January 14, 2014

Economic & CU Monitor notes membership, loan growth

Results from the latest Economic & CU Monitor survey reveal that despite the current regulatory environment, NAFCU-member credit union respondents saw 5.3 percent year-over-year membership growth in November and 8.4 percent year-over-year loan growth during the same month.

Also of note in January's Monitor:

  • in terms of product lines, twice as many respondents are adding business lending programs as are cutting them (11.4 percent vs. 5.7 percent);
  • twice as many respondents are considering shuttering their remittance programs as are starting one (5.7 percent vs. 2.9 percent);
  • 38.2 percent are looking to add a select employee group to their field of membership;
  • 21.9 percent of respondents are looking at increasing their credit union service organization investments in 2014; and
  • 15.6 percent of respondents are eyeing further shared branching opportunities.

Taking into consideration the current regulatory environment, nearly one in four respondents said they were near the arbitrary cap on fixed assets and 71 percent confirmed that their vendor costs had increased since the passage of the Dodd-Frank Act. Also, more than one-third (36.7 percent) would offer interest on lawyer trust accounts if they were insured.

More than one-fifth of respondents (20.6 percent) are considering looking for a merger partner in 2014. For those credit unions looking, 25 percent listed regulatory burden as a factor.

The Monitor also notes, "NAFCU's ‘Dirty Dozen' list of regulations to eliminate or amend in 2014 addresses these concerns, including addressing limitations on fixed assets."

On Tuesday, NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt, Director of Research and Chief Economist David Carrier and Senior Economist Curt Long will highlight this month's Monitor in a video to members.