Must Reads

LEGISLATION

CUs Make a Pitch

WASHINGTON — If banks are getting regulatory relief credit unions deserve the same opportunity.

That’s the message that the leaders of CUNA and NAFCU conveyed at the Nov. 16 hearing on a bill aimed at helping small financial institutions.

CUNA President/CEO Bill Cheney said credit unions and community banks both want to help their communities prosper and the businesses in them to create more jobs. But the regulatory climate facing both types of institutions is too restrictive.

He praised several provisions of the bill but also urged credit unions be included and reiterated his strong support for raising the cap on member business lending.

NAFCU President/CEO Fred Becker said there is a strong Y18

Matz, Senate, White House Fall Silent on Decker Nomination NCUA

CLAUDE R. MARX

cmarx@cutimes.com

OCCUPY

Oregon CU Not ‘Afraid’

As several more mayors moved to shut down Occupy encampments, demonstrators continue to be steadfast in promoting credit unions as the only alternative to banks.

Within the industry, some credit unions have welcomed the endorsement while choosing to keep their distance from the day-to-day sit-ins and demonstrations by Occupiers.

The $92 million Northwest Resource Federal Credit Union hasn’t shied away from Occupy Portland, welcoming many of those who marched downtown on Bank Transfer Day.

“It was just a really good day,” said Jim McCarthy, president/CEO of the Portland, Ore., credit union. “It energized the board and staff. Hopefully, we want to try Y21

hen it comes to the status of Carla Decker’s nomination to the NCUA Following the omission of her name from the Senate Banking Committee’s list of nominees who were scheduled to have a hearing on Nov. 17, there have been no public developments.

The committee hadn’t officially announced that Decker, the president/CEO of District Government Employees FCU, was to be included in the hearing. However, sources within the financial services industry had been told that it would take place.

The plans changed following reports in Credit Union Times about a 2010 NCUA examination of

said they were trying to find a time for a hearing. but there haven’t been any additional announcements.

The NCUA’s examination reports are confidential and aren’t given to the White House as part of the screening process for prospective nominees. However, during the interview, candidates are asked if there is any professional or personal information that if it became known would embarrass the Obama administration or them.

The White House press office did not respond to two emails seeking comment. Though a financial services industry source said administration officials were trying to find a way to salvage the Y22

5% Budget
Hike Is
Approved
NCUA

CLAUDE R. MARX

cmarx@cutimes.com

Decker’s credit union that rated it a
CAMEL 3 and concluded that it was
a “high strategic risk.”
A source close to the committee

ALEXANDRIA, Va. — The NCUA board approved a $236.8 million budget for the agency next year, a 5.1% increase from 2011.

The spending plan, which the board supported unanimously at its Nov. 17 meeting, includes funds for 33 new employees, 26 of which will be for examination-related positions. The new staff will include people with specialties in lending, capital markets, information systems, supervision and troubled institutions. The budget funds 1,259.5 full-time equivalent positions.

The budget increases spending in all major categories except for administrative costs. The largest costs are employee pay and benefits, which represents 72% of the budget, and travel, which represents 11%.

Building Ties That Bind New Members

SERVICES

MICHELLE A. SAMAAD

msamaad@cutimes.com

NCUA Chief Financial Officer Mary Ann Woodson said the travel costs, which will increase by 11%, are mostly related to the costs involved in increased examination activity and the training of examiners.

resh out of college a few years ago, Tyler Leonhardt accepted a position at Bank of America.

He said he is not surprised at how the financial behemoth tried to levy a $5 monthly debit card usage fee.

“At first, when I heard about the fee, I knew exactly what they were trying to do,” said Leonhardt, 26, who is now a loan officer at the

$31 million Carolina Federal Credit Union in Cherryville, N.C.

Indeed, in an October statement on its year-to-date financials, Bank of America acknowledged that it wanted to continue to “focus on the retention of profitable customer relationships.” Several economists and research firms have pointed out customers would have to park on aver-

The Rundown

Y Critics argue former bank customers may not bring other accounts over.

Y Profitability protects equity capital at CUs and banks, expert says.

Y CUs say they are in it for the long haul.

age, at least $24,000 in their checking accounts in order for banks to make any profits from them.

Meanwhile, Leonhardt said he now sees the differences between working at a credit union and a bank. One of them being building relationships based on service, not fees.

With Bank Transfer Day slowly fading into history, many credit unions are evaluating how to turn newly gained members into long-term relationships. Critics have argued that within the nearly Y23

The agency expects to spend $170.8 million on wages and benefits next year, a $7.6 million increase over this year. The added expenses include $6.1 million in additional health and retirement benefits for employees covered by the agency’s labor agreement with the National Treasury Employees Union. In exchange for the added ben- Y20

Corporate
Mergers
Many eyes may be on the fate
of Western Bridge and US
Central, with the NCUA set to
announce what will happen to
them as early as this month,
but that may miss what is
transforming the corporate
credit union world. Y6

New Look At Credit Insurance Think of credit insurance as food in a pantry. And the intensity that CUs are using that supply has increased, says Dan Kaiser. Y16