Credit Union Times Magazine April-13, 2005

  • Harland to Acquire Rival Liberty for $160 Million; Both Firms Focus on Tech

    ATLANTA - As fast as new vendors are discovering the credit union market, others are being merged away into bigger firms. In the latest consolidating event, Harland has announced its plans to acquire Liberty for $160 million in cash - a deal that will in one way or another affect...

  • Chatfield to End 40-Year Credit Union Career in 2006

    RANCHO CUCAMONGA, Calif. - After serving credit unions for four decades from the volunteer, league, regulator and vendor sides, David Chatfield announced last week his plans to retire April 1, 2006. Although he's probably most associated with his current position as president/CEO of the California and Nevada Credit Union Leagues,...

  • African-American CU Coalition Provides Financial Support for Native Africans to Attend Institute in Kenya

    SHREVEPORT, La. - Three native Africans will have financial support to attend a management training session thanks to scholarships from the African-American Credit Union Coalition. As part of its mentoring outreach, the AACUC recently approved $2,700 in scholarships for the native Africans to attend the African Management Institute. The World...

  • ABA Calls for More `Public Scrutiny' on CUNA Mutual's New MBL Pilot Program

    MADISON, Wis. - The American Bankers Association wants to put the brakes on a new member business lending investment fund pilot at least until more details are provided on how it works. At issue is the new CU Systems Fund from CUNA Mutual Group, which would allow for the purchase...

  • For Second Time, Baker Introduces GSE Reform Bill, Oxley Among Original Co-Sponsors

    WASHINGTON - Rep. Richard Baker (R-La.) is taking a second stab at getting legislation passed that overhauls the regulation of the housing Government Sponsored Enterprises. Bolstered by the Fannie Mae accounting mismanagement scandal which came to light on the heels of a similar prior situation at Freddie Mac, the chairman...

  • CUNA Mutual Sues B.J.'s, Card Acquirer; 163 Credit Unions Taking Part

    MADISON, Wis. - CUNA Mutual Group and 163 credit unions have filed suit in Massachusetts Superior Court against B.J.'s Wholesale Club and against the corporation's acquiring bank, Fifth Third Bank, over losses that the insurer alleges it and the credit unions suffered from a card security breach. BJ's is headquartered...

  • IRS Commissioner Writes Senate Finance on Abuses by Tax-Exempt Entities; CUs Spared for Now

    Could CUs be Facing a Major Overhaul of Non-Profit Tax Law and Regulation? WASHINGTON-In a recent letter to Senate Finance Committee Chairman Charles Grassley (R-Iowa), Internal Revenue Service Commissioner Mark Everson laid out various abuses of the tax law by exempt entities. Though he did not mention credit unions, Everson's...

  • TruWest CU, Oakland Athletics Batter Up

    TEMPE, Ariz. - TruWest Credit Union is taking members out to the ballgame. For the second consecutive year the over $640 million credit union has teamed up with Major League Baseball's Oakland Athletics for spring training. Throughout the spring training season discounted tickets are offered to TruWest members and a...

  • Credit Union Leaders Get Their Glue Sticks Out to Help the Children

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  • Orange County Teachers FCU Goes to TIP Charter

    SANTA ANA, Calif. - Orange County Teachers Federal Credit Union (OCTFCU) has received approval to switch from a multiple-group sponsor to a trade, industry, profession charter. The change means the credit union can now serve anyone in the educational services industry in a 10-county Southern California area that stretches from...

  • IRS' Plans

    One of the IRS's Strategic Plan objectives for 2005-2009 is "To deter abuse within tax-exempt and governmental entities and misuse of such entities by third parties for tax avoidance or other unintended purposes." According to Everson, approximately three million entities are tax-exempt nonprofits with about $8 trillion in assets. While...

  • Feds Encourage Financials to Serve Check Cashers and Other MSBs

    WASHINGTON-The Financial Crimes Enforcement Network, NCUA, and the other federal financial regulators recently issued a statement urging depository institutions not to discontinue service to money services businesses because of the perceived excessive risk. Money services businesses cover check cashers and money transmitters. "Money services businesses are losing access to banking...

  • April a Busy Month for CU Direct Partnerships

    RANCHO CUCAMONGA, Calif. - Just one week into the month, CU Direct Corp. already announced two major new partnerships that speed up the loan processing time for members of credit unions using the CUDL platform. In the first announcement, the administrator of the Credit Union Direct Lending and DecisionApp systems...

