PASADENA, Calif. – Wescom CU announced yesterday it is expanding its business hours starting this week to include Sunday hours. In addition, branches will be open until 7 pm on weekdays. Darren Williams, president of the $3.7 billion credit union, said expanded services to members was the most important factor in opening Sundays, but also the fact that Wescom has 16 branches located in grocery stores, for which Sunday is the busiest day. Wescom believes it is the only southern California financial institution open on Sunday across its entire service network.

KENSINGTON, Md. – The process to convert Lafayette FCU into a mutual savings bank, then to stock form, stretches back several years, long before directors and managers of the $330 million credit union informed members. In fact, directors and management at the suburban Washington, D.C., credit union began exploring the charter switch as long ago as 1998, soon after BUCs FCU, in nearby Owings Mills, Md., converted to bank, according to one individual who participated in the review. “They knew a long time ago the money that could be made,” said the individual, who no longer works at the credit union. But the conversion proposal only began gathering steam after Michael Hearne, who was working as a consultant to CUNA on a proposal for a project with the U.S. Small Business Administration, moved from the credit union’s board to become its president and CEO, the source said. Lafayette reported to NCUA that its members approved the conversion to bank and is awaiting NCUA’s certification of the vote, believed to be the closest ever for a credit union conversion to bank. Lafayette officials have refused to share the vote count with members, more than two weeks after completion of the 90-day ballot.

LAKE JACKSON, Texas – TDECU, formerly Texas Dow Employees CU, celebrated its 100,000th member by giving him 100,000 pennies–$1,000. “This couldn’t come at a better time–my girlfriend told me to join TDECU because of their great rates and benefits and she couldn’t have been more right,” said member number 100,000 Mario Garcia, who also induced his mother and sister-in-law to join the credit union. The 51-year-old credit union also recently hit the $1 billion mark in assets.

BALTIMORE – Municipal Employees CU of Baltimore announced yesterday it paid its members a year-end dividend of $4.25 million–the 25th year in a row it returned funds to members. Loan interest rebates were deposited into members share accounts on December 1, 2006 and the extraordinary dividends were deposited on December 31, 2006. The amount that each member receives depends on the amount of interest he or she paid on loans over the past year, and the amount of dividends received on deposit accounts. MECU has more than $800 million in assets and 83,000 members.

WASHINGTON – The National CU Foundation took over management of the REAL Solutions Program yesterday in anticipation of a nationwide roll-out of the program aimed at delivering new products and services to the underserved. In the first quarter of the new year dozens of credit unions in 12 new states are expected to embrace the program that has helped credit unions in Wisconsin, Ohio and Maryland deliver innovative payday loan, check cashing, home ownership and financial education initiatives. Over the next three years the Foundation, which took the program over from the Filene Research Institute, plans to expand REAL Solutions to as many as 2,000 credit unions in 33 states. To facilitate the changeover, REAL Solutions program director Lois Kitsch and program administrator Jeff Purvis have transferred from Filene to become employees of the Foundation and they are recruiting a team of field coaches who will work with leagues to help credit unions attract new members in their states. The national roll-out comes as credit unions are coming under increasing pressure from Congress to expand their services to the underserved and to document their service. A debate over whether credit unions should be monitored for the service to the underserved, perhaps under the Community Reinvestment Act, is expected to take place during the debate over the CU Regulatory Improvements Act, which will be introduced in the new Congress over the next few months.

PORTLAND, Ore. – A 43-year-old leader of a large-scale identity theft ring was sentenced to eight years behind bars last week for her role in the operation which siphoned an estimated $150,000 from innocent victims and area financial institutions–including Portland Teachers CU–by stealing purses, wallets, personal identification, checks, credit cards and other items from dozens of innocent victims. Prosecutors said Carol Crane and her ring used the stolen documents to make purchases and tap into the accounts of as many as 80 victims. Among the victims was a Lutheran pastor who left his credit cards in his desk while he held a Sunday service, and a preschool teacher who left her wallet in a closet during a music class. The Pastor said during the time it took him to conduct the service the thieves had already made $2,500 in transactions, including a withdrawal of $500 in cash at a casino. Six other individuals involved in the ID ring have also been sentenced.

