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Corporate Central announces board of directors reports positive financial results

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MUSKEGO, WIS. (5/11/11)--Corporate Central CU, Muskego, Wis., announced its board election results and reported a positive financial performance at its recently completed annual meeting. With 200 members in attendance, Chairman Gerald Forsythe and President/CEO Robert W. Fouch reported that Corporate Central CU is on solid financial footing. “Your commitment and support have placed us well ahead of all capital measures contained in the corporate credit union regulations,” Fouch said. “This means that we are able to focus our resources on serving you, developing new services, improving existing services, and welcoming new members as we continue to grow.” Members also heard positive comments about the health and strength of Corporate Central CU and its future from Ginger Larson, director at the office of credit unions and Mary Martha Fortney, president/CEO of the National Association of Credit Union Supervisors. During the business portion of the meeting, because election results showed no additional candidates had been nominated; the slate of candidates was declared to be elected. Those named to the board include:
* Forsythe--president/CEO, Altra FCU, Onalaska, Wis; * Greg Hilbert--Fox Communities CU, president/CEO, Appleton; and * Alan Zierler--Capital CU, Kimberly, Wis.
At the organization meeting held immediately after the Annual Meeting, the four foard members comprising the executive committee were determined. They are:
* Chairman--Forsythe; * Vice Chairman--Hilbert; * Secretary, Kim Sponem--president/CEO, Summit CU, Madison, Wis; * Treasurer, Ronald Vogel--president/CEO, Fort Community CU, Fort Atkinson, Wis.
Prior to the annual meeting, Corporate Central CU hosted an educational session on the Smart Option Student Loan program. Attendees were guided through the start-up process, the online member application experience, and learned about the revenue potential of the program. In about 60 days since Corporate Central CU launched the Smart Option Student Loan program, more than 20 credit unions have signed onto the service.

Corporate One FCU announces capital re-commitment results

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COLUMBUS, Ohio (5/11/11)--Corporate One FCU Monday announced the results of its member capital re-commitment offering, which closed at the end of April. The corporate now holds more than a quarter of a billion dollars in total regulatory capital, which includes reserves and undivided earnings (RUDE) of $37.2 million. The response was overwhelming as the capital offering was even over-subscribed, Corporate One said. With such numbers, Corporate One exceeds all capital ratios at the “well capitalized” level as outlined in the recently updated regulations governing corporate credit unions, and meets all net-economic-value ratios in both base- and stressed-case scenarios. In addition to meeting, the National Credit Union Administration revised Reg. 704 capital ratios at the “well capitalized” levels. Corporate One already boasts a RUDE ratio of 1.14%, which isn’t required until year six, per the regulation. As one of the few corporates not to lose any of its members’ capital investment, Corporate One was in a unique position as it began its campaign because the corporate did not require any additional capital from its current partner members; it only requested members to re-commit their existing capital to the new form of capital--Perpetual Contributed Capital--mandated by the NCUA in the updated regulation. “It brings me great pride to report that Corporate One’s membership capital offering was a huge success and was over-subscribed, and I want to extend my deepest appreciation to those members who re-committed their capital with us,” said Corporate One FCU President/CEO Lee Butke. “The capital re-commitment acknowledged the value Corporate One provides its members and I’m happy to report we’re continuing to receive re-commitment paperwork every day,” he added. “I’ve never been more confident in our ability to serve credit unions with the solutions they need.” The capital offering included the opportunity for members to invest in a non-contributed capital account that in the end was over-subscribed. However, Corporate One’s board has agreed to honor all requests as a thank-you to members. Corporate One filed its capital plan with the NCUA on March 30 and received the agency’s go-ahead on the plan last week. With the close of its member capital re-commitment offering, Corporate One turns its attention to new members. Because credit unions are now doing their due diligence on their future partners, the corporate’s strong financial condition will be an opportunity to provide services to new members. To that end, Corporate One will be hosting a series of town hall meetings in cities nationwide to raise awareness about the corporate and to provide the ability for prospective credit unions to meet with members of Corporate One’s senior management. Corporate One will also open its doors the week of June 6 for an Open House Due Diligence Week, welcoming interested credit unions to visit its headquarters in Columbus, Ohio, to meet with members of its senior team and operations staff.

Florida FCU to media Interchange cap hurts consumers

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TAMPA, Fla. (5/11/11)--A debit card interchange cap of 12 cents per transaction pending in Congress isn’t enough to cover costs of debit card processing and would hurt consumers, a Florida credit union official told Sunday. In an article titled, “Debit card use may soon come with a cost,” Linda Darling, chief financial officer at Suncoast Schools FCU in Tampa, Fla., told the newspaper the idea that if merchants are charged less for interchange, they will have lower costs and then offer lower prices hasn’t happened in other countries where debit card interchange fees were reduced. Although the $5 billion-asset Suncoast isn’t against changes in the manner in which interchange fees are assessed, the 12-cent cap per transaction isn’t sufficient for financial institutions to cover costs of debit card processing, Darling added. Consumers already are being harmed because big banks--in anticipation of interchange fee changes--now are charging for checking accounts that used to be free, Darling told the paper. Furthermore, if fees are capped, Suncoast Schools FCU also will be forced to examine changes in free-checking account services it offers members, Darling added. Suncoast has begun a campaign to get its members to call Congress about the matter, she said. To read, the article, use the link. The Credit Union National Association (CUNA) opposes a proposal in Congress capping interchange fees and has told federal lawmakers that such action would harm consumers by driving up costs of debit cards, limiting consumer options, and harming competition and technological innovation. Interchange fees allow business costs, including the risk of consumer nonpayment, to be shared by the payments participants, CUNA said.

