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UNITED STATES DEPARTMENT OF LABOR L. B. Schwellenbach, Secretary BUREAU OF LABOR STATISTICS Ewan Clague, Commissioner Activities o f Credit Unions in 1945 Bulletin ?<Lo. 894 For sale by the Superintendent o f Documents, U. S. Governm ent Printing Office Washington 25, D . C. - Price 5 cents L etter o f T ransm ittal U n it e d S t a t e s D e p a r t m e n t of L a b o r , B u r e a u of L a b o r S t a t ist ic s , Washington, D. C., January 17, 1947. The S e c r e t a r y of L a b o r : I have the honor to transmit herewith a report on the activities of credit unions in 1945, prepared by Florence E. Parker of the Bureau’s Labor Economics Staff. E w a n C l a g u e , Commissioner. H o n . L. B. S c h w e l l e n b a c h , Secretary of Labor. C ontents Summary---------------------------------------------------------------------------------------Operations in 1944 and 1945_________________________________________ Trend in formation of associations in 1945____________________________ State legislation_____________________________________________________ <ii) Page 1 1 6 6 Bulletin T^o. 894 of the United States Bureau of Labor Statistics [Reprinted from the M onthly L abor R eview, December 1946, with additional data.] Activities of Credit Unions in 1945 THE slight upward trend in business done by credit unions in the United States in 1944, after a serious decline during the war years, was continued in 1945, although the total of loans made was still more than 40- percent below the peak of 1941. This increase took place in spite of a slight reduction in number of loans made, indicating a rise in the average size of loan. Share capital and assets which (notwithstanding the otherwise adverse business experience of the credit unions during the war) have continued to rise steadily, main tained their upward pace in 1945, showing increases of 8.1 and 9.2 percent, respectively. Reserves fell somewhat, however, both in amount and in relation to loans outstanding, declining as regards the latter from 20.7 percent in 1944 to 19.4 percent in 1945. Both net earnings and dividends paid on share capital increased as compared with 1944. For 1945, credit union members received nearly $5,900,000 in dividends on their shares. Because 398 credit unions went out of existence (some of them undoubtedly in war plants now closed) and only 239 were newly chartered, the total number of associations fell from 9,041 at the end of 1944 to 8,882 at the end of 1945. Partly as a result of this, the total membership declined 3.3 percent. The State-chartered credit unions fared better during the year than the Federal associations.1 Their membership declined 0.5 percent, as against 6.7 percent for the Federal associations; they increased their business by 0.8 percent, whereas the loans made by the Federal credit unions fell 0.1 percent. The increases in assets of the two groups of associations were 11.0 and 6.1 percent, respectively. Operations in 1944 and 1945 Data on membership and business of credit unions in 1944 and 1945 are given in table 1. 1 For the State-chartered associations the statistical data on which the present report is based were in most cases furnished to the Bureau of Labor Statistics by the State official—usually the Superintendent of Bankscharged with supervision of these associations. Reports were received from all States except Iowa. For that State and for certain items concerning which some States do not require the associations to report, estimates were made, based on the trend in other States and on the trend of the other items in the same State. All of the information for the Federal credit unions was supplied by the Credit Union Division of the Federal Deposit Insurance Corporation. (i) 2 .—Operations of credit unions in 1944 and 1945, by States T able 1 [Some revisions in 1944 figures, on basis of later reports] State, and type of charter Year Number of Amount of loans— associations4 Number Number of loans of made members during Made dur Outstanding Total Report year ing ing year end of year All States.............................. State associations.......... Federal associations___ 1945 * 1944 1945 8 1944 1945 1944 1945 8 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 81944 3 1945 1944 1945 8 1944 1945 1944 1945 2 1944 1945 1944 1945 1944 1945 1944 1945 2 1944 1945 2 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 8,882 9,041 4,923 4,993 3,959 4,048 78 80 23 24 25 27 444 451 106 107 186 185 10 10 112 114 160 168 132 135 96 97 31 33 762 766 297 299 195 201 112 117 104 108 131 139 38 44 64 65 539 537 248 253 325 332 26 27 369 378 40 40 89 96 4 4 16 15 247 240 14 14 753 763 195 173 Alabama.............................. Arizona.................................. Arkansas................................ California.............................. Colorado................................ Connecticut4........................ Delaware4............................. District of Columbia........... Florida................................... Georgia.................................. Hawaii4.................................. Idaho..____ ____________ Illinois.................................... Indiana.................................. Iowa....................................... Kansas................................... Kentucky.............................. Louisiana.............................. Maine.................................... Maryland.............................. Massachusetts...................... Michigan............................... Minnesota............................. Mississippi............................ Missouri................................ Montana................................ Nebraska............................... Nevada4................................ New Hampshire................... New Jersey........................... New Mexico 6..................... New York............................. North Carolina..................... See footnotes at end of table. 8.615 8,702 4,858 4,907 3,757 3,795 76 77 22 24 25 26 432 442 102 100 180 179 9 9 108 106 156 162 128 131 95 96 31 31 758 756 295 294 195 196 110 111 103 107 125 132 35 35 60 60 535 532 240 241 324 329 23 24 340 359 37 37 87 88 4 4 14 14 237 233 13 14 721 729 168 151 2,838,034 2,933,507 1,621,409 1,629,706 1,216,625 1,303,801 28,258 26,806 3,285 3,419 3,059 2,862 3 171,391 *184,969 25,999 25,645 75,118 89,517 2,126 2,114 62,095 66,099 35,202 34,991 33,837 34,117 36,112 37,753 3 3,971 3,895 330,830 290,032 « 93,502 3 97,967 40,779 41,395 25,068 27,914 3 24,582 *26,649 3 32,405 8 32,241 9,273 9,080 25,109 26,748 255,007 257,260 108,633 114,320 65,734 66,696 » 5,553 6,640 88,761 90,834 7,175 6,382 19,381 20,595 584 562 5,698 6,151 99,042 114,225 1,304 1,324 258,397 279,116 35,471 29,387 1,511,851 1,591,132 909,922 926,518 601,929 664,614 34,261 *26,948 * 1,367 *1,350 1,824 1,685 3 78,839 3 89,047 * 17,312 * 18,259 41,755 47,962 1,003 1,148 «33,236 *38,052 22,659 25,251 *22,879 3 22,744 11,116 10,076 1,405 1,329 » 238,519 * 226,575 *44,616 3 51,326 18,446 18,921 13,056 3 14,423 * 16,209 3 15,214 3 17,008 3 17,270 3,672 3,987 *17,395 * 17,458 »122,570 3 122,591 50,172 *51,950 28,713 «33,389 *4,787 *5,784 *41,887 *44,328 *2,952 *2,284 8,795 9,882 108 104 *3,017 » 3,557 50,390 63,925 333 589 *127,090 *144,310 *17,801 17,822 $210,885,783 $126,277,698 209,955,479 120,955,395 132,616,939 91,122,284 131,621,582 86,551,928 78,268,844 35,155,414 78,333,897 34,403,467 4,147,161 1,929,705 3,155,213 1,534,975 3 339,842 135,613 547,043 117,812 194,567 113,615 163,980 86,860 *12,926,276 8,171,810 *13,481,423 7,761,778 * 2,247,274 1,349,980 3 2,105,359 1,151,187 4,821,201 1,744,467 5,742,389 1,963,648 132,166 71,371 139,085 67,574 3,825,016 1,976,325 3,881,868 2,065,336 3,683,161 2,099,007 3,248,585 1,774,033 *3,090,362 2,068,728 *2,886,066 1,896,131 2,155,997 930,429 1,941,163 1,001,467 185,467 102,729 173,653 87,049 28,929,683 14,011,222 25,698,370 13,135,592 *5,755,008 3,529,359 86,278,072 3,378,962 2,397,601 1,771,508 2,420,443 1,825,666 1,971,470 1,082,077 *1,952,696 1,071,793 *1,841,919 *1,366,101 *1,752,616 1,366,019 * 2,158,785 1,066,420 * 2,143,350 *1,037,703 450,641 261,743 441,178 237,840 *1,942,507 804,623 *1,883,517 784,897 22,917,547 16,436,055 22,654,669 15,466,050 8,683,432 6,389,549 *8,437,474 5,981,086 4,598,703 5,808,028 »3.662,418 5,451,077 *462,150 191,042 *530,087 226,352 *4,868,432 3,116,292 *5,432,884 3,185,792 * 440,493 261,103 *373,912 201,345 1,253,906 730,378 1,320,588 717,155 16,185 9,386 13,004 7,169 *760.720 640,080 *788,041 653,906 5,809,257 2,416,596 6,382,951 2,632,417 46,262 25,220 63,358 28,217 * 20,785,191 12,608,773 *23,601,108 12,898,928 *2,078,429 1,934,614 2,088,966 1,256,073 3 .—Operations of credit unions in 1944 and 1945, by Stalest-Continued T able 1 State, and type of charter North Dakota...................... O hio..................................... Oklahoma.............................. Oregon................................... Pennsylvania......... ............. Rhode Island........................ South Carolina..................... South Dakota 4.................... Tennessee.............................. Texas..................................... Utah....................................... Vermont.—........................... Virginia— ............................ Washington.....................— West Virginia—................... Wisconsin.............................. Wyoming 4............................ Number of Number Amount of loans— associations1 Number of loans made of Year during members year Made dur Outstanding Total Report ing ing year end of year 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 93 97 583 589 71 75 71 75 586 587 36 37 35 39 32 32 117 127 334 350 64 66 10 9 86 91 178 188 63 67 534 551 18 19 87 80 567 575 66 72 68 71 571 560 35 34 29 31 32 32 115 124 319 328 62 65 9 9 83 86 174 180 59 60 534 548 17 18 11,766 10,689 188,522 214,099 * 16,225 16,513 12,491 13,053 213,503 224,151 26,648 25,792 6,922 7,688 4,818 5.176 33,903 34,567 76,217 77,952 11,375 11,577 1,692 1,562 23,391 25,396 35,404 37,739 15,318 15,857 144,594 151,509 2,504 2,582 3,300 3,241 84,927 97,508 * 7,760 *7,737 4,420 5,135 106,331 111,023 6,275 7,062 5,651 5,346 1,970 2,547 *26,412 *27,298 *44,953 *45,870 *10,152 *7,625 *1,108 1,265 16,519 14,366 *15,846 *18,999 9,839 *7,983 70,319 77,640 877 947 $1,115,835 738,280 11,896,005 12,317,470 *1,330,282 *1,238,328 749,837 811,167 13,435,747 13,406,338 2,445,642 2,023,922 416,753 427,749 236,954 273,901 *3,788,965 *3,581,047 *6,133,740 * 5,763,109 *1,328,692 *1,204,492 *76,395 74,947 1,619,262 1,462,221 *1,947,710 2,428,191 1,026,200 *764,907 7,265,449 7,885,115 155,504 168,766 $805,445 486,812 6,012,876 6,311,501 864,512 *710,019 531,506 544,424 6,326,211 6,296,028 4,510,639 3,781,404 204,162 190,507 99,457 119,880 1,578,663 1,428,126 3,229,896 3,063,612 637,293 567,092 27,389 27,554 843,257 901,198 1,234,717 *1,280,285 510,424 452,887 3,625,734 3,655,518 81,569 86,660 1 Most of the difference between the total number of associations and the number reporting is accounted for by associations chartered but not in operation by the end of the year and associations in liquidation