Credit Union Times Magazine November-20, 2002

In Other News

  • AWARDS

    By Staff Writer

    Lake Michigan Credit Union, Grand Rapids, has been named the Best in Community Service by the Better Business Bureau of Western Michigan. LMCU was chosen from a field of twenty-six companies representing 37 Michigan counties. The BBB Best in Business Awards recognizes companies in the community that operate with integrity...

  • DONATIONS

    By Staff Writer

    Michigan State University Federal Credit Union, East Lansing, Mich., has raised $32,325 for the Michigan State University Museum and its dinosaur exhibit during its 17th annual Dinosaur Dash. Over 900 individuals participated in the 5K Run/Walk and over 350 children ran the Kid's Museum Mile. Dashers competed in several different...

  • SCHOLARSHIPS

    By Staff Writer

    CEFCU, Peoria, Ill., has awarded a total of eight CEFCU Member Appreciation Scholarships to attend Bradley University. Each of the eight recipients received a $4,000 scholarship for the 2002-2003 academic year. This year's winners are Nicole Brewington, Sara Cruce, Jordan Draminiski, Stephanie Eckhold, Megan Hodge, Lucas Roemersberger, Julie Kennelly, and...

  • MILESTONES

    By Staff Writer

    SELCO Credit Union, Eugene, Ore., has planted a tree to honor longtime credit union board director Mike Morris. The stately young evergreen tree was planted in the front landscaped area of the SELCO Gateway Financial Center. A plaque was installed next to it with a short poem that celebrated the...

News

  • Credit unions recognized for excellence in lending

    By Staff Writer

    NAPLES, Fla. - Four credit unions were selected from among nearly 40 nominees to receive Excellence in Lending awards from CUNA Mutual Group for their achievements in 2001 in consumer and mortgage lending. Two awards each were presented in two asset categories - under $200 million in assets and over...

  • Credit union managers pleads guilty to stealing $898,000; ASI pays out $3.8 million

    By Staff Writer

    IRONTON, Ohio - The manager of a defunct credit union here pleaded guilty in state court to stealing $897,910 from credit union members between 1990 and 2002. Douglas Calhoun, who was manager and treasurer of Ironton SSP CU, changed his plea from innocent to guilty at a hearing Nov. 6....

  • Corporates look to next year with a new reg and eyes on new services

    By Staff Writer

    WEST PALM BEACH, Fla. - Looking ahead and behind corporates are still mulling over Part 704, looking for a way to bring value to CUs wanting to serve businesses, and recognizing the importance electronic transactions will play in the future. Corporate leaders say they can help CUs get over the...

  • California: Card law veto message was routine

    By Staff Writer

    SACRAMENTO - A coalition of NAFCU, CUNA, several banking associations and several national credit card issuers trying to stifle the State of California's pending credit card disclosure law have misunderstood a routine administrative opinion, according to briefs filed by the state in the case. The opinion has no relevance to...

  • MEMBERS Capital Advisors celebrates its 20th

    By Staff Writer

    MADISON, Wis. - CUNA Mutual's investment advisor affiliate, MEMBERS Capital Advisors, recently celebrated its 20th anniversary. The unit has grown from a group of seven people managing $800 million, to a team of 55 overseeing nearly $10 billion. "Our investment philosophy hasn't changed a bit in all of those years,"said...

  • Michigan credit unions play up sports connection in new ad

    By Staff Writer

    PLYMOUTH, Mich. - Credit unions here have set their marketing sights on sports fans of all ages. For example, Detroit Red Wing hockey fans will once again be learning about credit unions while catching up on games. Southeast Michigan Credit Union Marketing Alliance has opted to sponsor the Inside the...

  • At 91, Maudelle Shirek not about to slow down

    By Staff Writer

    BERKELEY, Calif. - Keeping up with Maudelle Shirek is no easy task. On a typical weekday, she's out doing errands, shopping or keeping appointments in the morning, then it's off to the YMCA at noon where she volunteers by helping serve lunch in a community-based meals program. She moves around...

