Arkansas Best FCU, Fort Smith, Collection Officer Patricia Barnes is the first CU professional in the nation to earn the Staff Training & Recognition security certificate, presented by CUNA & Affiliates Center for Professional Development. Cy-Fair FCU, Houston, which has opened a new branch in Stone Creek, held a ribbon cutting earlier this year. Annette Neal has been named branch manager. NuMark CU, Joliet, Ill., has announced that President/CEO Janice N. Dempsey planned to retire in early April. Eldredge Corporations, Carmel, Ind., an independent agency that provides insurance, lending and marketing products to more than 750 credit unions and other financial institutions nationwide, has announced that it has acquired R.T. Racine Agency, Grand Rapids, Mich. The merger was completed in early April. "We've worked closely with the Racine Agency for the last 15 years and share the same commitment to our industry," said Peter J. Hilger, Eldredge Corporations executive V.P. "We're dedicated to providing a high level of service and support to all our clients... With more than 20 years of experience... and an extensive product line, we feel we have a great deal to offer our newly acquired clients." Service One CU, Bowling Green, Ky., held its annual shareholders' dinner recently, serving a lasagna dinner and treating guests to door prizes that included $500 in cash and two round-trip airline tickets. In addition, magician and comedian Dick Stoner was scheduled to perform. Sonoma County Schools CU, Santa Rosa, Calif., has changed its name to Community First CU. The change was made because membership is open to anyone who lives or works in Sonoma County, not just education employees, a spokesman explained. In addition, because the CU reaches out to members' communities through a variety of programs, the new name now reflects the community aspects of the CU's endeavors, while allowing the business philosophy to remain closely aligned to the CU's educational roots, he said. Steel Works Community FCU, Weirton, W. Va., has opened a new office in Wintersville, Ohio. Juanita Costantini has been named office manager. Members have been asking for a branch office in that area for quite some time, said SWCFCU President Richard J. Krauland. Teachers FCU, Golden Valley, Minn., has announced the opening of its new Maple Grove branch in the Arbor Lakes development at 7799 Main St. TFCU serves more than 46,000 members and has nearly $300 million in assets....

AM FCU, Rancho Dominguez, Calif., and HRD Network, Pomona, have announced that AMFCU President/CEO Eileen Doerrer has been awarded this year's Kern Schools FCU Patti Reed Educational Scholarship, named to honor Kern Schools staff member Patti Reed for her commitment to volunteerism. "The HRD Network is invaluable to small credit unions because it provides free access to Web site legal updates, training, HR manuals, educational programs and more," Doerrer said, in thanking Kern Schools at HRD's annual meeting. Sidney FCU, Sidney, N.Y. has announced that Sertoma, a not-for-profit organization has awarded James Suriano, director and chairman of the SFCU board, the "Service to Mankind Award" in recognition of his efforts to better his community and his dedication to the city. Unocal FCU, El Segundo, Calif., has announced that HRD Network has awarded UFCU CEO Judy Hurst its Virginia Baldauf Human Resource Professional of the Year Award. In addition to filling positions and establishing a training plan within Unocal FCU, Hurst also serves on the board at the California CU League. She also serves as president of the Southern California/Arizona CUES Council....

The Summit Chapter of the Ohio CU League recently asked its member CUs to help raise funds to purchase shoes for need children. More than 30 CUs in Ohio's Summit, Medina and Portage counties responded, raising $16,000 to purchase 200 pairs of shoes for the kids. Wisconsin CU League, Pewaukee, asked members to help needy children in need of medical care by purchasing links (hot-pink paper strips bearing the name of someone the member cares about) during its recent Chain of Hearts CMN fund-raiser. Members purchased links for $1, or opted to give a larger donation for paper hearts that were displayed in CU lobbies. Former Olympic gymnast Mary Lou Retton made a recording in support of the effort. Staff and volunteers are working toward WCUL's $150,000 goal, and will continue fund-raising efforts with bake sales, cookouts, auctions and raffles....

Teachers FCU, Farmingville, N.Y., will award $1,000 scholarships to six Suffolk County high school seniors who plan to continue their education. These scholarships are available to TFCU members or children of members who are graduating this spring. The application deadline is May 11. U-Lane-O CU, Eugene, Ore., has awarded $4,000 each to 25 undergraduate students at the University of Oregon, through its U-Lane-O Scholarship Program. Recipients are selected on the basis of demonstrated financial need, academic excellence and contributions to the community....

OKLAHOMA CITY - Oklahoma state chartered credit unions have begun to celebrate a victory now that the state legislature has leveled the playing field for state chartered CUs, said OCUL President Bob Bianchini. On Monday the State House of Representatives passed a measure on a 97-2 vote to allow those credit unions the same membership opportunities made available to federally chartered credit unions by H.R. 1151. The bill passed the Senate last month. "This was a critical bill for our state chartered credit unions," said Bianchini, adding that "state chartered credit unions had been operating at a distinct disadvantage and now they can get back to the business of offering the citizens of Oklahoma a choice of financial institutions." He noted that the bill was doubly important because it also allows state charters the ability to hold community charters - an option not before available. The bill, authored in the Senate by Sen. Angela Monson, chairman of the Senate Finance Committee, and in the House by Rep. Bob Weaver, chairman of the House Banking and Finance Committee, was sponsored by the Oklahoma State Banking Commissioner Mick Thompson and run as the "Commissioner's Bill". The bill now goes to Governor Frank Keating for his signature. -...

