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CU System Archive

CU System

Southeast Corporate second quarter report extremely strong

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TALLAHASEE, Fla. (10/14/08)--Southeast Corporate FCU in Tallahassee, Fla., had a very strong second quarter, the credit union said in its second-quarter report. Southeast's total assets stood at $3.86 billion as of June 30, a slight decrease compared with the $3.93 billion in assets as of Dec. 31. Net income during the first half of 2008 was $5.56 million, compared with the $1.94 million earned during the same period in 2007. Southeast maintains strong Standard & Poor’s ratings of AA long-term and A-1+ short- term. The corporate also is rated F-1+ short-term and AA- long-term by Fitch Ratings. The ratings are assigned through an independent review of Southeast's financial and operational activities and represent the highest ratings given to corporate credit unions, the corporate said in its report. Also, Southeast continued to maintain a strong capital position during the first two quarters of 2008, the report said. During the period, retained earnings increased to $117.8 million as of June 30, from $112.3 million as of year-end 2007.

Not knowing CU difference can cost says league

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MARLBOROUGH, Mass. (10/14/08)--Consumers’ lack of understanding when it comes to the credit union difference can have an adverse effect on credit unions, wrote the president of the Massachusetts Credit Union League in a “president’s message” to credit unions in the state. Daniel F. Egan, Jr. wrote that with the passage of the Emergency Economic Stabilization Act of 2008, financial and credit markets should hopefully stabilize, but credit unions need to do their part (Values & Visions Oct. 6). “One issue that has become clear as we dealt with the reverberations from this financial crisis is that the consumers’ lack of understanding when it comes to the credit union difference comes a cost to us,” Egan wrote. “We have expended considerable effort to make our credit unions the safe and sound institutions they are. “Likewise, we fund a very well-capitalized and safe federal deposit insurance system, yet numerous credit unions indicate that they heard from many consumers who were nervous about the money that they had in a credit union,” he continued. “We all need to do more to communicate the fact that credit unions are unique and distinct.” Consumers desire the benefits that credit unions offer, such as concentrating investments in loans to members because that is the main purpose and commitment of credit unions, Egan added. When consumers are made aware of this--along with the fact that credit unions have a true commitment to safeguard members’ deposits--then all credit unions “will enjoy their true power in the marketplace,” Egan concluded.

Survey Cash beats romance for 18-24 year olds

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LONDON (10/14/08)--Credit unions might want to note the findings of a recent survey that indicated almost 90% of 18-24 year olds care more about money than romance. Global research firm Synovate released the findings last month from its 2008 study which was conducted on young people between the ages 18-24 across 26 different markets. The survey sought to find out the truth behind some popular misconceptions surrounding young people, including finances, according to Julian Rolfe, global manager, Syndicated Youth Research. The findings showed that 18-24 year olds are more pragmatic than they are given credit for. More than half of the 12,000 young people surveyed expressed their concern to some extent about their economic situation, with 24% saying they are worrying about it a lot. And 87% revealed that money was an important, if not very important factor for them, outweighing love and romance. What could be a contributing factor is that young people actually have very little disposable income to begin with--39% having less than $50 a week to spend. Less than 10% have over $250 per week, the survey indicated. Almost half have less than $16 to spend a week on clothing. And 84% spend less than $16 per week on music. Further, 76% spend only $16 a week on music. More than two-thirds spend that same amount per week on their mobile phone bill. The survey also asked if young people gave much thought about their future plans. The survey indicated 35% would like to be financially independent by the ages 22-24, 28% by the ages 25-30, and 10% by the ages 18-21. And 17% stated that they are already financially independent.

Collaboration is essential says First Day Financial CU

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DUBLIN, Ohio (10/14/08)--Credit unions need to cooperate to ensure their survival, according to FirstDay Financial CU, Dayton, Ohio. FirstDay recently completed a core data processor conversion with the help of AurGroup Financial CU, Fairfield; CINCO Family Financial Center CU, Cincinnati; and River Valley CU, Miamisburg. “In the spirit of cooperation, three [Ohio] credit unions jumped in to help and even lent their support staff to make the first week much less stressful,” Lee Spivey, FirstDay CEO, wrote in the Ohio Credit Union League’s eLumination newsletter (Sept. 24). “That is exactly the kind of cooperative spirit upon which the credit union movement was founded and is necessary to ensure long-term survival,” he added. Collaboration is a way for credit unions to “merge without merging,” Spivey said. “Credit unions all do many of the same things. We handle many of the same problems. We face many of the same issues each day. Why not join forces wherever we can? The power of size can be achieved by working together in an organized fashion and sharing expenses.” Credit unions face increased regulatory burdens, greater competition, new products and services and tighter margins. “If we cannot check our collective egos at the door and work together, it is quite likely that in 10 years, instead of 400 Ohio credit unions with an average asset base of $40 million, there will be only 50-100 with average assets of $500 million or more,” Spivey added. FirstDay has $75 million in assets.

