Federal Credit Union Holdings - News

Coronavirus and the Economy

mmanning — Wed, 06 May 2020 20:11:07 +0000

Coronavirus and the Economy

COVID-19 pushed the economy into bear market territory faster than any other time in history. Our experts provide an in-depth analysis and market review of the first four months of 2020.

Paul Dickson, Director of Research
Mark Stevens, Chief Investment Officer

May 7, 2020

To call the first four months of 2020 “eventful” would be an understatement in the extreme. Arguably, there has never been a period of such economic and market volatility in modern times. More dramatic than the market sell-off at the end of the dot-com era and more rapid than the financial crisis of just over a decade ago, the COVID-19 crisis is one for the record books.

While initially slow to make much of an impact, by March, the pandemic led to a broad shutdown of the U.S. economy to contain the virus. Considered transitory in nature, it brought the economy to a standstill, and the ultimate consequences will depend on the evolution of the recovery and the rapidity with which the pandemic is brought to heel. An unprecedented response by the U.S. Congress and the Federal Reserve has staunched the potential downside impact, and additional efforts continue to be announced to bolster the economy. These are expected to set something of a floor to the downside and prime the economy for recovery once the crisis has passed. However, the pandemic is global, and as individual countries start to slow its growth through public policy and eventual treatment, continued vigilance will be necessary for quite some time.

Thanks to unprecedented government intervention in extending credit and backstopping the economy, a much deeper downturn and market collapse were averted. On March 27, Congress passed the CARES Act, a $2 trillion relief package designed to help displaced workers and small businesses. Components of the bill included:

Financial assistance to large companies and governments to provide loans to businesses and municipalities
Paycheck Protection Program (PPP) to provide temporary assistance to small businesses, preventing the need to lay off employees
Direct taxpayer benefits and the extension of unemployment benefits
Aid to hospitals and other healthcare providers
Tax incentives primarily related to payroll tax

Policymakers added another $483 billion to the PPP program on April 24, essentially replenishing the fund and expanding support to specific hospital and healthcare initiatives.
Rivaling the fiscal efforts of the government have been those of the Federal Reserve. In addition to lowering policy rates to near zero and engaging in a new round of Quantitative Easing (bond-buying), the Fed has launched (or is in the process of launching) several programs to support the credit markets which had essentially seized up. The domestic programs initiated by the Fed to date are:

Municipal Liquidity Facility: To provide direct financing for municipalities, easing the burden of interest payments and maturities
Main Street Lending Program: The terms of the facilities were only finalized on April 30, and the infrastructure is presently being created
Commercial Paper Funding Facility (CPFF): To restore normalcy to the Commercial Paper Market
Primary Dealer Credit Facility (PDCF): To provide liquidity to the bond market
Money Market Mutual Fund Liquidity Facility (MMLF): Broaden its program of support for the flow of credit to households and businesses
Primary Market Corporate Credit Facility (PMCCF): To provide loans in conjunction with Congress’ CARES Act
Secondary Market Corporate Credit Facility (SMCCF): To purchase bonds on the secondary market to provide liquidity
Term Asset-Backed Securities Loan Facility (TALF): To support the flow of credit to consumers and businesses
Paycheck Protection Program Liquidity Facility (PPPLF): Allows banks to use a portion of their PPP loans as collateral for loans from the Federal Reserve

In total, the Federal Reserve’s balance sheet has grown from $3.7 trillion in September 2019 to $6.6 trillion presently on a combination of quantitative easing and the new credit facilities.

At this time, most of the economy remains on lockdown, and most states stay in some form of “stay-at-home” and social distancing orders. As such, most of the economy remains at a standstill, with nearly 20 million Americans showing up on jobless rolls and tens of millions of others temporarily out of work, waiting out the crisis. Roughly 30 million Americans have filed initial unemployment claims since mid-March alone.

Because the recognition of the severity of the pandemic came late in the quarter, Q1 GDP growth showed an annualized contraction of only 4.8%. Estimates for growth in Q2 have varied wildly. According to market economists surveyed by Bloomberg, the median estimate for growth in the second quarter is a decline of 27.5%, but that includes such forecasts as those of Barclays and JP Morgan at a full 40% contraction and Citibank at a negative 27.7%. In most cases, these sharp declines are countered with a significant recovery in Q3, but estimates vary significantly. The median figure for Q3 is a 10% rate of growth, but Barclays estimates 25%, while UBS only expects 2.0% (following a 32% decline in Q2 so quite pessimistic). The broad range of outlooks is due to the uncertainty surrounding the pace and timing of the economy reopening, as well as any success or setbacks in confronting the pandemic itself. For the full calendar year, the median forecast for GDP is a decline of 4.2%, which would exceed the worst of the financial crisis.

