February 4, 2010

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News About Credit Unions

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Governmental Affairs News

Financial Services/Marketplace News

Education & Networking Opportunities

News From Credit Unions

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Special Request: Are You a REAL Deal Credit Union?

Financial Education News

Community Involvement News

Marketing News

Headline News

Key Legislation Will Likely Be Heard Today By House Committee

Credit unions have fought hard against Senate Bill 440/House Bill 482. We'll know today if our efforts have paid off, when the House Commerce and Labor Committee takes up its version of the bill for the first time. Credit union supporters view the introduced bill as dangerous in that it paves the way for wealthy, for-profit banks to buy up credit unions. The bills were introduced at the request of state bankers. The League and its lobbyists have worked closely with lawmakers to amend the bill.

League President Rick Pillow noted that our focus has been to transform the legislation from merger-acquisition bill to credit union charter choice bill:

(1) First, we're looking to provide state-chartered credit unions with the same charter conversion options currently available to federally chartered credit unions – namely, providing a clear regulatory path for state-chartered credit unions to convert to a mutual savings bank charter.

(2) We're seeking adequate member safeguards to govern such a conversion. We're suggesting that a state-chartered credit union pursuing conversion should be required to adhere to the same member safeguards currently in place at the federal level.

> We'll keep you posted on developments today and next week, when the state Senate's Commerce and Labor Committee is expected to take up the measure.
[related: State Credit Union-Bank Legislation Draws Media Attention]

350 Credit Union Supporters Battle Banker Legislation at State Capitol

Credit union supporters from all across the Commonwealth traveled to Richmond Jan. 28 to oppose legislation that would pave the way for banks to acquire credit unions -- without providing adequate protection for the member-owners of the state's not-for-profit, member-owned credit unions. With 350 credit union supporters in the halls of the General Assembly sporting red credit union scarves, lawmakers learned that credit union members fear banks are looking to employ a new strategy in their bid to drive the financial cooperatives from the marketplace: using their wealth to buy up credit unions.

"With 350 credit union supporters at the Capitol, 2,000-plus e-mails, hundreds of phone calls, we got our message across," said Virginia Credit Union League President Rick Pillow. "Everyone who belongs to a credit union has an ownership stake in their credit union. The question at the heart of this legislation is this: Should banks be allowed to buy up our credit unions without adequate protections for those member-owners? Lawmakers got their answer from concerned credit union members. We believe this legislation, in its current form, is bad news for every member of a Virginia-based credit union."
[more here]
> Credit Union Day 2010 Photos (Flash-enabled browser required)
> Piedmont Chapter photos

Entries Sought for League Financial Education Awards; Deadline March 19

Get recognized for your good works in delivering financial education! The 5th Annual Virginia Social Responsibility Awards program recognizes all National Youth Involvement Board (NYIB) classroom presenters and will present the following financial education-related awards: Financial Education Advocate of the Year, Visionary Award, Rookie of the Year Award, and Education Partner of the Year. Winners will be honored at the Social Responsibility Awards Celebration May 8. Deadline for submitting your entry is March 19!
[awards packet] (Word document, 339kb)

NCUA's Matz to Keynote League Annual Meeting

National Credit Union Administration Chairman Debbie Matz will be one of our keynote speakers at the 2010 League Annual Meeting (May 6-8, Reston). She'll speak on Friday, May 7. Matz has served as Chairman of the NCUA Board since August 2009, but she's no stranger to NCUA or credit unions, having previously served as a board member at NCUA from January 2002 to October 2005 and as chief operating officer at Maryland-based Andrews Federal Credit Union for two years prior to her rejoining NCUA.
[see also: League Revamps Annual Meeting Schedule for Added Flexibility, Special Events]
[register for the 2010 League Annual Meeting]

CUs Outraged Over Biz Lending Snub by Administration

Credit unions are outraged, baffled and feeling "snubbed" by the Obama administration's proposal to funnel $30 billion into smaller banks for business lending--but do nothing for credit unions, Credit Union National Association President/CEO Dan Mica said Tuesday. President Obama at a town hall meeting in Nashua, N.H., Tuesday announced a proposal to channel billions to community banks to support small business lending.

