WASHINGTON – Members Trust Co.,Colorado announced Friday that banking regulators at the FDIC and Office of Thrift Supervision have approved its merger into the national MEMBERS Trust Co. The two bank regulators have jurisdiction over all trust companies, even those owned by credit unions, like these two. After completion of the merger, Members Trust Colorado will survive as the western division of the national credit union trust co. MEMBERS Trust, a joint venture between CUNA Mutual Group and more than two dozen credit unions, will manage $400 million in assets after the combination.

WASHINGTON – The FDIC will vote this week on whether it should renew the expiring six-month moratorium on new industrial loan company applications, including the controversial ILC bid by retail giant Wal-Mat Stores. If the banking regulator decides to extend the moratorium it could mean the death of the Wal-Mart bid, which has attracted the opposition of hundreds of main street businesses, community banks and some lawmakers who fear Wal-Mart could throw them out of their 1,300 in-store branches and replace them within their own bank. FDIC action is critical because key lawmakers, including House Financial Services Chairman Barney Frank, are planning to introduce legislation as soon as today to permanently bar commercial entities like Wal-Mart from operating ILCs, so-called back-door banks. If the FDIC does not renew the moratorium it could vote the Wal-Mart application before Congress is able to enact a permanent ban. The FDIC has as many as nine other ILC applications pending, including one from home repairs retailer Home Depot.

ST. PAUL, Minn. – Deluxe Corp. said yesterday it overcame continuing declines in its core check printing business to report a 20% gain in fourth quarter earnings, to $47 million, or 92 cents a share. Most of the increase, however, was made up from an $11 million gain from the termination fee from a small business outsource contract. Deluxe, which is about to be eclipsed as the leading check printer by the merger of John H. Harland Co. and Clarke American, reported continued declines in its revenue base, with a 1% drop in fourth quarter sales, to $427 million, and an 8% fall in checks revenues to $161 million. For the full year Deluxe reported a 4% drop in revenues, to $1.64 billion, and a 15% decline in revenues from its core checks business. As a result, Deluxe reported a 36% decline in fiscal year earnings to $101 million, or $1.95 a share.

DAYTON, Ohio – NCR Corp. reported yesterday that profits rose 16% in its fourth quarter, fueled by a strong quarter by its Teradata data warehouse unit it plans to spin off later this year. NCR said net income for its fourth quarter climbed to $174 million, or 96 cents a share. For the year, net income declined to $382 million, from $529 million in 2005, when the company benefitted from a $214 million tax benefit. The Teradata unit reported fourth-quarter revenue of $469 million, up 15% from the fourth quarter of 2005. Revenues for the fourth quarter rose 5% to $1.81 billion, and by less than 1%, to $6.1 billion, for the year.

CHICOPEE, Mass. – Aldenville CU said it has contributed $23,500 to the Chicopee Fire Department to help them buy a CPR machine and a thermal-imaging camera, both life-saving equipment. The CPR machine, a Zoll Medical Autopulse, provides automatic, consistent CPR compression to patients. The credit union’s gift will allow a second ambulance to be equipped with the machine. The thermal-imaging camera, one of four purchased by the fire department, lets firefighters see clearly through smoke.

RALEIGH, N.C. – State Employees CU announced yesterday it has teamed with Intuit again to offer member discounts of 15% on the company’s TurboTax Online income tax program. Once the online tax preparation is complete, members can file electronically with the IRS and receive refunds directly deposited to their SECU account in as few as nine days. In addition, SECU is continuing its ongoing partnership with the Internal Revenue Service (IRS) to provide tax-related tips and articles throughout the year via SECU’s monthly member newsletter Grassroots.

EUGENE, Ore. – SELCO Community CU announced yesterday it has selected J. Robert Newcomb to replace the retiring Ava Milosevich as president and CEO of the $450 million credit union. Newcomb was previously president of Indiana University Employees CU, in Bloomington, Ind., for three years, and before that was SVP and COO at Alliant CU, the giant Chicago credit union formerly known as American Airlines Employees CU. IU CU said it named CFO Bryan Price has been named as interim president.

GREELEY, Colo. – Authorities are investigating the links behind Tuesday’s fatal shooting of a Colorado State CU and the possibility that a romantic affair may be behind the tragedy. Shawna Louise McKay Nelson, 35, the wife of a Weld County Sheriff’s deputy, is accused of shooting and killing 37-year-old Heather Garraus, the wife of Greeley Police Officer Ignacio Garraus, Tuesday just after the closing of the credit union. Police are investigating Nelson’s alleged affair with Ignacio Garraus, a Greeley Police officer and the victim’s husband, police sources confirmed. Nelson, who is being held without bail, is married to Ken Nelson, a deputy at the Weld County Sheriff’s Office.