Bond market recovers from a seizure in credit

Treasury yields began to drift lower early in 2020, and that decline quickly accelerated as the market reacted to the economic impact of COVID-19. Two emergency rate cuts, aggressive Fed purchases of Treasury securities and a general flight to safety pushed short-term yields to near zero. The yield on the 10-year Treasury dropped from 1.92% at the beginning of the year to .64% by April 30, well below the previous all-time low of 1.36% on July 8, 2016.

Amid the initial panic over the economic impact of the pandemic, credit markets were disrupted significantly. Corporate and municipal bond yields rose dramatically due to a rush to safety and liquidity on the part of market participants. Even very short-term markets were disrupted, leading to the Federal Reserve to intervene by cutting rates and buying short-term Treasury obligations to inject liquidity. Eventually, Congress would approve additional tools for the Fed to intervene and stabilize most of the bond market.

While the recession’s full extent is still being priced in, bond yields are now reflecting the impact on creditworthiness rather than that of illiquidity. The Bloomberg Barclays U.S. Intermediate Aggregate Index rallied 1.2% in April and posted a total return of 3.7% year-to-date. High Yield (-8.8%) and Municipal Bond (-1.9%) markets have suffered the worst in terms of performance. Junk bonds saw some recovery in April (4.5%) as the Fed’s support for the markets also included the ability to purchase High Yield ETFs. The Municipal Bond Market (-1.9%) continues to struggle as worries mount over the impact of the recession on public finance. There is a political fight over whether the Federal Government should provide additional aid to the states most impacted by the virus.

A bull and bear market in less than 35 days

Propelled by a remarkably resilient economy, the S&P 500 reached an all-time high of 3386.15 on February 19. Growing evidence that COVID-19 was now a worldwide pandemic then pushed markets lower at a record pace, entering bear market territory (down 20%) in only 16 trading days, the quickest bear market in the history of the S&P 500 Index. With social distancing the only defense, sporting events were canceled, schools closed, businesses shuttered and people were asked to remain at home. As it became clear that this new world would last months and not weeks, the sell-off accelerated, pushing the S&P 500 down 33.9% by March 23 from the all-time high.

The aggressive Fed response and the $2.2 trillion relief package helped spur a 30.17% rally from that March low, leaving this market with a unique distinction of experiencing a technical bear market (a decline of 20%), and bull market (a rise of 20%), all in 35 trading days. The momentum led to a 12.8% rally in April and left the S&P 500 Index down 9.3% for the year. Small-Cap stocks (Russell 2000) were down 21.1% in the first four months, 11.8% lower than the S&P 500. Investors typically shun risk in a bear market, and small caps weaker balance sheets and lower profitability make them riskier. Additionally, the bulk of the fiscal stimulus/relief was targeted to small businesses (500 employees or less). Small-cap companies that trade on an exchange seem to be stuck in the middle, too big to benefit fully from relief yet too small to have a fortress balance sheet.

Year-to-date, growth stocks (Russell 1000 Growth) outperformed value by a whopping 17.1%. While growth has outperformed for some time, it was especially evident during this bear market as Technology and Healthcare (traditional growth sectors) were expected to be less affected by the pandemic or the work-from-home directive in place for much of the nation.

Developed International (MSCI EAFE -17.8%) and Emerging market (MSCI EM -16.6%) equities generally underperformed the U.S. through April. U.S. fiscal and monetary support was far greater than the rest of the world and proved to be a significant boost to U.S. equity returns during the explosive rally since March 23.

The divergence in returns of the S&P 500 economic sectors gives a better picture of the anatomy of this sell-off. In addition to Technology and Healthcare, companies that provide essential products (consumer staples) or essential services (utilities) performed the best. Despite a 29.8% rally in April, Energy (-35.7%) was the worst-performing group year-to-date—not only hit by a halt in economic activity but also directly hurt by the price war between OPEC and Russia that pushed oil down as low as $11.57 per barrel. While the Consumer Discretionary sector (-2.7%) shows “better-than-market” returns, if you strip out Amazon, which is nearly 24% of the sector, the Consumer Discretionary sector would be down 14%. This seems more logical given that some of the areas hardest hit by the pandemic (retailers, restaurants and lodging) are part of this sector.

The recovery has begun, but the outlook remains uncertain

The longest bull market in history has unceremoniously ended—and in only three weeks nonetheless. Historically, recessions are cyclical in nature and are typically a result of ridding the economy of excesses. In 2008, a mortgage crisis and an over-leveraged financial system caused the recession. Unwinding the excesses and re-training a displaced workforce took years. Today, the recession is not cyclical or systemic, and it doesn’t require a redistribution of labor. This one is different, and the response, as well as the ultimate recovery, will also be different.

