The National Credit Union Administration granted a federal charter and share insurance coverage to Maine Harvest Federal Credit Union (Unity, ME) on August 14, 2019.
The credit union will serve the employees and roughly 13,000 members of the Maine Organic Farmers and Gardeners Association and the Maine Farmland Trust.
The credit union was chartered for the purpose to offer business loans to small farms, farmers, and other food producers. The credit union will be exempt from the member business loan cap of 12.25 percent of assets.
Read the press release.
Showing posts with label Agricultural Loans. Show all posts
Showing posts with label Agricultural Loans. Show all posts
Saturday, August 24, 2019
Friday, October 12, 2018
Community Banks View CUs as Primary Competitor for Consumer Loans
Community banks view credit unions as their primary competitor for consumer loans, according to a survey.
The survey was conducted by the Federal Reserve and the Conference of State Bank Supervisors.
The survey found that 41.3 percent of community banks stated that credit unions are currently their primary competitor for consumer loans. Survey respondents believe credit unions will in the future be their primary competitor for consumer loans (35.6 percent).
With regard to mortgage loans, 13.5 percent of community banks identified credit unions as their current primary competitor. In the future, 13 percent of community banks expect credit unions to be their primary competitor.
Only 5.5 percent of community banks view credit unions as a primary competitor for small business loans. However, the expectations is for competition from credit unions in small business lending to grow as 10.7 percent identified credit unions as their primary future competitors.
Only 3.3 percent of community banks identify credit unions as their primary competitor for commercial real estate loans. In the future, 6.9 percent of community banks believe credit unions will be their primary competitor for commercial real estate loans.
With regard to agricultural loans, banks don't view credit unions as a primary competitor in the present or the future.
Read the survey report.
The survey was conducted by the Federal Reserve and the Conference of State Bank Supervisors.
The survey found that 41.3 percent of community banks stated that credit unions are currently their primary competitor for consumer loans. Survey respondents believe credit unions will in the future be their primary competitor for consumer loans (35.6 percent).
With regard to mortgage loans, 13.5 percent of community banks identified credit unions as their current primary competitor. In the future, 13 percent of community banks expect credit unions to be their primary competitor.
Only 5.5 percent of community banks view credit unions as a primary competitor for small business loans. However, the expectations is for competition from credit unions in small business lending to grow as 10.7 percent identified credit unions as their primary future competitors.
Only 3.3 percent of community banks identify credit unions as their primary competitor for commercial real estate loans. In the future, 6.9 percent of community banks believe credit unions will be their primary competitor for commercial real estate loans.
With regard to agricultural loans, banks don't view credit unions as a primary competitor in the present or the future.
Read the survey report.
Wednesday, November 13, 2013
How Have CU Farm Loans Performed?
Yesterday, I wrote about the level of farm lending at credit unions. Today, we will review how farm loans have performed at credit unions.
As of June 30, 2013, credit union reported slightly less than $14.2 million in delinquent farm loans. A loan is deemed delinquent, if it is 60 days or more past due. The delinquency rate was 0.62 percent.
Four credit unions accounted for over 40 percent of the industry's total delinquent farm loans.
The strong performance of the agricultural loan portfolio at credit unions is not surprising given the strength in the farm economy. The U.S. Department of Agriculture reported that net farm income is forecasted to be $120.6 billion in 2013, up 6 percent from 2012’s estimate of $113.8 billion. After adjusting for inflation, 2013’s net farm income is expected to be the second highest since 1973.
As of June 30, 2013, credit union reported slightly less than $14.2 million in delinquent farm loans. A loan is deemed delinquent, if it is 60 days or more past due. The delinquency rate was 0.62 percent.
Four credit unions accounted for over 40 percent of the industry's total delinquent farm loans.
- Greater Oregon (OR) had $1.9 million in delinquent farm loans (65.2 percent of its farm loan portfolio).
- North Star Community (ND) had $1.5 million in delinquent farm loans (3.45 percent of its farm loan portfolio).
- Whitefish Community (MT) had almost $1.3 million in delinquent farm loans (35.3 percent of its farm loan portfolio).
- Amplify (TX) reported $1 million in delinquent farm loans (97.2 percent of its farm loan portfolio)
The strong performance of the agricultural loan portfolio at credit unions is not surprising given the strength in the farm economy. The U.S. Department of Agriculture reported that net farm income is forecasted to be $120.6 billion in 2013, up 6 percent from 2012’s estimate of $113.8 billion. After adjusting for inflation, 2013’s net farm income is expected to be the second highest since 1973.
