Credit Union Times Magazine July-09, 2003

  • Connecticut CU Reaches Out to State's Expanding Hispanic Population Through Web Site

    WALLINGFORD, Conn. - New London County in eastern Connecticut is no longer the predominantly white, English-speaking population it was in the late 1930s when Charter Oak FCU was chartered as Electric Boat Community FCU. In just over the past 10 years, the Hispanic population of the county has grown by...

  • Filene's Study Reveals Surprising Youth Wants

    BOCA RATON, Fla. - What credit unions don't know about the under-30 age market could hurt them. Credit union attendees at an interactive workshop entitled "Attract and Retain Young Adult Members", at the CUNA Mutual Discovery Conference here rated their youth outreach efforts so far a "C". According to Filene's...

  • CUNA Mutual Wants CUs to Get More Aggressive on the Home Loan Front

    BOCA RATON, Fla. - CUNA Mutual President/CEO Mike Kitchen said he commends credit unions for opening up new lending doors through indirect lending and business lending, but he's urging credit unions to get more aggressive with all consumer loans - especially home loans. Kitchen believes not enough credit unions are...

  • Lawmakers Introduce FCRA Reauthorization Bill as Administration Takes its Position

    WASHINGTON-Legislation to make the expiring federal preemptions in the Fair Credit Reporting Act permanent was introduced recently by House Financial Institutions Committee Chairman Spencer Bachus (R-Ala.) and three other legislators from both political parties. On the heels of that action came the statement by the administration, via Treasury Secretary John...

  • Experts Warn CUs Not to Stop Promoting Debit Transactions Because of New Interchange Rates

    ARLINGTON, Va. - Changes to the rules governing debit card acceptance and doubt about debit card interchange rates have led some banks that issue VISA and MasterCard's debit cards to recently announce delays or even cut backs on their debit marketing and rewards programs. But card industry executives that work...

  • NAFCU Shows Net Profit in 2002; Dues Freeze Still in Place

    ARLINGTON-NAFCU started 2003 off in the black, according to the organization's recently released annual report. NAFCU's operating expenses reached nearly $2.5 million in 2002, up slightly from $2.2 million the previous year. Additionally, the trade association's "changes in net assets" totaled $775,993. According to NAFCU Director of Research and Analysis...

  • CU Trades Give Thumbs Up to Treasury Check Proposal

    WASHINGTON-NAFCU and CUNA recently conveyed their overall approval of Treasury's proposed rule aimed at balancing the demands of the federal check disbursing system with the structure for commercial checks in separate comment letters. "In order to achieve this balance, the proposed rule sets a certain date by which all Treasury...

  • Glimpse at CU Future?

    CHARLOTTE, N.C. - In what may be the start of a growing credit union trend Charlotte Metro Credit Union has named Elizabeth Ramos as its new Manager of Latino Relations. "The Spanish-speaking community has been important to our credit union for some time", said CMCU Vice President of Marketing, Deb...

  • CUNA Jumps in mix on ID Theft Education

    MADISON, Wis.-CUNA's Center for Professional Development is hosting a two-part identity theft eSeminar this fall. On September 30, the first program will address the ease with which identity thieves can obtain consumers' personal information via pretext calling and why victims can never fully recover their identities. The second session, "Identity...

  • Direct Marketers Should Keep Eye on Target

    BOCA RATON, Fla. - Creativity isn't everything when it comes to direct marketing. According to a group of experts at the CUNA Mutual Discovery Conference success in direct marketing depends 50% on the target market; 20% on the offer; 20% on the timing and only 10% on the creative. For...

  • CU*Answers Partners with Fuze

    KENTWOOD, Mich. - CU*Answers has formed a strategic partnership with Fuze Digital Solutions to use the Fuze Q&A Suite internally and to re-sell Fuze MemberLink to its credit union customers. "Our partnership with Fuze will help bring our client service and product offerings to the next level and to extend...