First, policy action this time around has been more aggressive. The Fed revisited its 2008 playbook by providing much-needed liquidity to financial markets. The difference this time is that they provided more of it, and did it much quicker. The same goes for fiscal policy. Policymakers have tripled the size of the financial support and took only a few weeks to do it. Also, fiscal support in 2020 doesn’t come with the same moral hazard. In 2008, taxpayers were bailing out over-leveraged financial institutions to avoid economic calamity. This time it is bailing out individuals/businesses due to no fault of their own. That makes future stimulus measures easier if necessary.

Second, according to Morningstar, Inc., roughly 70% of US GDP is from “essential” businesses (or suppliers to essential businesses) and have, at least in part, been exempt from executive orders. These include agriculture, utilities, construction, logistics, healthcare, public services and a large swath of manufacturing. The hardest-hit sectors (mining, retail, transportation, arts and entertainment, hotels and restaurants, and miscellaneous services) account for only 15% of GDP, and roughly half of these businesses were at least partially open. While only 15% of GDP, these sectors represent nearly 30% of U.S. employment, so that GDP could rebound much quicker than employment.

Lastly, the inevitable recovery will be based on when the economy is allowed to resume—not when it is able. The geographical footprint of the virus in the U.S. would lead one to believe that the resumption of economic activity will be gradual, just like the spread of the virus. This makes the timing and velocity of the recovery predicated on science and politics, and less on economic data. Measures to stem the spread of the pandemic have started to work, and the pace of new cases has begun to slow in the hardest-hit areas. Many economists believe the economy will be reopening by the third quarter and that a subsequent bounce in economic activity should be expected. With the growth rate of the virus slowing, there are reasons to be hopeful.

All of this makes a recovery quicker, and we see that in the markets already. During the 2008 Financial Crisis, it took more than a year for the markets to bottom, and then an additional 150 trading days (217 calendar days) to retrace 50% of the previous high. Since the February 19, 2020, peak, the market fell 34% in 24 trading sessions and retraced 50% of the downside within another 15 trading days.

The market is the ultimate barometer of investor sentiment. We have just experienced a powerful rally and stocks are “only” down 9.6% year-to-date. There is a certain level of optimism built into stock prices. While progress is evident, risks remain.

The pandemic could return, and many virologists believe there is a strong likelihood of this. While there are some 90 vaccines in the works and human trials have begun on a handful, we are still many months away from having one proven to work and even further from mass distribution. Broadly available testing and quarantining those infected will likely be a better litmus for when the economy can return to normal. Another wave of the pandemic is a concern if a resumption of economic activity proves premature.

The financial system remains fragile and dependent on central bank support. Given the size and scope of economic and financial market disruptions, the Fed may find it challenging to prevent stress in the riskier segments of the market. This will also make it harder to apply historical metrics to value markets and discriminate among companies. In such an environment, a focus less on individual securities and more on asset classes seem warranted. We recommend that investors use market volatility to improve the quality of their portfolios without changing their risk profile. Consider using the market decline to further diversify portfolios into other asset classes that offer significant long-term investment opportunities but have lagged U.S. large-cap equities.

The current pandemic is undoubtedly a serious turn of events, but regardless of the path that it takes, it will prove to have been a transitory development, the effects of which will fade with time. There may well be changes to public policy and certain supply chains in the wake of these events. Greater vigilance over infectious diseases is likely. Certain conditions may prove permanent and select industries will be more damaged than others. However, conditions will eventually ease, and the economy will ultimately recover.

For more insights on our current market:

Contact a Wealth Advisor Today

Products offered by Wealth Advisory Services, Heartland Retirement Plan Services, and Fiduciary and Trust not FDIC Insured, are not bank guaranteed and may lose value.

Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s investment portfolio. The investment return and principal value of investment securities will fluctuate based on a variety of factors, including, but not limited to, the type of investment, amount and timing of investments, changing market conditions, currency exchange differences, stability of financial and other markets, and diversification. The statements and opinions expressed in this article herein are those of the author as of the date of the article and are subject to change. Content and/or statistical data may be obtained from public sources and/or third party arrangements and is believed to be reliable. This information discusses general economic and market activity and is presented for informational purposes only and should not be construed as investment advice. Views and opinions expressed herein do not account for any specific investment objective, restrictions, and/or financial circumstances of any specific client. Investors are urged to consult with their financial advisors before buying or selling any securities.

