Events

MAY

Editor's Note: The following is in response to comments by Paul Lucas at the CU Journal Business Development Conference that CUs should keep in mind their members are "consumers":

MADISON, Wis. - Two of CUNA's Councils have released white papers. The CUNA Operations, Sales and Service (OpSS) Council has released the "Balancing Sales and Operations" white paper that looks at how to successfully implement the shift to a sales culture, while maintaining operations as a priority.

WATERTOWN, N.Y. - In a market that is forever rewarding shoppers for their behavior, why not a rewards program for checking accounts?

The parent company of a fast-food chain requires its senior executives to work in one of the restaurants for a week to learn the business first hand and get in touch with customers. For credit union management, often detached from the impact of its decisions, focus groups present a similar opportunity to reconnect with members and hear what they really think. After all, it's not the credit union that defines your brand identity; it's the perceptions of your members.

Before sharing the good news, I feel it only fair that a confession come first: I once played a pivotal role in organizing a conference that went so badly we expected at any moment that Mr. Murphy himself of Murphy's Law fame would arrive and present us with a plaque. We had fought to be among the very first to hold a conference at what was then the brand new Swan Hotel at Disney world in Orlando, only to discover what veterans of conference planning know all too well-you never want to be any hotel's first meeting.

Security Service Federal Credit Union, named Michael Cubeta associate general council and elected to its board: Bob Egger, chairman; Allen Snyder, 1st vice chairman; Jim O'Farrell, 2nd vice chairman; Joe Coleman, treasurer; Pete McNamee, secretary; Mary Holub, Tim McCallum, Grover Jackson, Jim tattini, Max Giovannini and Bill Ballard.

MADISON, Wis. - CUNA Mutual Insurance Society (CMIS) policyholders have approved the merger between CMIS and CUNA Mutual Life Insurance Company, but an opposition group led by the union that has had a number of labor disputes with CUNA Mutual Group is still on the attack.

APPLE VALLEY, Minn. - Just two days after NCUA disqualified its $200-a-share offer to members of Continental FCU, Wings Financial FCU withdrew its effort to acquire the much smaller institution in what would have been credit unions' first hostile takeover.

When choosing a collateral recovery agency, lenders should know and understand the types of insurance coverages specific to this industry.

Editor's Note: The following is in response to comments by Paul Lucas at the CU Journal Business Development Conference that CUs should keep in mind their members are "consumers":

The parent company of a fast-food chain requires its senior executives to work in one of the restaurants for a week to learn the business first hand and get in touch with customers. For credit union management, often detached from the impact of its decisions, focus groups present a similar opportunity to reconnect with members and hear what they really think. After all, it's not the credit union that defines your brand identity; it's the perceptions of your members.

Before sharing the good news, I feel it only fair that a confession come first: I once played a pivotal role in organizing a conference that went so badly we expected at any moment that Mr. Murphy himself of Murphy's Law fame would arrive and present us with a plaque. We had fought to be among the very first to hold a conference at what was then the brand new Swan Hotel at Disney world in Orlando, only to discover what veterans of conference planning know all too well-you never want to be any hotel's first meeting.

SAN FRANCISCO – The Federal Home Loan Bank of San Francisco said last week that first quarter earnings soared 19% to $142 million, based mostly on increases in the fair market value of its portfolio and net interest income. The FHLB booked a $10 million gain in the fair market value of its investment portfolio for the first quarter, compared to a $3 million loss for the same period last year. In addition, net interest income for the first quarter rose 6%, to $205 million. Still, the Bank reduced its dividend rate for the first quarter to 4.89%, from 5.03% for the first quarter last year, as it seeks to build retained earnings.

LAKE SUCCESS, N.Y. – DealerTrack Holdings, the provider of on-demand software and data systems for auto lending, announced Friday it has agreed to acquire Arkona, a South Jordan, Utah-based provider of on-demand dealer management systems for car dealerships. The purchase price is $1.38 a share in DealerTrack stock, or a total of $59 million. The deal is structured as a tender offer for 100% of Arkona’s shares.

WARREN, Mich. – The former CEO of Tandem FCU was sentenced Friday to one year in the Macomb County Jail for using the Internet to arrange for sex with a five-year-old girl. David Rauch, 53, of Clinton Township was arrested by Macomb County Sheriff's deputies after conducting an online chat with undercover officers posing as a woman who would allow him to have sex with her five-year-old daughter. Rauch pleaded guilty March 1 to two counts of child sexually abusive activity and one count of using a computer in the commission of a crime. In addition to jail time, he will have to register as a sex offender, pay $2,000 in restitution and court fees and he is prohibited from using computer chat rooms.

NASHVILLE, Tenn. – The Tennessee CU said Friday it has named Michael Martin as its new president and CEO, succeeding Betty Hobbs the long-time CEO, who retired at year-end. Hobbs headed the credit union for 40 years. Martin, who has been with the $200 million credit union for 24 years, has been serving as interim CEO since Hobbs’ retirement.

LEOMINSTER, Mass. – Leominster CU said last week that Jack Caulfield, its president and CEO since 1992, has resigned to take the same job as head of the larger St. Mary’s CU in nearby Marlborough. Leominster CU has about $350 million in assets, while St. Mary’s CU has about $520 million. Caulfield, 49, helped build Leominster CU from a $130 million credit union. Gordon Edmonds, Leominster CU’s senior vice president of lending, will serve as interim CEO while the credit union searches for a permanent replacement for Caulfield.

PORTSMOUTH, N.H. – Service CU last week donated $125,000 to the state’s Flood Disaster Recovery Fund, aimed at helping victims of the recent flooding around the state. The credit union is also offering special Flood Assistance Loan of up to $40,000 for homeowners and renters at 5.49%. Terms and the size of the loans will be determined on a case by case basis.