  • Bankruptcy reform is a key issue for credit unions in lame duck

    By Sarah Snell Cooke

    WASHINGTON-While the lame duck session of the 107th Congress opened last week and was only scheduled to end last Thursday, few believed that it would conclude in that time. Aside from the 11 remaining appropriations bills Congress needed to consider, some legislative items, including bankruptcy reform and IDAs, are expected...

  • CUNA creates new task force dealing with new accounting issues

    By Staff Writer

    WASHINGTON-With the scrutinizing of accounting practices and regulations in the wake of several scandals involving "new math," lawmakers and regulators are looking to clean up the mess and tighten oversight of accounting. In response, CUNA's Governmental Affairs Committee has created an Accounting Task Force (ATF) to help credit unions understand...

  • Pennsylvania's largest credit union going with PSCU Financial

    By David Morrison

    ST. PETERSBURG, Fla. - The $1.9 billion Pennsylvania State Employees Credit Union, the largest in the state, has agreed to have PSCU Financial Services process its credit and debit card transactions. The 272,000-member credit union, based in Harrisburg, PA., has more than 110,000 credit card accounts and 116,000 debit card...

  • Ohio credit unions target mid-2003 to open business services CUSO

    By Staff Writer

    MIAMISBURG, Ohio - The plan wasn't initially to form a business services CUSO, but the more seven Ohio credit unions talked about their business services strategies and the services they wanted to provide members, the more they realized they could best meet those goals by forming a business services CUSO...

  • NAFCU presents unique perspective of federals

    By Sarah Snell Cooke

    ARLINGTON, Va.-In a press audioconference after the NCUA budget hearing, NAFCU President and CEO Fred Becker pointed out the uniqueness of federal credit unions' position and the trade group's testimony. Specifically, Becker said in his testimony and during the teleconference that the federal government is subsidizing the supervision of privately...

  • SBA lending could be an opportunity for CUs, but CUs should understand the rules first

    By Staff Writer

    EAU CLAIRE, Wis. - It's not what credit unions know - or think they know - about SBA lending that can hurt them, it's what they don't know. That's why, say credit unions that are veterans in making Small Business Administration loans, newcomers should take it slow and first learn...

  • Sharp exchange over "killing CUs" marks California MSB Webcast debate

    By Jim Rubenstein

    POINT, Calif. - Anyone who doubted the sensitivity of the issue of credit unions switching to thrift charters only had to listen to the heated Webcast debate on Nov. 6 that pitted the president/CEO of the California Credit Union League against the president of a CU-converted San Diego bank. "Hans,...

  • Webster resignation right thing, former SEC Chief tells credit unions

    By Staff Writer

    LAS VEGAS -William Webster's decision to resign as chairman of a new national board to oversee corporate accountants was "the honorable thing" to do and will help the new agency's credibility, according to the former acting chairman of the Securities and Exchange Commission. "I think that was actually a very...

  • To become leading auto, real estate lenders requires CUs follow a new lending paradigm

    By Staff Writer

    NAPLES, Fla. - Think you can make your credit union successful simply through your investment portfolio, better think again. "It can't happen, it won't happen," Callahan & Associates President Chip Filson told attendees of CUNA's Lending Council Conference. "Lending is still key to credit unions' financial success, to their non-interest...

  • The search for succession solutions

    By Myriam DiGiovanni

    MADISON, Wis. - Shared management models were offered as possible solutions to the succession challenges facing credit unions at a colloquium sponsored by the Filene Research Institute and the Center for Credit Union Research. "The objective of this colloquium is to gather the available data on how management resources might...

  • NCUA budget briefing triggers wide variety of responses

    By Sarah Snell Cooke

    ALEXANDRIA, Va.-NCUA's second annual public budget briefing drew comments ranging from nothing to mild to fairly critical in follow-up letters. While NASCUS decided not to send a follow-up response to the meeting, NAFCU took the opportunity to criticize the speed of the agency's staffing reductions. CUNA also reemphasized the need...