  • MasterCard's Preferred Rewards Emphasizes Flexibility

    PURCHASE, N.Y. - MasterCard's new Preferred Rewards program, which is targeted at medium sized and smaller card issuers, emphasizes card issuer flexibility to increase its appeal to as many smaller institutions as possible, according to a MasterCard executive. The new program will not require MasterCard issuing institutions to sign up,...

  • MECU Teamwork Sparks Day of Caring; Community Involvement Starts at the Top at this Credit Union

    BALTIMORE, Md. - At Municipal Employees Credit Union of Baltimore teamwork is an action verb. Everyone from staffers and senior management to board members, literally work together both in and out of work. "It started with establishing an employee enrichment committee to organize our first employee picnic," said MECU President/CEO...

  • Retirement Savings Charts `Going in the Wrong Direction'

    WASHINGTON- Are your members saving enough for their retirement? Probably not, according to Don Blandin, president of the American Savings Education Council. In fact, Blandin says, "The charts are going in the wrong direction." He's referring to the latest Income of the Aged Chartbook which shows 20% of the elderly...

  • Senate Receives Much of the Same Reg Relief Advice from Dollar as House

    ALEXANDRIA, Va.-Echoing many of NCUA's earlier thoughts on the issue of regulatory relief, Chairman Dennis Dollar has written back to Senate Banking Committee Chairman Richard Shelby (R-Ala.) regarding his May 23 request for NCUA's opinion on the matter. "NCUA continues to believe that legislation to reduce regulatory burden will positively...

  • University of Iowa Community Credit Union Senior Vice President Leaves to Head Bank Credit Union Tried to Buy

    DES MOINES, Iowa - In an ironic twist of fate, a senior vice president at the University of Iowa Community Credit Union has been hired as the market president at Hawkeye State Bank - the same institution the credit union sought to buy earlier this year but was thwarted by...

  • WOCCU's New Chairman - A Different Type of "Retirement"

    BRISBANE, Australia - Bobby McVeigh considers himself a person who "has not lost his passion for caring about people." He'll have the opportunity to demonstrate that as the new chairman of the World Council of Credit Unions. McVeigh, the former first vice chairman of the organization and a WOCCU director...

  • While Competing and Consolidating, Corporates Are Also Partnering

    WEST PALM BEACH, Fla. - Yes corporates are competing and yes they are consolidating, but what gets less attention is how much they are cooperating these days. The network has had a flurry of partnerships and strategic alliances of late, and many leaders believe it is the wave of the...

  • Participation in FHLB by Non-Federally Insured CUs Among NASCUS' Reg Relief Priorities

    ARLINGTON, Va. - Noting its support of the amendments to the Federal Credit Union Act that were included in the House version of proposed regulatory relief legislation, H.R. 1375, NASCUS provided Senate Banking, Housing, and Urban Affairs Committee Chairman Richard Shelby (R-Ala.) with its list of regulatory relief priorities the...

  • OSI to Acquire Liberty FiTECH; Companies Form Strategic Partnership

    GLASTONBURY, Conn., and MOUNDS VIEW, Minn. - In yet another credit union data processing merger, Open Solutions, Inc. is acquiring Liberty FiTECH in a deal that also creates a strategic alliance. Liberty FiTECH is the data processing unit of Liberty Enterprises. Based in Atlanta, it employs about 100 people. It...

  • NCUA Board Takes Care of Housekeeping in Lightning Fast 23-minute June Meeting

    ALEXANDRIA, Va.-In sharp contrast to the highly anticipated July board meeting, the NCUA Board considered three minor, uncontroversial issues during its 23-minute June board meeting. July's board meeting is expected to raise a few eyebrows with Treasury and bankers regarding the member business lending rule, which the agency and trade...

  • `Money on the Move' Will Go Elsewhere if Credit Unions Don't Offer Trust Services, Experts Say

    BOCA RATON, Fla. - With economists predicting between $12 trillion and $17 trillion will pass from one generation to the next in the coming decade, credit union members will need an effective way to accommodate that "money on the move," according to some industry watchers. More than 40 participants attended...

