Credit Union Journal articles from January 2004

Credit Union Journal archives from January 2004

Court Halts Massachusetts' First CU-To-Bank Conversion.
January 5, 2004... The Bay State's first conversion of a credit union to a bank was stalled indefinitely by a state appeals court, even after members of Postal Community CU voted overwhelmingly for the unprecedented charter change. The stay ordered by the...

Simpson: Utah Won't Be Model For Taxation.
January 5, 2004... The Utah League of Credit Union's new CEO Scott Simpson has a promise for CUs here and across the nation: Utah will not be a stepping stone in banker efforts to tax credit unions. "My primary goal is that Utah not become a toe hold for...

Looking Ahead To 2004.
January 5, 2004... Inside This Issue * What 04 May Hold For Conversions -Page 3 * Eight Trends Worth Watching -Page 6 * Five Recommended Policy Resolutions -Page 8 * What's Ahead For Financial Services -Page 14 * One Suggested Technology...

Patelco CU To Offer New Rewards Program.
January 5, 2004... With increasing numbers of credit unions seeking ways to retain members and expand member relationships, Patelco CU thinks it has the answer. The Bay Area credit union giant will introduce an expanded campaign next year aimed at rewarding...

Conference Agenda Puts Emphasis On Attracting, Keeping Members.
January 5, 2004... The agenda has been finalized for what promises to be among the very best and most rewarding credit union conferences of 2004. The Credit Union Journal will host its fifth annual SEG & Business Development Conference March 4-5 in Orlando at...

ON DEADLINE.
January 5, 2004... SELCO CU Awards 115 Grants To Local Schools UGENE, Ore.-SELCO CU said it has awarded a total of $27,188 in 115 small grants to schools in Lane and Deschutes counties. The grants went to fund projects such as talented and gifted programs,...

USERS Names Schooler President.
January 5, 2004... Fiserv, Inc. announced that John Schooler, formerly Chief Technology Officer of USERS, Inc., has been named President of USERS. Schooler succeeds Joe Barry, who in October took on the role of President of the Fiserv Credit Union Eastern Region,...

Mo. Corporate Announces Bonus.
January 5, 2004... Missouri Corporate Credit Union declared a bonus dividend of $120,000 to be paid to its member credit unions at the end of fiscal year 2003. "This marks the third consecutive year that we were able to pay out a bonus dividend," said MCCU...

Postman Delivers-19 Years Later.
January 5, 2004... The stamp on the envelope was a commemorative 1984 edition of the U.S. Olympic hockey team's 1980 gold medal victory and the postmark read Nov. 6-1984. So when customer service representatives at the city's electric utility opened up the...

You Can Call Her Penny.
January 5, 2004... Debbie Byerly is one of those people who will stoop to pick up a penny. In fact, Byerly has picked up a whole lot of pennies over the past 25 years-more than 1.2 million of them. But Byerly, whose collection is helped out by her credit...

Industry Leaders Debate Involvement In CU Conversions.
January 5, 2004... With some industry observers predicting a wave of credit unions choosing to convert to bank charters in the coming months, the question has become: what can-and should-be done to keep these credit unions in the cooperative fold? The...

Dissidents Try To Save CU.
January 5, 2004... Insurgent members of Columbia CU said they are on their way to forcing a special membership meeting aimed at reversing November's controversial vote to convert the $600 million credit union to a bank. Lloyd Marbet, chief organizer of the...

Worth Noting.
January 5, 2004... Eastman CU Gives Back $3.5M KINGSPORT, Tenn.-The $1.2-billion Eastman Credit Union here has declared a $3.5-million dividend to members to be paid this month. The funds will be deposited into members' share accounts and will be calculated...

The Big Leap Your Credit Union Should Take This Year.
January 5, 2004... Given that this year is a leap year, here's a resolution your credit union's management and board should adopt for 2004. At your next planning session, take a leap and ask yourself a very tough question: What changes in the market do we plainly...

Eight Trends Worth Paying Attention To During This Year.
January 5, 2004... Even-bigger banks, connectivity and smart sourcing will be among the issues taking center stage in 2004 as our industry experiences some of its most dramatic shifts. Here are the key trends we expect lenders to be dealing with in 2004: ...

Product & Service.
January 5, 2004... Empire To Open Check Facility ALBANY, N.Y.-Empire Corporate FCU has signed a lease to open a new check processing facility in Linthicum, Md. The 5,200 square-foot facility will be Empire's fifth, and will open in the first quarter of...

