MIDFLORIDA Credit Union (Lakeland, FL) completed its acquisition of Community Bank and Trust of Florida (Ocala, FL).
The transaction closed on November 9, 2019.
Friday, November 29, 2019
Proposed Class Action Lawsuit Alleges CU Violated Fair Credit Reporting Act
A proposed class action lawsuit claims that California Coast Credit Union (San Diego, CA) violated the Fair Credit Reporting Act.
The lawsuit alleges that the credit union incorrectly reported certain financial obligations on closed or discharged accounts to Experian.
The complaint was filed on November 19 in US District Court for the Southern District of California.
The lawsuit alleges that the credit union incorrectly reported certain financial obligations on closed or discharged accounts to Experian.
The complaint was filed on November 19 in US District Court for the Southern District of California.
Tuesday, November 26, 2019
Does Your CU Treat Members as Owners?
Credit unions claim that their members are owners.
However, credit union governance practices suggest otherwise.
Federal credit unions are averse to disclosing executive compensation.
Unlike state chartered credit unions, which disclose executive compensation information in individual Form 990s, there is no such requirement for federal credit unions.
However, Robert Hoel in a Filene Research Institute report, Power and Governance: Who Really Owns Credit Unions?, wrote: "Denying credit union owners and the general public executive compensation information in a direct and straightforward manner is difficult to justify objectively. Because transparency is a powerful tool for detecting and preventing insider abuses."
Hoel commented that the National Credit Union Administration "may want to require credit unions to include specific compensation information in call reports and make the information available to credit union members at annual meetings."
In a related matter, credit unions don't give credit union members the ability to have a non-binding say on executive pay, stockholders in publicly traded companies have the right to cast an advisory vote on executive compensation.
.
However, credit union governance practices suggest otherwise.
Federal credit unions are averse to disclosing executive compensation.
Unlike state chartered credit unions, which disclose executive compensation information in individual Form 990s, there is no such requirement for federal credit unions.
However, Robert Hoel in a Filene Research Institute report, Power and Governance: Who Really Owns Credit Unions?, wrote: "Denying credit union owners and the general public executive compensation information in a direct and straightforward manner is difficult to justify objectively. Because transparency is a powerful tool for detecting and preventing insider abuses."
Hoel commented that the National Credit Union Administration "may want to require credit unions to include specific compensation information in call reports and make the information available to credit union members at annual meetings."
In a related matter, credit unions don't give credit union members the ability to have a non-binding say on executive pay, stockholders in publicly traded companies have the right to cast an advisory vote on executive compensation.
.
Friday, November 22, 2019
Collins Community CU to Acquire Small Illinois Bank
Credit Union Times is reporting that Collins Community Credit Union (Cedar Rapids, IA) announced it plans to acquire First Savanna Savings Bank (Savanna, IL).
Collins Community CU will acquire the assets and liabilities of First Savanna Savings Bank.
First Savanna Savings Bank has $12.3 million in assets. Collins Community Credit Union has $1.2 billion in assets.
Financial terms of the cash deal were not disclosed.
Read the story.
Collins Community CU will acquire the assets and liabilities of First Savanna Savings Bank.
First Savanna Savings Bank has $12.3 million in assets. Collins Community Credit Union has $1.2 billion in assets.
Financial terms of the cash deal were not disclosed.
Read the story.
GTE to Issue Almost $185 Million in Auto ABS
GTE Credit Union (Tampa, FL) is planning to issue $184.8 million in prime auto loan asset-backed securities, according to a presale report by S&P Global Ratings. This is the first auto loan securitization by GTE CU.
The deal is expected to close Nov. 26.
The credit quality of the underlying pool, which consists of prime automobile loans, had a weighted average non-zero FICO score of 727.
Robust levels of credit enhancement mitigate the collateral pool's extremely high geographic concentration in and around the Tampa region of approximately 98 percent.
The loan pool has a high concentration of loans with maturities greater than 72 months comprising over 62 percent of the aggregate pool. Approximately 31 percent of the pool is comprised of loans with original terms of 73-75 months, and another 31 percent has terms of 75-84 months.