CU System briefs (10/13/2008)

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* NEW ORLEANS (10/14/08)--The Louisiana Credit Union League offered attendees of the 2008 Annual Meeting and Convention the opportunity to “Go Green.” The league gave attendees the option of receiving a compact disc with information from the sessions or a printed booklet. About 20% of the 322 attendees elected to go with the CDs. With an additional contribution by the league, 100 trees also were planted in national forests through the Trees For America program ... * MARLBOROUGH, Mass. (10/14/08)--HarborOne CU, Brockton, Mass., and Hanscom CU, Boston, received Dora Maxwell Social Responsibility awards, the Massachusetts Credit Union League announced. HarborOne received first place and Hanscom received second place. HarborOne’s winning entry focused on its multicultural banking center which was created in 2007 to help consumers affected by subprime mortgages and other predatory financial practices. Hanscom won the award for partnering with Kids at Heart to raise money for a children’s hospital. It broke all donation records and raised $14,519.45 ... * SAN ANTONIO (10/14/08)--Air Force FCU, San Antonio, announced that its member contact center is open 24 hours per day, seven days a week, and 365 days per year, including holidays. “We serve a membership that is apt to be deployed worldwide and we want to be there when they need us,” said Robert Glenn, Air Force FCU president/CEO. Air Force FCU has $310 million in assets ... * ABERDEEN, Md. (10/14/08)--Aberdeen (Md.) Proving Ground FCU donated $72,000 in 2008 to nearly 50 community-based organizations and programs, the credit union announced. Organizations included Harford Habitat for Humanity, Scoutreach, Salvation Army, Elkton Alliance and the Boys and Girls Clubs. The credit union has $664 million in assets ...

CUANY recognizes professionals volunteers at convention

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ALBANY, N.Y. (10/14/08)--The Credit Union Association of New York recognized outstanding professionals and volunteers, and announced its statewide Dora Maxwell and Louise Herring Award winners at the 88th Annual Convention in Niagara Falls last week. “Credit Unions: Harness the Power” was the theme of this year’s convention. Hundreds of participants gathered for the three-day event. “The friendly upbeat mood that existed throughout this year’s event made it obvious that convention is the perfect venue to acknowledge and applaud our award recipients,” said William J. Mellin, Association president/CEO.
One of the two Credit Union Association of New York 2008 Professionals of the Year was Paula Stopera, president/CEO, Capital Communications FCU, Albany.
The other Credit Union Association of New York 2008 Professional of the Year was Dorothy White, vice president, Fidelis FCU, New York. (Photos provided by the Credit Union Association of New York)
The following awards and honors were presented during the convention. Outstanding professionals are:
* Paula Stopera, president/CEO, Capital Communications FCU, Albany; and * Dorothy White, vice president, Fidelis FCU, New York.
Outstanding volunteers:
* Virginia Brady, UFirst FCU, Plattsburgh; and * Thomas Messina, Columbia Greene FCU, Hudson.
Dora Maxwell Social Responsibility Award:
* Western New York FCU, West Seneca, $5-$20 million in assets, first place; * GHS FCU, Binghamton, $50-$100 million in assets, first place; * Sidney (N.Y.) FCU, $200-$500 million in assets, first place; and * Capital Communications FCU, $500-plus million in assets, first place.
Louise Herring Award for Philosophy in Action:
* GHS FCU, $50-$250 million in assets, first place; and * Mid-Hudson Valley FCU, Kingston, over $250 million in assets, first place.
Additional convention highlights included general session appearances by Paul Dyster, mayor of Niagara Falls; Rodney Hood, vice chairman of the National Credit Union Administration; Alison Levine, president of her own consulting firm, Daredevil Strategies; as well as education sessions.

CU blogger notes female members needs

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PLYMOUTH, Mich. (10/14/08)--Selling a woman on a credit union is like selling an entire household, according to a credit union blogger. Mark Arnold, senior vice president of marketing at Neighborhood CU, Dallas, noted female credit union members’ needs on CU Campus, an Internet-based tool developed by CU Village and launched by the Michigan Credit Union League. Credit unions should connect women with their brand because they’ll pass it along to friends. “Women are three times more likely to recommend a brand or service they enjoy than men are,” Arnold said. Credit unions also should offer retirement plans focused exclusively on women. Women are under-enrolled in retirement plans compared with men, he said. “Women make almost 80% of the household buying decisions, comprise 59% of total college graduates and will control 60% of the wealth in the U.S. by 2010,” Arnold added. For more information, use the link.