Around the States: Recent News Stories
Apr. 26, 2024 Stories
- Wisconsin Credit Union League President & CEO Brett Thompson Announces Retirement at Yearend
- Massachusetts Credit Union Warns Members of Data Breach That Exposed Personal Information
- Financial Literacy Initiatives on The Rise in America’s High Schools
- Michigan’s Genisys CU Again Named Among Best Performing
- Oregon’s OnPoint Community CU Donates $100K to Support Environment, Natural Resources
Wisconsin Credit Union League President & CEO Brett Thompson Announces Retirement at Yearend
After nearly 23 years serving as The Wisconsin Credit Union League’s (The League) President & CEO, Brett Thompson has announced his plans to retire in December 2024. The League’s Board of Directors has begun a nationwide search for a successor with Humanidei.
“It’s been an honor of a lifetime serving Wisconsin’s credit unions,” said Thompson. “I am excited to see what the future holds for a Movement with such talent and dedication behind it.”
Highlights during Thompson’s tenure include the opening of The League’s Credit Union House in Madison, the formation of The Wisconsin Credit Union Foundation which has now provided over $1.76 million to promote the wellness of credit unions and the communities they serve, and the development of Reach Business Lenders® to help credit unions source and originate commercial loans.
In addition, Thompson has served on the Boards of the American Association of Credit Union Leagues (chair), Credit Union House (chair), and the National Credit Union Foundation, as well as CUNA’s Executive, Corporate Governance, and Government Affairs Committees. He has received the American Association of Credit Union League’s Farley and Eagle awards. Read more
Massachusetts Credit Union Warns Members of Data Breach That Exposed Personal Information
Some local federal credit union members are being asked to check their bank statements after a data breach in February that exposed customers’ Social Security Numbers, among other personal details.
Direct Federal Credit Union says their vendor, Wescom Resource Group (WRG), notified members of a security incident where member names, Direct Federal account numbers, and Social Security Numbers may have been compromised.
It is unclear how many members were affected by the breach. Read more
Financial Literacy Initiatives on The Rise in America’s High Schools
Earlier this year, the state of Washington’s House of Representatives unanimously adopted House Bill 1915 (HB 1915), a bill that would require high school students to complete a financial education course as a statewide graduation requirement beginning in the 2027-28 school year.
True to the credit union movement’s century-long dedication to financial literacy, inclusion, and education, including community outreach to local schools, House Bill 1915 is supported by Washington’s 58 credit unions.
Passing this bill would mark a turning point in the way the state’s youth begins their lifelong journey in personal finance, and how teachers and parents can begin to incorporate financially healthy concepts, however basic, into their children’s daily lives. Read more
Michigan’s Genisys CU Again Named Among Best Performing
Genisys Credit Union has been ranked 24th in Best Performing Credit Unions in the U.S. by S&P Global Market Intelligence.
For four years in a row, Genisys Credit Union has ranked in the Top 25 in the nation. Credit unions were evaluated using financial performance metrics, including member growth, shares and deposits per member, net worth as a percentage of total assets, delinquent loans as a percentage of total loans, and return on average assets for a 12-month period ending Dec. 31, 2023. Read more
Oregon’s OnPoint Community CU Donates $100K to Support Environment, Natural Resources
In celebration of Earth Day 2024, OnPoint Community Credit Union donated $100,000 to local nonprofits working to preserve and protect the environment, natural resources and wildlife in Oregon and southwest Washington.
The donation is part of OnPoint’s Green Horizons initiative, which launched in 2021 to help empower the credit union’s members and employees to care for the planet. This year’s beneficiaries are The Nature Conservancy in Oregon, Friends of Trees, McKenzie River Trust and Columbia Slough Watershed Council. Each organization will receive $25,000. Read more
Apr. 19, 2024 Stories
- NY Bankers Seek Regulatory ‘Pause’ in Credit Union-Bank Merger
- Washington State, “True Lender” Law Signed, Effective June 6, 2024
- New Mexico’s U.S. Eagle Opens Branch in Underserved Area
- New Hampshire Credit Union Hopes Gift Cards Will Give It an Edge
NY Bankers Seek Regulatory ‘Pause’ in Credit Union-Bank Merger
David Baumann, Washington Credit Union Daily
New York banking trade groups are asking the New York Department of Financial Services to “pause” the first-ever merger between a credit union and bank in the Empire State, in order to conduct an extensive investigation of the proposed deal.
In a letter last week, the presidents/CEOs of the New York Bankers Association and the Independent Bankers of New York State asked Adrienne Harris, superintendent of the New York Department of Financial Services, to delay the merger of Catskill Hudson Bank and the Hudson Valley Credit Union. Under the merger, announced in January, customers of the bank would become members of the credit union.
“We believe this acquisition warrants careful and transparent consideration and scrutiny due to the recent significant shifts within the credit union industry, particularly their unchecked expansion and continued exemption from most taxes and the Community Reinvestment Act,” Claire Cusack, head of the New York Bankers’ Association and John Witkowski, chief of the Independent Bankers of New York, wrote in their letter. Read more
Washington State, “True Lender” Law Signed, Effective June 6, 2024
John Culhane Jr., Mindy Harris Mindy Harris, & Ronald Vaske Ronald Vaske; Ballard Spahr LLP
After its passage by the Washington state legislature, Substitute Senate Bill (SSB) 6025, the Washington “predatory loan prevention act”, was approved by Governor Jay Inslee on March 25, 2024, with an effective date of June 6, 2024.
