KEARNY MESA, Calif. – North Island CU, the area’s biggest credit union, broke ground Friday on its new office building here, outside of the San Diego city limits. The six-story, 13,000 square-foot building will serve as the new headquarters for the $1.6 billion credit union. The building is being designed by San Diego-based H2A Architects and will include environmentally friendly construction by Swinerton Builders, also of San Diego. Occupancy is slated for late 2008. In preparation for the project, the credit union sold its current headquarters building in Chula Vista earlier this year for $27.4 million.

NEW ORLEANS – A new community center built by ASI FCU with credit union grant money will be named for Cliff Rosenthal, executive director of the National Federation of CDCUs and father of the community development credit union movement, officials announced here last week. Rosenthal helped organize assistance from the CDCU movement to assist the credit union’s non-profit arm, A Shared Initiative Inc., to buy the property and build a community center for residents of the city’s Upper Ninth Ward, one of the neighborhoods hit hardest by Hurricane Katrina. The Federation provided a $100,000 grant for the project, and also raised as much as $1 million from credit unions and private foundations to help rebuild low-income credit unions devastated by the massive storm of two years ago. As head of the Federation, Rosenthal has helped provide millions of dollars in grants and loans to CDCUs and was one of the founders of the U.S. Treasury’s Community Development Financial Institutions Fund, for which credit unions have played a key role. Rosenthal was also instrumental in the creation of a CDFI program for New York, approved by the state legislature last week. The Treasury’s CDFI Fund presented a $585,000 check last week to ASI FCU to help offset some of the $4 million of losses to the credit union caused by Katrina, and subsequently, Hurricane Rita. The Clifford N. Rosenthal Community Center will house a new branch of the credit union–the only regulated financial institution in the Upper Ninth Ward--and other community organizations, including Total Community Action, Weed and Seed, and NeighborWorks. The center will also house a café to teach local youth about entrepreneurship. The credit union’s non-profit has also purchased nine residential lots in the devastated neighborhood where it plans to build modular homes for sale as affordable housing.

PITTSFIELD, Mass. – Residents will no longer be feted with the milkshake-like ‘Fribble’ at the downtown building with its recognizable cupola, but will be offered a variety of loans, deposits products and other financial services by Greylock FCU, which took over the former Friendly’s ice cream shop here and turned it into a branch. Friendly, the east-coast chain based in nearby Wilbraham, closed the Elm Street shop in 2004 and last week the building was reopened as a branch of the $900 million credit union. The branch is one of two existing facilities being renovated for use by the area’s largest credit union, along with a former bank branch in Williamstown. To celebrate the opening of the new Friendly branch, Greylock will have a live radio remote broadcast, give away tickets to see the Boston Red Sox, and offer ice cream treats– a tribute to the branch’s heritage.

HARRISBURG , Pa. – Pennsylvania State Employees has always touted its ability to conduct the vast majority of its member business electronically, now it is calling on its members and potential members to ‘Kiss Your Branch Goodbye.’ The $2.5 billion credit union has long operated with a sparse number of branches–currently just three for its 325,000 members–but only recently began marketing that fact to the public. The credit union giant unveiled a new multi-media marketing campaign which is touting its ability on billboards, radio and tv to ‘gobranchless’. The campaign is supported by a website at gobranchless.com that explains the benefits of going electronic and the eligibility requirements for PSECU. ‘At PSECU, we're not about having a branch on every corner,’ touts the new campaign. ‘We're about giving our members account access wherever it's most convenient. Their living room. Their backyard. Their cell phone.’ Like few other credit unions, PSECU allows its members to conduct all of their financial services without ever going to a branch. Members can use an ATM, and if it isn’t free, are rebated the fees. They can pay bills online and check their accounts online or by phone, and can deposit their checks online. The advantages of branchless banking, according to the gobranchless campaign are: 24/7 access to funds; immediate availability of deposited money; free online bill payment and free ATM access.

ATLANTA – Richard Dorfman, a former investment banker with ABN Amro and a well-known figure among the Federal Home Loan banks, was named president and CEO of the FHLB Atlanta, the largest, by members, of the 12 FHLBs. Dorfman was head of agencies and mortgages at ABN Amro between 1997 and 2005, and since then has worked recently as a consultant to several FHLBs. Prior to joining ABN Amro he worked as a senior executive of Lehman brothers, including as head of originations for U.S. Treasury and agencies. Prior to becoming an investment bank, Dorfman worked as an attorney at the FDIC and the New York Bank for Savings. The Atlanta Bank serves more than 1,300 member institutions, including 135 credit unions, in several southeastern states and the District of Columbia.

