/Florida_member_benefits_311

The Benefits of Membership

Customized Analysis of Member Benefits For:

Florida

March 2011

Prepared by:

Credit Union National Association Economics and Statistics Department

Florida The Benefits of Membership Credit unions generally provide financial benefits to members through lower loan rates, high saving rates, and fewer fees than banking institutions.

The Credit Union National Association (CUNA) estimates that Florida credit unions provided $297,036,882 in direct financial benefits to the state’s 4,543,541 members during the twelve months ending March 2011.

These benefits are equivalent to $65 per member or $124 per member household

(1).

Estimated total benefits of credit union membership are calculated by accounting for differences in credit union and bank pricing. Specifically, average credit union savings account yields, loan interest rates and fees are compared to average bank savings account yields, loan interest rates and fees. The interest rate differences are then applied to respective average credit union loan and savings balances. Fee differences are weighted and applied to credit union non-interest income to obtain the total estimated benefits arising from fees.

The per-member and per-household benefits delivered by Florida credit unions are substantial. But, these benefits are averages. Mathematically, that means the total benefits provided are divided across all members (or all member households) - even those who conduct very little financial business with Florida credit unions.

Consider this: Financing a $25,000 new automobile for 60 months at a Florida credit union will save members an average $146 per year in interest expense compared to what they would pay at a banking institution in the state.

Further, loyal members - those who use the credit union extensively - often receive total financial benefits that are much greater than the average.

Florida credit unions excel in providing member benefits on many loan and saving products.

In particular, Florida credit unions offer lower average loan rates on the following accounts: new car loans, used car loans, personal unsecured loans, first mortgage-adjustable rate, home equity loans, credit cards loans.

Florida credit unions also pay members higher average dividends on the following accounts: regular savings, share draft checking, money market accounts, certificate accounts, IRAs.

Source: Datatrac, NCUA, and CUNA. (1)Assumes 1.9 credit union members per household.

Recent Comparative Interest Rates for Loan Products Credit Unions vs. Banking Institutions 14.00

13.26 12.70 12.72

12.00

11.40 10.91

10.86

10.00

Rates

8.00 6.02

6.00

5.33 4.27

5.16 4.57

4.37

4.51

5.11

4.46

4.46

4.89

3.90

4.00

2.00

0.00 60-month new car (A paper)

48-month used car (A paper)

Unsecured loan (A paper)

5-year adjustable rate 1st mortgage, 0 pts

15-year fixed 30-year fixed Home equity / Credit card rate 1st rate 1st 2nd mtg, 80% classic LTV 0 pts mortgage, 0 mortgage, 0 pts pts

Credit Unions Type of LoanBanking Institutions Product

Credit card gold

Recent Comparative Interest Rates for Credit Unions Saving Products Credit Unions vs. Banking Institutions 0.62 Retirement (IRA) accounts 0.78

0.77 Type of Saving Products

1 Year certificate $10,000 balance 0.93

0.47 Money market accounts 0.62

0.17

Share draft checking, $5,000 balance

0.18

0.22 Regular savings, $1,000 balance 0.28

0.00

0.10

0.20

0.30

0.40

Credit Unions

0.50 Rates

0.60

0.70

Banking Institutions

0.80

0.90

1.00

Selected March 2011 Credit Union Fees compared to Banking Institutions $2,500

$2,309.00

$2,280.00

Dollar Amount

$2,000

$1,500

$1,000

$500

$25.00

$20.00

$30.00

$35.00

$0

Florida

Area Banks Types of Fee Income

Share draft checking, NSF fee

Credit cards, late fee

Mortgages, closing costs

Florida Credit Union and Banking Instituion First-Quarter 2011 Average Interest Rates and Fees Loan Products 60-month new car (A paper) 48-month used car (A paper) Unsecured loan (A paper) 5-year adjustable rate 1st mortgage, 0 pts 15-year fixed rate 1st mortgage, 0 pts 30-year fixed rate 1st mortgage, 0 pts Home equity / 2nd mtg, 80% LTV 0 pts Credit card - classic Credit card - gold

Average Rate at Credit Unions (%)

Average Rate at Banks (%)

Rate Difference vs. Banks (%)

4.27 4.57 10.91 3.90 4.51 5.16 4.46 12.70 10.86

5.33 6.02 13.26 4.37 4.46 5.11 4.89 12.72 11.40

-1.07 -1.46 -2.35 -0.47 0.05 0.05 -0.43 -0.02 -0.54

0.28 0.18 0.62 0.93 0.78

0.22 0.17 0.47 0.77 0.62

0.06 0.01 0.15 0.16 0.16

$25.00 $20.00 $2,280.00

$30.00 $35.00 $2,309.00

-$5.00 -$15.00 -$29.00

Savings Products Regular savings, $1,000 balance Share draft checking, $5,000 balance Money market accounts 1 Year certificate $10,000 balance Retirement (IRA) accounts