Unlike the original version of this act proposed in Senate Bill 6025 and its identical companion bill, House Bill 1874, SSB 6025 as enacted does not include language expanding the definition of “loan” under the Washington Consumer Loan Act. The definition of “loan” remains “a sum of money lent at interest or for a fee or other charge and includes both open-end and closed-end loan transactions.” Rev. Code Wash. § 31.04.015 (14).
However, the originally proposed amendments to the Washington Consumer Loan Act discussed in our prior blog, adding “anti-evasion” and true lender recharacterization provisions, generally remain in place in the law as enacted. New subsections (2) and (3) of Rev. Code Wash. § 31.04.025 provide:
(2) A person may not engage in any device, subterfuge, or pretense to evade the requirements of this chapter including, but not limited to: Making loans disguised as personal property sale and leaseback transactions; disguising loan proceeds as a cash rebate for the pretextual installment sale of goods or services; or making, offering, assisting, or arranging a debtor to obtain a loan with a greater rate of interest, consideration, or charge than permitted by this chapter through any method, including mail, telephone, internet, or any electronic means regardless of whether the person has a physical location in the state. Read more
New Mexico’s U.S. Eagle Opens Branch in Underserved Area
Jim DuPlessis, Credit Union Times
The Albuquerque CU names the branch for a former board member who advocated for “members of modest means.” U.S. Eagle Federal Credit Union of Albuquerque, N.M., on Thursday opened a new branch to serve the city’s underserved South Valley and Mesa Del Sol communities.
The Herrera Isleta Branch was named to honor Kenneth E. Herrera, who served on the credit union’s board from 1981 to 2021.
A news release from U.S. Eagle ($1.5 billion in assets, 93,284 members) said Herrera “championed the needs of the underserved and members of modest means. One of his passions was to ensure that U.S. Eagle provide the South Valley neighborhood with the financial products and services they need and deserve.”
“For 40 years, he made a difference at U.S. Eagle by playing an integral part in our growth and driving our ‘people mean more’ philosophy by helping to improve the quality of life in the communities we serve,” President/CEO Marsha Majors said. Read more
New Hampshire Credit Union Hopes Gift Cards Will Give It an Edge
Frank Gargano, American Banker
A gift that keeps on giving: Consumer purchases of gift cards were projected to top $200 billion in 2023, up from $87 billion in 2009. Bellwether Community Credit Union in Manchester, New Hampshire, is doubling down on its partnership with the New York-based advertising technology firm Prizeout to help its members earn cash back when they purchase gift cards through its digital banking platforms.
Consumer purchases of gift cards across the U.S. have continued to grow over the last 15 years. Data published last year by Statista Research forecasted that sales would reach roughly $204 billion in 2023 — up from $87 billion in 2009. Last year, PayPal and Affirm began working with gift card distributors on building out new product lines in the hopes of capitalizing on this growth.
Consumers pushing towards digital tools have helped drive the popularity of gift cards over the last few years, causing interested bank and credit union executives to adapt their strategies for marketing the products to buyers, said David Shipper, strategic advisor in Datos Insight’s retail banking and payments practice.
When the $600 million-assets Bellwether began its partnership with Prizeout in January of last year, the credit union’s leaders were in search of a product that would help distinguish their organization from other local players and provide members with more ways to safely purchase gift cards. Read more
Apr. 12, 2024 Stories
- If NY’s AG Is Right, Then We Are All Doing Something Seriously Wrong
- 2024 Hall of Leaders Spotlight: Marvin Cashman
- Washington DFI Releases a Bulletin on Succession Planning
- See How Louisiana Is Applying Its Hurricane Strategy to Cybersecurity Threats
- CFPB Comment to Illinois Joint Committee on Administrative Rules on the State’s Proposed Community Reinvestment Act Rules
If NY’s AG Is Right, Then We Are All Doing Something Seriously Wrong
Credit unions in New York State could be on the hook for billions of dollars in additional unauthorized transfer costs.
There’s been a lot of national news lately about pending court cases in New York City, but you may not have heard about the one that is important for credit unions on a national level.
Late last week, CitiBank filed a motion to dismiss the lawsuit. It makes a compelling argument that the AG’s argument amounts to a radical reinterpretation of existing law that would expose financial institutions to billions of dollars in losses and make the existing framework for wire transfers obsolete overnight. Although this decision would only apply to the Second Circuit, you don’t have to be Nostradamus to see that it would end up being litigated across the country.
In 1978, Congress passed the EFTA. Most importantly, the statute caps liability for unauthorized transfers involving a consumer account. However, even as it passed the law, Congress created a distinction between wire transfers, which are generally transfers using the Fed wire system and similar networks, and transactions covered by the EFTA. This distinction was absolutely critical since financial institutions did not want to be on the hook for the huge amount of money facilitated by the Fed on a daily basis. See 15 USC §1693a(7)(B). Read more
2024 Hall of Leaders Spotlight: Marvin Cashman
FORMER PRESIDENT/CEO, BOARD CHAIR Metro Credit Union
While leading Metro, Marvin opened new branches, completed numerous mergers, installed state of the art technology, and established a corporate headquarters in Chelsea, a location that is still home to Metro today.
