Life Is A Highway...March 22, 2010

Foundation Board Nominates Three Execs For Board Terms 

The Pennsylvania Credit Union Foundation Board of Directors met Friday, March 19, for its 14th Anniversary Meeting, called to order by Board Chair Diana Roberts.

The Board nominated three credit union executives to serve three-year terms as board members. Ed Williams, CEO, Discovery FCU was nominated for a second three-year term, while Mary Beth Wilcher, Chief Marketing Officer, Erie FCU, and Rick Stipa, CEO, TruMark Financial Credit Union, were nominated for initial three-year terms. If appointed by the Association Board in May, Wilcher and Stipa will replace Denise Kaczmarek and Hugh Bray, respectively, who are leaving the Board after serving two terms. Bray thanked the Board and Executive Director Joe Wambach, for permitting him to serve and participate in Foundation activities during the last six years.

In other business, the Board:

• Formally approved 10 grants valued at $52,373, including six financial literacy grants;
• Approved Foundation Goals for 2010;
• Received a briefing by Foundation grantee Frank Wilson, Executive Director, Housing Opportunities of Beaver Co., regarding mortgage counseling for foreclosure victims;
• Received an update on Haiti disaster relief fundraising and programming activities;
• Reviewed the status of several REAL Solutions projects, including Scranton Microenterprise Lending Program, the Educated Investor Program, and the Better Choice Baseline Data Survey Grant;
• Discussed upcoming Annual Convention & Exposition activities to be undertaken by the Foundation; and
• Expressed the importance of collaboration of strategic planning initiatives by small credit unions as the key to their survival.

Harrisburg Happenings

You can find this week’s edition of Harrisburg Happenings at http://www.pcua.coop/Affairs/Legislative-Publications.aspx. This publication highlights the latest happenings from the state capitol.  

MBL Hits In The News

CUNA has created a catalogue of various articles, audio clips, and media reports on Member Business Lending on its Grassroots Action Page.

For easy reference, click here to find the press materials.

As a sponsor of the member business loan bill, Congressman Paul Kanjorski (D-11) recently encouraged credit unions and state leagues/associations to help “push the ball over the goal line” and help member business loan legislation become law, particularly by reaching out to the local media. Click here to view Kanjorski video. 

2010 Scholarship Winners

The Association congratulates the following 2010 scholarship winners:

Memorial Scholarship to Penn State Judge/Bradley Credit Union School
Angela Bainey, Timberland FCU
Kimberly Bindl, AmeriChoice FCU
Ericka Dominick, Mountain Laurel FCU
Theresa Hilinski, Viriva Community Credit Union
Tiffany Layden, Erie FCU
Janette Line, Belco Community Credit Union
Donna Shultz, Heritage Valley FCU
Donna Tomasone, Mountain Laurel FCU
Jill Tshudy, Belco Community Credit Union

Joseph Hinchey Memorial Scholarship to Penn State Judge/Bradley Credit Union School
Michelle Merkley, Keystone FCU

Josephine Sakovics Memorial to 2010 Annual Convention
Sherry Garner, HD York FCU

William Noble Memorial Scholarship to 2010 Fall Leadership Conference
Abby Achey, Lancaster Red Rose Credit Union 

MBL Portfolio Risk Management Roundtable

April 8, Harrisburg

The Association’s Business Advisory Services will offer a four-hour informational and interactive session on April 8, designed to provide participants with an overview of the challenges and successes in managing their MBL portfolios in today’s unprecedented economy. 

Hear risk mitigation tips and procedures from your peer credit union staffers at our MBL Portfolio Risk Management Roundtable. Learn about specific changes credit union leaders from PA and MD have made in addressing credit quality at loan origination and throughout the life of their loans. Learn what they do to mitigate risk portfolio-wide and on a loan-by-loan basis. 

For more information, contact Molly Snody, Director of Business Advisory Services, at 800-932-0661, ext. 5209, or molly.snody@pcua.coop. 

Toomey Lancaster Meet & Greet

The Toomey for Senate campaign is hosting a Meet and Greet on Wednesday, March 24, at the Lancaster GOP Headquarters from 11:30 a.m. - 12:30 p.m. This will be a great opportunity for you to meet the candidate if you haven’t already done so.   

Toomey for Senate Meet and Greet
Lancaster GOP HQ
902 Columbia Avenue, Lancaster, PA 17603

Newsmakers

Newsmakers

Bradford Area FCU celebrated its 50th Anniversary on Saturday evening at Togi’s. Sis Rinfrette, who has worked at the credit union for 48 years, reviewed the history of the credit union. The credit union was originally named Corning FCU. Rinfrette was hired by her father, Howard Morison, who was her mentor. When he passed away, Rinfrette became Treasurer, a position she still holds today. More than 50 members attended the event and enjoyed a dinner and lots of prizes.