  • AACUL Forms Task Force on Bank Conversions; CUNA Mutual to Provide Financial Backing

    WASHINGTON - State league presidents have begun in earnest tackling the thorny public and internal issues surrounding mutual bank conversions with an eye on strengthening the credit union charter. With input from both CUNA and CUNA Mutual Group, the American Association of Credit Union Leagues disclosed this month it has...

  • Treasury's OIG Reports FinCEN Must do More to Ensure Proper SAR Filing

    WASHINGTON-Due to a lack of adequate response to a previous report, Treasury's Office of Inspector General said that it delved further into the problems with the Financial Crimes Enforcement Network's monitoring of data quality problems for suspicious activity reports. "What progress had been made in addressing our prior report consisted...

  • Speedy House Vote on Bankruptcy Reform Delayed for Pope's Funeral

    WASHINGTON-The passing of Pope John Paul II has caused the House to delay its vote on bankruptcy reform legislation until this week. CUNA learned last week that because so many members of Congress will be out to attend Pope John Paul II's funeral, the vote on the Bankruptcy Abuse Prevention...

  • Wisconsin League Extends Hand to Small CUs Through New Program; One-Third of State's CUs Under $10 Million

    PEWAUKEE, Wis. - It's no secret that small credit unions daily deal with unique sets of operational challenges that test their survival, but the Wisconsin Credit Union League has begun a new initiative to make those challenges more manageable and less overwhelming. WCUL VP of Operations Jim Drogue, who heads...

  • WestStar CU Bucks the Odds, Wins Big with Second Chance Checking Program

    LAS VEGAS - Leave it to a Las Vegas-based credit union serving the gaming industry to gamble on members with ChexSystems records. WestStar Credit Union, which serves employees of casinos and other gaming companies, found the odds were stacked against a traditional checking account program effectively serving their members. In...

  • SBA Finds Small Business Lending Often Gets Scaled Back after Bank Mergers

    WASHINGTON - Small business lending tends to fall by the wayside after an internal merger at a large bank. This is one of the conclusions for a just-released study from the SBA, The Effects of Mergers and Acquisitions on Small Business Lending at Large Banks. The study looked at the...

  • Promising CU Startup Bites the Dust in Oregon, Capital Requirements Blamed, But Were Regulators Too Inflexible?

    PORTLAND, Ore. - In the end, time ran just ran out on the Hacienda Community Credit Union. The $3 million CU which opened to great promise and fanfare two years ago couldn't muster the capital it needed to keep up both its rate of growth and achieve self-sufficiency and so...

  • Matz Continues to Warn Credit Unions of Troubling Membership Trends, Dual Chartering System Can Counter Stagnant Numbers

    DENVER - Several disturbing trends continue to threaten the future of credit unions, NCUA Board Member Debbie Matz recently warned. Speaking at the 27th Annual State Regulators' Conference hosted by NCUA for regulatory members of the National Association of State Credit Union Supervisors here, Matz shared her observations about current...

  • Look What's Coming: Risk-Based Capital and Basel II

    On April 4, 2005, the NCUA announced that they had delivered to Congress a report titled "Prompt Corrective Action Proposal for Reform" (available at www.ncua.gov/ReportsAndPlans/special/special.html). The report describes the recommended statutory changes from the NCUA to meet Basel II (the latest international agreement on standardized capital ratios for financial institutions),...

  • Lobbying Can Sometimes Mean Just Being There; Knowing When to Back Off is Also Important

    GREENSBORO, S.C. - Stroll through most state capitols when the legislature is in session and you'll spot lobbyists scurrying around toting thick folders packed with data supporting their particular cause. But when Martha Miller, the president of Choice Community Credit Union, makes the 90-mile trip to Raleigh she travels light....

  • NCUA Delivers PCA Proposal to Congress with Blessing of CU Community

    ALEXANDRIA, Va.-NCUA Chairman JoAnn Johnson's final proposal to reform credit unions' system of Prompt Corrective Action was delivered to Capitol Hill last week amidst cheers from the credit union community. The revision to a proposal floated last month seeking public comment has many of the same elements. However, a few...

