Maine`s Credit Unions - Atlantic Federal Credit Union

Maine’s
Credit
Unions
Maine People Helping
Maine People
641,000
Members Strong
What is the Credit Union
Difference?
Not-for-profit. Credit unions are not-for-profit financial
cooperatives. We exist to serve our members, not to
make a profit.
Taxation. Credit unions do pay taxes—payroll taxes
and property taxes. Congress exempts credit unions
from federal taxes because they are member-owned,
democratically operated and not-for-profit.
Ownership. Credit unions are an economic democracy.
Each credit union member has equal ownership and one
vote–regardless of how much money a member has on
deposit.
Volunteer Boards. Each credit union is governed by
a Board of Directors, elected by and from the credit
union’s membership. Board members serve voluntarily.
In the study completed January 3, 2012, Charles Lawton,
an economist at Planning Decisions in South Portland and
former state economist, concluded that credit unions have
significantly lower, fewer or no fees compared to for-profit
financial institutions. Credit unions also pay, on average,
higher dividend and interest rates on savings and charge
lower interest rates on loans.
Maine Credit Union Membership Pays
One financial benefit of belonging to a credit union is
receiving a higher rate of return on deposits. The amount
of this benefit depends on the amount of money
deposited. The table below presents an estimate of these
benefits for Maine credit union members based on a rate
survey completed in September 2011. In all, Maine credit
union members received a net benefit of approximately
$5.83 million as a result of holding their deposits with
credit unions.
Membership Eligibility. By current federal statute, credit
unions cannot serve the general public. People qualify
for a credit union membership through their employer,
organizational affiliations like churches or social groups,
or a community-chartered credit union.
Financial Education for Members. Credit unions assist
members to become better-educated consumers of
financial services. Additionally, the Credit Union National
Association (CUNA) is partnering with the National
Endowment for Financial Education, a not-for-profit
foundation, to expand financial education among high
school students.
Social Purpose: People Helping People. Credit unions
exist to help people, not make a profit. Our goal is to
serve all of our members well, including those of
modest means–every member counts.
Credit Unions Save Maine Consumers
Nearly $38 Million Annually!
The 641,000 Maine consumers who utilized Maine
Credit Unions each year continue to reap the impressive
financial advantages of being a credit union member. A
recent study shows that, despite the financial challenges
and uncertanties that have been a part of the financial
services marketplace in recent years, the economic
benefit of using a Maine credit union remains strong at
nearly $38 million. Credit unions’ ability to offer Maine
consumers higher interest payments on deposits, lower
interest rates on loans, and fewer and lower fees on
financial services is what keeps these savings on the
rise.
Interest Charged On Credit Union Loans
Another benefit of belonging to a credit union is paying
lower rates of interest on loans. Again, the amount of this
benefit depends on the volume of loans outstanding. The
following table presents an estimate of these lower loan
rate benefits for Maine credit union members based on
the 2011 Datatrac survey. In total, Maine credit union
members received a collective net benefit of $21.37
million as a result of lower fees on loans.
Table 2: Benefit to Maine Credit Union Members from
Lower Interest Rates Paid for Loans, September 2011
Type of Loan
Avg. CU
Balance
Avg. CU
($ million)
Rate
Avg.
Bank
Avg. Rate
Rate
Difference
Net CU
Benefit
($ million)
Credit Card
$91 11.64%
13.22%
1.58%
$1.44
Personal Unsecured $122 10.31%
11.77%
1.46%
$1.78
New Car
$259 3.67%
5.05%
1.38%
$3.56
$9.99
Used Car
$584 3.77%
5.48%
1.71%
1st Mortgage
$1,516 3.59%
3.66%
0.08%
$1.15
Home Equity
$734 4.89%
5.36%
0.47%
$3.45
Total
$3,306 n.a.n.a.n.a. $21.37
Sources: http://www.ncua.gov/DataApps/Documents/CUBNK201109.pdf and NCUA Financial
Performance Reports, September 30, 2011.