News Coronavirus and the Economy

Federal Credit Union Holdings Contributes $100,000 in Response to COVID-19 Impacts

mmanning — Wed, 15 Apr 2020 18:07:28 +0000

Bank directs immediate funds for emergency services, emergency meals, grants for nonprofits, and family assistance programs

ALBUQUERQUE, N.M. (April 15, 2020) – Federal Credit Union Holdings& Trust announced today it will commit $100,000 to support five local community initiatives in response to the impacts of the COVID-19 crisis. The state-chartered bank will make significant contributions to the YMCA of Central New Mexico; Albuquerque Community Foundation/United Way of Central New Mexico – Emergency Action Fund; United Way of Santa Fe County – COVID-19 Emergency Response Fund; Santa Fe Community Foundation – COVID-19 Response Fund; and United Way of Eastern New Mexico. This latest community outreach follows earlier announcements about the bank’s comprehensive COVID-19 response measures centered around financial relief for clients and employee safety.

“This is an unprecedented time for families and businesses across New Mexico, and it has changed what it means to be a community,” said Greg Leyendecker, President and CEO of Federal Credit Union Holdings& Trust. “We recognize the urgent need to come together and help one another during this crisis. On behalf of our amazing team at Federal Credit Union Holdings& Trust, I’m honored to support these important community programs and relief efforts.”

$40,000 for Emergency Child Care Services and Youth and Family Programs
Federal Credit Union Holdings& Trust will contribute $40,000 to YMCA of Central New Mexico. Throughout the COVID-19 crisis, YMCA has offered emergency child care services to first responders and individuals providing essential services. Their programs and services aim to foster social responsibility, promote healthy living, and nurture the potential of children.

Social Responsibility – responding to communities’ most critical social needs through social services, volunteerism, education, training, and advocacy
Healthy Living – lifelong learning programs and family-centered activities such as sports and recreation, social networks, and health and fitness
Nurturing Potential – cultivating values and skills in today’s youth through child care, education and leadership, swim, sports and play, and camp

“When we were ordered to shut down operations, we really did not know what was next for our organization,” said YMCA President and CEO Roberto Aguirre. “But, as the YMCA has done for over 100 years within our community, we began to focus on meeting the needs of our community.”

$25,000 for Emergency Action Fund Serving Nonprofits
Federal Credit Union Holdings& Trust will donate $25,000 to the Albuquerque Community Foundation/United Way of Central New Mexico – Emergency Action Fund. The fund supports nonprofits organizations struggling with lost and non-recoverable revenue expenses and/or increased or changed programming due to the COVID-19 crisis. Contributions from Federal Credit Union Holdings& Trust and other local businesses will go into an unrestricted grant program that provides short-term funding to organizations in the Greater Albuquerque Area.

“Community Foundations were built for difficult times like this. As a convener and conduit between the for-profit and the nonprofit business communities, we are particularly proud of our ability to reach out to the organizations with the largest need and then to connect them to socially responsible companies who recognize the value of a robust community for all residents,” said Kelli Cooper, Vice President, Albuquerque Community Foundation.

$15,000 for Food, Employment, Housing, and Mental Health Resources
Individuals and families have been severely impacted by the health and economic crisis – physically, financially, and emotionally. Federal Credit Union Holdings& Trust will direct $15,000 for immediate support of the United Way of Santa Fe County – COVID-19 Emergency Response Fund for families, workers, health professionals, and first responders. UWSFC is providing remote learning and educational services to children enrolled at Kaune early learning center, as well as postpartum and first-born support to families, online and virtual social get-togethers, and support for in-home childcare providers.

“We are able to track, in real time, how the current situation is affecting young and vulnerable families in Santa Fe County,” said Abby Border, Vice President of Resource Development for UWSFC. “We have weekly contact with over 300 families enrolled for services and are directing them to food, employment, housing, and mental health resources as they navigate the instability of their futures. Stress is heighted for many families as they face new challenges every day.”

$10,000 to Address Critical Gaps in Food and Income Security
As the COVID-19 crisis persists, the demand for emergency meal services are surging. Federal Credit Union Holdings& Trust will donate $10,000 to the Santa Fe Community Foundation – COVID-19 Response Fund, which supports nonprofit organizations that provide daily meals for children and seniors impacted by school and senior center closures. The Response Fund will also provide funding for emergency health services, childcare, rent, and utilities.

“The Santa Fe Community Foundation is proud to partner with businesses in building a culture of community philanthropy – especially when collaboration and solidarity are what will enable us to strengthen our many communities at this critical time,” said William (Bill) Smith, President & CEO of the Santa Fe Community Foundation. “We are honored to work with our longtime partner Federal Credit Union Holdings& Trust, as well as fellow grantees, in the deployment of these significant dollars to nonprofits serving those most affected by COVID-19.”

