One of the longer-standing efforts to assist small credit unions turns 10 this year. During its life it has witnessed the definition of "small" grow by about $2 million each year, while its primary focus has evolved from getting small CU reps to more conferences to helping small credit unions remain contemporary with technology.
The California-Nevada league's Shapiro Group is dedicated to assisting small credit unions, which for this year is defined as any operation under $23 million in assets. Some 270 credit unions in the two states fall under that umbrella.
Kim Bannan, the league's vice president for credit union development, told The Credit Union Journal the program represents a "mutual sharing of resources."
The Shapiro Group oversees six grant programs, the largest of which helps credit unions make technology-related purchases.
Other grant programs help CUs purchase asset-liability management software, complete or update their policies, hold strategic planning sessions, complete Project Differentiation statements, and finally, defray recruitment expenses connected to finding and hiring a new CEO or filling some other upper management position.
Three Sessions Per Year
Rita Fillingane, the Shapiro Group project manager, said the program also puts together special educational events designed specifically for smaller CUs. The league offers these training sessions three times a year at its three major events, she said.
"When Y2K was an issue, we helped credit unions with their Y2K preparation," explained Fillingane. "We also offer special sessions on asset-liability management and technology issues."
Qualification for the program is defined by the median asset level of the members of the California League. According to Bannan, while this year's threshold is $23 million, when she first got involved with the program seven years ago, that figure was $11.8 million.
"The figure has gone up about $2 million each year," she said. "Next year it should be $25 million."
Money for the grant programs comes from donations from CUs throughout California and Nevada. "Even small credit unions contribute," said Fillingane. Through Sept. 15, the League has collected about $61,000 in donations this year, Bannan said.
Helping Small CUs Deal With Absences
"In some cases, larger credit unions donate desks, file cabinets or computers," said Bannan. "The next step is management: if a small credit union's CEO is out on a medical leave, we help find a replacement."
The Shapiro Group launched its grant program in January 2000. Through Sept. 15, 71 technology grants for a total of $141,419 have been approved, Bannan said. A total of $188,471 in all grants have been approved, with about $155,000 funded.
The Shapiro Group got its start when league CEO Dave Chatfield approached Leo Shapiro, the "father" of the California credit union community and the league, with an idea of helping smaller CUs. "Mr. Shapiro took out his checkbook and wrote the first donation," she said. Shapiro has since died.
Initially, the Shapiro Group focused on increasing the involvement of smaller CUs, allowing them to participate in conferences and educational events, Fillingane said.
For example, if attending a California League meeting would leave a small CU understaffed, the Shapiro Group finds a temporary replacement.
"It took time to get the word out there," said Fillingane. "We use our newsletter, e-mail, and our magazine, CU Digest, to let them know assistance is available."
Shapiro Advocates
The California-Nevada League is divided into 27 chapters in California, plus two in Nevada. Bannan said each chapter has a "Shapiro advocate."
"These people put a human face on the league," Bannan said. "I communicate with them via e-mail throughout the year, that's how we let people know that furniture and equipment are available."
Some of the Shapiro Group's successes include:
* Two years ago, Coast-Tel Federal Credit Union in Salinas, Calif., lost the use of all but one of its six teller terminals due to a catastrophic equipment failure. Less than 24 hours later, thanks to a donation of spare computers from Technology Credit Union in San Jose, Coast-Tel FCU was back up and running.
"The larger credit union had acquired the computers through a merger," said Bannan. "The terminals were an updated version of the same terminal Coast-Tel was using before."
* A very small CU-so small it was still using ledger cards- had its CEO go out on medical leave due to unexpected surgery. Bannan said the Shapiro Group found a replacement manager for six weeks.
"That was not an easy task, because most people had forgotten how to use ledger cards," she said.
* Another CU was going to be without its CEO for a month, and the Shapiro Group managed to cover the position through a team effort by two larger credit unions in the same area.
"Each credit union could spare a person only for part of the time, so we coordinated the three credit unions so they could work it out," said Bannan.
Assistance For The Strugglers
"We also work with credit unions that are struggling to survive," Bannan said. "One time, a credit union had gone months without reconciling its accounts. We brought someone in to reconcile all of its statements."
Added Fillingane: "We recognize the time these credit unions do not have. We make communications quick and easy-our newsletter is one page, front and back, so they can read it fast. But we always refer them to a source for further information."
Bannan said the Shapiro Group also arranges for pricing discounts, such as for software purchase, for its CUs.
"We want to help them stretch their resources and time, which are so precious," she said. "We let them have access to products and services they wouldn't normally have access to."