Marvin, a respected leader in the credit union industry, served on a multitude of industry wide organizations including, Director and Chairman of the Board of the Massachusetts Share Insurance Corporation, a member of the Legislative Committee of the Massachusetts Credit Union League and Trustee and Clerk of the Credit Union Employee Retirement Association. Read more
Washington DFI Releases a Bulletin on Succession Planning
The credit union system continues to experience an ongoing trend of consolidation. Inadequate succession planning is often a reason for credit
union consolidations, especially in smaller credit unions. Succession planning is critical to the continued operation of credit unions, especially those with senior leaders who may be retiring soon. A credit union’s failure to plan for the transition of its management and board officials could come with high costs. Conversely, good succession planning confers a variety of benefits, including ensuring organizational stability and viability over the long term.
Succession Planning for Key Management Positions
On recent examinations, examiners are identifying more credit unions with staffing shortages in key management positions because of planned retirements and an active job market. While it has always been important for credit union Boards of Directors and management teams to plan for the potential departure of Chief Executive Officers (CEOs), it is increasingly important to identify and plan for the potential departure of other key management positions. This trend was also identified by the National Credit Union Administration and succession planning was included in their 2023 Supervisory Priorities. Read more
See How Louisiana Is Applying Its Hurricane Strategy to Cybersecurity Threats
Louisiana has seen its fair share of natural disasters over the years, with each event from 1980 to 2024 exceeding $1 billion in losses, according to the National Centers for Environmental Information. And, as Route Fifty reports, Louisiana is now grappling with a new disaster—cybersecurity attacks.
Over the past five years, the state has experienced several debilitating cyberattacks, including a ransomware attack in 2019 that hit several public school systems, another that same year in New Orleans and an incident last year where five state colleges were notified that their networks were compromised. The costs to mitigate these attacks and recover from them is steadily rising. In FY 2020, the state paid $2.3 million to respond to cyberattacks, but by FY 2022, recovery costs had reached $14.4 million.
Louisiana’s solution is to apply to cyberattacks the same approach it uses when dealing with natural disasters. When disaster strikes, a host of state and local agencies spring into action and are supported by federal agencies, such as the Federal Emergency Management Administration. Read more
CFPB Comment to Illinois Joint Committee on Administrative Rules on the State’s Proposed Community Reinvestment Act Rules
On behalf of the Consumer Financial Protection Bureau (CFPB), I am pleased to submit this comment regarding the Illinois Department of Financial and Professional Regulation’s (IDFPR’s) proposed rules for the state’s Community Reinvestment Act (CRA).
By way of background, I serve as the CFPB’s Deputy Director. I also serve as the CFPB’s representative on the Appraisal Subcommittee of the Federal Financial Institutions Examination Council. Since April 1, 2022, I have served as Chair of the Appraisal Subcommittee, which has recently held the fourth in a series of hearings on appraisal bias.
The CFPB’s work intersects with topics related to state Community Reinvestment Acts in a number of ways. The CFPB has conducted extensive analysis and research on access to credit across a range of products, including mortgage lending, small business lending, and others. One recent analysis of note is the CFPB’s report on state CRA laws, which highlighted the importance of these laws to ensure that financial institutions’ lending, services, and investment activities meet the credit needs of their communities.1 The report also identified how an institution’s compliance with federal consumer financial protection laws are incorporated into state CRA evaluations. Additionally, the CFPB has regulatory authority with respect to the nation’s mortgage lenders and supervisory and enforcement authority over many such lenders, both depository and non-depository, for compliance with applicable consumer protection laws. Read more
Apr. 5, 2024 Stories
Congratulations to Gigi Hyland, Executive Director of the National Credit Union Foundation, on her upcoming retirement! Her heartfelt dedication and passion for helping others will be greatly missed.
Opinion: For Colorado, Giving Banks the Option to Sell to Credit Unions Makes Good Economic Sense
During this legislative session, the Colorado General Assembly would consider a sunset bill (House Bill 1351) for the Division of Banking and the State Banking Board that includes a recommendation from the Department of Regulatory Agencies, or DORA, that the banking code be amended to allow banks to sell their assets to credit unions. In an initial hearing, the House Business Affairs and Labor Committee agreed this makes sense for Coloradans, and the committee voted 7-4 Wednesday in favor of moving it forward.
Lawmakers should support this change, which could benefit Coloradans by allowing more choice in the marketplace and allow more of the selling bank employees to keep their jobs and ensure local financial products and services remain available, especially in rural economies. In the 46 other states where banks can sell their assets to credit unions, the purchasing credit union was more likely than a bank buyer to keep the bank’s local branches open, retain its employees, and maintain a community-focused approach. Those are the primary reasons former CEOs of banks cited as their reasons for selling to credit unions in a survey by America’s Credit Unions.
Colorado’s credit unions serve 36% of the state’s population (2.5 million consumers), and their cooperative structure inherently holds them accountable to their members and their communities. The foundational “people helping people” philosophy is reflected in a strong focus on serving the underserved. Read more
Florida Cannabis Attorneys Prepare for More Work If Voters Approve Recreational Marijuana This Year
What You Need to Know
- The Florida Supreme Court approved a ballot initiative in November that would ask voters whether to legalize recreational marijuana.
- Because the state has a vertical system in place for cannabis operators, the initiative would benefit a select group of vendors.
Several Florida cannabis law practitioners are optimistic that the state’s voters will opt to legalize recreational marijuana in November after the state’s Supreme Court on Monday approved an amendment putting the measure on the ballot.
If the measure goes into effect, lawyers in the space are expecting volume to rise as more money and new operators are set to flood the Florida market following the initiative’s potential approval.