which had not relinquished their charters. * Revised. * Partly estimated. * Federal associations only; no State-chartered associations in this State. * Federal associations only; although State permissive legislation was passed in 1945 no associations had yet been formed under it. Fifteen States (Alabama, Arkansas, Colorado, Delaware, Florida, Idaho, Illinois, Louisiana, Maine, Montana, Nevada, North Carolina, North Dakota, Rhode Island, and Vermont) showed a membership increase. Their slight gains, however, were not sufficient to overcome the losses in members in the other States. The prewar level of business was reached or exceeded in 1945 by both State and Federal associations in Alabama, Montana, and Ver mont, by the State-chartered associations in Rhode Island, and by the Federal credit unions in Utah. D ata on the financial status of credit unions, by States, is given in table 2, 4 T a b le 2. —Assets and earnings of credit unions, 1944 and 1945, by States State, and type of Year charter Number of associations1 Re Total port ing 1945 8,882 1944 9,041 1945 4,923 1944 4,993 1945 3,959 1944 4,048 Alabama...................... 1945 78 1944 80 Arizona........................ 1945 23 1944 24 Arkansas...................... 1945 24 1944 28 California.................... 1945 444 1944 451 Colorado.................. . 1945 106 1944 108 Connecticut3.............. 1945 186 1944 185 Delaware3................... 1945 10 1944 10 Dist. of Columbia.... 1945 112 1944 113 Florida......................... 1945 160 1944 170 Georgia......................... 1945 132 1944 138 Hawaii..................... . 1945 96 1944 97 Idaho............................ 1945 31 1944 33 Illinois.......................... 1945 762 1944 766 Indiana____________ 1945 297 1944 297 Iowa............................ *1945 195 1944 201 Kansas......................... 1945 112 1944 Kentucky.................... 1945 118 104 1944 Louisiana..................... 1945 108 131 1944 145 Maine.......................... 1945 381944 44 Maryland.................... 1945 64 1944 66 Massachusetts............ 1945 539 1944 537 Michigan..................... 1945 248 1944 253 Minnesota................... 1945 325 1944 365 Mississippi.................. 1945 26 1944 27 Missouri...................... 1945 369 1944 378 Montana...................... 1945 40 1944 42 Nebraska..................... 1945 89 1944 91 Nevada 3...................... 1945 4 1944 4 New Hampshire......... 1945 16 1944 15 New Jersey.................. 1945 247 1944 241 New Mexico •............. 1945 14 1944 14 New York________ 1945 753 1944 764 North Carolina........... 1945 195 1944 173 See footnotes at csnd of table. All States.................... State associations. Federal associations................... 8,615 8,702 4,858 4,907 3,757 3,795 76 77 22 24 24 26 432 442 102 100 180 179 9 9 108 106 156 162 128 131 95 96 31 31 758 756 295 294 195 196 110 111 103 107 125 132 35 35 60 60 535 532 240 241 324 329 23 24 340 359 37 37 87 88 4 4 14 14 237 233 13 14 721 729 168 151 Reserves Paid-in (guaranty Divi earn dends share fund, gen Total assets Netings on capital eral reserve, shares etc.) $366,201,586 $24,506,019 338,713,383 25,081,703 225,587,624 19,595,211 205,127,236 17,023,389 140,613,962 4,910,808 133,586,147 8,058,314 3,490,315 331,965 2,753,163 275,891 340,278 16,331 318,418 24,464 280,647 19,108 219,261 17,720 23,072,165 1,192,163 22,313,274 1,487,572 3,534,312 193,990 2,898,805 229,402 10,886,299 323,390 12,849,767 548,399 177,527 9,824 161,965 13,305 5,851,332 500,025 5,472,271 527,168 5,742,807 228,720 4,629,791 278,735 1,599,847 475,877 1,425,875 396,375 9,920,711 245,751 8,785,479 399,350 362,180 12,587 292,498 17,595 47,144,644 2,931,533 42,522,556 2,924,278 12,893,396 605,425 12,106,052 869,698 5,278,339 282,273 5,172,242 281,504 3,104,637 125,397 2,805,222 143,798 1,603,451 237,313 2,865,077 215,170 3,135,173 229,695 2,775,840 281,554 905,029 80,954 735,914 82,502 2,143,396' 234,146 2,029,995 230,933 34,835,929 4,094,449 30,893,107 3,176,049 1,897,722 866,627 17,420,056 826,662 10,445,037 547,621 8,995,484 547,967 394,429 23,759 508,580 53,008 12,350,600 3554,521 10,490,289 2601,875 631,187 18,386 460,586 23,642 2,258,249 119,160 2,042,738 135,202 30,220 1,412 25,011 1,741 521,102 89,449 490,954 85,489 11,997,931 526,189 12,027,205 579,566 97,912 5,057 80,794 6,582 32,051,449 3,381,877 31,673,401 3,132,182 4,390,565 168,470 2,796,132 159,545 $434,627,135 397,929,814 281,524,015 253,663,058 153,103,120 144,266,156 3,908,510 3,081,166 370,860 349,497 314,409 232,625 26,986,463 25,910,483 4,017,658 3,354,663 12,517,942 13,575.000 192,605 176,276 6,613,620 6,203,746 6,191,836 5,014,622 5,339,232 4,778,774 10,558,538 9,253,563 382,466 312,947 51,250,789 46,666,917 14,099,255 13,217,602 6,082,772 6,037,066 3,372,538 3,059,167 3,777,484 3,304,051 3,468,822 3,081,504 1,021,718 889,104 2,522,736 2,370,134 48,036,635 42,322,457 21,265,393 19,622,464 14,132,049 12,231,282 619,069 589,365 13,550,872 11,592,194 679,020 495,219 2,806,406 2,567,729 32,588 26,764 1,352,729 1,114,147 13,734,068 13,166,766 104,125 87,586 36,700,864 36,573,853 6,012,566 3,571,806 $7,839,810 5,716,736 5,278,300 3,507,152 2,561,510 2,209,584 94,715 82,859 7,580 24,908 6,194 4,932 2 408,543 2407,721 2 77,060 2 72,654 246,542 207,095 4,463 3,391 202,550 170,029 122,329 2 104,471 2 104,657 »100,237 173,028 158,711 5,009 3,709 938,364 322,849 2 173,438 3 161,751 70,904 88,595 2 45,765 2 48,959 2 43,203 2 42,401 »62,663 60,209 10,333 8,287 64,802 56,182 1,170,221 379,626 306,032 320,972 195,008 8 4,745 21,793 14,262 2162,124 2 160,978 14,370 8,565 39,891 44,475 487 119 32,026 28,528 268,184 202,493 623 872 770,253 682,279 32,680 82,861 $5,888,412 5,122,454 3,781,036 3,368,794 2,107,376 1,753,660 76,509 62,830 4,908 2 4,455 5,841 3,896 2 286,432 2 250,641 253,773 3 51,381 170,143 158,189 4,169 3,208 115,011 111, 651 89,530 73,180 2 70,387 2 63,359 136,026 112,905 4,152 3,824 778,743 645,723 2 134,715 2 114,888 45,410 93,051 2 31,846 3 31,585 2 28,979 2 28,474 2 49,444 40,808 12,092 10,526 47,013 40,431 8812,162 609,262 291,839 246,189 203,950 170,283 8,361 6,356 297,497 295,154 10,049 6,486 *29,888 24,207 456 287 9,896 9,966 196,245 171,265 816 862 558,692 542,878 *23,266 *37,909 5 T a b le 2. —Assets and earnings of credit unions, 1944 and 1945, by States— Continued State, and type of Year charter North Dakota______ Ohio........