Our Public Relations Work


COMMUNICATIONS
Part of your League's mission is to watch and monitor emerging and ongoing issues that affect our credit unions. We then evaluate that information and see that credit unions are made aware of those issues – and, if necessary, what we hope they will do in response.

MEDIA RELATIONS
Traditional media relations and maintaining a positive relationship with trade press is a key component of our public relations work. That involves fielding inquiries from reporters, researching topics being covered in news stories, and producing the League’s own news releases.

SOCIAL RESPONSIBILITY
Another part of our public relations work is social responsibility. This involves promoting not only statewide charitable and community involvement work, primarily through the work of the League’s Community Involvement Committee, but also ensuring individual credit unions understand the importance of community involvement and the public relations value of our good works.

Our Public Relations Team

 

RECENT ISSUES

Weiss Ratings

As it did in March, the Weiss Ratings service has issued a news release claiming relatively few US credit unions are in strong shape. This time Weiss is saying that only 734 credit unions, or 10%, “were found to be strong.”

Weiss is a Jupiter, Florida-based company that has been rating banks and insurance companies, but earlier this year introduced a credit unions rating service.  As before, this latest release is an apparent attempt to worry consumers in order to drive them to Weiss’s ratings service.

The latest Weiss release was picked up today by the Los Angeles Times web site (on a business blog page), and may appear in other local/regional media.

Should you receive any inquiries from consumers or media, here are some key points to use in your response:

  • CU deposits are insured and safe.  Virtually all credit unions are federally insured, with accounts insured up to $250,000 and backed by the full faith and credit of the U.S. government, just as the FDIC does for bank deposits.  The assurance that deposits are insured is what really matters to most consumers. 

  • Regulatory data show Weiss way overstates its claims. NCUA, the federal regulator of credit unions, tracks credit unions by risk category, based not only on published data, but also on actual examination visits.  Using this information we find that there currently are only 381 credit unions on the NCUA’s troubled list (CAMEL Code 4 and 5).  That’s far fewer than Weiss’ reported total of 2,500. As of June, 2011 these troubled credit unions held only 4% of the total assets in all US credit unions and this percentage has been on a declining trend for the better part of the past year.

  • Most credit union assets are held by very strong credit unions.  Importantly, at the other end of the spectrum, the NCUA reports that over 80% of the assets in U.S. credit unions are held by very strong credit unions – these include CAMEL code 1 credit unions (those financially sound in every respect) and CAMEL code 2 credit unions (those financially sound but with modest but correctable weakness).

  • Credit unions have experienced far fewer failures than banks.  Further, it is interesting to note that since the beginning of the economic downturn in 2007, a total of nearly 400 banking institutions have failed whereas fewer than 100 credit unions have failed over the same period.  Total banking institution failures would likely have been far higher than 400 were it not for massive government infusions of capital.  In contrast, credit unions did not seek and did not need a taxpayer bailout. 

  • The US credit unions system is strong and well capitalized.  As a group, credit unions reported an aggregate 10% capital buffer at the end of March 2011 – substantially higher than the 6% regulatory minimum to be considered “adequately capitalized” and the 7% threshold to be considered well capitalized”.  Overall, 94% of credit unions, holding 96% of credit union assets are well capitalized with net worth equal to at least 7% of total assets.

 

Here is a link to the Weiss news release (and related video posting):  http://weissratings.com/news/credit_unions/110720.aspx

 

Setting the Record Straight on American Banker Magazine Article

American Banker Magazine – a “new” magazine that is essentially a rebranding of the venerable “US Banker” monthly publication, and is owned by the publisher of American Banker newspaper – features in its July issue an article headlined “Conversion Conversation.” The 2,000-plus word article focuses on credit union conversions, in particular the views of three “conversion consultants” who predict a “wave” of credit union charter conversions to thrifts. Aside from the fact that the article serves the three “consultants” as free advertising for their services, it also contains some serious factual errors...
[see the point-by-point corrections to the article]
[see the article here] (subscription may be required for full access)


 

RESOURCES


1. Philosophy Orientation Guide

 

Your League has published an updated version of the popular Philosophy Orientation Guide, available at no charge to affiliated credit unions.

The Guide explains the "Credit Union Difference" in an easy-to-understand manner and would be ideal in sharing the philosophy and structure of credit unions with new and potential members, your SEGs and lawmakers.

[Order Here]