  • For one credit union, low-income branch is a welcome adventure

    By David Morrison

    CHARLOTTE, N.C. - When the Greenville South Carolina Urban League initially asked John Carlson, CEO of the $472 million Charlotte-based Sharonview Federal Credit Union, to consult on getting a credit union started in the historic, but economically depressed, area known as West Greenville, Carlson did not expect that his credit...

  • Johnson tells credit unions not to get hung up on members' credit scores

    By Staff Writer

    NAPLES, Fla. - Credit unions, like most people, are adverse to taking risk, but one lending expert says CUs have to be more willing to take chances if they want to be known as the best. "Credit unions shouldn't just strive to be competitive, they should be known as the...

  • From eliminating holiday parties, to cutting benefits, CUNA Mutual announces cost-cutting plan; employee layoffs coming soon

    By Staff Writer

    MADISON, Wis. - It might be a rough holiday season for some CUNA Mutual employees. With a 2002 profit goal of $80 million, and forecasted profit of $55 million, CUNA Mutual is undergoing a series of cost-cutting moves to increase company profits. The company cited not only the 2002 profit...

  • CUNA is hush, hush on big CU CEO meeting

    By Staff Writer

    WASHINGTON-CUNA held a meeting recently in Washington with large credit union CEOs to encourage credit unions to become politically active. The meeting, which CUNA declined to discuss, took place November 7-8 with an attendance list comprised of the credit union community's billionaires club. According to one source that attended the...

  • FCUs can conditionally purchase SCCUs loans with prepayment penalties

    By Sarah Snell Cooke

    ALEXANDRIA, Va.-Federal credit unions can enter into loan purchase agreements with state chartered credit unions that charge prepayment penalties, so long as they do not take in fees from the prepayment penalty. According to NCUA Associate General Counsel Sheila Albin in a November 5 legal opinion letter, the state chartered...

  • Turning a loan transaction into a member relationship requires planning

    By Staff Writer

    NAPLES, Fla. - Loan transactions can be a catalyst for developing member relationships, but this can't happen without a CU implementing a plan that often requires a change in employees' habits and a CU's sales culture, Gloria Green, a CUNA Mutual Group marketing specialist told attendees at a breakout session...

  • United Datatronics receives CUNA Trainer of the Year Award

    By Staff Writer

    MADISON, Wis. - United Datatronics, Inc., of Tallahassee, Florida, was awarded CUNA's first-ever Trainer of the Year Award recently at CUNA's Experience Learning Live conference in San Diego, Calif. The award is part of a new trainers' awards program, recognizing excellence in credit union staff training and development. "We had...

  • CFA/CUNA to release holiday spending survey

    By Staff Writer

    WASHINGTON-The Consumer Federation of America (CFA) and CUNA announced last week that they are prepared to release their third annual survey on consumer holiday spending plans and concern over debt. CFA Executive Director Stephen Brobeck and CUNA Chief Economist Bill Hampel are scheduled to speak at the press conference. The...

  • NCRC and others to host financial literacy workshop

    By Staff Writer

    WASHINGTON-The National Community Reinvestment Coalition (NCRC), in conjunction with Citigroup and HomeFree-USA, hosted a two-day workshop last week aimed at providing community-based organizations training to start or expand financial education programs. The financial education curriculum focuses on helping the low-income become more financially secure. It will target money flow and...

  • 2002 loan growth poised to outpace 2001, early Callahan CU data shows

    By Staff Writer

    WASHINGTON - First Look third quarter data released by Callahan & Associates show credit union loan growth for 2002 should probably exceed 2001's results. Callahan's figures place loan growth at 6.3% year-to-date. Loan growth for the entire year 2001 was 6.7%. The First Look data is based on 1,192 credit...

  • Financial services sector briefs Treasury secretary on condition

    By Staff Writer

    WASHINGTON-According to CUNA Chairman Barry Jolette, also President and CEO of San Mateo Credit Union, information given at a meeting November 8, between the financial services sector and Treasury Secretary Paul O'Neill showed that credit unions are more confident in their handling of the slow economy and increased liquidity than...