Back in 2016, Florida voters approved a ballot initiative to legalize medical marijuana for patients with a physician’s approval. Since then, the expansion of Florida’s medical cannabis industry has experienced massive financial gains, giving local sector lawyers a boost in volume as well. Read more
Credit Union to Buy Second Bank, Expand in Washington State
Sound Credit Union in Tacoma, Washington, agreed to acquire Washington Business Bank in Olympia.
The cash deal, expected to close in the fourth quarter, would bolster the $2.9 billion-asset credit union’s presence in Olympia and expand its commercial lending capabilities. The $105 million-asset Washington Business Bank provides deposit, lending, and cash management services to commercial clients as well as deposit products for retail consumers.
“Washington Business Bank has served as a cornerstone for local business owners for more than 20 years,” said Don Clark, president and CEO of Sound. “We look forward to providing these new members the same level of excellent service, an expanded suite of products and services, as well as all the benefits membership in a credit union brings to help their businesses and families thrive.”
Shareholders of Washington Business Bank would receive between $34-$36 in cash for each share of common stock they own, subject to certain adjustments at closing.
The combined institution would have approximately $3 billion of assets, $2.3 billion of loans and $2.5 billion of deposits. It would have more than 170,000 members and 27 branches throughout King, Pierce, Snohomish and Thurston counties of Washington. Read more
Mar. 29, 2024 Stories
Minnesota Commerce Dept. Issues Charter for Minnesota’s First Black-led Credit Union
An eight-year journey is paying off.
Arise Community Credit Union is the first new state-chartered credit union in Minnesota in 23 years and first Black-led credit union in the state’s history.
“If you know that you might be able to help solve the problem, you can’t walk away,” said Debra Hurston, executive director of the Association for Black Economic Power (ABEP).
The organization started in July 2016 in the wake of several police killings, including the death of Philando Castile. ABEP’s main goal was establishing a Black-led community credit union in north Minneapolis.
According to an analysis by the Federal Reserve Bank of Minneapolis using data from the Home Mortgage Disclosure Act, an applicant of color is more likely to have their application denied than a white applicant with the same income and credit score when applying for a conventional mortgage of the same size for a similar home.
“We decided to come up with a solution and that’s the credit union,” Hurston said.
Arise Community Credit Union is the first new state-chartered credit union in Minnesota in 23 years and the first Black-led credit union in the state’s history. Read more
Massachusetts Money Transmission Bill Protects Consumers, Levels Regulatory Playing Field
Payment Apps Get Regulated, Users Safeguarded at State Level
Venmo, PayPal, CashApp. Chances are you are using a money transmission platform like these, or someone you know is. In 2022, Massachusetts residents transmitted an astounding $22 billion in 172 million peer-to-peer payments across the state and nation – with zero state regulatory oversight.
Those using these platforms may think their transactions are protected by a federal regulator such as the Federal Deposit Insurance Corp. or the Federal Reserve. They are not. The reality is that state financial regulators are the authority for this activity – but not here in Massachusetts.
The Massachusetts Division of Banks (DOB), where I serve as commissioner, currently licenses and examines companies which transmit money to foreign countries only (by statute). However, there is no regulatory oversight in the commonwealth for transfers of money between individuals or entities within the United States, commonly referred to as “domestic” money transmissions. This means, for example, that if your account is hacked or your money transfer is compromised in any way, you are not protected by state oversight and there is little that can be done to right the wrong.
It is worth noting that domestic transmission activity dwarfs the regulated space of foreign transmission, where just $10 billion was transmitted in 32 million transactions, according to NMLS call reports reviewed by DOB staff. So, in Massachusetts, the existing regulatory framework accounts for only 12 percent of the total transaction volume and just 27 percent of the total dollars transmitted. Read more
Tennessee Credit Unions Support Children’s Miracle Network Through CU4Kids
Whether your child sticks a LEGO Olaf nose up their nose or perhaps needs ongoing pediatric health care, Tennesseans are fortunate to have five children’s hospitals throughout the state.
Since 1996, credit unions across the nation have supported Children’s Miracle Network Hospitals through the Credit Unions for Kids (CU4Kids) program. Tennessee credit unions have been champions for the organization to help create a healthier, happier future for families and communities for years to come.
Tennessee credit unions and League-Chapters have already begun hosting events to support CU4Kids in 2024.
Throughout the fundraiser, Short said, “Members and team members repeatedly commented, ‘We are blessed to have available in our own community such a high level of care for our children.’”
Through USFCU team member donations, $1,000 was raised to benefit Niswonger Children’s Hospital. US Community Credit Union and Enbright Credit Union collaborate to host the CU4Kids Golf Classic, which is now in its 15th year. Read more
Mar. 21, 2024 Stories
Opinion: Overdraft Protection is Not a Junk Fee. It’s a Convenience for Informed Connecticut Consumers
You’re out to dinner at a steakhouse with friends; you’ve been waiting for this meal all day, and you’re hungry. You see the calorie counts and prices on the menu and prepare to indulge and splurge. The server then informs you that there is a 50 percent service fee you previously didn’t know about. You find this to be ridiculous because, unlike the calorie count, the fee was 100% hidden prior to ordering your food. Pure junk.
You begrudgingly pay the fee, knowing you’re actually buying nearly two entire days’ worth of calories in one meal. But as you pay, you realize you forgot to check your account balance, and now you’re overdrawn.
The silver lining? You added a service called overdraft protection to your checking account. That’s where, for a fee, your payments get honored even when you’re overdrawn. So you were able to pay for this meal without being embarrassed at dinner. That is decidedly not junk.
