New York Legislature OKs New Hybrid Charters
ALBANY, N.Y.-The state legislature last week passed a bill that will allow New York's 20 state-chartered credit unions to combine multiple group charters with community fields of membership in a hybrid charter.
The bill also expands community investment options for state charters by allowing them to increase investments in their communities and programs aimed at community reinvestment-including projects of state corporations that work with housing projects, slum clearance corporations, small business investment corporations and urban development corporations.
The bill will be sent to Gov. Andrew Cuomo who is expected to sign it into law.
The state legislature also passed a bill allowing credit unions to create a prized-linked savings contest, similar to the ones being introduced in Michigan, North Carolina, Washington and Nebraska.
CU Message To Be Visible In Times Squre This Week
NEW YORK-CUNA will be broadcasting a video in Times Square for its "Don't Tax My Credit Union" ad campaign this week in conjunction with its annual America's Credit Union Conference here. The full-color ad will run on the 26-foot-wide by 20-foot-high CBS video billboard where CUNA has been airing a 15-second spot touting the benefits of credit unions since April. The ad directs viewers to visit the asmarterchoice.org website to learn more about credit unions.
CUs Capture 14% Of Auto Loans
WASHINGTON-DU.S. credit unions captured 14.3% of all U.S. auto financing during the first quarter of 2013, slightly below the 14.6% captured during the same period one year earlier, according to a Callahan & Associates analysis of AutoCount data. Overall consumer loan originations increased 10.9% compared with Q1 2012 to $43.5 billion, with auto loans accounting for 30% of the total credit union loans outstanding as of March, the company said. New auto loans were up 10.6%, while loans for used cars were up 8.2%.
GESA CU CEO, Lethlean, Departs
RICHLAND, Wash.-Gesa CU announced the departure of Christina Lethlean, president and CEO of the $1.3-billion credit union the past six years, and the appointment of Chief Sales Officer Don Miller as interim chief. The credit union, which has strong financials, said Lethlean will leave July 5 and her decision is "centered around her desire to seek new challenges." Lethlean has headed Gesa since April 2007. Before that, she held senior management positions at Xceed Financial FCU in El Segundo, Calif., and Christian Community CU in San Dimas, Calif.
Gesa reported a $3.7 million net for the first quarter of 2012 and a $15.9 million net for 2012. It had net worth of almost 9% at March 31.
PEF FCU In Conservatorship
HIGHLAND HEIGHTS, Ohio-NCUA has placed PEF FCU here in conservatorship. Founded originally as the credit union for employees of Picker X-Ray, the agency will work to resolve the troubles at the $32-million credit union.
The credit union reported a $3.6 million loss for 2012 and a loss of $50,000 for the first quarter, as its net worth slid to just 4.3%. PEF FCU is the third credit union taken over by NCUA so far in 2013.
MSUFCU, University In Deal
EAST LANSING, Mich.-Michigan State University FCU has signed an expanded financial deal with Oakland University that will provide grants and scholarships, on-campus ATMs and branches, and marketing deals. The 10-year contract, valued at $5 million, calls for the credit union to establish an Oakland University Credit Union trade name. It will help support a $25,000 student scholarship, $25,000 Dean's Choice Grant Program, a variety of signature sponsorships, in-kind marketing, ATM locations on campus, an operating branch in the Oakland Center, financial education and more.
Corrections & CLARIFICATIONS
An article in the June 17 issue incorrectly reported the rent paid by NIH FCU for its headquarters space. The correct figure is $1 million annually.
