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New: CUNA Stats: August CU Loans, Membership and Savings Up

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MADISON, Wis. (10/1/13 UPDATED 11:20 a.m. CT)--Credit union loans, membership and savings all went up in August, according to the August monthly sample of credit unions by the Credit Union National Association.
 
Credit union loans outstanding grew 1.1% in August, led by adjustable-rate mortgages (1.9%), unsecured personal loans (1.8%), new-auto loans (1.5%), used-auto loans (1.3%), fixed-rate first mortgages (1%) and credit card loans (1%). Other mortgages and home equity loans each declined 0.2%.  
 
Credit union savings balances grew 0.9%, compared with a 0.5% decrease in July. The increase is a reflection of three paydays during August with the last payday landing on the last day of the month, CUNA said. Share drafts (6.9%), money market accounts (0.5%), and regular shares (0.1%) also grew during the period. On the decline were one-year certificates (0.3%) and individual retirement accounts (0.1%).
 
Total credit union membership grew 0.4% during August and now totals 98.3 million.
 
The movement's overall capital-to-asset ratio remained at 10.2%. The total dollar amount of capital is $110 billion.
 
Credit unions' 60-plus-day delinquency rate has remained at 1% for the past six months.
 
With loan growth outpacing savings growth during August, the loan-to-savings ratio increased from 68.9% in July to 69% in August. The liquidity ratio--the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities--is 17.8%.

Three CU Partnerships With Nonprofits Awarded $530K

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CHICAGO (10/1/13)--The National Federation of Community Development Credit Unions and the Center for Financial Services Innovation (CFSI) Thursday awarded $530,000 to three partnerships between credit unions and nonprofit organizations through the Financial Capability Partnership Initiative (FCPI).

"These partnerships will connect credit union products to the families and individuals who need them most, those who are traditionally hardest to serve," said Cathie Mahon, federation president/CEO. "This kind of innovative work is critical as we promote increased access to safe and affordable products and services in low- and moderate-income communities."

During the next three years, each partnership will integrate credit union products into social service delivery with the goal of fostering greater financial capability and independence for low-income and underserved consumers. Through the initiative, the federation also is depositing $1.5 million in credit unions to support partnerships and lending in underserved markets.

The initiative is managed by the federation, working with CFSI. Support for FCPI is provided by the Kresge Foundation.

In Phase I of FCPI, the federation and CFSI delivered tailored technical assistance to 10 nonprofit-credit union partnerships in seven target cities: Chicago; Cleveland; Durham, N.C.; New Orleans; San Antonio; the San Francisco Bay area; and St. Louis.

Also, a program-related investment from the Kresge Foundation has allowed the federation to deploy $1.5 million in deposits with participating credit unions in the seven communities. Three partnerships were selected from this group to receive grant funding for Phase II of the initiative.

The FCPI grantees are:
  • Mission SF (with Year Up Bay Area) and Self-Help FCU (San Francisco branch)--Integrating financial coaching programs and credit union products with award-winning work force development programs for low-income youth ages 18-24 in San Francisco.
  • The Community Builders and South Side Community FCU in Chicago--Engaging and supporting income-earning residents of a Work First Community Housing property with direct financial coaching and access to responsible financial products in Chicago.
  • Kingdom House and St. Louis Community CU--Further integrating credit union products with social services, focusing on debt reduction, asset building, and youth financial education in St. Louis.
The three selected partnerships also will receive technical assistance from the federation and CFSI on partnership design, and product and service delivery. A Learning Network also will be established to provide the Phase I and Phase II partnerships with peer-learning opportunities designed to strengthen their capacity and efficiency in delivering solutions that promote financial capability. During the pilot period, CFSI and the federation also will work with the grantees to document the experience of the partnerships and the impact of each program.

Alloya Corporate Announces Re-election Of Board Members

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WARRENVILLE, Ill. (10/1/13)--Alloya Corporate FCU in Warrenville, Ill., Monday formally announced the re-election of six board members during the board's annual meeting on Sept. 12.
 
