June 15, 2011
Statewide statistics for the first quarter
Credit unions in Rhode Island grew assets by 1.73% during the first quarter of 2011. Total assets of Rhode Island credit unions stand at $4,420,058,835 as of March 31, 2011.
First quarter data also show a similar rate of growth in shares with a percentage increase of 2.27%. The total amount of member shares in Rhode Island credit unions at the end of the first quarter is $3,518,278,481.
Membership was up by one half of one percent. The Ocean State now has a credit union membership total that is equal to 30.77% of the population.
The total of loans outstanding grew by 2.12% and now stands at $3,005,040,354.
Credit union volunteers at Special Olympics Rhode Island Summer Games
More than fifty volunteers representing ten credit unions and the Credit Union Association of Rhode Island spent Friday, May 30, at the University of Rhode Island helping to make the Special Olympics of Rhode Island Summer Games a success. The volunteers were assigned to “clerking” the walking and running events. “Clerking” involves checking athletes in, gathering them into “heats” for their races, and escorting them to the track. This assistance, according to the Special Olympics event organizers, is crucial to the success of the event.
Credit union volunteers heard over and over again, “We really appreciate the terrific support we get from our credit unions; without volunteers like you there wouldn’t be any summer games.” But helping out at the Special Olympics is no chore for the volunteers, most of whom are veterans, having volunteered for a number of years.
Throughout the year, the Association hosts a number of events to support the Special Olympics financially including golf and bowling tournaments, candy sales, and direct fundraising. “Helping out at the summer games gives us a chance to offer our time and get involved in this great cause. While the contributions are imperative, this event gives us a chance to see why the effort is so vitally important,” said Rob Kimmett, SVP public relations and marketing, Credit Union Association of Rhode Island.
New E-Scan focuses on board financial literacy, recovery
Strategies for board financial literacy and taking advantage of the economic recovery are the focus of the just-released Credit Union National Association's (CUNA) 2011-2012 Environmental Scan.
The E-Scan is based on research by CUNA's National Research Group. It presents trends and projections critical to the credit union movement and ideas for action. Credit union executives and boards use the report for their strategic and business planning.
This year's E-Scan has a two-fold focus: to help credit unions take advantage of the gradual economic recovery and to help their boards of directors meet the higher expectations for financial literacy set by the National Credit Union Administration (NCUA). Four of the 14 chapters in this year's 100-page E-Scan are dedicated to helping boards meet--and exceed--NCUA's higher standards.
The remaining 10 chapters address future trends and projections for key operating areas such as lending, demographics, marketing, economics, technology, and compliance.
More credit union lending, higher earnings, and an opportunity to serve a young adult market that is mostly unfamiliar with credit unions are among the highlights. Some of the E-Scan's results encompass:
- Lending. Credit union loan balances are expected to rise 4% in 2011 and 6% in 2012. That follows a decline of 1.5% in 2010. Auto loans, private student loans, credit card loans, and purchase mortgages will hold the potential for most credit unions through 2012.
- Earnings. Credit union earnings will climb back to 60 basis points this year and 70 basis points in 2012 (after NCUA's corporate assessments of a projected 20 basis points this year and 15 basis points next year). Cost containment will continue to be an important strategy until the economic recovery gains traction.
- Young and unaware. Nearly 70% of consumers age 18 to 24 are "not at all familiar" with credit unions. No other age group has such a high level of unfamiliarity with credit unions. Mobile banking and social media are two essential strategies for reaching this age group.
CUNA is offering a specially priced bundle of strategic planning products, including E-Scan, to help credit union planning teams throughout the year. CUNA's Strategic Planning Package includes:
- Twelve copies of the 2011-2012 E-Scan Report, which covers all major operational areas and topics related to improving board performance;
- A choice of 35-minute DVD or 100-slide Power Point presentation designed to help focus planning meetings by giving a high-level overview of the entire report;
- A one-year subscription to the E-Scan Newsletter for the latest trends in the financial services industry;
- An intuitive strategic planning guide to help set actionable short- and long-term goals; and
- Full access to the online E-Scan research and advice portal for articles and research reports.
Please click on this link: CUNA's 2011-2012 Environmental Scan to learn more about CUNA’s Environmental Scan.
Fed acts on disclosure trigger, lease threshold
The Federal Reserve Board has published its annual adjustment to the amount of fees that triggers additional disclosure requirements under the Truth in Lending Act and the Home Ownership and Equity Protection Act for home mortgage loans that bear rates or fees above a certain amount.
The agency also adjusted Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) by increasing the dollar threshold for exempt consumer credit and lease transactions to $50,000--as required under the Dodd-Frank Wall Street Reform Act--up from $25,000, effective on July 21. Beginning on January 1, 2012, these thresholds will be adjusted for inflation to $51,800. Transactions at or below the new threshold are subject to the protections of the regulations.
Regarding the mortgage disclosures, the dollar amount of the fee-based disclosure trigger has been adjusted to $611 for 2012 based on the annual percentage change reflected in the consumer price index that was in effect as of June 1. The adjustment becomes effective January 1, 2012.
The Home Ownership and Equity Protection Act restricts credit terms such as balloon payments and requires additional disclosures when total points and fees payable by the consumer exceed the fee-based trigger or 8% of the total loan amount, whichever is larger.