Texas CU receives praise for exceptional service

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EL PASO, Texas (5/11/11)--One Source FCU in El Paso, Texas, provided a level of service that went far above what one would expect from a financial institution, said an El Paso couple who praised the credit union, according to the Texas Credit Union League. “We’ve been a member/owner at One Source for more than 30 years and we simply couldn’t imagine going anywhere else,” said El Paso resident Eddie Rojas. “Over the years our credit union has provided us with a level of personalized service that I don’t believe you can find just anywhere. They’ve more than earned our trust and loyalty.” Rojas mentioned an incident in which he visited the $81.5 million-asset credit union to conduct a simple transaction. While in the lobby, he began having a conversation with a member service representative--a conversation that was overheard by the credit union’s President/CEO, Bob Peterson. “Mr. Peterson apparently heard my voice from inside his office, and he stopped what he was doing to come out into the lobby and greet me,” recalls Rojas. “He said to me, ‘Eddie, I thought I heard your voice.’ Knowing that the CEO of that institution not only knew me by name, but also recognized my voice was an amazing feeling.” “We’ve heard horror stories from some of our friends who have their money at a bank, and we always ask them why they haven’t moved their money to a credit union,” added Norma Rojas. “In the early years as a young married couple, we banked at other financial institutions, but once we joined the credit union, we knew we could never do business elsewhere. The staff at One Source makes us feel like we own the place.” Members do in fact ‘own the place’ at a financial cooperative, said Dick Ensweiler, president/CEO of the Texas league. “Credit unions offer many of the same products and services consumers will find at a bank, but that is where the similarities end,” he explained. “Credit unions are locally owned by the members they serve and are governed by a voluntary board of directors--people from your community, elected by you.” The credit union community has a strong presence in El Paso, said the Texas league. Seventy percent of the population has accounts at one or more of the 11 credit unions with a presence in El Paso. Credit unions have historically rated favorably in the areas of service, competitive rates and low fees, said Harriet May, president/CEO of El Paso-based GECU and chair of the Credit Union National Association. “Credit unions aren’t in the business of maximizing profits,” May said. “We open our doors every day knowing and understanding that our sole purpose for existing is to help improve the financial conditions of our members. Without question, credit unions are mission-driven, not profit-driven.”

Illinois league holds annual legislative day

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NAPERVILLE, Ill. (5/11/11)--The Illinois Credit Union League’s (ICUL) annual legislative day will be held today in Springfield, with State Treasurer Dan Rutherford scheduled to keynote the event. Rutherford, a strong legislative supporter of credit unions, will discuss the importance of political involvement and the key roles credit unions play in the process. Other highlights will include:
* A regulatory update featuring a panel of officials who will provide an update on Illinois’ state-chartered credit unions. National Credit Union Administration Board Member Michael Fryzel will discuss to federal issues. * A briefing from ICUL staff members Steve Olson, executive vice president, general counsel and chief operating officer, and Keith Sias, vice president of state governmental affairs, who will update participants on issues critical to credit unions. * State Capitol visits, where event participants will be shuttled to the Capitol to personally call on their lawmakers. Friday is the deadline to pass bills out of their original chamber, according to the Illinois General Assembly’s schedule. * A legislative reception to cap off the event. All 177 lawmakers from both sides of the aisle, constitutional officers and other dignitaries have been invited.
The Illinois General Assembly is scheduled to adjourn its Spring legislative session on May 31.

New Mexico CUs Consumers cant afford interchange proposal

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ALBUQUERQUE, N.M. (5/11/11)--The interchange proposal will ultimately cost consumers more money, the opposite of what Congress hoped to achieve with the law, a representative from the Credit Union Association of New Mexico recently told the Albuquerque Journal. Although none of New Mexico’s 49 member-owned credit unions come close to the $10 billion in assets that the proposal technically exempts, credit unions are concerned that large processors will implement a single-fee structure that doesn’t differentiate between large and small financial institutions, Sylvia Lyon, president of the association, told the Journal (May 8). Lyon and Jerry Walker, president of New Mexico’s Independent Community Bankers Association, estimated the proposal would reduce fees credit unions collect for debit card use by 70% to 80%. The revenue shortfall will have to be made up somewhere, Lyon said, and that is likely to happen through new fees for debit cards for members. The Credit Union National Association (CUNA) opposes a proposal in Congress capping interchange fees and has told federal lawmakers that such action would harm consumers by driving up costs of debit cards, limiting consumer options, and harming competition and technological innovation. Interchange fees allow business costs, including the risk of consumer nonpayment, to be shared by the payments participants, CUNA said.