Small Credit Union Network heading
December 2011 


Wishing you a wonderful
holiday season!


Earnings & Net Worth Statistics

earnings and networth on the decline. Act today!A recent financial analysis of small credit unions yielded some alarming earnings statistics.  Of the 344 credit unions under $20 million in assets, 131 or 38% have had negative earnings for at least 24 months. Fortunately, the majority of  SCUNet credit unions had wisely grown their net worth position in contemplation of an economic downturn.  But how long can you continue this Net Worth depletion before it is too late to set a new course?

Reducing expenses is a good first step.  But, I suggest, that along with expense reduction, you must also review some core aspects of the credit union.  Can your current field of membership deliver the growth requirements necessary to return to profitability? Do you provide the menu of services required by the membership?  Are you adequately marketing to eligible primary and family members?

If you have not asked yourself these questions and more, I suggest you take advantage of the resources offered from your Association and SCUNet. 

  • Invite us to a board meeting for a frank discussion on your strengths and weaknesses, and follow that meeting with the development of a long-term strategic plan. 
  • Contact your Association Account Executive for a product/service analysis and recommendations.
  • Contact an expert from our Mentor Network to advise you on any aspect of credit union operations. 
  • Meet with your peers and develop cooperative solutions to problems. 

Whatever you do...just do something. For more information on credit union alternatives and options for success, contact me, Rick Myxter at 800.932.0661, ext. 5214 or at

collaborateCollaboration Corner Honor Roll

SCUNet wishes to acknowledge the Wyoming Valley and Scranton Chapters small credit union collaborative efforts. 

In November, Deborah Peters, Incol Credit Union CEO, facilitated two BSA training sessions for 90 participants from 19 credit unions.  In addition to her credit union responsibilities, Debbie is president of the Wyoming Valley Chapter and is a Certified BSA Compliance Specialist.  Additional collaborative efforts for this group include car sales and media advertising.

Are you part of a formal or informal credit union alliance?  We would like to hear from you and share your successes in subsequent issues of SCUNet News.  Please send your information to

CU PolicyPro Tip of the Month

Internet Gambling seems to be a policy that many examiners are asking for.  CU PolicyPro does not have a stand-alone Internet Gambling policy.  They have, however,  incorporated the appropriate language in various policies.  You can refer the examiner to the ones that are applicable to your credit union.

  • 2611 Internet Gambling (ACH Management)
  • 2610 Internet Gambling (ACH Operations)
  • 2211 Internet Gambling (Business Accounts)
  • 7210 Internet Gambling (Credit Cards ‐ Part I)
  • 7425 Internet Gambling (Member Business Credit Cards)
  • 2213 Internet Gambling (Trust Accounts)
  • 2290 Internet Gambling (Wire Transfers)

For personal assistance on the use, policy availability and applications of CU PolicyPro, please contact Elaine Royer, PCUA Compliance & Operations Officer by email at or by phone at 800.932.0661,
ext. 5341.

Compliance Q&A

Q: We want to reduce our expenses and realize that postage is going up again.  Is it permissible for us to include the members 1099INT statement in the same envelope as their periodic statement?

A: Yes, according to the IRS, a 1099 INT statement must contain either the official IRS 1099 INT form (or an acceptable substitute) and can also include the following enclosures.

  • Form W-2, W-8, W-9 or other forms 1098, 1099, and 5498 statements
  • A check from the account being reported
  • A letter explaining why no check is enclosed
  • A statement of the person’s account that is shown on the 1099 INT, and
  • A letter explaining the tax consequences of the information shown on the statement

No additional enclosures, such as advertising, promotional material, or a quarterly or annual report are permitted.  Even a sentence or two on the year-end statement describing new services offered by the credit union is not permitted.  However, logos are permitted on the envelope and any non-tax enclosures.

There must be a legend on the outside of the envelope that states “Important Tax Return Document Enclosed” in a bold and conspicuous manner.

Professional, Risk-Free Training

CPDOnline is a state-of-the-art online training environment that combines the ease of on-demand, self-study training with expertly-designed credit union courses, and personal assistance whenever it’s needed.

CUNA CPD OFFERS FREE TRIALA CPDOnline Membership gives you full access to online courses and/or exams including CU Advance, STAR, MERIT, VAP and RegTraC. To see complete course list here.

FREE TRIAL OFFER! Test the fit of CPDOnline training with FREE unlimited access to courses and the learning management system for 30 days, plus receive 10 FREE EXAMS! 

What’s more, with the 100% guarantee, if you are not fully satisfied, you’ll receive a full tuition refund or credit.
To register for your free trial or for more information, visit and select the CPDOnline link from the left side panel. If you have any questions, call 800.356.9655, ext. 4072 or e-mail CPD.

FREE Disaster Recovery Tools

Hurricane Irene. Tropical Storm Lee. "Snowtober." It seems like every time you turn on the TV, another impending disaster is bearing down on the Northeast. And according to meteorologists, a long winter is in store.

To help businesses prepare, plan and recover from disaster, Agility Recovery, one of the nation's leading disaster recovery and business continuity providers, has compiled several free disaster preparation checklists.

  • Winter Weather Preparedness Checklist
  • Disaster Recovery Kit Checklist
  • Influenza Checklist

For more than 20 years, businesses have relied on Agility to plan for and recover from the unthinkable. We are proud to say that we have successfully responded to over 800 disaster events this year alone.

If you have any questions about Agility Recovery call 866.364.9696.

Foundation Grants Available!

grants availableCredit unions with assets of $20 million and less can qualify for grants to support programs such as Financial Literacy, Technology, Strategic Planning, Marketing, and Education.

Information may be found here or ontact Rick Myxter at 1-800-932-0661, ext. 5214 or at

NCUA Streamlines Process

In an effort to encourage more low-income credit unions to apply for loans and grants from the Community Development Revolving Loan Fund, the Board has issued a final rule (Part 705) to greatly streamline the operating requirements and improve the funds administrative flexibility. 

Click Here for complete information and applications.  Contact the Office of Small Credit Union Initiatives at for more information.

Pennsylvania Credit Union Association
4309 N Front Street, Harrisburg, PA 17110    800.932.0661