Tuesday, November 12, 2013
Credit Union Agricultural Lending
This week I am at the National Agricultural Bankers Conference and thought it would be interesting to look at credit unions engaged in agricultural lending.
As of June 2013, there were 297 credit unions reporting at least one agricultural loan on their books. These credit unions reported holding 19,671 farmland and agricultural production loans with a value of almost $2.3 billion.
Credit unions had slightly more than $2.1 billion in agricultural loans that counted as member business loans and $175 million in agricultural loans were to nonmembers.
Approximately $1.3 billion of the loans were farmland loans, while $986 million of the loans are for agricultural production.
During the first six months of 2013, credit unions originated $227 million in farmland loans and $536 million in agricultural production loans.
There were four states, which reported credit union ag lending in excess of $100 million -- North Dakota ($659.5 million), Indiana ($604.9 million), Minnesota ($421.9 million), and Wisconsin ($183.9 million).
The credit union with the most farm loans on its books is privately-insured Beacon Credit Union in Wabash, Indiana. The credit union has almost $446 million in agricultural loans. The next largest credit union ag lender is Central Minnesota Credit Union in Melrose, Minnesota with almost $269 million in farm loans.
There were 46 credit unions that had a material exposure to agricultural lending. Material exposure is defined as having at least $5 million in outstanding agricultural
The table below lists the 10 credit unions with the most agricultural loans.
As of June 2013, there were 297 credit unions reporting at least one agricultural loan on their books. These credit unions reported holding 19,671 farmland and agricultural production loans with a value of almost $2.3 billion.
Credit unions had slightly more than $2.1 billion in agricultural loans that counted as member business loans and $175 million in agricultural loans were to nonmembers.
Approximately $1.3 billion of the loans were farmland loans, while $986 million of the loans are for agricultural production.
During the first six months of 2013, credit unions originated $227 million in farmland loans and $536 million in agricultural production loans.
There were four states, which reported credit union ag lending in excess of $100 million -- North Dakota ($659.5 million), Indiana ($604.9 million), Minnesota ($421.9 million), and Wisconsin ($183.9 million).
The credit union with the most farm loans on its books is privately-insured Beacon Credit Union in Wabash, Indiana. The credit union has almost $446 million in agricultural loans. The next largest credit union ag lender is Central Minnesota Credit Union in Melrose, Minnesota with almost $269 million in farm loans.
There were 46 credit unions that had a material exposure to agricultural lending. Material exposure is defined as having at least $5 million in outstanding agricultural
The table below lists the 10 credit unions with the most agricultural loans.
Thursday, November 11, 2010
Credit Union Ag Lending to Farmers and Ranchers
I've just returned from the North American Agricultural Lenders Conference in Omaha. While I was there, I had a conversation with Bert Ely, a financial industry consultant, about credit union lending to agriculture. Apparently Bert had gotten an earful from Minnesota and North Dakota bankers about credit union competition for loans to farmers and ranchers.
As a result of our conversation, I decided to take a look at the credit union ag lending scene.
As of June 30, 2010, 184 credit unions reported having agricultural loans on their books equal to almost $1.7 billion.
While in aggregate agricultural lending by credit unions represents a small fraction of all credit going to agriculture, in some local markets credit unions are significant competitors.
The credit union with the largest ag loan portfolio is privately-insured Beacon Credit Union of Wabash, Indiana with almost $324 million in farm loans. Farm loans account for 45 percent of the credit union's total assets. Rouding out the top 5 are Central Minnesota FCU (MN), First Community (ND), Town and Country (ND), and Interra (IN).
The following table (click to enlarge image) identifies the 25 credit unions with the largest agricultural loan portfolios. Also provided is information on the percent of the credit union's assets in farm loans.
As a result of our conversation, I decided to take a look at the credit union ag lending scene.
As of June 30, 2010, 184 credit unions reported having agricultural loans on their books equal to almost $1.7 billion.
While in aggregate agricultural lending by credit unions represents a small fraction of all credit going to agriculture, in some local markets credit unions are significant competitors.
The credit union with the largest ag loan portfolio is privately-insured Beacon Credit Union of Wabash, Indiana with almost $324 million in farm loans. Farm loans account for 45 percent of the credit union's total assets. Rouding out the top 5 are Central Minnesota FCU (MN), First Community (ND), Town and Country (ND), and Interra (IN).
The following table (click to enlarge image) identifies the 25 credit unions with the largest agricultural loan portfolios. Also provided is information on the percent of the credit union's assets in farm loans.
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