The proposal is subject to review and legislation by Congress. However, as Mica pointed out, the proposal is entirely focused on small and community banks, and includes nothing for credit unions, ignoring the potential contribution that credit unions could make toward national economic recovery.
[more here]

> Make sure President Obama and Treasury Secretary Tim Geithner hear from you on raising the cap on credit union member business lending! You can e-mail them easily from the My Credit Union Is Me Web site – http://www.mycuisme.com.
[related: CUNA Blankets Capitol Hill with MBL Letters]
[related: Not Just Hype -- Small Business Means Jobs]

Credit Crunch Helps Credit Unions Make Case for Biz Lending

Credit unions are feeling hopeful about finally persuading Congress to let them make more loans to small businesses. These days the rhetoric on Capitol Hill is all about creating jobs and getting the economy going again. By arguing that they can help, credit unions are gaining support in what has been a decade-long quest to expand their business lending.

Just before Christmas, Sen. Mark Udall, D-Colo., introduced a bill to increase the member business-lending cap to 25 percent of a credit union's total assets, from the current 12.25 percent. Perhaps even more significantly, the bill also would exempt loans under $250,000 from counting toward the cap; only loans under $50,000 are exempt now. The bipartisan co-sponsors include Sen. Charles Schumer, D-N.Y., a powerful new ally for the credit union effort.

Though the banking industry has fought off similar bills before, this one is a notable advance for credit unions because it is supported by so many small-business groups and think tanks that previously opted to avoid the issue. At least 17 of them endorsed the bill, including the National Association of Realtors, the National Small Business Association and the National Association of Manufacturers.
[more here]

Critics Pick Apart Obama Small Biz-Loan Plan

Though lawmakers said Tuesday they support the goal of President Obama's $30 billion program to spur small-business lending, many sharply criticized the proposal, arguing it either would not work or could be done more directly. Concerns about the plan were bipartisan, with some Democrats saying the problem was not a lack of funds at banks but overzealous examiners. Others said the administration's efforts would be better directed through the Small Business Administration. (American Banker Online, Feb. 3)
[related: Some Banks Cool to Obama's Loan Plan]

Unique Virtual Network Provides Confidential, Free Advice to Credit Union Professionals

CURE is a secure virtual network created to provide credit union professionals with an unparalleled resource for questions concerning the operation of their credit union. The first of its kind, this Web site is the only place to go 24/7 for confidential advice -- free of charge, about the many operational issues facing credit unions today. Advisors are retired credit union professionals who have faced the issues you are facing and offer incredible advice. Holly Herman, Executive Director, stated, “Experience matters! We've assembled an incredible team of advisors, retired credit union executives with an unmatched depth and breadth of experience -- experience that has gone largely untapped until now.”
[more here]

News About Credit Unions

CUs' Position to Improve as Labor, Housing Stabilize

As labor and housing markets stabilize, credit unions' financial position should improve, according to a Credit Union National Association (CUNA) economist's analysis of CUNA's monthly sample of credit unions. "Periods of great economic stress create significant dynamics for financial institutions," Steve Rick, CUNA senior economist, told News Now. "The 'great recession' of 2009 led to significantly higher credit union loan delinquency rates, lower credit union loan-to-share ratios and a plummet in credit union loan growth. As the labor and housing markets stabilize in 2010, so too should credit union loan growth, asset quality and liquidity position."
[more here]

Problem CUs Continue to Be NCUA Focus

National Credit Union Administration (NCUA) Chairman Debbie Matz Friday expressed concern at the agency's open board meeting about the high number of CAMEL 3, 4, and 5 credit unions and the percentage of insured shares which they represent. Matz said, as she has before, that the NCUA is being proactive with respect to looking for "red flags" that indicate a credit union is experiencing problems which could lead to a CAMEL downgrade if not corrected. She added that credit unions with these red flags may be subject to unplanned examinations in order to help address their problems before a CAMEL downgrade is required.
[more here]

Small CUs and the Passionate People Who Drive Them

Riverside Health System Employees Credit Union was front and center in a Credit Union Magazine piece on the plight of small credit unions. CEO Janet Harris noted her frustration about compliance, and the burden it represents for small credit unions, whose resources are already stretched thin. “I get tired of being the FBI, the CIA, and the IRS. It's taking up time I should be using to deal with my membership and core services,” says Harris, a former member of CUNA's Small Credit Union Committee.

