Credit Union Journal articles from July 2008

Credit Union Journal archives from July 2008

An Indepth Look At Credit Union: The Drivers, The Realities, The Alternatives.
July 7, 2008... WASHINGTON -- Has the historic credit union business model of borrowing short, lending long and living on the spread become passe? In the past, fee income helped to make up the difference, but thats proving to be hard to do as well. For...

Arizona FCU Forms Team To Head Off Problems Later.
July 7, 2008... PHOENIX -- Members with 90-mile roundtrips to work. Gas prices topping $4 a gallon. ARMs resetting. And plunging home values leaving behind little or no equity. In Phoenix, Its all adding up, said Amy Hysell, SVP and chief lending officer...

Growth Task Force Offers Advice To Build Membership.
July 7, 2008... NEW YORK -- With membership growth so flat that we almost have shrinking numbers of members, the CUNA Membership Growth Task Force offered up its initial findings and recommendations to help spur on growth. Even though our potential...

CUs Step Up To Plate As Gas Prices Zoom, Expenses Boom.
July 7, 2008... FAIRFAX, Va. -- Rising gas prices are having an effect on some credit unions, whether it be branch traffic or what members are seeking when they are in those branches. Apples branch traffic has gone down, but I cant say for sure as to...

On Deadline.(survey on consumer dissatisfaction)(Survey)(Brief article)
July 7, 2008... Consumer Dissatisfaction With Banks On The Rise ANN ARBOR, Mich.A new survey shows growing dissatisfaction among consumers with their bank. The survey, from CFI Group, found bank call centers had the largest drop in customer satisfaction...

Patelco Expands Bay Area Footprint By Taking Over Troubled Cal State 9, Sterlent.
July 7, 2008... SAN FRANCISCO -- In one of the biggest fire sales ever in the credit union industry Patelco CU took control last week of two medium-size credit unions that have fallen victim to the areas real estate crash, Cal State 9 CU and Sterlent CU. ...

Despite Housing Crisis, Mortgages Still Lead CU Loan Growth.
July 7, 2008... MADISON, Wis. -- Mortgage growth through May of this year is leading loan growth, which is up 2.8% overall after increasing 1% during May. Fixed-rate first mortgages grew 2.6%, according to analysis by CUNA, which said the 2.8% rise in loans...

New Credit/Debit Cards Breach Is Traced To Dave & Buster's.
July 7, 2008... TALLAHASSEE, Fla. -- Officials with Envision CU said they have been told the new card breach forcing them to reissue Visa credit and debit cards was the result of an invasion of popular restaurant and gaming company Dave & Busters. Yes, it...

Sanchez Elected MSNP Chairman.
July 7, 2008... WASHINGTON -- Javier Sanchez, NAFCUs associate director of legislative affairs, has been elected chairman of the Military Saves National Partners Committee. Sanchez, a former U.S. Marine who joined NAFCU in 2007, specializes in defense CU...

WORTH NOTING.
July 7, 2008... Beal Set As New NAFCU Chair WASHINGTONWhen NAFCU holds its annual meeting this week in San Diego, Bradley W. Beal, CEO of Nevada FCU in Las Vegas, will take over as its new chairman. Other members of the NAFCU executive committee will...

Why What's Seen As A Little Thing Can Really Be Big For CUs.
July 7, 2008... Earlier this year during Credit Union Journals Grow Show one of the speakers, who has had some terrific success in growing a small business into a large one, urged credit unions to finally come out of the closet and admit to being a...

CALENDAR.(Brief article)(Calendar)
July 7, 2008... JULY July 9-12 NAFCU Annual Conference & Exhibition, San Diego Convention Center, San Diego. For info: www.nafcu.org/events. July 13-16 World Credit Union Conference, Hong Kong. For info: www.woccu.org/hongkong08. July...

The 2008 Call for Entries - Best Practices.
July 7, 2008... The Credit Union Journal is announcing its Call for Entries for its Best Practices awards. It's easy to enter! Nominations may be submitted by credit unions, a CUSO, or even another CU. Nominations can also be submitted by suppliers to the...

Credit Unions Just What Consumers In A Recession Ordered.
July 7, 2008... In the last year, the subprime issue has upended the mortgage market; numerous trading firms and banks have declared huge losses, and the dollars value has even dipped below the Loonie. Americans are overwhelmed with this financial upheaval...