$10,000 for Low-Income Families
Federal Credit Union Holdings& Trust will donate $10,000 to United Way of Eastern New Mexico to help meet the immediate critical needs of furloughed workers and low-income families.

“During this time, we have been connecting people with local resources through 211, assisting low-income families and the newly unemployed with rent and utility assistance, supporting our partner agencies as they adapt to the rapidly changing situation, and calling on our community to volunteer to help meet critical needs,” said Erinn Burch, Executive Director of UWENM.

Federal Credit Union Holdings& Trust Part of $1.2 Million Community Outreach Initiative
Heartland Financial USA, Inc., the holding company of Federal Credit Union Holdings& Trust and 10 other regional banks across the United States, is contributing a total of $1.2 million to COVID-19 community relief programs. The outreach is directed at supporting families and businesses across 12 states impacted by the crisis.

Banking Client Relief Actions
Since the beginning of the crisis, Federal Credit Union Holdings& Trust has enacted a multitude of programs aimed at providing financial relief for consumer, small business, and commercial clients. As an SBA-certified lender, Federal Credit Union Holdings& Trust is also working with business clients to utilize available CARES Act funding, such as the Paycheck Protection Program, Emergency Economic Injury Disaster Loans, and other programs. Please visit our COVID-19 Resource Center on our website for frequent updates.

Keeping Our Employee Team Safe
Federal Credit Union Holdings& Trust continues to adapt our operations to the evolving environment. This has included having much of our workforce working remotely from home, modifying bank lobby access, restricting employee travel and group meetings, and intensifying the cleaning regiments of all our locations. Federal Credit Union Holdings& Trust has also implemented a premium pay increase of 20% for its hourly customer-facing bank branch employees and customer service representatives in our call centers. The bank has also committed to cover all COVID-19 related testing and treatment costs for its primary healthcare plan participants.

About Heartland Financial USA, Inc.
Heartland Financial USA, Inc. is a diversified financial services company with assets of $13.2 billion. The company provides banking, mortgage, private client, investment and insurance services to individuals and businesses. Heartland currently has 114 banking locations serving 83 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, Missouri, Texas and California. Additional information about Heartland Financial USA, Inc. is available at www.htlf.com.

News Federal Credit Union Holdings& Trust Contributes $100,000 in Response to COVID-19 Impacts

Federal Credit Union Holdings provides relief and support to employees and customers in wake of COVID-19

kmajerus — Mon, 30 Mar 2020 18:06:31 +0000

Committed to protecting the health and well-being of employees,

customers and the communities we call home.

Albuquerque, NM – March 30, 2020 – Federal Credit Union Holdings& Trust announced relief and support for employees, consumers and businesses facing challenges due to the economic impact of COVID-19.

“We recognize that the emergence of COVID-19, and the dramatic steps we all must take to limit its spread, are creating financial and other challenges for our customers and communities,” said Greg Leyendecker, President, CEO of Federal Credit Union Holdings& Trust.

“Recent weeks have been incredibly challenging as we face the rapidly changing situation and COVID-19 altering our daily lives. While this is an unprecedented event, we are nevertheless prepared.”

Federal Credit Union Holdings& Trust is a strong financial institution and part of a consortium of community banks backed by the financial strength of Heartland Financial USA, Inc. Together, with Heartland and 10 other member banks, we have built a fortress balance sheet with a combined $13 billion in assets and strong liquidity.

Federal Credit Union Holdings& Trust’s full line of products and services are available. To protect our employees and customers, we are providing convenient drive-thru service at our branches, with in-person meetings available by appointment.

Customers are encouraged to use online and mobile banking services, which provide self-service banking 24/7/365. Our website is regularly updated with any changes to lobby and drive-thru availability and branch hours.

Consumer Relief Actions

ANNOUNCED March 23, 2020

We continue to closely monitor the impact of COVID-19 and may adjust our consumer relief programs as necessary to support our customers. Please visit the COVID-19 resource center on our website for frequent updates and look for email updates as well.

Through April 30, 2020

Monthly maintenance fees associated with consumer checking and savings accounts will be waived. We will waive monthly maintenance fees associated with maintaining minimum balances on consumer checking and savings accounts.
Foreign ATM fees assessed by Federal Credit Union Holdings& TRUST will be waived. Customers using other banks’ ATMs will not be assessed fees. Other banks and ATM operators may charge a fee and balance inquiry, withdrawal and international fees may apply.
CD early redemption fees will not be assessed. Customers who need to redeem a CD early will not be assessed an early redemption fee. We recognize that customers may need access to funds to take care of unexpected expenses or respond to changes caused by the current situation. Customers must contact us to redeem to any CDs.