The article highlights the diversity within the nation's small credit unions and the growing sophistication of those credit unions. It also looks at how small credit unions are leveraging the talents of their staffs, the difficulties in recruiting and retaining management and board members, the issues that have arisen from uncertainty about the future of corporate credit unions, and how some small credit unions are joining together to achieve economies of scale and eliminate back-office redundancies.
[more here]

Compliance/Regulatory Affairs News

CUNA Analyzes CARD Act Rule for CUs

A comprehensive breakdown of the Federal Reserve Board's recently published final rules that restrict a number of credit card practices has been posted to the Credit Union National Association's Web site. The CUNA analysis involves the second set of Fed rules to implement the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (CARD Act). They become effective Feb. 22.
[more here]

Mortgage Compliance Costs on the Rise

The cost of originating a home mortgage is soaring and profits are dwindling to the extent lenders can't pass the increases on. To ensure compliance with a slew of new regulations that recently took effect or are scheduled to over the next year, lenders are hiring armies of legal and quality-control specialists.

"Our profits on a per-loan basis are down considerably, and we're spending a lot more money on the back end with due diligence," said Daniel Grzywacz, the owner of Exchange Financial Mortgage, a Grand Rapids, Mich., lender. "We've doubled our staff just trying to get our loans closed and sold, and we're doing this on hundreds of thousands of loans, so it adds up."

Just complying with the Real Estate Settlement Procedures Act rule that took effect Jan. 1 adds hundreds of dollars per loan to the cost of origination, Grzywacz said. It will be hard to measure the combined impact on lenders' bottom line of the Respa rule, the Secure and Fair Enforcement for Mortgage Licensing Act and a new Truth in Lending Act regulation. That's because rather than break out compliance costs, lenders typically lump them in under other expense categories, such as legal or technology. (American Banker Online, Feb. 3)

Governmental Affairs News

League Congressional Luncheon Feb. 24

(Registration Deadline Feb. 10)
It is imperative that credit unions tell our Washington representatives the good news about what we're doing to serve our members and ensure our voice is heard on legislation that impacts us. You can do just that at our annual Congressional Luncheon Feb. 24, in Washington, D.C., where the members of our Congressional delegation and their staffs are invited to dine with our credit union members.
[more here]

100% for VACUPAC

Congratulations and a big thank you to the following credit unions for their support of the Virginia Credit Union Political Action Committee (VACUPAC). VACUPAC plays an important role in our political and legislative efforts, by enabling us to support legislators and political candidates who support credit unions. Contact Karin Sherbin for more information about VACUPAC – ksherbin@vacul.org.

- Richmond Postal Credit Union has 100% VACUPAC participation from its Board, Committee members, and staff, all of whom have contributed at least $25.
- Henrico Federal Credit Union has 100% participation from staff.
- Fairfax County Federal Credit Union has 100% participation from its Board and supervisory committee.

Virginia Top National Credit Union House Fundraiser

Many thanks for your continuing support of Credit Union House on Capitol Hill. We're pleased to report that Virginia once again reached its fundraising goal for the year, along with a record 24 other states. However, Virginia had the highest number of contributors - 49 – and raised the most funds - $21,100. The 4th Quarter 2009 newsletter announcing our achievement should be posted here soon - http://www.cuhouse.com/publications.html.

Senate Stalls Student Lending Legislation That Would End Bank Participation

In his State of the Union address last Wednesday, President Obama exhorted the Senate to pass the bill, which he said would revitalize community colleges and make college more affordable. But the bill faces unified opposition from the Republican minority and sharp questions from at least some Democrats, according to congressional aides from both parties, and the Democratic majority has put it on hold during the drawn-out health-care deliberations.
[more here]

Despite Call to Action, Speech Fails to Move Reform Ahead

Despite President Obama's urgent plea to pass regulatory reform legislation, its outlook remained muddy following the State of the Union address. In interviews after the speech, senators were split on whether the president's words helped or hurt the reform effort, and appeared as divided now on key parts of the legislation as they were last year despite two months of bipartisan talks.

Even the strategy for moving forward remained unclear, with Democrats weighing their priorities and gauging whether they could attract GOP support. "Since we've come back after the break, we still have not made a significant amount of progress," said Sen. Mike Crapo, R-Idado, a member of the Senate Banking Committee. Democrats were more optimistic, but some raised concerns that Republicans may not commit to a bill.

