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September 2, 2010

> An award-winning publication of the Virginia Credit Union League
> Your comments and submissions are always welcomed. E-mail pr@vacul.org
> Visit the Virginia Credit Union League Homepage
> Previous Issue

NOTE: The League office will be closed Monday, Sept. 6. Have a happy and safe Labor Day weekend!

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Headline News

News About Credit Unions

Compliance/Regulatory Affairs News

• NCUA Claims WesCorp's Demise Tied to MBS Investments
  
• Challenging Examiners -- It's Part of the Job
  
• Consumers Split on Overdraft

Financial Services/Marketplace News

• Consumer Confidence Rises in August, But Conditions Weaken
  
• Procrastination on Foreclosures, Now 'Blatant,' May Backfire
  
• Finally, the Housing Meltdown Makes Sense
  
• Credit is Finally Available, But No One Wants It
  
• Credit Losses Could Stay High Longer in This Cycle

Education & Networking Opportunities

News From Credit Unions

Chapter News

Headline News

CUNA Defends CU Tax Status: It's Good Policy

Directly on the heels of an advisory panel's report on possible tax law revisions, the Credit Union National Association (CUNA) sent a letter to each member of the President's Economic and Recovery Board (PERAB) to underscore the public-policy value of the federal credit union tax status.

The PERAB is an outside advisory panel and is not part of the Obama administration, and its report does not represent recommendations, but rather options to be considered for tax reform. However, CUNA President/CEO Bill Cheney immediately and adamantly defended the credit union tax exemption, explaining that the strong public-policy reasons that first inspired that tax status remain valid today. [more]

[related: Trade Associations Address Advisory Board]
[related: Advisory Report Triggers Wisconsin Fight]
[related: CUNA, NAFCU Downplay Tax Threat]
[related: CUs in Advisory Panel Report on Tax Options]

CUNA: Despite Headwinds, More Gradual Improvement in CU Results

The Credit Union National Association's economists, analyzing mid-year credit union call report data released this week by the National Credit Union Administration (NCUA), conclude that following the initial positive signs for credit union operations of the first quarter, most indicators continued to move in the right direction in the second quarter.

This of course follows two of the most difficult years ever for credit unions in 2008 and 2009. Most significant, the economists noted, was the further improvement in credit union earnings in the second quarter.

Although net income, or return on assets (ROA), was down slightly during the quarter, to 38 basis points (bp) of assets from 46 in the first, the drop was due to the corporate stabilization assessment of 13.4 bp of insured savings levied during the quarter. Net income before the separate National Credit Union Share Insurance Fund (NCUSIF) stabilization expenses actually rose from 48 bp in the first quarter to 79 bp in the second. This means, the economists said, that ROA for the first half, after stabilization expenses was 42 bp.

Although that pales in comparison to the 90 bp to 100 bp that many credit unions became accustomed to before the recession, it represents a marked improvement from the near zero earnings of the previous two years.

The most significant contributor to the earnings improvement was another decline in the provision for loan loss expense, from 115 bp of assets for all of 2009 to 82 bp in the first quarter and 73 in the second quarter.

Other signs of improvement in credit quality were a reduction in net loan charge-offs, from 1.21% of loans outstanding in 2009 to 1.17% in the first quarter and 1.09% in the second. Credit unions' average delinquency rate, which had soared from 0.68% in 2006 to 1.87% last December, has stabilized, dropping to 1.79% as of March and 1.77% as of June. [more]
[related: Callahan and Associates Mid-Year Data]

Virginia Credit Union Profile For Year Ended June 2010

Virginia's CUs Prove Resilient, Says 2Q2010 Data, But Lending a Challenge

Preliminary data for the year ended June 2010 shows Virginia-based credit unions' earnings picture continues to improve, but lending continues to be a challenge. For the year ended June 2010, Virginia's credit unions saw net income of 95 basis points before stabilization expenses; 76 bp after factoring in stabilization expenses.

