CHARLOTTE, N.C. – Bank of America announced yesterday its MBNA Canada Bank has agreed to acquire CUES, the largest MasterCard issuer for Canadian credit unions. CUETS is owned jointly by CU Central of Saskatchewan and CU Central of Alberta Ltd. Financial terms of the deal were not disclosed.

PALMYRA, Pa. – Members 1st FCU has acquired a seven-acre plot and is asking for town approval to subdivide it into three plots for a commercial development. The $1.2 billion credit union plans to build a branch at the site and has sold one parcel to Ride Aid for a new drugstore. The third plot is designated for a restaurant or other high-use business. The plans were reviewed by local residents in a public hearing Tuesday night.

MARIETTA, Ga. – Lockheed Georgia Employees FCU announced it has implemented Digital Resolve’s Fraud Analyst, a multi-factor authentication system for its online banking. The system uses behavior profiles that track the way members normally log-in to their online accounts, allowing the $600 million credit union to spot suspect log-in behavior in real-time. It requires further authentication if a log-in raises doubts about the user.

AUBURN, Ala. – Auburn University FCU said yesterday it has signed with LEVEL5 consultants to design a growth strategy for its expanding member base. The $100 million credit union plans to build a new headquarters and retail branch a quarter mile from the University’s main campus to improve access for members and support future growth. The credit union plans to break ground on its new two-story, 18,000 square-foot headquarters this fall and complete construction by January 2009. The credit union plans to sell its existing on-campus facility to the University to facilitate further expansion on the northwest side of the campus.

WASHINGTON – Credit union profitability has remained almost flat since the height of the S&L crisis, 16 years ago, while the profitability for banks has surged since then, according to a new study conducted by the General Accountability Office, the think tank for Congress. Since 1990, the average return on assets (ROA) for credit unions has gone from around 0.80% and was 0.81% for 2006; while the average for banks, which were struggling with S&L-like loan problems, then had to boost capital for new industry-wide rules, went from a mere 0.25% to 1.27% last year, the GAO found. Release of the study comes a week after NCUA reported that the average ROA for credit unions plunged in the first quarter to a 20-year-low of just 0.73%. The study was conducted at the request of then-Rep. (now Sen.) Bernard Sanders, who made the request at the behest of NAFCU, which is seeking to fend off assertions by the banking lobby that the banks are suffering from the increased market share and the federal tax-exemption for credit unions. But to the contrary, the GAO study shows that the total profits for banks has increased an average of 8% a year since 1990, while credit union profits have increased an average of 3% annually. In addition, the GAO found that 2,356 closely held banks–roughly a third of the number of credit unions still in existence–now qualify for a credit union-like tax exemption as Subchapter S corporations. The study also found that credit unions, as well as banks, continue to increase their reliance on fee income as margins dwindle on loans and investments. Since 1990, credit unions have more than doubled the portion of net income they earn from non-interest, to 31% in 2006, from 15% in 1990; while banks have gone to 43%, from 32%.

FORT WORTH, Texas – American Airlines FCU the thriving $4 billion credit union serving the nation’s air transportation industry, announced yesterday it has hired Angela Owens as the heir apparent to long-time president and CEO John Tippets. Owens, who is general auditor of American Airlines, will serve as president and chief operating officer, while the credit union giant prepares for Tippets retirement, which has not been set yet. Tippets will continue to serve as chief executive officer. Owens worked at the credit union before, as head of community relations and financial services, heading the business development, credit counseling and member special assistance programs. She’s also had a long work history at the airline sponsor, including as managing director of corporate accounting and investor relations for Sabre, the reservations operation, so she knows both the air transportation industry and the credit union.

RALEIGH, N.C. – State Employees CU has teamed with the state agencies to train its employees to spot elder abuse and mistreatment. Representatives form the state’s Attorney General’s office, the Division of Aging and Adult Services and Adult Protective Services teach credit union employees about the law, how to spot elder abuse and provide examples of the financial destitute caused by financial exploitation of the elderly. Employees are being taught to recognize and report such mistreatment. SECU officials acknowledge the role the credit union plays in helping families manage their finances and see a major role for employees in detecting and preventing elder abuse, exploitation and neglect.

KALAMAZOO, Mich. – An elderly caregiver was sentenced to a day in jail and ordered to repay $178,000 she stole from the credit union account of an old woman she was caring for. Stacey Banks, 30, knew that the woman for whom she held power of attorney didn’t have all of her mental faculties and ‘preyed upon’ her to drain her account at Educational Community CU, the Kalamazoo County Judge said Tuesday during Banks’ sentencing. Banks’ mother-in-law, Alberta Banks, who was the chief caregiver for Mildred Riedell-Guimond, was also sentenced in the scheme last month. The two women were ordered to make restitution to the family members of Riedell-Guimond, who died in 2004 at age 86. Stacey Banks was also ordered to have no contact with anyone over 65 who is not a family member without the permission of her probation officer.

PURCHASE, N.Y. – Shares in MasterCard continued their incredible surge yesterday as optimism about electronic payments helped push the stock over $146–more than triple last May’s initial public offering price of $39. The shares closed yesterday up $5 yesterday to $144, after a Bear Stearns analyst initiated the stock at ‘outperform’. MasterCard shares have surged 26% this month, as investors eagerly await IPOs of competing payments systems Visa USA and Discover/Pulse EFT, and digest recent takeovers of payments giants First Data Corp. and Alliance Data Systems.

DENVER – First Data announced yesterday David Coulter, the well-known investment banker who is engineering the spin-off of Metavante, has resigned as director, as he is joining the Metavante board. Coulter, the former CEO of Bank of America, is a managing director of Warburg Pincus, which is acquiring a 25% stake in Metavante in exchange for a $625 million investment, as part of a so-called sponsored spin-off from Marshall & Isley. First Data and Metavante are like two ships passing in the night; one payments processor, First Data, is being taken private in a $29 billion leveraged buyout; while the other, Metavante, is being taken public.

