CUs Invest $10.2M In NCUF's Insured CDs
WASHINGTON-In fewer than 14 business days since it launched federally insured CDs, the National CU Foundation (NCUF) credit unions had invested $10.2 million into the new offerings as part of the Community Investment Fund.
"Forty-two credit unions have more than tripled their dividends by converting from CIF share accounts to CDs," the NCUF said. "By taking this action, these credit unions have also secured a full federal guarantee for two years."
NCUA is insuring all principal and quarterly fixed-rate dividend payments on two-year CIF CDs. Nine CUs have also become first-time CIF investors, with some taking terms to three years. CIF allows members of corporate CUs to earn dividends while donating to credit union charitable organizations - without creating an expense on the donors' balance sheets. Moreover, noted NCUF, new deposits in CIF help reduce credit unions' expenses for NCUA's Corporate Stabilization Program. Half of CIF dividends are donated to the Foundation.
For info: www.ncuf.coop
Ousted Incumbents Get Re-vote In Board Election
JOHNSTOWN, Penn.-Three long-time directors of USSCO Johnstown FCU who lost their bid for reelection last month will get another chance because of a quirk in the credit union's bylaws.
The three incumbents were defeated May 14 after nominations from the floor at the annual meeting created the first election contests in the former U.S. Steel credit union's 51-year history. But a requirement to notify all credit union members fell short because about 300 of the 13,000 members have account balances below the credit union threshold to draw interest and so were not notified of the meeting.
"What could we do, six votes separated the two slates," said Guy Messick, attorney for the $100-million credit union. He said 305 eligible members had not been notified of the meeting, and the bylaws required that all eligible members be notified.
Credit union leadership notified members in late May that the election was nullified and a new annual meeting would be scheduled.
The victorious newcomers were prompted to run at the meeting after the removal of Brian Riffle as president and CEO, who was forced out last year after examiners found $3 million of member business loans of questionable quality on the books. Most of the loans were eventually paid in full
CU Outbids Banks For County Deposit
ROLLA, Mo.-Mid Missouri CU won the bidding against three banks to a six-month $225,000 CD being placed by Phelps County.
The credit union's offer of 2.01 APR bettered the rates offered by Citizens Bank of Newburg (0.85%); Phelps County Bank (1.214%); and U.S. Bank (0.254%).
The credit union also offered a higher rate than the banks for a 12-month CD, 2.32%.
EFFCU Opens 7 In-Store Branches
BEAUMONT, Texas-Education First FCU continued its year-long building spree with plans for a new training facility-along with the seven supermarket branches opened over the past 12 months.
The $270- million credit union obtained a permit from the city this week to build a 5,000 square-foot training facility at its main office. Work on the project began this week and is scheduled to be completed by year-end.
The credit union has also added seven branches - all of them inside supermarkets - in the last year as well. They are in Kroger in Beaumont and in Orange; and in Brookshire Bros. markets in Vidor, Kountze, Silsbee, Jasper and Woodville.
The new branches have added 30 employees, bringing the credit union's total head count to just under 100.
Agencies Issue FAQs on Red Flags
WASHINGTON-Six federal agencies issued a set of frequently asked questions (FAQs) on the Red Flag Rules to help financial institutions, creditors, users of consumer reports, and issuers of credit cards and debit cards comply with federal regulations on identity theft and discrepancies in changes of address.
The new Red Flag guidance was issued jointly by the Federal Reserve, FDIC, NCUA, the Office of the Comptroller and Office of Thrift Supervision.
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