  • Pieces now in Place for Credit Unions to get Much Needed Capital Relief

    Sometime next year, when a Financial Accounting Standards Board proposal on mutual business combinations is expected to take effect, credit unions that choose to merge may no longer be able to count the merged institution's retained earnings in their net worth. Without a legislative fix to the statutory definition of...

  • New Coalition Warns Small CU CEO About Ad Campaign to Fight Community CU and OmniAmerican CU Bank Conversions

    ARLINGTON, Va. - The fight over the two billion dollar-plus Texas credit unions which are seeking to become mutual savings banks moved into the U.S. postal service last week as letters flew back and forth between a relatively new bankers' group dedicated to supporting credit union charter conversions and the...

  • NCUA Joins Other Federal Regulators, Posts Answers to FAQs on HMDA New Home Loan Price Data

    ALEXANDRIA, Va. - NCUA, along with the Department of Housing and Urban Development (HUD), the Federal Reserve Board, Federal Deposit Insurance Corp., and Office of the Comptroller of the Currency, Office of Thrift Supervisions, has posted a set of "Answers to Frequently Asked Questions" that address the new home loan...

  • Kenyan Crosses Finish Line First in Cherry Blossom Run but Kids Real Winners

    WASHINGTON-John K. Korir of Kenya was the first competitor to cross the finish line in the 33rd annual running of the Credit Union Cherry Blossom 10-Mile Race, but Children's Miracle Network got the more than $400,000 jackpot. Tempermental weather did not keep Korir from posting a time of 46:54 in...

  • Florida Senate Passes Legislation Updating Portions of State's CU Act

    TALLAHASSEE, Fla. - The Florida Senate on March 31, unanimously passed a measure that updates portions of Florida's Credit Union Act to conform with the Federal Credit Union Act. SB 1330, sponsored by state Sen. Jeff Atwater (R-North Palm Beach) had been placed on the Senate's final passage calendar without...

  • U.S. Central Elects Four New Board Members

    LENEXA, Kan. -U.S. Centrals' new board took shape during its recent 31st annual meeting. Re-elected to a three-year term as Class A-1 director was Ed Fox, president/CEO, Mid-Atlantic Corporate FCU. David Brehmer, president/CEO, First Carolina Corporate CU was re-elected to a three-year term as a Class A-2 director. John Franklin,...

  • Post Starts his Changes in the Executive Ranks at CUNA Mutual

    MADISON, Wis. - CUNA Mutual Group President and CEO Jeff Post is starting to make some changes to the executive ranks, something he said would likely happen after evaluating the management structure of CUNA Mutual. Upon coming aboard, Post said he was surprised by how many SVPs there were at...

  • What Does Harland Deal Mean For Hollen?

    MOUNDS VIEW, Minn. - With any acquisition, how the management of the acquired company will fare is never really clear until the deal goes down and in the months following. Liberty CEO Stan Hollen, who has been in the job less than three years, doesn't know his fate just yet....

  • Fed's Bernanke Named as Potential Nominee for Chairman of Economic Advisors

    WASHINGTON-The President recently announced that he intends to nominate Ben Bernanke to be chairman of the Council of Economic Advisors. Bernanke currently serves as a Federal Reserve Board governor and has been rumored as a possible replacement for Fed chairman after Alan Greenspan's term expires Jan. 31, 2006. He is...

  • MaPS Introduces New Investment Program

    SALEM, Ore. - Members of MaPS Credit Union looking to get their retirement house in order can do now do so here. Through its new investment service program via a partnership with CUSO Financial Services, L.P., the $234 million credit union will hold a free, comprehensive workshop on April 14...

  • Jekel Named NASCUS Chairwoman-Elect, Feeney to Complete Smith's Term on Board

    ARLINGTON, Va. - Linda Jekel, director of credit unions for Washington State, was approved unanimously by the NASCUS Board as chairwoman-elect. She fills the position left open when John Smith, former director of credit unions for Missouri resigned from the board following his termination as director by Gov. Matt Blunt,...

  • PCUA, Kenyan Dignitaries Meet to Consult in Drafting SACCO Laws

    HARRISBURG, Pa. - The Pennsylvania Credit Union Association, as part of the relationship it's had with Kenya since 2000 including providing guidance and technical expertise to the country, is hosting visits by two dignitaries from Kenya who are in town to meet with PCUA officials. The representatives from Kenya include...