— .............. Oklahoma.................... Oregon..................— Pennsylvania.............. Rhode Island............. South Carolina-------South Dakota8_____ Tennessee...............— Texas........................... U tah.......................... Vermont..................... Virginia....................... Washington................ West Virginia............. Wisconsin................... Wyoming 8._.............. 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 Number of associations12*4 Re Total port ing 93 95 583 589 71 75 71 75 586 587 36 37 35 39 32 32 117 127 334 354 64 66 10 9 86 91 178 200 63 67 534 551 18 19 87 80 567 575 66 72 68 71 571 560 35 34 29 31 32 32 115 124 319 328 62 65 9 9 83 86 174 180 59 60 534 548 17 18 Reserves Paid-in (guaranty Divi earn dends fund, gen Total assets Netings share on capital eral reserve, shares etc.) $2,153,649 1,560,501 22,665,272 22,554,131 954,852 764,011 1,657,161 1,585,523 22,109,027 19,976,363 4,160,685 3,713,056 475,998 492,980 495,777 432,363 4,285,476 3,613,033 10,680,407 9,565,633 1,441,870 1,291,712 67,859 72,201 1,623,534 1,629,188 4,354,530 4,074,313 1,185,546 1,009,311 17,144,895 15,110,319 292,789 230,943 $38,597 29,867 788,602 1,009,014 79,711 86,153 91,957 99,714 831,494 1,255,130 430,473 369,780 30,274 44,716 19,794 34,466 509,368 367,724 705,052 839,769 72,840 80,718 2,250 2,584 213,237 316,819 348,999 371,762 109,095 129,608 1,546,123 1,453,581 9,141 15,375 $2,233,424 $29,759 $16,756 1,617,913 17,366 10,325 24,223,640 321,372 278,563 24.336,012 288,882 242,121 2,246,601 243,115 2 31,315 1,812,545 19,521 26,130 27,014 1,819,237 24,054 1,749,892 26,027 21,137 24,033,969 451,817 381,417 22,065,186 380,534 331,854 10,904,433 149,536 85,942 9,134,996 129,433 75,431 537,129 8,278 8,058 8,053 6,947 561,540 8,402 531,688 8,422 467,914 7,302 7,420 4,939,793 120,941 97,514 57,534 4,253,506 76,779 11,795,192 205,521 168,980 10,634,060 2 221,783 8160,116 1,612,069 2 34,015 223,674 1,444,259 232,706 221,081 81,164 1,019 448 735 75,826 398 2,082,280 39,775 36,130 41,094 2,159,086 31,496 80,769 95,303 4,776,410 44,981 4,467,146 56,318 25,913 1,413,816 22,998 1,201,774 24,446 22,913 19,065,759 395,744 229,798 16,871,283 361,551 219,135 5,334 6,428 309,246 5,489 246,337 4808 1 Most of the difference between the total number of associations and the number reporting is accounted for by associations chartered but not in operation by the end of the year and associations in process of liqui dation which had not relinquished their charters. 2 Partly estimated. 8 Federal associations only; no State-chartered associations in this State. 4 Includes interest paid on deposits by State-chartered associations. 4Loss. 8 Federal associations only; although State permissive legislation was passed in 1945, no associations had yet been formed under it. 6 Trend in Formation of Associations in 1945 Table 3 shows, by States, the number of associations formed and dissolved in 1945, and the total and number reporting at the end of the year. T able 3.— Trend of formation and dissolution of credit unions in 1945 Number of credit unions State and type of association End of Char tered 1944 in 1945 End of 1945 Canceled in Re1945 Total porting 9,041 239 398 8,882 8,615 All States State assns___ 14,993 143 213 4,923 4,858 Federal assns. _ 4,048 96 185 3,959 3,757 2 4 78 76 Alabama.. 80 1 23 22 24 Arizona_______ 24 Arkansas.___ 3 24 27 7 14 444 432 California* ___ 451 3 4 106 59 Colorado______ 107 7 6 186 180 Connecticut........ 185 9 Delaware____ 10 10 District of Co lumbia............. 114 2 4 112 108 3 11 160 156 Florida_ 168 6 132 128 Georgia................ 135 3 Hawaii 1 95 2 96 97 Tdahn _ 2 31 31 33 Illinois................. 766 27 31 762 758 Indiana_______ 299 6 297 295 4 Tnwa * 6 195 195 201 Kansas 4 9 112 110 117 Kentucky 108 3 7 104 103 2 10 131 125 Louisiana______ 139 TWaina................. 35 44 2 8 38 2 64 60 Maryland........... 65 1 12 10 539 535 Massachusetts__ 537 Michigan 253 6 11 248 240 1 8 325 324 Minnesota_____ 332 i Some revisions, on basis of later information. * Partly estimated. 1 Number of credit unions State and type of association End of Char tered 1944 in 1945 Mississippi......... Missouri. ........... Montana______ Nebraska Nevada.............. New Hampshire. New Jersey......... New Mexico....... New York........... North Carolina*. North Dakota... Ohio.................. Oklahoma........... Oregon________ Pennsylvania__ Rhode Island__ South Carolina. . South Dakota... Tennessee........... Texas. ................ Utah.................... Vermont—.......... Virginia............... Washington____ West Virginia. _. Wisconsin_____ Wyoming______ State Legislation 27 378 40 96 4 15 240 14 763 173 97 589 75 75 587 37 39 32 127 350 66 9 91 188 67 551 19 End of 1945 Can celed in Re 1945 Total port ing 3 4 26 8 17 369 40 3 10 89 4 1 16 11 4 247 14 14 24 753 29 7 195 4 8 93 15 21 583 4 71 1 5 71 15 16 586 1 36 1 . 