March 4, 2010

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Headline News

News About Credit Unions

Compliance & Regulatory Affairs

Governmental Affairs News

Financial Services/Marketplace News

Education & Networking Opportunities

News From Credit Unions

Chapter News

League News

Financial Education News

Entries Sought for League Financial Education Awards; Deadline March 19

Marketing News

In Search Of Wallet Share

News About The Competition

Technology News

ATMs Get More Connected

Headline News

Legislation Heads to Governor's Desk

The charter choice bill that Virginia's credit unions drafted as a substitute to a banker-backed credit union acquisition bill is headed to the governor's desk. The legislation has passed both houses of the General Assembly and will be forwarded to the governor as House Bill 482.

Virginia's credit unions objected to the original language in the banker-backed companion bills – House Bill 482 and Senate Bill 440 – because they would have allowed for-profit banks to acquire not-for-profit credit unions without providing credit union members with key safeguards, such as clear member communication guidelines regarding the impact of a charter change, proper voting procedures, and the protection of member equity.

The legislation, as drafted by your League, provides state-chartered credit unions with a clear path for conversion to a mutual savings bank charter, if that is the will of the membership. It provides the same safeguards currently in place at the federal level for federally chartered credit unions seeking conversion to a mutual savings bank charter.
[related: Potential Merger Springs Lobby Groups into Action]

2009 Marked by Strong Growth, Financial Challenges for Virginia's CUs

Preliminary data from the National Credit Union Administration shows Virginia-based credit unions weathered the challenges of 2009 quite well by and large, recording robust growth in shares, assets and membership. Loan growth, however, was well off the pace recorded in past years, but it was also well above the national average. Shares grew at 15.3% for the year, assets by 11.8%, and membership saw an astounding 7.1% growth rate.

Total loan growth was 4.3% in 2009 – a marked decrease from 2008 (14.7%), 2007 (20.7%), and 2006 (17.6%). That said, Virginia's credit unions were still well above the anemic 1.2% growth rate recorded nationally. Credit cards (11.8% growth for the year), used autos (8.8%), first mortgages (5.1%) and member business loans (35.5%) fueled loan growth here in Virginia.

Corporate stabilization costs alongside NCUSIF premiums muddied the earnings picture for 2009, so it's tough to draw conclusions when looking at the data as compared to prior years. In terms of raw numbers, however, net income (ROA) grew to 58 basis points, more than doubling net income recorded in 2008.

It must be pointed out that when analyzing ROA across credit union asset ranges that only credit unions over $100 million in assets reported positive results. In fact, only 36% of Virginia's credit unions ended the year with positive ROA; although capital remains strong at 9.4%. Look for a complete report on year-end 2009 numbers in our Credit Union Profile publication in the coming weeks.

CU Net Worth Strong, Shares Grow, Says New NCUA Data

The National Credit Union Administration Tuesday released end-of-year call report data for credit unions, figures that show a strong 10% net worth for credit unions at the end of 2009, but also show the economy has taken a toll on loan demand and delinquencies. Membership growth, however, was another strong positive in the reports. Membership in the nation's 7,554 federally insured credit unions increased to nearly 90 million, and shares grew at a robust rate of 10.5%, as more Americans sought out credit unions as a safe place for financial services.
[more here]
[related: CUs' Asset Quality Deteriorating]
[NCUA news release] (pdf, 90kb)

Richmond Fed President Tells CU Execs Recovery's Taking Hold

More than 30 Virginia and D.C. credit unions were represented at last night's open forum hosted by the Federal Reserve Bank of Richmond. This is the third year that Richmond Fed President Jeffrey Lacker has hosted credit union executives for a discussion of economic and financial services issues. He acknowledged credit unions for their contribution to the economy, for the role they play in facilitating payments, and praised them for their commitment to financial education.

