Iowa Credit Union. Community Impact Report strength for today. vision for tomorrow.

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1 Iowa Credit Union Community Impact Report strength for today. vision for tomorrow.

2 The Credit Union Difference IMPROVING THE FINANCIAL LIVES OF IOWANS AND THE COMMUNITIES WE SERVE Credit unions have been serving Iowans for nearly a century. More than one million members benefit from our mission to serve them and their communities. 85 YEARS In 1934, President Franklin Roosevelt signed the Federal Credit Union OF SERVICE Act into law. It enabled consumers to form not-for-profit, cooperative financial institutions that they own and direct. This model allows credit unions to reinvest earnings for the benefit of all member-owners, not just a select group of stockholders like banks. Lower fees IOWANS WHO HAVE EXPERIENCED THE CREDIT UNION DIFFERENCE BENEFIT FROM: Higher savings rates Credit-builder programs Voting in board elections as member-owners Cooperative structure Money and volunteer time returned to their communities Convenient shared branching Surcharge-free ATMs $1.1 BILLION Iowa credit unions contributed IN 2014 in total economic output in Iowa spent by Iowa s credit unions EVERY $1 ADDS ANOTHER $0.77 of value to Iowa s economy The Economic Contribution of Iowa Credit Unions at an Iowa credit union FOR EVERY JOB supported in the rest of the Iowa economy THERE ARE 1.28 OTHER JOBS According to an Iowa State University economic report, Iowa credit unions contributed $1.1 billion in total economic output in Iowa in For every $1 spent operating the state s credit unions, there is $0.77 added elsewhere in Iowa s economy. In addition, every job at an Iowa credit union supports 1.28 other jobs elsewhere in Iowa s economy. Download the full report at HOW MUCH DO IOWA CREDIT UNIONS CONTRIBUTE TO IOWA As not-for-profit financial cooperatives, member-owned credit unions contribute more than a billion dollars to Iowa s economy. Shown below are the impacts of credit unions in Iowa, as calculated by economists at Iowa State University. Member dividends Small business loans Financial literacy programs JOBS CREATED INCOME GENERATED by Credit Union Jobs VALUE ADDED to Economy ECONOMIC OUTPUT Direct 3,247 $185,268,593 $316,765,394 $620,052,096 Indirect 2,499 $104,187,358 $134,050,599 $283,333,137 Induced 1,656 $ 59,713,672 $109,173,080 $192,020,146 TOTAL 7,402 $349,169,623 $559,989,073 $1,095,405,379 1 MILLION MEMBERS 3,247 TRUSTED $100 CREDIT UNION EMPLOYEES LOANS IN in direct fiinancial savings to members MILLION vs. what they would have paid at a bank This means: Total contributions from Iowa s Credit Unions = 7,402 jobs paying $ million and providing $1.1 billion in economic activity. 2 An input output model of the state of Iowa, as modified for this analysis, was used to calculate the multiplied through economic worth of the state s credit unions. 3 1 Savings includes $95/member and $180/household, in relation to what they would have paid at a bank according to CUNA The Benefits of Membership, December 2014.

3 Giving Back to Members and Communities At Iowa credit unions, we invest all of our resources back into the communities we serve. These activities rarely make headlines or the evening news, but that s not what drives us. Members do. The following are a few examples. 10 hours of personal financial education POSITIVE IMPACT on an individual s spending and saving habits for a lifetime Improving Financial Literacy National research shows that just 10 hours of personal financial education can significantly impact an individual s spending and savings habits for a lifetime. Iowa credit unions, through the Iowa Credit Union Foundation (ICUF), play a central role in improving the financial literacy of parents, young adults and children. Founded in 1995, ICUF has a mission to help Iowans build wealth, responsibility and independence, with the vision to eliminate poverty in the state of Iowa using three directives: 1. Be the champions of financial literacy. 2. Provide tools for sustainable small businesses. 3. Give all Iowans access to financial services. Thanks to financial support from credit unions and individuals, ICUF provides a variety of grants, scholarships and programs. Its flagship program to achieve these goals, the Credit Union Family Partnership Individual Development Account (IDA) Program, is key to moving working Iowans out of poverty. All money raised by ICUF directly supports ICUF s work across the state. Saving for the American Dream Jama and Amal are Somali refugees, parents to nine children and newly minted U.S. citizens. They became proud, first-time homeowners on May 31, 2015, thanks to Habitat for Humanity and ICUF s IDA Program. For the past two years, the couple worked to save their money at Village Credit Union, complete homeownership and financial education classes required by Habitat and the IDA Program, and meet sweat-equity requirements at their home s construction site. Thanks to their hard work, support from Habitat for Humanity and ICUF s IDA Program, the road from Somalia to Des Moines has led them to the driveway of their American dream. 5