Is CUNA CEO's Salary People Helping People?
July 7, 2008... Regarding CUNA CEO Dan Micas salary surpassing $1 million, once again it looks like we got the best leadership money can buy. So this must explain where all that CUNA dues money is going. While nationwide some 17% of credit unions are...

Research: Organizational Culture: Think Of It As Triangle.
July 7, 2008... Organizational culture refers to the unwritten, unspoken, but powerful rules of the game that determine appropriate ways to think, act and feel. The culture determines the employee experience and the degree to which mission and values are...

Can 'Scanlon Plan' Help Resolve Many Credit Union HR Issues?
July 7, 2008... MADISON, Wis. -- Credit unions with plans for being around for the future are going to need one critical ingredient, according to a new study: engaged employees. That was among the findings at a recent Filene Research Institute colloquium...

Key To Biz Services: Offer 401(k)s To SEGs.
July 7, 2008... LAS VEGAS -- Credit unions looking to move into business services would be wise to consider offering 401(k) retirement plans to SEGs, business owners and others, according to a panel at NACUSOs annual conference here. The panel, which...

Illinois' CUs Shred Image: On Purpose Sh.
July 7, 2008... NAPERVILLE, Ill. -- Credit unions across Illinois are participating in Shred Month as part of an effort to both protect people from identity theft and raise awareness of credit unions as advocates for consumers. On Shred Days at various...

Now In The Market.
July 7, 2008... CO-OP Adds 2 New Card Options RANCHO CUCAMONGA, Calif.CO-OP Financial Services has begun providing travel and youth reloadable cards, available in Visa and MasterCard versions. CO-Op said the Travel Card is a viable alternative to...

CUs Seek Expansion of CUSO Powers In Comment TO NCUA.
July 7, 2008... ALEXANDRIA, Va. -- Credit unions are calling on NCUA to adopt its proposed CUSO rule in order to broaden the kind of activities the credit union subsidiaries may engage in. In a comment letter on the proposal Navy FCU urged NCUA to add...

As Fryzel Joins NCUA, CU Antagonist Joins Fed.
July 7, 2008... WASHINGTON -- The Senate, among its final acts before adjourning for its annual Fourth of July recess, confirmed Virginia banker and outspoken credit union critic Elizabeth Betsy Duke to a seat on the Federal Reserve Board. Duke was among...

FHLB Funds Low-Income Mortgages at CUs.
July 7, 2008... BOSTON -- Fourteen credit unions in Massachusetts, Rhode Island and Vermont will share more than $500,000 in funds from the Federal Home Loan Bank of Boston to help them provide matching homeownership grants for low-income members. The...

Visa Said to Lower Interchange Fees on Gas Purchases.
July 7, 2008... SAN FRANCISCO -- Under growing pressure for increasing fees paid on gas transactions, Visa Inc. said it is restructuring consumer interchange for transactions at automated fuel dispensers and service stations, effectively lowering interchange...

AGENDA.(Brief article)(Calendar)
July 7, 2008... Events NCUA hosts credit union development events on July 17, Minneapolis. Federal Reserve Bank of Chicago hosts the Risk Mitigation Summit, Aug. 7 Comment Federal Reserve Board: comments on Truth In Lending and Truth In...

People.
July 7, 2008... Tuscaloosa Credit Union, Ala., named Mike Ivey senior mortgage lender. Seaport Credit Union, Salem, Mass., named William A. Keane chief financial officer. Credit Union Foundation of Colorado and Wyoming, Arvada, Colo., elected Bob...

CFO Guilty Of $132K Embezzlement.
July 7, 2008... KENMORE, N.Y. -- The former chief financial officer for Buffalo Fire Department FCU pleaded guilty to stealing $132,000 from the CU. Eve Hutchison, 44, was released on her own recognizance after she pleaded guilty to a pre-indictment charge...

19-Year-Old Hacker Found Guilty.
July 7, 2008... CHEYENNE, Wyo. -- A 19-year-old hacker suspected of infecting thousands of personal computers with malicious software that enabled him to tap into hundreds of credit union and bank accounts pleaded guilty to fraud under a plea deal. The case is...