Where Strategy Meets Innovation
IC Credit Union in Massachusetts serves as an example for how credit unions must embrace new digital tools.
It was our pleasure to have a stimulating conversation this month with Chris Hendry, president/CEO of IC Credit Union ($618 million, Fitchburg, Mass.). In addition to our firm having the honor to work with this exceptional organization on both governance and strategy, we are proud of this credit union’s achievements in focusing on the best interests of its 35,000 members. We also congratulate Chris on being named CEO of the Year in 2022 by the Cooperative Credit Union Association.
As researched by Filene Research Institute in their second Credit Union Innovation Success Study conducted in partnership with the American Innovation Index, which measures innovation in the overall U.S. economy, its most recent survey from 2023, found that credit unions scored above most banks on the subject of innovation, contrary to most perceptions that they are falling behind. Credit unions experienced a slight increase in their innovation index scores and appeared to be doubling down on their innovation efforts.
CFPB Urges N.Y. Legislature to Enact UDAAP Prohibitions
Even as House Republicans try to restrict the Consumer Financial Protection Bureau’s power to initiate enforcement actions based on “Unfair, Deceptive or Abusive Acts or Practices (UDAAP),” CFPB officials are urging the New York State Legislature to pass legislation giving state agencies those enforcement powers.
Consumer protection legislation has been introduced in both houses of the New York legislature and has been referred to committees for their consideration.
In legislative findings attached to the bill, supporters said that state law only protects consumers against deceptive acts, adding that other states have more expansive consumer protection statutes. “The State must not allow bad actors to peddle predatory products and services as long as they are clever enough not to get caught in a lie,” the findings state.
Mar. 15, 2024 Stories
AACUC Announces Future Fund Investment Program
Inducts 2024 African American Credit Union Hall of Fame Honorees
The African-American Credit Union Coalition (AACUC) announced a groundbreaking investment program – the Future Fund – during its African American Credit Union Hall of Fame, where five industry leaders were inducted at the Organization of American States Building in Washington, D.C. during the Governmental Affairs Conference.
The Future Fund is designed to propel the AACUC into a future of sustained impact and influence, especially in communities typically underserved in banking and finance, and is predicated on three consequential pillars:
- Internships and leadership development by building a succession pipeline for the credit union system, while securing the legacy of mentorship and professional development AACUC has established.
- Small credit union sustainability by ensuring the viability and vibrancy of the credit unions that are at greatest risk of mergers, acquisition and member attrition.
- Wealth building and community impact programs by supporting credit unions to establish and sustain initiatives that improve financial access, inclusion and well-being for communities of color. Read more
Element Credit Union CEO Linda Bodie Running for Seat in State’s House of Delegates
Linda Bodie, who is well-known to many in credit unions as the CEO of Element Credit Union, is running for election to the West Virginia House of Delegates. Bodie is on the ballot to represent District 55. The Democratic primary is to be held May 14.
Bodie said her campaign is built on four pillars:
- Transforming education for a brighter future
- A good economy with good paying jobs
- Financial wellness, literacy, and inclusion for every West Virginian
- Equality, equity, and wellness for all
Bodie was most recently inducted into America’s Credit Union Museum’s “Herstory” exhibit. She has also been profiled in CUToday.info for numerous other accomplishments, including pioneering new technologies and success at a smaller ($59.8-million) credit union, and for her work; for being named a Herb Wegner Memorial Award winner for Outstanding Achievement, and for her work with CU*Pride. Read more
MIDFLORIDA Credit Union Spreads Love for Reading with Gift of Reading Program
For the past 18 years, MIDFLORIDA Credit Union has been a beacon of positive influence. Through its Gift of Reading program, the credit union has distributed tens of thousands of books to schools across the state. This annual initiative, rooted in the credit union’s dedication to giving back, focuses on fostering a love for reading among young students.
The Gift of Reading program extends beyond the act of distributing books. It plays a pivotal role in growing future credit union members through youth savings accounts and promoting financial literacy. By actively participating in the educational journey of local students, MIDFLORIDA Credit Union not only enhances literacy but also contributes to the development of essential financial skills among the youth. MIDFLORIDA Credit Union’s Lisa Ashbury shared more with us about this impactful program. Read more
Mar. 8, 2024 Stories
NASCUS Member Reception Photo Gallery Sneak Peek
Thank you to everyone who joined us at the 2024 America’s Credit Unions GAC. We enjoyed having the opportunity to meet with you, identify challenges, and create solutions. The full gallery will be shared in next week’s NASCUS Report.
Credit Union Brand Lessons (inspired by the GAC)
The GAC is one of the biggest events in the credit union industry. It inspires passion and innovation, drawing credit union leaders from all across the country to experience it. Everyone’s there. “Are you going to the GAC?” is a pretty common question this time of year. So, it’s unsurprising that it holds excellent credit union brand lessons. But do those lessons come home with you? Too often, leaders get a “conference high” only to lose the zeal once their feet touch home territory. Here are a couple credit union brand lessons to remember once you’re back at work after an exciting week at the GAC.
CT’s Largest Credit Union Seeks Merger Deal with Hartford-Based CU
In the latest in a string of recent merger deals, Connecticut’s largest credit union is seeking to merge with a Hartford-based not-for-profit cooperative. East Hartford-based American Eagle Financial Credit Union has asked the state Department of Banking for permission to absorb Wellness Federal Credit Union, which was formerly known as Hartford Healthcare Federal Credit Union before it changed its name in 2018. The targeted merger date is May 21, 2024, pending state and federal regulatory approvals. Once approved, Wellness Federal’s two branches, members and employees will become part of American Eagle.