4 Helping a Small Business Thrive Several years ago, Cornerstone Community Credit Union helped Alex at Allspice, an East Village (Des Moines) specialty store, with a member business loan. The founder, a foodie and ex-lawyer, tried unsuccessfully to get funding from several banks. A friend of his, and member of Cornerstone, suggested he check with the credit union to see if they could help. Cornerstone was able to support his dream with a large enough loan to get him into an East Village space, plus purchase enough inventory to get him up and running. His business really took off catering to restaurants and foodies, and laying the foundation of an online presence. When Alex unexpectedly passed away two years later, his wife attempted to run the business but knew she could not fulfill her late husband s dreams. Rory, one of the co-managers and part of the business s original team, wanted to buy the business. He knew it would be difficult without much collateral to put behind the loan. Like the founder, he checked at a bank with no results. So, Rory went to work with Cornerstone, who was able to get him into a Small Business Administration (SBA) loan with enough collateral to satisfy the requirements. Plus, the credit union took the risk on the remaining 25 percent of the loan, knowing the history of the business and the new owner s retailing skills. Allspice s East Village shop and online store are now thriving with an inventory of more than 300 different varieties of spices, oils and vinegars. This is a classic example of a credit union finding a creative way to help members enhance their financial lives and experience the dream of owning a business. Paving the Road to Homeownership Growing up in a tenement in the projects of Brooklyn, NY, Ermina long believed homeownership was out of reach. But a savings program at Dupaco Community Credit Union in Dubuque helped the 37-year-old woman turn that dream into a reality. Ermina is the latest successful participant in Dupaco MoneyMatch the account that matches your effort. The Dupaco MoneyMatch is an IDA that matches savings of a participant with a dollarfor-dollar grant from the Dupaco R.W. Hoefer Foundation or ICUF. The savings and matching funds are used to purchase a specific asset like a home, start a small business, pay for education or purchase a vehicle. Thanks to MoneyMatch, Ermina was able to stick with a savings plan for the first time and accumulate the funds she needed to make a down payment on her first house. Just one year and two days after enrolling in the program, Ermina purchased a three-bedroom ranch in Dubuque and became the first homeowner in her immediate family. Now Ermina and her three children have more stability, pride and hope for future opportunities. Next on her plan is saving for a family vacation, offering another avenue to show her children how the savings process works and, perhaps more important, what it represents. I m trying to give my children that example of having goals in life to work toward and experiencing the achievement that comes with that. Through opportunities that have been presented to me, I have been able to show them that it s not too late. And one day, they too can achieve whatever they want. Ermina 6 7

5 Providing Peace of Mind Mary, a 27 year-old Cedar Falls Community Credit Union (CFCCU) member, came to CFCCU because of its Beat-the-Bank auto loan campaign an effort to save members money. Mary obtained her original auto loan by financing through an auto dealership. A few months later, CFCCU notified Mary that she could drop her interest rate by 9.11% and save $5,188 in interest charges by bringing her auto loan to her member-owned credit union. Mary not only saved a substantial amount of money by bringing her loan to a credit union, but was also able to add a warranty, GAP protection and loss of life, disability and involuntary unemployment insurance and still have a lower monthly payment with a shorter term. She now has the peace of mind she needs for her family, thanks to her membership with a cooperative credit union. This is what makes my job so great. I enjoy making a difference in my members lives by saving them money it gives me real joy. Tina, loan officer Teaching Students Financial Responsibility For the past seven years, in partnership with Workplace Learning Connection, University of Iowa Community Credit Union (UICCU) has sponsored Financial Literacy Fairs in eastern Iowa. The fairs are the culmination of a year s worth of financial study and career exploration for junior high/middle school students to help improve their financial lives. Students come to the Fair after exploring careers based on their skills and interests, and have learned the importance of saving money, and how to keep a check registry and make a budget. From this exploration, students choose a career and receive a monthly paycheck for that career to use at the Financial Literacy Fair. Since 2009, the Financial Literacy Fair has grown from 450 students in Johnson County to include more than 3,600 in Washington, Linn, Iowa and Johnson Counties. UICCU is proud to give back to the community by helping teach students the value of financial responsibility as well as giving them 21st century skills. 8 9

6 Supporting Communities Through the Arts Iowa credit unions sponsor programs and events all over Iowa that enrich our communities and improve the quality of life where members live and work. For example, the Iowa Arts Festival is presented by Veridian Credit Union each June in Iowa City. As part of the festival s Children s Day, children are invited to the Veridian booth to design and color their own My Pet Piggy bank. Each child receiving a My Pet Piggy bank is eligible for the My Pet Piggy Savings Program, where Veridian encourages kids to save by matching the kids savings up to $10. Through partnerships like these, Iowans are not only able to enjoy arts and culture in their communities, but also are able to learn valuable financial literacy lessons as credit unions work to enhance the financial lives of Iowans. Building Members Credit Scores Tania, a Des Moines Metro Credit Union (DMMCU) member, always thought paying in cash would benefit her more than using a line of credit. Using cash, she felt she was being financially responsible by avoiding extra fees and circumventing the responsibility of owing someone money. However, when Tania wanted to refinance the first home her family ever owned, she quickly found her lack of a credit history created challenges. Tania turned to her credit union for help and DMMCU enrolled her in its Credit Builder Loan Program. Tania built a credit history and will soon refinance her home. Thanks to DMMCU, she now knows that having a strong credit history and credit score are benefits that can often outweigh paying in cash. Plus, she can now buy new furniture for her parents house to give them a little something back for all that they have done for her

7 THE ECONOMIC CONTRIBUTION OF IOWA CREDIT UNIONS JOBS Credit unions in Iowa employ more than 3,200 people with an estimated annual payroll of more than $185 million. LOCAL SPENDING In 2014, Iowa credit unions spent $283 million in goods and services, which supported 2,499 jobs and an additional $104.2 million in labor income. TAX REVENUE Credit unions continue to pay millions in taxes each year, including monies and credits, payroll, property, personal and state sales taxes. Phone: Toll-free: NW 118th Street, Des Moines, IA IowaCreditUnions.com