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CU System Briefs (12/05/2013)

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FARMERS BRANCH, Texas (12/5/13)--Texas Trust CU entered into a seven-year partnership with the University of Texas at Arlington (Cornerstone Leaguer Dec. 4). The credit union will become the university's credit union sponsor of its Division of Intercollegiate Athletics, and will gain marketing and promotional rights through the school's athletic programs. It will also open a branch on campus this spring, offer support to the UT Arlington Student Money Management Center, and market a variety of school brand debit cards that will provide a financial benefit to the university. "This partnership will strengthen UT Arlington's ability to influence and shape the lives of thousands of young adults by giving them access to financial resources and tools to help them build brighter financial futures," said Jim Minge, Texas Trust CU president. Texas Trust is headquartered in Mansfield, Texas. It has $760 million in assets ...

FARMERS BRANCH, Texas (12/5/13)--David Reynolds, CEO of Security Service FCU, will step down on March 24, 2014, according to an announcement made by the credit union's board of directors (Cornerstone Leaguer Dec. 4). He is slated to be replaced by SSFCU President Jim Laffoon. Reynolds entered the credit union movement in August 1974, when he was hired by the National Credit Union Administration to be a field examiner and auditor. He joined Pentagon FCU in 1983, and opened its first office in San Antonio. Reynolds joined SSFCU in March 1986 as senior vice president. In August of that year, he was promoted to executive vice president. In May 1997, he was appointed president/CEO by SSFCU's board of directors. Under Reynolds' administration, the credit union has grown from a nine-branch $330 million institution to one with $7.5 billion in assets and 70 branches in Texas, Colorado and Utah. It is currently the eighth largest credit union in the country. "Under David Reynolds' leadership, Security Service has expanded the credit union's reach to serve more members and to provide enhanced products and services to meet their financial needs," said Jim O'Farrell, SSFCU board chair. "He has been committed to ensuring the continued safety and soundness of Security Service while also giving back to the members and the communities where we work and live." SSFCU is headquartered in San Antonio, Texas ...

Rep. Larson Urges CUs to Remain Vigilant in Tax Status Advocacy: Camp Says No Bill in 2013

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MERIDEN, Conn. (12/5/13)--U.S. Rep. John Larson (D-Conn.) stressed that "vigilance is eternal" in credit unions' campaign to maintain their tax status, during an interview with the Kelly Fuhlbrigge, Credit Union League of Connecticut vice president of government relations.

Credit unions must maintain close contact with their legislators during the tax reform process, Larson said in his interview with the league.
 
Larson's words urging credit unions to remain vigilant in their tax status advocacy took on particular poignancy Wednesday when House Ways and Means Chairman Dave Camp (R-Mich.), a key player in the nation's tax-policy discussions, told reporters that he will hold off unveiling tax reform  legislation until February or March of 2014.  Camp has spent much of this year saying tax reform legislation, to reduce individual and corporate tax rates while eliminating some tax expenditures and broadening the tax base, would be ready before this year's end. 
 
Congress is running out of time and Camp has no plans to introduce the tax bill this year, he told reporters after a political luncheon (Bloomberg Government Dec. 4).  
 
The Credit Union National Association has advised credit unions that political advocacy, on issues like tax status, is a "long game."  Advocates, CUNA says,  have to be disciplined, have to work methodically to generate "support on the ground," and have to be in it for the long haul. 
 
Connecticut's Larson, in his interview with the league, also said, "It's always wise to notify your legislator and making sure you are bringing them up to date, particularly of the great value that credit unions bring." Larson told Fuhlbrigge, "As a credit union member myself, I can speak of first hand of the value that credit unions bring especially during difficult times, and the unique nature of the charter agreement."
 
Particularly important is educating new legislators who may not be familiar with credit union ideals, structure and tradition of service excellence, Larson said.
 
He stressed the importance of maintaining a public forum for discussions before any legislation is voted out of committee.
 
"That maximizes the opportunity for constituents to have voices heard on all levels, particularly if you are a credit union member or are invested in the goals of credit unions," Larson said.