  • Garcia Succeeds Block as President/CEO, North Jersey FCU

    TOTOWA, N.J. - Lourdes Garcia was selected by the North Jersey FCU Board to be the $168.4 million CU's new president/CEO. She succeeds Richard Block, who retired from the position April 1 after 33 years of service. Garcia has been with NJFCU since 1984, starting as a teller. She moved...

  • Dallas Credit Unions Bowling for CMN Dollars

    DALLAS - Employees Credit Union has issued a challenge: Just try and unseat us for the "Most Original Theme" prize at this year's Children's Miracle Network Bowl-A-Thon to be held May 14 at the AMF Richardson Bowling Lanes. The credit union has won the prize two years running. Last year,...

  • Fixed Rates Coming to Series EE Savings Bonds

    WASHINGTON - The Series EE savings bond will have fixed interest rates for the life of the bond starting May 1. Interest rates on the Series EE bonds currently change every six months. The new fixed rate, which will be whatever the interest rate is in effect at the time...

  • HUD Announces New 5-Year ARM

    WASHINGTON - Under an interim rule from the Department of Housing and Urban Development that implements a 2003 amendment to the National Housing Act, the agency has created a new hybrid adjustable-rate loan that allows lenders to make yearly rate adjustments of up to 2% during the first five years...

  • Falcon Resigns as Head of OFHEO

    WASHINGTON - Armando Falcon, director of the Office of Federal Housing Enterprise Oversight since Sept. 1999, notified President Bush last week his intention to resign on May 20 as Director of the agency that regulates the housing GSEs including Fannie Mae, Freddie Mac, and the Federal Home Loan Bank. Falcon's...

  • NAFCU Offers Brochure to Educate Servicemembers on Civil Relief

    ARLINGTON, Va.-NAFCU has developed a new brochure to inform active military about their rights under the Servicemembers Civil Relief Act. NAFCU's brochure, The Servicemembers Civil Relief Act: Your Rights and Responsibilities, is free for anyone to download from NAFCU's Web site (www.nafcu.org). The brochure provides a brief explanation of soldiers'...

  • Alliant Hikes Savings Dividend to 3.03%

    CHICAGO-Alliant Credit Union claimed a record mark for first quarter dividend rates with a compounded annual percentage yield of 3.03%. In boosting the rate to 3.00%, the Chicago CU said it now offers the highest among the nation's top 12 largest CUs whose collective dividend average was 1.38% as of...

  • Board Riff: Johnson and Matz Agree on Proposal, but Playing Politics

    ALEXANDRIA, Va. - Despite the kind words, NCUA Board Member Debbie Matz issued her own press statement backing the proposal after the supporting letter she submitted to Chairman Johnson's office for inclusion with the delivery of the proposal on the Hill was rejected, according to Matz' Executive Assistant Steve Bosack....

  • Navy FCU Part of Homecoming Event for 2,000 Sailors

    SASEBO NAVAL BASE, Japan - After nearly eight months in the Persian Gulf and assisting with humanitarian efforts in Indonesia in the aftermath of the Dec. 26 tsunami, the Essex Amphibious Ready Group (ARG) was scheduled to arrive here the week of April 11. Navy Federal Credit Union, along with...

  • U.S. Supreme Court Finds IRAs Exempt from Bankruptcy Collections

    WASHINGTON-The U.S. Supreme Court decided April 4 that Individual Retirement Accounts are protected under Chapter 7 bankruptcy filings. In Rousey et ux. v. Jacoway, the Supreme Court found that IRAs are exempt from the bankruptcy estate because the law states that a debtor may withdraw from the estate his "right...

  • Congressional Hearings

    Comments from House Ways and Means Committee Chairman Bill Thomas (R-Calif.) about a year ago now caused an uproar across the credit union community. In a speech to a hospital group, he said his committee would be looking into whether nonprofits continued to serve a societal good and listed hospitals...

  • What is ChexSystems?

    ChexSystems, Inc. is a consumer reporting agency that provides deposit account verification services to participating financial institutions. These reports assist financial institutions in identifying potential customers who have a history of improper account handling, such as monies owed, excessive NSF activity, ATM abuse, and suspected or confirmed fraud. Institutions are...

  • SELCO Purchases Insurance Agency

    EUGENE, Ore. -SELCO Community Credit Union's Insurance Services will now include Preferred Insurance Associates. SELCO CCU has recently purchased the insurance agency and as part of the deal all Preferred Insurance agents will move to SELCO. "Regardless of a family's insurance needs, we can find the right solution," said SELCO...

