FEBRUARY

League Report Cited

WASHINGTON - In the latest twist of a long-standing battle between credit unions and the Internal Revenue Service more than a dozen state-chartered credit unions have received the most definitive guidance to date on what is taxable under the Unrelated Business Income Tax.

* John Deere asks co. credit unions to cease using its name in theirs * Santa Barbara CU installs solar power, expects it to provide 60% of power * Credit unions across the country receive a postcard from a person seeking to make a deposit. Card was sent by Mark Dern, whose Dern Capital Management uses the same general counsel as Florida Bankers Assn. * Credit unions look to capitalize on popularity of "Extreme Makeover: Home Edition" program rollout makeover (home equity) offers of their own, along with related giveaways. Meanwhile, The Credit Union Journal invites credit unions to send photos of their offices in dire need of an Extreme Makevoer, and credit unions respond with workspaces typically limited to the incarcerated * Orange County CU creates "chief political officer." * Some unionized workers at CUNA Mutual picket at the home of Loretta Burd, chair of CMG, in Indiana, along with the homes of other board members * 2004 was not a good year for CUs on TV. On an episode of "The Simpsons," Bart receives as a gift a coffee mug emblazoned, "Premiere Credit Union." Lamented Bart, "Man, this is the worst birthday ever." A TV commercial from Mike's Hard Lemonade shows two buddies robbing a CU * The sale of PULSE for $311 million meant big payouts for some of the 1,600 CUs that owned a piece of the network. * Eugene Sukie, 79, set a new record when he walked into Integrity CU, Barberton, Ohio, with one-million pennies to be counted by a CoinStar machine * The Pennsylvania league introduces a check-cashing services program in conjunction with the Filene Research Institute and Certegy * A breakout session during the CUNA Future Forum in Hawaii turned feisty when session leader George Towle said a board succession plan is needed and board members in the audience disagreed. "You can be just as stale at 21 as you can at 81," said one person * State Employees CU, North Carolina, unveils plans to underwrite a scholarship in each of the state's high schools (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com

WASHINGTON - Four years after passage of Check 21, the federal law that makes electronic images the same as legal tender has apparently come of age, with conversion of paper-to-electronic transactions exploding in the latter part of 2006.

ARLINGTON, Va. - Just days before TJX, parent company of discount retailers TJMaxx and Marshalls, reported a massive data breach (see related story this issue), NAFCU released data showing data security breaches continue to be a growing problem for credit unions and their members.

Credit unions around the country realize that one of the most efficient and effective ways to grow their loan portfolio and potentially their membership is to build a successful indirect lending program. Although such programs offer tremendous promise to budding CUs, getting to the pot of gold at the end of the rainbow can be harder than it looks.

There's been a lot of change in the credit union industry over the past few years. Mergers, changes in charters, and the continued emergence of electronic banking options are all changing the way credit unions market, and to whom they're marketing to. But for a lot of credit unions their name and logo hold them back-the same way wearing a battered ten-year-old suit and shoes would hold you back at a big job interview.

Credit Union Journal has a very special announcement. Thanks to the support of the CO-OP Network, as part of our Business Development & SEG Conference April 12-13 in Boston, the Journal has arranged for a tour and dinner at America's Credit Union Museum in Manchester, N.H.

New Design More 'User-Friendly'

A good website should make a difference to your credit union. It should drive revenues, strengthen relationships, save costs, and increase member satisfaction. Here are key issues to consider when selecting a vendor to redo your site: people, processes, technology, design, support, and pricing.

Grow or die.

According to Fred Reichheld's recent book, "The Ultimate Question," there is one very powerful question that gets to the heart of both loyalty and growth for any organization.

DENVER – First data Corp. announced Friday it has acquired Size Technologies Inc., a provider of loyalty, stored value and transaction marketing solutions. The deal will allow First Data to offer merchants, issuers and coalition partners a real-time point-of-sale loyalty solution that will help drive customer behavior. Participating customers will also have access to loyalty features and functions including coupons, consumer messaging, product-based rewards, customer relationship management and a campaign management tool. Financial terms of the deal were not disclosed.

WATERLOO, Iowa – The work of 50 area young artists from local Ankenny High School will adorn the lobby of Veridian CU for the next few weeks, as part of the credit union’s second annual ArtShare program. The program is designed to increase the awareness of young artists in the community. The $1 billion credit union will also award a $1,000 scholarship for undergraduate tuition to an educational program that will lead to a career in the arts.

DETROIT– Two area credit unions will offer free tax-filing services and financial education to qualifying, low-income residents through a partnership with the Detroit-based Community Tax and Resource Center. Communicating Arts CU and Dearborn Village Community CU have partnered with the Center to help struggling families build assets, avoid predatory lenders and develop sound financial skills. The Center will link its tax services for low-income households with local community groups that provide asset-building tools and education, including the two credit unions. Visitors to the Center will also gain access to information on heating bill assistance, legal services, building toward home ownership, Individual Development Accounts, property tax screening and self employment/micro-enterprise programs.

OKLAHOMA CITY – Woekie CU said Marvin Cottam, the only president and CEO its had in its 37-year history, will retire on April 20. Cottam, 65, has built the credit union into one of the largest in Oklahoma, with $520 million in assets and 54,000 members. Brent Taylor, the credit union’s executive vice president, will succeed Cottam as CEO.

GEISMAR, La. – Wymar FCU celebrated gave its members a half-million reasons to celebrate the New Year. The 48-year-old credit union sent its members $250,000 in Bonus Dividends and a $250,000 in Interest Refunds-- for a total return of $500,000. The $250,000 Bonus Dividend represented 69.9% of the dividends already paid to the members in 2006. The $250,000 Interest Rebate represented a return to the credit union’s members of 16.4% of the interest they had paid on their loans during 2006. The $42 million credit union was chartered in 1958 to serve the financial needs of the employees of what is now BASF Geismar, Louisiana.

WASHINGTON – The credit union lobby was counting on Vermont’s Bernard Sanders to introduce their regulatory relief bill, known as CURIA, in the Senate, where he was elected to serve after eight terms in the House. But Sanders who promised to do so in September at NAFCU’s annual Congressional Caucus, was not appointed to the Banking Committee, where the CU Regulatory Improvements Act is sure to be referred. Sanders, the only self-avowed socialist in the Congress, was reported to have been kept off the panel by the powerful banking lobby, which has always been at odds with him. Kansas Republic Sam Brownback, one of six Senators running for president, had expressed interest in being chief sponsor of CURIA, but is not returning to the Banking Committee, where he served in the last Congress. So the credit union lobby is still searching for a champion in the Senate, where the bill has yet to be introduced. Members of the House Financial Services Committee, which has introduced versions of CURIA each of the last two congresses, are expected to introduce it again over the next few weeks. “That’s where we’re concentrating our efforts right now. We’ll think about the Senate later,” said one credit union lobbyist involved in the effort.

TULSA, Okla. – Credit union representatives from around the state met here last week to break ground on the state’s own Credit Union House. The project, within view of the state Capitol, will serve as the headquarters for the Oklahoma CU League and as a meeting place and training facilities for credit unions, state legislators and community groups, similar to the Credit Union House built by the state leagues in Washington, D.C. Twenty-five Oklahoma credit unions bought shares in the project. Construction is scheduled to begin this spring. Several other states, including Missouri, have either built or are considering building their own CU House, which has significantly raised both the profile and campaign financing capability for CUNA, which offers it as a fundraiser venue.