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CU System Briefs (01/08/2014)

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  • WASHINGTON, D.C., and BALTIMORE (1/8/14)--Karen Gouldmann is the new, shared chief financial officer of $68 million-asset Department of Labor FCU, Washington, D.C., and $57 million-asset Destinations CU, Baltimore. Gouldmann will split her time between the two credit unions, working in both offices as needed. She was most recently employed by Tower FCU after its merger with U.S. Coast Guard CU, Baltimore, where she served as CEO. She has also served as vice president of audit and compliance for MECU, Baltimore, and senior auditor for Provident Bank ...
  • BEAVER FALLS, Pa. (1/8/14)--Beaver Valley FCU, Beaver Falls, Pa., announced the retirement of CEO Albert Tripodi. He began his career with Beaver Valley FCU, then B7W Employees FCU, in 1952 as a member of the supervisory committee. He was elected to the board of directors and appointed CEO in 1955. Aaron Kniess, who most recently served as Beaver Valley FCU's assistant manager and chief financial officer, will succeed Tripodi ...
  • ARLINGTON, Va. (1/8/14)--The National Association of State Credit Union Supervisors (NASCUS) announced that Jenny Champagne, vice president of regulatory and government relations, is leaving the organization. Also, Elizabeth Kirkland has joined NASCUS as director of communications and marketing. In her years at NASCUS, Champagne has overseen educational programs, regulatory and government relations and communications. Champagne is pursuing a secondary education career. She will begin working as a teacher-in-training in a middle-school English classroom in Northern Virginia this month and earn her teaching certificate in May. Kirkland, who formerly served as the director of publications for the Alexandria, Va.-based International Public Management Association for Human Resources, began her role as NASCUS' director of communications and marketing Dec. 16 ...
  • NEW YORK (1/8/14)--The National Federation of Community Development Credit Unions' Annual Conference will be held May 14-16 in Detroit. The conference is the larger gathering of credit unions that share a mission of community development within the U.S. Sessions will focus on emerging markets, innovative products, new technologies, research and community outreach. Among the keynote speakers is Michael S. Barr, a key architect of the Dodd-Frank Wall Street Reform and Consumer Protection Act and a former U.S. Department of the Treasury's Assistant Secretary for Financial Institutions. Federation members save more than 35% when they register by Jan. 20 ... 

U.S. NewsTells Benefits of Joining a CU

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MADISON, Wis. (1/8/14)--A Jan. 7 U.S. News & World Report article put a national media spotlight on the many benefits credit union membership offers American consumers.
 
The article also provided answers to common questions about credit unions, and described how credit unions differ from banks in structure and purpose.  
 
"Customers frustrated with bank fees might want to consider their options, including switching their money over to a credit union," opens the article, headlined "The Benefits of Joining a Credit Union." "According to the Credit Union National Association, more than 96 million Americans use credit unions, which generally offer higher savings rates and lower fees than traditional banks."
 
The article explains that credit unions are owned by members rather than shareholders. Although the average credit union is smaller ($149 million in assets) than the average bank ($2.2 billion in assets), most credit unions still provide a full menu of financial services--and most Americans are eligible to join a credit union.
 
On average, credit unions offer lower rates on loans and higher rates on savings accounts, and credit union deposits are insured by the federal National Credit Union Administration, which provides the same protections that the Federal Deposit Insurance Corporation, the article said.
 
Also, credit unions pride themselves on being a source of financial information for their members, the article noted. "Many offer seminars and information on topics such as preventing identity theft and managing credit cards," the article said. "More information on any of these topics can be found at the NCUA website or by contacting a local credit union."

To read the full article, use the link.

Dorety Elected to NCUF Board

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MADISON, Wis. (1/8/14)--Tom Dorety, president/CEO of Suncoast Schools FCU in Tampa, Fla., has been elected to the board of the National Credit Union Foundation (NCUF).
 
Board elections took place at NCUF's board meeting Dec. 18.
 