Loan growth was non-existent, brought down by negative and flat growth, respectively, in the first and second quarters of this year. Among the bright spots in the lending picture was continued strong growth in member business loans, up 30% for the year ended June 2010, while credit card growth was 8.4% and loans for used autos reached 6.3%.

The state's credit unions boosted loan loss provisions slightly to 120 bp for the second quarter. Net loan charge-offs slipped to 1.38% of loans outstanding for the quarter, while the loan delinquency rate dipped to 1.23%, from 1.43% for both first quarter 2010 and fourth quarter 2009.

News About Credit Unions

Low Mortgage Rates Squeeze CUs

The corporate bailout charge, pending National Credit Union Share Insurance Fund assessment, credit card, overdraft and interchange fee reforms -- as if credit unions didn’t have enough to worry about, rates on mortgages have been plummeting in recent months -- just as mortgage lending has become more important. Good for members, but bad for credit unions.

“This is an environment that credit unions are going to have to acclimate themselves to,” said Christopher Sullivan, chief financial officer for United Nations Federal Credit Union, of the record low rates that are pushing good-yielding mortgage products off their books amid a flood of refinancings. (Credit Union Journal, Aug. 27)

[related: Zillow: 30-Year Mortgage Rates Drop to Another Record Low]
[related: Hampton Roads-Area Home Sales Dropped 21% in July]
[related: Home Prices Gain 3.6% in Past Year]
[related: MBA: Mortgage Loan Applications Increase 2.7%]

FASB Considering a Radical Change to Reserving; Represents New Costs for CUs

Accountants at financial institutions may have to change the way they count the beans that could go bad. The Financial Accounting Standards Board is considering a new method for calculating reserves as part of a sweeping proposal that has gotten more attention for its fair-value mandate.

The new method would be the biggest change to reserving practices in more than three decades, experts said. Some in the industry favor the proposal, which would require institutions to set reserves based on long-term loss expectations rather than wait for possible signs of imminent default. The advantage, they said, is that balance sheets would more accurately portray the present value of cash flows expected to be collected.

Opponents argue that the plan would front-load credit costs, which would also reduce income and pressure capital, without empowering institutions to pad reserves during good times. (American Banker Online, Aug. 30)
[related: GAAP Changes Would Cost CUs Thousands]
[CUNA's comment call is available here]

Temporary Corporate Credit Union Share Guarantee Program Extended

The National Credit Union Administration has extended the expiration date of NCUA’s Temporary Corporate Credit Union Share Guarantee Program (TCCUSGP) from Sept. 30, 2012, to Dec. 31, 2012. With this extension, new investments with maturities of two years or less in participating corporate credit unions made before Dec. 31, 2010, will be fully covered by the guarantee program. This Guarantee will be in addition to the existing deposits already covered.
[more]

New Frugality Movement Draws Curious to CUs

As consumers aim to simplify their lives by cutting back on spending and building savings, credit unions are out front helping to make it happen, according to one CUSO. The Rancho Cucamonga, Calif.-based CO-OP Financial Services highlighted several trends where CUs are meeting the frugal needs of members including the industry having the fastest growth since 2003.

Consumers are more willing to switch banks than they were before the financial crisis, the technology and ATM solution CUSO said, citing a J.D. Power & Associates survey. Credit unions also have nearly 10% of the household savings in the country, their biggest share of the market ever. (Credit Union Times, Aug. 30)

Lack of Access to Alternative Capital Could Have Serious Consequences for CUs

Could lack of access to alternative capital sound the “death knell” for the credit union movement? U.S. credit unions, besides those with low-income designations, are among the only financial institutions in the world lacking access to capital beyond retained earnings. Fallout from the economic crisis has brought the issue to the forefront. [more]

Order ICU Day Materials Now and Save

Take advantage of International Credit Union Day® on Oct. 21, to promote the credit union difference to gain new members and thank the existing 186 million credit union members worldwide. Now is the time to stock up on promotional materials for ICU Day celebrations. All orders placed before Sept. 17 are discounted at least 10% with early bird pricing! See all promotional products and order today!

