Credit Union Journal articles from February 2004

Credit Union Journal archives from February 2004

Columbia Ordered To Vote Again: Group Fighting Conversion Wins Victory.
February 2, 2004... Members of Columbia Credit Union are apparently going to re-vote their controversial ballot to convert to a mutual savings bank, after state regulators ordered credit union officials last week to resolve the conflict with dissident members...

Leagues, Agency Debate Response To Conversions.
February 2, 2004... While hot topics like banker attacks on the credit union tax exemption were the headliners at the AACUL Annual Meeting here, issues related to the number of credit unions seeking to convert to bank charters reared its head, as well. NCUA...

3-Pronged Strategy Advocated For Battling State Tax Efforts.
February 2, 2004... Credit unions must win the hearts and minds of voters and lawmakers alike if they expect to preserve the tax exemption at the state level. And doing that, according to state leagues that have already faced such fights, is going to require CUs...

Ideas For Fighting Predators Shared.
February 2, 2004... More than 200 credit union officials turned out here last week seeking ways to beat payday lenders. The group was attending a Partnering and Leadership Successes (PALS) workshop put together by NCUA board member Debbie Matz, and speakers...

ON DEADLINE.
February 2, 2004... Bid Made To Salvage Ailing Bankruptcy Bill WASHINGTON-The House overwhelmingly voted to attach the controversial bankruptcy reform bill to a separate bill reauthorizing Chapter 12, farm bankruptcies, in a desperate bid to finally move the...

Report Examines What Drives CU Pricing Decisions.
February 2, 2004... What affect on loan and deposit pricing does a credit union have on a market? A new study from the Filene Research Institute seeks to quantify that effect, along with answering other questions, such as how does competition in local...

United Airlines ECU Changes Its Name.
February 2, 2004... The nation's sixth-largest credit union has a new name. Alliant Credit Union is the new name for the $4.5-billion United Airlines Employees Credit Union. The name change, along with a new logo and branding initiative, is the first in the...

Worth Noting.
February 2, 2004... Beall Named Md. League CEO COLUMBIA, Md.-The Maryland Credit Union League (MCUL) has named Mike Beall as its new president/CEO. Beall had been serving as manager of governmental affairs and partnerships in the Washington, D.C. office of...

A 68-Year-Old That's Just Not Acting Its Age Anymore.
February 2, 2004... It's not often you find many 68-year-olds looking to change their name. After all, they're interacting with the grandchildren and even the great grandchildren of those who knew them when they were young and just starting out. I mean, what...

No-Payment Auto Offer Gets Lukewarm Response At Sale.
February 2, 2004... Despite low response to a deferred payment promotion at previous events, credit unions in Long Island are giving it one more try during a car sale. Joanne Steigerwald, VP of operations at People's Alliance FCU in Hauppauge, N.Y., said her...

Youth Package Offering Plastic Expected To Grow Quickly.
February 2, 2004... Riverside County's Credit Union is expecting to see a significant increase in sign-ups for a product aimed at younger members, which includes a Visa check card, now that it is promoting it. RCCU's "MyMoney Youth Account" includes a savings...

Product & Service.
February 2, 2004... Bouchard Acquires McElroy Comm. SACRAMENTO, Calif.-Bouchard Marketing, which works with numerous credit union clients, has acquired McElroy Communications, a full-service PR and public affairs agency, and is changing its name to Bouchard...

Dollar Sets Membership Goal For '05.
February 2, 2004... NCUA Chairman Dennis Dollar said that by 2005 he would like to see credit union membership be made available to all 90-million Americans who live in low-income neighborhoods. Dollar set the goal in remarks before the American Association of...

Matz Outlines 3 Challenges She Sees Credit Unions Facing During New Year.
February 2, 2004... The three major challenges credit unions will face in 2004 are the threat of taxation, interest rate risk, and the disappearance of small credit unions, according to NCUA Board Member Deborah Matz. Speaking before the American Association...

NJCUL Unveils Online Resource.
February 2, 2004... The New Jersey league is offering a new Governmental Affairs Online Action Center accessible 24/7 through the NJCUL web site, www.njcul.org to its member CUs. The site offers info on pending legislative issues and can be used to research...

Product & Service.
February 2, 2004... LCS Signs 60th For ICMS Solution MINNEAPOLIS-Loss Control Solutions said that Arizona FCU has become the 60th client to sign on to use its Investigation Case Management System (ICMS). The product manages workload and data for loss...

Group Sees More Growth In CU Lending In 2004.
February 2, 2004... The massive inflow of savings that has flooded credit unions the past few years has apparently slowed to a trickle, in some cases, it has even reversed itself to be a net outflow. Credit unions around the country are reporting the...