  Re-elected to three-year terms were:
  • Chair--Amy Sink, senior vice president and chief financial officer, Teachers CU, South Bend, Ind.;
  • Robin Frucci, CEO, LAFCU, Lansing. Mich.; and
  • Floyd Rummel III, executive vice president and interim CEO, Northern Hills FCU, Sturgis, S.D.
Also, board members who were re-elected to two-year terms were Cheryl DeBoer, president/CEO, First Community FCU, Parchment, Mich., and Pete Gates, CEO, Michigan Schools and Government CU, Clinton Township, Mich.
 
Patrick White, general manager, Flint (Mich.) Area School Employees CU, was re-elected to serve for one year.
 
Other returning board members include:
  • Vice chair--John Fiore, president/CEO , Motorola Employees CU, Schaumburg, Ill.;
  • Treasurer--Leanne McGuinness, senior vice president and chief financial officer, The Summit FCU, Rochester, N.Y.;
  • Secretary--Curt Cecala, CEO, TCT FCU, Ballston Spa, N.Y.;
  • Daniel Stoltz, president/CEO, SPIRE FCU, Falcon Heights, Minn. and
  • David Suvall, president/CEO,  Rhode Island CU, Providence, R.I.
Alloya's Supervisory Committee for 2013-2014 includes: Chair--Charles H. Rogers, chief operating officer, Progressive CU, New York City; Michael Daugherty, president and manager, Community Plus FCU, Rantoul, Ill.; and Bernard Williams, CEO, Wanigas CU, Saginaw, Mich.

SECU, Diebold Partnership Focuses On Jobs

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GREENSBORO, N.C. (10/1/13)--Officials from State Employees' CU (SECU) in Raleigh, N.C., and Diebold Inc. met Friday at Diebold's Greensboro plant to speak about North Carolina jobs.
 
Click to view larger image Officials from State Employees' CU in Raleigh, N.C., and Diebold Inc. met Friday at Diebold's Greensboro plant to speak about North Carolina jobs. (Photo provided by State Employees' CU)
Diebold is a CUNA Strategic Services provider.
 
Earlier this year, SECU contracted with Diebold to upgrade its network of 1,100 CashPoints no-surcharge ATMs, all of which are located in North Carolina and assembled in the Greensboro facility. For SECU, the partnership was advantageous for many reasons: Diebold is a leader with technology and service, and equally as important, the company has a base in SECU's home state, the $25.1 billion asset credit union said. With the assembly for SECU's ATMs handled in Greensboro, North Carolina's work force and the local economy benefits, SECU said.
 
"Our focus is North Carolina and its citizens--it's where we live and work and who we serve," noted SECU President Jim Blaine. "It only makes sense for SECU to do business with folks who operate in our state. Diebold employs approximately 150 North Carolinians in Greensboro, a place where we also have 10 credit union branches and thousands of members, some of whom are part of the Diebold family. Our contract will help sustain those jobs and any win for North Carolina is a win for SECU."
 
"We established our Greensboro, N.C., facility about five years ago with approximately 10 employees," said Andy W. Mattes, Diebold president/CEO. "Today, Diebold Greensboro is a full-production facility, shipping products internationally to Canada, Mexico and Latin America--and is a core component of our global supply chain and manufacturing process.
 
"One hundred percent of SECU's Diebold ATM order was built in some capacity here at the Greensboro facility," he added. "For a global company with a presence in more than 90 countries, that's a very unique scenario. Our partnership with SECU is very important to us. For a combined 100 years, Diebold and SECU have been committed to the state of North Carolina and continuously strive to make a difference within the communities we work and live."

Georgians Targeted In Fake Check Scheme

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MACON, Ga. (10/1/13)--Members of MidSouth Community FCU, Macon, Ga., have recently been targeted in a $50,000 counterfeit check scam that could be spreading through the Southeastern U.S.
 
Baldwin County Sheriff's investigators have handled about a dozen cases related to the scheme in the past three weeks (Macon Telegraph Sept. 27).
 
MidSouth CEO/President Roy Bibb told the Macon Telegraph he doubts his credit union is the only financial institution targeted in the scam.
 
All counterfeit checks were traced back to an identity theft victim who has been cleared of any wrong doing.
 
In the scheme, fraudsters obtain account numbers and print counterfeit checks. Fraudsters use checks to purchase merchandise at big box stores such as Wal-Mart and and Lowe's, then return the merchandise for cash or selling the goods.
 
Authorities have released a surveillance photo of the prime suspect.
 