Penny Overdraft

Big bank customers are used to paying as much as $35 when they overdraw their checking accounts. Now one small credit union is rolling back that fee to a mere penny! [more]

Compliance/Regulatory Affairs News

NCUA Claims WesCorp's Demise Tied to MBS Investments

A portfolio weighted too heavily with non-agency mortgage-backed securities led to the failure of Western Corporate Federal Credit Union. In a complaint filed in District Court for the central district of California, the National Credit Union Administration Board alleges WesCorp departed from its traditional business model of providing liquidity for credit unions and "began an aggressive campaign to increase the size of the organization" around 2002.

WesCorp fueled this growth through borrowing and then investing "heavily in private-label [MBS]," according to the complaint. This lead to WesCorp reporting total assets of $32.5 billion at the end of 2007, more than 50% higher than five years earlier. But the credit union's exposure to private-label adjustable-rate MBS was $22 billion, or about 95% of its total investment portfolio, at the end of 2007.

During the five years between 2002 and 2007, WesCorp's borrowings rose more than 2000% to higher than $10 billion. Then the bottom dropped out of MBS, and WesCorp reported a 2009 loss of $6.8 billion in its investment portfolio, effectively rendering the credit union insolvent, according to the complaint. The NCUA seeks more than $1 billion in damages from the WesCorp officers and directors. [more]

[related: NCUA Files Amended Complaint in WesCorp Suit]
[related: NCUA's Amended Defendants List in WesCorp Case Adds Two, Excuses 13]
[related: U.S. Sues Former Execs of Failed Credit Union WesCorp, Alleging Fraud]

Challenging Examiners -- It's Part of the Job

Steve Wilson, the chairman and chief executive of LCNB National Bank in Lebanon, Ohio, is a brave man. His $632 million-asset bank is about to undergo an exam by the Office of the Comptroller of the Currency, yet he is still willing to speak publicly about what he views as a huge problem: overzealous examiners.

"Regulators have stifled lending to a great degree because bankers are afraid to make loans," he said in an interview. "Our exam last year was so very different than any other exam. They came in, they didn't smile, they had their marching orders from headquarters. It was a totally different experience."

Wilson said he understands why examiners are being so cautious -- it's a lousy economy, and lots of banks are struggling. But examiners, he said, have crossed the line and become too cautious. "That overcautiousness is really slowing down our ability to make loans," Wilson said. "If we want to get this economy moving, we've got to let banks do what banks do best, which is underwrite credit." Examiners are routinely classifying performing loans, he said, which is driving up bank funding costs and deposit insurance premiums, as well as making it harder to raise capital. "It is more than a blow to your ego," he said. "It's a bottom-line blow."

To be sure, there are plenty of reasons bank lending has declined, including a lack of demand from creditworthy borrowers, and there can be no doubt that some bankers running shaky institutions are using examiners as scapegoats. But plenty of talented executives make the argument that examiners have lost sight of their mission and are blindly applying rules without regard for their impact.

After hearing from so many members, the ABA sent each regulatory agency a six-page letter last March, detailing complaints about the supervisory process. Among the beefs: Examiners are requiring banks to hold way more capital than the required minimums. The banks that cannot raise extra capital are forced to sell assets and curtail lending, the ABA said.

Despite guidelines encouraging bankers to work with troubled borrowers, the ABA asserted, examiners are criticizing even performing credits when the value of the collateral has declined. In some cases, the decline is nothing more than the examiner's opinion of the property's value based on local economic conditions. (American Banker Online, Sept. 2)

Consumers Split on Overdraft

Bank customers are divided nearly down the middle when it comes to opting in to debit card account overdraft protection in accordance with new federal rules, according to data from the American Bankers Association. Forty-six percent of consumers said they have opted in to their banks' overdraft protection programs, or plan to do so.

