Credit Union Times Magazine May-07, 2003

  • Credit Union-Run Iowa Trust Bank Shows Steady Growth

    DUBUQUE, Iowa - It's a rare, probably unique breed among credit union entities - a national bank for CU trust services - but its organizers contend the venture, now in its third year, is succeeding surpassing $160 million in fiduciary assets under management. "This is a company that has gone...

  • Communicators FCU Hoping More Members Want to Bank the PrimeWay

    HOUSTON - Communicators Federal Credit Union is riding into the future with a new name -PrimeWay Federal Credit Union. Faced with a growing and more diverse membership, the 65-year old $176 million credit union became the latest player in the increasingly popular name change game. "Of course we had some...

  • CUNA Takes a Seat at Senate Small Business Committee Roundtable

    WASHINGTON-Lafayette Federal Credit Union Board Member Michael Hearne represented CUNA last week during a roundtable discussion set up by the Senate Small Business Committee and its chair, Senator Olympia Snowe (R-Maine) regarding the Small Business Administration's 7(a) loan program. No official statements were provided during the roundtable to promote candid...

  • Citing Airline Slump, Northwest Airlines Moves to Evict NWA FCU for Refusing to Pay Royalty Fees

    MINNEAPOLIS - In what's being described as a cost-cutting move to weather the airline industry's economic slump - and a "bad public relations campaign" by critics - Northwest Airlines recently said it would be forced to evict NWA Federal Credit Union from all of its properties if the credit union...

  • CUs have Heard of SSCRA, but what is USERRA?

    WASHINGTON-Credit unions across the country have been boning up on their knowledge of the Soldiers and Sailors Civil Relief Act, but what happens when reservists return from Iraq and want their jobs back? As employers, the credit union community needs to understand service personnel rights under the Uniformed Services Employment...

  • CEFCU Opens Home Ownership Doors with Downpayment Plus Program

    PEORIA, Ill. - CEFCU is still the only credit union in the state providing financial assistance to qualified low income homebuyers through the Downpayment Plus program, a joint program of the Federal Home Loan Bank of Chicago and the Illinois League of Financial Institutions. This year the $2.4-billion credit union...

  • Indiana Credit Unions Host First-ever Online Auction

    INDIANAPOLIS - Indiana credit unions have teamed up to raise money for the Children's Miracle Network Riley Hospital for Children by launching the Credit Unions for Kids Indiana Online Auction. In a first for credit unions here, a total of 86 items such as dinner certificates, golf passes, sports tickets,...

  • CU Share Growth Continues in to 2003

    WASHINGTON - The share growth credit unions witnessed the past two years showed no signs of abating in the first quarter of 2003, according to Callahan's First Look. The first quarter is typically the strongest quarter for share growth, and the first three months of this year were no exception....

  • Community First Credit Union Partners for Community Center

    APPLETON, Wis. - Community First Credit Union has formed an alliance with three area nonprofits to open a new Community Partnership Center. A former credit union branch facility is now home to the Volunteer Center of East Central Wisconsin, the Soleburner Run/Walk, which benefits the American Cancer Society, and the...

  • NAFCU/PAC Raising Funds at Record Pace

    ARLINGTON, Va.-NAFCU's emphasis on increasing its political action committee is working like a charm to fatten the lobby group's coffers. As of the end of last week, NAFCU/PAC had raised more than $75,000 for 2003, according to NAFCU Director of Legislative and Political Affairs Brad Thaler. These funds are off...

  • Analysts Split On MasterCard Settlement

    NEW YORK - Card industry analysts have split on what MasterCard's recent settlement in a landmark card policy case means for the case going forward. MasterCard settled its part of the lawsuit before the trial actually began on April 28 for an estimated $1 billion, according to published media reports....

  • Ent CEO Warns Against `Out-State' Real Estate Loans

    COLORADO SPRINGS, Colo. - When it comes to making real estate loans or joining participations, "stay local or at least within your own state." That's the advice of Charles F. Emmer, president and CEO of Ent Federal Credit Union here, who spoke on a business loan panel at the annual...