Lower and Fewer Fees
In 2011, Maine’s credit unions earned $43 million in
fee income on deposits of just over $4.6 billion. This
amounted to fee income of $8.90 per $1,000 of
deposits. FDIC insured banks and savings institutions in
Maine earned $263 million in income from deposit related
fees. This amounted to $11.09 in fee income per $1,000
of deposits, a differential of $2.19 per $1,000 of deposits
over credit union fee income. In short, Maine credit union
members saved almost $11 million in lower and fewer
fees by holding their deposits in credit unions.
Lending By Maine Credit Unions By The Numbers
In 2013
Total Dollar Amount Of Loans
(as of December 31, 2013)
$4.16 billion
# of Loans Under $2,000
17,041
# Of Credit Unions Offering Energy
and/or Weatherization Loans
80%
# Of Energy Loans Made:
791 totaling more than
$4 million
Your Money is Safe at a Maine Credit Union
With financial institutions recently in the news for their
struggles in this difficult economy, many consumers are
wondering, “Is my money safe?” As a Maine credit union
member, the answer is a resounding “yes!” Summary of Financial Benefits of Credit Union
Membership in 2013
Savings from Higher Rates on Deposits $5.8 million
Savings from Lower Rates on Loans
$21.4 million
Savings from Lower and Fewer Fees
$10.5 million
Total Savings
$37.7 million Maine Credit Unions Lend a Hand
During the past year, Maine credit unions continued to
provide the 641,000 Maine consumers who use a credit
union with a variety of lending products and services to
help them in this difficult and challenging economic
environment. Maine credit unions also responded to the
uncertainty, instability, and volatility of energy costs by
developing and offering special loans for energy assistance
(some at 0% APR) as well as loans to help members
weatherize and make their homes more energy efficient.
For thousands of Maine consumers seeking loans of all
amounts and all types, Maine credit unions are here to
help and ready to ‘lend’ a hand.
The National Credit Union Administration, or NCUA,
is the federal government agency that charters and
supervises federal credit unions. NCUA also operates and
manages the National Credit Union
Share Insurance Fund (NCUSIF),
similar to the FDIC which insures
banks. The shares in Maine credit
unions are insured by the NCUSIF,
which is backed by the full faith and
credit of the United States Government. The NCUSIF
provides all members of federally insured credit unions
with $250,000 in coverage for their individual accounts.
These accounts include regular shares, share drafts (or
checking accounts), money market accounts, and share
certificates. Individuals with account balances totaling
$250,000 or less at the same insured credit union have
full NCUSIF coverage. Not one penny of insured savings
has ever been lost by a member of a federally insured
credit union. Maine Credit Unions’ Campaign for Ending Hunger
Makes A Difference In Communities Across the State
Since 1990, the Maine Credit Unions’
Campaign for Ending Hunger has raised
over $5.3 million (including $513,000
in 2013) to help end hunger in Maine.
Throughout the year, Maine credit unions
raise funds to help food pantries and
hunger organizations in their local areas.
What is especially notable about the
Maine Credit Unions’ Campaign for
Ending Hunger is that 100% of all funds
raised stay in Maine, and go directly to the cause,
benefiting the very communities in which the funds are
raised.