Five New Year's Resolutions For CU Policies.
January 5, 2004... The past two-plus years have been good ones for the credit union movement, but an improving economy will actually increase risk in 2004, according to one analyst. Kenneth Thygerson is the president and founder of Digital University, a...

Where Retail Banks Are Projected To Make, Spend Money In 2004.
January 5, 2004... Retail financial institutions, which have performed well during the past 24 months, should do even better during 2004, according to projections by research firm TowerGroup. "Contributing factors to this performance include consumers...

Product & Service.
January 5, 2004... PEMCO Connection Is Certified SEATTLE-PEMCO Technology Services has certified its online connection with Utah-based data processor CMC Flex. Through this connection, PEMCO can offer its customers online credit, debit, and ATM...

Plunging Rates Dominated Financial Scene In 2003.
January 5, 2004... Looking back on the year just completed it's fairly obvious that the record low interest-rate environment dominated the credit union movement along with the rest of the financial services industry in 2003. In the early part of the year the...

Massachusetts Gets New Regulator Antonakes.
January 5, 2004... Gov. Mitt Romney has named Steven Antonakes, a long-time deputy in the Department of Banking, to succeed Thomas Curry as new banking commissioner overseeing state chartered banks and credit unions in the Bay State. Antonakes was previously...

Former League Staffer Hired By State Regulator.
January 5, 2004... The state Office of Financial and Insurance Services, which is in the process of writing administrative rules implementing the state's new credit union statute, has hired Ken Ross away from the Michigan Credit Union League as one of its top...

People.
January 5, 2004... Fort Bragg Federal Credit Union, Fort Bragg, N.C., named Janet Polk employee of the year. The Members Group, West Des Moines, Iowa, named Fritz Bergmann director of new client partnerships for the Western region, Cindy Stepanek director of...

The CUJ Daily.
January 5, 2004... CUs Continue To Flee Utah Charter TEMPE, Ariz.-NCUA said it has approved the conversion of University of Utah CU to a federal charter, the 10th credit union to flee the state charter over the past 15 months. The state's fifth largest...

Economy: Moderate Growth Squeezes Spread.
January 5, 2004... Credit unions made great strides in a very difficult economic environment in 2003. They grew assets, loans and capital while saving members more than $400 million in cash flow through refinances. With an improving economy on the horizon, 2004...

Risk Management: Add Convenience, Add Fraud.
January 5, 2004... Rapidly developing technology, the Worldwide Web and indirect lending help credit unions better serve their members, but credit unions should be aware these conveniences can increase exposure to litigation, identify theft, check fraud, and...

CU Finance: Look To Short-Term Investments.
January 5, 2004... Rising interest rates expected sometime in 2004 should prompt credit unions to consider implications to financial performance. Credit unions may want to invest in shorter-term instruments early in the year and see increasing yields as rates...

Consumer Lending: Focus On Serving Members.
January 5, 2004... Credit unions' formula for lending success in 2004 may very well be different than we've seen in 2003. In mortgage lending, many credit unions saw that line deliver a significant portion of their net gain in 2003. As the refinancing that...

Member Service: Expand Your Offerings.
January 5, 2004... The financial services industry is a changing environment. Members are more sophisticated and will continue to demand expanded services. Credit unions that wish to remain relevant, retain members, and cement their status as a primary financial...

Mortgages: Look Beyond Traditional Products.
January 5, 2004... CUNA Mutual Mortgage Corp. expects CUs will build upon last year's mortgage lending success. Though we expect only minor fluctuations in rates, money will tend to still be relatively cheap. Member refinances will drop, but credit unions...

Suggested Tech Goal: Become Members' Electronic Filing Cabinet.
January 5, 2004... What should be every credit union's technology goal? To become members' "electronic filing cabinet," according to one expert. That was the message from Steve Williams, a principal at Scottsdale, Ariz.-based consultancy Cornerstone...

SWFCU Sees $1B In Special Shares.
January 5, 2004... Southwest Corporate is reporting that its member credit unions poured more than $1 billion into special share certificates that were created during 2003 as a means of earning high returns in what was generally a low-rate environment. ...

SBA Cuts Off 7(a) Program As Trades Lobby For New Funding.
January 12, 2004... The credit union trade groups are counting on Congress' pending return to session to resolve a funding shortage at the Small Business Administration, which abruptly announced last week it was pulling the plug on its popular 7(a) loan program....

NCUA Employees Win Right To Form Union; Agency Appeals.
January 12, 2004... The Federal Labor Relations Authority, which rules over labor issues for federal employees, approved a proposed collective bargaining unit for NCUA that would include the agency's 500 field examiners, setting the stage for a vote by NCUA...

