Maine People Helping Maine People

641,000 Members Strong

Maine’s Credit Unions

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.

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.

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.

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 PaysOne 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.

Avg. CU Avg. Net CU Balance Avg. CU Bank Avg. Rate Benefit Type of Loan ($ million) Rate Rate Difference ($ 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

Used Car $584 3.77% 5.48% 1.71% $9.99

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

Table 2: Benefit to Maine Credit Union Members from Lower Interest Rates Paid for Loans, September 2011

Sources: http://www.ncua.gov/DataApps/Documents/CUBNK201109.pdf and NCUA FinancialPerformance Reports, September 30, 2011.

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.

Lending By Maine Credit Unions By The Numbers In 2013

Total Dollar Amount Of Loans $4.16 billion (as of December 31, 2013)

# of Loans Under $2,000 17,041

# Of Credit Unions Offering Energy 80% and/or Weatherization Loans

# Of Energy Loans Made: 791 totaling more than $4 million

Your Money is Safe at a Maine Credit UnionWith 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!”  

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.

Lower and Fewer FeesIn 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.

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 Union League’s Legislative Team:

John Murphy - President(207) 773-5671 ext. 260 E-mail: jmurphy@mainecul.org

Jon Paradise - VP of Governmental & Public Affairs Manager(207) 773-5671 ext. 273 E-mail: jparadise@mainecul.org

Ed and Cate Pineau - Pineau Policy AssociatesContract lobbyists for Maine Credit Union League(207) 623-2355 E-mail: pineaupolicy@gmail.com

Acadia Federal Credit Union Ashland, Fort Kent, Madawaska, St. Agatha, St. Francis

Atlantic Regional Federal Credit Union Brunswick, Freeport, Topsham, Cumberland

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

Maine Credit Union League Member Credit Unions and Locations

Evergreen Credit Union Portland, Windham, Naples, South Portland

Five County Credit Union Auburn, Augusta, Bath, Bowdoinham, Brunswick, Falmouth, Lewiston, Lisbon, North Windham, Portland, Rockland, Scarborough, Skowhegan, Topsham, Waterville

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

www.mainecul.org

Maine Credit Union Statistics

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 $100.6 million

Total assets $6.14 billion

Members 637,379

Employees 2,240

*As of December 31, 2013

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