Fee Income Share draft checking, NSF fee Credit cards, late fee Mortgages, closing costs Source: Datatrac

Estimated Credit Union Loan Rate Benefits vs. Banking Institutions $70,000,000

$64,059,109 $60,000,000

$50,000,000

$42,299,676 Dollar Amount

$40,000,000

$30,000,000

$21,363,147 $20,000,000

$15,519,777 $10,000,000

$16,810,128 -$1,286,830

$0

New car loans -$10,000,000

Used car loans

Personal unsecured loans

5-year adjustable rate 1st mortgage

-$2,392,120

15-year fixed 30-year fixed Home equity / Credit cards 2nd mortgage rate 1st rate 1st loans mortgage mortgage

Types of Loan Products

$3,409,682

Estimated Credit Union Savings Dividend Benefits vs. Banking Institutions $18,000,000

$15,659,323

$16,000,000

$14,000,000

Dollar amount

$12,000,000

$11,373,062

$10,000,000

$8,000,000

$6,063,490

$5,991,743 $6,000,000

$4,000,000

$2,000,000

$446,441

$0 Regular shares

Share draft checking

Money market accounts

Types of Saving Products

CUNA Economics and Statistics Department

Certificate accounts

Retirement (IRA) accounts

Estimated Florida Credit Unions Financial Benefits First-Quarter 2011

Loans

Avg. Balance at

Rate Difference vs. Florida

Total Financial Benefit to Your

Credit Unions (1)

Banks (%) (2)

Members

New car loans 3,971,800,578 Used car loans 4,402,687,936 Personal unsecured loans 909,070,102 5-year adjustable rate 1st mortgage 3,337,586,447 15-year fixed rate 1st mortgage 2,339,690,539 30-year fixed rate 1st mortgage 4,349,308,950 Home equity / 2nd mortgage loans 3,909,332,094 Credit cards 2,351,504,792 Interest rebates in period Total CU member benefits arising from lower interest rates on loan products:

-1.07 -1.46 -2.35 -0.47 0.05 0.05 -0.43 -0.02

$42,299,676 $64,059,109 $21,363,147 $15,519,777 -$1,286,830 -$2,392,120 $16,810,128 $3,409,682 $2,772 $159,785,342

0.06 0.01 0.15 0.16 0.16

$5,991,743 $446,441 $11,373,062 $15,659,323 $6,063,490

Savings Regular shares Share draft checking Money market accounts Certificate accounts Retirement (IRA) accounts

10,894,078,519 4,464,410,794 7,582,041,254 9,787,077,062 3,911,929,220

Bonus dividends in period Total CU member benefit arising from higher interest rates on saving products:

$0 $39,534,060

Fee Income Total CU member benefit arising from fewer/lower fees:

$97,717,481

Total CU member benefit arising from interest rates on loan and savings products and lower fees:

$297,036,882

Total CU member benefit / member: Total CU member benefit / member household:

Source: Datatrac, NCUA, and CUNA (1) Average balance as of March 2011 and March 2010, according to the NCUA call report.; (2) Source for rates and fees: Datatrac;

$65 $124

Florida Performance Profile Demographic Information Number of branches Total assets ($ mil) Total loans ($ mil) Total surplus funds ($ mil) Total savings ($ mil) Total members (thousands)

Mar 11 927 43,126 25,962 15,537 37,459 4,548

Mar 10 888 42,706 27,537 13,536 37,046 4,568

Growth Rates (Year-to-date) Total assets Total loans Total surplus funds Total savings Total members

2.7 -1.8 11.6 2.9 0.5

Earnings - Basis Pts. Yield on total assets Dividend/interest cost of assets Fee & other income * Operating expense Loss Provisions Net Income (ROA) after stabilization exp *

418 84 169 343 104 52

461 123 161 338 166 -6

Capital adequancy Net worth / assets

9.5

9.4

Asset quality Delinquencies / loans Net chargeoffs / average loans Total borrower-bankruptcies Bankruptcies per 1000 members

3.0 1.8 28 1.1

3.0 2.3 40 1.6

69.3 60.2 32.5 43.0

74.3 64.5 31.0 39.4

3.6 46.4 370 8,236 12,309 57,142

3.8 48.5 359 8,111 12,432 54,572

Asset/Liability Management Loans / savings Loans / assets Long-term assets / assets Core deposits/shares & borrowings Productivity Members/potentional members Borrowers/members Members/FTE Average shares/members ($) Average loan balances ($) Salary & Benefits/FTE

% % % % %

0.3 -2.6 6.2 0.8 0.2

% % % % %