This week, CreditUnions.com learns more about the bank buying process, identifies ways to create a more sustainable credit union, continues to dig into HMDA data, and more.
Here are five can't-miss data points:
You’ve just acquired your first bank, and your credit union beat out bids from five other banks to win the business. The transition is well underway but suddenly local bankers and the American Bankers Association (ABA) start crying foul, and the story even makes the Wall Street Journal. Such was the case for Sound Credit Union this summer after its $200M acquisition of The Bank of Washington. Sound Credit Union CEO Don Clark shrugs off ABA’s criticism that credit unions are using tax advantages and expanded reach to raid the community banking industry.
Read: Inside Sound Credit Union’s Much-Debated Bank Acquisition
The acquisition of Indiana’s Griffith State Bank by United Federal Credit Union made history when the $88.5 million transaction closed in January 2012 as the first purchase of state-chartered, FDIC-insured mutual savings bank by a federally chartered credit union. Since then there have been 63 more deals, according to Callahan & Associates data, involving 51 credit unions in 24 states. Forty-seven of them have been announced since 2017 as what was a phenomenon has become a trend. Some deals have involved taking over the whole operation, lock, stock, and assets, while others have been just for a single location or market. Each institution also has its own reason for selling and buying.
Read: How To Turn Bank Customers Into Credit Union Members
In concert with the United Nations' 17 Sustainable Development Goals (SDGs) for 2030, United Nations Federal Credit Union launched its Global Sustainability Program in 2015. The program effectively shapes the credit union’s values, operations, and member service by intertwining eight sustainable business practices with its strategic objectives. As with the UN’s SDGs, UNFCU’s initial set of sustainable goals were set on a five-year timeframe and are set for an update in 2020.
Read: When Doing The Right Thing Is Good For Business
Five years ago, soon after being designated a Community Development Financial Institution, 1st Financial Federal Credit Union quit just writing checks and dug in personally with the community it has long served. Founded in 1968 by labor union members to serve McDonnell Douglas employees, the cooperative now works closely with non-profits in the St. Louis area to provide job training, financial education, and diverse products to its diverse membership. Here, the credit union's vice president of marketing and community presence, Laura Woods, answers questions about the credit union’s approach to people helping people in and around St. Louis.
Read: Helping St. Louis Help Itself
Recently released mortgage data — courtesy of the Home Mortgage Disclosure Act (HMDA) — is a gold mine of insights on industry trends. Callahan & Associates has already written about the relationship-based, open-ended loans now included in the 2018 release and discussed how these loans more accurately reflect how credit unions are assisting their member-borrowers. Readers are also likely to be interested in the results of another new, long-desired dataset: Market share across age ranges. These trends can help highlight what attracts — and what repels — different generations, allowing credit unions to devise strategies to appeal to a new, young, or up-and-coming membership base. For instance, what can this data set show about borrowers ages 25-34?
Read: Mortgage Market Share By Age Range: What Does The Data Show?
Want more credit union strategies? Sign up for the CreditUnions.com free newsletter.