Among the highlights of the information he shared:

Indications are the economy hit bottom about mid-year 2009. The recovery is expected to be protracted with growth picking up momentum toward the end of this year, reaching a projected 3%.
He remains optimistic that the pace and strength of the recovery, despite the significant impact of unemployment, will enable us to avoid a double-dip recession.
Inflation is forecast to remain in check at around 1.5%.
Interest rates are exceptionally low and will remain so near-term. Look for a modest increase by mid-year.
He also noted growing concern over the national debt and deficit spending.
This recession has been mostly about a housing boom and bust, which was exacerbated by the "too-big-to-fail phenomenon" and the rescue of several big banks, brokerages and insurance giants.
President Lacker encouraged credit unions to respond to Federal Reserve regulation, particularly with respect to concerns of the implications of Reg E and opt-in requirements for debit and ATM overdraft fees.
Mr. Lacker remarked he understands the credit union argument for increased business lending, but he takes no position on whether raising the business lending threshold is warranted.

Regulators: Loan Drop's Justifiable

Regulators were picked apart last Friday by members of two House committees, who blamed them for a dramatic drop in lending and urged them to ease up on bankers. Top leaders at all four banking and thrift regulatory agencies attempted to defend themselves, arguing that the tightening of credit was not their fault, but rather the natural response to an economic downturn and a drop in demand.

Some even suggested that examiners were right to curb lending, particularly by troubled institutions. (American Banker Online, March 1)
[related: U.S. to Top Banks: Send More Loans!]

Loan Demand Remains Weak, Fed Says

Lending remained depressed throughout the country as banks tightened credit standards and economic uncertainty persisted, according to the Federal Reserve Board's latest economic survey.

The Fed's Beige Book, released Wednesday, noted a rise in the number of loan inquiries by consumers and businesses in a few Fed districts, such as Philadelphia and Richmond, but said the majority of banks remained cautious about lending. Districts led by New York, Cleveland and Kansas City reported the weakest demand in lending.

The other nine districts said demand had remained "unchanged, but soft." One concern for bankers is credit quality, according to Philadelphia bankers. Some noted initial signs of future loan growth, such as a rise in inquiries, but most said they expect consumer loan demand to remain poor. (American Banker Online, March 4)

CUNA to Congress: MBL Restrictions Harm Job Growth

Restricting credit union business lending "does a great disservice to business owners everywhere, and stymies job growth," St. Mary's Bank Credit Union President/CEO Ronald Covey told assembled lawmakers on Friday.

Testifying on behalf of the Credit Union National Association (CUNA) before both the House Financial Services Committee and Small Business Committee, Covey said that his credit union does not "see a scarcity of credit-worthy business borrowers."

Rather, he said, given the demand that his credit union faces for loans, "it is difficult to understand why" his credit union "should not be able to put more money back into the community, into the hands of hard working business owners, so they can employ more people and create more opportunities."
[more here]

[related: Small Biz Owners Write Congress to Support CUs]
[related: MBL Backers Increase After CU Hill Visits]
[related: New Ways and Means Chair is MBL Supporter]
[related: CUNA, MBL push in prominent spot in USA TODAY]
[related: CUNA's Hampel to Fox News: CUs 'hamstrung' by MBL cap]
[related: Bipartisan Group Urges House Leaders on MBL Cap Lift]
[related: CUNA Statement Urges Senate Action on MBLs]
[related: Cantor Addresses GAC; Says Small Biz Needs CUs]
[related: Regulators Ease Up on Small Business Loans]

Treasury Meets with CUNA on CU Issues

High-level U.S. Treasury officials, including Secretary Timothy Geithner, met with the Credit Union National Association (CUNA) last Thursday to discuss significant issues facing credit unions, including raising the statutory cap on credit union member business lending (MBL) and permitting access to secondary capital for credit unions.

The meeting also included Counselors to the Secretary Jeffrey Goldstein and Gene Sperling, and Assistant Treasury Secretary for Financial Institutions Michael Barr, and from CUNA, President/CEO Dan Mica and Chief Economist Bill Hampel.
[more here]
[related: Matz to Treasury: We'd Closely Monitor Increased MBLs]

Deal Struck on Reg Reform?

A tentative deal struck between Senate Banking Committee Chairman Chris Dodd and Sen. Bob Corker, R-Tenn., to entrust consumer protection to the Federal Reserve Board left observers, including fellow lawmakers, more confused than enlightened, and raised critical questions.