"The president's pretty strong on financial reform, but the Republicans looked totally unenthusiastic when it came time to take on some of their banking interests," said Sen. Sherrod Brown, D-Ohio, also a member of the Senate Banking Committee. (American Banker Online, Jan. 29)

Financial Services/Marketplace News

No Help in Sight, More Homeowners Walk Away

After three years of plunging real estate values, after the bailouts of the bankers and the revival of their million-dollar bonuses, after the Obama administration's loan modification plan raised the expectations of many but satisfied only a few, a large group of distressed homeowners is wondering the same thing.

New research suggests that when a home's value falls below 75 percent of the amount owed on the mortgage, the owner starts to think hard about walking away, even if he or she has the money to keep paying. In a situation without precedent in the modern era, millions of Americans are in this bleak position.
[more here]

Mortgage Delinquencies Pass 10%: LPS

Home-loan delinquency rates in the U.S. reached 10% in December, up from the record-high 9.97% in November, according to Lender Processing Services, which provides data on mortgage performance. Accounting for foreclosures in the pipeline, the total non-current rate stands at 13.3%, according to the data in the LPS database. When extrapolated for the entire mortgage industry, 7.2 million mortgage loans are behind on their payments.
[more here]

Foreclosures and Falling Prices

The 2010 Hampton Roads real estate market will be made up of falling home prices, high inventory and a flood of foreclosures and short sales. It sounds a lot like 2009. "The market is still soft," said Vinod Agarwal, an Old Dominion University economics professor. Housing was a big part of ODU's Economic Forecasting Project 2010 economic forecast, presented Wednesday in Norfolk to the Economics Club of Hampton Roads.

In recent months, the real estate market has started to turn around, thanks to a tax credit for first-time home buyers. In 2010, the effects of the tax credit, which was extended and expanded to existing homeowners, will be muted compared to 2009.
[more here]
[related: Pending Home Sales Inch Up in December]

Report: Recession's Effects in Virginia Will Linger

Virginia must add nearly 13,000 jobs per month for the next two years to return to pre-recession employment levels, according to a report released Thursday by a Richmond nonprofit research group. The study, from the Commonwealth Institute for Fiscal Analysis, predicted that the state's unemployment levels will remain above normal through most of 2011 and not return to pre-recession levels until after 2014.
[more here]
[related: Government Data Show an Ongoing But Uneven Economic Recovery]
[related: Poof: Another 800,000 Jobs Disappear]

Fewer New Loan Hurdles, But Bank Standards Aren't Easing

Fewer banks are erecting new hurdles for people and businesses to get loans, a fresh sign credit problems are easing. In a quarterly survey released Monday, the Federal Reserve found that "commercial banks generally ceased tightening standards on many loan types" at the end of last year. The one exception: commercial real-estate loans. Even though banks aren't imposing new restrictions on most loans, they aren't ready to ease the tough loan standards put in place during the financial crisis.
[more here]

Survey Finds Retirement Plans Wanting

An overwhelming majority of American workers to believe it's time for a new and improved model for workplace retirement programs, Prudential Financial found in a survey. Prudential's sixth "Workplace Report on Retirement Planning" said 84% of workers would embrace a fresh approach to their workplace retirement plans, particularly more "auto-pilot" features.

"Our survey found that the losses sustained by American workers during the past two years really drove home the inherent limitations of long-standing retirement plan design," said Christine Marcks, president of Prudential Retirement. "With the effects of the economic crisis still front and center in people's mind, we're seeing increased awareness of the importance of workplace-provided plans." (American Banker Online, Feb. 1)

Senate Approves Bernanke as Fed Chairman

With just three days remaining in his term, the Senate voted 70 to 30 last Thursday to give Federal Reserve Board Chairman Ben Bernanke another four years at the helm of the central bank. The vote capped a battle that began in August when President Obama decided that Bernanke's aggressive and unconventional response to the financial crisis earned him a second term. But the decision provoked a firestorm on Capitol Hill in recent weeks as critics from both parties argued Bernanke was a lax regulator, ignored consumer protection and kept interest rates too low. (American Banker Online, Jan. 29)