  • $10 Note Next Up for Re-design

    WASHINGTON - The $10 denomination is the next note scheduled for a make-over by the Treasury's Bureau of Engraving and Printing. The newly designed $10 note is scheduled to be issued by the Federal Reserve in early 2006. It will feature similar enhanced security features, subtle background colors and symbols...

  • Cherry Blossom Run Raises $400,000 for Children's Miracle Network

    Kenyan John K. Korir won the Credit Union Cherry Blossom 10-Mile Race in a time of 46:54. Once again the race attracted hundreds of runners and more importantly raised more than $400,000 for the Children's Miracle Network. For full coverage see pages 38-39.

In Other News

  • MILESTONES

    Spokane Federal Credit Union, Wash., employees Dick Blain and Liz Mashtare have recently hit major service milestones. Blain has served the credit union for 25 years and Mashtare is celebrating her fifth anniversary with Spokane FCU. SAFE Federal Credit Union, Sumter, S.C., has cut the cake on its 50th anniversary....

  • DONATIONS

    Municipal Employees Credit Union, Baltimore, Md., staffers have once again donated their time to help Maryland Public Television(MPT). Some 29 MECU staffers volunteered to answer phones during MPT's spring pledge drive. This year, over $25,000 was raised during the period that MECU answered the phones. MECU has been a long...

News

  • First Step: Uncover Existing Data

    As is the case with many credit unions, USA FCU didn't really have an adequate grip on the flood of information about its card transactions that regularly flowed from its third-party card processing firm, whom Cunningham would not identify. One of the first things Asset Exchange did was to analyze...

  • PSCU Financial Gives Out Millions of Points

    ST. PETERSBURG, Fla. - PSCU Financial Services, the card processing cooperative that serves over 500 credit unions which process their card transactions with First Data Corp., has released millions of rewards points to winners of its second annual sweepstakes. CURewards Sweepstakes is designed to boost activity for credit unions' credit...

  • Card Delinquencies Down ABA Report Says

    WASHINGTON - A report from the American Bankers Association has found that consumers' credit card delinquencies, in terms of percentage of total balances outstanding and the number of accounts more than 30 days delinquent fell to its lowest point in ten years for a fourth quarter. Based on the number...

  • Citi, mtvU Set Sights on Young Adult Market

    NEW YORK - Credit unions beware -apparently the Citi never sleeps when it comes to targeting young adults. Citi cards has teamed up with mtvU to co-launch the Citi mtvU Platinum Select Visa Card for College Students. The partnership is a joint program where cardholders can save points for exclusive...

  • CU Groups Fight Back on Conversions

    Credit union-to-bank conversions have credit union leaders scrambling to find ways to prevent them, while advocates say CUs deserve charter choices. Read all about it on page 10.

  • Wescom CU Found Strong Success in 2004 Rewarding Card Accounts

    PASADENA, Calif. - The $3 billion Wescom Credit Union had a problem in the middle of 2004. Its credit card program, 38,000 cards and $84 million strong in March of the year, had begun to slow sharply. "We had been in the habit of offering card promotions at the end...

  • Boston ATM Users Miss Stamps

    BOSTON - Despite the axiom that most ATM users only want money from their ATMs, Bank of America is reporting taking phone calls from ATM users in the Boston area who had been used to Fleet bank ATMs which offer stamps. The same machines, now run by Bank of America,...

  • Special Report: Credit/Debit/ATMs

    USA FCU found out its credit card portfolio is more valuable than it knew. Read about that and other credit/debit/ATM news in the special report on pages 22-26.

  • Despite Competition, CO-OP Network Keeps On Growing

    ARLINGTON, Va. - Despite the wide variety of local and national ATM network options available CO-OP Network, the credit union owned ATM and EFT network, remains the single largest and most recognized credit union ATM brand. After the purchase of the PULSE EFT Association by Discover, CO-OP Network became the...

  • MasterCard Applies For Greater Role in Corporate Taxes

    PURCHASE, N.Y. - MasterCard has taken a step to make itself more attractive to corporate customers by making it easier for them to meet their tax related obligations. The number two card brand has applied with the Internal Revenue Service to become a qualified payment card agent (QPCA), a status...