PHILADELPHIA - Michael J. Symons, CEO, Nor-Car CU and a member of the Pennsylvania Credit Union League Board of Directors was one of nine people who testified April 10 at a public hearing on state Senate Bill 1098, the proposed Judgment Creditor Garnishment Authorization Act. Introduced last September by state Sen. Charles Dent (R-16), the measure would permit a judgment creditor to apply to a court to attach the wages of a debtor for payment of an outstanding judgment. Pennsylvania is one of four states in the U.S. that does not allow garnishment of debtors' salaries by creditor with judgments. The others are North Carolina, South Carolina and Texas. In his testimony, Symons said wage garnishment would offer credit unions "a tool" to recover the millions credit unions charge off in delinquent loans and credit cards. "The members of the Pennsylvania Credit Union League are actively supporting wage garnishment because we are seeing too many people walk away from paying their bills," Symons told the state Senate Judiciary Committee members. "These people are not people who have lost their jobs or sustained high medical bills or are low-income. These are working people who apparently do not want to be accountable for their legitimate debts. We believe it is time to require personal responsibility from those that can afford to meet their legal obligations." Among the groups who testified against the legislation was the AFL-CIO. Patricia Raymond of the PCUL said David Wilderman, director of legislation, Pennsylvania AFL-CIO discussed the sanctity of wages and offered that the garnishment of debtors' salaries would contribute to workplace violence. Carolyn Carter of the National Consumer Law Center also spoke against the measure. Raymond said the PCUL hopes the judiciary committee will vote on S.B. 1098 by the end of the month....

Wisconsin bankers are suing the state CU regulator in circuit court to protest CUs' right to offer business loans..........Page 12...

ARLINGTON, Va. - NASCUS has submitted a five-point list of issues to NCUA in response to the agency's proposed rule 12 CFR Part 709 regarding NCUA's "involuntary liquidation of federal credit unions and adjudication of creditor claims involving federally-insured credit unions in liquidation." Topping the list of issues discussed in NASCUS' comment letter, NASCUS recommends NCUA expand the definition of "lawful collaterization." In the explanation of the proposed rule, NCUA refers to an "enforceable and perfected security interest in collateral. NASCUS says that "this implied definition is unnecessarily restrictive." The association recommends the definition should "consider varying approaches to security interests among the various states" to reflect state laws, rules and regulations. "Limiting the definition of `lawful collaterization' may restrict some states in their ability to deposit public funds in credit unions. Such a result would defeat the remedy this rule proposes to offer," NASCUS wrote....

OVERLAND PARK, Kan. - A new tech vendor breaks into the credit union industry seemingly everyday, but the tech powerhouses of the future may come from an old CU player-the corporate credit union. Corporate after corporate has unveiled some type of new Web-based technology product over the last few years. Many of these products are designed to give CUs more efficient tools for dealing with their corporate, but corporates are even offering products, specifically check imaging and Internet banking, that their member CUs can offer their members. "I'm sure there's mixed feelings in the industry about corporates offering e-commerce products, but it's an industry issue. Credit unions are in the fight for their lives. They're in one of the most competitive sectors of the whole online paradigm," said Charlie White, chief technology officer for Empire Corporate FCU. White said for credit unions to survive they have to embrace Web technology, but for that to happen prices of Web solutions must come down. White said major industry players like CUNA Mutual, the trade associations and the corporate system could join forces to bring the cost of Web-based technologies down. "Right now a lot of the leaders in the industry are doing things on their own. The industry isn't focused as a whole, but in the next couple of years as core competencies develop there will be opportunities for the players to join together," said White. White said when the industry has a good idea of who has the best product in a particular core competency (online stock trading, bill payment, online lending), those products should survive and duplicate efforts from other industry players should be phased out. Then all the leading products can form a complete suite of online solutions. He said that it's too early for that to happen because it's not clear who is leading in what competency. Judging by U.S. Central CEO Dan Kampen's emphasis on technology, U.S. Central seems to have taken the Web issue personally as an area where it must provide leadership for the rest of the corporate system. "Too many credit unions are waiting to see how the Internet will perform. It's been said that if you're just now thinking of entering the online business arena, you've already lost," said Kampen. "I think the corporate network has an obligation to help credit unions tap into the Web." U.S. Central's virtually unpublicized subsidiary Corporate Network eCom was formed to help credit unions get more involved in the Web, said Kampen. Very quietly, eCom has developed a suite of Internet banking and electronic bill payment services. eCom has an ambitious list of partnerships, including with Princeton eCom, Hamilton & Sullivan, Open Financial Solutions and Payment Systems for Credit Unions. One of eCom's flagship products is MemberStreet, an electronic bill pay service. The concept is for individual corporates to market eCom's MemberStreet to their members as if it was their own. GTE FCU, Tampa, Fla., was scheduled to go live with the product on April 12. Corporate leaders are embracing the technology role. "Seeing programs like electronic bill payment being carried out makes me proud of the corporate network's part in helping credit unions remain competitive," said Jim Taylor, president/CEO of Southeast Corporate FCU. Ohio Educational Credit Union,Cleveland, is the first credit union in Ohio to go live with MemberStreet. "I think the credit unions are more comfortable with getting these products from corporates. We're the ones who know about credit union rules and regulations," said Paul Hixon, communications manager for Corporate One. One of the problems for credit unions looking to bring more products to the Web is connecting the credit unions' front end applications with their host processing systems. To help CUs with that issue, at press time U.S. Central announced that eCom was acquiring middleware software from Open Financial Solutions, Denver, Colo., a CUSO formed in 1998 by Bellco First FCU, Boeing Employees CU, GTE FCU, First Technology CU, Orange County Teachers CU and Patelco CU (CU Times Sept. 2, 1998), to try and cut down CUs' systems integration costs. U.S. Central will acquire the Portal II middleware as well as the intellectual property of OFS and all OFS employees will be given the opportunity to work for eCom. At press time it was unknown how many OFS employees were going to eCom. Steve Tolen, president of Mid-States Corporate FCU said corporates have the economies of scale to bring new tech products to market at low prices. He doesn't buy into all the talk about the good feelings CUs have with their corporates as a reason why corporates can be tech partners. "The bottomline is credit unions want to get them (tech products) from the most efficient place in terms of price and functionality," said Tolen. Tolen said who partners with who is actually becoming a sensitive issue in the corporate system. He said corporates might go in different directions no matter who appears to be leading the charge. In the future Tolen sees corporates as full-blown tech partners with CUs, especially in the areas of networking and communications. "I think LANs and communications are two areas corporates can really leverage their tech infrastructure and assist credit unions." Some corporates have been as successful as many tech vendors in providing CUs with tech products. Mid-Atlantic Corporate FCU has 75 credit unions signed up for its bill payment product, which comes from FundsXpress, a vendor CUNA has partnered with. "It's a natural. Corporates are payment processors. Bill payment is just a new level of payment processing corporates are expected to do," said Leigh Philibosian, vice president of marketing for Mid-Atlantic Corporate. Technology products are also saving corporates money. Bob Fouch, executive vice president for Wisconsin Corporate Central CU said the corporate is saving money because of its 24/7 system that gives member CUs internet access to their accounts and the ability to do transactions such as wire transfers and ordering coin and currency. "It's definitely saving us a lot of money, but it also allows us to take our most precious resource, our staff, and direct them in different areas," said Fouch. Fouch said people may not realize how much time corporate employees used to spend on the phone taking orders from CUs. Corporates are also able to make the costly investment needed to offer the latest and greatest tech products. Bill Birdwell, WesCorp's chief operating officer, said WesCorp has upgraded all of its software, hardware, networks, and online access to make sure its wired for the future. One area WesCorp sees it helping CUs with is in the world of wireless communications. "We're looking at a lot of wireless communications, where the technology is going in the future, and making sure we can meet the needs of credit unions regardless of where they go," said Birdwell. He said many CUs may not have the infrastructure to stay current in the fast-paced tech world, but those CUs can leverage off WesCorp's infrastructure. Still Birdwell doesn't see corporates getting involved on all technology levels. "There are certainly some areas we don''t have any business being in. We are not a data processor," he said. -pgentile@cutimes.com...