MECHANICSBURG, Pa. – AmeriChoice FCU said it will merge with Y.T.W. Community FCU, which is losing its CEO to retirement. AmeriChoice has more than $110 million in assets and 12,000 members and the smaller, York-based credit union has almost $20 million and 4,500 members. Y.T.W. manager and treasurer James Brown is retiring which promoted credit union officials to pursue a merger. The Y.T.W. main office will become an AmeriChoice branch.

SALT LAKE CITY – One man pled guilty last week and another awaits trial in last winter’s armed robberies at two local credit unions and one bank. Willie McNeal, 50, of Midvale, pleaded guilty to three counts of armed robbery for the October 2 heist of $11,792 from Mountain America FCU in Layton; the December 1 robbery of $6,198 from Cyprus CU in Sandy and the November 1 hold-up at Chase Bank in Midvale, where $1,041 was stolen. McNeil’s alleged accomplice, William Harrison, 40, of Salt Lake City, is scheduled for trial on July 16.

CLEARWATER, Fla. – Achieva CU, formerly known as Pinellas County Teachers CU, announced yesterday that Joseph Newberry has been hired as its new president and CEO. Newberry has more than 30 years of experience in financial services, most recently as executive vice president of Redstone FCU, in Huntsville, Ala. Achieva has $600 million in assets and serves 65,000 members.

WEST PALM BEACH, Fla.–The Credit Union Journal is now accepting nominations for its 2007 Best Practices Awards. The Journal’s Third Annual Best Practices Awards program has developed into one of the most widely recognized forums for the sharing of practices worthy of emulation within the credit union community, and it’s easy to enter. Nominations may be submitted by credit unions themselves, a CUSO or even another CU. Nominations can also be submitted by suppliers to the credit union community that have clients they believe exemplify a best practice in implementing a particular product or service. The criteria are: 1) The best practice must have been deployed since June 1, 2006. 2) Credit union (or vendor) selects (or even creates) a category and nominates itself/client CU. 3) The entry should include: 500 words or less on why it believes it has created a best practice within its operation. The nomination essay should include as many tangible measures as practical (including ROI where available) documenting the best practice; the background on environment prior to the implementation of the best practice, and factor driving adoption of the best practice, and any new products/solutions deployed to achieve the best practice. 4) A credit union may enter more than one category. 5) Nominations should be e-mailed to the Managing Editor Lisa Freeman at lfreeman@cujournal.com. Winners will be profiled in Credit Union Journal later this year.

ONTARIO, Calif. – CO-OP Financial Services launched two new product yesterday to ease travelers worries when they’re using the CO-OP-branded debit cards on the road. CO-OP’s Falcon Travel Notification gives credit unions access to a cardholder’s contact information and travel itinerary, allowing faster notification when a questionable transaction occurs. The product is an extension of the Fair Isaac’s Falcon Fraud Manager that CO-OP offers credit unions. The second, called VIP Authentication Bypass, allows credit unions to identify elite cardholders they want to be exempt from any transaction blocks.

SACRAMENTO – Lawmakers here are debating a bill which would put the onus on retailers, third-party processors and other parties who may be responsible for a data breach to notify affected parties and to reimburse costs for restoring security, such as cards reissuance. Representatives of the California CU League are scheduled to publicly endorse the measure at a news conference today with Assemblyman David Jones, author of the bill. The bill will require the party responsible for a data breach to notify all affected parties, including banks, credit unions and their account holders, in an expedient manner. The bill passed the Assembly’s Judiciary Committee last month and is expected to be voted by the full Assembly some time next month.

PASADENA, Calif. – Priority One CU was caught in an embarrassing admission last week after it mailed ballots for elections to the board with each member’s account number and Social Security number printed on the outside of the envelope. The $175 million credit union was forced to apologize to its members and enact new security procedures to ensure the information is not used by identity thieves and urged members to closely monitor their accounts. In a letter to its 27,000 members, Charles Wiggington, president of Priority One, said the printing of the personal information was inadvertent and was not “printed in a format that would be immediately recognizable.” The credit union has responded to the accidental breach by putting new processes into effect to validate identities before any transactions are processed, and is providing free credit monitoring services to all members for one year. Members are also invited to change their account numbers as an extra precaution. Members are urged to carefully monitor their account statements and to place a security alert on their credit bureau files.

PHOENIX – The Arizona CU League announced it has hired Scott Earl, former president of the Utah CU League, as its new president and CEO. Earl, who has been working as a vice president for special projects for CUNA the past two years, will succeed long-time Arizona League CEO Gary Plank, who is retiring in July. Earl headed the Utah League between 1991 and 2003, after which he served as director of the Credit Unions for Kids Program for Children’s Miracle Network. The Arizona League represents 55 federally and state chartered credit unions.

SALT LAKE CITY – Beehive CU gave away IKEA gift cards last week in conjunction with the opening of the furniture chain’s new store in nearby Draper. IKEA customers who opened a free checking account with direct deposit received a $50 card, and existing checking account holders who signed up for direct deposit received a $25 card.

KANSAS CITY – The former president and CEO of financially ailing Credit Union Group, a conglomerate of four local credit unions that was run under conservatorship until earlier this month, pleaded guilty last week to falsifying the books. Mark Kasson, 38, of Lawrence, admitted to cooking the books to show that $3 million in loans had been sold to other credit unions to remove the loans from the credit union’s records. The false bookkeeping was one of the reasons the credit union conglomerate was taken over by regulators.