McLEAN, Va. – The mortgage yield curve continue to flatten this week, with long-term rates tipping slightly upwards and short-term rates dipping slightly downwards, according to Freddie Mac. The average for the benchmark 30-year, fixed-rate loan rose to 6.25%, from 6.23% last week, while the average for the 15-year, fixed-rate mortgage remained the same at 5.98%. But ARM rates declined, with the average for the five-year ARM dipping to 6.0%, from 6.04%; and average for the one-year ARM falling to 5.49%, from 5.51% .“Mortgage rates were mixed this week on news that December's leading indicators, a measure of future economic activity, signaled steady growth in the coming months," said Frank Nothaft, chief economist for Freddie Mac.

NEW ORLEANS – ASI FCU was deluged Wednesday with applications for loans and grants being distributed under a new state program to help small businesses damaged by Hurricane Katrina. The community development credit union, which is teaming up with nearby Mary Queen of Vietnam FCU, is one of just a handful of financial institutions approved as intermediaries for the Louisiana Business Recovery Grant and Loan Program. “We had requests for as many as 300 applications on the first day,” Sarah Taylor, senior vice president of the $240 million CDCU, told The Credit Union Journal. ASI/Mary Queen of Vietnam will serve as financial intermediary and administrator of loans to be distributed in the a $138 million initiative, which will include $38 million in grants and $100 million in no-interest loans. ASI, which has been central in the rebuilding of the Crescent City, will screen applications for local businesses and then administer the funds being provided by the state. To qualify for the funds, a business must have fewer than 50 employees, has to show that it lost 30% of its revenues since before the storm, and has reopened or plans to reopen, said Taylor. Applications will be accepted for the rebuilding funds at ASI and other participants in the loan program between Jan. 23 and Feb. 16. ASI is the only credit union participating. Unveiling of the new loan program came as ASI was being granted $300,000 from NeighborWorks America, a quasi-government housing agency, to help rebuild a block in the city’s heavily damaged upper Ninth Ward with new modular housing.

WASHINGTON – The banking lobby has been working on Capitol Hill for exemptions to the newly passed law setting the maximum allowable rate on loans to the military at 36% APR. In the latest effort, America’s Community Bankers is calling on the Department of Defense to exempt federally insured financial institutions–specifically banks and thrifts–from the new usury law. Representatives from the banking lobby, specifically American Bankers Association and Independent Bankers Association of America, have visited both CUNA and NAFCU in recent weeks to get enlist them in the fight to roll-back the new interest rate caps, but so far neither credit union group has agreed. The 36% rate cap, the bankers are arguing, could affect various types of credit, specifically credit card loans that may exceed that level, if fees are counted as part of the interest.

WASHINGTON – A representative for Capital One, the nation’s largest credit card bank that has broadcast a nationwide ad campaign asking consumers ‘what’s in your wallet?, was taken to task by members of the Senate Banking Committee yesterday for a variety of practices popular in the credit card industry. Several senators assailed John Finneran, president for Corporate Reputation and Governance for Cap One, for engaging in ‘tricks and traps’ that allow it to earn billions of dollars from unknowing consumers, particularly the practice of changing rates in the middle of a contract with cardholders. Several senators and consumer advocates testifying at yesterday’s hearing insisted the practice amounts to changing the price of a product after the purchase, while adding additional costs to previously purchased goods and services. “We don’t build a business model on tricks and traps. We’re all in the business to build customer relationships,” asserted Finneran. “If you build your business model on tricks and traps you’re not going to last in the marketplace.”

WASHINGTON – The new Democratic-controlled Congress began a series of hearings on the credit card industry yesterday which are expected to result in legislation that will reign in some of the practices of credit card issuers, increase consumer disclosures and possibly regulate the multi-billion dollar market for interchange fees paid by merchants, issuers and consumers. Democratic members of the Senate Banking Committee made it clear they plan to revisit some of the issues swept aside by the Republican-controlled Congress during the debate over bankruptcy reform, which was led by the credit card industry.“I would like to put the credit card industry and the issuing banks on notice, that we’re going to take a long, hard look at how you treat your customers, both short and long-term,” said Connecticut Sen. Christopher Dodd, the new Chairman of the panel, who made it clear earlier in the week that populist issues like credit card abuse will be central to his fledgling campaign for president. Several senators indicated they plan to introduce legislation to set new standards for credit card disclosures and fees and banning certain practices, like universal default with which cardholders have their rates raised because of default on another debt. Democrat Daniel Akaka, of Hawaii, criticized the disclosures included in the bankruptcy reform law and said he will introduce a bill setting new rules disclosing the affects of minimum monthly payments. And New Jersey Democrat Robert Menendez, has introduced a ‘Credit Card Bill of Rights’ that would, among other things, prohibit universal defaults; restrict excessive late fees and tighten regulations on credit card companies to ensure that they are not offering credit to high-risk cardholders without verifying their ability to pay. Several Republicans also warmed to the issue, with New Hampshire’s John Sununu suggesting that Congress stiffen penalties for issuers found to engage in fraudulent practices.