LAKE BUENA VISTA, Fla. - Four months after the state Credit Union Review Board voted to accept the recommendation of an administrative judge in favor of credit unions and the business lending practices of a small business lending corporation formed by three of the state's CUs, Wisconsin bankers are still upset about the success of the Business Lending Group. The Wisconsin Department of Financial Institutions has already supported the right of the credit unions, all state chartered, to make business loans and the right of CUSOs to assist credit unions in making such loans (CU Times, Dec. 22, 1999.) Now the bankers are suing the state credit union regulator in circuit court and continuing to challenge the legal rights of CUSOs. Speaking at a breakout session during the CUES Marketing, Operations and Technology Conference, Greg Hilbert, president and CEO of Fox Communities Credit Union, said he "didn't expect the ferocity of how the banks don't like us. There's a lot of anxiety in the banking community." Fox Communities CU, Appleton, is one of the three CUs that formed BLG. The other two are Banta Community CU (Menasha) and CitizensFirst CU (Oshkosh). Actually, Hilbert added, the issue grabbed front page coverage in a local newspaper, generating publicity that BLG could never have afforded and perhaps helping the CUSO meet financial objectives well in advance of its original business plan. "We're confident we'll win pretty easily in court," Hilbert said. Originally, Hilbert explained, a business lending specialist at a local bank approached some credit unions about offering business loans. The bank he worked for had been absorbed in a merger, and the man was interested in applying his experience someplace else. Seven credit unions got together to discuss the idea and hired a marketing group to conduct focus group studies among local business owners. The findings indicated businesses were frustrated with existing lenders because: * Decisions were being made on a regional rather than local basis. * Accounts were serviced outside the area. * Loan officers frequently changed jobs. * Decision-makers no longer understood the borrower's business. * Lending policies changed due to sales and acquisitions. The focus groups indicated they wanted: * Personal relationships. * Local decision-making. * Loan officers who understand the applicant's business. * Guidance and support. * Hassle-free applications. * Competitive rates. * Flexible terms. The project was on hold for a while after four credit unions dropped out, but the remaining three carried through and formed BLG. "Our credit union had been making business loans, but on a smaller scale," Hilbert said. "When you're a community-based credit union, there's an expectation you will provide services to all segments of the community." By banding together, he continued, the three credit unions "could afford more expertise and hire someone with the needed experience. We also wanted to get the best software we could. We felt it was important to have a neutral, off-site location not at one of the partnering credit unions." The three credit unions own BLG equally, each having a one-third stake. Each credit union contributed about $25,000 start-up money to buy capital equipment. BLG is a registered mortgage broker and BLG officers are registered loan originators. As a CUSO, BLG does not fund the loans, which are instead funded directly by the credit unions. The referring credit union originates the loan, and the others participate. So far, Hilbert said, the credit unions have been fairly equal in terms of loan amounts they've been bringing to BLG. The original business plan assumed there would be three employees the first year, with a credit analyst added to the staff the second year. Average yield would be 8%, the average loan $150,000, and BLG would approve $10 million in business loans the first year. Since BLG opened its doors in June, 1999, the CUSO has already granted $20,735,000 in business loans. The average loan is about $250,000, or approaching double what the founders projected. "We expect to reach the break-even point in the next three months," Hilbert said. "The spread has been narrower than what we looked for, but obviously the volume has been higher than we anticipated. We found there was a lot of pent-up demand." In a number of cases, he noted, BLG has been forced to trim interest rates to meet competitor's offers. Finding other credit unions to participate in loans has been important. For example, BLG wrote a $7 million real estate loan. The CUSO needed to participate $3 million out to other credit unions. "It's an extremely competitive business," Hilbert said. "All three credit unions are not on the same data processing system. It takes a strong commitment by all three owner credit unions to work together." -...

Gaylin Witzel, board member, John Deere Community hones his auctioneering talents..............................................Page 20...

ALEXANDRIA, Va. - According to Bob Schafer, director of the office of corporate credit unions for NCUA, looking at the year-end 1999 stats, one thing is clear, the corporate network is extremely healthy....

NEW YORK-The New York Times Sunday Business section of April 9 featured a column by reporter Fred Brock about how consumers are irritated by the "double whammy" of paying a fee to two banks for the privilege of getting their own money at ATMs. Those "foreign" transaction fees" can be avoided, however, in a number of ways he said. One way is to bank through the Internet, where several sites like X.com and First Internet Bank will refund a limited amount of other banks' charges, up to $6 per month. That may be inconvenient; but there is another way, wrote Brock. Replace a checking account with an asset management account at Charles Schwab or Merrill Lynch, which offer unlimited refunds for surcharges. This is costly for all but those who keep $100,000 balance or more in their accounts. Then, there are credit unions, said Brock, stating: "Another alternative is credit unions, if you have access to one. But be careful: some are following banks to the ATM jackpot."...

