First-responder Credit Union Newsroom

  What it Will Take for a Small CU to Survive 08/27/2023 02:54 pm By Homer Fager In a 2021 article, Bill Streeter, former editor-in-chief at The Financial Brand, asked, “Can a $50 million, $200 million or even a $500 million credit union expect to survive?” This group represents 87% of all credit unions, and 66% of those are $100 million in assets and below. How can these small credit unions survive the competitive forces of dominant megabanks, rapid uptake of digital banking, fintech inroads, low rates...

By Ray Birch DUBLIN, Ohio—The war for talent is still heated but it could be cooling, according to new data that show the dramatic increases in credit union pay—especially at the upper levels—are beginning to soften. As CUToday.info reported, new data released by CUES reveals base salary, base salary plus bonus, and total compensation packages increased last year across 20 of 22 positions at credit unions that are surveyed by the association.  According to CUES, key findings in its most recent survey show: A credit union’s asset size continued to be the leading influencer on compensation levels. The most common length of a CEO contract is three years. 24% of reported CEOs are female. 93.1% of CEOs were reported to be eligible fo...

  Top 10 Generative AI Tips Associations Can Use to Create Content and Drive Efficiencies   Allison Kral August 25, 2023 3 min. to read Contrary to popular belief, ChatGPT doesn’t think. It doesn’t understand what you’re saying. Rather, tools like ChatGPT function by predicting the next best word. That’s why it’s so important to ensure you’ve got a grasp on prompt engineering when using AI language models. Prompt engineering is the intentional use of language that guides AI to give desired outputs and can help optimize your use of AI. Let’s unravel the intricacies and capabilities of prompt engineering, six prompting techniques, and simple tips that will empower you to get the most out of AI for your association. What is Prompt Engineering and Why Should You Use It? At its core, prompt engineering involves a calculated orchestration of language to direct AI models toward generating desired outputs. The magic lies in ...

    Today, members of CUNA and NAFCU will receive ballots to vote on the proposed merger of the two associations to form America’s Credit Unions. The vote will remain open for 60 days. “The formation of America’s Credit Unions will be an opportunity to better serve our collective membership, lead the industry into the future, and ensure the growth and prosperity of all credit unions. America’s Credit Unions will maximize value and efficiency for members, while remaining focused on providing relentless advocacy, unparalleled compliance assistance, and impactful educational events,” wrote NAFCU Board of Directors Chair Gary Grinnell and CUNA Board of Directors Chair Lisa Ginter in messages to member CEOs ahead of the vote. Members were asked to whitelist the electronic ballot email; please check your inbox for these messages and reach out to NAFCU Member Services via email or at 800.344.5580 with questions. Additional details on the Transition Board of Directo...

WASHINGTON—Recent economic data points to a stronger economy than previously expected, but the current business cycle “contours” still point to an eventual downturn, according to the August 2023 commentary from the Fannie Mae Economic and Strategic Research Group. Given the “recent flurry of strong consumption data combined with two consecutive months of annualized Consumer Price Index (CPI) measures coming in close to the Fed’s 2% inflation target,” the ESR Group noted that the odds of a “soft landing” have increased, Fannie Mae said. However, the ESR Group added, the full lagged effects of monetary policy tightening are still working their way through the economy. The ESR Group analysis, for example, said wage growth also likely remains too ...

SAN FRANCISCO–Americans are exhausting their pandemic savings – and could run out of funds by the end of the third quarter, according to a new study from the Federal Reserve Bank of San Francisco.  The Federal Reserve-SF defined “excess savings” as the difference between actual savings and the pre-recession trend.   As of June, the Fed bank estimates show U.S. households held less than $190 billion of aggregate excess savings.  "There is considerable uncertainty in the outlook, but we estimate that these excess savings are likely to be depleted during the third quarter of 2023," San Francisco Fed researchers Hamza Abdelrahman and Luiz Oliveira said in a blog post . ‘Beyond Their Means’ According to the two researchers, governmen...