WINSTON-SALEM, N.C. – Tom Welch, who guided Piedmont Aviation CU through the takeover of its sole sponsor, then the bankruptcy of its major sponsor, US Airways, retired January 1, after 33 years in the pilot’s seat. Welch, who worked in financial services for 47 years, will be succeeded by Judy Tharp, vice president of strategy and solution development at CUNA Mutual Group. Welch, who became president and CEO of the credit union for the tiny airline in 1973, grew the credit union from $5 million in assets and 3,500 members to more than $225 million and 87,000 members. During that time the credit union has expanded its market from Piedmont Aviation, then US Airways, to encompass 79 select groups, helping it to weather the financial difficulties in the aviation industry.

FLINT, Mich. – A man charged with robbing two branches of Security FCU and preparing to rob a third–all on the day after Christmas–has a master’s degree and once worked as an executive at General Motors. Authorities said 58-year-old Alvin Parker suffers from mental illness and substance abuse. Parker was arrested while he was in a car with three other people after he was locked out of a third Security FCU branch by employees who recognized him by a description from the day’s earlier hold-ups. Parker was convicted in 2004 of charges related to a robbery at Bank One and served time in a residential treatment center for substance abuse. He is supposed to be on medical condition for a medical condition, police said during his arraignment last week.

FIFE LAKE, Mich. – Rodney Larr, founder and original president/CEO of Forest Area FCU, will retire as president/CEO on Jan. 4, after 23 years of service. Larr founded the credit union in 1983 in the back of a small bait shop on the shores of Fife Lake, Mich. The credit union now has $60 million in assets, four offices and an ROA of better than 2%. Senior Vice President Merri Nixon, a member of Forest Area FCU staff for more than 20 years will be succeeding Larr as president and CEO.

EDMONDS, Wash. – Jack Dublin, a long-time Michigan and international credit union operative, and one of the last living connections to credit union pioneers Edward Filene and Roy Bergengren, died last month at his home, at 91. Dublin began work in credit unions when he joined the Federal Credit Union Section, then the federal regulator, in the 1930's, and went on work for the Michigan CU League and the World Council of CUs, with which he helped develop credit unions in East Africa. He wrote a credit union history of East Africa, based on his African travels; Credit Unions in a Changing World: The Tanzania/Kenya Experience. He also was the author of Credit Unions: Theory and Practice. In 1991, Mr. Dublin was honored with WOCCU’s Distinguished Service Award. He retired to Washington State in 1975, but continued to volunteer and serve as a mentor within the credit union movement through the end of his life, according to the Michigan league.

LAUREL, Md. – The board of Tower FCU, the credit union for the top-secret National Security Agency, made public a resolution committing to remaining a credit union, and approved tough new rules that would make it very difficult to convert to a bank, a so-called poison pill. “Tower’s Board of Directors and Senior Management are strongly committed to retaining Tower’s credit union charter for the long-term benefit of its members,” said Chairman George Cumberledge, noting the growing number of credit unions converting to banks, including some in the Washington area, an allusion to the ongoing controversy at nearby Lafayette FCU. Under new bylaws approved by the board, any proposal to convert to another form of financial institution must be requested at a special meeting upon the written request of at least 500 members. A member request to put the question to the Board must be approved by a majority of attendees to the special meeting. The $1.5 billion credit union will inform its members of its commitment to remain a credit union and explain why it is important to understand the differences between credit unions and banks.

SALT LAKE CITY – A seven-year-old second grader hugged her new puppy as employees and members of Utah Central CU helped make Christmas come true for 520 needy students at Lincoln Elementary School. For the 10th year in a row, the credit union replied to students’ requests made in October for essential and other gifts and members and employees fulfilled their wishes. The gifts included everything from school supplies, to games, to Barbie dolls, to a puppy from the local pound–named Spot.

ALEXANDRIA, Va. – NCUA told Lafayette FCU it won’t be able to fully certify the controversial vote to convert the $330 million credit union to a bank by Tuesday, the credit union’s self-imposed deadline. NCUA rules require the agency to make a determination on a conversion vote within 10 calendar days after the vote has been submitted. But because the vote was submitted on the Friday before Christmas, NCUA had fewer than four working days to review the ballot, even while many agency staffers were taking year-end vacation and leave days. And NCUA attorneys are also reviewing complaints by members over the vote, believed to be the closest ever for a conversion to bank. Lafayette officials still refuse to share the vote count–even with members–more than two weeks after culmination of the 90-day ballot.