  • Final Customer Identification Rules Under the PATRIOT Act Out

    WASHINGTON-NCUA, together with the Treasury Department, Treasury's Financial Crimes Enforcement Network, and six other federal financial regulators recently issued final rules establishing procedures for verifying a new accountholder's identity. The final rules will require financial institutions to establish a Customer Identification Program for obtaining identifying information from customers opening new...

  • Texas Jump$tart Breakfast Highlights Financial Literacy Programs

    GRAND PRAIRIE, Texas - Today's youth must learn sound financial principles, because they will not have access to many of the financial benefits afforded previous generations, Dallas Morning News Business and Finance Editor Scott Burns told attendees of a Financial Literacy Month Celebration Breakfast last week. The breakfast was hosted...

  • Texas Credit Union Foundation Receives Financial Education Grant

    FARMERS BRANCH, Texas - The Texas Credit Union Foundation has been awarded a $118,000 grant from Household International, a subsidiary of HSBC Holdings plc, to provide youth financial education. The grant is part of Household's nationwide effort to better inform and educate young people, senior citizens, and low- to middle-income...

  • Sun Bancorp to Acquire Sentry Trust Co., One of First Trust Firms Serving Credit Unions

    LEWISBURG, Pa.- Touted as being among the first trust companies to serve credit unions when it launched nearly six years ago, Sentry Trust Co. will be acquired by Sun Bancorp Inc. in a move that will fold the bank holding company's wealth management and retail investment departments into Sentry's existing...

  • Time Magazine Feature Highlights Credit Union-Bank Differences

    WEST PALM BEACH, Fla. - Credit unions may be growing accustomed to seeing their names in local newspapers because of their coverage of attempts by state bankers' associations to limit credit unions' field-of-membership expansion and service offerings. But now a major national business magazine, Time, has done a feature story...

  • Two Muslim Groups Working Toward Founding Credit Unions

    ARLINGTON, Va. - Two groups of Muslims, one in New York and one in Florida, are working toward founding credit unions that would like to organize along the principals of Islamic law, according to a consultant that has been helping them in their efforts. If they succeed, the new credit...

  • Space Coast CU New Headquarters a Hit with Members and the Community

    MELBOURNE, Fla. - Who knew that a huge glass and concrete headquarters would be welcomed here -apparently Space Coast Credit Union did. What could have been viewed as ostentatious has instead struck a balance and reinforced SCCU's presence as a part of the community here. SCCU President/CEO Douglas Samuels views...

  • Kansas CU Pushes `Reach Out' to Lower Bankruptcies

    WICHITA, Kan. - In a community reliant on the economic fortunes of the aircraft industry, Boeing Wichita Credit Union knows full well the difficulties of coping with bankruptcies and delinquencies. Late though it has made its "Financial Guidance" program a centerpiece of a program dealing with mounting layoffs. "We're pretty...

  • HUD Media Campaign Takes Aim at Housing Discrimination

    WASHINGTON - Housing and Urban Development Secretary Mel Martinez used the 35th anniversary of the Fair Housing Act as a backdrop to the agency's unveiling of a new multimedia, cutting edge campaign designed to fight housing discrimination. The print and broadcast campaign debuted on April 29. The Fair Housing Act,...

  • Lawmakers Addressing Banking/CU Issues Return from Spring Recess with a Bang

    WASHINGTON-In the time between the congressional spring recess that recently ended and the Memorial Day recess at the end of May, Congress is expected to consider several issues affecting credit unions and other financial institutions. CUNA Vice President of Legislative Affairs and Senior Legislative Counsel Gary Kohn said that he...

  • NAFCU Members Give Trade Group High Ratings

    ARLINGTON-An independent survey firm found that NAFCU members place a high value on their membership in the trade association, according to a survey sponsored by NAFCU. The survey, conducted by Schmidt Consulting Services of Pittsburgh, revealed that 84% of NAFCU-member CEOs said the overall value for dues paid was "outstanding"...