Another 49% said they did not opt in, and 5% said they were unsure of their decision. The market research firm Ipsos Reid polled 1,010 U.S. adults by phone on Aug. 14 and Aug. 15 on behalf of the trade group. The data was released Tuesday. (American Banker Online, Sept. 2)

Financial Services/Marketplace News

Consumer Confidence Rises in August, But Conditions Weaken

An improved short-term outlook boosted consumer confidence for the first time in two months in August but the average American's take on current economic conditions continued to weaken during the month, according to the private research firm The Conference Board. The board's consumer confidence index for August was 53.5, topping the consensus analysts' estimate of 50.5, according to Thomson Reuters, and up from a revised July figure of 51. [more]

[related: Consumer Spending Picks Up]
[related: Economists: I Dunno, Man. What Do You Think?]
[related: Economists divided over Fed's next direction]
[related: Five reasons to be optimistic about the economy]

Procrastination on Foreclosures, Now 'Blatant,' May Backfire

Ever since the housing collapse began, market seers have warned of a coming wave of foreclosures that would make the already heightened activity look like a trickle. The dam would break when moratoriums ended, teaser rates expired, modifications failed and banks finally trained the army of specialists needed to process the volume. But the flood hasn't happened.

The simple reason is that servicers are not initiating or processing foreclosures at the pace they could be. By postponing the date at which they lock in losses, banks and other investors positioned themselves to benefit from the slow mending of the real estate market. But now industry executives are questioning whether delaying foreclosures -- a strategy contrary to the industry adage that "the first loss is the best loss" -- is about to backfire.

With home prices expected to fall as much as 10% further, the refusal to foreclose quickly on and sell distressed homes at inventory-clearing prices may be contributing to the stall of the overall market seen in July sales data. (American Banker Online, Aug. 27)
[related: Nearly 1 Million More Mortgages Go From Current to Delinquent: LPS]

Finally, the Housing Meltdown Makes Sense

Our friends at ProPublica have come up with the latest in a series of investigative stories shedding light on the obscure world of Wall Street derivatives that were at the heart of the housing bubble and collapse.

The story, by investigative reporters Jake Bernstein and Jesse Eisinger, focuses on how Merrill Lynch and other financial outfits “created fake demand” to prop up the market for so-called collateralized debt obligations, or CDOs. [more]
[related: A Big Surprise: Troubled Assets Garner Rewards]
[related: Bernanke: Shut Banks if Threat to System]

Credit is Finally Available, But No One Wants It

Finally, nearly two years after they were bailed out by Congress, big banks are beginning to ease lending standards for individuals and small businesses. But it's not exactly having the reception many believed it would. Just when credit becomes more available, there's little evidence of a surge in demand for it. [more]
[related: The Saving Mentality is Hurting the Economy's Recovery]

Credit Losses Could Stay High Longer in This Cycle

The banking industry's loan losses could stay elevated for years, recent federal data suggests, even after appearing to peak in late 2009. Banks' chargeoffs narrowed for the second quarter in a row in the April-June period, according to the Federal Deposit Insurance Corp. and Federal Reserve. That bolsters a view among many analysts and investors that losses may have stopped rising permanently in the fourth quarter.

But no one is celebrating that positive development just yet. It took two years for banks' loan losses to fall from peak levels after the recession of the early 1990s. It could take even longer this time around, given the depth of this cycle and ongoing problems in the real estate market, industry watchers said. (American Banker Online, Sept. 1)
[related: Problem bank list climbs to 829]
[related: Bankers Told Recovery May Be Slow]

Education & Networking Opportunities

Subpoenas, Summonses, Levies & Other Demands for Member Funds

Learn the proper way to handle subpoenas, garnishments, levies, and other demands for member funds by participating in our Sept. 8 Webinar. [more]

Writing a Policy for FACT Act Risk-Based Pricing Regulations: Effective Jan. 1, 2011

The Agencies have announced the final ruling on Section 311 of the FACT Act involving risk-based pricing. Your credit union must have guidelines, be in compliance with new standards and disclosures, and you will be required to have a written policy! These final rules will be effective Jan. 1, 2011. So where do you begin? With our Sept. 9 Webinar! [more]