The most discussed was why Dodd, who has assailed the Fed repeatedly for its failure to protect consumers, would reverse course. House Financial Services Committee Chairman Barney Frank called the idea a "bad joke." But the more important question was whether the Fed would really be in charge. Sen. Richard Shelby, the No. 1 Republican on the Senate Banking Committee, told reporters Tuesday that he feared the new consumer protection division would operate with little to no input from the central bank.

"If the consumer protection unit or bureau is put at the Fed, FDIC or anywhere else … a prudential regulator should have a say in any rule that could affect the safety and soundness of the banking system," the Alabama lawmaker said. Shelby added that prudential regulators should "absolutely" have power to veto consumer protection proposals. The Dodd-Corker plan would allow regulators to appeal consumer protection rules to a new systemic-risk council, which could override them with a two-thirds vote, but Shelby said that idea "would be silly." (American Banker Online, March 3)

Failure to Cover Nonbanks Seen as Key Flaw of New Consumer Unit

The original goal of providing uniform protections for all consumer credit is getting lost to lawmakers' preoccupation over where to place a new regulator. Consumer group advocates, analysts, lawmakers and some bank representatives said that recent Senate proposals would leave glaring holes in consumer protection and set up an uneven playing field that could leave banks at a competitive disadvantage.

Though the details are in flux, the latest proposal would create a new division inside the Federal Reserve Board that would write new rules for all lenders but have little to no enforcement powers against nonbanks, including check cashers, payday lenders and title insurers. "How could you possibly create a CFPA to regulate bank and nonbank products but not give it authority to examine and enforce its rules against predatory nonbank products?" said Ed Mierzwinski, the consumer program director for the U.S. Public Interest Research Group.

Though such a plan would hurt banks, the industry has been more focused on killing the consumer division outright or carving out an exception for smaller institutions than ensuring parity with nonbanks. (American Banker Online, March 4)

NCUA to Revamp Merger, Purchase and Assumptions Procedures

The NCUA is working to change the process by which it undertakes mergers and purchase and assumptions, NCUA Chairman Debbie Matz said in a letter to National Association of Federal Credit Unions President/CEO Fred Becker. Matz said the agency’s “uniform merger process,” might include creating a national registry of potential merger partners. She didn’t say when the agency will release the new procedures.

Matz was responding to a Jan. 8 letter from Becker in which he complained that within the credit union movement there is “considerable confusion and frustration” about the NCUA’s process for finding merger partners. (Credit Union Times, March 2)

CUs, Enterprise Car Sales Partner on 'Cars For Kids' Fundraiser

Virginia's credit unions and Enterprise Car Sales will partner this June to offer the "Cars for Kids" program, a fund-raiser for the Children's Miracle Network hospitals serving the commonwealth. During June 2010, Enterprise Car Sales will donate $250 to Children's Miracle Network from the sale of any of its cars, funded by a loan through a participating credit union. Credit unions can sign up as program partners until April 2. All you're asked to do is promote the program to your members.
[more here]

CO-OP Shared Branching Hits 4,000 Locations

Members of credit unions that participate in a shared branching network now have access to more than 4,000 shared branches around the nation and more than 2,000 shared branching kiosk locations. Shared branching allows participating credit unions to offer their members branch networks that rival those of the largest nationwide banks as well as a means of making their institutions more resilient to natural disasters.

“Despite the emergence of new access channels, such as mobile banking, credit union members still want the ability to walk into a branch to handle their financial needs, and they want that branch to be convenient,” said Carroll Beach, president/COO, CO-OP Shared Branching. (Credit Union Times, May 2)

> Want to learn more about the shared branching opportunities here in Virginia? Contact your League's Terry Childress at 800.768.3344, ext. 605 or tchildress@vacul.org.

