Small Credit Union, One Employee, Is IRA Leader by Focusing on Rollovers

Mead Coated Board CU pays 4.25% and has a total of $8.6 million, in 126 accounts and a penetration rate of over 8%.

 
 

The Credit Union IRA Leader with an average balance of $69,249 has one full time employee and $33 million in assets. The credit union is Mead Coated Board, a single sponsor credit union located in Phenix City, Alabama.

While IRA marketing has traditionally been associated with the income tax payments due on April 15, the credit union with the highest average has not followed this pattern. Rather Manager Mary Lou Shaw says that she focuses on gaining the rollovers when employees at the Mead plant retire. "Some of these people have as much as $200-300,000. They are reluctant to put their retirement in something that fluctuates."

Currently the credit union pays 4.25% and has a total of $8.6 million, in 126 accounts and a penetration rate of over 8%. Mary Lou has two part time assistants in the sponsor-provided office at the plant. She has been manager of the credit union for 28 years.

"We don't promote. Everybody just walks in and talks to us and we tell them how it works. We just provide the service." She says the IRA administration is outsourced to CUNA Mutual.

When informed of her credit union's number one ranking, she responded, "We never thought of it as something outstanding-the members just support the credit union."

Over all credit union IRA totals are $54.8 billion, an increase of 9.9% from one year earlier. Credit unions hold approximately 19% of all IRA balances held in depository institutions at year-end. The vast majority of the estimated $4.232 trillion in IRA balances are held by mutual funds and in securities in broker accounts.

The chart below shows the top 25 with the highest average IRA Balance. The latest issue of Credit Union Strategy and Performance (CUSP) includes a complete list of the top 50 in IRA member balances at March 31, 2007.

Top 25 Credit Unions in Average IRA Balance
as of March 31, 2007 for all US credit unions

Rank

St

Name of
Credit Union

Average
IRA Balance
($)

Total IRA/Keogh
Shares

Growth in
Total IRA

IRA
Penetration

Assets ($)

1

AL

Mead Coated Board

69,249

8,656,183

-3.70%

8.01%

33,655,154

2

IL

ALPA

62,284

12,768,208

12.18%

3.17%

140,442,788

3

NJ

Merck Employees

60,673

246,755,747

-7.92%

16.36%

984,452,946

4

TN

EPB Employees

57,543

5,293,921

-1.12%

3.99%

22,674,858

5

NC

Blue Flame

56,877

11,944,123

14.51%

5.31%

36,223,143

6

TN

Kingsport Press

54,887

25,083,568

69.09%

6.44%

56,781,366

7

MO

Missouri Electric Cooperatives

53,511

17,712,221

28.17%

4.99%

66,692,248

8

UT

Family First

52,628

15,104,174

14.37%

1.16%

159,920,280

9

AL

Naheola Mill Employees

52,619

1,368,105

303.62%

0.60%

68,122,125

10

DC

Government Printing Office

52,365

1,361,491

-14.18%

0.77%

26,137,352

11

CT

State Police Credit Union Inc.

51,177

2,507,665

-14.90%

1.28%

42,755,691

12

MO

Telcomm

50,096

5,610,717

25.62%

0.78%

75,653,089

13

TN

L G & W

45,928

13,227,356

1.55%

7.14%

78,355,504

14

MO

CommunityAmerica

45,878

155,755,351

-0.45%

2.53%

1,511,583,523

15

OK

Weokie

45,489

61,547,214

8.09%

2.49%

554,023,948

16

MA

Members Plus

40,725

77,459,743

-3.60%

15.84%

199,485,426

17

IL

Bensenville Community

39,567

1,938,800

38.48%

1.34%

24,140,597

18

IL

U.S.A. One National

38,146

1,792,867

31.05%

0.44%

36,528,260

19

NY

Lufthansa Employees

38,129

19,865,178

2.49%

40.39%

70,700,363

20

AL

Alabama Rural Electric

36,447

2,988,634

-21.57%

2.07%

20,809,269

21

GA

Georgia Pine

36,067

5,337,946

-6.51%

5.52%

25,541,315

22

CA

California Lithuanian

35,674

5,065,737

6.79%

8.00%

49,451,490

23

CA

Glendale City Employees

35,553

1,777,665

322.11%

1.48%

50,130,128

24

CA

Parsons

34,672

40,358,085

33.56%

14.72%

139,463,033

25

CA

VA Desert Pacific

32,916

3,126,995

7.62%

2.41%

35,652,798

 

 

 

June 4, 2007


Comments

 
 
 
  • We also have concentrated on rollovers and have an IRA portfolio of over $100M. This represents about 12% of our deposits. We administer our program and have one employee for the department with extensive MSR training and support from our branches. Baby boomers are retiring or continuing to work part-time, rolling over their 401,457 and 403(b)''s . We provide continuing education for all MSRs to provide the member with the best member service. We also retain beneficiary IRAs, another source of balance retention.
    Judith Kardoos
     
     
     
  • You woke me up. We leave our IRAs fairly unattended and do little to promote them. Thanks for showing me why I need to care more about this service.
    Anonymous