East Coast Marketing Conference Sept. 22-23

Join credit union marketers and business development specialists from Virginia, North Carolina and beyond for the 2010 East Coast Credit Union Marketing Conference Sept. 22-23, in Richmond, Virginia. With education sessions focused on the conference theme of "Elasticity: Bouncing Back From a Bad Economy," you'll learn from businesses that have bounced above the competition despite the challenging economy. Location: Crowne Plaza Hotel. Room rate is $109. [more] (pdf, 634kb)

Fall Compliance Conference Oct. 19-20; Register Now

Your League's Fall Compliance Conference will feature education sessions on marketing, advertising/Web site compliance, and a full rundown on new and revised regulations. Mary-Lou Heighes, President of Compliance Plus, Inc., will be the featured presenter at this not-to-be-missed conference. Dates: Oct. 19 and 20. Location: Williamsburg Marriott.
[more]
[register online]

Lending In The New Economy Workshop Oct. 5; Learn Strategies That Will Work Today!

The recession has caused credit unions to rethink how they are making loans. Your League's full-day "Lending In The New Economy" workshop will focus on strategies and processes that are working in the New Environment. You'll learn strategies to control risk, while attracting and making loans. Location: Sheraton Park South Hotel (Richmond). Date: Oct. 5. [more]

Become the Leader You Desire to Be: Coaching Workshop Slated for Oct. 26

The role of manager/supervisor is one of the most challenging jobs in the credit union movement. Join us Oct. 26 for our "Coaching Credit Union Employees for Peak Performance," a full-day workshop designed to benefit management staff. This workshop will improve your ability to perform at a high level and boost your confidence. Location: Sheraton Park South hotel (Richmond). [more]

CUNA Community CU, Growth Conference Oct. 6-9

A vital component to every credit union's success is being able to continually grow its membership through innovative strategies and market focuses. For many credit unions, the most challenging piece of the puzzle is when it comes to strategies for bringing new members through the doors.

The 2010 CUNA Community Credit Union & Growth Conference is focused on putting all the pieces together to grow membership and revenue. The conference registration fee is $895 per person ($1,095 after Sept. 7). CUNA Council members receive $100 discount. To learn more and to register, visit http://community.cuna.org.

News From Credit Unions

Credit Union Champion Dick Williams Remembered

Credit union champion Richard L. "Dick" Williams, 70, passed away Aug. 26 after a long battle with cancer. He retired as CEO of Member One Federal Credit Union in 2008, after a storied career that included leading Member One for more than three decades. He entered the credit union system through a position with the Virginia Credit Union League in 1969.

The family has requested that those wishing to honor Dick's legacy consider a tax-deductible donation to the Credit Unions Care Foundation of Virginia, PO Box 11469, Lynchburg, VA 24506, in support of financial literacy, a cause he championed. Please indicate that the donation is being made in honor of Dick Williams, and that it should be used for credit unions' financial literacy work. [more]

BayPort Credit Union Announces Teacher Grants

BayPort Credit Union is providing local teachers with 25 grant opportunities up to $300 each to fund innovative financial literacy programs in the classroom. It is the first year BayPort is offering the grants.  BayPort teacher grants support elementary, middle and high school, public, private and home-schools. [more]

Northwest Federal Credit Union Foundation Supports Children's Miracle Network

Northwest Federal Credit Union Foundation (NWFCU Foundation) supported the Children’s Miracle Network through the Credit Union Cherry Blossom Ten Mile Run® on April 11 by providing runners, volunteers and a $6,500 donation. Gerrianne Burks, president/CEO of NWFCU and chairman of the NWFCU Foundation Board; Linda Rogus, NWFCU Foundation executive director, and other NWFCU executive staff presented the $6,500 check to Children’s Miracle Network. Reigning 2010 Miss America Caressa Cameron, National Goodwill Ambassador for Children’s Miracle Network, was on hand to receive the donation. [more]

