Credit Union Weekly News
Anurag Mukherjee
Credit Union & Community Bank C-Suite Advisor | P&L and GTM | Data Scientist | Fintech Advisor & Podcaster
Delinquencies and charge-offs both jumped significantly for credit unions in the second quarter as households wrestled with the increasing cost of living.
The delinquency rate at federally insured credit unions was 63 basis points in the second quarter, up 15 basis points, or 31%, compared with the second quarter of 2022, according to data compiled by the National Credit Union Administration
The credit card delinquency rate rose to 154 basis points from 107 basis points one year earlier, and the auto loan delinquency rate increased 22 basis points over the year to 67 basis points in the second quarter
Credit union economists said Friday that September’s stronger-than-expected jobs gain will mean high interest rates will linger longer than expected, but the Fed is still unlikely to raise rates given slowing wage gains and other factors.
The U.S. Bureau of Labor Statistics reported the nation added 336,000 nonfarm jobs in September, while unemployment remained at 3.8%.
CUNA Senior Economist Dawit Kebede said not only was the gain for September twice the consensus expectation, but BLS also revised gains upward for July and August. As a result the three-month average gain of 150,000 jobs per month through August is now a 266,000-per-month average for July through September
In just one month, the $1 billion Alabama ONE Credit Union said it completed two mergers. The first consolidation was with the $26.2 million Brewton Mill Federal Credit Union in Brewton, Ala., which was approved by members on Aug. 31. On Sept. 28, members of the $28.8 million Mcintosh Chemical Federal Credit Union in McIntosh, Ala., also cast their ballots in favor of consolidation with Alabama ONE.
The BMFCU and the MCFCU consolidation agreements became effective on Sept. 1 and Oct. 1, respectively.
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Both mergers expanded Alabama ONE’s footprint into the southern regions of the state. The credit union’s field of membership covers 58 of the state’s 67 counties.?
Citadel Credit Union in Exton, Pa., on Wednesday announced the appointment of veteran banker Bill Brown as its president/CEO. He succeeds Jeff March, who served as CEO for 22 years and will remain on the credit union’s transition team until he retires at the end of the year.
During March’s tenure the credit union grew assets from $370 million in March 2001 to its current $5.8 billion in assets, while loans increased from $306 million to $5 billion, while membership expanded from 76,608 to more than 256,000, according to NCUA Call Reports?
PSCU, the St. Petersburg, Fla.-based payments CUSO, released its sixth annual “Eye on Payments” study this week, which revealed, among other things, how mobile wallet use has climbed and how influential things like credit card designs are for what credit union members use to make payments.
This year, nearly four in 10 respondents (37%) report they choose to use a mobile wallet at the point of sale (POS) or when paying for something in a retail location, with at least 28% of respondents 42 and younger saying they use their mobile wallet a few times per week,” according to PSCU. “In fact, mobile wallets rank as the third most preferred way to pay (13%) for Gen Z, more than doubling in preference since 2021 (6%) and surpassing cash (12%) for the first time.
Thirteen more credit unions are live on FedNow – the Federal Reserve’s instant payment service – joining the 13 credit unions and corporates that were announced as early adopters of the service ahead of its July 2023 launch.
In total, 108 financial institutions are now sending and receiving payments on the network, and in addition, 21 financial institutions (including seven corporate credit unions, all of which were early adopters) are providing liquidity and settlement services, and 20 service providers are supporting payment processing in the instant payments infrastructure, according to the Federal Reserve’s Tuesday announcement?