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					The Benefits of Membership



Customized Analysis of Member Benefits For:



    District Of Columbia


                December 2009



                   Prepared by:

      Credit Union National Association
       Economics and Statistics Department
                           About The Membership Benefits Report


The Membership Benefits report communicates the financial value of credit union
membership to credit union staff, members, potential members, community leaders and
policy makers. The report compares credit union dividend rates, loan rates, and fees to those
of banking institutions in the state1. It combines those comparisons with the state call report
data to develop an overall estimate of the annual financial benefits provided to members.

It is important to remember that the report gives a conservative estimate of benefits. For
example, it does not consider non-financial benefits such as access to a large ATM network,
financial counseling, or auto buying services.

When interpreting the report, remember that any benefit above $0 means credit unions are
delivering financial benefits compared to the average banking institution.

Not all credit unions will deliver lofty financial benefits. Greater financial benefits tend to
be found among credit unions that offer a greater variety of services and those with lower
operating expense ratios (i.e., higher economies of scale). On the other hand, higher
operating expense ratios tend to be associated with other non-financial benefits, such as
personalized “high-touch” services.

The report measures benefits at one distinct point in time. Operational and strategic
decisions – building new branches, expanding fields of membership, introducing new
products – will undoubtedly be reflected in credit union pricing decisions (and estimated
benefit levels).




1
  The source for banking institution interest rate and fee data is Datatrac. Datatrac is the nation’s leading rate survey firm and
tracks interest rates at over 15,000 institutions nationally.
                         District Of Columbia
                          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 District Of Columbia
credit unions provided $63,725,678 in direct financial benefits to the state’s 339,692
members during the twelve months ending December 2009.

These benefits are equivalent to $188 per member or $356 per member
household (1).

The per-member and per-household benefits delivered by District Of Columbia
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
District Of Columbia credit unions.

Consider this:

Financing a $25,000 new automobile for 60 months at a District Of Columbia
credit union will save members an average $352 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.

District Of Columbia credit unions excel in providing member benefits on many loan
and saving products. In particular, District Of Columbia credit unions offer lower
average loan rates on the following accounts: new car loans, used car loans,
personal unsecured loans, first mortgage-fixed rate, first mortgage-adjustable rate,
home equity loans, credit cards loans.

District Of Columbia 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

        16.00


        14.00                                                                                                             13.43
                                                                                                                                                  13.14
                                                                                                                                  12.93
                                                      12.54

        12.00
                                                                                                                                          10.29
        10.00
                                       8.89    8.89
Rates




         8.00           7.55


         6.00                                                                                5.48   5.59
                 5.04           5.21                           5.03   5.30    5.20   5.29
                                                                                                                   4.54
                                                                                                            3.85
         4.00


         2.00


         0.00
                60-month new     48-month       Unsecured        1-year      15-year fixed 30-year fixed Home equity / Credit card -      Credit card -
                car (A paper)   used car (A   loan (A paper)   adjustable      rate 1st      rate 1st    2nd mtg, 80%    classic             gold
                                  paper)                        rate 1st     mortgage, 0 mortgage, 0       LTV 0 pts
                                                               mortgage, 0       pts           pts
                                                                   pts
                                                                        Type of Loan Product

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

                                                                                                                1.35
                                 Retirement (IRA) accounts
                                                                                                                                              2.01


                                                                                                                       1.47
                          1 Year certificate $10,000 balance
Type of Saving Products




                                                                                                                                                     2.12


                                                                                                         1.23
                                    Money market accounts
                                                                                                                                       1.90


                                                                  0.23
                               Share draft checking, $5,000
                                         balance
                                                                                0.61


                                                                  0.24
                           Regular savings, $1,000 balance
                                                                                0.58


                                                           0.00          0.50                 1.00                 1.50                 2.00                2.50
                                                                                                       Rates

                                                                                       Credit Unions            Banking Institutions
                                             Selected Year-end 2009 Credit Union Fees
                                                 compared to Banking Institutions