WASHINGTON - At press time the House Banking and Financial Services Committee approved legislation (H.R. 2848) to form the American Private Investment Companies (APIC) program. The program is aimed at increasing private job-creation investments in communities with high unemployment rates. The legislation will create a number of companies licensed by HUD as for-profit private venture capital firms and provide government guarantees of company debentures, provided the licensee brings at least $25 million in private equity capital and substantially serves low-income distressed neighborhoods and communities. "One of the stark difficulties in our economy ... is that the gap between the well-to-do and the less well off is widening. While there is anecdotal evidence that job opportunities are expanding to the most disadvantaged parts of the population, clearly more can be done so that all Americans have the opportunity to work at fulfilling jobs and to provide for their families," said Committee Chairman James A. Leach (R-Iowa)....

DUBLIN, Ohio - Ohio Credit Union System President Paul Mercer has named John Florian Chief Operating Officer of the Ohio Credit Union League. Florian joined OCUL in 1991 as director of government affairs. He has been the league's vice president of advocacy since 1997. He assumes the COO role immediately....

SCOTTSDALE, Ariz. - More than 25 executives from credit unions throughout the U.S. and CUNA representatives were among the attendees at the first-ever Credit Union CEO Forum recently hosted by Visa U.S.A.. The three-day forum featured presentations by Visa representatives on a variety of strategic product initiatives including e-Visa, online and offline fraud protection, emerging technologies for the national payment system, and the continued growth of Visa's debit processing services. Visa has an 80% market share of the offline, signature-based debit card market in the U.S. Credit unions were among the early adopters of the technology. Credit unions interested in receiving advanced notice of next year's Visa CEO Forum should contact Janie Krohmer at Visa Debit Processing Service, (262) 641-2372 or jkrohmer@visa.com...

WASHINGTON-At press time it was announced that Federal Reserve Chairman Alan Greenspan will appear before the Senate Banking Committee on April 13 to address the "regulatory and structural environment for the changing securities market." "Nothing will have a greater impact on the future of the economic strength of America than the strength of our securities markets" said Senator Phil Gramm (R-Texas), chairman of the Senate Banking Committee. "And there is no one whose view on the future of the securities markets is more important than Alan Greenspan's," he added....

LOS ANGELES - Automated clearing house (ACH) payments totaled more than 6.2 billion in 1999, a 16.9% increase from the previous year, according to statistics from NACHA-The Electronic Payments Association. The annual volume of ACH payments is now four times greater than 10 years ago, said Kevin O'Brien, NACHA chairman. The dollar amount of 1999's ACH payments increased from $18.1 trillion in 1998 to $19.4 trillion in 1999, a 7.4% increase. ACH payments include business-to-business payments, direct deposit of payroll, Social Security benefits and tax refunds, direct payments of mortgages, car loans, insurance, utility and other bills, and federal tax payments. NACHA statistics also showed increases in 1999 from 1998 in the number of bill payments and other consumer debit payments made over the ACH Network - up 19.4%; use of the ACH network for business payments, up 16.0%....

CHICAGO - The MEMBERS Development Company board will meet on April 24 and 25 here to start plotting the course for MDC's operations over the next few months. MDC was formed earlier this year by a group of credit union and CUSO CEOs and CUNA Mutual. The group is looking at bringing strategically important products and services to the credit union industry. At the Chicago board meeting the group will attempt to bring a focus to which projects it wants to begin first. Some of the topics MDC was evaluating in an ownership survey include e-commerce initiatives; a broker/dealer network; member service relationship pricing model; a nationwide branding campaign; direct channel for low-load mutual funds; and others. MDC hopes to have their focus narrowed down to two or three topics by the end of the upcoming board meeting....

MILWAUKEE, Wis. - Beginning April 14, more than 2,000 local clients of Consumer Credit Counseling Service (CCCS) were able to make their debt management plan payments at three area Credit Union Service Centers. The CU Service Centers are located on West Layton Ave. in Greenfield; West Brown Deer Road in Milwaukee, and East Sunset Drive in Waukesha. CCCS is a national resource for budgeting and debt counseling. It has five Milwaukee-area offices. Payments made by CCCS clients at the Credit Union Service Centers are deposited into a CCCS trust account, from which CCCS disburses payments to creditors. CCCS clients do not have to join a credit union to make payments at the service centers....

BEAVERTON, Ore. - Corillian's IPO wasn't exactly a hit. The company priced 4,000,000 shares of its Common Stock at a price of $8.00 per share. The company had expected to get somewhere between $10 and $12 for its stock. At press time the stock was down to 7 3/4. Corillian is led by Ted Spooner, who once served as chief technology officer at First Technology CU, Beaverton, Ore. -pgentile@cutimes.com...

ENGLEWOOD, Colo. - Cavion.com's e-commerce division, Member Emporium, has entered into a multi-year agreement with iDigit Networks for support of Member Emporium's Internet access service for CU members. The agreement will allow Member Emporium CU clients to offer high-speed dial-up and ISDN Internet access. Members can get multiple e-mail accounts and personal Web hosting features. Acting as members' Internet Service Provider is a tech area credit unions are beginning to look more closely at. It gives credit unions an e-mail database to utilize in marketing efforts, as well as keeping the CU's name front and center in the members' eyes. Credit unions using Member Emporium can present weather, news, search engines and other portal-like features next to the credit union's own content....

SALT LAKE CITY - CUSA Technologies, a Fiserv data processing subsidiary, released its Executive Reports WorkStation 2.0, a client/server-based reporting system. Version 2.0 gives CUs greater access to critical data, according to CUSA. Credit unions can analyze data based on market segments, back office detail, usage statistics, employee statistics and other CU database pieces of information. Report options are more customizable, allowing users to change layout features. For more information visit www.cusa.com....