  • NWA FCU Refutes Northwest Airlines' Points on Justifying Eviction, Name Use

    MINNEAPOLIS - After the media storm surrounding Northwest Airlines' plans to evict NWA Federal Credit Union from its properties, the airline sent out an expanded statement on April 29 detailing why it felt it had to proceed with the non-renewal of leases. On its Web site, NWA FCU responded to...

  • Varying Overdraft Coverage Permissible, but Beware of ECOA

    ALEXANDRIA, Va.-NCUA Associate General Counsel Sheila Albin wrote in a recent legal opinion letter that federal credit unions may adopt overdraft policies allowing for different coverage levels for different members. She said the agency had no legal problems with such a program, so long as the credit union's policy caps...

  • Corporates and CUSOs Can Assist CUs in Purchasing, Safekeeping of Cds

    ALEXANDRIA, Va.-Corporate federal credit unions and their credit union service organizations are permitted to assist member credit unions in purchasing and safekeeping of CDs issued by banks under NCUA regulation, NCUA Associate General Counsel Sheila Albin wrote in a recent legal opinion letter. Albin told Empire Corporate Credit Union Senior...

  • ASI's Equity Ratio to Exceed NCUSIF for 2003

    ALEXANDRIA, Va.-NCUA Chief Financial Officer Dennis Winans announced at the NCUA Board's April meeting that he anticipates 10% savings growth, bringing the National Credit Union Share Insurance Fund's equity ratio down slightly to 1.26% by year-end 2003 from 1.27% the previous year. American Share Insurance quickly came out with a...

  • ACH Payments Continue to Grow in Popularity

    ORLANDO, Fla. - The number of Automated Clearing House Payments originated by commercial financial institutions in 2002 increased by 13.6% from the previous year, demonstrating, says NACHA - The Electronic Payments Association, the growth of electronic payments in the U.S. NACHA released the data at its Payments 2003 Conference here....

  • Truliant FCU Offering Members "High-Tech, High Touch"

    MATTHEWS, N.C. - Truliant Federal Credit Union has kicked off the grand opening celebration of a new state-of-the-art branch here. The "high-tech, high-touch" facility features services that include VideoLink, a live, video teleconference where members can quickly apply for a loan and talk with a loan officer at the credit...

  • Other Winners and Losers?

    Some of the parties who are watching the VISA v. Wal-Mart case most closely include executives from Memphis, Tennessee-based Concord EFS and the Denver, Colorado-based First Data Corporation. If regulators sign off on their merger, the joint Concord/First Data firm will control 75% of a debit transaction market that, thanks...

  • Treasury to Unveil New $20 in May

    WASHINGTON-The Treasury Department's Bureau of Engraving and Printing plans show off its most recent redesign of the $20 bill to enhance anti-counterfeiting measures May 13. The new design will affect $100, $50, and $20 notes, Treasury said; $10s and $5s are still under consideration, but the $2 and $1 will...

  • CUs' Capital Needs Could Benefit From Use of Bank Strategies

    MADISON, Wis. - A new study released by the Filene Research Institute finds credit unions could use several strategies already used by banks to meet their capital requirements. In particular, the study - Capital Instruments for Credit Unions: Precedents, Issuance and Implementation finds - cites the use of trust preferred...

  • Service CU Takes Seminars to the Web

    PORTSMOUTH, N.H. - Service Credit Union is offering members a series of free online seminars on ways to manage money. The 30-minute seminars can be accessed through an 800 number for members in Germany as well as the United States. Past seminars have included such topics as "Managing investments in...

  • NCUA Appointees List Continues to Grow

    ALEXANDRIA, Va.-Gilbert Gonzalez, deputy undersecretary for policy and planning for the U.S. Department of Agriculture Rural Development Office, is the most recent name to be added to a list of potential NCUA Board appointees, according to a source knowledgeable about the NCUA Board appointment process. The White House began vetting...

  • Maine CUs' Volunteer Program Turns One

    WESTBROOK - Credit Unions Share for ME turned one-year old during National Volunteer Appreciation Week. "Until Credit Unions Share for ME, much of the volunteering that credit unions did was anecdotal and hard to quantify," said Maine Credit Union League Director of Communications Jon Paradise. "This program starts to recognize...

