Tax Exemptions One Target Of Deficit Reduction Study
WASHINGTON-A presidential panel appointed to provide strategies for reducing the federal deficit has included in its draft report a proposal to eliminate numerous tax exemptions, which in broad terms would include the federal corporate income tax. The draft report, however, does not list credit unions specifically. Overall, the report states, the tax exemptions result in $1.1 trillion in lost revenue to the federal government. The final report must still be agreed upon by its 18 members before it goes to the president.
Ore., Wash. Leagues' Merger Gets Members' Approval
FEDERAL WAY, Wash. and BEAVERTON, Ore.-Affiliated credit unions of the Credit Union Association of Oregon and the Washington Credit Union League last week voted in favor of a merger of the two leagues into the Northwest Credit Union Association, which will begin operations on Jan. 1, 2011. The Northwest Credit Union Association has introduced a new brand that seeks to pay homage to the association's northwest roots.
The merger follows a reduction in the number of CUs each state association services. In 1970, the WCUL represented 408 CUs; today it has 118 CU members. The CU Association of Oregion served a peak 265 CUs in 1970; today it has 85 CU members.
The merger comes at the same time the Arizona, Colorado and Wyoming leagues have announced a deal to merge.
Self-Help FCU Continues To Build Via Mergers In Calif.
OAKLAND, Calif.-The Department of Financial Institutions last week approved Self-Help FCU's acquisition of yet another troubled credit union, its fifth deal since its 2008 chartering.
The acquisition of 1st Pacific CU, a troubled, one-time $235-million CU in Vallejo, Calif., will give Self-Help FCU almost $300 million in assets in California.
The fast-growing CDCU start-up is the sister credit union of North Carolina's Self-Help CU, which are both affiliates of North Carolina's Center for Community Self-Help.
1st Pacific, which lost $5.6 million in the first three quarters and had net worth of just 3.8%, joins four other troubled CUs acquired by Self-Help since its 2008 chartering; People's Community CU in Oakland, Community Trust CU in Modesto, El Futuro CU in Porterville and Kern Central CU in Bakersfield.
CEOs Retiring, Moving To New Posts
SOUTH BEND, Ind.-A number of CUs have announced changes in CEOs. Richard Rice, who built Teachers CU into one of the most successful credit unions in the country over a 39-year career there, is retiring as president and CEO of the $2-billion credit union.
Rice will be succeeded by Paul Marsh, the CU's SVP-marketing and sales. In Baton Rouge, La., Susan Parry Leake is retiring after 26 years with La Capitol FCU, the past ten as president and CEO. Meanwhile, in Casa Grande, Ariz., First American CU has hired Rico Bautista, former president of GHS FCU in Binghamton, N.Y., as president and CEO of the $75-million credit union.
CO-OP, Texas CUL Expand Partnership
RANCHO CUCAMONGA, Calif.-CO-OP Financial Services and the Texas CU League last week announced a partnership to offer CO-OP Mobile and CO-OP My Deposit e-commerce solutions and CO-OP Member Center 24/7 call center support to Texas' CUs. "We have successfully participated in CO-OP Shared Branching for more than 18 years, so these new agreements are a natural extension of our business partnership with CO-OP Financial Services," said Dick Ensweiler, president of the Texas league.
Student CU Gets National Attention
WASHINGTON--U.S. Secretary of Education Arne Duncan, FDIC Chairwoman Sheila C. Bair and NCUA Chair Debbie Matz will visit T.C. Williams High School Main on Nov. 15 to announce a partnership agreement to promote financial education, financial access, and asset building among students and families.
They will also meet with students who have completed Money Smart for Young Adults program and operate the onsite credit union at T.C. Williams, and then hold a press conference with students and stakeholders. The goal of the partnership is to help more students learn the basics of handling their finances appropriately and develop habits that lead to strong financial futures, including saving.