Bronco FCU Relay for Life Team Raises $1,600 During Co-Ed Softball Tourney

For more than 11 years, the Bronco Federal Credit Union Greenbacks have been giving of their time to make the Franklin/Southampton County Relay for Life a success. Relay for Life is a fundraiser for the American Cancer Society. The Greenbacks team recently sponsored a Softball Tournament and Homerun Derby that raised $1,642 toward their fundraising goal of $5,000. [more] 

DuPont Community CU Chosen Valley's Favorite 'Bank,' Mortgage Company

DuPont Community Credit Union (DCCU) was chosen the Shenandoah Valley’s Favorite Bank for the seventh year, and for the second time was chosen the Favorite Mortgage Company by the readers of the Waynesboro News Virginian. The results were announced recently by the newspaper. [more]

Chapter News

Tidewater Chapter Meets Sept. 9

VACORP Federal Credit Union President/CEO Don Chapman and Senior Vice President Harry Simmerman will present a program on credit union investment opportunities and strategies at the Tidewater Chapter's Sept. 9 meeting. They'll also discuss the corporate credit union crisis and the future of VACORP.

Location: Springhill Suites (Norfolk). Time: 6 p.m. social; 6:30 p.m. dinner and meeting. To register, contact Terry Lamm at tlamm@beachmunicipal.org or 757.416.6175. Deadline is Sept. 8.  
[meeting flyer and registration information] (pdf, 16kb)

NoVa Chapter Meets Sept. 9; Learn to Avoid an HR Crisis

Jeff Larroca, an attorney with Eckert Seamans, will present a program titled, "The Top 10 Things You Need to Know in Order to Avoid an HR Crisis," at the NoVa Chapter's Sept. 9 meeting. Location: Fair Oaks Marriott (11787 Lee Jackson Memorial Highway, Fairfax). Time: 5:30 p.m. networking; 6 p.m. meeting; 6:30 p.m. dinner; and 7:30 p.m. speaker. Cost: $35 per person. To register, contact John Harwell at Apple Federal Credit Union, no later than Sept. 6, at jharwell@applefcu.org. [more]

Southside Plans Sept. 10 Golf Tourney for CMN, VACUPAC

The Southside Chapter will hold its 4th Annual Golf Tournament on Sept. 10 to benefit Children's Miracle Network and the Virginia Credit Union Political Action Committee (VACUPAC). Location: Cardinal Golf Course, Fort Lee. For entry details and sponsorship opportunities, contact Pam Kenney at 804.452.0736, ext. 181 or e-mail pkenney@fortleecu.org.
[registration information] (pdf, 669kb)

Lynchburg Chapter Meets Sept. 14

The Lynchburg Chapter's Sept. 14 meeting will feature a program on employee burnout. Location: Timberlake United Methodist Church. Time: 6 p.m. social; 6:30 p.m. dinner; and 7 p.m. meeting. Cost: $15 per person. Reservations: Please call Vickie Smith at 455.1116 or e-mail her at vsmith@mybcu.org by Sept. 8. [more] (Word document, 93kb)

Hampton Roads Chapter Workshop Sept. 16

The Hampton Roads Chapter will host its Annual Workshop on Sept. 16. Education sessions for the Workshop will include Bank Secrecy Act training (qualifies as your annual BSA training requirement); "Coopetition;" fraud prevention/scams; vendor due diligence; and ACH risk assessment. Location: Omni Hotel (Newport News). Time: Vendor exhibits - 5 p.m.; 1st education session - 6:15 p.m.; reception - 7 p.m.; 2nd education session - 7:30 p.m. Deadline for registration is Sept. 2. [more] 

Roanoke Valley Chapter Schedules Sept. 21 Meeting

Dewey Reynolds, Chairman of the League's Governmental Affairs Committee will be discussing the political scene and the League’s legislative agenda at the Roanoke Valley Chapter's Sept. 21 meeting.