News About Credit Unions

U.S. Central Depletes Capital

U.S. Central Federal Credit Union's fourth quarter 2009 financials indicate the corporate's other-than-temporary impairment (OTTI) charges totaled $479.9 million for the quarter, bringing OTTI charges for the year to $1.8 billion--and depleting U.S. Central's capital. In addition to depleting U.S. Central's capital, the losses have a $331 million impact on the $1 billion infusion from the National Credit Union Share Insurance Fund (NCUSIF). That means U.S. Central has $669 million left from the capital infusion.
[more here]

Corporate America Can Sue U.S. Central’s Accountants

Corporate America Credit Union won round one late Thursday afternoon in its lawsuit against U.S. Central and its accounting firm RubinBrown. U.S. District Judge Inge Prytz Johnson denied RubinBrown’s two motions to dismiss the case. The order does not apply to U.S. Central’s former directors and volunteers also named in the suit.

That decision, which will also be written by Johnson, will be released separately. Corporate America CEO Thomas Bonds told the Credit Union Times Jan. 27 his corporate was claiming securities fraud against U.S. Central. (Credit Union Times, Feb. 26)

Post Office Cutbacks Could Affect CUs Marginally

Mounting costs and dwindling business this year have the U.S. Postal Service pushing for changes in delivery schedules and prices. Some of the changes--if implemented--would result in credit unions adjusting their operations and members adjusting their expectations.
[more here]

Fynanz, Inc. to Offer Private Student Loan Program Through CUNA Strategic Services

A new alliance between CUNA Strategic Services Inc. and Fynanz Inc. will help credit unions get a piece of the private student loan market to help them attract new members and assist borrowers with financing their tuition and achieving their higher education goals.
[more here]

CUs Lead Forrester Consumer List

American consumers are far more likely to recommend a credit union than most of the nation’s big banks, according to a new report from Forrester Research. The research and advisory firm said 73% of the 4,600 respondents in its latest North American Technographics Customer Experience Online Survey said they would be likely to recommend a credit union, 29% above the industry average for banks.

By contrast, only 24% said they would recommend Bank of America and only 27% felt that way about Washington Mutual or CitiBank, the survey taken in late 2009 found. SunTrust Bank also was well above the industry average, at 71% considered likely to recommend, Forrester said. Wachovia Bank came in at 52% and U.S. Bancorp at 51%. Retailers overall led the survey at 71% likely to recommend, Forrester said, with Barnes & Noble leading the way with 86% likely to recommend. (Credit Union Times, March 4)

Compliance/Regulatory Affairs News

Fed Plans Limit on Card Penalty Fees

The Federal Reserve Board issued a proposal Wednesday that would protect consumers from paying large penalty fees and potentially lower the interest rates they pay on their personal credit cards.

The plan would prohibit a credit card company from charging consumers large penalty fees of more than the required minimum payment as well as require companies to explain to consumers why their rates increased. It would also require companies to evaluate rate increases since Jan. 1, 2009, and potentially reduce those rates, if appropriate, as well as ban inactivity fees.

The proposal, if finalized, would go into effect Aug. 22. It is the third part of the central bank's plan to implement a credit card accountability law passed in May 2009. 9American Banker Online, March 4)
[more here]

CUNA Compliance: CUs Need to Review Check-Hold Disclosures

As of Feb. 27, the Federal Reserve Board consolidated all its check-processing operations into Cleveland, Ohio. This action eliminates all "nonlocal checks" under Regulation CC, which implements the Expedited Funds Availability Act. Reg CC governs when credit unions must make funds available that are deposited into share draft/checking accounts and what disclosure they must make about their check-hold policies.

"All credit unions need to review their current Reg CC disclosures immediately and send out any necessary changes by March 29," explains Mike McLain, CUNA's assistant general counsel.
[more here]

[related: League Operations Manual Release 264, Summary of Reg CC Changes]
[related: League Operations Manual Release 264, Supplement 1: Overview of Reg CC Changes]
[related: League Operations Manual Release 264, Supplement 2: Regulation CC Funds Availability Chart]

One Tough Sell: Overdrafts

The new restrictions on overdraft fees set to go into effect July 1 are giving bankers headaches. Already stressed about the potential loss of fee income, bankers are trying to make sense of which transactions are covered by the rules, figure out what fixes they need to make in the back office and, most importantly, develop marketing campaigns that educate consumers about the rules without souring them on overdraft programs.