ARLINGTON, Va. - NAFCU Services Corporation has partnered with c2future.com, publisher of eMoney Digest, an online personal finance magazine for credit union members. Credit unions can brand eMoney Digest with their logo and present it as if the credit union was publishing it. As an NSC Preferred Provider, NSC will steer credit unions to the product. "In recent years NSC has focused on introducing innovative Internet tools to the credit union industry that would further the member retention and acquisition efforts," said Steve Joiner, president of NSC. "eMoney Digest is educational and fun for members and absolutely free to the credit union."...

PHILADELPHIA - Credit union data processor USERS, a unit of Fiserv, will host over 200 credit union representatives at its 2000 User Group Meeting to be held April 18-19 at The Sheraton Society Hill Hotel in Philadelphia, Pennsylvania. USERS Internet and Intranet technology solutions are expected to take center stage during the conference. "We know that e-commerce is playing an increasingly important role in the credit unions' business, so were making it an increasingly important part of USERS business," said Dave Schlenker, President/CEO, USERS. USERS next client conference will be EdCon 2000, scheduled for September 12-14, 2000 at the Hyatt Grand Cypress in Orlando, Florida....

COLUMBUS, Ohio - There's a trend of natural person credit unions converting from federal charters to state charters. It's the opposite in the corporate system. Both Minnesota Corporate Credit Union and Corporate One Credit Union cited savings from state operating fees as one of the reasons behind their conversion to federal charters. Corporate One said their conversion to a federal charter will save them nearly $100,000 a year in tax and operating expenses. The corporate also said the conversion simplifies the requirements for serving state-chartered credit unions located outside of Ohio. The third reason cited was that many of the regulatory and legislative issues facing corporates are on the national level, where corporates are represented by the Association of Corporate Credit Unions, which is becoming more active in legislation affecting corporates....

NAPERVILLE, Ill. - Last year's merger of INDICORP and Mid-States is having direct benefits for the new corporate's member CUs. Mid-States announced that it has increased yields and reduced prices on some services that results in an estimated $5 million savings for its members. "Pre-merger, over $3 million in annual benefits were identified by management and we told our members that these were conservative estimates," said Mid-States CEO Don Finn. "We figured that we could return more than $3 million per year, but the $5 million mark is really fantastic." Because of account restructuring, 100% of all overnight/daily balances earn higher yields. Compensating balances and low yielding settlement accounts have been eliminated. "This not only returns an additional $4.4 million to members, but it greatly simplifies member settlement operations, and time is also money," said Mid-States President Steve Tolen. The corporate said the merger has also allowed it to reduce item processing fees at a reduction of $370,000 per year. Mid-States has eliminated its line of credit fee, lowered check collection fees, reduced the Monthly Electronic Money Position Fee by 80% and lowered other service fees totaling an estimated $750,000 annual reduction in fees. Another key aspect of the merger was technology. Mid-States has brought all its data processing in-house and all INDICORP/Mid-States accounts will be merged on May 30, 2000. The Member Electronic Connection is being redesigned and renamed e-FACTS. The corporate also plans on revamping its imaging capabilities to help natural person CUs. "While our members can currently receive share draft images over the Internet, by the end of this year we will enable our members members to access images in a secured environment," said Tolen....

GREENSBORO, N.C. -First Carolina Corporate CU is now offering its member credit unions Memberstreet, an Internet banking product hosted by Corporate Network eCom, a CUSO formed by corporate CUs and U.S. Central. Memberstreet offers Internet banking as well as electronic bill payment and bill presentment services. The product can be customized for individual credit unions. Credit union members can access Memberstreet via a link on the CU's home page, however the Web address for Memberstreet is reflective of each CU using the product....

HALES CORNER, Wis. - Wisconsin Corporate Central CU was one of the first corporates to provide its members with access to accounts electronically back in 1997. Back then members were accessing their accounts via a Web-based Intranet at wccu.com. Now the corporate is making account access available over the Internet. "Our members rave about the product, and we continue to make enhancement and improvements, including the most recent, Internet access," said Mark Schroeder, president/CEO of Wisconsin Corporate Central CU. The corporate's electronic services have been a big hit with its members. Currently over 60% of its members utilize wccu.com. In December alone members logged in 7,964 times with just over 1,000 hours of connect time. During 1999 there was an average of 6,618 log-ins per month with approximately 1,145 hours of connect time. The new Internet link is supported by a T1 line. Wisconsin Corporate Central CU has $827 million in assets....

WASHINGTON - Members of the Association of Corporate CUs met with authors of the General Accounting Office's study of the credit union liquidity system recently. The Central Liquidity Facility was a big talking point in the discussion. The GAO is looking into the liquidity of the industry on behalf of members of Congress who are considering permanently raising the cap on the CLF. It was raised last year to meet any potential Y2K liquidity needs, but it is set to return to its $600 million level-which many credit union leaders believe is a mistake. "The CLF was formed because of the liquidity crisis in the 1970s," said WesCorp CEO Dick Johnson, chairman of U.S. Central CU's CLF Interface Committee. "Credit unions, corporates, and U.S. Central were struggling like other financial institutions to meet liquidity needs-but unlike other institutions, we had nowhere to turn for liquidity. We never want that to happen again." Back in the `70s credit unions could not access the Federal Reserve discount window, and today about 40% of credit unions don't have access to the Fed because they don't offer checking accounts, according to CUNA. The GAO's first report, due out in May, will focus on the CLF...

SAN DIMAS, Calif. - Employees of WesCorp have contributed an all-time high of $20,000 in their 2000 United Way Campaign. Because of reaching the $20,000 mark, WesCorp is making a special institutional donation of $4,000, bringing the total contribution to $24,000. Approximately one-third of WesCorp's employees made donations. "I'm proud of our employees and their generosity to this very worthy cause," said Richard Johnson, president/CEO of WesCorp. WesCorp has supported the United Way for the last 10 years....

I just want to let you know how much I really appreciated Mike Welch's column in the March 8 issue regarding our egotistical Chairman, Mr. D'Amours. I was not at the GAC but have made it a point to try to avoid anything D'Amours is at after attending a NACUSAC conference where he was a speaker. I personally don't believe he has ever figured out what credit unions or volunteers are about. Thank you for letting me know that my opinion wasn't completely off! Pam Klavinski Vice President/CFO Samaritan Federal Credit Union...