  • New Texas CU to charter soon

    By Staff Writer

    HOUSTON - Texas will charter its 25th church-affiliated credit union when the Light Commerce Credit Union receives the formal nod from the state sometime around January 15, according to the Texas Credit Union League and Harlene Johnson, the credit union's future manager. "Of course nothing is certain," Johnson said, "but...

  • Holub nominated to sit on board to review Missouri study on financial education

    By Staff Writer

    ST. LOUIS - Rosie Holub, president/CEO, Missouri Credit Union System has been nominated to sit on a board that will review a study on financial education that will be conducted by the Missouri Council on Economic Education. The study will make recommendations to the governor and legislature on improving economic...

  • ISU Community CU name change in anticipation of mergers

    By Staff Writer

    AMES, Iowa - ISU Community Credit Union is changing its name in anticipation of mergers that will expand its geographic reach. The credit union, which originated with employees of Iowa State University, now becomes Greater Iowa Credit Union. "This name change is a critical feature of the credit union's strategic...

News Briefs

  • CSCU announces Consultant is finished

    By Staff Writer

    CLEARWATER, Fla. - Card Services for Credit Unions (CSCU), the 2,100 member association of credit unions that process card transactions through Certegy, has completed its Virtual Card Consultant, (VCC) an Internet-based tool that will help its members gain easier, faster and more timely access to their credit card data, the...

  • First loan made under Centrix Portfolio Management Program paid off on time and full term

    By Staff Writer

    ENGLEWOOD, Colo. - Four years ago, Centrix Financial LLC introduced its Portfolio Management Program (PMP) that allows credit unions to provide auto loans to members who have low credit ratings and are considered risky loan prospects. The financial and risk management company has announced that the first special financial auto...

  • CDFI coalition concerned about program changes

    By Staff Writer

    NEW YORK - Small credit unions are becoming concerned that the U.S. Department of the Treasury's Community Development Financial Institutions (CDFI) Fund may be eliminating its grant program aimed at small and emerging community development financial institutions, according to Cliff Rosenthal, executive director of the National Federation of Community Development...

  • Firefighter CUs pool resources to find solutions

    By Staff Writer

    ST LOUIS - The first annual national Firefighters Credit Union Conference was considered a huge success by attendees. Sponsored by William Rogers & Associates and Washington D.C.-based Support Processes Corporation, the conference was held in conjunction with the annual conference of the Combined Council of Automotive Credit Unions. In addition...

  • Credit union rep on FASB advisory council

    By Staff Writer

    WASHINGTON-Patelco Credit Union Senior Vice President and CFO Scott Waite has been selected as the first ever credit union representative on the Financial Accounting Standards Advisory Council (FASAC). Waite also serves as CUNA's CFO Council chairman and was nominated by CUNA. FASAC will meet four times next year to advise...

  • Street, president/ CEO of American First CU, elected ACUMA chairman

    By Staff Writer

    NEWPORT BEACH, Calif. - Robert Street, president/CEO, American First Credit Union, LaHabra, Calif. was elected the new chairman of the American Credit Union Mortgage Association. He has served as the vice chairman of the association for the past three years. The election was held during the association's annual meeting as...

  • CUNA Marketing Council seeks entries

    By Staff Writer

    MADISON, Wis. - The CUNA Marketing Council invites credit unions to submit entries to their Best Practices Forum. The Forum's purpose is to identify new approaches and help participants recognize their universal application to credit unions nationwide. Credit unions are invited to submit Best Practices in four categories: *Business Development:...

Tech Bytes

  • Aurum and Unisys partner on channel management solution

    By Staff Writer

    ATLANTA - Unisyst Corp. and Aurum Technology, which has been making in-roads with CUs, have formed a partnership to market a browser-based channel management solution that they say offers financials faster transaction processing, integrated sales and CRM functionality, and faster speed-to-market for new products and services. Unisys and Aurum will...