                $2,500
                                                            $2,280.00                                                $2,309.00



                $2,000




                $1,500
Dollar Amount




                $1,000




                 $500



                                            $20.00                                                 $35.00
                         $25.00                                                         $30.00
                   $0
                                     District Of Columbia                                        Area Banks
                                                             Types of Fee Income

                            Share draft checking, NSF fee               Credit cards, late fee       Mortgages, closing costs
                                                     District Of Columbia
                                             Credit Union and Banking Instituion
                                     Year-end 2009 Average Interest Rates and Fees
                                                  Average Rate at           Average Rate           Rate Difference
Loan Products                                    Credit Unions (%)          at Banks (%)            vs. Banks (%)
60-month new car (A paper)                                        5.04                      7.55                     -2.51
48-month used car (A paper)                                       5.21                      8.89                     -3.68
Unsecured loan (A paper)                                          8.89                     12.54                     -3.65
1-year adjustable rate 1st mortgage, 0 pts                        5.03                      5.30                     -0.27
15-year fixed rate 1st mortgage, 0 pts                            5.20                      5.29                     -0.09
30-year fixed rate 1st mortgage, 0 pts                            5.48                      5.59                     -0.11
Home equity / 2nd mtg, 80% LTV 0 pts                              3.85                      4.54                     -0.70
Credit card - classic                                            13.43                     12.93                      0.50
Credit card - gold                                               10.29                     13.14                     -2.85

Savings Products
Regular savings, $1,000 balance                                      0.58                   0.24                     0.34
Share draft checking, $5,000 balance                                 0.61                   0.23                     0.38
Money market accounts                                                1.90                   1.23                     0.67
1 Year certificate $10,000 balance                                   2.12                   1.47                     0.65
Retirement (IRA) accounts                                            2.01                   1.35                     0.66

Fee Income
Share draft checking, NSF fee                                   $25.00                  $30.00                   -$5.00
Credit cards, late fee                                          $20.00                  $35.00                  -$15.00
Mortgages, closing costs                                     $2,280.00               $2,309.00                  -$29.00

Source: Datatrac
                                                Estimated Credit Union Loan Rate Benefits
                                                         vs. Banking Institutions

                $9,000,000
                                                          $7,654,854

                $8,000,000
                                             $7,174,782
                $7,000,000


                $6,000,000    $5,718,626
Dollar Amount




                $5,000,000
                                                                       $4,586,505

                $4,000,000
                                                                                                                 $3,434,483

                $3,000,000


                $2,000,000

                                                                                                   $297,834                     $760,899
                $1,000,000
                                                                                      $71,677

                       $0
                             New car loans    Used car     Personal      1-year     15-year fixed 30-year fixed Home equity / Credit cards
                                               loans      unsecured    adjustable     rate 1st      rate 1st    2nd mortgage
                                                            loans       rate 1st     mortgage      mortgage         loans
                                                                       mortgage
                                                                        Types of Loan Products
                                               Estimated Credit Union Savings Dividend Benefits
                                                           vs. Banking Institutions
                   $10,000,000
                                                                                  $9,452,281
                                                                                                           $9,005,577
                    $9,000,000


                    $8,000,000


                    $7,000,000


                    $6,000,000
   Dollar amount




                    $5,000,000


                    $4,000,000
                                  $3,495,220
                                                        $2,946,844
                    $3,000,000


                    $2,000,000

                                                                                                                               $1,083,149
                    $1,000,000


                           $0
                                 Regular shares      Share draft checking    Money market accounts     Certificate accounts   Retirement (IRA)
                                                                                                                                  accounts
                                                                            Types of Saving Products




CUNA Economics and Statistics Department
                                  Estimated District Of Columbia Credit Unions Financial Benefits
                                                                                                            Year-end 2009