The underlying pool of auto loans has a weighted average loan-to-value ratio of approximately 92.93%, and approximately nine months of weighted average seasoning.
Read more.
The deal is expected to close Nov. 26.
The credit quality of the underlying pool, which consists of prime automobile loans, had a weighted average non-zero FICO score of 727.
Robust levels of credit enhancement mitigate the collateral pool's extremely high geographic concentration in and around the Tampa region of approximately 98 percent.
The loan pool has a high concentration of loans with maturities greater than 72 months comprising over 62 percent of the aggregate pool. Approximately 31 percent of the pool is comprised of loans with original terms of 73-75 months, and another 31 percent has terms of 75-84 months.
The underlying pool of auto loans has a weighted average loan-to-value ratio of approximately 92.93%, and approximately nine months of weighted average seasoning.
Read more.
Thursday, November 21, 2019
Fewer Problem CUs, But Shares and Assets Up at the End of Q3 2019
The number of problem credit unions edged lower during the third quarter of 2019, according to the National Credit Union Administration (NCUA).
At the end of the third quarter of 2019, there were 200 problem credit unions. In comparison, there were 204 problem credit unions at the end of the second quarter of 2018.
A problem credit union has a composite CAMEL rating of 4 or 5.
Total assets in problem credit unions were $11.2 billion at the end of the third quarter. Assets in problem credit unions were $11 billion at the end of the second quarter.
Shares (deposits) in problem credit unions rose during the third quarter to $10.1 billion from $9.8 billion as of June 2019. At the end of September 2019, 0.84 percent of total insured shares were in problem credit unions. In comparison, 0.82 percent of total insured shares were in problem credit unions as of June 2019.
Most problem credit unions were small credit unions.
The number of problem credit unions with less than $10 million in assets fell by 4 to 99 during the third quarter. But the number of problem credit unions with more than $10 million in assets was unchanged during the quarter.
NCUA reported that 89 percent of problem credit unions have less than $100 million in assets, while 1.5 percent of problem credit unions have more than $500 million in assets.
At the end of the third quarter of 2019, there were 200 problem credit unions. In comparison, there were 204 problem credit unions at the end of the second quarter of 2018.
A problem credit union has a composite CAMEL rating of 4 or 5.
Total assets in problem credit unions were $11.2 billion at the end of the third quarter. Assets in problem credit unions were $11 billion at the end of the second quarter.
Shares (deposits) in problem credit unions rose during the third quarter to $10.1 billion from $9.8 billion as of June 2019. At the end of September 2019, 0.84 percent of total insured shares were in problem credit unions. In comparison, 0.82 percent of total insured shares were in problem credit unions as of June 2019.
Most problem credit unions were small credit unions.
The number of problem credit unions with less than $10 million in assets fell by 4 to 99 during the third quarter. But the number of problem credit unions with more than $10 million in assets was unchanged during the quarter.
NCUA reported that 89 percent of problem credit unions have less than $100 million in assets, while 1.5 percent of problem credit unions have more than $500 million in assets.
Wednesday, November 20, 2019
Banks Top CUs in Customer Satisfaction
The American Customer Satisfaction Index (ASCI) is reporting that banks topped credit unions in customer satisfaction.
This is the first time in the history of the index where banks scored higher than credit unions.
After being tied last year, customers gave banks a satisfaction score of 80 out of 100, while credit union customers rated their satisfaction at 79 out of 100, a 2.5-point dip from 2018.
Banks either tied or outpaced credit unions on every individual element of the satisfaction rating.
What is especially telling is that credit unions lag behind banks with regard to digital satisfaction.
Read the press release.
This is the first time in the history of the index where banks scored higher than credit unions.
After being tied last year, customers gave banks a satisfaction score of 80 out of 100, while credit union customers rated their satisfaction at 79 out of 100, a 2.5-point dip from 2018.
Banks either tied or outpaced credit unions on every individual element of the satisfaction rating.
What is especially telling is that credit unions lag behind banks with regard to digital satisfaction.
Read the press release.
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