Dorety takes the board seat previously occupied by Rudy Hanley, president/CEO, SchoolsFirst FCU in Santa Ana, Calif.
 
NCUF board members, including officer positions, re-elected at the meeting, include:
  • Lee Butke, president/CEO, Corporate One FCU, Columbus, Ohio, and board treasurer;
  • Angela McCathran, president/CEO, People's Trust FCU, Houston; and
  • Winona Nava, president/CEO, Guadalupe CU, Santa Fe, N.M., and board secretary.
The additional members of the NCUF board include:
  • Laida Garcia, president/CEO, floridacentral CU, Tampa, Fla., and board chairman;
  • John Radebaugh, president/CEO, North Carolina Credit Union League, Greensboro, N.C., and board vice chairman;
  • Bill Cheney, president/CEO, Credit Union National Association, Washington, D.C., and board president;
  • John Graham, president/CEO, Kentucky Employees CU, Frankfort, Ky.;
  • John Gregoire, president, The ProCon Group, Madison, Wis.;
  • Joe Guilfoy, executive director, Indiana Credit Union Foundation, and vice president, consulting and education, Indiana Credit Union League, Indianapolis, Ind.;
  • Stan Hollen, president/CEO, CO-OP Financial Services, Rancho Cucamonga, Calif.;
  • Christopher Roe, senior vice president, corporate and legislative affairs, CUNA Mutual Group, Madison, Wis.;
  • Mark Twisdale, executive vice president, administrative services, State Employees' CU, Raleigh, N.C.; and
  • Edwin Williams, president/CEO, Discovery FCU, Wyomissing, Pa.
The table officers were re-elected at NCUF's most recent board meeting Jan. 6.

N.J. Assembly Passes CU Advisory Council Change

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TRENTON, N.J. (1/8/14)--Legislation to expand the New Jersey's Credit Union Advisory Council (CUAC) to seven members and provide for representation of federally chartered credit unions passed the state Assembly by 78-0 vote Monday.
 
The legislation awaits signature by Gov. Chris Christie.
 
The bill expands the CUAC from five members. It designates that no fewer than four seats be held by representatives of state-chartered credit unions, and no fewer than two seats can be held by representatives of federally chartered credit unions, said the New Jersey Credit Union League (The Daily Exchange Jan. 7).
 
The CUAC was established through legislation enacted in 1984 as a vehicle for state chartered credit unions to advise state government on credit-union related matters. Members are nominated by the governor and must be confirmed by the state Senate.

Calif./Nev. League's Dykstra Stresses Card Security Changes in Op-Ed

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SACRAMENTO, Calif. (1/8/14)--The massive, pre-holiday card data security breach at Target serves to illustrate the serious need for tougher card- and cyber-security measures to protect consumers, according to an op-ed piece by Diana Dykstra, president/CEO of the California and Nevada Credit Union Leagues.
 
In the Saturday issue of The Sacramento Bee, Dykstra called for toughening the "dangerously weak credit and debit card security measures employed by U.S. retailers."
 
"For starters, we should ask American retailers to issue credit cards like those that are in widespread use in most other nations," she wrote. "These cards feature hard-to-replicate digital chips to store account information."
 
U.S. retailers' reliance on magnetic-strip cards make them "prime targets" for fraud, she said, encouraging consumers, the financial services industry and lawmakers to talk about considering technology such as Europay, MasterCard and Visa (EMV) chip-and-PIN cards.
 
Dykstra also called for cyber-security legislation at the national level that will hold those that conduct debit and credit transactions responsible for system breaches.
 
These steps are in the best interest of retailers, financial institutions and, most importantly, the consumers that they all serve, she concluded.
 
The cost of the breach, which affected more than 40 million consumers, will fall on the shoulders of the shoppers and their financial institutions, she said. Credit unions have to reissue and distribute replacement cards, and the cost of fraudulent transactions suffered by members will have to be covered.
 
For the full article, use the link.