  • Mini Lessons for Credit Unions? Taking a Page from BMW Could Put Some Cool in CU Marketing

    WEST PALM BEACH, Fla. - While credit unions may not have as much "open road" to play up as a car company, the Mini Cooper ads show just how far originality can take a brand. "One of things that stood out right away is that Mini is not trying to...

  • NCUA Cancels Letter to CUs in light of PATRIOT Act Rules

    ALEXANDRIA, Va.-NCUA issued a Letter to Credit Unions (03-CU-10) withdrawing a previous letter regarding the Federal Bureau of Investigations' Control List in deference to new USA PATRIOT Act regulations. NCUA Chairman Dennis Dollar signed a Letter to Credit Unions last month canceling Letter No. 01-CU-18, dated October 2001, which included...

  • New California Law Requires Notification if Computer Systems are Hacked

    SACRAMENTO, Calif. - Credit unions serving members in California must now promptly notify them if computer hackers gain access to the member's personal information. Under a new state law that went into effect July 1, credit unions, along with other businesses, state agencies and individuals with customers in California, must...

  • Oregon Credit Unions Lobby Legislators Over Taxation Issue

    SALEM, Ore. - Hoping to head off any state legislation that would impose taxes on credit unions, officials from credit unions throughout Oregon held a special one-day rally at the capitol to lobby lawmakers. The gathering on June 26 came just one day before the Oregon Legislature was scheduled to...

  • OFHEO: Freddie, Fannie `Adequately Capitalized' at End of First Quarter 2003

    WASHINGTON - The Office of Federal Housing Enterprise Oversight (OFHEO), the regulating agency for Freddie Mac and Fannie Mae and which has been under the microscope since last month when Freddie, reeling from its announcement of accounting irregularities, subsequently went through a major overhaul of its management team, reported that...

  • Another Credit Union Joins CUSC In Connecticut

    GROTON, Conn. - Another credit union has joined Charter Oak FCU as the second credit union in Connecticut to join with the Credit Union Service Corporation in shared branching. The $418 million Charter Oak formed a wholly owned service organization, called SCCT, to help facilitate the shared branching effort in...

  • Moderate Growth in CRM Market Masks Big Move from In-house to ASP Use

    BOSTON - The steady-as-she-goes growth of the worldwide customer-relationship management market is masking a sea change in how the technology is being paid for and deployed, according to a new report. "Purchasing of new CRM application software will rapidly transition to an application service provider (ASP), subscription-oriented model," says Hugh...

  • Callahan's 2003 Technology Survey Now Available

    WASHINGTON - Callahan & Associates has released its 2003 Credit Union Technology Survey. It features market share breakdowns for the leading providers in each technology for providers serving the 2,974 credit unions with over $25 million in assets at year-end 2002. A new consolidated vendor grid is designed to quickly...

  • HUD Updates Appraiser Qualification, Appraisal Reporting Requirements

    WASHINGTON - Changes implemented by the Department of Housing and Urban Development to the agency's qualifications for appraisers for placement on the FHA Single Family Appraiser Roster became effective June 16. The final rule provides for: * a 12-month phase in of Appraiser Qualifications Board requirements for appraisers listed on...

  • CUNA Approves of NACHA "Return Reason" Code Compliance, but not Effective Date

    WASHINGTON-CUNA has written a comment letter to NACHA-the Electronic Payments Association-requesting that it extend the effective date for its proposed "return reason" codes rule to Sept. 10, 2004. CUNA Assistant General Counsel Michelle Profit wrote that CUNA supports the proposed amendments "for operational efficiency," but changing the effective date would...

  • A Breezy June Meeting; July Should Be Tougher

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  • Is "IBM" in IBM Employees CUs Endangered Species?