In reference to Mike Welch's Feb. 23 publisher's column on how credit unions deal with change ("Credit unions look at change at least three ways," I would add another area where credit unions fought change. It concerns the struggles the movement went through to move from computing prime share savings dividends on a quarterly, low balance basis to a compounded, daily basis. It literally took our board and management years to come around on that issue. However, we really never noticed the change once we took the plunge into those icy waters. Chuck Kennedy Director Tower Federal Credit Union...

In response to Mike Welch's March 22 column about cooperation and competition-"Cooperation and competition can co-exist" I could not agree with him more. There is a term coined for the concept-"Coopetition." The key to the concept is very straight forward:You do not have to blow the other fellow's light out for yours to shine. This concept is different than the standard view of business: "It is not enough to succeed. Others must fail" (Gore Vidal). Quite simply we should cooperate to create and expand a market but compete for our individual piece of the market. The bigger the pie the bigger your slice. I'd love nothing more than to see credit unions put their name up on a big building - their common name is irrelevant, their surname CREDIT UNION is the key. Credit unions that are squeamish when they see the "big guys" advertising or opening offices have leadership that does not appreciate the worth of their company. They do not exist because they are tax exempt or because NCUA Chairman Norm D'Amours is protecting them. They exist because their brand of service is what a segment of the market wants. They exist because of who they are. These credit unions are not going to go by the wayside because of products but because of failing to recognize their true value - their ability to shine. Once they understand how they shine and take the leap of sharing it with the market - the bigger the market the bigger their slice. Here in Minnesota there is plenty of market for everyone. Some choose to hang back and not leverage their light; these are the ones that will blow their own light out. I just returned from my home state of California and the credit union business is going great guns! And imagine that the state allows overlaps just about everywhere. In my home town of Folsom, Golden 1 has two offices and medium-size American River (originally a small credit union serving a single sponsor) has an office up and running. The presence of Golden 1 simply heightened consumers' awareness of credit unions as an alternative banking solution and American River is reaping the same benefit. Anyway, I say open the doors to credit union-on-credit union competition and cooperation, those who are willing to step up to the porch will reap the benefits while those unwilling to step up will be lost in the dust; not because of big credit unions or banks, but because they were unwilling to take their product to the market. John G. Gisler President Twin City Co-ops FCU...

WORLD WIDE WEB - Credit Union Times' third annual credit union Web site contest, the eAwards, is now open for entries....

You've heard it before: "Credit unions are member-owned and member-driven." It's the mantra our system hums to reinforce our uniqueness in a world filled with alternatives. It's the pivotal difference that distinguishes credit unions from all other financial service providers. Proving the tangible value behind the words, however, is tough business. Tough for natural person credit unions and tough for corporate credit unions (corporates). Corporates, like their natural person credit union members, are not-for-profit financial cooperatives. They were founded expressly to provide low-cost financial services and competitive investment and lending rates to their members. But, what is the added value that corporates bring to the "member-driven" proposition? Consider this. Last year, corporates processed over one billion items on behalf of their member credit unions. They transferred over $600 billion in funds through electronic payments services such as wires and ACH. They facilitated over $17.1 billion in cash for their members and they offered over $13.7 billion in approved credit lines to members. Corporates' strength is their ability to leverage economies of scale in the areas of item processing, payments settlement and investments for their members' benefit. They serve as an integral link in the chain of financial transactions initiated at the credit union member/consumer level. Corporate credit unions emerged more than 20 years ago from the same cooperative spirit that gave rise to the American credit union movement in the 1930s. As the credit union movement grew, the urgency for central credit unions-or "credit unions for credit unions" -became apparent. Corporate credit unions were born of that need. Corporates became a source of low cost liquidity for credit unions, usually saving them significant sums of money when they needed to borrow. Also, with deregulation of the financial services industry in the early 1980s, corporate credit unions eliminated credit union reliance on banks and other vendors through products and services designed to meet the needs and safety standards of credit unions. Diligently providing financial services that keep pace with emerging technology, flexible service capabilities and marketplace income opportunities is part of the concrete value corporates bring to their member/owners. Offering everything from investment to payment services, corporates continue to provide their member credit unions with the high-quality, innovative solutions credit unions demand. Through more diversified business activities and sophisticated product and service capabilities, the corporate network is well positioned to continue leveraging synergies that credit unions can measure and from which they benefit. We live in a "What have you done for me lately?" world. Resting on past accomplishments assures extinction in the ever-changing business ecosystem. So, what have corporates done for credit unions lately to demonstrate the value of their member-driven philosophy? * Liquidity needs: Corporates played a key role in achieving a regulatory and legislative backstop for emergency Y2K liquidity for the credit union system. In May 1999, President Clinton signed into law an emergency appropriations bill which contains a provision that lifts the Central Liquidity Facility's (CLF's) borrowing cap from $600 million to more than $20 billion. Additionally, NCUA, the Federal Reserve System and U.S. Central Credit Union created a special arrangement for providing liquidity during Y2K that uses existing delivery systems including corporate credit unions and the CLF. Corporates' efforts helped bring about extra assurance for emergency Y2K liquidity for the credit union system. Corporates are working this year to assure that the CLF's borrowing cap stays at the full $21 billion statutory level. * Investment needs: Credit unions look to corporates as the benchmark against which to measure the other innumerable sources of investment products and services. Each corporate is in the business of managing a liquid portfolio so it can respond to members' daily liquidity and investment needs. Corporates offer high quality investments at competitive rates that are similar to other market opportunities. Moreover, corporates provide credit unions a great amount of flexibility in investment structures and maturities. Another benefit to credit unions is that corporate investments do not have to be marked to market or classified as "Held to Maturity" or "Available for Sale" under Financial Accounting Standard (FAS) 115. Corporates also continue to serve as trusted resources for guidance and information on investments and asset liability management. * Settlement services: One of the true strengths of corporates is their ability to provide well-priced settlement services to meet all credit union payments system needs. Corporates are active participants in their local and regional automated clearinghouse associations and work to assure that payments system rules don't disadvantage credit unions. Moreover, corporates serve as a conduit to the Federal Reserve thereby eliminating the need for credit unions to establish separate Federal Reserve settlement accounts. Many corporates provide item processing, ACH, cash/coin delivery, lines of credit and wire services to their members. These services empower credit unions to provide innovative payment solutions to consumers. * Reinvesting in our movement: Corporates are partners with the National Credit Union Foundation, Inc. (Foundation) in the Community Investment Fund (CIF). The CIF provides much-needed funds for national and state level development initiatives and a stable source of funding for Foundation grantmaking and endowment growth. Working through state leagues and foundations, distributions from the CIF will be used for credit union development such as: projects and programs that support new, small or community development credit unions; education of credit union employees and volunteers; public education initiatives related to credit unions; and programs that extend credit union services to the unserved or underserved. Corporates are bringing their expertise and member-driven philosophy to bear on this cooperative program that benefits national and state level credit union development initiatives. To date, the CIF has received over $20 million in investments from credit unions and corporates. * Seeking additional authority to meet credit unions' needs: The NCUA regulation (Part 704) that addresses corporate credit union operations is in the midst of being revised. Corporates have provided extensive comment to NCUA on areas of the regulation that require amendment or clarification in order for corporates to bolster the value they bring to members. Specifically, corporates are pursuing the authority to engage in loan participations with their members in addition to broadened investment authorities within the parameters of safety and soundness. Profit is not the driving force for any of the services and products outlined above. Rather, corporates are driven by their members to take advantage of economies of scale. Each and every day corporates provide the services, processing and products credit unions require to meet their own members' financial service needs. That is the very tangible value corporates add to the credit union system....

