ALBANY, N.Y.- Taking advantage of a new federal law, SEFCU will introduce check cashing and money orders for non-members next month. The credit union, formerly State Employees FCU, will charge a fee of 1% of the check and $1 per money order, about half the going-rate for these services. The program, called Check Advantage, will be available at two SEFCU branches. The service to non-members with a credit union's field of membership was allowed by last year's regulatory relief bill.
Bay State CU Makes 2nd Try At Bank Charter
BOSTON-Postal Community CU has initiated a second attempt to convert to a mutual savings bank and submitted disclosures on the proposed bank switch to NCUA for its approval. The $135- million credit union tried before, but the effort was denied by state regulators, who were supported by the courts. Because there was no state law enabling a credit union to convert to bank, Postal Community sought to convert to a federally chartered savings bank, but the regulator quashed the bid because of no provision enabling the unusual charter switch. So at the behest of the credit union, the Massachusetts legislature passed law earlier this year allowing state chartered credit unions to convert to a state chartered mutual savings bank.
Directors Build Retirement Nest Eggs on CU-Convert
CHULA VISTA, CALIF.- Once-volunteer directors of First PacTrust Bancorp, formerly known as Pacific Trust FCU, had got healthy stock awards in 2006, pushing up their annual compensation for work they once performed for free. The bank directors, who converted the credit union to mutual savings bank in 2000, earned an average of $77,000 in board fees and stock last year, according to a filing yesterday with the Securities and Exchange Commission. Topping the list was Alvin Majors, former comptroller at the credit union sponsor Rohr, Inc., who has served on the board since 1985. The 66-year-old Majors, chairman of the board, earned $81,513 last year, including $62,601 in stock awards, $3,046 in dividends on that stock, and $15,867 in directors' fees. Other non-management directors and their compensation are: Kenneth Scholz ($77,647); Francis Burke ($76,180); Donald Purdy ($76,713) and Donald Whiteacre ($75,047). Burke, 67, and Purdy, 75, are also Rohr retirees.
Each of the former volunteer credit union directors have built up significant stock holdings in the ex-credit union, with Majors holding $2 million in First PacTrust shares; Scholz $1.9 million; Burke $1.9 million; Purdy $1.9 million and Whiteacre $1.7 million. CEO Hans Ganz, who engineered the credit union-to-bank shift, has accumulated 211,472 shares valued at $5.6 million.
3 CUs Sign for WebClose Service
ELGIN, ILL.- Lending Solutions said Associated Healthcare CU, KC Police CU and Eastern New York FCU have contracted for its WebClose service. WebClose is an interactive online service designed to optimize the online lending process. After approval of an online loan, an additional window appears on the member's screen and invites the member for an online chat to confirm the rate, terms and payment of the loan. The service also enables staff members to cross-sell other products and services to the member.
Manager Charged in Embezzlement
SHREVEPORT, LA.- A branch manager of Shreveport FCU was arrested and charged with felony theft after confessing to stealing almost $300,000 from the credit union over a two-year period. Connie White was arrested after the president Hellen Godfrey-Smith contacted police about discrepancies uncovered in an internal audit.
Inside Job Alleged in $38K Heist
ST. CHARLES, ILL.- A teller was charged with complicity in last year's armed robbery of $38,000 from Corporate America FCU here. Crystal Bass, 22, was arrested by FBI agents at her home after being charged by a federal grand jury of conspiracy with three others in the June 1 hold-up.
Montana CU Signs Advertising Deal
BILLINGS, MONT.-Valley FCU signed a 10-year, $80,000 agreement to put its logo and advertising messages at MetraPark, the local venue for sports events. It's logo will also appear on street signs surrounding the sports arena.
Corrections & Clarifications
In the March 19 edition of Credit Union Journal, Navy FCU's website was misprinted. It should be: www.navyfcu.org.
iDashboards' name was mispelled in the headline of that same story.