Your League's Kristen Tatlock will also offer an update on upcoming compliance requirements, including the Secure and Fair Enforcement for Mortgage Licensing Act, the Fair Credit Reporting Act, and FACTA credit score disclosures. Location: Salem Civic Center. Time: 6 p.m. social; 6:30 p.m. dinner; and 7 p.m. program. To register: Please respond by noon, Sept. 17, with names of attendees to Shana Meadows by e-mail to smeadows@memberonefcu.com or by fax at 540.982.8257.

Central Virginia Chapter Meets Sept. 23

Alan Williams, Regional Manager with DuPont Community Credit Union, will offer a presentation on staff development and coaching at the Central Virginia Chapter's Sept. 23 meeting. Location: Comfort Inn Monticello (2097 Inn Drive, Charlottesville, 22911. Time: 6:30 p.m. dinner; 7 p.m. program. To register, contact Tim Schmoyer at tim.schmoyer@pvfcu.org by noon, Sept. 20.
[meeting flyer]  (pdf, 481kb)

Richmond Chapter Seeks Volunteers for Shriner's Pork Festival

The Richmond Chapter of Credit Unions has been asked once again to provide 92 volunteers for the ACCA Shriner's Central Virginia Pork Festival on Saturday, Oct. 23, at the Richmond International Raceway (RIR). Volunteers will be working various beverage booths that afternoon. 

This is a great opportunity to get together, promote credit unions, and help the Shriners put on another successful Pork Festival, which supports Shriner hospitals for children.  All volunteers will gain free admission into the Pork Festival. Volunteer shifts will be as follows:  1st Shift – 3:30 p.m.-6 p.m.; and 2nd Shift – 6 p.m.-8 p.m.
[download volunteer form] (Word document, 51kb)

Financial Education News

Treasury Seeks Comment on Financial Education Direction

The U.S. government is working to develop a list of financial education core competencies to further efforts to increase the financial literacy of the country's population. The Treasury Department, as lead agency of the Financial Literacy and Education Commission (FLEC), is seeking public comment on the list. [more]

Want to Run Your Own Financial Education Reality Store? Sept. 10 Workshop Teaches You How!

Virginia Cooperative Extension and Virginia's credit unions are sponsoring a half-day workshop that will teach you how to run a reality store simulation. Reality Store events enable high school students to learn real-world lessons on budgeting and personal finance. Date: Sept. 10. Time: 9 a.m. until noon.

Location: Virginia Beach Municipal Center, Building 14. To register, contact Diana Counts at 757.333.7787, ext. 1344 or cumarketing@beachmunicipal.org. 
[view program flyer] (pdf, 276kb)

Free RealMoney Training Offered in September

Free RealMoney training workshops are being offered Sept. 29 in Northern Virginia and Sept. 30 in the Hampton Roads area. The NoVa area event is being offered at Northwest Federal Credit Union in Herndon. The Hampton Roads area event will be held at Langley Federal Credit Union in Newport News. 

The workshops are free and provide an overview of the new economics and personal finance requirement for schools, content training, educational resources, and includes free lunch and parking. Seating is limited, so it is important that you register NOW if you are interested in attending. 
[NoVa-Area Event] (pdf, 3.1MB)
[Hampton Roads Area Event] (pdf, 342kb)

News About The Competition

FDIC 2Q Report Shows Swing to Profit, But Loan Demand Remains Weak

Despite another encouraging quarter for banks, highlighted by relatively high profits and lower loan-loss reserves, Federal Deposit Insurance Corp. officials said uncertainty about the broader economy is keeping lending depressed.

The FDIC's second-quarter earnings report showed that the industry's cautious approach is leading to profits, if not necessarily loan growth. Institutions steadily reduced delinquencies and loss provisions as they worked through problem loans, and margins benefited from lower funding costs. But even though banks earned more than $21 billion, a 16% increase from three months earlier, assets fell for the fifth time in six quarters and loan balances fell in all major categories. (American Banker Online, Sept. 1)