Maine Credit Union League Member Credit Unions and Locations
Acadia Federal Credit Union
Ashland, Fort Kent, Madawaska,
St. Agatha, St. Francis
Evergreen Credit Union
Portland, Windham, Naples,
South Portland
Atlantic Regional Federal
Credit Union
Brunswick, Freeport, Topsham,
Cumberland
Five County Credit Union
Auburn, Augusta, Bath, Bowdoinham,
Brunswick, Falmouth, Lewiston,
Lisbon, North Windham, Portland,
Rockland, Scarborough, Skowhegan,
Topsham, Waterville
B/C & B/S of ME Employees
Federal Credit Union
South Portland
Bangor Federal Credit Union
Bangor, Brewer
Brewer Federal Credit Union
Brewer
Capital Area Federal Credit Union
Augusta
Casco Federal Credit Union
Gorham, Westbrook
Central Maine Federal Credit Union
Lewiston, Auburn
Changing Seasons Federal
Credit Union
Hampden
Coast Line Credit Union
South Portland
Community Credit Union
Lewiston, Auburn
cPort Credit Union
Portland, Augusta, Scarborough
Cumberland County Federal
Credit Union
Falmouth, Westbrook, Windham,
Portland, Gray
Down East Credit Union
Baileyville, Machias, Belfast,
Unity, Bangor, Calais, Richmond,
Topsham
EMMC Federal Credit Union
Bangor, Brewer
Eastmill Federal Credit Union
Patten, East Millinocket
Franklin-Somerset Federal
Credit Union
Skowhegan, Farmington, Kingfield,
Madison
Gardiner Federal Credit Union
Gardiner
Great Falls Federal Credit Union
Auburn, Lewiston
HealthFirst Federal Credit Union
Waterville, Augusta
Howland-Enfield Federal
Credit Union
Howland
Infinity Federal Credit Union
Arundel, Bangor, Portland,
Westbrook
Katahdin Federal Credit Union
Millinocket, Island Falls
KSW Federal Credit Union
Waterville, Belfast
KV Federal Credit Union
Augusta, Oakland
Lewiston Municipal Federal
Credit Union
Lewiston
Lincoln ME Federal Credit Union
Lincoln, Lee
Lisbon Community Federal
Credit Union
Lisbon, Lewiston
Maine Education Credit Union
Augusta
Maine Family Federal Credit Union
Lewiston, Auburn
Maine Highlands Federal
Credit Union
Dexter, Guilford, Dover-Foxcroft,
Greenville, Brownville
Maine Media Federal Credit Union
South Portland
Maine Savings Federal
Credit Union
Hampden, Ellsworth, Milo, Corinth,
Bar Harbor, North Vassalboro,
Brewer, Bangor
Maine State Credit Union
Augusta, Waterville
Midcoast Federal Credit Union
Bath, Brunswick, Edgecomb,
Thomaston
Monmouth Federal Credit Union
Monmouth, Greene
New Dimensions Federal
Credit Union
Waterville, Augusta
NorState Federal Credit Union
Madawaska, Eagle Lake, Ashland,
Van Buren, Fort Kent, Presque Isle
Ocean Communities Federal
Credit Union
Biddeford, Kennebunk, Saco,
Sanford, Westbrook
Otis Federal Credit Union
Jay
Oxford Federal Credit Union
Mexico, Norway
Penobscot County Federal
Credit Union
Old Town, Bangor, West Enfield
PeoplesChoice Credit Union
Saco, Biddeford, Sanford, Wells
Portland ME Police Dept.
Federal Credit Union
Portland
Rainbow Federal Credit Union
Lewiston, Auburn, Mechanic Falls,
South Paris, Rumford
Sabattus Regional Credit Union
Sabattus
Saco Valley Credit Union
Saco, Waterboro
Seaboard Federal Credit Union
Bucksport, Ellsworth, Hermon
Sebasticook Valley Federal
Credit Union
Pittsfield, Newport
Semiconductor of ME
Federal Credit Union
South Portland
Taconnet Federal Credit Union
Winslow, Skowhegan
The County Federal Credit Union
Caribou, Fort Fairfield, Presque Isle,
Houlton
Town & Country Federal
Credit Union
South Portland, Scarborough,
Portland, Saco
Trademark Federal Credit Union
Augusta, Portland, Scarborough
TruChoice Federal Credit Union
Portland, Buxton
University Credit Union
Orono, Portland, Bangor, Farmington,
Presque Isle
Winslow Community Federal
Credit Union
Winslow
Winthrop Area Federal Credit Union
Winthrop
York County Federal Credit Union
Sanford, Saco, York, Biddeford,
­­­North Berwick
Maine Credit Union Statistics
www.mainecul.org
Maine Credit Union League’s Legislative Team:
John Murphy - President
(207) 773-5671 ext. 260 E-mail: [email protected]
Jon Paradise - VP of Governmental & Public Affairs Manager
(207) 773-5671 ext. 273 E-mail: [email protected]
Ed and Cate Pineau - Pineau Policy Associates
Contract lobbyists for Maine Credit Union League
(207) 623-2355 E-mail: [email protected]
Number of credit unions
61
· Federally chartered
49
· State chartered
12
· Number of branches
196
· Number of surcharge-free ATMs
234
· Number of Shared Branching locations 158
Average asset size
Total assets
$100.6 million *
$6.14 billion *
Members637,379 *
Employees2,240
*As of December 31, 2013