USPS Puts Out RFP For Depository Services.
February 2, 2004... The U.S. Postal Service said it is accepting bids from federally insured banks and credit unions to provide depository services for its Arizona, Hawaii, Nevada-Sierra and Salt Lake City districts. The service will cover deposits for 1,066 post...

'Smart Commute' Program Expanding To Atlanta.
February 2, 2004... Fannie Mae said last week it is now offering its "Smart Commute" program to homeowners in the Atlanta area. The program allows people to qualify for larger mortgages if they buy homes near mass transit lines and promise to use them. Several...

People.
February 2, 2004... Matadors Community Credit Union, Northridge, Calif., named Joni Myatt assistant vice president of member services. First American CU, Beloit, Wis., named Brian Nichols chief financial officer. Security Service FCU, San Antonio, Texas,...

Analysis Examines Card Performance During 2003.
February 2, 2004... R.K. Hammer, an investment banker and credit card portfolio brokerage, has released its model for 2003 credit card industry earnings and noted the industry showed the highest ROA since 1988. Pre-tax ROA for prime and super-prime portfolios...

Redstone FCU First CU To Sign Up For 'VISA Extras'.
February 2, 2004... Visa USA has introduced "Visa Extras," and Redstone FCU in Huntsville, Ala., has become the first credit union to participate. The new payment card rewards program "could help Visa member financial institutions deliver rewards...

Community Page.
February 2, 2004... CEFCU Awards 7 Scholarships PEORIA, Ill.-CEFCU awarded $4,000 Member Appreciation Scholarships to Melissa Baker, Douglas Cooper, Jeffrey Heigert, Phillip Kunz, Jeron Sanders, Amanda Vicary, and Laura Wiggers. Pinellas FCU Participates...

Other Conversion News.
February 2, 2004... Two CUs File Papers Seeking Initial Public Offering WALL STREET-Two more former credit unions have filed papers to sell out to investors through initial public offerings, bringing the total of credit union converts gone public to nine. Both...

Seven-Seventeen OK'd To Expand.
February 2, 2004... The Ohio Division of Financial Institutions has approved expansion by $523-million Seven Seventeen Credit Union here into Canton, Jackson, Lake, Nimishillen, and Plain Townships. "We occasionally had to turn people down for membership...

Student Teller Thwarts Scammer.
February 2, 2004... A student working in a student-run branch of Mission FCU located inside Hoover High School thwarted a scammer attempting to cash a fraudulent check. MFCU, which identified the junior only as "Jessica," said a white female between 30 and 45 yers...

NCUA Finds Irregularities Related To Conversion Attempt.
February 9, 2004... The embattled board of Columbia CU was preparing last week to put an end to its controversial efforts to convert to a mutual savings bank in light of growing opposition by members and regulators. The board issued a statement last week...

Goal Is To Rollout Payday Lender Alternative.
February 9, 2004... Many credit unions decry the existence of payday lenders in their communities. But Washington State Employees Credit Union is doing more than paying lip service; it is offering an alternative for those who find themselves in need of...

CU CEOs See Even Brighter Future Ahead.
February 9, 2004... Credit union CEOs generally feel good about the condition of their credit unions today, and are expecting conditions to improve even more over the next six months. That sentiment is based on results of the initial Credit Union CEO...

Those Not Selling Cards Recognize Reasons Premiums Being Paid.
February 9, 2004... While credit unions are still considering selling off their credit card portfolios, more of them are choosing to reinvest in their card programs and are looking for ways to pump up the portfolio with everything from glow-in-the-dark plastics to...

ON DEADLINE.
February 9, 2004... Proposal Would Eliminate Downpayments On Loans WASHINGTON-In the latest bid to assist first-time homebuyers, down payments for FHA mortgages for people buying their first homes would be eliminated under legislation proposed last week....

Calif. League Blasts Bankers For More Hypocrisy On Taxes.
February 9, 2004... The California and Nevada leagues last week again blasted bankers for their renewed calls for federal taxation of credit unions, saying the demands smack of hypocrisy. The California/Nevada leagues' response followed an earlier...

Holly Herman Named To Post At NCUA.
February 9, 2004... NCUA Board Vice Chair JoAnn Johnson has named Holly E. Herman as her executive assistant. Herman is well-known to many in credit unions, having spent the past 22 years in the industry, most recently as president/CEO of $500-million Kraft Foods...