  • MasterCard Wins on Chargeback Case

    PURCHASE, N.Y. - In a possibly precedent setting decision, MasterCard International has convinced a Federal Court to dismiss allegations that its policy of assessing additional charges on merchants who have an excessive number of chargebacks on their MasterCard accounts is illegal. MasterCard lawyers say the win may influence two other...

  • For KeyCorp, ATM Growth Within the Niche Unlocks the Door

    ALBANY, N.Y. - When the $387 million Sunmark FCU signed with KeyCorp to give its members surcharge-free access to 290 ATMs in New York State in early April, the credit union validated both KeyCorp's ongoing surcharge-free ATM strategy as well as a change in focus in how the bank markets...

  • Members Win Out in Card Sweepstakes

    ST. PETERSBURG, Fla. - William and Sherry Pousson, members of the $75 million LA DOTD Federal Credit Union, headquartered in Baton Rouge, Louisiana, were the two grand prize winners in Certegy Card Services "A Million and More ScorecCard Bonus Point Giveaway," the card processing firm and credit union announced. The...

  • One Credit Union Discovers that Portfolio Evaluation Doesn't Always Mean Sale

    ARLINGTON, Va. - The current market for credit union credit card portfolios is so competitive and premiums for those portfolios rumored to be so high that many institutions presume that if they have their portfolio evaluated for marketability they will almost surely sell it. Well, not necessarily. Sometimes an evaluation...

  • Discover Spin-off Will Not Affect Pulse

    HOUSTON - There could be more new bosses at Discover, the parent company that merged with the formerly member owned Pulse Debit network. A press release from the financial firm of Morgan Stanley says the company plans to spin Discover off to its shareholders The Pulse ATM and EFT Association...

  • PULSE Attacked By Phishing Scam

    HOUSTON - The PULSE Debit network, now a subsidiary of Discover, has been attacked by a phishing scam. On March 21, the EFT and ATM network became aware of an e-mail circulating to consumers that told consumers to visit a site that resembled a PULSE site and, once there, to...

  • Elan Takes Another

    BOSTON - Elan Financial Services has purchased the credit card portfolio of the $55 million Bellco FCU, headquartered in Wyomissing, Pennsylvania, announced Kessler Financial, the firm which brokered the sale. The purchase brings Elan a $1.5 million portfolio with just over 1,000 accounts, according to NCUA records as of September...

  • Credit Unions Present $413K Check to CMN

    WASHINGTON-Credit union officials from around the country came to the nation's capital to attend the ceremonial presentation of the giant check from the proceeds of the Credit Union Cherry Blossom 10-Mile Run to the Children's Miracle Network. The $413,000 check presented at Children's National Medical Center March 31 was an...

  • On-Site Coverage: 33rd Credit Union Cherry Blossom Run

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  • Tower Report Urges Card Issuers to Seek Out Small Business

    NEEDHAM, Mass. - Credit union credit card issuers can benefit by offering small business cards to their members who have small or even micro businesses, according to a report from the Tower Group, a consulting firm on card practices. Small Business Credit Cards in the US: High-Growth Segment or Limited...

News Briefs

  • Educational Community CU Revamps Name

    JACKSONVILLE, Fla. - At 70, Educational Community Credit Union has changed its name to Community First Credit Union of Florida. "Our new name expresses who we are, our values and our priorities. It reflects our current field of membership and reinforces that everyone in the Northeast Florida area can benefit...

  • Hanley Elected to CFA Board

    SANTA ANA, Calif. - Rudy Hanley, president/CEO, Orange County Teachers FCU, has been elected to the board of directors of the Consumer Federation of America by the organization's membership. Hanley was elected to a three-year term on the 40-member CFA board at the annual meeting March 12. He joins five...

  • NAFCU Names Chanow Director of Political Affairs

    ARLINGTON, Va.-NAFCU recently divided up its legislative and political affairs departments and has called on veteran lobbyist Murray Chanow to head up the political division. Brad Thaler, who was previously director of both offices, will remain the director of legislative affairs. Chanow previously headed up the legislative and political affairs...

  • OSI Acquires SOSystems for $11 Million

    GLASTONBURY, Conn. - Data processor Open Solutions Inc. continues its string of acquisitions in the credit union industry. The company announced last week that it will acquire credit union data processor SOSystems based in Orem, Utah for $11 million in cash. SOSystems has 120 credit union clients across the United...

