Credit Union Times Magazine May-26, 2010

Treasury Official and Rep. Frank Offer Encouragement on MBL

By Claude R. Marx

WASHINGTON -- Credit unions last week received a ray of good news on their goal of raising the cap on member business loans.

Senate in Final Stages of Regulatory Overhaul

By Claude R. Marx

At press time, the Senate was putting the final touches on the bill to change the way financial services are regulated.

Kanjorski Edges Out Primary Challengers

By Claude R. Marx

The May 18 primary elections provided more good than bad news for credit union-backed candidates.

Members United to Deplete More Capital

By Heather Anderson

New losses at the $9.5 billion Members United Corporate Federal Credit Union will leave the struggling corporate hanging by its fingernails, requiring it to deplete "substantially all" of its remaining capital.

State Budget Cuts May Crimp Oversight; Arizona Down to Two State Examiners

By Jim Rubenstein

Crippling budget cuts have left Arizona with just two credit union examiners to handle 22 state-chartered CUs.

NCUA E&I Director Love Tells NCUA Board That Reserves May Not Cover Losses

By Claude R. Marx

ALEXANDRIA, Va. -- There is a good chance that the reserves set aside for losses in the NCUSIF "won't be sufficient," to cover the losses at some of the large credit unions.

Bay Gulf Credit Union of Tampa Shuns Merger Talk

One of Florida's ailing credit unions, the $140 million Bay Gulf CU of Tampa, insisted it is on a path to financial recovery.

IFA Employees Federal Credit Union Merges Into Mountain America FCU

Utah's Mountain America Federal Credit Union has now completed a merger of the $1.8 million IFA Employees FCU of Salt Lake City.

An Interchange Blitz

CUNA and state leagues said last week their massive lobbying effort to oppose the Durbin interchange amendment triggered an estimated 35,000 letters and e-mail messages to U.S. senators, but that was apparently dwarfed by retailers' counter campaign.

NCUF Poised for Sebastian

The National Credit Union Foundation has chosen longtime credit union leader Wendell Sebastian as its next executive director.

Alabama CU Opts for Trust Services Partnership

By Michelle A. Samaad

With 67% of its 42,000-member base maintaining a checking account at Alabama Credit Union, the cooperative is on a mission to be a one-stop shop.

Facing Up to the New Workplace Realities

By Claude R. Marx

At a time when organizations are aggressively cutting personnel, the way to survive is not just to cozy up to the boss but to create a niche for yourself that makes you too valuable to be let go or be allowed to quit.

Lake Michigan Credit Union Set to Take Over Ailing Citizens CU of Kalamazoo

Expanding its Michigan footprint, the $1.9 billion Lake Michigan Credit Union of Grand Rapids is merging the troubled $62 million Citizens CU of Kalamazoo giving the CU an entry into the Kalamazoo market.

Connexus Credit Union Merging With Wausau City Employees CU by June 1

In a merger underscoring compliance concerns of small credit unions, the $312 million Connexus Credit Union of Wausau, Wis., said it expects to complete the consolidation of the $3 million Wausau City Employees CU by June 1.

CU Foundation Builds Up Community With Bi-Lingual Teller Training

By Myriam DiGiovanni

As news outlets were running stories about the plight of unbanked immigrant populations, Kyle Swisher, executive director of the CU Foundation of Maryland and D.C., got the idea of developing a bilingual teller training and placement program .

NCUA May Isolate Corporate Assessment; Becker Hails Move

By Heather Anderson

The NCUA Board may vote in June on whether to separate corporate CU assessments from those that cover natural person credit union losses, Chairman Debbie Matz told Wisconsin Credit Union League members.

United Nations FCU Becomes First Chip and PIN Card Issuer in the U.S.

By David Morrison

The $3.1 billion United Nations Federal Credit Union has become the first financial institution in the United States to issue chip and PIN credit cards.

Merger May Benefit Alliant CU, Continental FCU

By Michelle A. Samaad

It's a road Alliant Credit Union and Continental Federal Credit Union have been down before, only this time, there may be a clear destination in sight.

Wisconsin CU Emerges From Conservatorship

Once considered a failed CU, the $144 million Prime Financial Credit Union of Cudahy, Wis., is back on its feet this month-pulled out of conservatorship by the state after a new management team and board restored "normal operations."

Banks Ease Commercial Lending Criteria

According to a recent Federal Reserve Board survey, those banks that have started easing their commercial lending standards have done so in response to increased competition from other banks and nonbank sources.

League Begins Search For Cheney Successor

The California/Nevada Credit Union League has kicked off its search for a successor to its president/CEO, Bill Cheney, who is taking the CUNA helm July 5.

Constitution Corp Income Covers New OTTIs

Like other corporate credit unions, Constitution Corporate FCU's investment portfolio performed worse than previously estimated, requiring a new $1 million-plus OTTI as of March 31.

IRAs Beat 401ks

Individual retirement account assets are now greater than in employer-based retirement accounts such as 401(k)s and 403(b)s, according to a Cogent Research study of 4,000 affluent and high net worth Americans.

BSA Manual Released

Credit unions wanting an update on what federal examiners are looking for during examinations on Bank Secrecy Act issues can consult the just-released 2010 edition of its examination manual.

Credit Unions Could Use a Couple of Notches on Their Gun Barrels

There's a first time for everything. Just last week, a credit union representative was called on to testify at a hearing regarding a bill for community banks-sort of. It wasn't terribly controversial, but it was a start.

Do the Laws of the Land Not Apply to the NCUA?

One and a half million North Carolinians, who are members of State Employees' Credit Union, have $175 million on deposit at the NCUA with the NCUSIF. This deposit is owned by SECU members and is fully refundable.

Fresh Air In

The Editor's Column in the April 28 issue was excellent. The comments were on target.

Social Media Should Align With CU Expectations

The power of social media and its influence on growth in the financial industry is mesmerizing. However, the conspicuous absence of guidance from regulators, which may be holding back many credit unions from taking the plunge.

Merger Panelists Shine Light on P&A Process

By Heather Anderson

NEW ORLEANS -- Representatives from four credit unions that were involved in mergers or acquisitions shed some light on the closed-door and detailed process during a CUNA CFO Council session.

Leveraged Borrowing Could Pay for Assessments

By Heather Anderson

NEW ORLEANS -- If a $1 billion credit union used a series of advances to fund a $100 million investment in new 15-year mortgage pools, it could add as much as $600,000 to interest income in the first year.

As Competitors Retreat, Opportunists Gain Market Share

By Heather Anderson

NEW ORLEANS -- Many financial institutions are cutting back on branch hours and other services to save on expenses.

Budget Cuts Should Begin With Efficiency Analysis

By Heather Anderson

NEW ORLEANS -- After regulators told TruWest Credit Union to either reach positive ROA by June or budget using last year's expenses, TruWest Credit Union Senior Vice President Jason Scott made the difficult choice to eliminate 12 full-time positions.

Meeting and Greeting Auto Dealers Proves to Be Key to Indirect Lending

By Eileen Courter

Building relationships with dealers is critical to indirect lending. It's also important to cross sell those new members. But meet and greet is the most vital link in indirect auto lending success.

When Banks Bow Out, Credit Unions Can Ride High on Auto Loans

The economic downturn of the past two years has been tough on banks, but it has presented the best opportunity in decades for credit unions to grow by expanding their base of auto loans.

Making the Most of Repossessed Vehicles to Market Loans

Credit unions have worked hard to establish themselves as the best choice in automotive lending. Both prudent lending practices and neighborly service have solidified an excellent reputation among car buyers.