3,700 members and €16m in assets transfer to North Midlands Credit Union from Lanesboro Ballyleague CU

The annual general meeting of North Midlands Credit Union will hear that 3,700 members and €16m in assets transferred to North Midlands CU from the former Lanesboro Ballyleague CU during a Transfer of Engagements in October 2022.

The AGM takes place online on Wednesday, December 13 at 7pm and pre-registration is required (CLICK HERE for registration details).

Conor Isdell, Chairperson, North Midlands Credit Union, explained that following a review of the online AGMs over the past number of years the Board of Directors have decided that future general meetings will be held online as it is deemed more convenient and accessible to all members.

In his address, Mr Isdell highlights that North Midlands CU, for the year ended September 30, 2023, generated a surplus of €5.2m, an increase of €3.8m on the previous year. “For comparative purposes, if we adjust last year’s figures for the once off net exceptional cost of €1.8m relating to our share of the credit union group pension deficit, the comparable increase over last year would have been €2.0m.”

How Longford members can register for North Midlands Credit Union annual general meeting

Normal trading income was €13.8m for the year, an increase of €4.1m on last year. Mr Isdell said this was mainly driven by an increase in investment income of €3.1m due to better investment returns and an increase in loan interest earned of €1m due to an increased loan book.

The Chairperson pointed out that overall expenditure has increased from the previous year, with costs increasing across practically all areas of the Credit Union’s operations.

Members’ savings now stand at €419m, an increase of €37m over the 12 month period. Mr Isdell said this increase includes €14m from the former Lanesboro Ballyleague Credit Union which joined North Midlands Credit Union in a Transfer of Engagements in October 2022.

Loans to members increased by almost €14m during the year to a record high of €109m at September 30, 2023. Approximately €2m of this increase relates to the loans that transferred from Lanesboro Ballyleague Credit Union.

The Credit Union’s reserves were €62.5m at the 2023 year end.

Mr Isdell stressed that while the Credit Union continues to perform well in terms of membership, loan book and savings growth, it continues to face operational and financial pressures.

“On a positive note, our total assets have increased again this year, increasing by €44m, including €16m from the Lanesboro Ballyleague Transfer of Engagements. Savings grew strongly, particularly in the early part of the year. However, following the completion of the Ulster Bank and KBC withdrawal from the Irish banking sector, the rate of savings increase declined but nonetheless we still maintained a steady increase up to the year end.

“Increases in total assets require the Credit Union to put aside additional funds in reserves under Central Bank regulations. These regulations require credit unions to hold a specific regulatory reserve of at least 10% of total assets and total reserves ratios well above this figure. Following several years of strong asset growth and reducing reserve ratios, the Board of Directors is committed to rebuilding these ratios.”

Mr Isdell outlined that the Board is proposing a dividend rate of 0.25% on shares to be put before members at the AGM for approval. “This dividend, if approved, will see North Midlands CU distributing approximately €1m of surplus to members, with the remainder of the surplus being allocated to strengthen reserves.”

Lending is the core activity and main source of income for North Midlands CU. “Our suite of loan products now encompasses Greenify Loans, directed at members hoping to retrofit their homes to make them more energy efficient and environmentally friendly, agriculturally focused secured and unsecured Cultivate Loans, Reduced Rate College Loans, Home Mortgage Loans and our Standard Rate Personal Loan.

"We continue to increase the number of ways by which members can access these loans, with full online application and drawdown facilities available and proving very popular with members,” pointed out Mr Isdell.

He said North Midlands CU continues to invest surplus funds prudently and avail of investment opportunities as they arise.

“This is achieved by our Investment Committee working in consultation with our professional advisers, Davy. Investment returns which had been historically low over the last number of years saw a sharp increase during the year, as the ECB increased official interest rates to try to control inflation. The Credit Union was well placed to take advantage of these increases and investment income was strong as a result.”

As reported last year, Lanesboro Ballyleague Credit Union joined North Midlands Credit Union through a Transfer of Engagements process. The operational transfer took place in early October 2022 with approximately 3,700 members and net assets of €16m transferring. The transfer and the ongoing operations of this new branch are fully reflected in the financial statements for the current year.

Mr Isdell commented, “I would again like to welcome those members and hope that they avail of the products and services that we have to offer. We now operate from six locations across north Westmeath and Longford and members can use any of these branches to conduct their business. While there are no further transfers planned or proposed at present for North Midlands Credit Union, it is likely that restructuring in the credit union movement will continue.”

Mr Isdell said North Midlands CU had the privilege of having Minister Jennifer Carroll MacNeill, Minister of State at the Department of Finance with responsibility for Credit Unions, attend their Mullingar office in October 2023 to unveil a plaque to celebrate the 60 years of service that North Midlands CU has provided to its members.

He added, “On the day the Minister met in round table discussions with representatives from the Irish League of Credit Union, staff from the Department of Finance and from twelve neighbouring credit unions. The Minister outlined details of new legislation currently going through the Dáil, which is intended to create pathways for credit unions to collaborate and work together in providing more products and enhanced service to members in the coming years.”

North Midlands CU now provides full account access, electronic payments, new member onboarding and loan application to loan drawdown through our online platform. Mr Isdell remarked, “We provide fully functional personal current accounts with overdraft facilities and a Mastercard debit card. However, with all of these moves towards online services we want to assure members of our continued commitment to providing good quality personal service throughout our branch network.”

This year North Midlands CU Social and Cultural Committee supported 357 groups from its funding of €160,000 which was allocated for this purpose by the Board of Directors. This fund has been operating since 1998 and has to date provided close to €2.2 million to various organisations and groups.

The North Midlands CU Secondary Schools Fund, which provides funding to secondary schools for projects that are proposed by both the school management and the student body and are not funded by other agencies, distributed €45,000 to schools across their common bond last year

Mr Isdell welcomed Des McDermott to the Board of Directors. Des joined our Board following the Transfer of Engagements of Lanesboro Ballyleague Credit Union where he had served as a Director for a number of years.