State Sells CU Land For HQ.(credit union)(headquarters)(Brief article)
July 7, 2008... HARRISBURG, Penn. -- Pennsylvania Gov. Ed Rendell signed legislation allowing the state to sell 47 acres of land in Susquehanna Township to Pennsylvania State Employees CU for a new home. The sale price for the land, near the former Harrisburg...

VP-Loss Prevention Causes Loss.
July 7, 2008... CAMDEN, N.J. -- A former assistant vice president of loss prevention for South Jersey FCU pleaded guilty to her scheme to defraud the credit union of up to $400,000. Nora Phelps, 48, admitted that since at least 2005 she devised and implemented...

Mexican Official, Others Outline Opportunities In Latino Market.(Conference notes)
July 7, 2008... DALLAS -- A former cabinet member in Mexicos government told credit unions the opportunities for expanding to serve the Hispanic market have never been better than they are now. In remarks to the Latino Credit Union Conference here, Juan...

Latinos Feeling Economic Pinch.
July 7, 2008... SILVER SPRING, Md. -- While many Americans are currently struggling with their finances, a new study suggests Latinos are having significantly higher problems paying bills right now. The National Foundation for Credit Counseling/MSN Money...

Credit Unions In The Media.
July 7, 2008... Miriam Neal, VP-information systems for South Western FCU, La Habra, Calif., was quoted in a piece in The Wall Street Journal on risks from smart phones to financial institutions. Such phones allow members to conduct mobile financial...

Now In The Market.(Website overview)
July 7, 2008... CBI Enhances Its Website DULUTH, GeorgiaConsultants & Builders Inc. (CBI), a design-build firm focusing on the development of financial institutions in the Southeast, has launched a new website at www.consultantsandbuilders.com. The...

Tips For Subtracting: There Must Be 50 Ways To Cut Your Costs, Says Analyst, Eyeing Expenses.
July 7, 2008... ORLANDO, Fla. -- Credit unions are looking to trim expenses to help get them through tough economic times, which is why one expert recently shared 50 tips for doing just that. The Florida CU League brought in Robin Hoag, senior director of...

Tips For Adding: No Consumer Signs On With A CU Without First Understanding Value Proposition.
July 7, 2008... HOLLYWOOD, Fla. -- Why should a consumer want to do business with your credit union? If you cant answer that, according to one analyst, then all the strategic planning and product services menus in the world wont matter to new markets. ...

The Branch-In-Home Challenge.
July 7, 2008... LINDEN, N.J. -- As convenience becomes more important to members especially as credit unions reach out to generations X and Ydigital signature will play a larger role in CU business, predicts one document presentment expert. Credit unions...

AmeriChoice Aids Vets.(AmeriChoice Credit Union)(Brief article)
July 7, 2008... MECHANICSBURG, Penn. -- Some 137 veterans of World War II along with students from Mechanicsburg Middle School here visited the WWII Memorial and the Tomb of the Unknowns in Washington, thanks to sponsorship help from AmeriChoice Credit Union....

Now In The Market.
July 7, 2008... End-To-End Merchant Processing MIRAMAR, Fla.uCU Business Capital and Miami-based Blackstone Merchant Services have formed a joint venture called CU Merchant Services LLC that will offer end-to-end merchant payment processing solutions with...

CUJ Q&A: NASCUS President Mary Martha Fortney Discusses New Role As President Of Women In Housing And Finance.
July 7, 2008... ARLINGTON, Va. -- NASCUS President and CEO Mary Martha Fortney was recently elected as President of the Women in Housing and Finance (WHF) Board of Directors. She also recently introduced U.S. Treasury Secretary Henry Paulson, who gave remarks...

Harley Loan Nets $100K In First 6 Weeks.
July 7, 2008... BOULDER, Colo. -- One credit union here has turned to a Harley-Davidson loan to extend its lending portfolio and obtain secure collateral. Elevations Credit Union here has dropped its motorcycle loan rate to its existing new and used car...

Wisconsin CUs Offer Help To Flood Victims.
July 7, 2008... PEWAUKEE, Wis. -- Wisconsin credit unions are offering special loan terms or reducing or waiving fees on financial services to help people recover in the wake of widespread flooding. While no credit unions have reported flood damage, it is...