  • NYIB Conference to Focus on Credit Union Stars of Tomorrow

    MADISON, Wis. - The National Youth Involvement Board is shining the spotlight on credit union youth during its Annual Conference here on August 6-9. The conference will promote effective ways for credit union volunteers to teach young people to manage their money wisely. Everything from marketing ideas and classroom presentation...

  • Pennsylvania Credit Union Association Holds First Annual Conference Under New Name

    PHILADELPHIA - After running its annual conference for 68 years as the Pennsylvania Credit Union League, the organization held its 69th annual conference and its first as the Pennsylvania Credit Union Association on April 24-26. The name change was approved by the members in November 2002, but it became official...

  • ABA Creates Business Methods Patents Advisory Group

    WASHINGTON-The American Bankers Association recently announced its creation of the ABA Business Methods Patents Advisory Group will pool information and resources for the banking industry in response to a growing interest in patent matters. Until 1998, the general rule was that a method of doing business was not patentable. However,...

  • CUNA Uses a Pen to Strike a Blow at Bankers' Attacks on CU MBL Powers

    WASHINGTON-CUNA President and CEO Dan Mica wrote a letter to the editor published in the April 25th edition of the American Banker countering a banker's accusation in an earlier letter that NCUA's proposed member business lending rule would take business loans from small banks. "The average credit union member business...

  • Credit Unions Pleased with Risk-Based Exam, NCUA Says

    ALEXANDRIA, Va.-In NCUA's first survey of its risk-focused examination program implemented last fall, 397 credit unions rated the new process a 4.63 out of a possible 5.00. "I am pleased with the early results of the risk-focused examination program and the communication process between examiners and credit union officials over...

  • Evangelical Christian Credit Union Promoting Church Growth

    BREA, Cailf. - Evangelical Christian Credit Union is doing its part in helping churches and ministries grow. Recently over 100 pastors and ministry leaders from Southern California attended the $1 billion credit union's first church development workshop. Dr. Stephen A. Macchia, president of Vision New England, presented "The Healthy Church:...

In Other News

  • DONATIONS

    Nazarene Credit Union, Brea, Calif., has donated five computers to the Los Angeles Grace Church of the Nazarene for its Woodcrest Christian School. The school is located in South Central Los Angeles. AmeriChoice Federal Credit Union, Mechanicsburg, Pa., has donated $1,200 to the Jake Gittlen Memorial Golf Tournament. The proceeds...

News

News Briefs

  • CUNA Mutual Launches Interactive Check Fraud Training Kit

    MADISON, Wis. - With check-fraud losses estimated at $12 billion to $16 billion annually nationwide, the CUNA Mutual Group has developed an interactive check-fraud training kit for its credit union Bond policyholders. Designed for front-line staff, the kit incorporates an interactive CD-ROM, facilitator guide, learner workbook and a direct link...

  • Kolhoff Named New Assistant Director of Michigan CU Division

    LANSING, Mich. - John Kolhoff has been appointed the new assistant director of the Michigan Credit Union Division by Ronald Jones, acting commissioner of the Office of Financial and Insurance Services. Kolhoff will report to division Director Roger Little. He will oversee credit union examinations and have other supervisory functions...

  • NCUA Vice Chair Johnson: CU MBL Can Help Boost American Economy

    OVERLAND PARK, Kan.-NCUA Vice Chair JoAnn Johnson told the Kansas Credit Union Association's governmental affairs luncheon that credit unions have a crucial role in boosting the nation's economy. As a Republican-appointee to the NCUA Board, Johnson said the president's jobs and economic growth plan "removes unnecessary barriers and will strengthen...

  • End of Annoying "Spam" Messages in Virginia?

    RICHMOND, Va. - With consumers fed up with the bombardment of junk bulk email known as "spam", Virginia legislators have taken a stand to help decrease it by passing a law that makes it a felony and includes penalties. The law applies to "spam" sent to or from the state...