WASHINGTON–The Internal Revenue Service has issued a ruling that credit unions can receive a 2021 COVID Credit, but not 2020. In other words, federally chartered CUs can’t claim the employee retention credit for periods in 2020 but can do so for periods in 2021, because later amendments to the terms of the credit made them eligible, according to the IRS. Specifically, FCUs can’t claim the credit for wages paid after March 12, 2020, and before Jan. 1, 2021. The ruling was issued by the IRS Office of Chief Counsel in a newly released legal  memorandum . According to the IRS, FCUs are able to claim the credit for wages paid after Dec. 31, 2020, and before Oct. 1, 2021, the IRS said. The Employee Retention Credit (ERC) – sometimes called the Empl...

WASHINGTON–The yield on the 10-year U.S. Treasury note has hit a 15-year high, which could lead to higher costs for many borrowers. The increase in yields is also “raising concern” on Wall Street about the potential fallout in the stock, bond and housing markets, the Wall Street Journal added. A key benchmark for interest rates across the economy, the 10-year yield settled at 4.258%, according to Tradeweb, up from 4.220% earlier this week, marking its highest close since June 2008, months before the collapse of Lehman Brothers and expansive Federal Reserve policy “ushered in more than a decade of historically low bond yields,” the Journal added. ‘Nervous’ Investors “The rise in yields is making investors nervous, because past surges have at...

BOWLING GREEN, Ky.–Service One Credit Union has turned over management of its ATM fleet to Dolphin Debit , saying the move will improve members’ access to their money at all times. The $277.5-million credit union, which has more than 16,000 members, said the move includes the replacement of six existing ATMs. Service One decided in 2022 on a new ATM strategy, according to Michelle Dyer, SVP/COO. The top priorities were reduced ATM downtime, improved member service, and cost savings, she said, noting that “ATMs are very important to our members having access to their funds during off hours and on weekends. This helps us to provide a better member experience.” Dyer added that prior to the decision to work with Dolphin Debit, “We considered other ve...

NEW YORK—More Americans are failing to make payments on their credit cards and auto loans, according to a new report. New credit card and auto loan delinquencies have now surpassed pre-COVID levels, according to a report issued by Moody’s Investors Service. The rate of new credit card delinquencies hit 7.2% in the second quarter, up from 6.5% in the first quarter, according to the Moody’s report, which was based on household debt data published earlier this week by the New York Federal Reserve, CNN Business said. “That closely watched rate measures the percentage of loans that became 30 or more days delinquent. This metric is now ahead of where it was in the second quarter of 2019, before the COVID-19 pandemic rocked the economy,” CNN Business ...

In a new Letter to Credit Unions sent Monday, the NCUA summarized its amendments to part 748 – which take effect Sept. 1 – requiring all federally-insured credit unions to notify the NCUA as soon as possible, and no later than 72 hours, after the credit union reasonably believes it has experienced a reportable cyber incident. The letter offers additional commentary surrounding the definitional components of a substantial cyber incident and provides specific information about how to report an incident to the NCUA. The NCUA instructs credit unions to either call the NCUA at 1.833.CYBERCU (1.833.292.3728) and leave a voicemail or use the NCUA Secure Email Message Center to send a secure email to cybercu@ncua.gov . In addition, the letter describes what content should be included in the cyber incident report and highlights that sensitive personally identifiable information, indicators of compromise, specific vulnerabilities, or email attachments should not be sent to the...

 NEW YORK–Americans now collectively owe more than $1 trillion on credit cards. According to a new report on household debt from the Federal Reserve Bank of New York, total credit card debt rose nearly 5%, or about $45 billion, in the second quarter to a new high of $1.03 trillion. Although delinquency rates are still low by historical standards, rising balances may present challenges for some borrowers going forward, particularly when student loan payments resume this fall, according to the New York Fed. A ’Huge Test’ "The resumption of student loan payments will be a huge test for many cardholders, shrinking the amount they have to devote to paying off card debt and leaving some people simply unable to make minimum payments at all,...

AUSTIN, Texas–Tesla has introduced a new 84-month auto loan term for buyers of its vehicles. CEO Elon Musk said the seven-month term is in response to rising interest rates. In addition to the 84-month financing option in the U.S., Tesla has also added the option for a 96-month loan in Canada, also largely due to rising interest rates, according to Musk, Automotive News reported. The rate on Tesla’s seven-year loans for its Model 3 was 6.39%. “When interest rates rise dramatically, we actually have to reduce the price of the car, because the interest payments increase the price of the car,” Musk said during a quarterly earnings call. “So, we have to do something about that.” According to data from Experian cited by Automotive News, approxima...