Petitioners Race To Halt Plan To Convert To Mutual.
January 12, 2004... Dissident members of Columbia Credit Union said last week they have collected more than enough member signatures on a petition seeking to reverse the November vote to convert the $600-million credit union to a mutual savings bank. "We have...

Boston CU In Court Seeking To Convert.
January 12, 2004... Postal Community Credit Union should be allowed to convert to a mutual savings bank under the state's parity provision allowing state charters to exercise all the powers of federal credit unions, in the absence of a state law specifically...

Surprise Merger Forces Western FCU Back To Drawing Board On New HQ.
January 12, 2004... Western FCU's new headquarters building was a dream project-exactly what the credit union wanted and needed. It was even due to be completed ahead of schedule-until a merger with TRW Systems FCU threw more than just a monkey wrench into the...

ON DEADLINE.
January 12, 2004... Mix-Up Has Workers Worried About Funds CHICAGO-Chicago Transit Authority workers flocked to 77th St. FCU to get their money out this week after a snafu at the Federal Reserve continued to funnel their direct deposits to the Archer Avenue...

NCUA Sends Point-By-Point Response On GAO Study.
January 12, 2004... NCUA has sent a response to the General Accounting Office in response to GAO's report on CU services to underserved markets (see related story, page 3). The agency, which had 60 days to respond to the GAO report, responded in its nine-page...

Study: CU Card Portfolios Shrunk During Third Quarter.
January 12, 2004... The majority of credit union credit card portfolios contracted in the third-quarter, according to AssetExchange, a Portland, Ore., company that arranges sales of card portfolios for credit unions. The company concluded that 63% of credit union...

Louisiana's CUs See 40% Rise In Public Awareness.
January 12, 2004... The Louisiana league is reporting a 40% increase in public awareness of credit unions following a TV and radio campaign designed to achieve just that. Forty-eight of the state's credit unions plus one chapter contributed $278,316 to place the...

WOCCU In $2.5M Project To Boost Savings In Columbia.
January 12, 2004... The World Council of Credit Unions (WOCCU) and ACCION International have been awarded a three-year, $2.5-million credit union and microfinance development project from the U.S. Agency of International Development. The goal is to work with...

Groups Say Flawed Data, 'Bank Bias' Evident In Study.
January 12, 2004... CUNA, NAFCU and NASCUS have banded together to issue a joint response to the General Accounting Office's recent report on credit unions. The three groups, represented by CUNA CEO Dan Mica, NAFCU CEO Fred Becker and NASCUS Acting CEO Mary...

Loan-To-Share Ratio Improves.
January 12, 2004... With loan growth again exceeding share growth during November, 2003, the overall credit union loan-to-savings ratio grew to 71%, up from October's 70.5%. Through November, CUNA said savings balances had grown 9% during 2003 to $544.8...

Special Certificates Prove Popular.
January 12, 2004... Southwest Corporate is reporting that its member CUs poured more than $1 billion into special share certificates that were created during 2003 as a means of earning higher returns in a low-rate environment. SWCFCU said it created 78 special...

Worth Noting.
January 12, 2004... CUES Offering 3 Scholarships MADISON, Wis.- The Credit Union Executives Society is offering three partial scholarships for its 2004 CEO Institute program. The scholarships will cover one-third of the cost of CUES-member-rate tuition for...

Falling In Love (With CUSOs) So Easy To Do, But First...
January 12, 2004... There is a lot of interest in cooperative CUSOs these days. Credit unions are finding that it is more effective and economical to offer financial services and operational services on a cooperative basis through CUSOs. The types of services...

Study IDs Growth Practices At Successful Mid-Sized CUs.
January 12, 2004... Mid-sized credit unions have challenges unique to their asset size, according to a new report from the Filene Research Institute that examines management practices that drive growth. The report notes that mid-sized credit unions, which it...

Are You Innovative? Aspiring To Lead? New Group Is For You.
January 12, 2004... The Filene Research Institute and the Center for Credit Union Innovation have announced the formation of a group dedicated to "stimulating innovation and leadership development of the next generation of leaders in the credit union firmament."...

Product & Service.
January 12, 2004... 3 More To Sponsor NADA Booth RANCHO CUCAMONGA, Calif.-U.S. Central Credit Union, WesCorp, and CUNA Mutual have signed on as corporate sponsors for the America's Credit Unions booth that will be on exhibit at the 2004 National Automobile...

Analyst Sees 'Gigantic Opportunity' For CUs In Biz Lending, Retirement Planning.
January 12, 2004... There is a "gigantic opportunity" awaiting credit unions in member business lending and retirement planning, a group of CU directors here was told. Jim Devine, CEO of Hipereon, a Redmond, Wash.-based consultancy, told the CUES Directors...