The changes mandated by the Federal Reserve under Regulation E will ban overdraft fees on ATM withdrawals or signature debit transactions unless consumers voluntarily opt in for overdraft protection. The biggest back-office hurdle, a point raised by community bankers in written comments last year to the Fed, is the trouble they'll have in distinguishing which debit transactions are covered by the rules.
[more here]
[related: Limits on Overdraft Fees Won't Cripple Banks, Research Says]

Governmental Affairs News

March 2010 Edition of The Advocate Now Online

The March 2010 edition of The Advocate – your League's governmental affairs newsletter -- is now available online at http://www.vacul.org/advocacy/gov_affairs/index.php.

Younger Crowd Gets the GAC Experience

Ken Worthey Jr., marketing specialist at Belvoir Federal Credit Union, Woodbridge, Va., summed up his experience with Crash the GAC in Washington, D.C., last week like this: GAC was an eye-opening experience. Worthey was one of 20 young professionals who attended the Credit Union National Association's (CUNA) Governmental Affairs Conference (GAC) with "Crash the GAC."

Crash was organized by Brent Dixon, young adult adviser at the Filene Research Institute and consultant with REAL Solutions. Crashers received scholarships to attend the conference from the CUNA Center for Professional Development, paid for their own travel costs and stayed at a hostel courtesy of Palmetto Cooperative Services.

Worthey, who started with Belvoir five years ago as a teller, said of the GAC: "It helped me to put in perspective how wide the scope of the industry is and the changes we make in the world. The Crash enabled us to collaborate with professionals our age and share ideas about the industry." Fort Lee Federal Credit Union also had staff participate.
[more here]

Financial Services/Marketplace News

Economy Grew 5.9% in 4th Quarter

The U.S. economy grew at a slightly faster pace than originally thought during the last three months of 2009, according to a government report Friday. The nation's gross domestic product, the broadest measure of the nation's economic activity, grew at an annual rate of 5.9% in the quarter, the Commerce Department reported. Economists surveyed by Briefing.com had forecast that the revision would show the same 5.7% growth that was originally reported a month ago.
[more here]

Borrowers Miss Out on Billions in Savings

The Federal Reserve has pushed mortgage rates to near half-century lows, but millions of U.S. homeowners haven't benefited from that because they can't--or won't--refinance. Falling home prices have left many owners with little or no equity, making it harder to qualify for refinancing.

Moreover, stricter lending standards and higher fees by banks and mortgage giants Fannie Mae and Freddie Mac and declining incomes have made it tougher and less attractive for borrowers to seek new loans. (Wall Street Journal, March 3)

More Consumers File for Bankruptcy Protection

The economic recovery effort has not slowed consumer bankruptcy filings. They surged 14% in February compared with a year earlier, according to the American Bankruptcy Institute. The 111,693 cases filed last month also represented a 9% increase from January, the report said.

"The debt-stress overhang from years of consumer spending has a more acute impact now because of troubling economic times," says Samuel Gerdano, American Bankruptcy Institute executive director. And that financial distress is driving more Americans to file for Chapter 7 bankruptcy, which -- if approved -- allows a court to discharge most unsecured consumer debt, including credit card bills.
[more here]

Homebuyer Credit Not Jolting Housing Market

It sounded like a great idea three months ago: Hand homeowners a $6,500 tax credit to find a new place to live, giving a thrust of energy to the housing market's recovery. So far, people are staying put. In November, the federal government extended a tax credit of up to $8,000 for people who hadn't owned a home for three years.

This credit had helped boost home sales last summer and fall. Seeking to build on that momentum, the government added a new credit of up to $6,500 for current homeowners, hoping it would transform them into house-hunters this winter and spring. But real estate agents around the country say the credit is doing little to elevate sales. Reasons vary.
[more here]

Get Ready for Rising Rates

Bankers cannot wait until the inevitable rise in interest rates before deciding how they plan to handle it. That's the consensus among regulators, who are increasingly concerned about institutions getting caught off guard as the unprecedented low rates start to normalize. It's enough of a worry that the Federal Deposit Insurance Corp. had a day-long conference in late January devoted solely to interest rate risk management. The trouble is that some institutions holding on to long-term assets are relying too heavily on cheap short-term funding.
[more here]