Many credit unions take time out once a year to gather volunteer leadership and management staff together to take stock of where they are, evaluate past accomplishments, and most importantly, to plan for their credit union's future. Some of these planning sessions are rather elaborate affairs, held on weekends at upscale venues, with a full schedule of work and play time. Some are bare bones get togethers that are held in the evening in credit union meeting rooms following a soup and sandwich meal. Many utilize an impartial, outside facilitator. Others count on the credit union chairman or CEO to run the meeting. The second approach usually doesn't work well. For one thing, there is the possibility the meeting will become just another board meeting. Regardless of how they go about it, however, credit unions that conduct formal planning sessions have in common a general goal of developing a roadmap for the credit union on which policymakers and staff can agree. Also, to set some rather specific objectives in terms of key CU numbers and timetables by which those numbers can be expected to be achieved. The planning meeting should not, however, be considered and end in itself. The best outcome from any credit union planning meeting would be to use the meeting as a springboard for agreement on an action plan. In other words, to come away from the planning session determined to build on it by doing something new and different. The worst case scenario is if the group goes back home to take up business as usual. Here are some ideas that a credit union's official family (board and staff) might put on their "go-home-and-consider-doing" list following their annual planning meeting: * Investigate changing the name of the credit union. Seek a name that more accurately reflects the current and future membership of the credit union. Consider a name that is more memorable, one that more accurately reflects the correct image of the CU, and one that gives the credit union a competitive edge. * Review your credit union's "membership qualifications" (not your "field of membership" or "common bond."). Who is eligible to join? Who should be? Is the credit union really taking care of those who need the credit union's services? Is it serving those whom the CU wants to serve to assure continued prosperity for the credit union? * Consider a merger for the benefit of the members of both credit unions involved. Look at the economies of scale issues. Consider member convenience issues. Chances are, if your credit union isn't looking at another credit union as a possible merger partner, there is another credit union looking at yours with similar designs, no matter the size. * Examine your credit union's board and committee structure. Do both still make sense in light of the strategic direction in which your credit union is headed? Do they still provide a good fit with your credit union's long-term goals, short-term objectives, and list of top priorities? Do they still make possible an effective decision-making process? * Examine the credit union's staff structure and ask the same questions. Also ask if some positions should be eliminated? New ones added? Is the Peter Principle alive and well? * If it wasn't done at the planning session, establish a short list of CU priorities ASAP afterwards. Boil down everything your credit union does or wants to do into no more than 8-10 priorities. Keep them very general. (Caution: here is where it is especially important to remember that the credit union's policymakers should deal only with the "What" and leave the details, the "How," to the staff.) * Determine if your credit union's mission statement still makes sense. Does it reflect the new competitive environment? Does it address increased member demand for more convenient delivery systems? And alternative investment products? * Evaluate whether or not your members want everything on your P&S laundry list? Based on usage levels? Is it time to eliminate some? Add some? Ask them. * Step back and evaluate the perception others not as close to the CU may have of your credit union. What image does your credit union portray? What image do you think it portrays? What image do you want it to portray? Would you be impressed as a brand new member walking into the credit union for the first time? * Analyze your board meetings. Does the time, place, format, agenda, timeframe, and purpose, still make sense? When is the last time the subject was even discussed? * Study the credit union's charter. Does it still make sense in light of what members want and what you are allowed to provide to them? What type of charter is best for members? State? Federal? Community? Thrift? Finally, both during and after the planning meeting, ask a couple of general questions that will probably lead to an obvious need to do something. Such as, where does your credit union fall short? And what could be done to make it better? Or ask what it is that you are most proud of at your credit union? Ask what can other credit unions learn from yours? Ask what can you learn from them? Answers to questions like these can lead to valuable additions to an action plan which in turn will give the credit union plenty to discuss at the next planning session. After planning sessions, credit unions often fall into the trap of not looking beyond their own little credit union world and thus lull themselves into a Pollyanna feeling that all is well and couldn't get better. But members won't hesitate to look beyond the credit union to have their changing needs met. Credit union planning meetings can be made more valuable if they result in the credit union leadership leaving them committed to doing something new and different that benefits the membership. Comments? Call 1-800-345-9936, Ext. 15, or Fax 561-683-8514, or E-mail mwelch@cutimes.com....