  • Sun more interested in core banking; CUs using its platform

    By Staff Writer

    ATLANTA - Sun Microsystems is getting deeper into the financial services industry. The tech giant said it has broadened its footprint into core banking systems, after initial success with its Retail Banking, Sun system. Sun has seen a number of financials begin to run their systems on a Sun platform,...

  • Experion Systems, which has had success with a number of large CUs, wins CUNA Tech Council's Best-in-Show at BAI

    By Staff Writer

    ATLANTA - For BAI Retail Delivery first-timer and CUNA Technology Council Chairman Jim Morrell the conference is well worth the while of credit union folks, though he was surprised by the amount of focus on ATMs. "It was my first BAI show experience. I did not know there was so...

  • BAI Retail Delivery Wrap-Up

    By Staff Writer

    ATLANTA - With more than 350 CU professionals in attendance, BAI's Retail Delivery Conference is being discovered by the CU industry. As usual this year's conference included a number of tech announcements from the vendors. Here's a look at some of the bigger ones.

  • Clarke American launches ExpertChecks.com

    By Staff Writer

    ATLANTA - Check printer Clarke American introduced ExpertChecks.com, an online solution to help business customers reorder commercial check products. At www.expertchecks.com businesses can reorder checks at any time. Financials can also link to the site to create additional traffic on their sites.

  • Almost half of financials looking to replace core systems; concerned about CRM

    By Staff Writer

    ATLANTA - Here's some good news for core DP vendors looking to find more clients. According to a study by I-flex solutions, 48% of financial services institutions are considering replacing their core banking solutions. Interestingly, the survey was actually conducted on the show floor of the conference. The survey also...

  • S1 updates business, personal banking solutions

    By Staff Writer

    ATLANTA - S1 Corporation announced the availability of S1 Business Banking 1.2 and S1 Personal Banking 1.2. The business banking solution features cash management functionality with channel integration and self-service features, making it a fit for small-to mid-size businesses, said S1. New features include online customer enrollment services for accounts,...

Briefs

  • Corporate Central fills empty board slot

    By Staff Writer

    HALES CORNERS, Wis. - At its October Board meeting, the board of the $1.5 billion Corporate Central Credit Union (formerly Wisconsin Corporate Central CU) unanimously chose Richard A. Koenig, President and CEO of Milwaukee Metropolitan Credit Union, Cudahy, WI, to fill the unexpired term of Carol D. Schneider, who has...

  • VolCorp settles in to new headquarters

    By Staff Writer

    NASHVILLE, Tenn. - The $1 billion Volunteer Corporate CU has gone Nashville. The corporate moved from its Brentwood headquarters to a new 18,600 facility in Nashville. The brand new building cost about $1.8 billion. "It's a great facility. We purchased the land two years ago. It took about a year...

  • SunCorp and ISI conduct first trade through Corporate Agent Program

    By Staff Writer

    LENEXA, Kan.- CU Investment Solutions (ISI), a wholly-owned subsidiary of U.S. Central, has made its first trade with a natural-person CU through SunCorp. With the non-compete agreement with CNBS dissolved, U.S. Central, through its subsidiary, can now offer brokerage services to natural-person CUs. Arkansas Valley Federal Credit Union, located in...

  • Bolivian CU reps visit U.S. Central, Corporate One

    By Staff Writer

    LENEXA, Kansas and COLUMBUS, Ohio - U.S. Central and Corporate One FCU recently played host to Bolivian CU reps. The World Council of Credit Union's (WOCCU) project director in Bolivia, Julio Fernandez, visited the two to get educated about the about the credit union industry in the U.S., and the...

  • EasCorp taps DeWoskin for silver anniversary conference

    By Staff Writer

    WOBURN, Mass. - The $1.3 billion EasCorp recently announced that the keynote speaker for its 2003 Partnership Conference and 25th Anniversary Annual Meeting, on April 29, will be Dr. Ken DeWoskin, partner with PriceWaterhouseCoopers LLP. DeWoskin is well-known for his work in emerging market economies, and is currently responsible for...