Levin Hatches New Plan to Boost Small Business Loans

While the Obama administration's efforts to boost small-business lending languish on Capitol Hill, lawmakers are pressing an alternative. Sen. Carl Levin, D-Mich., on Tuesday proposed a reserve fund that a bank could tap when collateral posted by a small-business borrower declined in value. This reserve would be funded by contributions from small businesses and matching dollars from states and the federal government. Levin said the move would help community banks continue to lend to well-known small businesses. (American Banker Online, March 3)

Back to the Greenback? Consumers Turn on Cards

Many consumers are switching back to cash from paying with plastic, a survey says, as unhappiness with bank bailouts continues to sour Americans on the financial industry -- and its products. About 42% of consumers are using more cash than they were a year ago, according to the survey.

"It's not that it's just shifted from credit to debit cards, it's shifted to real cash. There's almost a Depression-era mentality," said Mark Willard, a senior vice president at Market Strategies and head of its financial services division. "This fundamental insecurity has really shaken everything," he said, including consumer confidence in the banks that hold their deposits. (American Banker Online, March 1)

Education & Networking Opportunities

March 10 Webinar Spotlights Trust Accounts

Handling formal trust accounts, like business accounts, is not difficult if you understand what they are designed to accomplish, who the players are, and the due diligence issues. Our March 10 Webinar is designed give you the information you need to confidently open formal trusts in share accounts.
[more here]

NCUA Schedules March 11 Workshop in Richmond

The National Credit Union Administration has scheduled a March 11 workshop in Richmond. Among the topics: Allowance for Loan Lease Losses (ALLL), Regulatory Hot Topics and Credit Union Strategies for Combating Predatory Lending. Registration information is available online.
> NCUA has expanded hotel room availability. Check with the host hotel for details on discounts if you're staying overnight.

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]

> How did past attendees rate this session? Check out these comments from last year!

"Received information to strengthen my current management skills, and I can take this back to our other leaders to improve their leader roles."
"I learned how to manage and coach my staff more effectively, and with less stress to me!"

Order 10 or More of Our Webinars, Get Additional Webinars Free!

Your League and our Webinar partner are pleased to offer special pricing on our Webinars when you order 10 or more at once. Order 10 Webinars, get one free; 20 Webinars, get three free; and 30 Webinars will get you five free!

> Learn more about the discounts by downloading the registration form: http://www.vacul.org/file_broker.php?document_id=733 (Word document, 101kb)
> View the list of this year's Webinar offerings here: http://www.vacul.org/calendar/webinars.php

2010 Southeast Regional Directors' Conference: 'The Pathway to Success' Set for July 10-14

Through times of economic uncertainty, credit unions are focused on leading their members down the pathway to financial success. Credit union directors, through knowledge of industry trends, are responsible for guiding their credit unions and keeping them on this path. Join us in Lexington, Kentucky for the 2010 Southeast Regional Directors’ Conference July 10-14, 2010 where you’ll be surrounded by beautiful rolling hills at the Griffin Gate Marriott Resort and Spa.
[more here]

News From Credit Unions

We Promise Foundation Giving Away Free Groceries While Helping Local Children

Chartway's We Promise Foundation is offering 1,250 chances to win a year of free groceries. All proceeds will benefit children in our community that are struggling with life-threatening illnesses. The tickets will be sold through April 13, 2010 and this fundraising event will award one lucky person $5,200 in FREE groceries from Farm Fresh Supermarkets.

Since its inception, the We Promise Foundation has sought new ways to raise awareness and raise money for children with degenerative and life threatening illnesses. This year our Free Groceries raffle will give one lucky winner a refrigerator full of food throughout the year and it will serve a greater purpose; to raise funds to help children realize their dreams.
[more here]

Northwest FCU Foundation Set to Award $90,000 in Scholarships

March 1 marks the beginning of Northwest Federal Credit Union Foundation’s (NWFCU Foundation) scholarship season. Running through April 15, the NWFCU Foundation is set to award $90,000 through their two scholarship programs; the Ben DeFelice and the CIRA scholarships. Since the scholarship program’s first recipients were honored in 2005, the NWFCU Foundation has awarded a total of $239,000.
[more here]