Cross Valley FCU, Wilkes-Barre, recently presented Geisinger Wyoming Valley Medical Center’s Janet Weis Children’s Hospital with a check for $1,000 to support the advancement, care, and services provided by the organization to its tiniest patients. “Our credit union is honored to be able to support such a wonderful organization. It was such a pleasure to meet their dedicated medical staff,” said Len Shimko, President/CEO, Cross Valley FCU.

On March 10, the student athletes of Holy Family University took a night off from their games to focus on a different but equally challenging topic: credit and its affect on financial health. Representatives from Freedom Credit Union, Warminster, led by VP of Lending Anthony Silvi, talked to the students about credit during the interactive presentation, “Are You Credit-Worthy? Learn the Importance of Credit.” More than 100 students attended the presentation and earned prizes when they answered questions correctly.

WEST-AIRCOMM FCU CEO and Association Chairman Ray Brunner conducted a financial literacy class on March 18 at Beaver Area Schools. Karen Mihalic, teacher, invited Brunner to speak again to her class. He focused on the importance for young people to maintain a good credit rating and high FICO score. He showed them examples of how they can save hundreds of thousands of dollars over their lifetime with a platinum FICO score versus an E Fico score. The class reviewed loan and Visa applications and examples of credit bureau reports to show them how a loan officer makes a decision. Brunner said, “The class is mostly seniors, and Mrs. Mihalic has done a tremendous job preparing students to make smart financial decisions in the future.”

National News

National News

Matz responds to CUNA urging to help CUs bear NCUSIF costs

WASHINGTON (3/22/10)—Responding to the Credit Union National Association's (CUNA's) urging to help credit unions deal with unprecedented National Credit Union Share Insurance Fund (NCUSIF) costs, Debbie Matz wrote that the National Credit Union Administration (NCUA) will look at the operating level target in the Fall.

Matz, the NCUA chairman, noted in a March 18 letter to CUNA that while the Federal Credit Union Act sets a range between 1.20% to 1.50% for the NCUSIF equity ratio, the agency's currently established target is 1.30%.

At an open board meeting Thursday, NCUA Chief Financial Officer Mary Ann Woodson reported that the ratio currently stands at 1.23% and once the 1% deposit required of insured credit unions is collected next month, the ratio will rise to 1.26%.

In her letter to CUNA, Matz wrote that the agency plans to revisit the operating level target in the Fall as part of the agency's annual budget process.

"At that point, the board will make a decision on whether to replenish the NCUSIF to 1.30% or let the level continue to decline.

"That decision will be based on our experience in 2010 tracking several key economic and institutional factors," the chairman said. She reiterated her commitment to "the safety and soundness regime maintained by the NCUA, and the public confidence instilled by a strong and credible NCUSIF," a commitment she said will not be compromised "despite challenges" faced by the credit union movement.

CUNA recommends that the NCUA temporarily reduce the normal operating level of the NCUSIF from the current 1.3% to no lower than 1.2%, to reduce the amount of funds that credit unions must pay into the insurance fund.

CUNA also proposes allowing insured credit unions to spread out their NCUSIF costs over several years, "even if the normal operating level is at or above 1.2%, consistent with a restoration plan to ensure the NCUSIF is properly funded."

Also in her letter, addressed to CUNA President/CEO Dan Mica, Matz noted CUNA's close work with NCUA staff to draft enhancements to Senate legislation that would, in part, increase the member business lending cap to 20% of assets, up from 12.25%.

"Our respective staffs worked closely and productively on enhancements to a Senate proposal, and I am hopeful that Congress will enact legislation that gives NCUA the ability to formulate what I believe will be a stronger regulatory regime that prudently fosters broader consumer access to small business capital.

The Senate bill, the Small Business Lending Enhancement Act (S. 2919), has a counterpart in the House known as the Promoting Lending to America's Small Businesses Act (H.R. 3380).

Senate Banking to start reg reform votes today

WASHINGTON (3/22/10)--The Senate Banking Committee later today will hold its first markup session on Sen. Chris Dodd's (D-Conn.) financial regulatory reform legislation.

The hearing, which will take place in the Dirksen Senate Office Building at 5 p.m. ET, will focus on Dodd's recently introduced Restoring American Financial Stability Act of 2010.

That legislation would allow the Federal Reserve to continue to oversee both large banks and smaller state-chartered banks while also adding authority over some non-bank financial firms to the Fed's list of responsibilities. Dodd's proposal also allows the National Credit Union Administration (NCUA) to maintain its independence and excludes credit unions with $10 billion or less in assets from the oversight authority of a proposed consumer watchdog.

Dodd's bill in general would increase protections for consumers of both regulated and currently unregulated financial products and would create an Orderly Liquidation Fund to wind down damaged financial services providers in some cases.

The Credit Union National Association (CUNA) last week encouraged Dodd to consider adding language that gives his proposed Bureau of Consumer Financial Protection (BCFP) "the authority to delegate examination authority for large credit unions to the prudential regulator" rather than limiting the NCUA authority to credit unions with under $10 billion in assets. CUNA also promoted "permitting the BCFP to delegate examination authority for large credit unions to NCUA."

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