Use the resource link to access the video.

Missouri CUs Reach Record $11B In Assets

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ST. LOUIS (12/5/13)--Missouri's state-chartered credit unions surpassed $11 billion in assets during the first half of the year--a milestone, according to the state's regulator.
 
The Missouri Division of Credit Unions said that, as of June 30, the 118 credit unions it regulates had $11.2 billion in assets, $9.7 billion in deposits and $6.5 billion in loans.
 
"The continued growth of assets reflects the vital role of Missouri's credit unions and their contribution to the strength of our state's economy and financial sector," said Ken Bonnot, division director (Missouri Difference Dec. 4).
 
About 90% of credit unions in Missouri are state chartered, and 12 hold federal charters.
 
Just days ago, the National Credit Union Administration released its most recent credit union trend data, and the Credit Union National Association unveiled its monthly credit union estimates.  Use the resource links to access those related stories.

U-Haul's Parent Company Taps CUs For Part Of $100M Loan

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AUSTIN, Texas (12/5/13)--Large companies tend to look toward large financial institutions to handle their lending needs. But U-Haul, under its parent company AMERCO, recently turned to credit unions and other community financial institutions for a $100 million loan.
 
Of those 23 financial institutions, four credit unions were part of the corporate financing that was guided by BancAssets LLC, which works to bring large and middle-market corporate lending to community financial institutions.
 
U-Haul embraced the idea of using the communities they serve to finance their business instead of going to big institutions, said David Hill, CEO of the Austin, Texas-based BancAssets.
 
Hill told News Now that it is important to provide funding avenues for Fortune 1000 companies. "By going back to the communities they serve, they experience more economic empowerment and involvement," he said.
 
Of the 23 community financial institutions involved in the corporate financing, the following four credit unions were included:
  • Atlantic Regional FCU, Brunswick, Maine, $266 million assets
  • Leaders CU, Jackson, Tenn., $208 million assets
  • Money One FCU, Largo, Md., $105 million assets
  • Sacramento (Calif.) CU, $367 million assets
 
The package put together by BancAssets gave U-Haul the opportunity to work with new lenders that they may not have known about, said U-Haul Treasurer Gary Horton in a press release.
 

Ohio's Day Air CU Launches Insurance Services

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KETTERING, Ohio (12/5/13)--In order to better match products to its loan offerings, Day Air CU established a new agency to provide insurance to members and the local community.
 
Day Air Insurance LLC opened at the end of November and sells home, auto, renter and business insurance from 12 carriers (Dayton Daily News Dec. 4).
 
The credit union's president/CEO, Bill Burke, said that it was a natural fit to add the services.
 
"We make loans of all types, but we really make an awful lot of consumer automobile loans. We make an awful lot of mortgage loans," he told the Dayton Daily News. These type of loans require insurance, and the new venture provides an easy avenue for the credit union's members to acquire it.
 
Burke said the $273 million-asset credit union is on pace to end 2013 with a 12% growth in loan balances over 2012, noting "2013 is going to be yet again another record year for the credit union."

Carolinas Foundation Commits $600,000 to Children's Hospital Over 2 Years

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GREENVILLE, S.C. (12/5/13)--Children's Hospital of Greenville Health System unveiled a new interactive, child-friendly space for patients and families Tuesday--the product of $300,000 gift from Carolinas Credit Union Foundation.
 
Click to view larger image A $300,000 gift from Carolinas Credit Union Foundation provided a new interactive, child-friendly space at Children's Hospital of Greenville Health System. The 1,900-square-foot lobby has been transformed into an imaginary underwater adventure, which includes a saltwater fish tank. (Photo provided by Carolinas Credit Union Foundation)
The foundation, which represents 169 credit unions in North and South Carolina, set a goal of a two-phased $600,000 Children's Hospital Project as part of the Leave Behind Project. That initiative was coordinated by the Credit Union National Association in conjunction with the 2012 Democratic National Convention in Charlotte. The first phase of the project was a $300,000 rooftop garden area renovation at Levine Children's Hospital.
 
