Blackhawk Community Credit Union plans to build a new, $30 million headquarters along the Rock River in Janesville, Wisconsin.
The 130,000-square-foot, four-story building will include a 10,000-square-foot Legacy Center, which will house historical artifacts reflecting the history of the community, particularly related to the Janesville GM plant which operated from 1919 to 2009.
The building also is planned to house a new credit union branch, a restaurant, a wellness center, 12 condominiums, law offices, a day care and retail space. It also will include the 10,000-square-foot Lea McGuire Conference Center.
Read the story.
Saturday, September 29, 2018
Friday, September 28, 2018
Jefferson Financial FCU To Buy 3 Branches and Deposits from Synovus Bank
Synovus Financial Corp. (Columbus, GA) and Jefferson Financial Federal Credit Union (Metairie, LA) announced on September 26 that Synovus Bank, a subsidiary of Synovus Financial Corp., has entered into a purchase and assumption agreement to sell two branches in Mobile, Alabama, and one branch in Daphne, Alabama, to Jefferson Financial Federal Credit Union.
The purchase and assumption agreement provides for the transfer by Synovus Bank to Jefferson Financial Federal Credit Union of $138 million in loans, $107 million in deposits, and other assets associated with two Synovus Bank branches located in Mobile, Alabama, and the one Synovus Bank branch located in Daphne, Alabama, in exchange for a deposit premium of $14,500,000.
The purchase of the branches is subject to regulatory approval and satisfaction of customary closing conditions and is expected to be completed in the first quarter of 2019.
Read the press release.
The purchase and assumption agreement provides for the transfer by Synovus Bank to Jefferson Financial Federal Credit Union of $138 million in loans, $107 million in deposits, and other assets associated with two Synovus Bank branches located in Mobile, Alabama, and the one Synovus Bank branch located in Daphne, Alabama, in exchange for a deposit premium of $14,500,000.
The purchase of the branches is subject to regulatory approval and satisfaction of customary closing conditions and is expected to be completed in the first quarter of 2019.
Read the press release.
Thursday, September 27, 2018
Wesom CU Buys Naming Rights to Pauley Pavilion at UCLA
UCLA and Wescom Credit Union (Pasadena, CA) have agreed to a 10-year, $38 million sponsorship deal, which includes renaming Pauley Pavilion.
Going forward, the school's basketball arena will be called the Edwin W. Pauley Pavilion presented by Wescom.
The partnership agreement names Wescom as the exclusive banking partner for the UCLA Campus Life program, the UCLA Alumni Association, UCLA Athletics and the Rose Bowl.
Additional elements of the agreement include establishing a Wescom branch in Ackerman Student Union and installing five Wescom ATMs around campus.
Read the press release.
Going forward, the school's basketball arena will be called the Edwin W. Pauley Pavilion presented by Wescom.
The partnership agreement names Wescom as the exclusive banking partner for the UCLA Campus Life program, the UCLA Alumni Association, UCLA Athletics and the Rose Bowl.
Additional elements of the agreement include establishing a Wescom branch in Ackerman Student Union and installing five Wescom ATMs around campus.
Read the press release.
Senator Warren Introduces Bill to Extend CRA to CUs that Are Not Low-Income
Senator Elizabeth Warren (D - MA) introduced on September 26 legislation, American Housing and Economic Mobility Act, that would extend the Community Reinvestment Act (CRA) to more financial institutions, including credit unions that are not designated as low-income.
The bill will also promote investment in activities that help poor and middle-class communities and will strengthen sanctions on financial institutions that do not comply with the rules.
However, the bill would exclude 2,544 low-income designated credit unions from CRA requirements, including some of the largest credit unions in the country.
The bill further proposes billions of dollars of new investments into affordable housing trust funds.
To pay for the bill, Senator Warren proposes to return the estate tax thresholds to their levels at the end of the George W. Bush administration and to impose more progressive tax rates above those thresholds.
Credit union trade associations, as expected, oppose the extension of CRA to any credit unions.
Read the press release.
Read the bill's text.
Read a summary of the bill.
The bill will also promote investment in activities that help poor and middle-class communities and will strengthen sanctions on financial institutions that do not comply with the rules.
However, the bill would exclude 2,544 low-income designated credit unions from CRA requirements, including some of the largest credit unions in the country.
The bill further proposes billions of dollars of new investments into affordable housing trust funds.
To pay for the bill, Senator Warren proposes to return the estate tax thresholds to their levels at the end of the George W. Bush administration and to impose more progressive tax rates above those thresholds.
Credit union trade associations, as expected, oppose the extension of CRA to any credit unions.
Read the press release.
Read the bill's text.
Read a summary of the bill.
Wednesday, September 26, 2018
Marine CU Receive Regulatory Approval for Acquisition of 10 Bank Branches
Marine Credit Union (La Crosse, WI) announced that it has received regulatory approval to acquire 10 Old National Bank branches in Wisconsin.