Worth Noting.
February 9, 2004... Four More To Speak At GAC WASHINGTON, D.C.-CUNA has confirmed four more members of Congress will address its Governmental Affairs Conference later this month. They are: Senate Banking Committee Ranking Minority Member Paul Sarbanes (D-MD);...

Weighing Whether To Outsource Your ATM Management.
February 9, 2004... Financial Institutions (FIs) have been struggling for years to balance the demands of increasing customer/member care touch-points while reducing the cost to serve. In particular, ATMs continue to be an extremely important customer touch-point,...

Worth Checking.
February 9, 2004... Clarke American Offers Sponge Bob SAN ANTONIO-SpongeBob SquarePants, the animated character from the Nickelodeon program of the same name, has joined the check design and accessory available from Clarke American. The new SpongeBob package...

Spending Cap Popular With Debit.
February 9, 2004... A recent study attributes the rise in popularity of debit cards to consumers' preference for a payment card with a built-in spending cap. According to the San Francisco consulting firm Edgar, Dunn & Co., consumers use debit cards largely...

Two CUs, Two Approaches To Moving Into MBLs.
February 9, 2004... Two more prominent credit unions will begin offering business services to their members this year, but are pursuing slightly different strategies. Seattle, Wash.-based Boeing Employees CU and Riverside County's Credit Union, which has its...

Despite SBA's Glitches, SFCU Ready To Lend.
February 9, 2004... Stanford Federal Credit Union still is in the SBA loan business, despite the U.S. Small Business Administration's money troubles. Just a little over a month after Stanford FCU announced it had been approved by the SBA to provide...

Carolina CUs Form Network.
February 9, 2004... Credit unions in North and South Carolina have followed the lead of three other Southeastern states to form a new credit union real estate network (CUREN) to promote mortgage lending. CUREN groups offer networking and educational opportunities...

Product & Service.
February 9, 2004... IRA Supertrain Workshops Set MADISON, Wis.-CUNA Mutual Group is rolling outs its latest series of IRA "Supertrain" Compliance Workshops. It is the 14th year the company has hosted the sessions, which provide credit union staff with the...

TTCU Pays Out $1.53-Million Dividend To Members.
February 9, 2004... TTCU said it will pay a bonus dividend to members of $1.53 million. The dividend represents a bonus on interest earned from deposits and/or a bonus for interest paid on loans, and is the second year in a row a bonus has been paid to the...

CU of New Jersey Introduces New VP, New Program.
February 9, 2004... To mark the addition of a new VP of investment services, Credit Union of New Jersey, through its Credit Union Investment Center, has rolled out its "3-in-1 Financial Checkup." The program includes complimentary consultations with a financial...

Digital FCU Honors 17 Outstanding Business Partners.
February 9, 2004... Digital FCU announced the recipients of its 2003 Business Partnership Excellence Awards. The awards honor business partners that provide outstanding service to the credit union and its membership. The 17 winners were: ALM First,...

Large Number of First-Timers Attend Wisconsin GAC.
February 9, 2004... Approximately 40 Wisconsin state legislators and member of their staff attended an evening reception hosted by the Wisconsin league as part of its Governmental Affairs Conference. Also in attendance was the state's new Director of the Office of...

Product & Service.
February 9, 2004... Inaugural Issue Is Launched CORVALLIS, Ore.-brass-CU, a money magazine for young adult credit union members, has launched its inaugural issue, which was sent to more than 30,000 young adult credit union members across the country. ...

'University' Founded For Members Seeking To Better Use Their CU.
February 9, 2004... FAIRWINDS Credit Union has started its own "university" for members who want a better understanding of their finances. Named after the $950-million financial institution that serves 115,000 people in five counties, the university will offer...

NCUA Issues 6 Prohibition Orders.
February 9, 2004... NCUA has issued Orders of Prohibition against the following individuals: Diane Carpenter, former chief operating officer with Hallco Community FCU, Gainesville, Ga; Jorge Cavazos, former employee with San Mateo (Calif.) Credit Union; Sherri...

3 Trade Groups Meet At Credit Union House.
February 9, 2004... Leaders of the three national credit union groups met last week at Credit Union House on Capitol Hill to discuss strategies for pursuing enactment of the Credit Union Regulatory Improvements Act (CURIA, HR 3579), now pending in the Congress....

In A First, NCUF Exceeds $1M In Distributions.
February 9, 2004... For the first time ever, the National Credit Union Foundation (NCUF) has been able to exceed $1 million distributions to participating state foundations and leagues in a single year through a unique endowment fund. This record annual...

AACUL Elects Executive Committee Members.
February 9, 2004... At its annual meeting here, the American Association of Credit Union Leagues elected its new officers, including Ohio CUL CEO Paul Mercer as chairman. Others elected include: First Vice Chairman, Rick Pillow of the Virginia/D.C. leagues;...