5 35 1 1 32 2 12 117 8 24 334 1 3 64 1 10 1 6 86 26 36 178 1 5 63 3 201 534 18 23 340 37 87 4 14 237 13 721 168 87 567 66 68 571 35 29 32 115 319 62 9 83 174 59 534 17 California.—Several measures were enacted affecting the credit unions. Chapter 1262 eliminated the requirement that the number of persons in the field of membership be specified when a credit union is organized, and limited votes to one per member in all associations organized on or after September 15, 1945. Chapter 651 raised the maximum amount permissible for a secured loan to $3,000 or 10 per cent of the credit union’s capital, whichever is greater (but in no case to exceed $10,000); and provided that on loans over $3,000 the excess must be secured by real and/or personal property. No loans may be made to directors or committee members in excess of their investment; henceforth a borrower may be elected as director or committee member, but will forfeit his office in case of default on repayment of his loan. Under chapter 438, formal meetings of the credit committee are apparently no longer required, the former pro vision being amended to require only that loans be approved in writing by a majority of the committee. 7 The duties of the supervisory committee now include the mandatory requirement that the committee make an annual audit of the books and records (ch. 1262). A range of examination charges is established, varying according to assets of the credit union (ch. 1318), the Commissioner of Corporations being authorized to make certain adjustments in these, to suspend or revoke the licenses of associations failing to pay such charges before the end of the year, and to make extra charges for special services rendered by his office. Chapter 475 gives him certain powers over credit unions operating on an unsound basis or with impaired capital; provides that if three-fourths of the directors vote to recommend the dissolution of an association, liquidation may be carried out on vote of a majority of members; and specifies procedures for liquidation. It likewise provides for mergers of credit unions with “ like com munity interests,” upon majority affirmative vote of the directors and a three-fourths vote of the members. Annual reports must be made to the commissioner within 90 days of the close of the calendar year, failing which an association may have its charter suspended (ch. 437). Chapter 467 permits any credit union to take out group life insurance for its members. Colorado.—An amendment (ch. 113) permits members of the im mediate family of a credit-union member to join the association and to have joint accounts with him; permits members withdrawing from the field of membership to leave in their shares and deposits, if so provided by the bylaws, but they are prohibited thereafter from borrowing from the credit union amounts in excess of their holdings; requires that 20 percent of annual earnings shall be set aside in the reserve fund until the latter equals 15 percent of loans outstanding, and thereafter 15 percent until the reserve equals 20 percent of out standing loans; authorizes the directors (instead of membership meeting) to declare dividends; and authorizes the formation of a central credit union. Connecticut—This State passed a credit-union law in 1939, but no association was ever formed under it. The 1945 legislature made several liberalizing amendments to the act. By chapter 192b the previous license fee of $50 was reduced to $20 and the filing fee was set at $10. Associations formed under the act may use either the name “ credit union” or “mutual benefit association,” but must specify “ in detail” in their articles of incorporation the proposed field of membership. Shares may be $5 or a multiple thereof. Copies of the bylaws must be supplied to members on request. The amend ment permits credit associations to take out insurance on the lives of borrowers (to safeguard their loans) and to invest in bonds legal for savings banks and (not to exceed 10 percent of assets) in building and loan associations in the State. Annual meetings may vote to pay the 729944—47-----2 8 officers compensation for their services. A new provision prohibits proxy voting at meetings. The limit on unsecured loans was raised from $100 to $300 and on the individual member’s shareholdings from $1,000 to $3,000 (but no more than $1,000 of this to be added in any calendar year). Officers other than president, vice president, treasurer, and secretary may be provided for in the bylaws, and the manner of their election (whether by members or directors) may also be specified. The directors must meet at least once a month. A fidelity bond must be provided by the treasurer before entering upon his duties. Florida.—Act No. 499 (ch. 23013) reduced the voting requirement for dissolution of an association from four-fifths of the members to a majority. Indiana.—The 1945 amendment (ch. 198) reduces the total reserves required from 20 to 10 percent of the paid-in capital (after this amount is reached no further set-asides are required), permits credit unions to carry an undivided profits account, sets January 31 and July 31 as the dates for reports to the State Department of Financial Institutions, and provides that credit unions shall be subject to the same taxes as savings banks. Maryland.