WASHINGTON–As credit unions continue to wrestle with appropriate work-from-home/on-site work policies, a new study suggests those working from home are almost 20% less productive than those who come to the office. That comes at the same time video-conferencing giant Zoom also wants its own employees to return to the office for at least a few days per week. The new research results are included in a working paper  that's being circulated by the National Bureau of Economic Research, economists from the Massachusetts Institute of Technology and the University of California, Los Angeles, who observed data-entry workers in Chennai, India, across two groups — those working from the office and those working from home — over test periods of eight ...

MADISON, Wis.–TruStage’s chief economist isn’t expecting the Fed to lower rates anytime in the near future. Steve Rick In the company’s July Trends Report, which reflects CU performance data through May, Steve Rick noted that recent Bureau of Labor Statistics data indicated headline inflation rose only 3% during the year ending in June 2023, down from the 9% reported in June 2022. “So, with inflation rapidly approaching the Federal Reserve’s 2% inflation target, can we assume the Fed is done raising interest rates and may begin lowering them sometime soon? Well, not so fast,” stated Rick. Rick pointed out the Federal Reserve’s preferred measure of inflation ...

COLORADO SPRINGS, Colo.–The CEOs of CUNA and NAFCU made their first joint appearance  since the two trade groups announced plans to merge, addressing reasons for the proposed merger and what those who may oppose the merger should do, and further speaking to the concerns of smaller CUs and what will happen with conferences, as well as stressing the combination is not being driven by problems at either group. During a 45-minute Q&A at the Defense Credit Union Council (DCUC) annual meeting, CUNA CEO Jim Nussle and NAFCU CEO Dan Berger answered questions posed by DCUC CEO Tony Hernandez, as well as from CUToday.info and members of the audience. As CUToday.info reported here , the two trade groups are proposing to merge and create a new organization called America’s Credit Unions that will be led by Nussle—who was appearing at the DCUC meeting on the 89 th anniversary of CUNA’s creation--with Berger departing NAFCU at year-end. At one point Berger received a standing ...

CUToday WASHINGTON—Americans are feeling pretty pessimistic when it comes to purchasing a home. The Fannie Mae Home Purchase Sentiment Index (HPSI) increased slightly in July, as consumers’ increased confidence regarding their personal financial situations, but that was largely offset by further pessimism toward homebuying conditions, Fannie Mae reported. Three of the HPSI’s six components increased month over month, including the components measuring job security and home price expectations. However, 82% of consumers reported that it’s a “bad time to buy” a home, a new survey high and up from 78% in June. The full index is up 4.0 points year over year. “While consumers are reporting confidence in the components related to their personal finan...

Did you know that attending the National Council of Firefighter Credit Unions Conference on October 3-6, 2023 in Clearwater Beach, FL would be highly beneficial for a credit union service provider, director, or staff of their credit union for several reasons?  First and foremost, it provides an unparalleled opportunity to network and establish connections with other credit union directors specifically focused on serving the firefighter community. This collaboration can lead to knowledge sharing and exchange of best practices, helping the director gain insights into successful strategies employed by others in similar positions.  Additionally, the conference offers valuable educational sessions and workshops tailored to the unique challenges and opportunities faced by credit unions serving firefighters. Acquiring specialized knowledge in areas like risk management, tailored financial products, and member engagement can empower the director to better serve their members and ...

By Ray Birch CUToday WASHINGTON–Just what will the proposed merger between CUNA and NAFCU mean to individual credit unions? A survey of CUToday.info of CEOs across the country has found generally neutral to positive reactions, with many taking a wait-and-see approach, but others having concerns over a lack of “checks and balances,” compensation paid to association executives, and fewer resources for smaller credit unions. The CUToday.info poll of CEOs on the question of having just one national trade association representing the nation’s 4,800 credit unions also found many see benefits from the consolidation, such as a stronger and more unified voice in Washington, greater efficiencies and potentially lower overall costs for membership. CUToday.info has made multiple attempts to get additional comment from CUNA and NAFCU beyond the statements issued earlier this week and asking for more details on the merger and what lies ahead, but both trade groups have declined comment...