    WEST PALM BEACH, Fla. - Don't look for IBM to be included in the name of too many of those credit unions that serve IBM employees these days. Of the total of 19 credit unions that serve IBM employees only three have kept the IBM in their names. Name change...

  • Two Card Portfolios Head to Elan

    PORTLAND, Ore. - AssetExchange, a leading broker of credit union card portfolios, has announced the sale of two more portfolios. The $111 million Alliance Credit Union, based in Fenton, Missouri and the $8.5 million P & C Employees Federal Credit Union, based in Syracuse, New York sold their portfolios to...

  • 2002 was a Strong Year for Corporates

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  • Retired Senator Thurmond Dies

    WASHINGTON-Retired Senator Strom Thurmond (R-S.C.), the longest serving senator, died the evening of June 26, just six months after his retirement, at 100 years old. In his lifetime, Thurmond served more than 45 years in the Senate, after an unsuccessful bid as a third party president in 1948. He also...

  • Prime Alliance Solutions First Half 2003 Results Exceed All of 2002

    TUKWILLA, Wash. - Prime Alliance Solutions has released its results for the first half of 2003, and by in the words of the CUSO's President/CEO Joe Brancucci, it's already turning out to be "an exceptional years" for the company and the CUSO's credit union customers. In the first six months...

  • CUSO Mortgage Now Known as RBC Mortgage - Credit Union Division

    CHICAGO - Four years after becoming a subsidiary of RBC Mortgage Company, CUSO Mortgage has changed its name to RBC Mortgage - Credit Union Division. A CUSO release said the name change will capitalize on the CUSO's relationship with the parent company RBC Financial Group, the tenth largest financial services...

  • Edwards Named New President/CEO of XP Systems

    MOORPARK, Calif. - Credit union data processor XP Systems has a new leader, but he's certainly not new to XP's clients. XP Systems, a Fiserv subsidiary and the processor for 300 credit unions, has named John Edwards, previously SVP of Business Development for XP, as the company's new president. Edwards,...

  • ACB Commends Lawmaker for Sub S Hearing

    WASHINGTON-Bankers are keeping their political capital going strong in Subchapter S reform. In a June 27 letter, America's Community Bankers applauded House Ways and Means Subcommittee on Select Revenue Measures Chairman Jim McCrery for holding a hearing on Subchapter S reforms. "That hearing clearly illustrated the limitations of the current...

  • VISA Changes Interchange Structure

    SAN FRANCISCO - VISA USA has done more tinkering with its interchange rates in the wake of the settlement of its anti-trust case with retailers. As part of that settlement, both VISA and MasterCard agreed to cut their debit interchange rates. But in its announcement of the debit interchange rate...

  • Where Is Debit Interchange Headed?

    Although some credit unions believe that the one-third interchange cut for signature debit transactions would remain in place, industry executives say the a new interchange rate for signature debit is being negotiated now and will go into effect after Jan. 1, 2004. The 33% rate cut in the interchange rate...

News

Tech Bytes

Opinion

News Briefs

  • Credit Union Card Portfolio Drew a 26% Premium Card, Executive Says

    THOUSAND OAKS, Calif. - A credit union card portfolio characterized as "small but high quality" brought a 26% premium over book value, according to R.K. Hammer, a noted card portfolio evaluator. According to Hammer, six card portfolios worth over $15 million sold in the second quarter of 2003, on top...

  • CCUL Gives NCUA High Marks for Deposit Parity Proposal

    RANCHO CUCAMONGA, Calif. - The California Credit Union League congratulated NCUA for proposing amendments to the share insurance rules that would give credit union members the same extended grace period in deposit coverage that customers of federally insured banks receive when two institutions where they have deposits merge, or when...

  • NSC Selects BSI as Preferred Partner

    WASHINGTON - NAFCU Services Corporation(NSC), has selected Bankers Systems Inc as its preferred partner for USA PATRIOT Act solutions. Effective October 1, 2003, it is mandatory that credit unions prepare their staff and infrastructure to be in compliance with Section 326 of USA PATRIOT Act rules and regulations. "Now that...