—Chapter 409 authorizes credit unions to make firstmortgage loans up to $1,500 (but not exceeding 50 percent of the appraised value of the property), at a rate of interest not over 6 per cent, amortized over a period not greater than 20 years; all such loans must have the approval of the Bank Commissioner. The proportion of annual earnings to be set aside in reserves was reduced from 25 to 20 percent (ch. 665); after the reserves are equal to 20 percent of the paid-in share capital, only such sums shall be required to be set aside as are necessary to keep the reserve fund at that level. Credit unions may hereafter borrow from any source (including other credit unions) amounts not exceeding 25 percent of their assets for not longer than 90 days, but this may be extended for a like period on approval of the commissioner. A credit union may also make loans to another credit union (ch. 315). It may also, upon approval, invest its surplus capital in insured building and loan associations (ch. 666). Chapter 515 imposes a $10 franchise fee. Massachusetts.—Chapter 37 authorizes savings banks, cooperative banks (building and loan associations), trust companies, and credit unions holding a first mortgage on real estate to take, in substitution therefore from a bona fide purchaser, a first mortgage in an amount not exceeding that due on the existing first mortgage and accumulated interest, taxes, municipal liens, and other proper charges due thereon. The same organizations are authorized (1) by chapter 46 for a period of 5 years after the termination of the war to make loans to veterans, and all limitations on the loans of such organizations are suspended as 9 regards veterans’ loans, and (2) by chapter 66 to make housing loans. Chapter 81 authorizes and prescribes conditions for trustee accounts in credit unions. Chapter 82 amends chapter 102 of 1941 to provide that credit unions with assets of not more than $75,000 may invest not over 50 percent and those with assets of over that amount 70 percent of their shares, deposits, and guaranty fund in real-estate mortgages; however, the total liability of any member upon loans so secured shall not exceed 5 percent of the credit union assets nor $8,000. The terms upon which such loans may be made are also prescribed. Minnesota.—By the terms of chapter 540, credit unions in Min nesota, chartered by either the State or the Federal Government, are permitted to become members of other credit unions. Annual reports are required to be filed with the Commissioner of Banks on or before January 15 of each year. The aggregate amount of bor rowings of any credit union may not exceed 35 percent of its unim paired assets. In the case of a loan to a director or committee member which exceeds the amount of his investment in the credit union, the loan must be approved by a joint meeting of the board and both committees. Nebraska.—Extensive revisions of the credit-union law by chapter 41 require a member to own a fully paid share in order to be eligible for a loan or to vote at meetings, remove the previous limit on the maximum loan to any member and authorize the board of directors to fix the limit, permit loans to directors and committee members in excess of their holdings if approved by the credit committee and a majority of the supervisory committee in the absence of the borrower concerned, authorize the credit committee to require a borrower to pledge his shares as security, and permit the application of the shares of a defaulting borrower or withdrawing member toward payment of his loan. The directors are authorized to determine (instead of recommend, as previously) the rate of dividend on shares; this may be done on the basis of the share and loan balances as of December 15, instead of the end of the association’s fiscal year, if the board chooses. It may also fix the treasurer’s compensation (previously done by membership meeting). The payment of patronage refunds to borrowers is hereafter permitted, as is also the verification of pass books by mailed notice to the member, confirmed by the member himself. New M exico.— A. new credit-union law (ch. 129) was enacted in this State. It places the credit unions under the supervision of the State Bank Examiner, provides a filing fee of $5 for articles of incor poration and bylaws, and reserves the name “ credit union” to associa tions formed under the act. Such an association is authorized to accept savings either as shares or as deposits, to make loans to mem 10 bers (who may be other credit unions as well as individual persons), to invest in any investment legal for savings or trust funds and not over 25 percent of its capital in paid-up shares of building and loan associations and in other credit unions, to borrow money aggregating not over 25 percent of its assets, and to become a member of a central credit union. Individual membership in any credit union is limited to persons with a common bond or occupation or association or to groups within a welldefined neighborhood, community or rural district, and the members of their immediate family (but special limitations on the rights and privileges may be imposed on this latter group). Organizations of substantially the same group as the credit union membership may also be admitted, as well as other credit unions and their officers and committee members. Members leaving the sphere of operation of the association may leave in their shares and deposits if permitted by the bylaws, but may not thereafter borrow from it in amounts exceed ing these holdings. Joint accounts are permitted. The fiscal year shall end December 31 and the annual meeting must be held within the next 45 days. Special meetings may be called and held as specified in the bylaws. At all meetings each member shall have only one vote; proxy voting is prohibited except that