MOON TOWNSHIP, Pa. – Clearview FCU announced yesterday a multi-year contract with Robert Morris University for the naming rights of the school's Island Sport Center's Collegiate Arena in nearby Neville Island. The ice arena will be known as Clearview Arena. The arena hosts the Division One school's men's and women's hockey games, local and regional youth hockey contests and tournaments, figure skating special events and some Pittsburgh Penguins practices. Financial terms of the deal were not disclosed.

AUSTIN, Texas – An item that appeared on The Credit Union Journals daily website for Monday, Jan. 23, regarding Velocity CU and a lawsuit it has filed against the Standard Insurance Co. incorrectly stated the nature of the suit. The item reported Velocity had established a $10-million benefit plan for two top executives, but the plan was established for all Velocity employees. The lawsuit, however, is in reference to The Standard’s failure to account for an IRS rule when creating the plan, and this rule only affects the retirement benefits of two Velocity executives.

JACKSONVILLE, Fla. – Fidelity National Information Services, the credit union and bank outsourcer spun off from Fidelity National Title last year, reported it will take a $27.3 million charge in the first quarter in relation to the refinancing of $3 billion of unsecured debt. The new credit facilities include $900 million of revolving credit and a $2.1 billion, five-year loan. The initial term of the loan is 1% above LIBOR.

ALEXANDRIA, Va. – Betty Jean Barachie, the former branch manager for defunct Nor-Car FCU, who pleaded guilty to embezzling more than $1.5 million to finance her compulsive shopping habit, was barred yesterday from the credit union industry, NCUA announced. Barachie, one of two top Nor-Car officials convicted of looting the failed Easton, Pa., credit union, told authorities she used the funds to buy hundreds of pairs of shoes, some 3,000 books, 58 coats, 16 chainsaws and a John Deere Tractor. Most of the items she bought sat piled in her house unused with the price tags still on them. Last month, Michael Symons, former president of Nor-Car, pleaded guilty to stealing almost $1.8 million from the credit union. Also banned by NCUA yesterday were: Catherine Couch, former credit card coordinator for West-AirComm FCU, Beaver, Pa., for stealing $35,000; Twyla Davis, former manager of Winston-Salem Police CU, Winston-Salem, N.C.; Latifa Joseph, former loan officer at Louisiana Association of Educators FCU, New Orleans; and James Straley, former treasurer/manager of Blackhawk FCU, Beaver Falls, Pa.

DENVER –First Data Corp. said fourth quarter profits plunged after the spin off of its Western Union division, by 34% to $278.5 million, or 37 cents a share, compared to the fourth quarter last year. As a result, net income for the full year declined 12% to $1.5 billion, or $1.95 a share, compared to fiscal 2005. The company reported a 14% gain in revenues for the fourth quarter, including a 10% rise in revenues from merchant services and a 14% rise in card services. Merchant services revenues were up 12% for the year, and card services by 6%.

MINNEAPOLIS – Fair Isaac Corp., the provider of the ubiquitous FICO credit scores, reported yesterday that net income for its fiscal first quarter rose by 9% to $31.2 million, or 52 cents a share. First quarter revenues were up 3% to $208.2 million, compared to the first quarter last year. First quarter results include a $2.3 million tax benefit.

PORTLAND, Ore. – Financially ailing ATM ISO TRM Corp. said yesterday it continues to raise new funds by the shedding of assets with the sale of its ATM business in Britain and Germany for $92.6 million. The buyer is NoteMachine Ltd., an England-based ATM operator owned by Rutland Partners LLP, a British private equity partnership. The sale comes a few weeks after TRM raised $25 million by selling its once-core copier business and its Canadian ATM business. Proceeds raised from the assets sales will be used to pay down TRM’s debt with Wells Fargo Foothill and GSO Capital, most of which was incurred with the company’s 2005 acquisition of eFunds’ 14,000 ATMs. The company reported a $105 million third quarter loss, as it wrote down much of the value of the eFunds fleet. TRM operates about 15,000 ATMs across the country, 6,000 of which are part of the CO-OP Network.