Mar. 1, 2024 Stories
California AG Issues Warning to State-Chartered Banks and Credit Unions On “Surprise Overdraft” And Returned Deposit Item Fees
On February 22, 2024, California Attorney General Rob Bonta issued letters (the “AG Letter”) to California’s 197 state-chartered banks and credit unions warning that overdraft and returned deposited item fees may violate California’s Unfair Competition Law (UCL) and the federal Consumer Financial Protection Act (CFPA). The AG Letter encourages the institutions to review their practices and policies regarding: “(1) surprise overdraft fees, which are assessed even when a consumer cannot reasonably anticipate that a debit or checking transaction will overdraw their account; and (2) returned deposited item fees, which are assessed when a consumer deposits a check that is returned, even when the consumer has no knowledge of or control over the circumstances that caused the check to be returned.”
California’s UCL prohibits unfair, unlawful, and fraudulent business acts and practices. A business act or practice is unfair if the gravity of the harm to the alleged victim outweighs the utility of the defendant’s conduct. Actions under the UCL for any noncompliance with the AG Letter may have significant consequences to small institutions. The UCL permits any person to bring a claim for specific or preventative relief. The UCL sets forth a civil penalty up to $2,500 for each violation in an action brought by Attorney General, District Attorney, County Counsel, and City Attorneys. The UCL further states “[i]n assessing the amount of the civil penalty, the court shall consider any one or more of the relevant circumstances presented by any of the parties to the case, including, but not limited to, the following: the nature and seriousness of the misconduct, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, the willfulness of the defendant’s misconduct, and the defendant’s assets, liabilities, and net worth.”
Congratulations to President and CEO of California and Nevada Credit Union Leagues Diana Dykstra on her upcoming retirement! As a pioneer in the industry, her dedication and impact will be felt for years to come.
California/Nevada Leagues CEO, WOCCU Chair (and More) Diana Dykstra Announces Retirement Date
Diana Dykstra, president and CEO of the California and Nevada Credit Union Leagues, has announced plans to retire later this year after more than four decades of financial services leadership. Dykstra’s retirement date is set for July 1.
Dykstra has had one of the most high-profile careers in credit unions over the past 40 years. Prior to leading the California and Nevada Credit Union Leagues for the past 14 years, Dykstra served as president and CEO of San Francisco Fire Credit Union, president and CEO of CoastHills FCU, senior vice president at Patelco Credit Union, and senior vice president at Golden 1 Credit Union, all in California.
CA and NV Leagues and Utah CU Association Form Alliance
The California and Nevada Credit Union Leagues, together with the Utah Credit Union Association, announced today they have entered into an agreement to form a joint association support services organization.
While each state entity will maintain governance of their respective advocacy operations, non-advocacy related services and back-office functions will be done by the new entity born of the partnership. Leadership from the three states agree the operating model maximizes efficiency while preserving state leagues’ identities, which is critical to advocacy efforts.
This Virginia Bank Wants to Rewrite the Rules for Banking as a Service
MainStreet Bancshares in Fairfax, Virginia, is taking a do-it-yourself approach to technology at a time when partnerships between banks and fintech firms are getting more complicated.
The $2 billion-asset MainStreet has trumpeted Avenu, its banking-as-a-service subsidiary, as a potential game changer since introducing it more than two years ago. At year-end 2023, MainStreet reported $35.3 million of Avenu deposits, $33.5 million of which were non-interest-bearing. MainStreet is forecasting Avenu will reach its projected breakeven point, $225 million of total deposits, this year.
As predictions go, that’s bold. If Avenu hits the target, it will have grown deposits more than 530%. The lion’s share of those deposits, moreover, would be non-interest-bearing, helping set MainStreet apart from an industry grappling with increased funding costs. It could also establish the 2-year-old subsidiary as an alternative to the way many banks have pursued embedded banking, through so-called middleware.
Feb. 23, 2024 Stories
Dietrich Kuhlmann to Assume the Role of Navy Federal Credit Union CEO
Navy Federal Credit Union today announced that Dietrich Kuhlmann will become its next president and chief executive officer on March 1, 2024. He will replace outgoing CEO Mary McDuffie, who announced her retirement in September of last year. Kuhlmann joined Navy Federal in 2019 after retiring from the United States Navy as a rear admiral and has spent the past two years as the credit union’s chief operating officer.