member associations may cast their vote through a delegate. The board of directors (not less than 5 members), the credit com mittee (not less than 3), and the supervisory committee (3) are to be elected at the annual meeting for such terms as the bylaws provide. Officers—president, vice president, treasurer, and clerk (secre tary)—are to be elected by the directors from their own number. The board is authorized to act upon membership applications, fix bonds for all persons handling money, determine rates of interest on loans and deposits, declare dividends, fill vacancies in the board and credit committee, set maximum shares and loans allowed per member, and have charge of all investments other than loans. The treasurer is designated as the general manager of the associa tion. This office may be combined with that of the clerk. No director or committee member shall be compensated as such. The credit committee has supervision of all loans and it is to prepare the application form for loans, which must set forth the purpose for which the loan is desired, the security (if any) offered, and any other information required by the committee. For the granting of a loan, the unanimous approval of the committee members present (who must constitute a majority of the total committee) is required. Assignment of shares or deposits or the endorsement of a comaker may be regarded as security. The supervisory committee is required to examine the books at least quarterly, as well as annually, and submit a report to the annual 11 meeting and to such other meetings as it may regard as necessary. By unanimous vote it may suspend any director, officer, or committee member and call a membership meeting to take such action upon the suspension as the meeting may see fit. Loans may be made only for provident or productive purposes. No director, officer, or committee member may borrow in excess of his investment in the credit union nor act as endorser for any bor rower. Interest on loans is set at not over 1 percent per month on unpaid balances. No credit union may lend an amount exceeding 10 percent of its assets to another credit union. At the end of the fiscal year, 20 percent of net earnings, plus all entrance fees (25 cents each) and fines, are required to be set aside in a reserve fund until such fund equals 10 percent of the total out standing loans. Thereafter, only such amounts shall be set aside as are required to keep the fund at the 10-percent level. The reserve is to be used as a reserve against bad debts and losses. It may not be distributed except in case of liquidation of the association. From the net earnings remaining after appropriation for reserve the direc tors may declare a dividend, not to exceed 6 percent, on all shares outstanding at the end of the year, with proportional payments on shares which became paid up during the year. A member may withdraw from membership at any time, but notice may be required. A member may be expelled by two-thirds vote of a special meeting of members. Upon withdrawal or expulsion, the holdings of such persons plus any dividend or interest due, minus any amounts owed to the association, shall be paid as funds become available. For withdrawal of funds, notice of 60 days in case of shares and of 30 days in case of deposits may be required. Procedure for voluntary dissolution is specified, but requires that dissolution can take place only upon a four-fifths vote of the entire membership at a special meeting the purpose of which is set forth in the notice of the meeting. Credit unions formed under the act are exempt (as institutions for savings) from all taxation except on property owned and from any stock-transfer tax. Associations are required to file annual reports with the State Bank Examiner on or before January 20 of each year, upon penalty of fine of $5 for each day of delinquency. Their accounts are subject to audit by him (except that for associations with assets of less than $25,000 he may accept the audit of a certified accountant), at fees ranging from $25 upward. New York.—Chapter 145 codifies previous enactments, with a con siderable number of amendments. These amendments place a maxi mum of 15 upon the number of directors, permit the election of more than one vice president, and prohibit a member of the supervisory 12 committee from also servirg as a member of the board of directors. New members of a credit union which has been in existence for more than a year may nob vote until they have been shareholders for at least 90 days. Credit unions may no longer accept deposits. Divi dends from the previous year’s earnings may be declared by the board during the first 3 months of the year, but the directors are held jointly and severally liable for any amount of dividend voted which exceeds the amount available for dividend. Changes in loan procedure require endorsed notes when a mortgage on real estate is taken, pre vent the withdrawal of any shares pledged as security for loans (except those in excess of the amount of loan) unless approved by a majority of the credit committee, prohibit loans to another credit union in excess of 15 percent of the capital of either association, and limit the association’s total investment in shares of other credit unions to 25 percent of its capital. Credit unions, however, may not hereafter invest in obligations of certain school districts or rail roads, nor (except associations with assets of more than $3,000,000) in bonds of public utilities. The term “ surplus account” is to be used hereafter instead of “ guaranty fund.” Amounts in this account which exceed 20 percent of total liabilities may be transferred to undivided profits upon approval by the Superintendent of Banks. Associations are given permission to act as agents in selling money orders and travel checks. North Dakota.