Bibb advised credit union members to carefully monitor their accounts.

CU System Briefs (10/01/2013)

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  • SCOTTSBURG, Ind. (10/1/13)--A former branch manager at Centra CU, Columbus, Ind., was arrested Friday and accused of stealing more than $63,000. Renea D. White, 24, was charged with five felony counts of defrauding a financial institution and five felony counts of theft (The Courier-Journal Sept. 27). White allegedly stole the cash in a number of different ways, including taking cash from the teller drawer and manipulating member accounts. The thefts took place from Jan. 2, 2012, through Jan. 8, 2013. State police conducted a seven-month investigation that led to the charges. The credit union reimbursed affected members' accounts ...

Topline FCU Reaches 1,350 Students Through Fin. Ed.

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MAPLE GROVE, Minn. (10/1/13)--Minnesota credit unions reached more than 4,400 students during the 2012-2013 school year, according to The National Youth Involvement Board. TopLine FCU, with $340 million in assets, contributed to that total by reaching over 1,350 of those students through more than 30 financial literacy presentations its staff delivered to students across the Twin Cities during the past school year.
 
TopLine reaches students through local educational programs such Hennepin Technical College's Gaining Early Awareness and Readiness for Undergraduate Programs, helping middle school students prepare for post-secondary education,  and the Minnesota Council on Economic Education's Personal Finance Summer Institute for College Readiness, which reaches out to area high school students.
 
TopLine also leads personal money management educational sessions each October at the Minnesota State College Student Association's Annual Leadership Summit, and it runs quarterly free community classes at its own TopLine Maple Grove Learning Center.
 
Members and nonmembers can attend TopLine's Get Smart with Your Money program, which offers three age-specific classes, each offered four times a year, at its Maple Grove location. Building Dreams explores the concepts of spending, saving and sharing for children ages 5 to 8. Dollar Power explores the concepts of needs vs. wants, and planning and spending wisely, for ages 9 to 13. Dollars & Sense explores sound money management, including using credit wisely and identity theft prevention, for ages 14 to 18.
 
Raising awareness about the value credit unions provide their members and communities,  removing barriers and fostering service excellence  are the foundation for the Credit Union National Association's, state credit union leagues' and credit unions' Unite For Good campaign toward a vision in which Americans choose credit unions as their best financial provider.

MnCUN Launches 'Don't Tax My CU' Phone Blitz

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ST. PAUL, Minn. (10/1/13)--The Minnesota Credit Union Network (MnCUN) held a "Don't Tax My Credit Union Phone Blitz" on Thursday. The event was designed to build additional momentum for the Don't Tax My Credit Union campaign.
 
To prepare for the blitz, MnCUN contacted all Minnesota credit unions and urged them to have a designated phone for employees and members to call from, or to have employees make calls from their personal desk extensions to members of Congress throughout the day. Minnesota credit unions used the Credit Union National Association dedicated phone number to make the connections.
 
"It was a fresh, new way for us to keep credit union employees and members engaged and connected with their members of Congress on this critical issue," said Mara Humphrey, MnCUN vice president of public affairs. "The phone effort was an incredibly effective, personal appeal that reinforced all of the other advocacy efforts we're leading to protect the credit union tax status."
 
Minnesota's 10 congressional offices, including both U.S. senators and eight members of the U.S. House of Representatives, received nearly 800 calls during the blitz--nearly three times as many phone calls as were generated in the three months prior to Sept. 26. The call total adds to the more than 16,000 e-mails, postcards and letters already generated through the campaign by Minnesota credit unions.
 
Removing barriers and raising awareness about the value of credit unions to members and communities  are among the tenants supporting CUNA's and the leagues' Unite for Good campaign to rally credit unions toward the strategic vision where Americans choose credit unions as their best financial partner.
 
League communicators are also rallying around CUNA's Don't Tax My Credit Union initiative, with many planning to participate in a virtual rally Wednesday to urge members of Congress to keep credit unions' tax status. 
 
CUNA is expecting tens of thousands of supporters to be in virtual attendance for the rally, and an accompanying physical rally at Credit Union House in Washington, D.C., between 2 p.m. and 3 p.m. (ET). The credit union house event will be live streamed at www.DontTaxMyCreditUnion.org.