1. Economic & CU Performance Trends

2. CU Trends by Asset Category…
What if…
➠ U.S. had bright economic future?
CU Trends by Asset Category…
➠ What can we do?

5. Chicken Vs Egg
 labor market =>  HH confidence =>  spending Or
 spending =>  business confidence =>  labor market

9. What if the U.S. was going to…
Experience rapid growth in job creation?
Experience rapid growth in disposable personal income?
Experience a capital investment boom?
Become 95% energy self-sufficient by 2020?
Reduce its trade deficit by half by 2020?
How can credit unions leverage this opportunity?

10. The U.S. is experiencing an energy revolution…
U.S. has become a net exporter of refined petroleum products for the first time since 1949
U.S. has also become the fastest growing oil and gas producer in the world

11. What’s driving this opportunity?
Natural Gas Revolution
Technology has created this price advantage
$3 MBTU for natural gas translates into a crude oil price of less than $20 per barrel
Represents an 80% savings

12. Broad Economic Implications…
Economic Growth
Employment
2.5 million jobs created by 2020
Capital Investment
Oil and gas exploration, drilling equipment, rail facilities, pipeline, refineries, processing and distribution
Consumer Spending

13. Broad economic implications…
Trade Balance
Reduced oil imports, increased exports of both petroleum and natural gas
Reduce trade deficit by half by 2020
Corporate Profits
Steep decline in energy cost will contribute significantly to profit margins, especially in the manufacturing sector
Government Finances
Accelerating tax revenues
Sales tax from retail sales
Personal and corporate tax receipts

14. Long-term impact on credit unions…
What can credit unions do to capitalize on this potential opportunity?
Special Deposit Accounts
Specialized Lending
Education
Equipment
Legal Assistance
Financial Planning

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