This week’s New York Minute is packed with exciting news and valuable insights from the credit union world. We celebrate the achievements of our member credit unions, recognize the contributions of our staff with another edition of our spotlight series, and provide you with important updates on industry trends and upcoming opportunities. Get all the latest credit union news in our blog!
Staff Spotlight: Zach Ogden
This week, we’re shining the spotlight on Zach Ogden, the Association’s Director of Member Engagement. Zach shares with us the details of his professional journey, his passion for connecting with members, and the rewarding aspects of his role. He discusses the importance of collaboration and the dedication of the entire engagement team in creating impactful events and training opportunities for credit union professionals.
Zach also provides a glimpse into his life outside of work, sharing his love for golf and travel with his family. To learn more about his work at the Association, watch the full spotlight video below!
Sunmark Credit Union Names Jerilee Beaudoin as President & CEO
Jerilee Beaudoin has been appointed as the next President & CEO of Sunmark Credit Union. Her extensive experience, leadership, and commitment to Sunmark’s mission uniquely position her to guide the credit union into its next chapter of success and innovation.
Beaudoin brings a wealth of knowledge to the table having spent over 34 years in the financial services industry. More than half of her career has been focused on leadership roles, where she has undoubtedly honed her strategic thinking and ability to inspire and motivate teams. Her dedication to professional development is further evidenced by her MBA as well as her active participation in organizations like the Women’s President Organization, the Forum for Executive Women in Albany, and her service on the board of the Epilepsy Foundation of Northeastern New York, Inc., among others.
As the Sunmark community welcomes Beaudoin into her new role, we are confident that her leadership will drive innovation, foster collaboration, and ensure the credit union continues to thrive while serving the needs of its members.
Please join us in congratulating Jerilee and the Sunmark team!
SUMA Federal Credit Union Announces Strategic Leadership Transition
SUMA Federal Credit Union has announced a significant and exciting leadership transition designed to strengthen the organization and enhance its ability to serve members. This change went into effect on January 1, with Andrij G. Burchak being appointed to the role of Chief Executive Officer, as Roman G. Kozicky continues to serve as President. The decision to divide the roles of President and CEO leverages the strengths of both leaders and aims to drive innovation, improve member experiences, and accelerate strategic initiatives while maintaining the credit union’s strong community focus.
Andrij Burchak brings a wealth of experience with over 21 years of service on the SUMA FCU Board of Directors and four years as Executive Vice President of Governance, Planning & Development. His leadership experience in various organizations positions him well to lead the credit union into the future.
Roman Kozicky’s continued role as President ensures stability. His leadership has been instrumental in guiding SUMA FCU’s growth and success.
This leadership transition marks an exciting new chapter for SUMA FCU. By leveraging the combined strengths of Andrij and Roman, the credit union is poised to continue its tradition of delivering exceptional value to its members.
Please join us in congratulating Andrij, Roman, and the SUMA team!
Calling All Young Professionals: Join the CU4Kids at Children’s Hospitals Week
The CU4Kids program is offering a unique opportunity for young professionals in the credit union industry to attend Children’s Hospitals Week 2025! This annual network-wide conference for Children’s Miracle Network Hospitals brings partners and hospitals together to celebrate their impact and explore ways to further improve children’s health.
This opportunity is available to 10 young professionals who are passionate about corporate social responsibility and eager to learn more about the critical work of CMN Hospitals. The credit union professionals chosen will be able to network with industry peers, gain valuable insights, and experience the transformative impact of the CU4Kids program firsthand.
Flight, hotel, and registration will be fully covered for the selected participants. Applications are now open and will be accepted until January 31. Don’t miss this incredible opportunity to join the CU4Kids Crew at CHW 2025! Click below to apply.
2025 U.S. Economic Outlook And Its Potential Impact On Credit Unions
By Steve Rick, Chief Economist for TruStageTM
As we look ahead to 2025, the economic landscape presents a mixed but cautiously optimistic picture. Although overall growth is expected to be moderate, with a 2% gross domestic product (GDP) increase—slightly lower than the 2.4% growth this year—there are several key trends and economic factors to consider.