Through July 1, 2020

Late fees on all consumer loans will be waived. The late fees on all consumer loans will be automatically waived for customers.
No payment will be required on consumer credit cards. Most credit card customers will automatically see a $0 minimum due on statements beginning on April 1, 2020. Customers who have auto-payment set up for their credit card account will need to cancel auto-payment for their minimum payment to reflect $0. Customers who cancel auto-payment will see a one month delay in statement changes.
Customers may elect payment deferral on consumer installment loans. Consumers may elect to defer all payments on consumer installment loans without penalty. This will not be done automatically for customers. Customers must visit our website and complete the e-form for installment loan deferrals.
Small businesses can modify their loan. Small business customers may choose to make interest-only payments. They will receive a direct communication advising them how to modify their existing loan.
Small businesses can skip a payment on their credit card. Most small business credit card customers will automatically see a $0 minimum due on statements beginning on April 1, 2020. Customers who have auto-payment set up for their credit card account will need to cancel auto-payment for their minimum payment to reflect $0. Customers who cancel auto-payment will see a one month delay in statement changes.

Keeping Employees Safe

Continuing to deliver excellent service to our customers and communities also means taking steps to protect the health and safety of our employees. We have:

directed all employees who can work from home to do so.
deep cleaned our locations to reduce the spread of germs.
committed to pay all employees at 100% through April 30, 2020. Employees who need time off because of illness, to care for a sick family member or to provide child care due to school or day care closings will be paid at their full rate.
restricted business travel, are monitoring personal travel, and canceled all in-person events and meetings.

News Federal Credit Union Holdings& Trust provides relief and support to employees and customers in wake of COVID-19

Parent Company of Federal Credit Union Holdings Recognized as a Forbes Best Bank in America for 2020

kmajerus — Thu, 27 Feb 2020 20:58:26 +0000

Albuquerque, NM, February 27, 2020 — Federal Credit Union Holdings& Trust, through its parent company, Heartland Financial USA, Inc. (NASDAQ:HTLF), has been named a “Forbes Best Bank 2020.”

In its annual review of the largest publicly traded banks and thrifts, Forbes ranked Heartland 40th among a nationwide group of 100 leading banking organizations with assets ranging from $9 billion to over $2 trillion.

“We are proud to be named among the Best Banks in America for 2020,” said Greg Leyendecker, President and CEO at Federal Credit Union Holdings& Trust. “As a community bank, what sets us apart is our strong commitment to our customers, combined with access to ‘big-bank’ products and services as part of Heartland.”

“The Forbes ranking underscores the benefits of our unique structure—the strength and capabilities of a big bank, combined with the personal touch and local decision-making of a community bank,” Leyendecker said. Federal Credit Union Holdings& Trust offers full-service branches where experts can meet all financial needs throughout the community.

To compile the rankings, Forbes used data collected by SNL Financial through the third quarter of 2019 on the country’s largest publicly traded banks and thrifts. The data covered ten metrics of financial health: return on average equity; net interest margin; nonperforming loans (NPLs) as a percentage of loans; nonperforming assets as percentage of assets; reserves as a percentage of NPLs; two capital ratios (Tier 1 and risk-based); and leverage ratio. Forbes generated its ranking based on an average of the individual ranks of each metric.

News Parent Company of Federal Credit Union Holdings& Trust Recognized as a Forbes Best Bank in America for 2020

Parent Company of FNB New Mexico, AimBank, Announces Plans to Merge

kfager — Tue, 11 Feb 2020 20:25:45 +0000

Levelland, Texas, February 11, 2020 — Levelland, TX-based AimBank, a wholly-owned subsidiary of AIM Bancshares, Inc. (“ABI”), and parent company of FNB New Mexico announced that they have entered into a definitive merger agreement pursuant to which ABI will be acquired by Heartland Financial USA, Inc. (“Heartland”) (NASDAQ: HTLF)

At the time of the closing of the acquisition, FNB New Mexico, a division of AimBank will merge into Heartland. The transaction is subject to approval by federal and state bank regulators and to customary closing conditions. The transaction is expected to close early in the third quarter of 2020. A systems conversion planned for the fourth quarter of 2020 at which time FNB New Mexico will merge their operations into Heartland’s New Mexico subsidiary, Federal Credit Union Holdings& Trust (NMBT).

With approximately $1.78 billion in total assets, $1.16 billion in net loans outstanding and $1.54 billion in deposits as of December 31, 2019, AimBank is a full-service community bank. FNB New Mexico serves customers from six branch offices in Northeastern New Mexico, located in Angel Fire, Clayton, Logan, Raton, Santa Rosa, and Tucumcari, New Mexico. AimBank serves customers from 19 offices in West Texas: Abilene, Amarillo, Dalhart, Farwell, Levelland, Littlefield, Lubbock, Miami, Midland, Muleshoe, Odessa, Pampa, Plains, Shamrock, Snyder, and Wolfforth, Texas. NMBT serves commercial businesses, professionals and individuals from 17 offices in Central, Eastern and Northern New Mexico. NMBT had approximately $1.76 billion in total assets as of December 31, 2019.

