Members Share $9.5M Dividend Following Merger
HOUSTON-About 7,300 Members of El Paso Corp FCU, which was forced into a merger because of the last year's takeover of its corporate sponsor, will share in a $9.5-million merger dividend after the combination of the $125-million CU with First Service CU. El Paso Corp. FCU merged with the $335-million First Service on April 1 and the terms of the agreement included giving back the excess capital that the member-owners created over El Paso Corp. FCU's lifetime.
El Paso Corp. FCU began searching for a merger mate after its corporate sponsor was acquired in the $21-billion takeover by pipeline giant Kinder Morgan. The board decided the best course would be combining with Houston-based First Service. At March 31, as the merger was being completed, El Paso Corp. FCU had $21.6 million in capital, almost 18%. The $9.5-million payout would have left it with more than $12 million in capital, about 10%.
The combined First Service CU will have approximately $470 million in assets.
2 Credit Unions Launch Ads Touting 'Better Banking'
SAN ANTONIO-Security Service FCU has launched two bilingual TV commercials promoting its services as "how banking's supposed to feel." The campaigns-spanning eight TV spots, including one for the Hispanic market, radio and out-of-home elements, were designed by Austin agency Greatest Common Factory. The TV spots are rotating in Texas, Colorado and Utah, where the $7-billion SSFCU operates 70 branches.
The spots in the first TV campaign illustrate what service means and feels like to Security Service members, with a member service rep saying, "Service isn't something you hear. It's something you feel."
Meanwhile, in New York, Nassau Educators FCU has unveiled a new TV commercial to mark its new branding campaign called "Better banking because we're not a bank." The commercial was produced by the $2-billion CU's newly hired Madison Avenue ad agency, DeVito/Verdi. The commercial touches on the charmed life of bankers-despite their unpopular practices. It shows a group of banking elders sitting around a large boardroom table, sipping from cut-glass crystal while exchanging knowing winks and smirks. An Italian aria provides a haunting soundtrack as these bankers presumably are discussing various ways to maximize profits.
"You gotta hand it to them," the spot begins, "Banks offer high interest loans and have no shortage of takers. They get away with charging fees for most everything."
The spot concludes with the admonition: "Yeah, you gotta hand it to them...but you don't have to hand them your money."
CFPB Issues Remittance Rule
WASHINGTON-The Consumer Financial Protection Bureau (CFPB) has issued a final rule on international remittances. The rule, which goes into effect Oct. 28, creates consumer protection rules for remittance transfers sent by consumers in the U.S. to individuals and businesses in foreign countries. It requires remittance transfer providers to disclose certain fees and taxes, as well as the exchange rate that will apply to the transfer. It also provides consumers with error resolution and cancellation rights. For info; www.cfpb.gov.
Scammers Turn To Super Glue
SPOKANE, Wash.-Thieves are using a new method to steal card information-gluing the cancel button on ATM transactions. Officials at Numerica CU said someone apparently used super glue to block the cancel button on one of its ATMs, forcing members to leave their card in the machine while they go to get help-leaving an opportunity for the scammer to steal the card or cash already transacted.
NCUA-Run Texans Reports $5.2M Net
RICHARDSON, Texas-NCUA reported that Texans CU had Q1 net income of $5.2 million, but even with five straight quarters of profitability the one-time $2-billion CU run by NCUA the past two years still has a $15-million hole. The one-time Texas Instruments employees' credit union continues to be propped up by a $60-million emergency loan from NCUA, which it is able to count as net worth.
CUNA Mutual, Union Reach Deal
MADISON, Wis.-CUNA Mutual Group and its employees union, the Office and Professional Employees International Union Local 39, have reached an agreement on a new three-year labor deal that will give the union's 700 Madison-based workers 3% raises for each of the years, as well as ratification bonuses.