  • N.Y. Governor to Nominate Taylor for state Banking Superintendent Spot

    ALBANY, N.Y. - Gov. George Pataki announced April 25 he plans to nominate Diana Taylor for Superintendent of the New York State Banking Department. Taylor would succeed Elizabeth McCaul who resigned in March after serving in the position since 1995, and interim Acting Superintendent Barbara Kent. Taylor currently serves as...

  • Economic Outlook to Come into Focus Gradually says Greenspan

    WASHINGTON - In his testimony to the House Financial Services Committee Federal Reserve Chairman Alan Greenspan was cautiously optimistic about the economy. He said the trends shaping the financial outlook will become more evident as economic tensions associated with the war in Iraq further unwind. "Unfortunately, the future path of...

  • Lawmakers Honored by Cooperatives

    WASHINGTON-In separate ceremonies last week, House Financial Services Committee Member Mike Oxley (R-Ohio) and Committee Member Doug Bereuter (R-Neb.) were honored with awards from cooperatives. CUNA was a sponsor of both awards. Oxley received the "Honored Cooperator" award from the National Cooperative Business Association for his continued commitment to cooperatives,...

Briefs

People

  • SOUTH

    Service One Credit Union, Bowling Green, Ky., has named Todd Watson Campus branch manager. Carolina Trust Federal Credit Union, Myrtle Beach, S.C., has named Brunson Loadholt, IV Lake City branch manager and Jackie Poston Johnsonville branch manager. Oklahoma Federal Credit Union, Oklahoma City, Board Chairman Raymond Kerbo has retired after...

  • WEST

    Riverside Employees Credit Union, Riverside, Calif., has promoted Marlene Juarez to vice president. Global Credit Union, Spokane, Wash., has named Nadja Coslic member service representative and Teressa Moore member service representative.

  • MIDWEST

    TopLine Federal Credit Union, Maple Grove, Minn., has named Valerie Sjoblom indirect lending manager. CEFCU, Peoria, Ill., has named Kristie James electronic funds transfer special projects manager and Valarie Mason credit projects manager. Michigan Credit Union League, Northville Township, has announced the following employees have been promoted: Ken Ross is...

  • VENDORS

    DEI, Inc., a design/build firm, has named David E. Morton, director of legal services; Mike Keller site manager; and Donna Vandegrift construction administrator. Emick, Howard & Seibert, a design build firm, has named Bruce Lindeke project architect. HTG Architects, a design build firm, has named Mike Kraft vice president of...

  • EAST

    York County Federal Credit Union, Sanford, Maine, has promoted Beth Boudreau to vice president of retail lending and James McKay to vice president/chief financial officer.

Publisher's Column

  • Offense, CUEG, Employees On Boards, FDIC, and More

    The list of items deserving of a comment or two keeps getting longer. To whittle it down a bit, here are a few of them: Although I have been preaching in this space for a long time that credit unions need to play more offense and not just defense, there...

Opinions

Letters to the editor

  • Overdraft Protection Column is on the Mark

    I recently completed reading Mike Welch's column in the April 9th, 2003 issue of Credit Union Times, "Putting a Little Bounce in Checking Accounts." I believe Mike is "Not Wrong Here" but right on the money in his assessment of the vast majority of overdraft privilege programs. Thank you for...

  • CU Board Member Types Are Familiar

    I always find it refreshing when I read Mike Welch's weekly column. Over the years, I have not always agreed with his comments or opinions and in fact, responded to those I strongly disagreed with. In one such case, several years ago, he commented on the Givers and the Takers...

  • Overdraft Programs Worth a CU's While

    I agree 100% with Mike Welch's position regarding overdraft programs that he elaborated on in his April 9th column, "Putting a Little Bounce in Checking Accounts." Tower Federal implemented such a program in the past six months but only after much debate and research. In the end we believed honoring...

Opinion

Quotes Worth Quoting

  • Quotes Worth Quoting

    "There is no Muslim Pope." Kelly Morris, credit union consultant based in Beltsville, Md on why there is no single guidebook as to what products and services an Islamic credit union could offer and which it could not. "Many of you may have `at will employment...' Well, that changes with...

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