BOISE, Idaho (8/14/13)--A better economy and more new loans have helped improve Idaho credit union performance in 2013, according to the Idaho Credit Union League.
The economic and business climate in the state provides a fertile environment for credit unions, Chris Johnson, league president/CEO, told the Idaho Business Review (Aug. 2). Johnson said he is "exceedingly optimistic" about the future of credit unions in the state.
Loan demand, which was weak during the recession, has increased, said Gavin Gee, director of the Idaho Department of Finance, which oversees state-chartered credit unions.
Idaho Central CU, Chubbuck, was ranked the best-performing credit union in the U.S. in 2012 by SNL Financial, a financial information firm in Charlottesville, Va., said ICCU CEO Kent Oram in the article.
An improved housing market is driving credit union performance, both Oram and Gee said. Mortgage refinancing initiated the recovery, but has slowed recently, Oram added.
A balanced state budget and lucrative state bond market also helped, Johnson said.
One worry for Idaho credit unions is the increasing burden of regulations. Rules related to the Dodd-Frank Act and Consumer Financial Protection Bureau (CFPB) are chief concerns, Oram noted.
The Credit Union National Association continues to work with the U.S. Congress, the CFPB and the National Credit Union Administration to minimize regulatory burdens on credit unions. Recently, CUNA reiterated that CFPB and NCUA should conduct detailed cost-benefit analyses on proposed and final regulations to curb the "creeping complexity" of burdensome regulations on credit unions--especially small credit unions.