Month: October 2024

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Celebrating a Year of Extraordinary Credit Union Accomplishment

There have been pivotal years in credit union history, none more so than 1984.

NCUA and credit unions celebrated unprecedented market place, legislative and industry financial success.  NCUA issued over 100 press releases over the 12 months.  These announcements covered credit union performance, agency initiatives, and multiple press and political comments on the cooperative system.  Here is a very small sample, in date order, of these Agency communications:

Jan  4:   American Banker reports credit unions grow faster.

Jan 11:  CLF pays quarterly dividend of 9.0%.

Jan 16:   NCUA Acts to recover Penn Square losses

Feb 15:  Credit Union Stamp Released in Massachusetts

Feb 29:  Symposium on College Student Credit Unions

Mar  6:   Financial Performance Reports a Hit

Mar  9:   NCUA Board to Meet in Tucson

Mar 14:  Credit Unions Fastest Growing Financial Institutions

Mar 21:  Callahan Testifies Before Senate Banking Committee on Insurance Fund Capital

Mar 24:  NCUA to hold First Conference of Federal and State Examiners

Apr   4:   Banking Committee Approves Capitalization Bill

Aor  18:  NCUA Names Koppin Supervisory Examiner of the Year

Apr  30:  Credit union Statistics for March

May 15:  NCUA Central and Regional Office Realignment

May 24:  NCUA Investment Hotline Unveiled

May 30: Credit Union chartered for Cannon Hills Employees

June 19:  50th Anniversary Celebration

June 22:  President Issues FCU Week Proclamation

July 18:  President signs Bill to Strengthen Insurance Fund

July 26:  NCUA 1985 Budget down 4.9%

Aug 21:  FCU Growth Surges at Midyear

Aug 31:  Two Per Credit Union Limit Placed on Las Vegas Conference

Oct  9:   Board Adopts Capitalization Rule

Oct 12:  Credit Union Membership tops 50 Million

Oct  22:  Credit Unions Most Popular Financial Institutions

Nov 15:   Board Slashed Operating Fee Scale 24%

Nov  23:  Seger, Breeden, Connell, Pratt Announced as Speakers at Las Vegas Conference

Dec 18:  American Banker Reports CU’s Growing Faster than Thrifts

Over 70 additional releases about key Agency and credit union events were issued.

All of these releases were amplified in the monthly NCUA News sent to all credit unions as shown in the samples below.

Additionally, NCUA created a Video Network in which the Agency communicated significant changes and events both internally and with credit unions.  Here is the brief opening segment of an hour long video introducing the recapitalized  NCUSIF.

 

(https://www.youtube.com/watch?v=Wsq74FkMrPQ)

Forty Years On and Context for Today

In 1984 there were over 16,000 active credit unions.  All FCU’s were examined annually overseen by six regional offices and a staff of just over 600.  The brief excerpts above of the Agency’s wide-ranging activities and reports are a tiny sample of the interactions and communications with the credit union system, Congress, the White House and the public press.

These events occurred in the third year of Ed Callahan’s chairmanship which began in October 1981. The NCUA board, Bucky Sebastian, Executive Director, and the Senior staff believed that public service is a public responsibility.  Senior employees were available, willing and eager to engage with all constituents.   And most importantly. accountable to those who entrusted their funds and members’ futures to the regulator for oversight.

A highpoint of this interaction was the December 1984 National Credit Union Conference organized and led by NCUA with the support of the credit union system.  It was a first for NCUA, and the largest conference ever held at that point in credit union history.  The event was a coming together to celebrate the cooperative system’s growing relevance and success.  And to share views about the future of the movement by all those who were dedicating their lives to their members’ well-being.

In 1984 as this year, there was a Presidential election.  Everyone remembers the outcome. NCUA’s leadership and its results in 1984 are a reminder that good government is also good politics.  An example especially relevant now, four decades later.

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A Farming Town’s Fall Market

Fall, the time for harvest from the land.  Future Farmers of America’s (FFA) greenhouse in Rensselaer Central High School, Indiana.

“Growers for Life.” Fall mums for sale,  $10 each at the local Saturday farm market.

Pumpkins, the uniquely American fruit. Anything that starts from a flower is botanically a fruit.

Corn, all colors.

Gourds, technically fruits, but realistically fall table decoration.

An enormous sunflower head-a seed bank.