Letters to the editor

  • Maybe CUs should rethink their position on bankruptcy reform

    By Staff Writer

    I have been reading with interest the articles containing charges and counter-charges about bankruptcy legislation and whether or not credit unions should be supporting the current version of the bill. State Employees CU, N.C. President Jim Blaine in expressing his position, ascribed no negative motivation on the part of credit...

Opinion

  • Part 704: Credit quality is not compromised

    By Staff Writer

    In October, the NCUA Board approved final revisions to Part 704, the regulation that governs corporate credit unions. The major changes in the regulation are in the areas of capital, credit concentrations, and credit risk. From corporates' perspective, the biggest accomplishments in the regulation include dramatic improvements in the following...

  • Consolidation among corporate credit unions is the first piece of the puzzle

    By Staff Writer

    While much of the credit union community is buzzing about how many corporates will exist in five years, very few people seem to be focusing on the more important question of what happens to corporate credit unions after the dust settles. Many of the corporates are positioning themselves to be...

Publisher's Column

  • Elections catapulted credit unions into big leagues

    If there was any doubt that credit unions have once and for all shed their cautious approach to bare knuckle politics, and seemingly overnight become a major player in the rock `em, sock `em political action process, there should be none after analyzing the outcome of the state and national...

People

  • EAST

    By Staff Writer

    Western Division Credit Union, Williamsville, NY, has appointed Craig Mellenthien president. Atlantic Regional Federal Credit Union, Brunswick, Maine, has named Jenna McGahey Glenn vice president of lending. First Atlantic Federal Credit Union, West Long Branch, N.J., has named James McPaul assistant vice president of information technology. Chartway Federal Credit Union,...

  • WEST

    By Staff Writer

    National 1st Federal Credit Union, Santa Clara, Calif., has named Edward F. Machado vice president, information technology. Columbia Credit Union, Vancouver, Wash., has named Amber L. Curtain Tri-Mountain branch manager. North Island Financial Credit Union, Chula Vista, Calif., has named Scott Williford vice president of product development. CommonWealth Central Credit...

  • SOUTH

    By Staff Writer

    Carolina Trust Federal Credit Union, Myrtle Beach, S.C., has promoted the following employees: Jerry M. Miller to senior vice president/chief operating officer; Todd Harms to vice president sales/development/ human resources; Jim Coulter to vice president technology; and Kathy Bennan to assistant vice president consumer lending. Health Services Credit Union, Jacksonville,...

  • VENDORS

    By Staff Writer

    Members Mortgage, a credit union mortgage provider, has promoted Fran Geary to senior vice president training; Stanley Kutzko to senior vice president research/ development; and Daniel Hanlon to senior vice president business/ development. Pinnacle Financial Strategies, a technology and software solutions provider, has named Joe Batten implementation team project manager....

  • MIDWEST

    By Staff Writer

    Purdue Employees Federal Credit Union, West Lafayette, Ind., has named Bob Falk vice president of lending. Community First Credit Union, Appleton, Wis., has promoted Laura Heuer to vice president/controller and Tammy Weickert to assistant vice president accounting. In addition CFCU has named Laurie Dennee vice president human resources. MidWest Financial...

  • IN MEMORIAM

    By Staff Writer

    Credit Union Affiliates of New Jersey, Hightstown, regretfully announces the passing of longtime Fort Dix Federal Credit Union Board President John Kerner. Kerner served on the board for over 39 years and was known for his dedication to the credit union movement. Kerner is survived by his wife of 60...

Looking Back

  • Credit Union Times Vol. 9, No. 46 November 18, 1998

    By Staff Writer

    Looking back four years ago finds a Utah judge ruling in favor of the Utah Bankers Association in a lawsuit filed against the Commissioner of the Department of Financial Institutions G. Edward Leary and 11 community chartered credit unions to limit the membership base of community charted credit unions to...

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