  • Bank Fund Staff FCU Cited by OFAC

    WASHINGTON- Treasury's Office of Foreign Asset Control recently cited Bank Fund Staff Federal Credit Union in Washington, D.C. under its Iran sanctions program. The violation, involving the "operation of Iranian accounts" from 1998-2000, resulted in a $14,000 settlement with OFAC for the $1.9 billion credit union. According to Bank Fund...

  • Ohio CUs Help Investment Firm Grow

    CINCINNATI - Financial Network Group has grown to become one of Cincinnati's largest investment advisory firms, thanks to Ohio credit unions. Launched in 1991, the firm has grown to $57 million in assets and generates about $4 million in revenue each year, said Nathan Bachrach and Ed Finke, managing partners...

  • Tax on CUs Would Forever Alter Industry Motives, Navy's Dawson Says

    WASHINGTON-Navy Federal Credit Union President and CEO Cutler Dawson told the President's Advisory Panel on Federal Tax Reform that a tax on credit unions is a tax on those who can least afford it. In fact, his March 16 comment letter stated, "One of the primary goals of the President's...

Marketing

  • Michigan CUL Rallies for Exchange City CU Survival

    NORTHVILLE TOWNSHIP, Mich. - Exchange City - it's a kids world and the Michigan Credit Union League wants to make sure credit unions are still a part of it. Not wanting credit unions here to miss a unique opportunity in reaching younger members, the league is asking Michigan credit unions...

  • Langley FCU Launches Member Education Division

    NEWPORT NEWS, Va. - Langley Federal Credit Union is dedicated to financial literacy and has named Richard Hill director of member education. According to Langley FCU President/CEO Jean Yokum, the move to create the education position came from increased consumer demand. Over the past year, Langley has performed hundreds of...

  • Navy Federal Takes Home Marketing Honors

    VIENNA, Va.- Service Industry Advertising (SIA) and Dalton Pen has honored Navy Federal Credit Union for creative excellence in the field of advertising and communications content. Navy Federal was honored by the SIAA with five awards: two Gold Awards for its Television Spot and 2004 Pocket Calendar; silver award for...

  • Members CU New Checking Promo Delivers Cash

    WINSTON SALEM, N.C. - A recent Members Credit Union checking promotion has given one member about 250 reasons why it pays to be member. Connie Baggett has won $250 during the Members CU The Buck$ Start Here promotion. Designed to encourage members to sign up for the credit union's no...

  • Dupaco Community CU Annual Report Big News

    DUBUQUE, Iowa - Dupaco Community Credit Union has turned its annual report into another opportunity to demonstrate the credit union difference. Designed in a unique color newspaper format the 2004 annual report has been inserted into popular local newspaper the Dubuque Telegraph Herald and distributed to more than 37,000 tri-state...

Tech Bytes

  • Fiserv Acquires Del Mar Database

    BROOKFIELD, Wis. - As part of its strategy to provide end-to-end solutions to the mortgage industry, Fiserv has acquired Del Mar Database, San Diego, a provider of automation systems for small-to-mid-sized residential mortgage lenders. While Fiserv is already a significant provider of information technology products and services to the lending...

  • Grossmont Schools FCU Cites Tech Tools for Swift Growth

    EL CAJON, Calif. - Grossmont Schools Federal Credit Union offers its 5,200 or so members such services as e-statements, home banking and even single sign-on bill pay, all with one office and 16 employees. The $70 million, single-sponsor CU has been getting its online service tools in a service bureau...

  • DI Wins Billion Dollar CU New Client, Extension

    SUNNYVALE, Calif. - Star One Credit Union has extended its online banking contract with Digital Insight through 2008. The $2.8 billion CU, the largest in Silicon Valley, deploys the Internet banker's entire consumer suite, including transactions and balances, bill pay and presentment, online statements, check imaging and alerts, as well...

  • Canadian Core Processor, Phone Giant Partner on Service Bureau Offer

    VANCOUVER, B.C. - Fincentric, a provider of core retail banking solutions, has joined with TELUS, the telecommunications giant, to offer Canadian credit unions of any size the core processing solutions in a service bureau setting. "With Bank by Wire, we are combining our partner's proven self-serve banking technology with TELUS'...

  • IntegraSys Named to Dallas-Fort Worth List of 50 Best Places to Work

    FRISCO, Texas - IntegraSys has been named one of the 50 "best places to work in Dallas-Fort Worth" by the Dallas Business Journal. The publication produces the list each year based on such areas of employee satisfaction as leadership confidence, manager support and peer collaboration. This year the list will...