—Chapter 143 creates a State Credit Union Board, consisting of the Bank Examiner and two members with at least 3 years’ experience, chosen by the Governor from a list of 5 persons submitted by the State Credit Union League. South Carolina.—Act No. 134 exempts from annual license fees all credit unions of State or Federal employees and building and loan associations doing a “ strictly mutual business.” Texas.—Chapter 282 of the Acts of 1945 modifies the previous hmitation (15 percent of capital and surplus) on borrowings of credit unions by providing that such associations may borrow up to 50 percent of their combined capital and surplus if such loans are secured by Government securities owned by the association. The 2-year hmitation on credit-union loans was removed as regards those made under the Servicemen’s Readjustment Act of 1944. The annual required set-aside for the guaranty fund was reduced from 20 to 10 percent of net income. The annual meeting may increase this pro portion on recommendation of the directors or may decrease it when ever the fund equals or exceeds 10 percent of paid-in share capital. Dividends on shares are limited to 6 percent. Utah.—Chapter 15 codifies, under the title “ cooperative banks for personal credits,” the previous enactments which had consisted of scattered provisions in the corporation, banking, and small-loan laws 13 of the State. Only a few minor changes were obtained, but it was the opinion of a Utah Credit Union League official that desirable amendments would be facilitated in the future by having all the credit union provisions in one chapter. Wisconsin .—By chapter 58 the annual set-aside for the guaranty fund was changed from 20 percent of net income to 15 percent of gross income and the previous limitation on expenses (50 percent of income) was removed; the name of the auditing committee was changed to “ examining committee” and its required examinations reduced from once every 2 months to twice a year. Articles of in corporation may be amended, at a meeting called for the purpose, by a two-thirds vote of those present (instead of two-thirds of all mem bers). Voluntary dissolution is permitted upon unanimous vote of directors and two-thirds membership vote by ballot (previously, approval by two-thirds of entire membership present at meeting), provided not more than 10 members object. Yearly examinations are required to be made by the State Banking Commission. The examination fees charged by the commission, which had previously ranged from $5 to $50 or more were lowered to 25 cents per $100 of assets or the actual hourly cost of examination, whichever is less. New provisions added by chapter 58 require detailed annual reports to the Banking Commission by February 1, on penalty of fine of $1 to $10 per day of default; authorize the commission to prescribe bookkeeping and accounting methods, which must be followed by the credit unions on pain of fine not to exceed $10 per day; empower the commission to take over (subject to appeal) for liquidation any credit union violating the law, having its capital impaired, or operating in an unsound manner, and to prescribe the procedure in such cases; and specify procedures for the consolidation or merger of credit unions. Other enactments regulate the manner of termination of bonds of officers or employees of credit unions (ch. 228) and permit the destruc tion of obsolete records, upon written consent of the Banking Com mission (ch. 315). 14 Bureau o f L abor Statistics R eports on C ooperatives BULLETINS * No. 896. Nonprofit housing projects in the United States. (In press.) No. 890. Operation of consumers' cooperatives in 1945. Price 10 cents. No. 859. Developments in consumers' cooperative movement in 1945. Price 10 cents. No. 858. Organization and management of cooperative and mutual housing asso ciations. Price 20 cents. No. 850. Activities of credit unions in 1944. Price 5 cents. No. 843. Operations of consumers' cooperatives in 1944. Price 10 cents. No. 821. Developments in the consumers' cooperative movement in 1944. Price 10 cents. No. 770. Cooperative association in Europe and their possibilities for postwar reconstruction. Price 35 cents. No. 750. Directory of consumers' cooperatives in the United States, as of January 1, 1943. Price 15 cents. No. 740. Student cooperatives in the United States, 1941. Price 10 cents. No. 665. Organization and management of consumers' cooperatives and buying clubs. Price 15 cents. No. 606. Organization and management of cooperative oil associations. Price 5 cents. REPRINT PAMPHLETS 2 Serial No. R. 1483. The cooperative movement and the war. Serial No. R. 1660. International aspects of the cooperative movement. (Reprint * of a section of Part 1 of Bulletin No. 770.) Serial No. R. 1216. Operations of cooperative burial associations, 1939. Serial No. R. 671. Cooperative telephone associations. (Reprint from Bulletin No. 659.) 1 For sale by Superintendent of Documents at prices indicated. How to order publications: Address order to Superintendent of Documents, Government Printing Office, Washington 25, D. C., with remittance in check or money order; currency is sent at sender’s risk; postage stamps not acceptable. 2 Copies free on application to Bureau of Labor Statistics, Washington 25, D. C., as long as supply lasts. tl. S. GOVERNMENT PRINTING OFFICE: 19 47
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