Idaho Draws Officials, Governor To GAC Event.
February 9, 2004... Three out of this state's four congressman turned out for the Idaho Credit Union League's state governmental affairs conference at the Grove Hotel, which attracted more than 70 people. Members of the Idaho congressional delegation addressed...

Conference For Police CUs Is Scheduled.
February 9, 2004... Bator Training & Consulting, Inc. (BTC) said it is in the process of designing a conference exclusively for credit unions that serve police officers as one of their primary fields of membership. The event will be hosted by Chicago Patrolmen's...

People's Alliance CFO Recognized As Rising Star.
February 9, 2004... Carol A. Allen, chief financial officer with People's Alliance FCU, has been named as one of Long Island Business News' rising stars under the age of 40. The 40 Under 40 Awards are a tribute to Long Island's best and brightest business people....

CUNA Mutual Analysis Sees 4%-Plus Growth For Economy.
February 9, 2004... Economic growth could top 4% this year, according to a projections from MEMBERS Capital Advisors, the investment advisor affiliate of CUNA Mutual Group. In its 2004 Economic & Market Outlook, the company said its generally positive outlook...

RMJ Foundation Plans 5-Yr., $7.5M Literacy Effort.
February 9, 2004... The Richard Myles Johnson Foundation, which supports consumer financial education and career development opportunities for credit union professionals and volunteers, announced it has begun a five-year, $7.5-million campaign focused on funding...

Gov. Signs NY Bills.
February 9, 2004... Credit union representatives, the New York State Credit Union League, and members of the State Legislature joined Gov. George Pataki at the Capitol as the governor signed into law two bills unanimously passed by the New York State Legislature...

NCUF, WOCCU Enter Into Pact.
February 9, 2004... The National CU Foundation (NCUF) and the World Council of CUs Inc. (WOCCU) have signed an agreement to establish an international development fund as part of the Community Investment Fund (CIF). The new CIF is being designated specifically...

Navy Federal Opens 100th Branch.
February 9, 2004... With the opening of a new facility here, Navy Federal Credit Union has now opened its 100th branch. The Fredericksburg member service center is a full-service office with a staff of 20 employees. It provides Navy Federal members teller...

Reader Feedback Welcomed.
February 9, 2004... The Credit Union Journal encourages reader feedback on our reporting and coverage. Send feedback to Editor Frank J. Diekmann at fdiekmanncujournal.com. Copyright 2004 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com...

Budget Deficit Reshines Light On Tax Exemption.
February 9, 2004... The fiscal train wreck that is the federal government's budget has come to paralyze Congress, just as it did in the 1980s. While lawmakers have been discussing the relative merits of balanced budgets versus deficit spending to spur the...

CUNA's PAC Reserves Continuing To Build.
February 9, 2004... CUNA's political action committee continued to build its cash reserves to all-time highs in December, just as the two-year congressional election cycle heads towards its climax. The PAC raised $285,305 in December and spent just $119,104,...

NCUA Says NJ 'Security' Law Preempted By FCUA.
February 9, 2004... NCUA said last week federal credit unions need not comply with New Jersey's new Homeownership Security Act because the Federal CU Act preempts the action aimed at curbing predatory lending. "Our opinion is the law is preempted because it...

CDRLF Is Lonelier Than The Maytag Repairman.
February 9, 2004... NCUA said it made a single loan from its Community Development Revolving Loan Fund in December of $100,000 to Coastal Waters FCU, Mobile, Ala., closing the books on one of the fund's slowest years ever. The fund made just six loans for a total...

People.
February 9, 2004... CUNA Mutual Group, Madison, Wis., named Lon Sprecher chief officer of the Credit Union Protection and Employee Solution Groups, Jim Greaney general manager of China Operations, International Division, and Ralph Swoboda senior vice president,...

Community Page.
February 9, 2004... CUAO Participates In Golf Tourney PORTLAND, Ore.-Members of the Credit Union Association of Oregon participated in a golf outing and wine tasting cruise event, sponsored by Western Reliance Corp. More than 100 people attended the event...

Community Page.
February 9, 2004... USAFCU Celebrates 50 Years MOON TOWNSHIP, Penn.-US Airways Federal Credit Union celebrated its 50th anniversary. Employees dressed in 1950s style and played 1950s music, while serving snacks and refreshments for members. T&CFCU...

The CUJ Daily.
February 9, 2004... Facelift For Mass. CU Giant BROCKTON, Mass.-Brockton CU now has a new persona. The Bay State's second-largest credit union with $1.1 billion in assets tore down the old signage last week to replace them with new signs reading HarborOne CU....