Education & Networking Opportunities

Webinar: Notary Essentials & Legalities

It is essential for notaries to understand their duties and responsibilities. Our Feb. 10 Webinar will teach notaries how to understand and handle all their duties and responsibilities in the correct manner, and focus on matters that are important to the credit union system.
[more here]

Reg E Rule Changes Subject of Feb. 16 Webinar

The Federal Reserve Board has issued new rules for Regulation E which will give consumers the right to limit the overdraft costs associated with ATM and one-time debit card transactions by giving consent or opting-in to the program. Financial institutions must comply with the new rules by July 1, 2010. Our Feb. 16 webinar will cover the new legislation and the impact on your credit union and your members.
[more here]

Become the Leader You Desire to Be: Coaching Workshop Slated for April 16

The role of manager/supervisor is one of the most challenging jobs in the credit union movement. Join us April 16 for our "Coaching Credit Union Employees for Peak Performance," a full-day workshop designed to benefit management staff from senior managers to supervisors. This workshop will improve your abilities to perform at a high level and improve your confidence. Location: Sheraton Park South hotel (Richmond).
[more here]

Free Webinar: Navigating the Uncertain Path to Economic Recovery

Join CUNA Mutual Group Chief Economist Dave Colby as he shares his consumer-oriented economic forecasts and key risks which could derail our fragile recovery during a Feb. 16 Webinar. Time: 1 p.m. - 2 p.m. Dave will link his outlook for the economic environment to the impact on credit union results. The session will arm participants with tools they can use to successfully compete in an uncertain environment. Register online at http://www.cunamutual.com.

Richmond Fed to Host Credit Union CEO Forum March 3

The Federal Reserve Bank of Richmond is hosting a Credit Union CEO Forum on March 3. Reception at 5:30 p.m.; dinner at 6:30 p.m. Program following dinner will feature a discussion of current banking, payments and economic issues with Jeffrey M. Lacker (President, Federal Reserve Bank of Richmond), Sarah G. Green and Malcolm C. Alfriend. Location: The Federal Reserve Bank of Richmond, 701 E. Byrd Street, Richmond. R.S.V.P. by Feb. 24 to Lauren.Ward@rich.frb.org. Or, call 804.697.8436.

Largest Conference for Credit Union HR, Training Execs Set for April

Registration and conference information is now available for the upcoming 16th annual CUNA HR/TD Council Conference. The largest credit union-specific conference for human resources and training and development executives is to be held April 11-14, in Orlando, Fla. at the JW Marriott Grande Lakes. More information on the conference is available on the council's Web site at www.cunahrtdcouncil.org by clicking on the “2010 Conference” link.

News From Credit Unions

Hampton Roads Educators' CU, Windsor High School Celebrate Grand Opening of Student-Run Branch

Hampton Roads Educators' Credit Union (HRECU) and Isle of Wight County Schools have teamed up to open their first student-run credit union branch. A grand opening was held on Oct. 30, 2009, to celebrate and commemorate the event. The Blue's Gold Student Branch, a play on the school's colors, has encouraged the involvement of the entire student body by allowing them to submit ideas and vote on the branch's name as well as its logo.
[more here]

Belvoir FCU Offers New Checking Account for Active Duty Military

Belvoir Federal welcomes 2010 with the launch of a new checking account that is exclusively for active duty military. The COMPASS Military Checking provides active duty military financial services they need with benefits they deserve.
[more here]

Bronco FCU Offering Free Monthly Home Buying Seminars

Bronco Federal Credit Union had a great turnout at its first homebuying seminar of the year. Members in the market for a new home had lots of questions for the credit union. The credit union hosts it Homebuying Seminar once a month on the 4th Tuesday at its Main Office - 135 Stewart Drive, Franklin, Va.
[more here]

CEO Bob Petty Celebrates 25th Year With Bronco FCU

Bronco Federal Credit Union announced that Bob Petty celebrated his 25th year with the organization in 2009. Under Bob's leadership, first as a manager, then a Board member, and lastly as CEO, assets have grown from $13.3 million to more than $200 million. Membership grew from 3,650 to over 19,000. Bob is also president of Millennium Service Company and Bronco Real Estate Services, LLC, both CUSOs of Bronco Federal Credit Union.
[more here]

