If Capitol Hill Called Up the CU Industry...
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[Industry Analyst Elliott Kashner from CreditUnions.com wondered what would happen if Congress decided to aim their judgement at credit unions. Elliott represents the proceedings with a script of the fictional conversation between lawmakers and CU industry head honchos: ]
I couldn't help but wonder how things might look if it were the CEOs of the ten top credit unions: Navy FCU, SECU, Pentagon, BECU, SchoolsFirst, The Golden 1, Suncoast Schools, Alliant, American Airlines, and Security Services. I'd like to imagine it would go something like this. (This did not actually happen, although the data was pulled from Callahan & Associates' First Look Program for Fourth Quarter)
Representative: Thank you all for appearing today in front of the Financial Services Committee. I'd like to start by taking a quick look back over 2008. As I am sure you all know, it was a brutal year. We’ve seen many financial giants fall. In response, Congress has passed several stimulus packages to get the economy back on its feet.
State Employees Credit Union: Well, 2008 was not such a terrible year for us. We actually saw our total assets grow by 11.28%.
Representative: I see you have been making use of TARP funds then.
American Airlines Credit Union: No, we are not currently receiving any federal funds. We were able to fuel our growth by attracting 19.41% in new shares and deposits.
Representative: Then how are you responding the to recession?
Suncoast Schools: We have been building reserves for times like these and are working with individual members to keep them in their homes. In addition, we've also helped our employees become extremely efficient in serving members, with members, loans, and income per employees each at an all time high—473.33, $4.82 M, and $409k respectively.
Representative: But this is a time when many Americans have shied away from the industry. They are afraid of what’s going to happen to their money.
Boeing Employees Credit Union: Not at our credit union. We've had a fantastic year for attracting new members, with year over year member growth at 11.21%.
Representative: There has been a lot of public outcry; the people are looking at your industry and see that credit is frozen and credit unions are simply not lending as much.
Security Services Federal Credit Union: What are you talking about? Outstanding balances at our credit union alone have increased by 13.43%. Our loan originations are up 9.98% over 2007. We are seeing our highest loan balance on record!
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