  • Carolinas CUF Honors Retiring NCCUL President with Spiritual Center

    PINEHURST, N.C. - Campers at the Victory Junction Gang Camp will now have a Spiritual Center thanks to the Carolinas Credit Union Foundation. CCUF will build the Larry and Hanna Johnson Spiritual Center in honor of retiring North Carolina Credit Union League President Larry Johnson. "This Spiritual Center has been...

  • Ernst & Young Honors Digital Insight CEO

    CALABASAS, Calif. - Digital Insight President/CEO John Dorman has been presented the 2003 Greater Los Angeles Ernst & Young Entrepreneur Of The Year Award for Technology. The award honors outstanding entrepreneurs who have demonstrated excellence and extraordinary success in such areas as innovation, financial performance, and personal commitment to their...

  • Louisiana CUs Raise $54,000 for CULAC

    BATON ROUGE, La.-Louisiana credit unions raised more than $54,000 this year as part of their CULAC Challenge to raise money for CUNA's Credit Union Legislative Action Council. The CULAC Challenge is a competition held between the Louisiana Credit Union League's nine chapters from Jan. 1 through June 19, the last...

  • Check Truncation Legislation Moves Full Steam Ahead

    WASHINGTON-The Senate gave the Check Truncation Act of 2003 (H.R. 1474) the green light when the bill passed the chamber by unanimous consent June 27. While credit unions already have the authority to truncate their checks and have done so for decades, the legislation provides for truncation more often and...

Briefs

  • Constitution State Corporate Gives Money and Tech to CIF

    WALLINGFORD, Conn. - Like other corporates, Constitution State Corporate has stepped up its contribution to the National Credit Union Foundation (NCUF) through a $500,000 investment in the Community Investment Fund (CIF), but that's not the end of Constitution's help to NCUF. Constitution is lending some of its tech prowess to...

  • Mid-Atlantic Corporate Announces Election Results

    MIDDLETOWN, Pa. - Mid-Atlantic Corporate FCU elected its board of directors on June 21. The following incumbents were re-elected to serve three-year terms: Treasurer Richard Burtnett of the Pennsylvania Grange FCU; Vice Chairman Bob Edmondson of Atlantic Credit Union; and Chairman J. Charles Forney, Members 1st FCU. Forney has served...

  • First Carolina Corporate Hits the Links for Charity

    GREENSBORO N.C. - The $2 billion First Carolina Corporate Credit Union raised $25,000 at its First Annual Charity Golf Classic on Sunday, June 22 at the Little River Golf Club in Pinehurst, N.C. Money was raised through sponsorship from First Carolina's credit union members and business partners. The money was...

  • Georgia Central Offers 2003 Network Security Seminar

    DULUTH, Ga. - Georgia Central wants its members to be secure. On July 16th, the $1.6 billion corporate is sponsoring the "2003 Network Security Seminar," at the Crowne Plaza Ravinia in Atlanta, from 10 a.m. - 3 p.m. Experts from Securadigm will discuss cyber-crime, viruses, and intrusion detection and offer...

  • Southeast Corporate Maintains `AA' Rating

    TALLAHASSEE, Fla. - Once again Southeast Corporate has received one of Standard & Poor's (S&P's) highest ratings. In a rating report dated June 18, 2003, S&P issued a rating of `AA/Stable/A-1+' to Southeast Corporate. In the report, S&P said: "The ratings on Southeast Corporate Federal Credit Union are based on...

Publisher's Column

  • Reader Puts Director Types Shoe On Other Foot

    A column earlier this year (April 16, 2003), describing different types of credit union directors I have observed over the years, brought a predictable response from both credit union directors and CEOs. Many directors didn't like it much. One found even the category titles (Givers, Takers, Zealots, Politicians, Power Brokers,...

