WASHINGTON - As the National Credit Union Foundation officially takes the reins of REAL Solutions from the Filene Research Institute, league officials in 12 states have confirmed that they will participate.

JANUARY

* Champion Credit Union, Arden, N.C., named Cassidy Lamb winner of the credit union's coin sorting machine contest.

COLUMBUS, Ohio - The direct merger of Nationwide FCU and Nationwide Bank has been completed and the payout of some $79 million will be deposited into member accounts on Jan. 8.

To mark our 10th Anniversary, we have several very special offers for readers.

Call centers emerge as more members are willing to do business via the phone, or automated phone system * The California banker's legal challenge to NCUA's chartering authority is assigned to same judge who previously called NCUA a "rogue" federal agency * Ed Baranowski, CEO of Fairwinds FCU, proposes giving up the tax exemption for a truce on FOM * Michael Dusche of Microsoft tells NAFCU Technology Conference that all the discussion surrounding online security is misplaced, noting that no one has ever cracked 48-bit encryption, and certainly not come close to 128 bit * NAFCU rejects any talk of a merger with CUNA * CUNA holds its first elections following Renewal Project. One interesting result: no volunteers were elected to CUNA board, despite that being one goal * Texas CUs finally are permitted to make home equity loans * Bankruptcy reform bill debuts in Congress * CUNA Chairman and Motorola Employees CU-West CEO Pete DiSylvester dies at age 62 * Legislation is proposed to ban ATM surcharges * George LaChappelle of the Michigan league, on hand in 1966 to help build time capsule, is on hand in 1997 to open it. * Kansas CUs charge that Dodge City-based Landmark BancShares is sending $1,000 checks to various CUs seeking to open CDs to prove CUs are illegally opening accounts * The New York Times, in an editorial, criticizes the CU tax exemption * Michigan's CUs roll out a program to teach computer skills to new hires who lack them * NCUA's Asset Liquidation Management Center earns $5.3 million when it sells livestock it had acquired as part of a liquidation * Eight small CUs in Indiana form "Small Credit Union Managers" group, or "SCUM" * Federal Employees CU, whose offices were destroyed in the 1995 Murrah Federal Building bombing in Oklahoma City, breaks ground on a new office * Richmond Savings CU, Canada, creates humorous campaign around "Humungous Bank" theme. One ad reads, "We're not just interested in money. We're interested in people with money." * Alabama's largest newspaper gives front page treatment to a story on ACUL CEO Gary Wolter's pay * 1st Advantage Credit Union hires Howard Stern as a spokesperson * Y2K planning begins.

DELAWARE

WEST PALM BEACH, Fla. - In the Dec. 4 issue, The Credit Union Journal misquoted remarks made by Peter Duffy of Sandler O'Neil during a discussion on credit union charter conversions hosted by the American Enterprise Institute. The text of the question posed by Credit Union Journal Washington Bureau Chief Ed Roberts and Duffy's response appears below in their correct form. Readers can view a complete video of the discussion group, along with related presentations, at www.aei.org/events/eventID.1418. The Credit Union Journal apologizes for the error.

JEFFERSON CITY, Mo. - Missouri Electric Co-op Employees CU has taken the old saw of "the credit union difference" and turned it into a viable, profitable value proposition.

WASHINGTON - NCUA is being strongly urged by one group to understand that "low-income" and "modest means" are not interchangeable terms.

Beginning on this page, we begin the first of a two-part series in which the Credit Union Journal looks back at each of the past 10 years that this newspaper has served the credit union community. We remember the highlights, wince at some of the lowlights, and recall many of the moments in between. In each case we sought to profile turning points and developments, celebrate some of the best quotes and observations, and shine a light even if just for a moment on some things you may have forgotten. In this issue, we mark 1997-2000. In the Jan. 15 issue, we'll mark 2001-2006. As always, we welcome your feedback at the Credit Union Journal. You can e-mail the Publisher at fdiekmann cujournal.com, or Managing Editor Lisa Freeman at lfreeman cujournal.com. We have also deployed a technology called the telephone, and we can be reached at 888-832-2929.

Some ten years ago we were perhaps a bit audacious in this space in comparing the launch of this brand new publication, The Credit Union Journal, by making a reference to 19th century credit union pioneer Fredrick Raiffeisen. Call it a stretch goal, one the Credit Union Journal continues to stretch to meet with every issue.

PURCHASE, N.Y. – Quorum FCU celebrated the new year by acquiring smaller Avon FCU, Quorum’s fifth merger in the last 18 months. The acquisitions have pushed the credit union, known until 2005 as Kraft Foods FCU, to $550 million in assets. The acquisitions include Triple A FCU, in Port Chester, Bronx VA hospital CU, N.Y. Methodist CU, in White Plains, and Akzo CU, in Dobbs Ferry. Avon FCU, based in nearby Suffern, N.Y., had $18 million in assets and 2,300 members.