With 8-County FOM, One Office, CCU Hits The Road.
January 12, 2004... In an effort to gain more members in the eight counties it serves, CORE Credit Union here plans to take its business on the road. Equipped with a mobile branch, the $33 million credit union is setting up shop in the parking lots of its 40...

Product & Service.
January 12, 2004... DEI To Design Truliant Branch CINCINNATI-DEI, Inc. has been selected by Truliant FCU to design and build a new branch in Charlotte, N.C. The facility will include a "transitional exterior," including a front porch and a with a residential...

The Great Debate Over Who Owns The Capital?
January 12, 2004... One of the biggest debates going on amid credit union circles during the annual congressional hiatus is over the growing number of converts to banks. But what is driving the debate more than the philosophical issue is the handful of those...

State Regulators Promise Fight Over OCC Claims.
January 12, 2004... The Office of the Comptroller of the Currency enacted a final rule last week that will preempt the growing number of state predatory lending laws for nationally chartered banks. Comptroller John Hawke said requiring national banks to follow the...

Critics Blast Plan To Consolidate R.E. Costs.
January 12, 2004... Mortgage lenders slammed proposed amendments to the real estate settlement process aimed at lowering and consolidating settlement costs after a congressional hearing on the proposals last week. The Independent Community Bankers of America...

People.
January 12, 2004... Glacier Hills Credit Union, West Bend, Wis., promoted Krisitne L. Baumann to loan department manager. Central Florida Educators' Federal Credit Union, Orlando, Fla., named Cathy Munshower distinguished manager of the quarter. Emick...

The CUJ Daily.
January 12, 2004... Texas-Sized Overlaps In Dallas AUSTIN, Texas-A Texas-sized brawl is breaking out among Dallas-area credit unions over the local credit union market, as state regulators approved two more credit unions to serve the 2.4-million residents in...

Community Page.
January 12, 2004... ACFCU Has SBA Guaranteed Loan MECHANICSBURG, Penn.-AmeriChoice Federal Credit Union is the first credit union in Pennsylvania to have a small business administration guaranteed loan approved. Manchin Speaks At Chapter Meeting West...

Group Fighting Conversion Delivers Petitions To CU's Board.
January 19, 2004... Dissident members of Columbia Credit Union marched to credit union headquarters last week to present almost 3,600 petition signatures from members seeking a special meeting to halt the controversial conversion to mutual savings bank. The...

Boosting Security Through Snapshots: Why Xerox FCU Conducts Daily Vulnerability Scans.
January 19, 2004... Security risk assessment shouldn't just happen a couple times a year, which is why Xerox Federal Credit Union is better protected by real-time security snapshots. In June, the $726-million Xerox FCU installed Commerce Trust, provided by...

Virginia Supreme Court Hears Appeal Of FOM Decision.
January 19, 2004... The Virginia Bankers Association asked the state Supreme Court last week to clearly delineate the term "well-defined local community," used by regulators in Virginia and several other states and NCUA to determine the acceptable boundaries for...

ON DEADLINE.
January 19, 2004... SBA Resumes 7(a) Guaranteed Loans WASHINGTON-The U.S. Small Business Administration last week resumed its 7 (a) guaranteed loan program, a week after suspending the popular program for lack of funds. The SBA said the program will...

'Second Chance' Offer Means First-Rate Opportunity.
January 19, 2004... WestStar Credit Union believes in giving people second chances. And, as evidenced by the jump in new checking account business, members have no qualms about taking them. This is Las Vegas, after all, a place where the lure of winning...

The CUJ 5th Annual SEG & Business Development Conference.
January 19, 2004... WHAT: CU Journal SEG & Business Development Conference WHEN: March 4-5 WHERE: Coronado Springs Resort, Orlando, Fla. WHY: Learn the latest strategies and tactics for developing new business from members and potential members. ...

Worth Noting.
January 19, 2004... Texas League Sets Funds Record DALLAS-The Texas league said it set a new record during 2003 for political action funds raised. The league reported its TCUL PAC received $175,240.87 last year; Trustees are meeting Jan. 15 to set a 2004 goal....

Before Jumping In, Ensure You Can Also Jump Out.
January 19, 2004... In part one of this series, it was noted there is significant and growing interest in cooperative CUSOs these days as an effective and economical means of offering financial services and operational services on a cooperative basis. This series...