Purdue Employees FCU, W. Lafayette, Ind., has made the following appointments: Virgil Vaughn manager of commercial lending; and Celeste Racette, manager of settlement services. Warrick FCU, Newburgh, Ind., has elected the following to its Board: James Fanning, Joe Seibert and Teresa Redden. Wisconsin Credit Union League has announced the following promotions: Evan Bane, vice president-public affairs, and Todd Spiczenski, vice president of member services....

Chartway FCU, Virginia Beach, Va., has made the following appointments: Paul Annunziata, executive vice president of operations/CFO; Phillip Richards, vice president of strategy; and Lewis Smith, controller. First Atlantic FCU, W. Long Branch, N.J., has made the following appointments: Dolores Bedell, business development coordinator; and Linda Pearson, marketing assistant. US Airways FCU, Moon Township, Pa., has announced that President/CEO Ralph B. Canterbury has retired after 34 years at the helm. The FCU has grown from 1,200 members in 1965, when Canterbury took his position, to 97,000 today. Virginia CU has named Lee Sauvain senior vice president of member services....

Bank Building Corp., St. Louis, a design and construction firm for financial institutions, has made the following appointments: Gary Binette, division vice president, Southeast U.S.; and Steve Rael Jr., division vice president, Western states. CUNA Mutual, Madison, Wis., has named John Maglio account vice president for the western marketing division. He will be responsible for serving credit unions in Oregon. Financial Service Centers Cooperative Inc., San Dimas, Calif., has named Brooke Barbee, corporate officer. Fiserv UniFi Products Group, Plantation, Fla., (a unit of Fiserv Inc.) provider of client/server origination systems, has named Tammy Martin senior vice president of client services. Symitar Systems Inc, San Diego, a CU provider of technology solutions, has named Kathy Hooker national sales manager, and Mark Brocklehurst installations & training manager....

Arkansas Best FCU, Fort Smith, Collection Officer Patricia Barnes is the first CU professional in the nation to earn the Staff Training & Recognition security certificate, presented by CUNA & Affiliates Center for Professional Development. Cy-Fair FCU, Houston, which has opened a new branch in Stone Creek, held a ribbon cutting earlier this year. Annette Neal has been named branch manager. NuMark CU, Joliet, Ill., has announced that President/CEO Janice N. Dempsey planned to retire in early April. Eldredge Corporations, Carmel, Ind., an independent agency that provides insurance, lending and marketing products to more than 750 credit unions and other financial institutions nationwide, has announced that it has acquired R.T. Racine Agency, Grand Rapids, Mich. The merger was completed in early April. "We've worked closely with the Racine Agency for the last 15 years and share the same commitment to our industry," said Peter J. Hilger, Eldredge Corporations executive V.P. "We're dedicated to providing a high level of service and support to all our clients... With more than 20 years of experience... and an extensive product line, we feel we have a great deal to offer our newly acquired clients." Service One CU, Bowling Green, Ky., held its annual shareholders' dinner recently, serving a lasagna dinner and treating guests to door prizes that included $500 in cash and two round-trip airline tickets. In addition, magician and comedian Dick Stoner was scheduled to perform. Sonoma County Schools CU, Santa Rosa, Calif., has changed its name to Community First CU. The change was made because membership is open to anyone who lives or works in Sonoma County, not just education employees, a spokesman explained. In addition, because the CU reaches out to members' communities through a variety of programs, the new name now reflects the community aspects of the CU's endeavors, while allowing the business philosophy to remain closely aligned to the CU's educational roots, he said. Steel Works Community FCU, Weirton, W. Va., has opened a new office in Wintersville, Ohio. Juanita Costantini has been named office manager. Members have been asking for a branch office in that area for quite some time, said SWCFCU President Richard J. Krauland. Teachers FCU, Golden Valley, Minn., has announced the opening of its new Maple Grove branch in the Arbor Lakes development at 7799 Main St. TFCU serves more than 46,000 members and has nearly $300 million in assets....

AM FCU, Rancho Dominguez, Calif., and HRD Network, Pomona, have announced that AMFCU President/CEO Eileen Doerrer has been awarded this year's Kern Schools FCU Patti Reed Educational Scholarship, named to honor Kern Schools staff member Patti Reed for her commitment to volunteerism. "The HRD Network is invaluable to small credit unions because it provides free access to Web site legal updates, training, HR manuals, educational programs and more," Doerrer said, in thanking Kern Schools at HRD's annual meeting. Sidney FCU, Sidney, N.Y. has announced that Sertoma, a not-for-profit organization has awarded James Suriano, director and chairman of the SFCU board, the "Service to Mankind Award" in recognition of his efforts to better his community and his dedication to the city. Unocal FCU, El Segundo, Calif., has announced that HRD Network has awarded UFCU CEO Judy Hurst its Virginia Baldauf Human Resource Professional of the Year Award. In addition to filling positions and establishing a training plan within Unocal FCU, Hurst also serves on the board at the California CU League. She also serves as president of the Southern California/Arizona CUES Council....

The Summit Chapter of the Ohio CU League recently asked its member CUs to help raise funds to purchase shoes for need children. More than 30 CUs in Ohio's Summit, Medina and Portage counties responded, raising $16,000 to purchase 200 pairs of shoes for the kids. Wisconsin CU League, Pewaukee, asked members to help needy children in need of medical care by purchasing links (hot-pink paper strips bearing the name of someone the member cares about) during its recent Chain of Hearts CMN fund-raiser. Members purchased links for $1, or opted to give a larger donation for paper hearts that were displayed in CU lobbies. Former Olympic gymnast Mary Lou Retton made a recording in support of the effort. Staff and volunteers are working toward WCUL's $150,000 goal, and will continue fund-raising efforts with bake sales, cookouts, auctions and raffles....

Teachers FCU, Farmingville, N.Y., will award $1,000 scholarships to six Suffolk County high school seniors who plan to continue their education. These scholarships are available to TFCU members or children of members who are graduating this spring. The application deadline is May 11. U-Lane-O CU, Eugene, Ore., has awarded $4,000 each to 25 undergraduate students at the University of Oregon, through its U-Lane-O Scholarship Program. Recipients are selected on the basis of demonstrated financial need, academic excellence and contributions to the community....