By Frank J. Diekmann
In case you missed it, even with inflation raging, Americans are reporting their highest levels of “financial well-being” in the eight years the Fed has been conducting a survey on the topic.
As part of its survey and findings, the Fed also revealed that a “fact” that has become a staple of presentations and opinion pieces and letters to Congress in Credit Union Land is no longer a fact—most Americans now DO have $400 to cover an emergency expense using cash or its equivalent similarly.
In fact, the Fed reported its “Economic Well-Being of U.S. Households in 2021” survey found the percentage of Americans who could cover a four-hundred-buck expense has risen to the highest level since the start of the survey—68%—and was up from 50% when the survey began in 2013. Eleven percent of adults could not pay the expense by any method, the Fed said.
In the fourth quarter of 2021, 78% of adults reported either doing OK or living comfortably financially, according to the Fed.
Of course, that was way back at the end of 2021, which with inflation was about a decade ago. And 400 bucks just ain’t what it used to be.
Drawing a Crowd
One of the more unique credit union annual meetings is back, and it’s again drawing a crowd.
While most credit union annual meetings are staid, low-key events that might bring a small crowd of employees, board members and their relatives to a local hotel meeting room or the VFW Hall, in the run-up to the pandemic Summit Credit Union in Madison, Wis. had turned its annual meeting, which it calls Summit Fest, into something altogether different and bigger. But then it took two years off as a result of COVID.
Now, it’s back, and it appears there was some pent-up demand for Summit Fest in Wisconsin’s capital. This year’s event, which targets families, drew more than 2,600 people.
A Number That Tells a Story
In CUToday.info’s ongoing and extensive coverage of credit union mergers, it was hard not to notice the merger of IUPAT DC (I’m going to miss the days when you knew exactly whom a credit union served just by knowing its name) into Philadelphia FCU. Much has been made of the differences between big and small, and this combination is illustrative.
IUPAT D.C., founded in 1983, has just $1.8 million in assets. Philly FCU had $1.695 billion as of Q1. IUPAT D.C. 21 reported $340 in net income during the first quarter, while PFCU posted $5.049 million. Assuming a 91-day quarter, Philadelphia Federal generated $2,311 in hourly net income, or IUPAT D.C. FCU’s entire quarterly income in about eight and a half minutes.
And While We’re on the Topic
Speaking of mergers and names, two other quick notes:
- In Mankato, Minn., Northern Energy FCU said its members voted earlier this year on a combination with Minnesota Valley FCU. The in-person vote took place at the Loose Moose.
- Of all the mergers announced lately, perhaps none seems more fitting than the merger of Farmers Credit Union into Heartland CU.
- While I lamented the end of the days when you knew all you needed to know about a CU by its name, I did come across Peoples Natural Gas General Office Employees Credit Union, where certainly someone is happy to no longer be answering the phone.
And One More: No Longer Able to ‘Deliver’
CUToday.info is committed to providing readers and the broader credit union movement coverage of every merger disclosure form filed with NCUA, as it’s more than a transaction involving a financial institution, it’s history involving communities and industries.
As I’ve written here before and no doubt will do so multiple times as we move forward (some people will argue these mergers aren’t progress at all), many of the merger disclosure forms are just boilerplate copy cut-and-pasted from a consultant’s playbook.
But other CUs use their messages almost as an obituary, a time to share a personal message at the end of a lifetime.
‘At a Standstill’
In its statement to members, the $7.7-million Rochester Polish FCU in New York, which does not have a website, said it is seeking to merge because, “Our credit union has found itself in a standstill over the past several years. Membership continues to decline due to an aging membership. We have been unable to increase our membership and we have been unable to increase our loan portfolio. New and younger members want electronic services, which we are unable to deliver because of the above. Additionally, we have been unable to find additional staff, and no qualified candidates seem to be forthcoming; our manager has been our only staff for the past 15 months.”
How
Frank J. Diekmann is Cooperator in Chief of CUToday.info and can be reached at Frank@CUToday.info. Mr. Diekmann is also author of several new book, including the brand new “The Last Lyric,” a humorous satire about a murder investigation at the Rock & Roll Hall of Fame in which every line of dialogue is either a classic pop/rock song title or lyric. Available on Amazon, Apple iBook, Barnes & Noble and Smashwords. Mr. Diekmann is also author of a non-fiction compilation of the very best & worst he has seen and heard in covering more than 500 CU meetings and conferences, “501 Name Tags: How Everything You Need to Know About Business Can Be Learned at a Conference & Forgotten in the Trade Show.” It is available on Amazon, Barnes & Noble, Apple, Lulu, and Smashwords.