The following President's Report was compiled by Missouri Credit Union Association (MCUA) President Don Cohenour to keep credit union members informed about Association activities.
Affiliation – Keep Missouri Credit Unions Unified
The second series of “Coffee with Cohenour” meeting were held in September to report the results of the April meetings and changes as a result of credit unions’ needs.
The Association will develop a plan of action based on the recommendations of the Membership Dues Committee by the end of the year and propose it to the Board of Directions. The change will require a vote by the membership. The new formula could be implemented sometime in 2014 after a special meeting of the membership.
On October 19, the third flight for the Bank on MOre Campaign ended. The Communications staff has presented a plan for 2014 to the Board of Directors for approval; stay tuned for more details.
Finance – Ensure Financial Stability
MCUA financials for August have reflected a continued improvement from operations of $50K for the month and $281K year-to-date. These numbers compare to a budget of $4K and $61K respectively. This overall improvement over budget is still generated from a continued reduction of expenses, but earnings are catching up to budget.
iVia volume of share drafts processed and returns are maintaining levels just under the budget. We are actively promoting iVia in Kentucky and have several proposals outstanding. We currently have 12 Kentucky credit unions using iVia.
Shared Branching is also improving and managed income above budgeted numbers. Transaction volume is also growing with the new branches opening and fully functional. There are now 125 outlets with 45 participants. MCUA created a short video for our website that members can also use. It gives a one minute instruction on what a shared branch is and how it works. This was one of the suggestions that came out of last year’s shared branch advisory group. Click here to view the video.
Advocacy – Hold Legislators Accountable
A joint Hike the Hill was held with the Kansas Credit Union Association the first week in October. We met with CUNA for a legislative briefing and an additional briefing on “Don’t tax My Credit Union” activities. We visited the National Credit Union Administration’s (NCUA) offices in Alexandria for a meeting with Tim Segerson, Deputy Director and Jean Marie Komyathy, Director of Risk Management for the Office of Examination and Insurance. We received a preview of new exam procedures that NCUA will detail in a letter to credit unions soon. They also discussed interest rate risk which appears to be the main concern for this next year.
We visited all but one of Missouri’s Congressional delegation. Senator Claire McCaskill (D) closed her office due to the government shutdown. Representatives Ann Wagner (R-District 2) and Vicky Hartzler (R-District 4) were unavailable due to conflicts, but we met with their financial services staff members. Generally speaking, Missouri’s delegation was focused on the closing down of the government. All meetings included review of credit unions’ legislative priorities and a focus on the credit union tax status issue. We were also in Washington at the same time as representatives from the Missouri Bankers Association, so Hike the Hill provided an opportunity to directly refute the information provided by bankers about credit unions.
We remain vigilant on any chance of a tax code draft. To date, credit unions have made more than one million contacts from around the country, including 13,332 contacts with Missouri lawmakers. The need to continue the contacts remains high until we know for sure that credit union taxation is not in consideration. This is an ongoing process.
Growth – Fulfill our Mission of Making Credit Unions Grow
Through June, membership growth was 2.3 % compared to the national average of 2.2%. During this same period, loans have also increased. Much of that growth can be attributed to pent-up demand from the last few years’ bad economy. Growth in loans was 5.6% in Missouri, compared to a 5.5% national average.
I attended a meeting with league presidents from all states in the NCUA Region IV. Keith Morton, Regional Director, asked to meet to discuss several light topics. The topics discussed included a realignment of the region, examination focus and top issues for 2013-14.