By Frank J. Diekmann
How do you know when someone’s not from Texas? What’s the story? And where are annual reports headed?
Here are some leftover scribbles from the Reporter’s Notebook, where you will find answers to those questions and more, below:
Not From These Parts
At the Cornerstone CU League’s meeting in Fort Worth, Texas, on a day when people were sporting their cowboy hats and western wear as part of a fundraiser, Michael L'Ecuyer, chairman of America’s CU Museum and president of Bellwether Community Credit Union in New Hampshire—who was on hand for the presentation of a recognition to retiring CCUL CEO Dick Ensweiler–said, “I have to admit I should have researched what western wear is. This is western New Hampshire wear–I took my tie off.”
And He Sat Next To…
Speaking to that same CCUL meeting, Andy Andrews—who said, “I never wanted to be identified as a speaker, because speakers have points”–showed how classic TV shows can become entrenched in American culture.
He reminded everyone of the fat guy on Cheers who, when he walked into that Boston bar, everyone said—and the CU audience shouted out—“Norm!”
Speaking of Cheers
Credit unions have in recent years installed video monitors on nearly every empty space on their walls. But not every member likes the decision. In a letter to the editor printed in the Portland Press Herald, one member wrote, “When my local credit union was remodeled recently, not one, but three giant screens were installed in the lobby. The huge display behind the tellers was showing the news, the one located to the right was broadcasting more news, and the one in a waiting area on the left featured sports coverage. My comment to the branch manager was that the overall effect was of a sports bar.”
Once Upon a Time
It’s been two bites of a sandwich since anyone has brought this up, so allow me:
The Credit Union Story. The topic du jour of 2017 seems to be on the agenda at every meeting I attend. But what that story is, exactly, seems to be as mysterious as what exactly is in a lot of lunchmeats. It’s seems simple enough: it’s about the value that cooperative ownership delivers to the member. Simple, yes, but apparently, few credit unions seem to be able to get their mutual hands around it.
Ditching the Annual Report
But here’s one thing I’m seeing more credit unions do—create what are called “Membership Value Reports” for members that provide a dollar figure on the value of membership in a particular CU versus doing business with a bank.
Among those introducing such reports, often in place of the staid annual report, is Minnesota’s Firefly Credit Union. It’s Value Report said the credit union delivered collective member value of nearly $18 million to members last year. For individual members, the value was just shy of $300. Members with more than three unique Firefly products received a value of more than $400, on average, the credit union said.
Chuck Purvis, CEO of Coastal CU in North Carolina, whose credit union produces a similar Value Report, said CCU’s goal is to show that value down to the individual member.
‘This Creates Energy’
And what an advantage credit unions have when it comes to telling a story, according to Steve Farber. In remarks to the CUNA HR & Organizational Development Council, meeting, Farber said that human beings, on a “really deep, primal level,” have a “need to be a part of something great, and it’s very easy in the day to day crush of things to forget why the work we are doing is so important. Our job as leaders is not just to remind ourselves but the people around us why our work is important. This creates energy in people.
Where Do I Plug This In?
I overheard this at a CU meeting: “I don’t know how to take a selfie.” Here’s hoping he isn’t some CU’s IT director.
A Day of Future Reckoning
Amidst all the positive numbers over lending and membership growth in the recent CUNA Mutual Trends Report, was a reminder that a day of reckoning lies in the future somewhere.
Credit unions are “still riding high on the boom portion of the short run credit cycle, as measured by the difference between the annual growth rates of loans (11.5%) and deposits (7.6%),” the Trends Report stated. “Credit growth drives short run economic activity as borrowing pulls income from the future to allow increased spending in the present. But when the future comes, consumption spending will have to fall below income to facilitate the paying down of the debt accumulated in the past. Lower spending leads to slower economic growth if not an outright recession. Deposit growth will then exceed loan growth and the growth rate gap turns negative. Historically, a growth rate gap of 0% or less is correlated with a recession. The loan-less-deposit growth rate gap is expected to remain positive through 2018 and then turn negative in 2019 and 2010, marking the onset of the next recession in 2019.”
A Board In Need of Replacement?
CUToday.info has been unable to get additional comment from Town & Country Credit Union in Minot, N.D. following a landslide rejection of a merger plan by its members. As CUToday.info reported here, 80% of the $390-million CU’s members voted against merging with the $447-million Capital Credit Union. But whether the credit union is willing to comment or not, that vote reflects a board of directors WAY out of step with the members they supposedly represent. Ideally, if that vote truly reflects member sentiment, those same members should follow up by electing a new board.
In Need of a Hug
Driving on the New Jersey Turnpike recently I came to a toll booth and discovered the toll for my relatively short trip on this artery of the Garden State was $12.
“Wow, it’s expensive to live here,” I remarked to the toll booth attendant.
“Oh, we don’t live here,” the toll booth attendant responded. “We just exist.”
If you are a New Jersey CU with toll booth attendants in your FOM, might I suggest you give them a hug.
Frank J. Diekmann is Cooperator in Chief at CUToday.info and can be reached at Frank@CUToday.info or @FrankCUToday.