WINTER 2013
A publication of the Massachusetts Credit Union League, New Hampshire Credit Union League and the Credit Union Association of Rhode Island
Consumer Confidence
Boosts
Credit Union
Auto Loans
Stories Inside:
14
Sale/Leasebacks as a Source of Income
18
Financial Education Taking Your Medicine
24
Mobile Lending is Here
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New England Credit Union Services, LLC 800-842-1242 Massachusetts Credit Union League, Inc. www.maleague.org New Hampshire Credit Union League www.nhcul.org Credit Union Association of Rhode Island www.cuassociationri.org Daniel F. Egan, Jr., President EDITORS: Robert B. Kimmett Marguerite A. Thorsen
Consumer Confidence
Boosts
Credit Union
Auto Loans page 20
CONTRIBUTORS: Donna M. Bevilacqua Robert Delaney Bonnie L. Doolin William F. Nagle Beverly Purtell Charlotte Whatley
Contents Table ofFeatures PUBLISHED BY
The Warren Group
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©2013 The Warren Group Inc. All rights reserved. The Warren Group is a trademark of The Warren Group Inc. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher. Advertising, editorial and production inquiries should be directed to: The Warren Group, 280 Summer Street, Boston, MA 02210. Call 800-356-8805.
04 MESSAGE FROM THE PRESIDENT 06 CREDIT UNION NEWS
– League Presents $140,000 Check to Massachusetts Coalition for the Homeless
6
08 COMMUNITY OUTREACH – Credit Unions in Rhode Island Raise Funds for Hasbro Children’s Hospital/Children’s Miracle Network – Digital Federal Credit Union Made Significant Donations This Holiday Season – Wish Children Find a Winter Wonderland at the Make-A-Wish® Annual Holiday Party – Service Credit Union Air Show Officials Donate $28,000 to Portsmouth High School and Krempels Center – Pioneer Valley Federal Credit Union Donates $50,000 to Baystate Hospital
11 24 MOBILE LENDING IS HERE
14 SALE/LEASEBACKS
26 CREDIT UNION PEOPLE
18 FINANCIAL EDUCATION
30 CALENDAR
winter.2013 | centerpoint | 3
M E S S AG E FRO M T H E P R E S I D E N T
| by daniel f. egan, jr.
CREDIT UNIONS A FINANCIAL MODEL FOR THE 21ST CENTURY During the last three years there has been an increasing number of references in the media to the benefits of credit unions for consumers. Many of those references focus on the not-for-profit, cooperative structure of the credit union, along with phrases like “people can get a better deal at a credit union.” These references are all true, but they don’t tell the whole story behind the benefit of credit unions.
C
redit unions were established as member-owned, not-for-profit, democratically-controlled institutions with a mission to promote savings and provide a resource for provident lending to their members. What drove the credit union movement from its earliest days was the conviction that our institutions could make a difference in the quality of life for working-class people. For over 100 years, credit unions have fulfilled that mission and taken on the additional role of being community builders in the 21st century. To the long-term believers in the credit union system, the benefits to consumers that have been highlighted by the media in recent years seem self-evident. The simple purpose of the credit union is to allow people to save and borrow in a safe and secure manner at fair rates. In today’s complex financial environment, the credit union mission has been expanded to provide financial education resources to all its members, young, old, working, and retired, so they can save and borrow for life-changing decisions, including higher education, homeownership, financial planning, and retirement. In the course of fulfilling its mission, the credit union has expanded its role into a true community building catalyst. Through small business loans, support of local institutions and charities with financial and volunteer assistance, and leadership for cultural and arts initiatives, credit unions are helping provide much needed assistance and support for all members of the community.
4 | centerpoint | winter.2013
As a result of credit unions’ expanded roles in communities, as well as its service to its members, credit unions have become the “model financial institutions for the 21st century.” As large banks and other non-bank financial institutions continue to contribute to high risk ventures in order to drive higher profits, credit unions have distinguished themselves as an antidote to the financial maladies caused by the big banks. Now that the media is acknowledging the emergence of credit unions as a positive force in the financial lives of consumers, state and federal legislatures and regulators must do the same. State legislatures and Congress must begin to act to expand credit unions’ ability to serve their members and their communities. Allowing for the deposit of public funds in credit unions on the local level and expanded powers for small business loans are two examples of action which could and should take place quickly. On the regulatory front, new regulations meant to correct the abuses of big banks and non-bank financial institutions should not be applied to credit unions, as credit unions had nothing to do with the abuses the regulations seek to remedy. The mere fact that banks oppose credit union initiatives is in no way sufficient reason for credit unions and their members to be denied the benefits of increased use of and participation in a credit union. • Daniel F. Egan, Jr., president
JOHN LEONARD, CPA, PRINCIPAL FINANCIAL INSTITUTION AUDIT & ASSURANCE
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C R E D I T U N I O N N EWS
LEAGUE PRESENTS $140,000 CHECK TO MASSACHUSETTS COALITION FOR THE HOMELESS
Several members of the Massachusetts Social Responsibility Committee present Robyn Frost, Massachusetts Coalition for the Homeless, with a check for $140,000. Included in the presentation were (left to right) Robert Kimmett, Massachusetts Credit Union League; Paul Marotta, Hanscom Federal Credit Union; Jon Reske, UMassFive College Federal Credit Union; Charlene Bauer, Metro Credit Union; Robyn Frost, Massachusetts Coalition for the Homeless; Nicole James, RTN Federal Credit Union; Debra Lee Surface, St. Jean’s Credit Union; and Dan Egan, Massachusetts Credit Union League.