"Giving back is a core value of credit unions and aligns with our collective philosophy of people helping people," said foundation President/CEO John McGrail. "I am proud of the credit unions in North and South Carolina for coming together to transform this space into something warm and inviting for patients and families to enjoy during their hospital stay."
 
Children's Hospital of Greenville Hospital Systems is a Children's Miracle Network Hospital. Credit Unions for Kids, a nonprofit collaboration of credit unions, chapters, leagues/associations and business partners nationwide, raises funds for 170 Children's Miracle Network Hospitals.
 
Credit unions are the third-largest sponsor of the hospitals, and 100% of every dollar donated goes to the credit union's local CMN Hospital to support research and training, purchase equipment or pay for uncompensated care for children.
 
The 1,900-square-foot lobby has been transformed into an imaginary underwater adventure with 200 brightly painted metal fish hanging from the ceiling. An interactive submarine wall features interactive games like bubble pop, music notes, dress up and painting. It also includes three mirrored windows that allow children to see their reflection while playing games and digitally dress themselves in underwater-themed elements.
 
The new space also includes an existing saltwater fish tank, child- and adult-sized furniture, and charging stations for electronic devices.

2nd CU CEO Gets Nod to Serve on Seattle FHLB Board

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SEATTLE (12/5/13)--Credit unions have another seat at the table of the Federal Home Loan Bank of Seattle.
 
The board announced the results of its 2013 board of director elections this week. Bob Teachworth, president/CEO, Denali Alaskan FCU, will represent Alaska for a four-year term beginning Jan. 1.
 
Teachworth, who leads a $519 million-asset credit union in Anchorage, joins another credit union professional--Benson Porter, president/CEO of BECU, a $11.5 billion-asset credit union in Tukwila, Wash.
 
In 2012, Porter became the first credit union representative on the board, which serves more than 300 financial institutions with liquidity funding. Porter represents the state of Washington and his term ends in 2016.
 
Teachworth assumes the seat currently held by Craig Dahl, president/CEO/director of Alaska Pacific Bancshares, Juneau, Alaska.
 
Every Federal Home Loan Bank has its own elected board of directors, representing areas such as banking, accounting, housing and community development. Directors serve four-year terms and may not serve more than three consecutive terms.

Jury's Leadership Brings National Acclaim To Iowa League

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DES MOINES, Iowa (12/5/13)--A Dec. 3 Des Moines Register article highlighted the national reputation of the Iowa Credit Union League and its president/CEO Patrick Jury.
 
Jury has led the league since 2006. Under his leadership, the league supports the state's 116 credit unions with services ranging from electronic transaction processing to serving the Hispanic market.
 
With more than $10 billion in deposits and $11.7 billion of assets at the end of the second quarter, Iowa credit unions are strong under Jury's leadership. Their share of the $84 billion now deposited at Iowa's financial institutions has increased to 12.4% from 8% under Jury's tenure as CEO.
 
One of Jury's significant achievements was the development of the league subsidiary Affiliate Management Co. Annual revenue at Affiliate Management Co. has doubled to more than $100 million the past five years, the Register reported. Jury's active leadership has built businesses that serve credit unions around the nation, Paul Gentile executive vice president of strategic communications for the Credit Union National Association, said in the  Register article.
 
As a for-profit provider, Affiliate Management Co. was able to be more nimble to respond to market needs and insulate the league and its member credit unions--who tend to be risk averse--from any problems that might occur, the Register reported. Also, it provided enough capital to "seed" new ventures.
 
Diana Dkystra, president/CEO of the California/Nevada Credit Union Leagues, complimented Jury's ability to think outside of the box, describing him as "brilliant."
 
Jury joined the league as a lobbyist in 1989. He was promoted to chief operating officer in 1993 and has served as chief executive officer since 2006. He is also secretary of the executive committee of the World Council of Credit Unions. Jury is an at-large executive committee member of the CUNA board.
 
 
To read the full article, use the link provided.