The transaction is anticipated to close on October 26, and the branches will open as Marine Credit Union on Oct. 29.
The credit union will acquire approximately 16,000 customers with almost $274 million in deposits.
The branches are in Chippewa Falls, Columbus, Dodgeville, Eau Claire, Lancaster, Monroe, New Glarus, Platteville, Prairie du Chien and Stanley, Wisconsin.
Under the terms of the agreement, Marine will acquire approximately $274 million in deposits. Marine also intends to hire all employees who work at the impacted locations.
Read the press release.
The transaction is anticipated to close on October 26, and the branches will open as Marine Credit Union on Oct. 29.
The credit union will acquire approximately 16,000 customers with almost $274 million in deposits.
The branches are in Chippewa Falls, Columbus, Dodgeville, Eau Claire, Lancaster, Monroe, New Glarus, Platteville, Prairie du Chien and Stanley, Wisconsin.
Under the terms of the agreement, Marine will acquire approximately $274 million in deposits. Marine also intends to hire all employees who work at the impacted locations.
Read the press release.
Tuesday, September 25, 2018
Greater Focus on Liquidity Risk Management
Washington State Division of Credit Unions earlier this month announced that its examiners will expand their liquidity analysis of credit unions.
The regulator noted that over the last eighteen months many Washington State chartered credit unions have shown a downward trend in cash and short-term investments.
This trend is not unique to Washington State credit unions. Nationally, the percent of credit union assets in cash and short-term investments has declined over recent years (see graph). As of June 2018, 12.19 percent of assets was in cash and short-term investments. This was below the 10-year average of 14.77 percent.
The Division of Credit Unions wrote that it will analyze credit unions with low liquidity levels to ensure that they have other sources of contingency liquidity to safely manage liquidity pressure.
The credit union regulator further commented that as a basic element of liquidity risk management, credit unions should keep an adequate cushion of highly liquid assets, including an adequate safeguard of cash and cash equivalents.
The Division's examiners will focus on liquidity policy and contingency funding plan, cash flow forecast, and liquidity testing and monitoring.
Read the Bulletin.
The regulator noted that over the last eighteen months many Washington State chartered credit unions have shown a downward trend in cash and short-term investments.
This trend is not unique to Washington State credit unions. Nationally, the percent of credit union assets in cash and short-term investments has declined over recent years (see graph). As of June 2018, 12.19 percent of assets was in cash and short-term investments. This was below the 10-year average of 14.77 percent.
The Division of Credit Unions wrote that it will analyze credit unions with low liquidity levels to ensure that they have other sources of contingency liquidity to safely manage liquidity pressure.
The credit union regulator further commented that as a basic element of liquidity risk management, credit unions should keep an adequate cushion of highly liquid assets, including an adequate safeguard of cash and cash equivalents.
The Division's examiners will focus on liquidity policy and contingency funding plan, cash flow forecast, and liquidity testing and monitoring.
Read the Bulletin.
Saturday, September 22, 2018
Struggling Taxi-Medallion Lender Bay Ridge FCU to Merge into Island FCU
The carnage among taxi medallion lending credit unions continues.
The latest news is the announced merger of Bay Ridge Federal Credit Union (Brooklyn, NY) into Island Federal Credit Union (Hauppauge, NY) on October 1.
According to the press release, the National Credit Union Administration (NCUA) recently approved the merger.
Problem taxi medallion loans sunk Bay Ridge FCU. The $183 million credit union was undercapitalized, as of June 2018. (Click here to read my commentary on Bay Ridge's second quarter 2018 performance).
Bay Ridge FCU had an exception from the aggregate member business loan cap of 12.25 percent of assets, because it had either a history of or chartered for the purpose of making business loans.
The New York City taxi industry has been disrupted by ride sharing companies. As a result, the price of taxi medallions plummeted from 2014 highs in excess of $1 million to as low as $160,000.
On August 31, NCUA liquidated the largest taxi medallion lending credit union, Melrose Credit Union (Briarwood, NY).
Read the press release.
The latest news is the announced merger of Bay Ridge Federal Credit Union (Brooklyn, NY) into Island Federal Credit Union (Hauppauge, NY) on October 1.
According to the press release, the National Credit Union Administration (NCUA) recently approved the merger.
Problem taxi medallion loans sunk Bay Ridge FCU. The $183 million credit union was undercapitalized, as of June 2018. (Click here to read my commentary on Bay Ridge's second quarter 2018 performance).
Bay Ridge FCU had an exception from the aggregate member business loan cap of 12.25 percent of assets, because it had either a history of or chartered for the purpose of making business loans.
The New York City taxi industry has been disrupted by ride sharing companies. As a result, the price of taxi medallions plummeted from 2014 highs in excess of $1 million to as low as $160,000.
On August 31, NCUA liquidated the largest taxi medallion lending credit union, Melrose Credit Union (Briarwood, NY).
Read the press release.
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