“Following the announcement of Mary McDuffie’s retirement last September, the Board undertook a months-long, rigorous process to identify the best leader for our credit union,” said Ed Cochrane, chairman of the Board of Directors at Navy Federal, which oversaw its CEO selection process. “Dietrich has shown an unwavering commitment to both his country and to his fellow men and women in uniform throughout his extensive career. These experiences make him the ideal person to lead this institution, and we know he will continue to serve our members superbly in the years ahead…”
How Much Does It Cost if a Credit Card Is Used? New NY Law Requires Disclosure
Under a new state law, businesses in New York are now required to clearly post exactly how much their products will cost if customers pay with a credit card, under a new state law that just took effect. The consumer protection law means stores can no longer post a sign on a door and at the register stating that credit card purchases will be subject to surcharges, according to the Associated Press. Instead, they will either need to list the higher credit card price next to a lower cash price, or they can just change the cost of items to the credit card price for everyone, the AP added…
Kentucky Credit Union League Announces Rebranding, Changes Name to Kentucky’s Credit Unions
As part of an extensive rebranding initiative, the Kentucky Credit Union League has announced a fresh identity, complete with a new name and logo. On January 26, 2024, the League Board of Directors officially approved the rebrand to “Kentucky’s Credit Unions,” in line with their mission to promote unity and provide outstanding service to credit unions throughout the state. This rebrand follows the merger of the Credit Union National Association (CUNA) and the National Association of Federal-Insured Credit Unions into America’s Credit Unions…
Beware of Fictitious CDFI Fund Social Media Accounts
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) would like to make the public aware of fraudulent social media profiles, email accounts, and phone numbers that attempt to impersonate or otherwise associate themselves with the CDFI Fund. Although the precise platforms and messages vary, these imposters provide false CDFI Fund employee and contact information, false links to a website alleged to be the CDFI Fund website, and a false telephone number. One social media profile scam identifies a nonexistent grant program, tells the public that it can receive free federal government grant money, and even displays a fictitious monetary disbursement. Therefore, please be cautious when clicking on links attributed to the CDFI Fund…
Feb. 8, 2024 Stories
Why Credit Unions Aren’t Automatically Picking FedNow
In making its pitch to credit unions, the RTP network — which is backed by banks — has to overcome a long-standing rivalry between the two types of financial institutions. But it seems to be doing just that. A growing number of credit unions are adding instant payments to their products and services, and some of them are choosing to use both — rather than either one — of the leading platforms. The Federal Reserve’s instant payments network, FedNow, launched in July and already has enrolled more than 300 financial institutions, including more than 50 credit unions. Read more
In Oklahoma: WEOKIE Discusses Value of Well-Priced Overdraft
One credit union that has markedly dropped its overdraft fee is contending that much of the bad press CUs and ODs are getting is unwarranted, and with many more members now using the service regularly, it is proof of the value of a well-priced overdraft. In August of 2021, the $1.5-billion WEOKIE Federal CU reduced its overdraft charge from $27.50 to $15. Read more
Newsweek: America’s Best Regional Banks and Credit Unions 2024
Regional banks and credit unions play a pivotal role in the financial fabric of communities nationwide. Unlike their larger counterparts, these institutions are deeply rooted in local economies, understanding the unique needs of the people they serve. The community engagement of credit unions extends beyond financial transactions. Many credit unions actively contribute to local initiatives, reinforcing their role as integral community partners. Read more
Corporate Central Celebrates Remarkable Achievement as 49 Employees Attain the CCUFC Designation
Corporate Central is proud to announce that 49 dedicated employees successfully earned the prestigious Certified Credit Union Financial Counselor (CCUFC) designation through the Credit Union National Association (CUNA) in 2023. This remarkable achievement comes as a result of participating in the CUNA Financial Counseling Certification Program (FiCEP). The program includes a series of webinars; learning and understanding the content of the 33-chapter, 5th Edition CUNA FiCEP book; and passing a 2-hour proctored exam. Read more
Feb. 2, 2024 Stories
Georgia on the Mind: An Explainer for Payments Companies Considering the Merchant Acquirer Limited Purpose Bank Charter
In January 2024, one of the largest U.S. non-bank merchant acquirers announced that it is pursuing a special-purpose bank charter developed by Georgia. Although the “merchant acquirer limited purpose bank” (MALPB) has been a charter option for non-bank payments companies for over a decade, non-banks have not been able to fully leverage it because card networks have not allowed them to be direct participants. That prohibition appears to be changing in light of this new application.
As a MALPB, a non-bank company can authorize, settle, and clear payments transactions for merchants and, importantly, enter card networks directly rather than through a bank sponsor. In doing so, a MALPB can own the transactions from end to end and eliminate various third-party risks. But this option also comes at significant costs and with compliance obligations.
This alert discusses some of the most important issues for non-bank payments companies considering the MALPB charter.
Read the full article authored by Venable LLP here.
MN Rep Gives Credit Unions a Shout-Out from House Floor
Rep. Angie Craig (D-MN) spoke on the House floor this week about the role credit unions play in their communities.
She highlighted the work of the 86 credit unions in Minnesota, noting it is estimated that credit unions in the state provided more than $227 million in direct financial benefit. She added that credit unions play a vital role in her district, including their support for local athletic programs, veterans’ organizations, and community events, America’s Credit Unions reported.
Read the full article from CUToday here
Business Coalition Sues California Over Nation-Leading Climate Disclosure Laws
Thousands of large businesses operating in the state would be required to disclose their carbon footprint and climate-related financial risks under the laws. The U.S. Chamber of Commerce and American Farm Bureau Federation led a coalition of business organizations in filing a lawsuit on Tuesday aiming to block California’s two landmark corporate climate disclosure laws.
The measures signed into law by Gov. Gavin Newsom last year would “impermissibly compel thousands of businesses to make costly, burdensome, and politically fraught statements” about their operations around the world, the business groups said in their complaint filed in U.S. District Court for the Central District of California.
The plaintiffs are seeking a ruling blocking implementation of the laws, SB253 and SB261, on grounds that they violate the First Amendment by compelling speech on a “controversial” issue and that California is attempting to act as a de facto national emissions regulator. The Wall Street Journal was first to report the lawsuit.
Thousands of large businesses operating in the state will be required to disclose their carbon footprint and climate-related financial risks under the two first-in-the-nation laws. Notably, SB253 also requires companies to disclose Scope 3 emissions generated throughout their value chains.
