Successful but challenging year for Offaly Credit Union

Zoom has become all too familiar to us in our lives in recent times and once again it was the medium of choice for St. Brigid’s Credit Union this year as they held their 54th AGM virtually due to the ongoing public health considerations due to the Covid-19 pandemic.   

In his opening speech the Chair, Joe Flanagan welcomed all and stated that the credit union with, the continued and loyal support of the members had enjoyed another successful year in 2021 despite it being challenging one.  Membership had increased while at the same time over €11.3mn in loans were issued during the year to members.

He then focused on the closure of the Bank of Ireland branches in Clara, Moate and Banagher and the imminent exit of Ulster Bank and KBC from the Irish Market.  Joe told attendees of the new MYCU Current Account and Debit Mastercard® which launched this year.  This is a real alternative to the traditional banks and provides current and future members with the option to switch their current account and avail of the fully functional debit card, standing orders and direct debits.  With transparent fees, it is a very competitive offering whilst maintaining the local, community-based service people expect from their local credit union.

Joe was pleased to announce that the Board of Directors were proposing to return a dividend of 0.10% and a loan interest rebate of 12.5%.  Joe told the meeting that while investment income remains challenged, the income received from loans to our members has greatly contributed to our strong surplus this year.  This, along with our strong reserves and prudent management of costs has allowed the Board to make this proposal this year.  Therefore, we would strongly recommend that our members continue to borrow and support your local credit union.

Joe next told the meeting that the Death Benefit Insurance (DBI2) Scheme will continue for 2022.  However, the premium has increased to €48 per member.  Nevertheless, this is still just €0.92 per week for an excellent service and Joe encouraged all members to consider checking their availability and availing of this service.

This year St. Brigid’s Credit Union joined with other credit unions in Ireland in winning the CXi (Customer Experience Ireland) award for customer experience for the seventh consecutive year.  Irish credit unions are the only organisation in the world to achieve this.

Joe spoke of the challenge of negative interest rates which our banks are charging at present.  The rate is up to -0.75% on current and deposit accounts while longer term investments returns are at their lowest on record.  It is likely this low/negative interest rate environment will continue for the foreseeable future.  As a result, regrettably and necessarily, the Board had to introduce further saving restrictions and limits on cash withdrawals.  Without these restrictions, the increased charges from our banks may have affected the available surplus and future surpluses going forward.  This is continually under review and may be reversed in the future.      

Dave Coghlan from Hayes, Coghlan, Doolan, Auditors, provided a synopsis of the financials for the year and assured members that St. Brigid’s were operating successfully and in a prudent manner. The credit union continues to maintain strong reserves as are required in order to maintain stability and protect members savings. 

The credit committee report was circulated to Members in attendance beforehand.  During the year a total of 2,093 loans were issued in the four branches of St, Brigids Credit Union, totalling €11,300,818.  Joe Flanagan reminded those in attendance of the advantages of a credit union loan urged members to continue to borrow.  He highlighted the strong growth in the secured Home Loans with a 1st legal charge product during the year.  With a competitive interest rate of 4.5%, it is a viable option for people.  Members who are thinking of purchasing a property are asked to contact the staff in any branch for further details on these loans.   

The credit control committee report was circulated beforehand.  It gave a detailed report on the actions taken during the year on account in arrears.  Joe Flanagan urged all members to contact the office immediately if they get in difficulty with their repayments.  St. Brigid’s Credit Union always provides a listening ear and will work with members to find the best solution for them.  This was evident during the year with the impact of COVID-19 on members circumstances, said Joe.  

In the majority of cases satisfactory arrangements can be worked out to help the member through this period, with many who had availed of payment breaks now back on track. The key element is communication.  It can save the Credit Union time and money while at the same time preserving the members credit rating.  He went on to say that the Board of Directors are required to provide adequate provisioning for those loans in arrears.  Loans fall into arrears when members are not meeting the agreed repayments as detailed in the credit agreement.  He said “St Brigid’s Credit Union Ltd. is a member of the Central Credit Register (C.C.R), which monitors loan performance.  Any member who does not meet their repayments as agreed, risk adversely affecting their credit record with both this Credit Union and other financial institutions”.

The promotional committee report was again circulated beforehand.  He said that the overall function of the committee was to promote the credit union’s role in the communities they serve.  Sponsorship plays a key role in promoting the credit union while at the same time creating an opportunity to support local projects that depend on funding to function’ he said.  While COVID-19 had impacted on planned events, “we were still delighted to support a number of local organisations throughout 2021”, said Joe.   

Joe went on to say that “this year has seen further growth in our online presence.  Social media continues to be an important platform in which we engage with our members and the wider community through our Facebook and Instagram pages.  These, coupled with our website, CUOnline+ services and updated Mobile App allow members to interact with St. Brigid’s 24/7.  While online and mobile services are key, we want our members to know that there is still a personal presence in all of our branches, with staff on hand to help and discuss your financial needs with you in person.       

The Chair, in his closing speech thanked all the members who attended the virtual AGM and gave their views.  He encouraged members to continue to borrow and support their local credit union.  For families who suffered a bereavement during the year he offered his condolences and in particular to the family of Frank McLoughlin, who was a former member of the Board of Directors, who passed away recently.  Joe concluded the meeting by wishing members well and to stay safe.