Credit Union Newsletter - #34
Anurag Mukherjee
Credit Union & Community Bank C-Suite Advisor | P&L and GTM | Data Scientist | Fintech Advisor & Podcaster
?Coastal Credit Union surpassed the $5 billion mark in assets and its CEO said Thursday the Raleigh, N.C.-based financial cooperative is laying the groundwork to grow to $10 billion in assets.
"We're being very strategic about how we approach growth, and much of the work we did in 2023 and is continuing into this year is laying the groundwork for the future," Coastal President/CEO Tyler Grodi said in a prepared statement. "We can't just grow and then adapt. We have to already be functioning like a $10 billion institution well before we get there.
When he started at the credit union just over a year ago, Grodi noted his top priority was to begin preparing the credit union to grow to $10 billion and beyond.
At the end of last year's first quarter, Coastal posted assets of $4.702 billion, which grew to $5.179 billion at the end of this year's first quarter, according to NCUA financial performance reports. In its Thursday prepared statement, Coastal reported it initially hit the $5 billion mark at the end of January, and by the end of April assets increased to $5.148 billion.
Officials with the Oak Ridge, Tenn.-based ORNL Federal Credit Union ($3.7 billion in assets, 202,563 members) announced it had received full approval from the NCUA to merge with the Morristown, Tenn.-based Lowland Credit Union ($143 million in assets, 10,217 members). The merger came after state regulators and Lowland Credit Union (LCU) members approved and the two credit unions officially joined together on May 1.
The newly merged credit union will keep the ORNL FCU name and brand. And, according to credit union officials, all LCU employees were guaranteed positions at the new credit unions "with equal or greater pay and benefits" as well as opportunities for remote work, a retention bonus and any tenure earned while working at LCU.
Credit unions continued to build balances with credit cards and consumer term loans even amid signs auto loan balances among all lenders have stalled since last September, according to a Fed report.
The Fed's Consumer Credit Report released Tuesday showed credit unions held $80.3 billion in credit card debt, up 7.6% from a year earlier. The balance fell 0.4% from February, compared with the 10-year average February-to-March drop of 0.1%. Balances typically fall in the first three months of the year as households pay down balances from holiday spending, often with the help of tax refunds.
Credit unions' share of credit card debt was 6.3% in March, unchanged from a year earlier and February.
The $4.4 billion, Westbury, N.Y.-based Jovia Financial Credit Union officially launched its wholly-owned commercial real estate services CUSO, Jovia Commercial Lending LLC.
The CUSO was designed to support small financial institutions including credit unions, community banks, commercial mortgage brokers and lenders with the management and/or expansion of their commercial real estate lending services. It is being led by President Casey Mauldin, who is also Jovia Financial's chief revenue officer and chief lending officer. Other CUSO leaders include Treasurer Karen Smith and Secretary Howard Shim, who are Jovia Financial's CFO and vice president of business lending, respectively.?
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When the two powerhouse CUSOs officially joined together in January, many wondered what would become of the PSCU and Co-op Solutions name. On Tuesday, the organization released its new name and brand into the world: Velera.
According to Tuesday's announcement, the name Velera represents the organization's "unique ability to drive velocity and positive momentum for credit union success" happening in a time of "technological disruption, shifting consumer expectations and an increasingly complex regulatory environment."
Velera President/CEO Chuck Fagan said, "As we look to the future and the rapidly shifting landscape, we have a choice: to maintain the status quo or to accelerate – and we are choosing to embrace the challenge of acceleration and velocity on behalf of our credit unions. We are now Velera, and we are extremely proud of what we are creating with this new brand. We are energized for the future as we provide credit unions with a competitive advantage in an ever-evolving market, ultimately driving momentum for credit union missions across the country.
Digital Federal Credit Union Signs $1.8 Million Naming Rights Extension Deal
Digital Credit Union (DCU) extended its naming rights to the DCU Center in Worcester, Mass., for an additional three years, until June 30, 2027, the $12.2 billion, Marlborough, Mass.-based credit union announced Tuesday.
According to DCU, the agreement it reached with the City of Worcester and entertainment production company ASM Global includes both a base naming rights fee of $1.8 million for the three-year term to be paid at the beginning of the agreement, plus incentive bonuses on an annual basis, which are tied to performance metrics.
The $4.9-billion American Heritage Federal Credit Union here has agreed to buy three branches of LINKBANK, which is headquartered in Camp Hill, Penn., the bank reported
The transaction includes approximately $105 million of deposits and $123 million in loans, the bank said. The transaction price was not disclosed.
The three branches were previously part of the Liberty Bell Bank division of The Bank of Delmarva, which merged with LINBANK as part of the company’s recent merger with Partners Bancorp.?
The state-chartered LINKBANK serves consumers via 29 locations across Pennsylvania, Maryland, Delaware, Virginia, and New Jersey.
“As we continue to execute on initiatives to achieve the operational efficiencies and revenue growth of the Partners combination, we believe this divestiture will enable us to re-allocate capital toward our core Pennsylvania markets and accelerate growth in the robust Northern Virginia and Maryland markets,” said LINKBANK CEO Andrew Samuel.
?Source – Cutimes, Cu Today Info