It should be noted that a change in presidential leadership could lead to economic shifts in 2025, driven by key policy decisions such as universal tariffs, immigration reform, tax cuts and deregulation. These policies could impact inflation, GDP and deficits, creating both opportunities for growth and challenges to economic stability.
Let’s explore the implications of inflation, interest rates, consumer behavior, and the labor market on the US economy and credit unions.
2025 inflation and interest rate predictions
The primary factor influencing the 2025 economic outlook is the persistence of high interest rates. Despite slight decreases, the Federal Reserve’s interest rates remain above the desired neutral level. These elevated rates will likely dampen economic growth, slowing overall activity to around 2% GDP growth in 2025. However, the higher rates are not expected to trigger a severe recession, as consumer spending remains resilient.
Inflationary pressures are expected to continue, though some relief may come through deregulation policies. Lowering regulatory burdens on small businesses could reduce costs, enhance productivity, and, over time, help curb inflation.
2025 Consumer Price Index (CPI) and real Gross Domestic Product (GDP) predictions
In terms of GDP, there’s a projected growth rate of 2% in 2025, slightly below this year’s 2.4%. This moderate growth aligns with long-term trends but reflects the restrictive impact of high interest rates. Consumer spending is expected to remain robust, supported by healthy debt-to-income ratios and rising real wages, which should continue to buoy confidence in the economy. However, high inflationary expectations and rising treasury yields will help keep pressure on consumer prices and economic activity.
Deregulation could play a key role in stimulating the economy by helping to reduce unnecessary compliance costs, particularly for small businesses. This, in turn, could help reduce inflationary pressures and increase overall productivity, leading to stronger GDP growth in the long run.
Unemployment and job market
The current unemployment rate stands at 4.1%, with part-time work on the rise while full-time job growth has plateaued. The tight labor market poses challenges for credit unions, particularly in relation to loan repayment. Many members face financial stress due to stagnant wages and high living costs, and part-time work may exacerbate this issue. Credit unions must stay alert to these trends and offer solutions that help accommodate the changing workforce.
Mortgage rates and housing market
The housing market is facing significant challenges, particularly due to rising mortgage rates. The 30-year mortgage rate has climbed to around 6.92%, and in some cases, even surpassed 7%. These increases have caused many potential homebuyers to adopt a wait-and-see approach, hoping for lower rates in the future.
This slowdown in housing activity could reduce mortgage loan growth, affecting credit unions’ lending volumes. However, with interest rates holding steady or continuing to rise, we may see further delays in housing transactions in the short term.
Impact on credit unions
Credit unions are facing a mixed outlook as they navigate the economic challenges of 2025. Loan growth is forecasted to reach around 6%, a slight rebound from this year’s 3%, but still below the long-run average of 7%. Higher interest rates will continue to limit lending activity, particularly for mortgages and personal loans. However, credit unions can help mitigate this by focusing on areas where they can provide more value, such as offering support to members dealing with financial strain.
Delinquencies and charge-offs are expected to remain a challenge, particularly with younger members struggling under the weight of high student debt and rising rent costs. Car insurance premiums, which have surged by 30%, are another strain, leading some members to reduce coverage and increasing the likelihood of repossessed vehicles being in poor condition. This trend could lead to more charge-offs for credit unions.
Supporting credit union members in 2025
To address these challenges, credit unions can explore various strategies to assist their members. Offering flexible loan products, such as payment programs for struggling borrowers, will be critical. Stay flexible in offering personalized solutions to members, helping them adjust to the changing job market and economic conditions.
Additionally, providing financial counseling services can help members manage their debt and make informed decisions. It will be important to support younger members, who are particularly vulnerable to financial stress, by offering tools to manage student debt and rising living costs.
The 2025 economic outlook suggests a year of moderate growth, tempered by high interest rates and inflationary pressures. While these challenges will certainly affect credit unions, there are opportunities for them to play a pivotal role in supporting their members. By offering flexible loan products, financial counseling, and proactive support programs, credit unions can help their members navigate these uncertain times.
The views expressed here are those of the author(s) and do not necessarily represent the views of TruStage.
TruStage™ is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wis.
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