  • $1 Million Iowa CU First to Use New HFS Platform

    FORT DODGE, Iowa - Gas & Electric Employees Credit Union here is the first to use Harland Financial Solutions' new hosted core processing solution. The $1.1 million, 333-member CU is now on the CuServ Evolution-ASP platform delivered through Harland's Enterprise Service Center in Des Moines. "Outsourcing our data processing provides...

  • COCC Reports Record Growth in First Quarter of 2005

    AVON, Conn. - COCC says it had its best quarter ever, signing 38 new service agreements with 26 financial institutions in the first three months of 2005. The agreements cover a range of services, including core processing, financial management, branch image capture and risk management. Six of those agreements were...

  • Wisconsin Credit Union Named in Computerworld Honors Program

    SAN FRANCISCO - Marinette County Employees Credit Union was one of 10 Progress Software Corp. customers named Laureates in the 2005 Computerworld Honors 21st Century Achievement Awards program. The $14 million Wisconsin CU was nominated for reducing its monthly costs by 25% through its use of Progress Software tools deployed...

Opinion

  • Managing in a Rising Interest Rate Environment

    Managing interest rate risk will become a critical strategic objective for most credit unions as the economy continues to grow and interest rates continue to increase. The good news so far in this improving economy is that even as interest rates have been heading up, they are still affordable. However,...

People

  • EAST

    Maine Credit Union League, Westbrook, has named Lee Schatz Synergent account executive for Maine credit unions and Jennifer Grenier Synergent account executive for other New England credit unions. Jeanne D'Arc Credit Union, Lowell, Mass., has announced the following new hires: Susan Gruber vice president/chief financial officer; James Reddy assistant vice...

  • SOUTH

    Dow Louisiana Federal Credit Union, Plaquemine, has promoted David Blazier to vice president of marketing and Mary Coghlan to vice president of human resources. Missouri Credit Union Association, St. Louis, has named Larry Deutsch director of communications. Volunteer Corporate Credit Union, Nashville, Tenn., has promoted Karla Donley to vice president...

  • WEST

    Global Credit Union, Spokane, Wash., has named Eric Sprink senior vice president of member business services. Kitsap Credit Union, Bremerton, Wash., has named Arlene Work training manager and Jennifer Wiberg real estate loan officer.

  • MIDWEST

    Toledo Area Community Credit Union, Sylvania, Ohio, has promoted Kim Dubendorfer to director of human resources. Affinity Plus Federal Credit Union, St. Paul, Minn., has promoted Kathleen Harrington to director of operations. Bayer Federal Credit Union, Elkhart, Ind., has named Thomas A. Smith vice president of business services.

Letters to the editor

  • Discover, the Credit Union Card Brand?

    Morgan Stanley recently announced that it plans to spin off its Discover Financial Services unit, the parent of Discover Card. The valuation is estimated at about $14 billion, with 50 million cards outstanding. This presents a unique opportunity to the credit union industry to create a consortium, perhaps part CUSO,...

  • Ban the "B" Word?

    Dick Ensweiler's lecture to CU marketers about using the term "BANK" may have been sincere in his desire to depict credit unions as "different", but it was hardly inspiring or practical. When it comes to the products and services we offer credit union members, we are "banks" in the public...

  • Credit Union to Bank Conversions Should Be Easier!

    But wait . before you start sending out any pipe bombs, let me explain! I, like most readers of Credit Union Times, have been reading about the growing (or at least the appearance of a growing) trend of credit union to bank conversion attempts (See publisher Mike Welch's March 30th...

Publisher's Column

  • CUNA Chairman Thinks Bank is a Four-Letter Word

    CUNA Chairman Dick Ensweiler, who in real life is CEO of the Texas CU League, has been popping up as a featured speaker at credit union meetings around the country where he urges his audiences to avoid the word bank at all costs. Only he puts it a bit stronger...

Staking Out the Stats

  • Staking Out the Stats

    As April 15 quickly approaches, a recent survey of American taxpayers finds that while 62% are aware that the Internal Revenue Service accepts credit cards to pay their federal income taxes only 1% plan to do so. According to the study commissioned by market research firm Ipsos-Insight, Americans are extremely...

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