An Indepth Look At Credit Union: The Drivers, The Results, The Alternatives.
July 7, 2008... ASHINGTON -- In the 1970s there were nearly 24,000 credit unions in the United States. Today, that number has dropped to a little over 8,300. Many of the credit unions lost were those organizations under $20 million in assets merging with...

Doing The 'Human Due-Diligence'.
July 7, 2008... MADISON, Wis. -- If you were to ask a CEO of a bank or credit union experiencing a merger for the most challenging part of the process, invariably the answer would be the human dimension. Financial institutions typically do an adequate job...

One Difference Between Banks & Credit Unions? Their Pace Of Hiring.
July 7, 2008... FOREST GROVE, Ore. -- The increasing costs of business has been a driver of mergers; during an economic downturn, organizations are typically more conservative in hiring. That has been the case with banks, but not credit unions. Banks and...

The Board: Study Examines Theory Vs. Practice In Mergers.
July 7, 2008... MADISON, Wis. -- The board should play a critical role in a merger representing the members best interests. At least thats the theory. But whats the practice? William Brown researched just that subject in the Filene Research Institute 2007...

The Options: Analyst Says CUs Are Too Quick To Merge.
July 7, 2008... ALEXANDRIA, Va. -- There is a feeling in the industryat least by somethat credit unions are too quick to play the merger card, that there are other options. Tun Wai is one of those who holds that opinion. A merger should be the last...

The Alternatives: Study Shows Why Deposits Per Member Are Powerful Indicator.
July 7, 2008... MADISON, Wis. -- A strategic alternative to mergers, according to Bob Hoel, is to maintain high deposits per member and low operating expenses. Of course, once a credit union is in troubled waters and looking for a merger partner, it may be too...

The Example: N.C.'s LGEFCU & SECU.
July 7, 2008... RALEIGH, N.C. -- Local Government Employees FCU has $792 million in assets but owns no branches. Instead, it has licensees with the $15.8-billion State Employees CU to provide access to members using its branches. The Local Government ECU...

A View On Another Type of Credit Union Merger, The 'Hostile Takeover' Kind.
July 7, 2008... TEMPE, Ariz. -- Hostile takeovers werent part of the credit union vocabulary until March 9, 2007, when the $1.9-billion Wings Financial Credit Union made a bid for the $199-million Continental FCU. It was Continental FCU CEO Tom Glatt who...

Advice For Avoiding A Hostile Takeover.
July 7, 2008... TEMPE, Ariz.Tom Glatt, CEO of Continental FCU, knows many credit union leaders who believe a hostile takeover bid could never happen to them. Perhaps. But Glatt asks, Why be unprepared? He offered the following advice to Credit Union Journal...

The Large & The Small Of It: CEOs Talk Mergers, Small CUs, Collaboration.
July 7, 2008... HOLLYWOOD, Fla. -- Though regulatory accounting changes will slow the merger train down, a panel of experts on combining credit unions suggested the continued consolidation in the movement is inevitable. Indeed, the panel at CUNA Mutuals...

Firm Forecasts Increase In Mergers.
July 7, 2008... FOREST GROVE, Ore. -- A company that in late 2007 accurately forecast the level of merger activity among credit unions during the first quarter of this year is predicting only accelerated activity for the remainder of the year. Merger...

One piece of advice from Tom Glatt.
July 7, 2008... One piece of advice from Tom Glatt: A CU can be lost as the result of poor service. Good service isnt good enough anymore, says Glatt. It must be exceptional. Glatt recommends CUs read Good to Great: Why some Companies Make the Leap and Others...

Credit Union Mergers: Recently Announced Combos.(Company overview)
July 7, 2008... PORTSMOUTH, N.H.The $12.7-million Salmon Falls Community Credit Union (founded in 1955 as Somersworth GE Employees CU) has been absorbed via merger by Service Credit Union. GARDINER, MaineCiting overlapping FOMs, Riverview FCU and Gardiner...

Merger Alternative: CUs, Others Press To Expand CUSOs.
July 7, 2008... ALEXANDRIA, Va. -- Among the alternatives to mergers are greater collaborations through CUSOs, and credit unions are calling on NCUA to adopt its proposed CUSO rule in order to broaden the types of activities credit union subsidiaries may...