To Autumn by John Keats (1795-1821)

Season of mists and mellow fruitfulness,
  Close bosom-friend of the maturing sun;
Conspiring with him how to load and bless
  With fruit the vines that round the thatch-eves run;
To bend with apples the moss’d cottage-trees,
  And fill all fruit with ripeness to the core;
    To swell the gourd, and plump the hazel shells
  With a sweet kernel; to set budding more,
And still more, later flowers for the bees,
Until they think warm days will never cease,
    For summer has o’er-brimm’d their clammy cells.

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Several Explanations for Credit Union Mergers

While there are almost daily familiar rhetorical press releases  announcing new merger intentions, actual causal motivations are rarely plainly stated.

Descriptions from other areas of economic activity  provides some of the reasons for this ever increasing aspect of cooperative evolution.

CEO’s love unjust gain because money is their highest trust.

There’s nothing wrong with actively working (read: contributing actual value to others) and making a good living from it, but it’s wrong to turn a profit off the time, talent, effort, and creativity of others simply because you wield a capital advantage over them.

Where nothing is forbidden, nothing is required.

Executives are absolutely at a loss of what might happen if they stopped exploiting a gain off of others.

And the ultimate outcome for the member owners:

The chasm between credit union’s design and individual member benefit gets wider and wider.

 

 

 

 

 

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From the Field: Credit Unions Empowering Members and Communities

A critical distinction of the cooperative model is its local advantage.  News commentators assert “all politics is local.”  Military leaders call this capacity “boots on the ground.”  Credit unions described this organizing concept as their field of membership.

When events and institutions affect where and how one lives, that makes their impact personal for individuals.  The capability of credit unions to be seen as a long standing participant of the community they serve, creates generations of loyalty. And in the examples below, superior performance.

Member Feedback at Day Air Credit Union, Dayton Ohio

As part of the net promoter score process, the credit union invites member comments on their experience.  Here are two member notes the CEO recently shared with his team:

Reenetry

1.Day Air Credit Union met me where I was in my walk after being a returning citizen through the Montgomery County reentry community. I was full of fear and didn’t know anything about handling finances or money or getting to where I needed to be in order to be able to get loans and start a business.

Day Air Credit Union along with several individuals from the Montgomery County reentry community helped me succeed in my walk and in my business. Thank you so very much.

Don’t Sell Out

2.You guys help me through a situation, that even though you knew how I got there, you knew it wasn’t my fault (100% my fault) … You guys knew it was technically fraud against me. You did not have to help me, but you did, so that deserves a 10 in my book.

It shows the character of the people in your organization. You guys really are there for your members, it’s kind of like what families and friends are supposed to be, no judgment just being there when someone needs them to be and just doing the right thing. even if that right thing is to just be there to listen about someone’s life that has turned into a freaking dumpster fire… really you guys have been great. You’ve got a customer for life. Unless you sellout; other than that, a 10 in my book.

Through August 2024, the $847 million Day Air reports an ROA of 1.47%, share growth of 7.54%, net worth of 13% and an operating expense/asset ratio of 2.43%.

Creating a Statewide Collection Effort for Food Banks

The following is a release from First Harvest  describing a New Jersey wide effort in which  credit unions will collect canned food donations for local food banks.  This ad hoc network effort relies on the dozens of local branches as drop off and collection centers.   Another example of the advantage of a local presence and personal interaction with members.

First Harvest Credit Union, Affinity Federal Credit Union, and EdiFi Credit Union have come together to launch the New Jersey Credit Unions Food Cooperative and have engaged 27 New Jersey credit unions to participate in the initiative and help address the growing hunger crisis in New Jersey.

All participating credit unions and their select branches will serve as collection locations, allowing for broader geographic coverage across New Jersey, which will support dozens of food pantries and organizations throughout the state.

The program runs from October 1 through November

To donate, credit union members and residents throughout New Jersey can find a participating credit union listed below, and its nearest branch to drop off non-perishable food items. Each credit union branch will directly support a food pantry or organization within the community it serves. 

First Harvest President & CEO Mike Dinneen notes: “As credit unions, we are always stronger when we partner together. New Jersey has over 130 credit unions, serving a wide variety of rural, urban and suburban communities. One thing that is consistent is the food and affordability crisis that is impacting all of our residents.

Credit unions have an inherent mission and proven ability to take the reins when there is a need to help those who are underserved or in need, and I am proud to stand with these amazing New Jersey credit union leaders and implement this important member-driven mission.”

 The twenty-seven participating credit unions are then listed.  Local matters. That is how most of us ground our lives and cooperate with others in community.