EAST ST. LOUIS, Ill. – A man suspected of robbing Granite City Steel FCU Tuesday afternoon was caught later in the day waiting on a commuter bus to make his getaway. The suspect allegedly went into the credit union around 4:25 pm and implied he had a weapon, then made his getaway on a bike. The bike and the clothe apparently worn by the robber were found abandoned a few blocks from the credit union. An officer remembered seeing a man fitting the suspect’s description walking into the bus station, where he was found sitting on the bus. The suspect did not offer any resistance.

HONOLULU – HawaiiUSA FCU said its members are being solicited by several phone scams, including one which asks them to call a toll-free number with their account information. The automated message says they are with HawaiiUSA Federal Credit Union and are requesting to Renew On-Line Services . The recording asks the person to call 800-505-9478. The announcement says, You have called HawaiiUSA Federal Credit Union's billing and payment. Credit union officials are warning members and urging them not to provide personal information.

SCHENECTADY, N.Y. – Sunmark FCU announced yesterday it has signed with GTM Tech Valley Payroll to provide its small business members with payroll services. The deal comes after the $350 million credit union had GTM Tech convert its own payroll processing from a large national provider. GTM Tech is based in nearby Clifton Park, N.Y.

WASHINGTON – The Small Business Administration introduced a new guaranteed loan program Wednesday to help military veterans who own or want to start-up their own businesses. he Patriot Express program will guarantee up to 85% for loans up to $150,000, and up to 75% for loans between $150,000 and up to $500,000. The program is also open to spouses of veterans. he SBA’s other guaranteed loan programs cover 50% of the loan amount, up to a maximum of $350,000. SBA officials said the new loan program is aimed at helping those veterans returning from Afghanistan and Iraq and starting their own businesses, or those in the National Guard who had their businesses interrupted by call-ups for the two wars. NCUA Board member Gigi Hyland, the agency’s liaison to the SBA, touted the new program as another way to provide capital to credit union small business members. “This new SBA initiative is another mechanism credit unions can use to help members who have so bravely served our country through military service,” said Hyland.

CALABASAS, Calif. – Countrywide Financial Corp. said yesterday that stockholders at its annual meeting Wednesday rejected a proposal to give shareholders a say in the compensation of its top executives, among the highest paid in the country. Meantime, Angelo Mozilo, the CEO and co-founder of the huge mortgage bank, reported he earned almost $2 million on the same day by exercising options, the second $2 million day this week for Mozilo. Mozilo has earned almost $85 million so far this year, including $75 million with the exercise of options, and he has earned more than $350 million over the past three years. The company campaigned against the ‘say-on-pay’ proposal, saying it has already taken steps to reduce Mozilo’s salary and bonus this year.

WINDSOR, Ct. – Private equity fund Carlyle Group, which took Open Solutions Inc. private a few months ago, announced yesterday it is taking SS&C Technologies, the provider of technology services for credit unions and banks it took private in 2005, public again. The company earned $12 million in 2003 and $19 million in 2004, but just $1.5 million in 2005 and $1.1 million 2006, and reported a loss of $227,000 for the first quarter of 2007, according to a filing with the Securities and Exchange Commission. SS&C provides a variety of online systems for credit unions, including a bond accounting system, called PortPro Bond, and an asset liability management services, called PALMS. Since the 2005 leveraged buyout, Carlyle has acquired 12 other companies providing similar services and added them to SS&C. Carlyle is one of the biggest buyout funds in the country, with more than $28 billion of assets under management.

McLEAN, Va. – In another sign of the struggling mortgage market, Freddie Mac reported yesterday that losses on its financial hedges pushed it into the red to the tune of $211 million, or 46 cents a share, in the first quarter, marking the company’s return to regular financial reporting. The first quarter loss compares to a profit of $2 billion, or $2.80 a share, for the first quarter last year. Freddie said that declining interest rates produced a $2 billion loss on its hedging portfolio, compared to a $742 million gain a year ago. The slowing mortgage market also forced a massive decline in business, with first quarter revenues of $424 million, just a fraction of the $2.5 billion in last year’s first quarter. Yesterday ’s report marks Freddie Mac's return to regular quarterly financial reporting. The company hasn't been current on its results since 2002, following an accounting crisis in which it said earnings were misstated to the tune of about $5 billion for 2000 through 2002. Fannie Mae has also ceased regular financial reports.

HARRISBURG, Pa. – The actors in a series of tv ads touting credit unions to be launched next month joined the creative staff and marketers here yesterday to unveil the statewide campaign. Tagged iBelong, the ads will begin airing on network and cable television during the week of July 9. The 30- and 15-second spots deliver a message that credit unions are for everyone, and feature a diverse cast of actors in various locations and situations. The first ad focuses on the message of eligibility, with future ads delivering messages of family-friendly; easy to talk to; and people are great. All ads have a call to action, and refer viewers to iBelong.org, where they can find a credit union they are eligible to join. Each message will run for approximately 4 1/2 months, to fill the initial 18-month campaign. The $2.25 million marketing campaign was organized by the Pennsylvania CU Association and is the most comprehensive ever planned by the state’s credit unions.