CEO Who Led Conversion To Bank Challenges Critics.
January 19, 2004... Don't tell Herb Moltzan he's "one of the bad guys" or that he "went to dark side." And whatever you do, don't suggest that it's just too easy for credit unions to convert to banks. Six years ago, in the wake of the Supreme Court decision...

Pennsylvania League Restructures Management.
January 19, 2004... The Pennsylvania Credit Union Association has restructured its senior management team. Named to the executive team were Jim McCormack, president/CEO; Bob Hinchey, EVP-fee services; Rick Wargo, senior VP/general counsel; Mike Wishnow, Senior...

Product & Service.
January 19, 2004... CENTRIX Signs 7 Partnerships CENTENNIAL, Colo.-CENTRIX Financial said it has formed seven more partnerships with credit union leagues and service corporations, bringing the total to 35. The new clients include the Iowa Credit Union League;...

Tower FCU Seeing Results After Five Years of Moving Away From Paper.
January 19, 2004... Martin Breland has some advice for lenders: Make sure you have an online application with automated decisioning. The CEO of Tower FCU is emerging from five years of organizational and technological change, taking a paper-based consumer and...

Worldly Lessons: Service CU Using Web, Audio Conferences To Educate Members Scattered Around The World.
January 19, 2004... The fact that Service Credit Union gathers with members every month as a means of "maintaining relationships" isn't unusual. But the fact those members are scattered around the world is. A web and audio conferencing platform assembles 50 to...

The 2004 Credit Union Journal Technology Panel.
January 19, 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.
January 19, 2004... Coop Now Available Via Domain Bank Registry WASHINGTON-Cooperatives are being offered a North American option for registering or renewing .coop Internet addressees. Pennsylvania-based Domain Bank, Inc.-10th largest registrar in this...

CUs Slash Costs By Banding Together, Sharing Software.
January 19, 2004... A credit union technology-sharing "underground" has helped revamp a third-party bill pay platform at $85-million Central Coast FCU, delivering full functionality and increasing payment volume seven times. According to Michael Blanksma,...

Tech Support Staff Able To Cut Frequent Branch Visits.
January 19, 2004... Support techs at USA Federal Credit Union are cutting their house calls on problems at remote branches by up to 80%, according to Jim Swecker, system administrator at the $622-million CU. "We can now take control of any one of our 350...

Technology News.
January 19, 2004... CU Tech Solutions Is Formed WALTHAM, Mass.-Credit Union On-Line, Inc. (CUOL), a CUSO that provides core data processing, has created a new subsidiary it says is designed to offer "affordable technology solutions" to credit unions. Called...

Catastrophic System Failure Requires Trust, Cooperation And Late Nights.
January 19, 2004... Rogue Federal Credit Union's Gene Pelham and the credit union's information services (IS) team are now recovering from a series of catastrophic computer system failures. Pelham, the former president and CEO of Oregon Metro FCU prior to a...

Wireless ATM Option Introduced.
January 19, 2004... Triton Systems has introduced a new wireless option on its ATMs. The company said that monthly costs on wireless access are now in most cases less than that of dial-up lines, and that transaction times are increasingly comparable with leased...

You've Got Mail!: How One Credit Union Went About Reducing The Time It Spent Sorting Through The, Well, You Know.
January 19, 2004... Spam is no longer a big deal for Lisa Minor, vice president of Information Systems at $74-million GHS Federal Credit Union. Minor-whose duties include distributing incoming website e-mail to appropriate employees-joined an emerging...

re:Member Recognizes Achievers.
January 19, 2004... re:Member Data Services (RDS) staff members Ryan Brubaker, John Hammond, Dennis Longbotham, and Brian Wortman were presented with Million Dollar Awards at the 2003 TechPoint Million Dollar Awards Banquet. Brubaker and Wortman received awards...

Oakland Muni Selects XP Systems.
January 19, 2004... XP Systems, a unit of Fiserv, Inc. said that it will provide a core processing system to Oakland (Calif.) Municipal Credit Union. The credit union chose XP2, a Web-enabled core information solution now installed at more than 200 CUs nationwide....

Open Solutions Opens 2 Centers.
January 19, 2004... Open Solutions Imaging Systems Inc. (imagic), a subsidiary of Open Solutions Inc. and a provider of check imaging, COLD and document imaging technology, has opened two item processing centers in the Northeast. The two centers are located...

Technology News.
January 19, 2004... Mosaic, e-ClassicSystems Agree DEERFIELD BEACH, Fla. and NORWOOD, Mass.-Mosaic Software, a provider of EFT and financial services transaction processing software, and e-ClassicSystems, Inc., developer of the ATM Manager Pro channel...