Matz At Opening Of 3rd VITA Site.
February 9, 2004... NCUA Board Member Debbie Matz visited Lower East Side People's FCU (LESPFCU) here last week to participate in the opening of its third site providing free tax preparation and financial education for low-to-moderate income residents throughout...

Bank. Assn. Exec Joins Mich. League.
February 9, 2004... The Michigan league has turned to the state's bankers association for its newest employee. Michael DeFors, 53, has joined the Michigan league (MCUL) as director of regulatory and legal affairs. DeFors comes to the MCUL from the Michigan Bankers...

More Than A Relationship: Vancouver CU Is Seeing Payoff From 'Member Intimacy'.
February 16, 2004... It's 2004, and embracing the sales culture isn't enough for award-winning North Shore Credit Union's membership relationship management (MRM) program. In fact, North Shore is bent on achieving what it calls "Member Intimacy," the next...

Cold Weather, Warm Response: For Some CUs, Effects of Winter Can Have A Payoff.
February 16, 2004... While the weather outside has been frightful across much of the northern U.S., some credit unions have found business to be delightful. Case in point is KEMBA Credit Union. The $52-million credit union serves employees of Kroger...

Dissident Group Files Suit Seeking Special Meeting.
February 16, 2004... Dissident members of Columbia Credit Union asked a state court here last week to enforce their petition seeking a special membership meeting where they hope to recall the board of the prospective credit union convert. The move came four...

Huge Michigan CU Wants To Convert: League Challenges Reasons; CU Won't Talk To Trade Press.
February 16, 2004... The $963.5-million Lake Michigan Credit Union has become the latest-and the largest-credit union ever to announce plans to convert to a bank charter, citing a need for capital as the primary driver. Although not affiliated with the Michigan...

ON DEADLINE.
February 16, 2004... CO-OP Adds 4,000 ATMS Following Deal ONTARIO, Calif.-The CO-OP Network said it has signed a new contract with eFunds Corp. adding another 4,000 co-branded eFunds' ATMs to its network. The three-year deal will expand the CO-OP Network to...

Pennsylvania's Banks Latest To Protest FOM Changes.
February 16, 2004... Banks in Pennsylvania have stepped up their efforts to restrain credit unions, and CUs here may need to brace themselves for more of the same in the future if the recent banker protests of CU community expansions are any indication. "We...

Donors To Foundations OK'd For CU Membership.
February 16, 2004... State regulators said last week they have approved two more requests from CUs to make donors to non-profit charitable foundations eligible for membership.The action by the state CU Division will allow OmniAmerican CU, Forth Worth, to allow...

Consumer Advocacy Groups File Suit over HELC.
February 16, 2004... Several consumer advocacy groups filed suit against the Texas CU Commission and the Texas Finance Commission, claiming new rules implementing the state's recently passed allowance for home equity loans, implementing the state's 1998 law, are...

Worth Noting.
February 16, 2004... Registration Open For Discovery MADISON, Wis.-Online registration is open for CUNA Mutual Group's Discovery Conference 2004: "Experience the Power." The 9th annual Discovery Conference will be in San Diego, June 9-12, at the...

If You've Got A Problem With That, Go Take A Long Hike.
February 16, 2004... It's likely that not a day goes by when you don't want to tell someone at the credit union, whether it be a fellow worker or a member, to take a hike. It's just not the sort of thing you want to say to Brenda Davis. On two occasions now...

On The Stick: How One Small CU Is Using Small Encryption Devices To Share Data.
February 16, 2004... A three-inch encryption device is the key to secure e-mail-and potentially loan document file-sharing-at $22 million Austin Federal Credit Union. Austin FCU's board of directors last month started exchanging encrypted e-mail...

The 2004 Credit Union Journal Technology Panel.
February 16, 2004... The following are members of The Credit Union Journal's Technology Panel. They are all given the opportunity to participate in responding to reader questions, in addition to providing input to The Journal on our technology coverage. John...

Technology News.
February 16, 2004... Some Shared Branches In Texas Turn To Biometric ID AUSTIN, Texas-Effective this month, credit union members who conduct transactions at any of the Texas CU League's five stand-alone service centers will need to provide their thumbprint to...

Consolidating All Loan Types On 1 Platform Boosts Volume.
February 16, 2004... Various breeds of loan at Beacon Credit Union are now corralled under one documentation platform, resulting in superior accuracy, according to Todd Beehler, vice president of agricultural, commercial and consumer lending at the 30,000-member...