CUNA Wants Your 'Unite for Good' Stories for GAC

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MADISON, Wis. (1/8/14)--The Credit Union National Association is asking credit unions to submit their "Unite for Good" stories for a special montage to be used at this year's Governmental Affairs Conference.
 
CUNA is collecting videos, photos and stories to highlight how credit unions "Unite for Good" every day on behalf of their members and communities.
 
Since the launch of the "Unite for Good" campaign last year, credit unions have told hundreds of stories of building homes, collecting food and clothing, helping communities recover after natural disasters, and providing financial guidance during sequestration and government shutdowns.
 
Now, those stories have a chance to shine at CUNA's signature conference, Feb. 23-27, in Washington, D.C.
 
To share stories, photos and videos, visit UniteforGood.org. Deadline for GAC content is Monday.

Auto, Biz Loan Growth Strong in Fla., Ala.

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BIRMINGHAM, Ala., and TALLAHASSEE, Fla. (1/8/14)--Alabama and Florida's 279 credit unions increased their loan portfolios by more than $900 million in the third quarter of 2013, with member business lending (MBL) accounting for a notable portion of the growth, the League of Southeastern Credit Unions reported.
 
"You can clearly see over the past three years more consumers are looking for loans," said LSCU & Affiliates President/CEO Patrick La Pine. "Credit unions have been in a great position to help their members purchase new and used autos, as well as new homes. Member business loans have picked up over the past 10 quarters as more businesses recognize credit unions want to help them grow their business."
 
Alabama credit unions added $187 million in new loans from the second quarter to the third quarter, according to call report data. About $8 million of those loans were MBLs.
 
In Florida, credit unions increased their loans by $753 million from second quarter to third quarter, with $61 million coming from MBLs. For the first three quarters of 2013, Alabama made more than $20 million in loans to small businesses, while Florida added $142 in MBLs.
 
The Credit Union National Association is urging Congress to allow credit unions to play a larger role in helping small businesses through MBLs. The statutory cap on MBLs loans, as a proportion of credit union's assets, is currently 12.25%. CUNA says that raising the federal government-mandated ceiling to 27.5% would inject $13 billion into the economy, and help boost employment by 140,000 at no cost to taxpayers.
 
Florida credit unions have seen delinquencies fall 33 basis points (bps), while net charge offs fell 32 bps. Both numbers have been cut in half over the past three years. Alabama credit unions have seen delinquencies rise slightly, but net charge offs continue to fall and are at the national credit union average of 0.57%.
 
Assets and membership are climbing among LSCU credit unions. Alabama credit unions added 38,000 new members through three quarters, bringing total membership to 1.876 million. Florida credit unions added 96,000 new members through the first nine months of 2013 for a total of 4.69 million members.
 
Alabama's 120 credit unions added $512 million in new assets through September for a total of $18.3 billion. Florida's 159 credit unions have added $1.6 billion in new assets for a total of $47.1 billion.

Registration Open for CUNA World-Class Service Institute

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MADISON, Wis. (1/8/14)--Registration is now open for the Credit Union National Association's World-Class Service Leadership Institute set for June 9-11 in Denver.
 
Attendees experience first-hand the exemplary service standards of The Ritz-Carlton and its staff, and take away how they can improve the service culture at their own credit union.
 
"Every year, we hear from attendees that this institute shines new light on credit union service cultures," said Angela Prestil, CUNA director of sales culture development. "By interacting with the Ritz-Carlton staff and experiencing their top-tier service culture from the other side of the counter, attendees learn what makes the biggest impact and walk away with a better idea of what member service means to them."
 
All levels of credit union professionals attend the institute, which focuses on skills and strategies for improving their credit union's service culture.
 
The institute's sessions cover the current state of service in America, the Ritz-Carlton's legendary service process, how to design a world-class service culture and how to develop skills to coach employees for service excellence. Attendees also will have an opportunity to get behind-the-scenes information during an exclusive, Ritz-Carlton employee discussion panel.