By Frank J. Diekmann
You never know what you’re going to come across in the disclosure statements filed with NCUA by credit unions that are merging. A frequent issue cited as the reason for merging is there is no new manager or CEO available to succeed the retiring Earl or Ethyl or whomever has been filling out the 5300s for the past half-century. In other words, no succession plan.
But one credit union offered something of a twist on the concept.
In Albany, Ga., the $68.2-million Members United FCU told its members it is seeking to merge and it’s in the best interests of members because it is the “intention of the board of directors…to facilitate the succession plan for Members United FCU and (to) work strategically to combine both credit union’s products and services with favorable rates to financially benefit members.”
And Speaking Of…
Since you brought up mergers and asked for one more item, it’s a done deal that every announcement about a combination include the sentence along the lines of, “All jobs will be retained after the merger.”
But the deal isn’t always so done.
In Diamond Bar, Calif., Monroeville Boro FCU said prior to the merger that if the deal is approved it would pay a bonus dividend to its member sufficient to reduce its net worth to 12%.
And it also added this: no employees would be offered jobs by the CU that acquired it, USX FCU.
That’s unusual. But not completely unusual.
In its merger docs, Calif. based Pacific FCU said none of its employees would keep their jobs following a merger with Arrowhead Central.
I’m Guessing They Were More Than ‘Annoyed’
As CUToday.info reported earlier, credit union employees across Ireland have been informed their retirement fund is largely missing much of the “funds” piece. Not surprisingly, the news has provoked anger, nervousness and more.
According to the Irish Independent, “Credit union executives are annoyed they were given no forewarning about the rapidly deteriorating state of the scheme after being summoned to online meetings, with some expressing surprise at the extent of the financial mess it is in.”
Unless the word “annoyed” is one of those cases of a common language that isn’t so common on the other side of the ocean, I’m guessing those who thought they were covered by the plan are using other words right now.
None of which are printable here, even in Gaelic.
Some Interesting Historical Notes
Chip Filson shared some interesting observations on his blog at ChipFilson.com.
These include:
- From 1934 through 1940, there were 4,793 new federal charters issued. A rate of 600 per year.
- Since NCUA’s three person board was established in 1978, there have been 1,958 additional charters. A rate of only 45 per year. In the last decade that number has fallen to two per year.
- In April 1982, NCUA had completely deregulated the savings rules controlling all federal credit unions. From 1982 through June 1987, the credit union system’s share growth exceeded 15% annually.
- In this same six years, 511 new federal charters were granted, a rate of almost two per week.
Comes in Handy During Liquidations
One company’s press release around its new “end-to-end business intelligence solution” noted that it included a cloud-hosted “Data Lakehouse.”
Who’s Visiting & From Where
According to Chris Lorence, executive director of CU Awareness, LLC, which oversees the campaign better known as “Open Your Eyes to a Credit Union,” as well as the YourMoneyFurther.com website, the initiative has “moved from awareness and consideration to awareness and engagement, We’ve seen an epic increase in consumer traffic and as well as searches using our proprietary search and credit union matcher.”
According to Lorence, since April 1 the YourMoneyFurther.com site has seen 13.2 million visitors, after seeing 6.3 million in all of 2021, “and that was our record year,” he said.
The site traffic data reveal:
- The top five states for visitors to the site are California, Illinois, Texas, New York and Georgia.
- Consumers generally seeking a credit union within 10 miles of their current locations.
- Visitors have been using the site’s filter to seek information on consumer counseling, financial education and mobile banking before seeking information on products and services.
- The average age of visitors is 30.
- 90% of visits to the site come via a mobile device, and 82% of those are via an iPhone.
- The most searched subjects are saving money, who can join, and cryptocurrency
Another Note from an Upside Down Auto Market
Whether you are looking to buy a car or are just making auto loans, you know all too well the Owner’s Manual is in another language right now.
Consider this observation shared by Tony Boutelle, president of Origence and CU Direct.
“I talked to a dealer in New York and he said, ‘I look at my lots and I don’t see any cars and I get really depressed. I look at my financials and I get really happy.’ He is making so much on the cars he is selling.”
Frank J. Diekmann is Cooperator in Chief of CUToday.info and can be reached at Frank@CUToday.info. Mr. Diekmann is also author of several new book, including the brand new “The Last Lyric,” a humorous satire about a murder investigation at the Rock & Roll Hall of Fame in which every line of dialogue is either a classic pop/rock song title or lyric. Available on Amazon, Apple iBook, Barnes & Noble and Smashwords. Mr. Diekmann is also author of a non-fiction compilation of the very best & worst he has seen and heard in covering more than 500 CU meetings and conferences, “501 Name Tags: How Everything You Need to Know About Business Can Be Learned at a Conference & Forgotten in the Trade Show.” It is available on Amazon, Barnes & Noble, Apple, Lulu, and Smashwords