“We at Federal Credit Union Holdings& Trust are extremely excited about the opportunity to join forces with FNB New Mexico, a division of AimBank,” said R. Greg Leyendecker, President and CEO of Federal Credit Union Holdings& Trust. “We are very fortunate to be combining two talented teams of local commercial banking professionals and staff with an excellent knowledge of the communities and the clients they serve.”

“This merger provides great value for our customers as it strengthens our New Mexico locations as they pace forward for years to come. We remain committed to providing our customers with local bankers that can make local decisions,” said Scott L. Wade, Chairman and Chief Executive Officer of AimBank. “We are passionate about our promise to provide the best service to our customers, and are excited to become part of the Heartland Financial USA, Inc family.”

“We are pleased to be joining Federal Credit Union Holdings& Trust. The advantages of this expansion are very appealing as it provides additional banking locations throughout New Mexico, making this a great success for our customer base,” remarked Craig Reeves, North East New Mexico Regional President for FNB New Mexico, a Division of AimBank. “Federal Credit Union Holdings& Trust mirrors the same level of commitment to providing excellent customer service and supporting our local communities.”

Leyendecker, concluded, “We are increasing our presence and adding scale with a solid and experienced team dedicated to client service and success. We extend a warm welcome to the FNB New Mexico customers and employees.”

About New Mexico & Trust
Federal Credit Union Holdings& Trust, a wholly-owned subsidiary of Heartland, is a community bank Headquartered in Albuquerque, NM, with more than $1.7 billion in assets. NMBT operates 17 banking locations serving Central, Eastern and Northern New Mexico. They specialize in business lending and deposit services, and provides private client, investment, treasury management, card services, and complete electronic banking programs to individuals and businesses. The company was founded in 1998. Additional information about Federal Credit Union Holdings& Trust is available at www.NMB-T.com. NMBT is a member of the FDIC and an Equal Housing Lender.

About AimBank
AimBank, a wholly-owned subsidiary of AIM Bancshares, Inc., was originally chartered on September 19, 1925 as the First National Bank of Littlefield. In 2003, a group of bankers and investors purchased the Bank, renaming it “AimBank” and converting from a national chartered bank to a state-chartered bank. AimBank has continually grown from $13 million in assets in 2003 when current ownership took over, to approximately $1.8 billion in assets today. In addition, AimBank has expanded its presence into several markets, and now has 25 banking locations throughout West Texas and Northeastern New Mexico serving businesses and individuals. For more information, visit www.aim.bank. Member FDIC.

About Heartland Financial USA, Inc.
Heartland Financial USA, Inc. is a diversified financial services holding company with assets of approximately $13.2 billion. The company provides banking, mortgage, private client, investment, treasury management, card services, insurance and consumer finance services to individuals and businesses. Heartland currently has 115 banking locations serving 84 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, Missouri, Texas and California. Additional information about Heartland Financial USA, Inc. is available at www.htlf.com.

* * * * *

Forward-Looking Statements
This release, and future oral and written statements of Heartland, FB&T and AimBank and their management, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about FB&T’s acquisition of AimBank. These forward-looking statements may include statements about the benefits of the transaction, including anticipated future results, cost savings and accretion to earnings. Risks relating to the acquisition include the following: the businesses of AimBank and FB&T may not be combined successfully, or such combination may take longer than expected; the cost savings from the acquisition may be less than anticipated; credit and interest rate risks of AimBank may be greater than anticipated; and various difficulties associated with achieving the anticipated future financial results of FB&T after the transaction may occur.

In addition, this release, and future oral and written statements of Heartland and its management, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Heartland's and ABI’s financial condition, results of operations, plans, objectives, future performance and business. Although these forward-looking statements are based upon the beliefs, expectations and assumptions of Heartland's & ABI’s management, there are a number of factors, many of which are beyond the ability of management to control or predict, that could cause actual results to differ materially from those in its forward-looking statements. These factors, which are detailed in the risk factors in Heartland's Annual Report on Form 10-K filed with the Securities and Exchange Commission, contained, among others: (i) the strength of the local and national economy; (ii) the economic impact of past and any future terrorist threats and attacks and any acts of war; (iii) changes in state and federal laws, regulations and governmental policies as they impact the company's general business; (iv) changes in interest rates and prepayment rates of the company's assets; (v) increased competition in the financial services sector and the inability to attract new clients; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the potential impact of acquisitions and Heartland's ability to successfully integrate acquired banks; (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x) unexpected outcomes of existing or new litigation involving the company; and (xi) changes in accounting policies and practices. All statements in this release, including forward-looking statements, speak only as of the date they are made, and Heartland & ABI undertake no obligation to update any statement in light of new information or future events.

