MECU Plans To Buy Local Mutual Savings Bank
BALTIMORE--The $1.2-billion Muncipal Employees CU (MECU) said last week it is acquiring $61-million Advance Bank, the fourth purchase of a bank by a CU in the past 18 months. Advance, which has two branches, is a mutual. The acquisition is subject to regualtory review and is to close in Q4.
Standards Being Drafted On Diversity In Workplace
ALEXANDRIA, Va.-NCUA and the other financial regulators are drafting standards to evaluate workforce diversity at credit unions and banks in an effort to gauge institutions' efforts to hire women and minorities. The agencies plan to develop a uniform standard to assess each institution's diversity while taking into consideration differences such as size, capability, and history, according to a report issued by the CFPB's Office of Minority and Women Inclusion last week.
The Dodd-Frank Act mandates the creation of an Office of Minority and Women Inclusion in each regulator and requires the offices to develop standards for encouraging diversity, promoting women- and minority-owned contractors and assessing regulated FIs on their diversity efforts.
2013 Assessments Estimated To Be At 8-11 BPs, NCUA Says
ALEXANDRIA, Va.-NCUA last week reduced its projections for future corporate credit union assessments and estimated 2013's assessments will be between eight and 11 basis points, or $800 million to $1.1 billion. The agency said the remaining assessments will be between $1.6 billion and $3.9 billion, down from between $1.9 billion and $4.8 billion six months ago, as a result of an improvement in the economy, which affects the assets in the estates of the five failed corporates.
So far, federally insured credit unions have paid about $10 billion as a result of the failure of five corporates. Last year, NCUA also transferred $280 million from the National CU Share Insurance Fund to help pay stabilization costs. Using NCUA's figures, the total cost of the corporate stabilization will be between $11.6 billion and $14.8 billion.
Patent Suits To Be Consolidated
WILMINGTON, Del.-A special tribunal has ejected a request by a patent company and agreed to consolidate as many as 28 infringement suits brought against credit unions and banks, a move expected to reduce the temptation to settle the suits with expensive licenses.
The ruling by the Judicial Panel on Multidistrict Litigation, "Makes it easier for these defendants to resist signing license deals," said Bob Stier, a Maine lawyer representing eight community banks targeted by Automated Transactions LLC, a New York patent owner.
The company has filed more than 50 civil suits over the past two years claiming banks and credit unions have infringed on its patents to have regular ATMs conduct additional tasks, such as offering airline tickets, movie reservations or sell retail goods.
Credit unions that are currently defendants include Dannemora FCU, Buffalo Service CU, Buffalo Community FCU, Heritage Family CU and New England FCU. One other credit union being sued by Automated Transactions, Erie Metro CU, agreed to a license as part of a settlement last month.
According to Stier, more than 140 credit unions and banks have already agreed to license the technology. "This has been a real money machine for the patent troll," Stier told Credit Union Journal.
Five CUs Win FHLB Grants
SAN FRANCISCO-The Federal Home Loan Bank of San Francisco awarded $10 million in affordable-housing grants to 27 members, including $930,000 to five credit unions.
Meriwest Credit Union in San Jose, Calif. received $300,000 in WISH and $30,000 in IDEA funds; Travis CU got $250,000 in WISH and $15,000 in IDEA money; CoastHills FCU $60,000 in WISH and $15,000 IDEA; Yolo FCU $100,000 in WISH funds; and Star One CU $60,000 in WISH money.
WISH and IDEA grants match $3 for every $1 contributed by the homebuyer, up to a maximum grant of $15,000, and are made available through participating FHLB members to households earning up to 80% of area median income.
News Briefs
Robbers Abduct Teller At Home
FORT WAYNE, Ind.--A teller at Pinnacle Credit Union was abducted after she left work last week and then held hostage in her home before being forced to help two men rob the credit union later on the same night.
The teller arrived home about 5:15 p.m. when a man with a gun forced her inside her house and bound her hands, according to police. The man told her that she would wait with him inside the home until dark, when they would drive to the credit union so he could get some money. A while later a relative of the woman arrived at the home, police said, and the abductor tied the relative's hands, too, and held them inside the home.
A second man arrived later at the home to join the first robber.
At about 9 p.m. the two men drove the woman and her relative to the credit union and forced the teller to open the branch, where they proceded to rifle the vault, according to police. After stealing an unknown amount of cash, bothmen fled from the scene.
Police responsed to an alarm at the credit union around 9:25 p.m. and found the teller.
Central Corp, Alloya To Merge
SOUTHFEILD, Mich.-Members of $1.4-billion Central Corporate CU have voted in favor of merging with $1.4-billion Alloya Corporate FCU, Warrenville, Ill. Central Corporate has approximately 300 member credit unions. The merged institution will conduct business in 10 core states. The effective date of the merger is April 30.
TopLine In Educational Study
MAPLE GROVE, Minn.-TopLine FCU has joined Hennepin Technical College and Brooklyn Park Campus in a seven-year study funded by the U.S. Department of Education tracking students' academic performance, college preparation, enrollment and achievement.
The project, known as GEAR UP-for Gaining Early Awareness & Readiness for Undergraduate Programs-will follow seventh graders at two local middle schools who just started a college preparatory program. It will follow them all the way through high school and into the first year of college.
TopLine said it will help GEAR UP students and their families learn more about post-secondary education options, as well as preparation and financing.
The goal of the project is to increase the number of students who are academically and financially prepared for post-secondary programs.
Members, Branches Are Transfered
CUDAHY, Wis.-The $120-million Prime Financial Credit Union last week said it plans to transfer its branch in Two Rivers, Wis., along with members and member accounts, to Community First Credit Union of Appleton. Branch employees and 600 members from the Two Rivers area will become part of $1.6-billion CFCU.