                                                                                                                                                              Rate                 Total
                                                                                                                          Avg. Balance                    Difference          Financial Benefit
                                                                                                                               at                  vs. District Of Columbia       to Your
           Loans                                                                                                       Credit Unions (1)                Banks (%) (2)            Members
          New car loans                                                                  227,833,694                                                        -2.51                       $5,718,626
          Used car loans                                                                 195,232,160                                                        -3.68                       $7,174,782
          Personal unsecured loans                                                       209,722,040                                                        -3.65                       $7,654,854
          1-year adjustable rate 1st mortgage                                          1,698,705,641                                                        -0.27                       $4,586,505
          15-year fixed rate 1st mortgage                                                 79,640,710                                                        -0.09                          $71,677
          30-year fixed rate 1st mortgage                                                270,758,621                                                        -0.11                        $297,834
          Home equity / 2nd mortgage loans                                               494,170,219                                                        -0.70                       $3,434,483
          Credit cards                                                                   222,973,934                                                        0.50                         $760,899
          Interest rebates in period                                                                                                                                                     $310,970
          Total CU member benefits arising from lower interest rates on loan products:                                                                                                 $30,010,630

           Savings
          Regular shares                                                                                                           1,028,005,892            0.34                         $3,495,220
          Share draft checking                                                                                                       775,485,332            0.38                         $2,946,844
          Money market accounts                                                                                                    1,410,788,250            0.67                         $9,452,281
          Certificate accounts                                                                                                     1,385,473,406            0.65                         $9,005,577
          Retirement (IRA) accounts                                                                                                  164,113,490            0.66                         $1,083,149
          Bonus dividends in period                                                                                                                                                               $0
          Total CU member benefit arising from higher interest rates on saving products:                                                                                               $25,983,072

           Fee Income
          Total CU member benefit arising from fewer/lower fees:                                                                                                                        $7,731,976


           Total CU member benefit arising from interest rates on loan and savings products and lower fees:                                                                            $63,725,678

           Total CU member benefit / member:                                                                                                                                                  $188
           Total CU member benefit / member household:                                                                                                                                        $356


Source: Datatrac, NCUA, and CUNA
         (1) Average balance as of year-end 2007 and year-end 2008, according to the NCUA call report.; (2) Source for rates and fees: Datatrac;
                                         District Of Columbia
                                         Performance Profile

Demographic Information                                 Dec-09        Dec-08
Number of branches                                         103           139
Total assets ($ mil)                                     5,837         6,674
Total loans ($ mil)                                      3,562         4,303
Total surplus funds ($ mil)                              2,135         2,207
Total savings ($ mil)                                    5,070         5,721
Total members (thousands)                                  345           477
Growth Rates (Year-to-date)
Total assets                                               11.5   %      7.6   %
Total loans                                                 7.5   %      3.2   %
Total surplus funds                                        18.8   %     17.9   %
Total savings                                              13.0   %      8.8   %
Total members                                               3.1   %      1.8   %
Earnings - Basis Pts.
Yield on total assets                                       408         501
Dividend/interest cost of assets                            134         219
Fee & other income *                                         95          98
Operating expense                                           285         315
Loss Provisions                                              44          39
Net Income (ROA) after stabilization exp *                   -2          26
Capital adequancy
Net worth / assets                                         11.7         12.3
Asset quality
Delinquencies / loans                                       1.4          1.2
Net chargeoffs / average loans                              0.4          0.4
Total borrower-bankruptcies                                 10           10
Bankruptcies per 1000 members                               1.4          1.3
Asset/Liability Management
Loans / savings                                            70.3         75.2
Loans / assets                                             61.0         64.5
Long-term assets / assets                                  21.0         19.7
Core deposits/shares & borrowings                          38.3         37.1
Productivity
Members/potentional members                                17.5         16.4
Borrowers/members                                          54.2         56.3
Members/FTE                                                 325          334
Average shares/members ($)                               14,701       11,993
Average loan balances ($)                                19,047       16,012
Salary & Benefits/FTE                                    72,285       69,615

				
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