McLEAN, Va. – Mortgage rates had their largest spike in nearly four years, and the 30-year fixed-rate reached its highest level in almost a year, Freddie Mac said yesterday. Meantime, the Mortgage Bankers Association reported that a record number of homeowners entered foreclosure during the first quarter of 2007, breaking the previous record set in late 2006 and reflecting continued stress on the jittery housing market. The average rate on 30-year fixed-rate loans climbed to 6.74% this week, from 6.53% last week, marking the biggest one-week increase since July 2003. The average for 15-year, fixed-rate loans climbed to 6.43%, from 6.22% last week. ARM rates also rose sharply, with the average for the five-year ARM increasing to 6.37% this week, from 6.24% last week; and the average for the one-year ARM climbing to 5.75%, from 5.65%. Frank Nothaft, chief economist for Freddie Mac, attributed the spike in rates to inflation pressures and economic strength, that have boosted Treasury yields recently, as well as mortgage rates. Meantime, the MBA said the cooling of the mortgage market is causing investors to walk away from unprofitable investments. The first-quarter's increase in new foreclosures was mostly driven by problems in California, Florida, Nevada and Arizona, where foreclosures are being heavily influenced by speculators who are walking away from properties now that home prices have started to fall in areas of those states and they face resets in the adjustable-rate mortgages they took out for these homes, the MBA said. But Ohio, Indiana and Michigan are the hardest hit states, accounting for 20% of all foreclosures in the country, although they have just 8.7% of all mortgage loans.

SAN DIEGO – Two masked gunmen order employees and members of Navy FCU to the floor Wednesday afternoon and made off with as much as $100,000. The robbers entered the branch around 2:45 with their guns drawn and smashed several surveillance cameras before grabbing piles of cash and escaping, police said. No one was injured in the robbery, apparently one of the biggest credit union heist in recent years.

TEMPE, Ariz. – A former teller supervisor at Tempe Schools CU was charged Tuesday with stealing as much as $50,000 from the credit union. Maria Plascencia, 29, was responsible for depositing extra cash from the teller drawers every night into the vault. Instead, the supervisor allegedly stole some of the cash each time, police said. The scheme was discovered when Plascencia went on vacation and someone else filled in for her.

WALL STREET – Hedge fund activist William Ackerman said he will oppose the proposed acquisition of payroll and cards processor Ceridian to a Fidelity National Financial and private equity fund Thomas H. Lee Partners. Ackerman, whose Pershing Square Capital Management owns a 15% stake in Ceridian, said in a filing with the Securities and Exchange Commission he believes $36 a share, $5.3 billion price agreed to for Ceridian is too low and he hopes to convince other shareholders to pursue other avenues to maximize shareholder value. Last year, Ackerman pushed the Ceridian board for some kind of deal, including the possible spin-off of its Comdata cards and payroll processing unit. Fidelity National Financial is the parent of Fidelity National Title, the largest title insurer in the country, which was spun off last year form Fidelity National Information Services, the provider of back-office services for credit unions and banks.

MADISON, Wis. – MEMBERS Development Co., the incubator operated by CUNA Mutual Group and dozens of credit unions, said yesterday it has named Jeff Kline, president of CommunityAmerica’s CUSO One, as its CEO. Kline has held leadership positions in the credit union industry for 23 years, having served at U.S. Central CU; 66 FCU; and Rainier Pacific CU. He has been in leadership positions at CommunityAmerica CU since 1995 and also serves on the Filene Research Institute’s i3 incubator program.

RICHMOND, Va. – As many as 25 Virginia CU members have fallen prey to a new phishing scam, responding to a phony email by sending their account information. One of the emails offers $80 for responding to a survey. Clicking the email link takes you to a web site that appears to be the credit union’s, but is a fake. The site ask for personal account information. Another website uses the Virginia CU logo and purports to be raising money for victims of the shooting at Virginia Tech.

APPLE VALLEY, Minn. – Wings Financial FCU announced a deal yesterday with JetBlue Airways to provide financial services to the fledgling airline’s 11,000 crewmembers. As part of the agreement, Wings Financial will open new branches and install new ATM machines in or near key JetBlue locations. Wings Financial will also offer JetBlue crewmembers a customized line of checks featuring JetBlue images. The $1.6 billion credit union formerly served Northwest Airlines but now serves the entire air transportation industry.