Read the full article in Politico here
Advia Credit Union Excited for Future Growth in Illinois
Advia is excited to announce growth in Illinois – bringing additional opportunities to members in northeastern Illinois. The Board of Directors of Advia Credit Union announced that it has signed a definitive agreement to acquire NorthSide Community Bank, headquartered in Gurnee, Illinois, with branches in Gurnee, Mundelein, Niles and Riverwoods.
With this acquisition, Advia will serve approximately 200,000 members with thirty-two (32) branches in Michigan, Illinois, and Wisconsin. In Illinois, there will be a total of seven (7) branches in Gurnee, Mundelein, Niles, Riverwoods, Crystal Lake, Cary, and Woodstock. In Wisconsin, Advia has six (6) branches throughout Beloit, Janesville, Williams Bay, Elkhorn, and Silver Lake. Advia also has a total of twelve (12) branches in West Michigan and another seven (7) in Eastern Michigan.
The transaction, which is subject to regulatory and shareholder approval, and is expected to be completed in the third quarter of 2024, further strengthens Advia’s position within its service area in Illinois, Wisconsin, and Michigan. Currently ranked in the top 3 percent in the nation among credit unions in terms of asset size, Advia will have over $3 Billion in assets and over 550 employees. Founded in 1935, Advia has been serving members for nearly 90 years.
Read the full press release here
Jan. 26, 2024 Stories
Congratulations to Point West Credit Union and NASCUS Credit Union Advisory Council Member Amy Nelson, named one of Inclusiv’s Annie Vamper Helping Hands Award Winners
Amy Nelson is CEO of Point West Credit Union, overseeing the $110 million financial institution serving 14 Oregon counties. Amy’s commitment to advancing financial inclusion for historically marginalized communities has transformed Point West into a beacon of positive change for underserved markets. Her initiatives include expanding lending opportunities for ITIN borrowers and microbusiness owners, earning Low Income (LID), Community Development Financial Institution (CDFI), and ‘Juntos Avanzamos’ designations, and modernizing the cooperative’s community charter. Amy and Point West received industry awards, including the Innovation and Impact Award (Northwest area); CUHeroes, and more. Beyond Point West, she actively engages in financial empowerment, credit union regulatory and political advocacy through GoWest Credit Union Association and the National Association of State Credit Union Supervisors (NASCUS).
“Annie Vamper’s legacy inspires us to continue dedicating our efforts to serving low- and moderate-income individuals,” Nelson says. “True community impact is achieved through the combined strength of passionate teams, supportive credit union and community partners like our local non-profits, Inclusiv and GoWest Association, and our shared commitment to advancing financial wellness for all. This collaborative approach results in a collective impact which unites organizations under the shared mission of community development.”
This year’s awardees are Melissa Marquez, CEO, Genesee Co-op FCU, Amy Nelson, CEO, Point West CU and Kathya Pierre, CEO, 1199 SEIU FCU. Inclusiv is delighted to honor the legacy of Annie Vamper through these incredible CDCU trailblazers. Read more
Banks Fight Back Against ‘Right to Gripe’ Suits
Bank of America and U.S. Bank are fighting back against lawsuits alleging the two banks — in their terms of service — violated a California law that ensures customers have the right to air their grievances publicly.
The suits are part of a wave of recently filed cases that will likely help establish the scope of corporate liability under California’s so-called “Right to Gripe” law. The goal of the law is to protect consumers’ ability to complain online about their experiences with specific companies without the threat of retribution. Read more
Silver State Schools Credit Union and The People Over Profit Foundation Announce 2024 Scholarship Program for College-Bound Nevada High School Seniors
Silver State Schools Credit Union (SSSCU) is now accepting applications for the 2024 People Over Profit (POP) Foundation Scholarships for Nevada high school seniors. Since 1989, more than $1,100,000 in scholarships have been awarded to outstanding students to use toward higher education tuition.Summit Credit Union Announces Success with Join the Huddle Campaign
January 25, 2024 – Summit Credit Union is pleased to announce the success of their fourth annual “Join the Huddle” campaign. In the months of August through December 2023, Summit Credit Union set-up an online auction for tickets to Carolina Panthers’ regular season home games. Each winning bidder was given the choice among five pre-selected charities for where to donate their bid funds. These charities included the Hamilton Scholarship Fund, Susan G. Komen Breast Cancer Foundation, Children’s Miracle Network Hospitals/Duke Children’s Hospital, Backpack Beginnings, and Wounded Warrior Project.
Summit Credit Union also held a “Summit Wears Pink Week” pledge drive in October where staff donated money to wear pink with jeans for the week. Staff raised $485 pledged solely to the Susan G. Komen Breast Cancer Foundation.
In total, Summit Credit Union raised over $4,000 for the Hamilton Scholarship Fund, Susan G. Komen Breast Cancer Foundation, Wounded Warrior Project, Children’s Miracle Network Hospitals/Duke Children’s Hospital, and BackPack Beginnings. 100% of pledges and auction proceeds will be donated to the five charities in January 2024. Altogether, Summit Credit Union’s Join the Huddle campaign has raised close to $15,000 for charity.
“The continued success of our Join the Huddle campaign is a testament to our commitment of giving back to the communities we serve, and we eagerly anticipate the positive outcomes the next charity fundraiser will bring,” stated Sam Whitehurst, President and CEO of Summit Credit Union. “Keep Pounding!”