FORT KENT, Me. – For the second year in a row, Acadia FCU celebrated the new year with a merger. The $70 million credit union began 2007 with the acquisition of tiny ($1.2 million) St. Francis Community FCU. The credit union, formerly known as Fort Kent FCU, celebrated New Year’s 2006 with a merger with La Vallee FCU ($32 million), and the new name.

PORTLAND, Ore. – TRM Corp., the troubled ATM ISO, said yesterday that Daniel Tierney, who had headed the company’s photocopier business, has resigned, as the company is completing the sale of the business. The nation’s second largest independent operator of ATMs also reported another resignation from its board, Hersch Kozlov, who will be replaced by investment banker John White. Earlier this year, Lance Laifer, an independent director, resigned from the board of the ailing company. Tierney was paid $275,000 in severance and will earn an $85,000 consulting fee to smooth the sale of the copier business. TRM sold its once core business, the copier rentals, last month for $9.2 million, and also sold its Canadian ATM business for $15 million, as part of a restructuring. The operator of more than 14,000 ATMs–6,000 as part of the CO-OP Network–reported a $101 million third quarter loss, because of a write-down of assets.

MINNEAPOLIS – Fair Isaac reported that its departed CEO Thomas Grudnowski earned $2.6 million on his way out last year, including bonus and severance. The Golden Parachute will ease the fall for Grudnowski, who the company said resigned in November after the company continued to report poor financials. Fair Isaac reported a 38% fall in fourth quarter profits and a 23% decline in fiscal year profits for 2006, on almost flat revenue growth. Grudnowski earned a $1.32 million severance, as well as a $660,000 bonus, equal to his 2006 salary, according to a Fair Isaac filing with the Securities and Exchange Commission. As part of the deal, Grudnowski signed a two-year non-compete clause with Fair Isaac. Fair Isaac also reported that Grudnowski earned $3.75 million last year by exercising 100,000 options. Grudnowski, who took over the financial metrics firm in 1999, left with almost 1.6 million shares, valued at $65 million.

LA JOLLA, Calif. – Last summer’s failed deal to sell its industrial loan company to Wescom CU has come back to haunt Silvergate Bank. Federal regulators and state regulators have cited the $350 million bank for unsafe and unsound banking practices. A cease and desist order issued by the FDIC and California Department of Financial Institutions cites the ILC’s lack of core deposits and compliance with the Bank Secrecy Act. Bank officials attributed its problems to the ILC charter, which bars it from offering checking accounts to business customers, limiting its ability to earn a spread on brokered deposits. In addition, the bank has been without a CEO since last April. The company thought it had shed it problems when Wescom agreed last year to acquire the ILC charter in order to to allow it to develop a credit card bank for credit unions. But the deal fell through when Wal-Mart’s bid for an ILC charter caused a major political battle, prompting the FDIC to enact a moratorium on all new ILCs. Since then, Wescom has proceeded with its credit card bank through a charter switch to a central credit union, but Silvergate’s prospects have continued to decline, with net income halving to $133,000 for the first three quarters, and assets declining to $350 million, from $500 million.

McLEAN, Va. – Secondary mortgage market giant Freddie Mac reported a 50 basis points drop (0.5%) in long-term interest rates caused it to lose $550 million for the third quarter, and the second-largest purchaser of home mortgages expects to report a loss for its fourth quarter, too. The shift in long-term rates caused the company to write-down the fair market value of its derivatives and guarantee transactions. The third quarter loss compares to a gain of $880 million for the third quarter of 2005. Still, the continuing mortgage boom allowed Freddie to boost earnings for the first three quarters to $2.5 billion, up from $1.4 billion for the first nine months in 2005. The 2005 results included charges for settling a shareholder lawsuit related to the company’s ongoing accounting scandal, costs associated with the restatement of financials, and losses related to Hurricane Katrina.

CONCORD, Calif. – After thieves walked off with $4,000 worth of new baseball equipment right before the start of the season things looked bleak for the Concord High Minutemen baseball team–until Metro One CU stepped in. The money used to pay for the new equipment, new balls, helmets, was raised by the teenage players themselves. But when credit union officials saw the report on local tv they responded with a donation of $3,500 to resupply the team.

JACKSON, Mich. – Move over ‘CSI,’ students at Jackson Community College will get their own modern crime lab and classroom, courtesy of South Central State Employees CU. The credit union agreed to donate $20,000 for a lab that will enable them to conduct ‘CSI’ type crime probes and experiments on campus. The lab will include polymerase chain reaction technology to conduct DNA testing; DNA fingerprinting equipment; and a multimedia projector for the classroom. As a result, students entering the new semester will be able to use their own cheek cell DNA to do their own testing.