People

  • EAST

    New Horizon Credit Union,Manassas, Va., has named N. Bradford May senior vice president/COO. Hudson Heritage Federal Credit Union, Newburgh, N.Y., has named Stephen Kirby executive vice president. New York State Credit Union League, Latham, has elected the following officers to its board: Entertainment Industries FCU President/CEO John C. Gibardi chair;...

  • MIDWEST

    Heritage Federal Credit Union, Newburgh, Ind., has named Jeffrey Odom assistant vice president. Glacier Hills Credit Union, West Bend, Wis., has appointed Dennis D. Degenhardt president/CEO. Capital Community Credit Union, Lansing, Mich., has named Denise Ronning business development manager. Three Rivers Federal Credit Union, Fort Wayne, Ind., has promoted Jim...

  • VENDORS

    Harland Financial Solutions, a financial solutions provider, has named Rick Martin Southeast regional sales manager. Allied Solutions, a provider of insurance services, has named Bob Vedder sales manager of the Tennessee, Alabama, Georgia, Mississippi, Texas and Arkansas territories.

  • SOUTHWEST

    Texas Dow Employees Credit Union, Lake Jackson, has named Matthew Diaz vice president of internal auditing and Carol Stryker vice president/chief information officer/chief financial officer. In addition TDECU has promoted Janice Arizmendi to vice president of human resources/chief of staff.

  • WEST

    Safe 1 Credit Union, Bakersfield, Calif., has named Cindy Wonderly chief financial officer. Wescom Credit Union, Pasadena, Calif. has named Vesceni Ramirez vice president of business and government affairs and Tom Orman vice president of real estate. Kitsap Credit Union, Bremerton, Wash., has named Deonne Edwards South Kitsap branch manager....

  • SOUTH

    Alabama Credit Union, Huntsville, has promoted the following employees: Kayce M. Bell to chief operations officer; Becky Farley to branch network coordinator; June Landrum to branch manager; Benson Bolling to manager of business and card services; Debbie Smith to Bryant Drive branch head teller; and Lara White to trainer. Central...

In Other News

  • Scholarships

    Robins Federal Credit Union, Warner Robins, Ga., has awarded scholarships to five high school seniors. Each year, Robins FCU selects the best of high school graduating seniors and awards them the honor of being a member of the Most Excellent Senior Team. Recipients will each receive a one-year, $1,000 scholarship...

  • Donations

    Newport News Shipbuilding Employees' Credit Union, Va., staffers have teamed up for the America Cancer Society's Relay For Life event. Dedicated team members spent five months collecting more than $13,000. From the participating 250 teams, NNSECU ranked in the top 10 teams in the amount of money raised. Its campsite...

Letters to the editor

  • Continuing to Make Annual Reports Better

    I and our credit union's marketing manager Cecilia Salinas appreciated Mike Welch's Publisher's Column in the June 11th issue regarding annual reports ("Most Important Annual Report Decision: Purpose"). For the first 26 years of our existence, our annual report was an eight-and-a-half by 11-inch sheet of paper folded in half,...

  • Mid-sized CUs' Survival Not at Risk

    I have to take exception to Mike Welch's June 18th column, "Middle-sized CUs Most at Risk of Survival." Let's see, our credit union is $50 million in assets ("the middle group") with 4,800 members (not a bad average balance), our assets have increased by over 30% during the last two...

In Memoriam

  • Nassau County Federal Credit Union Mourns Death of CEO

    WESTBURY, N.Y.- Credit Union Times was recently notified that Ralph W. Hillman, CEO of Nassau County Federal Credit Union, died on May 19, 2003. Hillman had a long history of serving credit unions and began his credit union career at Navy Federal Credit Union working as the youngest branch manager...

Publisher's Notebook

  • See It Here First

    As a publication that has as its main focus providing news of interest and value to credit unions, it shouldn't be surprising that Credit Union Times strives to be first when it comes to reporting all breaking news. To be able to do that, our editorial team has established an...

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