Langley FCU Opens Norfolk Branch

Langley Federal Credit Union is pleased to announce the opening of the new Wards Corner Branch located at 7420 Granby Street in Norfolk. With the opening of this location, LFCU now has 19 branches in the Hampton Roads area.
[more here]

Angela Barnes Receives CommonWealth One's President's Award

Angela Barnes, service and sales support manager, was awarded the CommonWealth One President’s Award on Feb. 23, for her contribution to increasing the sales of ancillary insurance products and improving sales and services at CommonWealth One Federal Credit Union.
[more here]

TARP, Stability Give NCP High Hopes for Growth

The federal government's plan to offer capital infusions to community development financial institutions couldn't have come at a more opportune time for NCP Community Development Federal Credit Union.

With $2.17 million in assets, the small credit union, headquartered in the Berkley section of Norfolk, by no means stands to receive a windfall from the $1 billion plan the Treasury announced on Feb. 3. But NCP Chairman Gilbert Bland said the TARP program, coupled with NCP's renewed efforts to expand its visibility in the low-income areas it serves in Norfolk, Chesapeake and Portsmouth, has the 10-year-old credit union's board animated.
[more here]

Chapter News

NoVa Chapter Meets March 11

Attorney David Reed will present "Five Red Hot Techniques to Maximize Your Collections Function" at the NoVa Chapter's March 11 meeting. Now, more than ever, every credit union needs to reassess their collections function to make sure they are getting the most out of their limited resources. Since credit unions exist for the benefit of our members, David Reed shows how to make that the centerpiece of your collection efforts.

Location: Fair Lakes Hyatt (12777 Fair Lakes Circle). Time: 5:30 p.m. networking; 6 p.m. meeting and election of chapter officers; 6:30 p.m. dinner; and 7 p.m. program. To register: Contact Cheryl Dickerson at cdickerson@fairfaxva.gov by noon, March 8.
[chapter web page]

Hampton Roads Chapter Meets March 18

Attorney Aaron J. Ambrose, of Kaufman & Canoles, P.C., will present a program on the revised uniform power of attorney act, conflicts of interest and codes of conduct at the Hampton Roads Chapter's March 18 meeting. Location: The Omni Hotel, Newport News. Time: 5:30 p.m. social and 6:30 dinner. Deadline for reservations is March 11. Reservation form available at the link below.
[chapter web page]

Lynchburg Chapter Meets March 18

Your League's Kristen Tatlock will present a program on Reg CC at the Lynchburg Chapter's March 18 meeting. Location: Fairview Christian Church. Time: Social – 6 p.m.; Dinner – 6:30 p.m. and Business Meeting – 7 p.m. Cost: $12 per person. There is no charge to attend the meeting only. The Chapter will pay for dinner for two people from each credit union with $1 million in assets or less for two meetings. You MUST have a reservation to attend. Reservation deadline: Please call Vickie Smith at 455.1116 or e-mail her at vsmith@mybcu.org by March 12.
[chapter web page]

League News

"We're The Solution" … Annual Meeting 2010 Registration Now Open

Join us May 6-8 in Reston as we showcase your League and the role we strive to play in your success! This year’s Annual Meeting promises expanded education and networking opportunities, more special events and important keynote presentations, including National Credit Union Administration Chairman Debbie Matz.
[more here]

Credit Unions Care Foundation of Virginia Gala Dinner & Fundraiser
We’re celebrating the 1st Anniversary of the Credit Unions Care Foundation of Virginia, the non-profit formed last May by Virginia’s credit unions to support charitable, educational and community causes.

On May 7, the Foundation will host a dinner and fundraiser, offering an overview of its efforts to date and its vision for the future. We’ll honor contributors, and we would appreciate both individual and credit union contributions to further the Foundation's work.
[more here]
22nd Annual VACUPAC Golf Tournament
Join us May 6 for the 22nd Annual Virginia Credit Union Political Action Committee (VACUPAC) Golf Classic. Contact your League’s Cathy Baldwin for registration details. Register online now.