NASCUS: 'No New Burdens'.
July 7, 2008... ARLINGTON, Va. -- NASCUS is encouraging NCUA to work with state regulators on CUSO-related issues to ensure no new regulatory burdens are added. The comment is in response to proposed changes to Part 712 that would extend requirements to...

cujournal.com SURVEY.
July 7, 2008... We expect to merge and be an acquirer 34% We expect to be acquired in a merger 21% We do not anticipate any mergers 45% (c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved....

Now It's Your Turn.
July 7, 2008... What Do You Think About Mergers and This Special Report? Credit Union Journal Welcomes Your Feedback. Just Click on Letters to the Editor At www.cujournal.com, and take a moment to share your thoughts. (c) 2008 The Credit Union Journal and...

Charter Conversions Remain A Heated Disagreement.
July 7, 2008... WASHINGTON -- It has been getting harder over the past several years for a credit union to pursue another option other than a mergera conversion to a mutual savings bank. That small statement of fact is about the only point of agreement...

Analyst Sees Change In CEOs' Tone Toward Collaborations.
July 7, 2008... SCOTTSDALE, Ariz. -- Economic uncertainty and concern about the subprime crisis affecting other lending and credit areas have credit union CEOs looking at collaborations and consolidation more seriously these days, one analyst said he is...

YouTube Rapidly Becoming Place To See Your CU-Tube-And Plenty of Rivals.(Brief article)(Statistical data)
July 7, 2008... ATLANTA -- Video sharing sites such as YouTube, Yahoo Video and Google Video have had such a surge in popularity that many financial institutions exploring the advertising opportunities of these sites, according to a new study. ...

Talk of Innovation, Culture During FSCC Conference.(Conference news)
July 7, 2008... CHICAGO -- At Financial Service Centers Cooperativess Retail Delivery Convention here were, clockwise from above left, Clerk of the Circuit Court of Cook County, Dorothy Brown, presents FSCC CEO Sarah Canepa Bang with a welcome letter on behalf...

In Wake of Foreclosure Crisis, Fair Isaac, Bureaus Eye New Credit Scoring Tools.
July 7, 2008... OVERLAND PARK, Kan. -- In response to criticism that FICO scores have not been predictive enough of defaults and foreclosures, Fair Isaac Corp. and the credit bureaus are creating scoring tools specifically for mortgages. The products,...

FDIC Plan Requires Big Upgrade By Banks.
July 7, 2008... WASHINGTON -- Despite protests from the financial services industry, the FDIC said it is moving ahead with a plan to require millions of dollars of system upgrades at large banks to prepare the agency to handle a colossal failure. The...

Unique Board Succession Program Creator Is Recognized.
July 7, 2008... NORFOLK, Va. -- For Lou Gull, having the right attitude, dedication to the credit union, and proper training, are more important traits for new board members than impressive business credentials. With that philosophy, Gull, board chairman...

FCU of the Year Finds Real Reward In Just Filling Out The App.
July 7, 2008... YANKTON, S.D -- If you believe that what gets measured gets done, then why arent you measuring your Primary Financial Institution score? Thats just one of the things that this years winner of NAFCUs Federal Credit Union of the Year (assets...

Now In The Market.
July 7, 2008... eSuccessE Workshops Are Set CLEVELAND, OhiouCredit Union Business Solutions, LLC has announced the Fall 2008 multi-state schedule for its recently launched Partnership for Success seminars. The one-day workshop focuses on enhancing...

FMFCU Offers A Lesson In Taking Big Banks To Schools.
July 7, 2008... BROOMALL, Penn. -- Up against much larger banks and their equally large marketing budgets, Franklin Mint FCU is nonetheless taking those competitors to school. Creating a niche for itself as a leader in educationworking with high schools...

Volunteer Recognized For His Role In Building Bridges.
July 7, 2008... REIDSVILLE, N.C. -- The concept of credit unions partnering to build economies of scale or share best practices hasnt slipped past Kinney Ford, who has worked in credit unions for years as a consultant and volunteer, often helping various...

