plain-paper office copier was shipped to a paying customer by Haloid Xerox, a little-known photographic-supply company in Rochester, New York. The contraption was the size of two washing machines, weighed 648 pounds, and had to be turned on its side to fit through doorways. The model was called the 914, because it copied at a then-blazing rate of seven pages per minute -- original sheets up to nine inches wide and 14 inches long. It also occasionally caught on fire.
But it revolutionized the workplace as we know it. It has saved workers countless hours, spit out forests worth of documents, been cursed by anyone who’s faced a paper jam on deadline, and been used by office pranksters to copy body parts.
The earliest 914s cost $2,000 to manufacture -- too much to make them viable as mass-market products. So Haloid Xerox leased them for $95 a month, including 2,000 free copies. The company earned 5 cents for every copy beyond that, and because customers used the machines much more heavily than expected, the income added up fast.
Today, Xerox doesn't even make a copier-only machine. Pure copying is down significantly, as more information is archived on computers, digital files, and the Web.
Education & Training
Education & Training
Income flat? Margins shrinking?
Where can you turn to improve your bottom line?
Cost Management Workshop, April 6
Harrisburg
Frustrated by tight margins and increased expenses? This Rory Rowland workshop can help!
Learn how to identify and eliminate unnecessary performance issues, products, and misspent efforts. Receive sample forms, reports, policies and formulas that you can use to control your costs without sacrificing member or employee satisfaction. PLUS a bonus session on finding new revenue sources in today’s regulatory climate. Maintaining non-interest fee income is extremely important. In some cases we see NSF income account for as much as 35-40% of a credit union’s bottom-line. How will you cope if NSF and courtesy checking income disappears?
Now is the time to make your plans, and tackle these complex issues. Find out what some of the largest credit unions in the country are doing, discover how to adjust other programs and generate new sources of revenue, including alternative ways to structure a courtesy checking program.
For more information or to register, click here.
Newsmakers
Newsmakers
First Capital FCU staff dressed down on Friday, March 19, and raised $165 in support of the American Cancer Society’s Daffodil Days. In addition, $407 was raised from daffodil sales…bringing the grand total to $572.
First Commonwealth FCU employees filled 30 Easter baskets for foster children from Pinebrook Family Services. The children, ranging in age from 1 to 19, will receive the baskets on Easter morning. Pinebrook Family Services is a non-profit organization founded in 1979 and provides services including adoption, foster care, behavioral health, and other vital community-based services.
The staff and members of the MEADVILLE AREA FCU raised $1,193 for the Meadville Lions Club. Barb Lucas, King Lion of the Meadville Lions Club, accepted the check from Bev Heberling, Lions Club member and MEADVILLE AREA Front Line Supervisor and Heather Clancy-Young, CEO, during a presentation at February’s Lions Club meeting.
PALCO FCU held its 72nd Annual Meeting and Dinner Dance on Saturday, March 27, at the Watson Inn, Watsontown. Tom Rachael, President/CEO, spoke to the membership about the stability of the credit union, accomplishments over the past year, upcoming news, and the new addition being added to the building to house the expanding operations department. There were 194 members in attendance for the meeting and dinner. Door prizes were awarded to 45 lucky members and live music was provided by Covert Action. More than $368 was raised for the American Cancer Society and canned goods were collected for the Central Pennsylvania Food Bank.
riverset credit union staff proudly participated in Big Brothers Big Sisters’ annual “Bowl for Kids Sake” event and raised $5,000 for the organization. The BBBS event marked the kickoff for riverset’s 2010 volunteerism initiatives. “riverset is committed to helping our local community organizations,” said President/CEO Christine Chojnicki. “This was a great opportunity to show our support for such a worthy cause.”
National News
National News
Congressional recess key time for grassroots MBL push
WASHINGTON (3/31/10)--With Congress away from Washington until April 12, the central front for member business lending (MBL) advocacy has shifted to individual districts.
Credit union members and representatives alike are participating in grassroots action, and the Credit Union National Association (CUNA)has sought to coordinate these activities with a trove of online resources. Items in the CUNA archive include background information for advocates and members of the press, letters both to and between members of Congress in support of MBLs.
In the information that CUNA has shared with credit union backers, CUNA cites not only the safety and sound financial judgment that credit unions represent, but also addresses small businesses and their needs for funding. CUNA also notes the vast experience that many credit unions have regarding business lending, and cites statistics that demonstrate that while bank lending has decreased by 11% over the last year, the amount of business lending done by credit unions has grown by 15% over the same time period.
CUNA has estimated that lifting the current member business lending cap of 12.25% to 25% of credit unions' assets would allow credit unions to extend up to $10 billion in additional business loans to their members, helping them to create 108,000 jobs in the first year following enactment.
As CUNA was urging credit unions to advocate for MBLs, a Wall Street Journal article outlined the credit union push for increased lending and the bankers' opposition to it. "The stars are aligned, and now is the perfect time for this to happen," CUNA Senior Vice President of Legislative Affairs John Magill told the Journal. Magill also noted commercial lender opposition to credit unions attempts to "impede" on their loan market share, "especially during the financial turmoil that has crippled more than 200 banks."
National Credit Union Administration Board Member Michael Fryzel, speaking at the Illinois Credit Union League's Legislative Conference, recently encouraged credit union advocates to share their story with their elected representatives.
Fed article covers Reg Z escrow provisions
WASHINGTON (3/31/10)--The Federal Reserve Board has amended Regulation Z, Truth in Lending, to require escrow accounts for all "higher-priced" first-lien mortgages that are secured by a consumer's principal dwelling, and the new escrow rules for these mortgages go into effect Thursday.
The amendments, which were issued in 2008, establish new protections for consumers from unfair or deceptive home mortgage lending and advertising practices and were issued under the authority provided by the Home Ownership Equity Protection Act (HOEPA).
The rules also impose limits on prepayment penalties and require escrow accounts for taxes and insurance, prohibit certain servicing practices, and prevent certain misleading and deceptive advertisements. Escrow accounts are required for condominium property taxes, but not for insurance if it is paid by the association under a master policy.
According to the Credit Union National Association, loans are classified as "higher-priced" if the annual percentage rate exceeds the average prime offer rate for a comparable transaction as of the date the interest rate is set by 1.5%.
Last year, the Federal Reserve Bank of Philadelphia released an article entitled "Escrow Accounting Rules: Are You in Compliance?" The article, which may be helpful for credit unions, provides information on escrow accounting methods, preparing escrow disclosure statements, and ensuring that annual analyses result in correct balances.
Philadelphia Fed release
Share Your News
E-mail us at highway@pcua.coop (or)
Call us at 800-932-0661, extensions: 5233 or 5221.