Hartford Business Journal

www.HartfordBusiness.com December 22, 2014 • Hartford Business Journal 41 Industry Focus E c o n o m i c F o r E c a s t october 13 CT credit unions battle declining membership Following the 2008 financial crisis, U.S. credit unions enjoyed a spike in member- ship, marketing themselves as a much more stable, reliable, and consumer-friendly alternative to big banks, which took the brunt of the criticism and blame for drawing the country into a prolonged recession. Connecticut's nonprofit credit cooperatives never really experienced significant membership gains after the crisis, but more recently their challenge has been hang- ing on to customers. The state's 115-federally insured credit unions lost 8,100 members, or 1 percent of their total customer base at the end of the second quarter, which represented the steepest quarterly decline the industry has seen since the first quarter of 2010, ac- cording to data from the National Credit Union Administration (NCUA). Since September 2012, Connecticut credit unions shed about 20,000 members; the industry has 851,664 members today compared to 885,831 in December 2009, NCUA data shows. Connecticut's decline came despite U.S. credit unions growing their membership base nearly 2 percent during the first half of this year. SepteMber 15 More lenders choosing CT's nimble bank overseer The recent wave of applications from a trio of Connecticut financial institutions seeking to swap their federal operating charters for state ones could signal a trend as community banks and credit unions look for ways to trim regulatory costs, experts say. On Aug. 27, Savings Institute Bank & Trust of Windham, with $1.4 billion in assets, said it was converting to a state charter, in part, to dodge some of the escalating costs of satisfying Dodd-Frank bank- and consumer-protection regulations. That same day, Putnam Bank, a $453 million-asset mutual savings lender in the state's northeast corner, filed to convert its federal charter to a state one. Two days later, $1.4 billion-asset American Eagle Federal Credit Union in East Hartford also declared its pursuit of a state charter. Connecticut's appeal as a financial regulator is glossier than ever, officials say, particularly after the state eliminated the sales tax on credit unions last spring. auguSt 25 Crowdfunding leaves CT startups behind It's been nearly a year since companies selling private stakes to outside investors could legally advertise their capital needs on websites, radio and other media. But securities filings and other data reviewed by the Hartford Business Journal reveal the Internet and other marketing platforms — so far — haven't magically produced capital fledgling startups are seeking. While several big Connecticut insurance and investment firms have filed regula- tory papers with the U.S. Securities & Exchange Commission claiming the new ex- emption that allows them to advertise their capital needs, few appear to be doing it. And crowdfunding websites — which match startups with investors via the inter- net — have largely not delivered, at least for the several dozen Connecticut compa- nies that have solicited online investments within the last year. Meanwhile, startups in the technology hubs of Silicon Valley and New York City have seen far more success raising funds online. For more info about ways the Hartford Business Journal can help you reach your target audience, contact Jessica Baker at 860-236-9998 x122 or jbaker@HartfordBusiness.com In Print. Online. In Person. www.HartfordBusiness.com Delivering Business. Our readers respond to our advertisers' marketing messages. We will deliver your marketing message to the C-suite and the corner office. In the past 12 months, what actions, if any, have you taken as a result of reading Hartford Business Journal? (% of Total Respondents) 55% Contacted a company because of an advertisement in Hartford Business Journal 65% Discussed an item you saw in Hartford Business Journal with others 57% Passed an item along or refer information to a business associate/client 25% Visited www.HartfordBusiness.com to send a link of an item to someone 33% Saved entire issue 33% Saved items of interest 03% None of these 55% Response Source: Circulation Verification Council. Publication audit report and reader survey for HBJ. July 1, 2013-March 31, 2014

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