AHOSKIE, N.C. – State Employees CU joined local school representatives to break ground on a 24-unit affordable housing project aimed at attracting more teachers to this low-income rural county in the northeastern corner of the state. The SECU Foundation, which is funded by members of the state’s largest credit union, is providing a $2 million no-interest loan to build the project. The SECU Foundation will recycle the rent money to build similar projects to help attract teachers in other underserved parts of the state. The apartments, slated for occupancy next July, are located a short walk from the local elementary and high schools. Rent is supposed to be $500. The Hertford County school system has had difficulty recruiting and retaining good teachers because of the lack of good affordable housing in the area. The SECU Foundation is one of the biggest charitable funds created by a credit union and provided more than $6 million in college scholarships each of the last two years to every state college and university in North Carolina.

FORTH WORTH, Texas – Members of American Airlines FCU got some fast help paying off their Christmas bills with the credit union’s annual year-end bonus dividend–more than $8 million this year. The post-Christmas bonus was credited to members accounts on Saturday. The bonus dividend was based on dividends earned on qualifying savings accounts and/or interest paid on applicable loans in 2006. The rate on the dividends was calculated at 2.5%, as was the rate on interest paid. American Airlines FCU has more than 205,000 members and some $4.2 billion in assets.

SAN FRANCISCO – The Federal Home Loan Bank of San Francisco, which pays one of the best dividends among FHLBs, said yesterday it plans to raise its fourth quarter payout to 5.37%. That’s up from the 4.67% paid in the fourth quarter last year, but down slightly from the 5.54% paid in this year’s third quarter. The San Francisco Bank has about 340 members, including some 40 credit unions.

CALABASAS, Calif. – A leading plaintiffs lad firm filed a class action suit yesterday charging Countrywide Financial Corp. and top executives with backdating of millions of dollars in stock options. The suit, filed by Stull, Stull & Brody, claims that certain current and past executives and directors of the mortgage banking giant manipulated the prices of stock option grants by changing dates in order to reap maximum benefits. Countrywide CEO and co-founder Angelo Mozilo has been one of the best paid executives in a publicly held company over the past two years in which he has realized more than $200 million in profits on hist stock options, including $119 million in 2005 and more than $85 million so far this year, according to documents filed with the Securities and Exchange Commission. Several other top Countrywide executives have also reaped millions of dollars in gains on the exercise of their options during that period.

ALEXANDRIA, Va. – NCUA said it approved 26 credit unions mergers last month, many of them among the biggest combinations of the year. They include: Travis FCU, Vacaville, Calif. ($1.6 billion) with Napa Schools FCU, Napa, Calif. ($15 million); Teachers FCU, Farmingdale, N.Y. ($2.1 billion) with RCU-1500 FCU, Queens ($8 million); Founders FCU, Lancaster, S.C. ($1.2 billion) with GT&R Employees N.C. FCU, Charlotte, N.C. ($16 million); Achieva CU, Largo, Fla. ($525 million) with Gulf Shores FCU, Clearwater, Fla. ($20 million) and Sacramento CU, Sacramento, Calif. ($330 million) with Golden State CU, Sacramento ($21 million). Toledo Area Community CU, in Toledo, Ohio ($340 million), also received approval for two mergers, with Knox County Community CU, Mt. Vernon, Ohio ($6 million) and Rexroth Employees CU, Wooster, Ohio ($1 million).

ALEXANDRIA, Va. – A former teller at Hudson Valley FCU was barred from the credit union industry for a worldwide Internet money laundering scheme he used to disguise his theft of almost $100,000 from a member’s account, NCUA said yesterday. Twenty-year-old Christopher Renzo, was convicted in April of grand larceny for siphoning $98,005 from a member’s account, then transferring the money to banks in China, France and Spain before converting it into electronic money orders. He then had the funds deposited into his own account.

McLEAN, Va. – Long-term mortgage rates rose again slightly this week, for the third week in a row, according to Freddie Mac. Financial markets were concerned that stronger spending could keep inflation elevated, Frank Nothaft, Freddie Mac chief economist, said in a news release. These worries were further compounded by the releases of new- and existing-home sales for the same month, which both exceeded market forecasts and caused Treasury bond yields to continue to rise. The average for the 30-year, fixed-rate loan moved to 6.18% this week, from 6.13% last week; while the average for the 15-year, fixed-rate mortgage climbed to 5.93%, from 5.89%. ARM rates also rose slightly, with the one year ARM average moving up to 5.47%, from 5.44% last week; and the five-year ARM average rising to 5.98%, from 5.96%.