We're also looking for tournament sponsors. Several sponsorship opportunities are available starting at $200. Help make the VACUPAC golf tournament a success with your sponsorship!
[more here]
League Board Seeks Nominations for Kirsch, Farley Awards
- Deadline for nominations is March 31!
Our Awards Nominating Committee is seeking prospective candidates for our annual awards. The Virginia Credit Union League Board will name the winners of the 2010 James P. Kirsch Lifetime Achievement Award and the Eugene H. Farley Jr. Award of Excellence at the Annual Meeting in Reston on May 7.

[more here]

Invest in America Adds DIRECTV, CMN

America's credit union members can invest, donate and save all at the same time when they sign up with a nationwide satellite TV service, while helping sick and injured children in local community hospitals. A new partnership between Invest in America and DIRECTV will launch April 1. Through the exclusive members-only program, credit union members will receive $5 off per month on the first 12 months of a DIRECTV subscription, in addition to any other DIRECTV promotions. Also, $15 will be deposited into their credit union savings or checking account. Through this partnership, CUcorp will also donate $10 for each new subscriber to Children's Miracle Network, a nonprofit organization credit unions work with to benefit children's hospitals.
[more here]

Financial Education News

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 Awards Celebration May 8 as part of the League's Annual Meeting. Deadline for submitting your entry is March 19!
[awards packet] (Word document, 339kb)

Marketing News

In Search Of Wallet Share

A few weeks before he retired as Wells Fargo's chairman in December, Richard Kovacevich boasted that the company has never been in better position to sell more products and services to existing customers. That's partly because Wells Fargo picked up millions of new customers when it bought Wachovia last year, presenting branch managers and other frontline employees with unprecedented cross-selling opportunities. But the financial crisis is a factor, too. Consumers are thinking differently about how they shop for financial services; rather than look for the best rates, many just want to park their money at a bank they can trust."
[more here]

News About The Competition

Banks Begin Image Repair over Financial Crisis

Some of the biggest U.S. banks are trying to regain the public's trust through ad campaigns that tentatively confront the question of blame. Only 19% of Americans are confident of bankers' integrity. In a video on a new Citibank blog, the company's chief executive sits against a white backdrop and owns up to the bank's role in the financial crisis.
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Former Employees Allege Reverse Redlining at Wells Fargo

Wells Fargo allegedly engaged in reverse redlining, the act of offering economically disadvantaged borrowers riskier mortgages, in neighborhoods across Memphis and surrounding Shelby County, according to the claims of former employees in a lawsuit (download here), filed by the relevant municipal governments. The litigation also claims that, as a direct result, these actions may be contributing to a disproportionately high number of foreclosures in predominately black areas.
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Payday Lenders Giving Advances on Unemployment Checks

The payday loan industry has found a new and lucrative source of business: the unemployed. Payday lenders, which typically provide workers with cash advances on their paychecks, are offering the same service to those covered by unemployment insurance. No job? No problem.
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BB&T Originations Nearly Doubled in 2009

BB&T Corp. said it originated 72,500 mortgages through its retail operation, including 53,500 refinance loans and 19,000 purchase mortgages, a 97% increase from 2008’s origination level. In addition, BB&T said it closed 6,600 loans worth nearly $1.3 billion to help stave foreclosure for distressed borrowers. The increase in origination volume could be partially attributed to BB&T’s August acquisition of the failed Colonial Bank. The move added 354 banking offices in Alabama, Florida, Georgia, Texas and Nevada, the largest acquisition in BB&T’s 137-year history.
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With Checks and Other Services, Prepaid Cards Eat into Banks' Territory

Prepaid card companies are making it possible to have the benefits of a bank account without actually having a bank account. A growing number of prepaid companies are introducing features, such as online banking and bill pay, savings accounts and even lines of credit, that observers say are making card accounts seem more like basic checking accounts. (American Banker Online, March 1)

Technology News

ATMs Get More Connected

Automated teller machines may no longer be the one-trick pony of banking. Since their inception, ATMs have been primarily seen as cash withdrawal devices. But in recent years, with the emergence of envelope-free deposit, the range of common uses for ATMs has expanded into a broader span of services like making deposits and buying stamps. However, integrating bank machines more closely with other channels -- including the branch, call centers, online and mobile -- may be the next step in further broadening use of ATMs.
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