Chapter News

NoVa Chapter Meets Feb. 11

Shannon Tackett, of the Northwest Federal Credit Union Foundation, will offer a presentation on financial education at the NoVa Chapter's Feb. 11 meeting. Location: Fair Oaks Marriott. Time: 5:30 p.m. networking; 6 p.m. meeting; 6:30 p.m. dinner; and 7:30 p.m. presentation. Reservations: Contact Cheryl Dickerson by noon, Feb. 8 at cdickerson@fairfaxva.gov. Cost: $35 per person; $45 per person for vendors.
[chapter web page]

Richmond Chapter Annual Meeting Feb. 16

League President Rick Pillow will be the featured speaker at the Richmond Chapter's Annual Meeting on Feb. 16. Rick will provide an update on the 2010 General Assembly and other legislative issues. Chapter officers will also be elected. Location: Willow Oaks Country Club (6228 Forest Hill Ave., Richmond, 23225). Time: 5:30 p.m. social; 6:15 dinner; and 7 p.m. business meeting. Deadline to register is noon, Feb. 11. Contact Chris Burgess at cburgess@baylandsfcu.org or call 804.843.2520, ext. 138 with reservations. When responding, please provide a list of those attending from your credit union.
[more here]

Central Virginia Chapter Plans Feb. 18 Annual Meeting

The Central Virginia Chapter will hold its Annual Meeting Feb. 18. Remember, the annual Chapter elections are held at this meeting. If you're interested in serving as a Chapter officer, contact a member of the Nominating Committee. (Contact information online.) Location: Golden Corral Meeting Room, 1185 Seminole Trail, Charlottesville, 22901. Time: 6:30 p.m. to 7:30 p.m. - dinner; 7:30 p.m. to 8:30 p.m. - meeting and elections. RSVP: Tim.Schmoyer@pvfcu.org by noon, Feb. 16.
[more here]

Hampton Roads Chapter Plans Feb. 18 Annual Meeting

League Senior Vice President David Miles will offer an economic forecast for 2010 at the Hampton Roads Chapter's Feb. 18 Annual Meeting. Also on the agenda is the installation of chapter officers. Location: The Omni Hotel (1000 Omni Blvd., Newport News). Time: 5:30 p.m. social and 6:30 p.m. dinner. Deadline for reservations is Feb. 11. Registration form and meeting flyer are available online.
[more here]

Tidewater Chapter Plans Feb. 25 Annual Meeting

The Tidewater Chapter will meet Feb. 25 and will honor the recipients of its Professional- and Volunteer-of-the-Year Awards. Also on the agenda is the installation of chapter officers. Location: Springhill Suites (6350 Newtown Road, Norfolk). Time; 6 p.m. social; 6:30 p.m. dinner and meeting. RSVP to Carol Lee Smith at csmith@svcefcu.org or 757.514.7281, no later than 11 a.m., Feb. 23.
[more here]

League News

Special Request: Are You a REAL Deal Credit Union?

We've had a special request from REAL Solutions to help them identify credit unions whose programs, products, services and education initiatives qualify them to be recognized as a REAL Deal credit union. You may remember credit union attendees at last year's CUNA Governmental Affairs Conference sporting the special ribbons on their name badges designating their credit union as a REAL Deal credit union.

Well, here's your chance to be recognized. Complete this brief survey and get it back to us by Feb. 5. Contact Lisa Livingston (llivingston@vacul.org or 800.768.3344, ext. 619) for information. You can download the short survey as either a Word document or as a PDF.
[Word version] or [PDF]

Financial Education News

National Credit Union Youth Week April 18-24

Now is the time for credit unions to plan activities with staff and the community for a successful National Credit Union Youth Week, which will take place April 18-24, according to the Credit Union National Association (CUNA). This year's theme is "Get in the Savings Game." Credit unions can use the sports theme in lobby events, marketing and to support local sports teams of all ages while encouraging youth to save money.
[more here]

State Agency Seeks CU Info on Savings Programs for Low-Wealth Families

Virginia-based credit unions are being asked to share their knowledge in an area of asset-building most important to lifting citizens from poverty -- savings. The Virginia Department of Housing and Community Development is working with three other states -- North Carolina, South Carolina, and West Virginia -- to share best practices and establish momentum regionally for savings programs and public policies that benefit low-wealth families.