WORTH NOTING.
July 7, 2008... NBCEs Gregory To Keynote Event WASHINGTONuNBC Chief White House Correspondent David Gregory, who also hosts MSNBCEs Race for the White House, will be the keynote speaker at NAFCUEs 34th Annual Congressional Caucus at the Grand Hyatt...

Leader of CUSO Doing Manufacturing Housing Finance Sees Role For CUs.
July 7, 2008... SAN ANTONIO -- Hes a former banker who loves the service side of the credit union movement. Hes also NAFCUs Professional of the Year for credit unions with more than $150 million in assets. Stephen Hennigan is executive vice president for...

Latest Link On Facebook: Visa Business Network.
July 7, 2008... SAN FRANCISCO -- The Visa Business Network has created what it says is the first ever application dedicated to connect businesses on Facebook. Visa knows first hand that small business owners have big ideas and ambitions and that...

CU Offers 'Store Full' Of Reality For High Schoolers.
July 7, 2008... FAIRFAX, Va. -- Adults often say high school kids need a dose of reality when it comes to their finances, and Apple FCU here is giving them oneor, in this case, a store full. The credit union has been sponsoring the Apple Federal Credit...

Redwood CU Adds New 'Move Money' Offering.(Redwood Credit Union)(Brief article)
July 7, 2008... SANTA ROSA, Calif. -- Union has introduced Move Money, an online service that allows members to move funds electronically between accounts. Members can access Move Money through their RCU Online home banking, and can use the service to transfer...

Pennsylvania Credit Union Association Is Big Winner In Pro & Blockbuster Awards.
July 7, 2008... WASHINGTON -- CUNA has named the winners of its 2008 Pro & Blockbuster Awards for excellence in public relations, marketing, and advertising by state leagues and league service corporations. The Best of Show Pro Award went to the...

Credit Union ONE Staffer To Mark 90th Birthday.
July 7, 2008... FERNDALE, Mich. -- Longstanding Credit Union ONE employee Harry Nowell will celebrate his 90th birthday on July 8. Harry Nowell, born in Montreal, Quebec in 1918, began working at Credit Union ONE in 1981, the third career in his lifetime....

CU Sponsors Financial Lessons For Military.(credit unions)(Brief article)
July 7, 2008... PENSACOLA, Fla. -- Kelvin Boston, host of the PBS series Moneywise with Kelvin Boston, came to the Gulf Coasts U.S. Navy Installations to teach financial readiness tools to area military personnel as part of a program sponsored by Pen Air FCU....

Polish & Slavic Takes CU On The Road With Truck.
July 7, 2008... BROOKLYN, N.Y. -- Polish & Slavic FCU now has the ability to take the credit union on the road following its introduction of a 40-foot truck that can act as a mobile branch. P&SFCU said it will take the vehicle to meet with various...

79 Volunteers Help AFCU To Help 1,200 With IRS.(Alternatives Federal Credit Unions)(Internal Revenue Service)(Brief article)
July 7, 2008... ITHACA, N.Y. -- With the help of 79 dedicated volunteers, Alternatives Federal Credit Unions Community Tax Program filed more than 1,200 federal tax returns, returning an average of $1,514 to clients served as part of its participation in the...

Texas Banking Chief James Is Set To Retire.
July 7, 2008... AUSTIN -- Texas Banking Commissioner Randall James will retire Aug. 31 after more than 15 years with the Texas Department of Banking. James was hired as deputy commissioner in 1991 and has spent almost nine years as the commissioner. He said...

CU Sponsors Discount On Gas Price.
July 7, 2008... SAGINAW, Mich. -- Team One Credit Union here sponsored discounted gas at a local 7-Eleven. The credit union provided a 25-cent-per-gallon discount on 4,000 gallons of gas overall pumped into consumers cars. High gas prices are on everyone's...

Gas Allowance For Staff.(Prime Financial Credit Union )(Brief article)
July 7, 2008... CUDAHY, Wis. -- Prime Financial Credit Union said it has begun making a monthly Gas Allowance deposit into employees accounts to help offset the rising cost of fuel. The funds are going to full-time employees who are not in an executive or...

City CU Relocates Workers Closer To Home.
July 7, 2008... DALLAS -- At City Credit Union here, branch employees have all been relocated so as to work at the branch closest to their homes. In addition, several back-office employees are working four 10-hour days, four days per week. Senior management...