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Research Outline

Prepared for Ben M. | Delivered May 7, 2020

ROI Veridian Credit Union

Goals

To determine Veridian Credit Unions return on investment, our preliminary research will proivde data regarding the approximate amount of revenue generated from every $1M held on deposit.

Early Findings

  • The annual report for VCU Year End 2019 is not available; however, the annual report for Veridian Credit Union year End 2018 indicates cash and cash equivalents at $76.4 million with CDs at $16.3 million; interest made on loans at $144.2 million, investment securities at $3.5 million, and CD and other investments at $1.8 million.
  • Banks also use depositors’ money to make loans- the amount of interest the banks collect on the loans is the banks’ profit or ROI.
  • Financial products for the maintenance of checking accounts, investment accounts, and credit cards provide banks and credit unions with additional means to earn profits.
  •  Auto Loan rates for VCU Loyalty APR* -2018 and newer model years as low as 2.69% , 2017 model year as low as 2.94% , 2016 model year as low as 3.19% , 2015 model year as low as 3.19% , 2014 model year as low as 3.49% , 2013 model year as low as 3.34% (also for older model years).
  • Home Equity Loans: 5 Year (60 mos.) APR* 3.45% Loyalty APR* 3.20%, 10 and Done APR*3.99% Loyalty APR* 3.74%, 10 Year (120 mos.) APR* 4.10% Loyalty APR* 3.85%, 15 Year (180 mos.) APR* 4.60%, Loyalty APR* 4.35%, 20 Year (240 mos.) APR* 5.30% Loyalty APR* 5.05%.
  • Fixed Home Equity Line of Credit has a 25-year term with a fixed rate for the first 5 or 10 years and a variable rate after: 5 Year (60 mos.) APR* 3.35%Loyalty APR* 3.10% , 10 Year (120 mos.) APR* 4.00% Loyalty APR* 3.75% (Maximum APR is 21%. Add 1.0-2.5% to interest rate for loans with loan-to-value ratio over 80%).
  • Home Improvement Secured Loans- collateral financed up to 133% of home's value, up to $250,000): 5-yr APR* 5.95% Loyalty APR* 5.70%, 10-yr (120 mos.) APR* 6.35% Loyalty APR* 6.10%, 15-yr (180 mos.) APR * 6.35%, Loyalty APR* 6.10%.
  • Home Improvement Unsecured Loans Level I ($2,000 - $10,000): 5-yr (60 mos.) APR* 8.00% Loyalty APR* 7.75%, 10-yr (120 mos.) APR* 8.50%, Loyalty APR* 8.25%. Level II ($10,001 - $25,000) 5-yr (60 months) APR* 7.50% Loyalty APR* 7.25%, 10-yr (120 mos.) APR* 8.00% Loyalty APR* 7.75%, 15-yr (180 mos.) APR* 8.50% Loyalty APR* 8.25%.
  •  Credit Card rates: Visa Platinum Rewards Credit Card 9.15% Variable APR, Visa Platinum Credit Card 8.15% Variable APR , Business Platinum Rewards Credit Card 11.75% APR.
  •  Fixed Mortgage Loans have a stable interest rate for the life of the loan (45-day rate locks for single-family, owner-occupied purchases or rate/term refinancing with escrow): 30-yr $300,000 APR* 3.125% Loyalty APR* 3.146%, $200,000 APR* 3.250% Loyalty APR* 3.282%, $100,000 APR* 3.375% Loyalty APR* 3.433%.
  • Mortgage Loans with 15-Year Term : $300,000 APR* 2.750% Loyalty APR* 2.788%, $200,000 APR* 2.750% Loyalty APR* 2.807%, $100,000 APR* 3.125%, Loyalty APR 3.235%.
  • Mortgage Loans for 10 & Done : 10-Year Fixed Home Equity APR* 3.99% Loyalty APR* 3.74%.
  •  Adjustable Mortgage Loans have an initial period with a fixed rate, then a variable rate that can increase or decrease annually for the rest of the 30-year term: 5 years APR* 3.250% Loyalty APR* 4.280%, 7 years APR* 3.500% Loyalty APR* 4.361%, 10 years APR* 3.750% Loyalty APR* 4.233%.
  • Other Mortgages : Veterans Affairs (VA) Fixed-Rate Mortgage 30 years APR* 2.750% Loyalty APR* 2.847%, USDA Rural Development Fixed-Rate Mortgage 30 years APR* 2.750% Loyalty APR* 3.441%.
  •  Construction and Lot Loans feature a one-time closing: 15-Year Fixed Mortgage, 1-Year Lot Loan Balloon $100,000 APR* 2.750% Loyalty APR* 3.544% and $300,000 APR* 3.000% Loyalty APR* 3.295%, 10-Year ARM (30-year term) $300,000 APR* 4.000%, Loyalty APR* 4.467%, 10-Year ARM (30-year term), 1 discount point $300,000 APR* 3.500%, Loyalty APR* 4.274%.
  •  Other Personal Loans: depending on the length of the loan, average ROI for non-banking customer is between APR* 7.50% up to 9.50% with Loyalty APR* 7.25% up to 9.25%.
  •  Premier Personal Loans have 60-month to 120-month terms at APR* 7.50% - 8.00% and Loyalty APR* 7.25%-7.75%.
  •  Personal Loans have 12- month to 60 month terms with APR* 7.50%- 10.50% and Loyalty APR* 7.25%- 10.25.
  •  C.D. Secured (60 months, variable rate) APR* 2% Above Loyalty APR* 1.75% Above.
  •  Share Secured (60 months, variable rate) APR* 2% Above Loyalty APR* 1.75% Above.
  •  Payday Alternative Loan (6 months, $1000 max) APR* 19% and Payday Alternative Loan (6 months, $1000 max) APR* 21% .
  •  Consumer Goods loans: New Fixed 36 months (20% down payment) APR* 6.25% Loyalty APR* 6.00%, New Fixed 36 months (0% down payment) APR* 7.25% Loyalty APR* 7.00%, New Fixed 48 months (20% down payment) APR* 7.25% Loyalty APR* 7.00%, New Fixed 48 months (0% down payment) APR* 8.25% Loyalty APR* 8.00%, Used Fixed 24 months (20% down payment) APR* 7.75% Loyalty APR* 7.50%, Used Fixed 24 months (0% down payment) APR* 8.75% Loyalty APR* 8.50%, Used Fixed 36 months (20% down payment) APR* 8.75% Loyalty APR* 8.50% .
  •  Motor Homes, Travel Trailers, and Boats : Loan amounts from $5000 up to $150,000+ beginning at APR* 4.29% up to 6.79 and Loyalty APR* at 4.04% up to 6.54% for Fixed up to 60 months (invoice or trade value), Fixed up to 72 months (invoice or trade value), Fixed up to 96 months (invoice or trade value), Max Term 120 months, fixed for 72 months (invoice or trade value), and Max Term 180 months, fixed for 72 months (invoice or trade value).