You are being asked to complete a brief confidential survey. Your participation will be extremely helpful as we move forward with this new savings initiative taking shape in Virginia and we want to ensure credit unions have a role!

Free White Paper Offers CU Perspective on Financial Education

The Credit Union Executives Society has released a white paper outlining the results of a recent survey on financial literacy. Financial Education Practices in Credit Unions, authored by Joe Saari, CEO, Precision Information, LLC, is available free to CUES members and nonmembers. The survey, conducted in December 2009 by CUES and partner Educated Investor, asked credit union leaders about their motivation to provide financial education to members and how they deliver training. To download the white paper, visit http://www.cues.org/financialeducation/

Community Involvement

Sweets 4 Sweethearts Returns Feb. 12

On Friday, Feb. 12, your League's Community Involvement Committee is sponsoring the "Sweets 4 Sweethearts" statewide fund-raising campaign to support the work of the Children's Miracle Network-affiliated hospitals serving the Commonwealth. Participation is easy … Simply encourage staff to bring their favorite dessert to the credit union on Feb. 12.

We've picked Feb. 12 as our statewide celebration, since Valentine's Day -- the day we normally hold our event -- falls on a Sunday, but choose whatever day in February works best for you. Ask members visiting your lobby to make a donation to Children's Miracle Network for a chance to sample all the goodies!
[more here]

> Credit unions: Please remember to submit your collected donations by March 12. Cut a single check/share draft (made payable to the Virginia Credit Union League) for the total donation amount. Mail your check/share draft no later than March 12 to: Virginia Credit Union League, Attn: Sweets for Sweethearts, P.O. Box 11469, Lynchburg, 24506. We'll then distribute funds to the CMN hospitals serving the Commonwealth, based on where the funds were originally collected, ensuring your donation aids your local hospital!

> We also have downloadable teller station flyers and other resources available here.

Movement Mobilizes to Assist Damaged CUs in Haiti

World Council of Credit Unions (WOCCU) and its program partners in Haiti, with assistance from the Dominican Republic's credit union movement, have mobilized to collect and deliver emergency supplies to Haiti's damaged and destroyed credit unions, known as caisse populaires.
[more here]
[Credit Unions Care Foundation of Virginia Accepting Donations to Aid Haiti]

Get Recognized for Your Good Works…Complete Our Community Involvement Survey

Each year, we gather data from credit unions to spotlight their community involvement activities and charitable giving. Please complete our brief survey no later than Friday, Feb. 12 so that your credit union's accomplishments can be included in our report and news release. Click here for the online version of the survey.

> Or, if you prefer, you can complete the print-based version of this survey. Click here for the downloadable pdf (pdf, 291kb). Please fax (434.239.8148) or e-mail (pr@vacul.org) the completed form back to us.

> Questions about the survey can be directed to Lewis Wood at pr@vacul.org or 800.768.3344, ext. 629.
Thanks for helping us report the good works of Virginia's credit unions!

Marketing News

Filene: Members Loyal But Growth Challenges Persist

Credit unions need to capitalize on consumer angst, update delivery channels and sharpen their value proposition for non-members, especially young members, according to a new report from the Filene Research Institute. The report is titled, "Customer Experience and Credit Union Opportunities: A Collaboration with McKinsey and Company." Filene collaborated with McKinsey research to conduct qualitative interviews with 31 credit unions about why credit unions command stellar member loyalty and how they can leverage that loyalty.
[more here]

CUs, Banks Wooing New Members, Customers with Merchandise

A growing number of credit unions and banks are attempting to attract and retain new members by offering marketing merchandise--such as toasters, iPods and luggage--instead of offering cash and gift cards. "Cash, it seems, is no longer king," said Alan Yarbrough, director of sales for River Rock Marketing Services, a company that specializes in developing incentive-based acquisition and retention programs that use merchandise as incentive gifts (Business Wire Jan. 28).
[more here]

CU Pushes Twitter Banking

It hasn't taken long for Twitter to go from "What's that?" to big time sizzle among consumers. When it comes to using the social media site to deliver financial services, Vantage Credit Union's about to find out how much steak there is. The St. Louis-area credit union is among the first financial institutions to use Twitter to deliver services beyond very basic customer-service interaction.
[more here]