Defense Credit Union Council Update

Military Pre-ConferenceAFCPE

November 19, 2008

Presented byRoland “Arty” Arteaga

President/CEODefense Credit Union Council

““Serving Those Who Serve Our Country”Serving Those Who Serve Our Country”

“Serving Those Who Serve Our Country”

• Federal Regulator…responsible for the safety and soundness of federally insured credit unions• NCUA insures accounts in credit unions through the National Credit Union Share Insurance Fund…$250K per qualifying account • backed by full faith & credit of US Government• not one penny of insurance has ever been lost by a member of a federally insured credit union

“Serving Those Who Serve Our Country”

“Serving Those Who Serve Our Country”

DCUC

“Serving Those Who Serve Our Country”

““Kiplinger and BBB Military LineKiplinger and BBB Military Line Personal Finance Guide Personal Finance Guide

……Tailored for Our Nation’s Finest”Tailored for Our Nation’s Finest” **********************

• 20-page booklet offering financial advice…plus short videos• comprehensive guidance on diverse personal finance topics• booklet will be distributed free to more than 700,000 servicemen and women worldwide• Sponsors: Investor Protection Trust; DCUC; Clearpoint Credit Counseling

• a weekly one-hour program • airs Sundays at 3:00 p.m. Eastern on the Radio America network• airs on Armed Forces Radio & Television Service• host Paul Berry talks to consumer and money experts • DCUC will co-sponsor in 2009• presented by America’s Credit Unions and produced by CUNA

“Serving Those Who Serve Our Country”

“Serving Those Who Serve Our Country”

• Quarterly publication providing featured articles, consumer news • DCUC will coordinate and offer hard copies to PFMs

“Serving Those Who Serve Our Country”

• financial readiness starts at HFFRC…located on dcuc.org website• plethora of financial information on such topics as auto, credit, savings and investing• videos & audio (HFF Radio)• produced by sister trade CUNA and offered to DCUC• another excellent resource for PFMs, troops, and their families

“Serving Those Who Serve Our Country”

Military Credit Unions (including multiple group-primarily military)

Credit Union Asset Quality Trends

                           

60+ Day Dollar Delinquencies as a % of Loans Outstanding

                           

      Non-Mortgage Loans   Mortgage Loans   Member Business Loans

  All   Total Credt All Other   Total First All Other   Total AgriculturaAll

Other

Year Loan  Non-

Mortgage CardNon-

Mortgage   Mortgag Mortgag Mortgage   MBL MBLs MBLs

1997 0.84   1.09 0.00 1.30   0.28 0.25 0.33   0.21 0.42 0.19

1998 0.66   0.86 0.00 1.02   0.23 0.20 0.28   0.43 4.37 0.23

1999 0.53   0.71 0.86 0.68   0.18 0.15 0.23   0.13 2.51 0.04

2000 0.56   0.73 0.84 0.72   0.20 0.18 0.24   0.00 0.00 0.00

2001 0.67   0.90 0.93 0.89   0.23 0.16 0.37   0.10 0.00 0.10

2002 0.58   0.81 0.87 0.80   0.18 0.11 0.32   0.07 0.83 0.06

2003 0.55   0.78 0.87 0.76   0.17 0.11 0.34   0.34 0.00 0.34

2004 0.60   0.88 0.98 0.86   0.17 0.12 0.27   0.42 N/A N/A

2005 0.58   0.85 0.73 0.87   0.20 0.16 0.26   0.32 N/A N/A

2006 0.50   0.73 0.68 0.74   0.21 0.12 0.35   0.42 0.00 0.42

2007 0.69   0.94 1.01 0.92   0.42 0.23 0.75   0.40 5.28 0.38

Jun 08 0.74   0.96 1.10 0.93   0.52 0.29 0.98   0.26 0.00 0.26

Chargeoffs Net of Recoveries as a % of Loans Outstanding

                           

      Non-Mortgage Loans   Mortgage Loans   Member Business Loans

  All   Total Credi All Other   Total First All Other   Total Agricultura

All Ot

her

Year Loan   Non-Mortgag Card Non-Mortga   Mortgae Mortgag Mortgage   MBL MBLs MBLs

1997 0.76   1.08 0.00 1.29   0.04 0.03 0.06   0.02 0.28 0.00

1998 0.77   1.12 0.00 1.33   0.03 0.02 0.06   0.00 0.00 0.00

1999 0.56   0.83 1.92 0.63   0.03 0.01 0.07   0.19 0.20 0.19

2000 0.50   0.73 1.65 0.56   0.03 0.02 0.05   0.02 0.00 0.02

2001 0.56   0.85 1.72 0.69   0.02 0.01 0.05   0.01 0.00 0.01

2002 0.60   0.93 1.68 0.80   0.02 0.01 0.06   0.00 0.00 0.00

2003 0.60   0.96 1.75 0.83   0.02 0.00 0.06   0.08 0.07 0.08

2004 0.63   1.02 1.69 0.90   0.02 0.01 0.06   0.00 N/A N/A

2005 0.79   1.34 2.15 1.20   0.01 0.00 0.03   0.00 N/A N/A

2006 0.56   0.98 1.30 0.91   0.02 0.01 0.04   0.00 0.22 0.00

2007 0.59   1.07 1.49 0.97   0.07 0.00 0.18   0.01 0.00 0.01

Jun 08 0.84   1.41 2.18 1.22   0.27 0.02 0.80   0.04 0.00 0.04

                           

CU4 RealityCU4 Reality… … financial education for youthfinancial education for youth

DCUC SurveyDCUC Survey products/services; supportproducts/services; support

Joint Financial Readiness ChallengeJoint Financial Readiness Challenge DCUC stands ready to support DCUC stands ready to support

on-base credit unions stand ready to assiston-base credit unions stand ready to assist

an integral part of your teaman integral part of your team

Military Saves CampaignMilitary Saves Campaign year round effort with emphasis during Mil year round effort with emphasis during Mil saves weeksaves week

“Serving Those Who Serve Our Country”

“Serving Those Who Serve Our Country”

•Tough Times• New Strategies

“Serving Those Who Serve Our Country”

Financial Readiness

Support the Force

MissionReadiness

The Focus

Financial Education

Savings

Products &Services

The Summary

Environment and Economy Environment and Economy areare

in flux…in flux…VUCAVUCA Challenges prevail Challenges prevail Good news…Good news…we’re here; we’re here;

you’re hereyou’re here

““Serving Those Who Serve Our Country”Serving Those Who Serve Our Country”

QUESTIONS?QUESTIONS?