NCUA OKs $11.5 Million
Increase For 2012 Budget
ALEXANDRIA, Va.-The NCUA Board last week approved an $11.5-million increase for its 2012 budget, $6.1 million of which is to pay for the new contract with its examiners' union. The budget is a 5.1% increase over the agency's 2011 budget, which is up 35% over the past three years. The 2012 budget includes funds to hire 33 personnel, most of whom will be examiners.
1st Financial To Offer
One-Day-Only Auto Loan Sale
WENTZVILLE, Mo.-1st Financial FCU here will offer a special 60-month auto loan with rates as low as 1.99% APR on "Black Friday" this week. The loan is available for one day only on new and used vehicles 2009 and newer with less than 50,000 miles.
CFPB Begins Looking Into
Practices On Student Loans
WASHINGTON-The new Consumer Financial Protection Bureau said last week it is beginning to survey private student lenders, a rapidly growing industry since the termination of the federally guaranteed student loan program last year. The agency said in a release that "too little is known" about college student loans made by private lenders as opposed to those that go through programs run by the government. The agency has put out a request for information on industry practices such as loan underwriting criteria, repayment terms and what efforts are made to prevent defaults.
Corporate Merger Moves Ahead
MIDDLETOWN, Penn.-Members of Mid-Atlantic Corporate and VACORP, Lynchburg, Va., have approved a merger. The merged institution will have approximately $4 billion in assets, with $130 million in Perpetual Contributed Capital (PCC) and $10 million in Nonperpetual Capital Accounts (NCA). Mid-Atlantic projected that following the completed merger it will have a retained earnings ratio of 0.55%, leverage ratio of 4.73%, Tier 1 risk-weighted capital ratio of 23.8%, and total risk-weighted capital ratio of 25.21%. Combined, the corporate will have more than 800 members.
Silver State Schools To Close 4 Branches
LAS VEGAS-The $665-million Silver State Schools CU last week said it will continue to trim expenses by closing three more of its 12 Las Vegas branches by mid-January, bringing to 11 the total number of branches shuttered by the one-time $1-billion CU since the onset of its financial troubles in 2009. Employees at the three branches will be offered the opportunity to relocate to other branches with staff openings. Silver State reported a $2.7-million loss for the third quarter and a $5.5-million loss for the year.
Air Academy Lays Off 19 Employees
COLORADO SPRINGS, Colo.-The $420-million Air Academy FCU laid off 19 employees last week as a result of a slowdown in home lending and a restructuring program aimed at offering services online that has resulted in the closure of four branches. Air Academy does not expect any additional layoffs. AAFCU lost $78,000 for the first three quarters of 2011 due to an $886,427 charge for the corporate assessment.
Smith Named CUES Director of Year
MADISON, Wis.-CUES has named Charles Smith, chairman of First New York FCU, Albany, N.Y., as its Director of the Year. Smith will be honored during CUES' Directors Conference Dec. 5-8 in Las Vegas. Smith first joined the supervisory committee in 1978 and the board in 1980, and has held positions on other CU associations, as well. In addition, five other directors will be inducted into the CUES Volunteer Hall of Fame: Ertis Blake of Communications & Other Workers of Jamaica Co-operative CU; Eric Jones of Elevations CU; John C. Lay of Fairfax County FCU; Donald L. Lee of IBM Southeast EFCU, and Donald E. Weaver of Indiana University CU.
HARP Webinars Available From Fannie
WASHINGTON-Fannie Mae said it will host four webinars to update mortgage servicers on developments in the Home Affordable Refinance Program (HARP), which is expanding to help more underwater borrowers who could benefit from refinancing their home.
For info: fanniemae.com.
Federation, OFN In Partnership
MINNEAPOLIS-The National Federation of Community Development Credit Unions said last week it has entered into a joint membership program with the Opportunity Finance Network (OFN) that will include reciprocal discounts on dues to institutions that join organizations and collaborations in other areas, as well.
P2B Solution To Be Called 'V'
SAN FRANCISCO-Visa has unveiled the brand name for its digital wallet solution: "V." In a statement Visa said its goal is to go beyond standard P2P solutions and that its focus remains on retail payments via financial institutions. One analyst noted Visa's other goal with the new name is to have it become a verb, as in "Just V it to me."
CEO Resigns In Hawaii
HONOLULU - The president of Hawaii State FCU has resigned, the latest fall-out of governance turmoil at the state's second largest credit union that claimed the chairman of the board earlier this year. In a resignation letter dated Nov. 8, Deborah Kim, who has worked at the $1.2-billion HSFCU for almost 20 years, cited what she called unprofessional treatment and retaliation directed at her. "I have worked in the best interest of the credit union and its members for 19 years, only to end my tenure with your volunteer officials spitting in my face," Kim wrote. "I deserved better." SVP Rachael Sasaki is now acting president.
Kim's resignation follows April's ouster during elections of board chairman Beverly Ing Lee over a scandal involving lavish spending by directors. The scandal surrounded the board's use of Chairman Lee's travel agency to arrange official trips, frequently at ticket prices higher than what the airlines offered directly. Benefits received by board members included up to seven off-island trips per year and certain reimbursed costs for board spouses and companions, as well as a corporate credit card for each director with a limit of $5,000 per card.
The 75-year-old credit union reported positive net income of more than $2 million for the first three quarters of the year.