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News PARENT COMPANY OF FNB NEW MEXICO, AIMBANK, ANNOUNCES PLANS TO MERGE

Federal Credit Union Holdings Launches Online Small Business Account Opening

sgliva — Tue, 18 Jun 2019 15:17:14 +0000

Albuquerque, NM – May 9, 2019 – Federal Credit Union Holdings& Trust launched online account opening for small business deposit products. This complements its current online account opening for consumer deposit products. Customers can now open small business checking, savings and money market accounts online. In an industry where technology is quickly moving toward digital connectivity, small business online account opening is the next step in meeting customer needs.

“Small businesses are the heart and soul of our community, and we are excited to launch this service during Small Business Week,” said Greg Leyendecker, President and CEO, Federal Credit Union Holdings& Trust. “We understand small business owners are busy, and we’ve worked to make our online process convenient and easy to use.”

“Small business online account opening is only offered at a limited number of banks across the U.S.,” said Leyendecker. “The benefits of our local community banking model, coupled with the technology of online account opening for small businesses, gives us a unique advantage and fulfills our commitment to provide the Big Bank Punch, with the Community Bank Touch.”

“We believe customers expect us to be just as cutting edge as other high-tech companies such as Amazon or Apple,” said Leyendecker. “As an organization, we are committed to making our services available to customers when and where they want them. Having a complete, full service bank in your hand — that’s powerful.”

News Federal Credit Union Holdings& Trust Launches Online Small Business Account Opening

Federal Credit Union Holdings Introduces Security Brief

jtalarico — Thu, 18 Apr 2019 20:17:36 +0000

Albuquerque, NM – October 1, 2018 — The ever-changing landscape of cybercrime introduces new threats. Keeping up with cyber security best practices can be a little overwhelming, but the professionals at Federal Credit Union Holdings& Trust created a list of the top three steps businesses and individuals can take to protect themselves. “We thought it would be helpful to cut through the clutter, and establish the most critical steps toward protecting families and businesses against cybercrime,” Greg Leyendecker, President and CEO of Federal Credit Union Holdings& Trust, said.

While the cyber security industry has been making great strides, cyber criminals are becoming more creative and have diversified their attack strategies. For more than a decade, complex and sophisticated cybercrime organizations focused on large organizations. Today, cyber criminals are increasingly attacking small businesses and consumers with greater frequency, which means we all must take steps to safeguard our information.

“We invest in security technology and education 365 days a year,” Greg Leyendecker said. “The first step in protecting your family and/or business is cyber awareness,” Greg Leyendecker said. Federal Credit Union Holdings& Trust introduced “Security Brief” for business and for families.

SECURITY BRIEF FOR BUSINESS

Make sure you’re paying an actual vendor. Always verify payment requests submitted to your business. Verify with a second individual or with the requestor, but through a different channel than the one used to submit the request. Always use a phone number on file, not a phone number contained in the request. Never feel pressured to initiate a payment without verification. It is safer to take a little longer and be sure the payment is legitimate, than to be quick and lose thousands of dollars to fraud. Always verify any change to vendor payment instructions (i.e., bank name or account number) and use dual control—establish a dual control requirement for all outgoing ACH or wire payments.
Reduce payment fraud risks by separation of Accounts Payable (AP) duties and account segregation. Once your process has the checks and balances you need to avoid duplicate and/or unauthorized payments, talk to your Treasury Management team to evaluate today’s tools and technology that not only help reduce payment fraud, but can also help you automate some of the AP process to save time and money.
Require multi-factor authentication when receiving initial payment information or a request to change payment information.

SECURITY BRIEF AT HOME
1. Use strong passwords and change them at least once per quarter. DO NOT use the same password for multiple log ins. Use multi-factor authentication whenever it’s available.

2. Avoid unknown links or attachments in email. When you receive a request for payment via email, review it carefully and if there is any doubt, contact the vendor via the phone number listed on a previous invoice or look up their number online to verify. Fraudsters can change any company’s email address by adding a letter, a period or another character that people may miss if they are not aware of the risk of fraud.

3. Use anti-virus software. Install and maintain current anti-virus software on all devices, including mobile phones and tablets.

For more information about cyber security, visit our Fraud Center.

News Federal Credit Union Holdings& Trust Introduces Security Brief