Massachusetts credit unions once again demonstrated their remarkable generosity by their support of the Massachusetts Coalition for the Homeless through the Credit Union Community Hope Initiative. The Credit MANY THANKS … The Massachusetts Credit Union League’s Board of Directors and Social Responsibility Committee members extend their sincerest gratitude to all the credit unions and chapters for helping reach the goal of $130,000 through the Credit Union Community Hope Initiative to benefit the Massachusetts Coalition for the Homeless. The generosity of the officials, staff, and members of so many credit unions throughout the state is a true testament to the philosophy of people helping people. Listed at right are the credit unions and chapters whose generosity in 2012 had a profound impact in helping the coalition find long-term solutions to homelessness in Massachusetts.
6 | centerpoint | winter.2013
Union Community Hope Initiative reached its goal of $130,000 in December to support the coalition. In addition, the Massachusetts Credit Union League made a separate $10,000 donation to the coalition at its Annual Gala for
CREDIT UNIONS
Attleboro Municipal Employees Federal Credit Union Berkshire Federal Credit Union Billerica Municipal Employees Credit Union Boston Firefighters Credit Union Brookline Municipal Credit Union Brotherhood Credit Union CPCU Credit Union Central One Federal Credit Union Chelsea Employees Federal Credit Union City of Boston Credit Union Credit Union of the Berkshires Crescent Credit Union Digital Federal Credit Union Energy Credit Union Everett Credit Union Freedom Credit Union Grafton Suburban Credit Union Greylock Federal Credit Union Hanscom Federal Credit Union Harvard University Employees Credit Union Haverhill Fire Dept. Credit Union IC Federal Credit Union
the “Bed for Every Child” initiative. At the December 12 meeting of the League’s Social Responsibility Committee, Nicole James, committee chair, and League President Dan Egan, along with several committee
Industrial Credit Union Jeanne D’Arc Credit Union Leominster Credit Union Liberty Bay Credit Union Lowell Firefighters Credit Union Luso Federal Credit Union Lynn Firemen’s Credit Union M/A-COM Federal Credit Union MAFCU Federal Credit Union Mass Bay Credit Union Massachusetts Institute of Technology Federal Credit Union MassMutual Federal Credit Union Members Plus Credit Union Merrimack Valley Federal Credit Union Metro Credit Union MyCom Federal Credit Union NMTW Community Credit Union Norfolk Community Federal Credit Union Polish National Credit Union Premier Source Credit Union Quincy Credit Union RAH Federal Credit Union RTN Federal Credit Union Santo Christo Federal Credit Union Seaport Credit Union
Somerville School Employees Federal Credit Union Southbridge Credit Union Southern Mass. Credit Union St. Anne’s Credit Union of Fall River, Mass. St. Anthony of Padua Federal Credit Union St. Jean’s Credit Union St. Mary’s Credit Union St. Vincent Hospital Credit Union STCU Credit Union Tewksbury Federal Credit Union Tremont Credit Union UMassFive College Federal Credit Union ValleyStone Credit Union W.H. Nichols Employees Federal Credit Union Wemelco Credit Union Woburn Municipal Federal Credit Union Worcester Credit Union Workers’ Credit Union
CHAPTERS
Berkshire County Chapter of Credit Unions Metro-Boston Chapter Pioneer Valley Chapter
members, presented Robyn Frost, executive director of the Massachusetts Coalition for the Homeless, with a ceremonial check for $140,000 representing the overall donation to the Coalition. The donation was made possible by 65 credit unions from all over Massachusetts who supported and organized a wide variety of fundraising activities. The largest individual contribution came from Hanscom Federal Credit Union, Hanscom AFB, MA, which raised over $25,500 from an employee raffle, along with various other fundraising efforts. MAFCU Federal Credit Union (now RTN Federal Credit Union, Waltham, MA) stepped up with a tremendous effort as well this year. The credit union raised $15,896 from their fundraiser, “The Walk Home.” This walk was held in Dorchester Park in early June and it attracted a host of eager walkers who represented many generous donors. Hanscom Federal Credit Union stepped up with a tremendous effort as well this year. The credit union raised over $15,000 from an employee raffle, along with various other fundraising efforts. Credit unions including Brotherhood Credit Union, Boston Firefighters Credit Union, Metro Credit Union, and St. Jean’s Credit Union contributed to the Credit Union Community Hope Initiative by hosting their own fundraising activities throughout the year. These fundraisers together with the Annual Appeal, the Credit Union Community Hope Initiative Golf Tournament, candy sales, and chapter contributions made a tremendous difference, as Frost noted when she accepted the check. She praised the philanthropic spirit and philosophy of Massachusetts’ credit unions. “The Massachusetts Coalition for the Homeless is so appreciative of the amazing partnership we share with the Massachusetts Credit Union League. Massachusetts credit unions ‘live’ and exemplify their sense of corporate social responsibility – ‘people helping people’ – throughout the year. Their impact has reached every corner of the state – and is key in assisting the Coalition’s mission to eradicate homelessness in Massachusetts,” said Frost. Holidays brought additional care for the needs of the Commonwealth’s homeless from the credit unions of Massachusetts. From mid-November to mid-December, credit unions across the state collected toys for the Massachusetts Coalition for the Homeless. During January, credit unions and the League collected new blankets for the homeless to help them weather the winter. •
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C O M MU N I T Y O U T R E AC H
CREDIT UNIONS IN RHODE ISLAND RAISE FUNDS FOR HASBRO CHILDREN’S HOSPITAL/ CHILDREN’S MIRACLE NETWORK
Several members of the Credit Union Association of Rhode Island’s Social Responsibility Committee present the Hasbro Children’s Hospital – a Children’s Miracle Network Hospital with a check for $3,654.80 at the hospital’s newly renovated surgical suite. From left: Social Responsibility Committee members Kristin Rojas, Pawtucket Credit Union; Donna Bevilacqua, Credit Union Association of Rhode Island; Christopher Eden, People’s Credit Union; Nancy Zeppa, Rhode Island Credit Union; and Hasbro Children’s Hospital Administrative Director Myra Edens, RN.
The Credit Union Association of Rhode Island’s Social Responsibility Committee, through the Credit Unions for Kids initiative, recently presented the Hasbro Children’s Hospital, a Children’s Miracle Network (CMN) Hospital, with a check in the amount of $3,654.80, bringing a six-year total to nearly $19,000. Credit Unions for Kids is a national collaborative effort that raises money for local CMN affiliated hospitals including Hasbro in Providence. Funds raised through the Credit Unions for Kids initiative help provide critical care, purchase life-saving equipment, fund groundbreaking research, and cover medical costs for uninsured or underinsured pediatric patients at Hasbro Children’s Hospital. In addition, the association received a “Miracle Match” grant through the CO-OP Financial Services Miracle Match Program for 2012, thereby doubling the donation to Hasbro bringing the amount given to Hasbro a total of $7,309.60. CO-OP Financial Services, in conjunction with Children’s Miracle Network and Credit Unions for Kids, created the Miracle Match program. This $1 million matching funds program encourages 8 | centerpoint | winter.2013
credit unions and associations to create and participate in local CMN fundraisers. The donation, made by Association Social Responsibility Committee members, was the result of the association’s two fundraising activities, Credit Union Casual Days, and the CO-OP Miracle Match grant to benefit Hasbro Children’s Hospital. The efforts made by the Association and additional CMN supporters provided the necessary funds for the hospital to renovate its surgical suite. “Improving children’s health is at the heart of this donation,” said David Dupéré, Association Social Responsibility Committee chair. He went on to say, “From a child being admitted to a child recovering from treatments, the credit unions in Rhode Island are proud to partner with Hasbro Children’s Hospital in their commitment to providing the finest care for thousands of children in the Ocean State. Their dedication to excellence and innovation, while creating a comforting and compassionate environment for its patients, aligns Hasbro Children’s Hospital with the qualities that represent credit unions and their philosophy of ‘people helping people.’” “We are so fortunate and thankful to be
awarded with this gift from our good friends at the Credit Union Association of Rhode Island,” said Dr. Thomas F. Tracy, Jr., pediatric surgeon-in-chief and interim medical director of Hasbro Children’s Hospital. “Without the ongoing support of the association and Children’s Miracle Network Hospitals, we would not be able to provide such exceptional care to our surgical patients and the sick and injured infants and children in our care. We are forever grateful to those in the community who help us help kids and families each day.” In 2007, the Credit Union Association of Rhode Island selected the Credit Unions for Kids Children’s Miracle Network as one of the organization’s philanthropic endeavors. Made up of volunteers from credit unions throughout the state of Rhode Island, the Social Responsibility Committee works cooperatively and along with all Rhode Island credit unions, and is proud to have raised nearly $19,000 for the charity. Children’s Miracle Network Hospitals is a nonprofit international alliance of premier pediatric hospitals dedicated to saving and improving the lives of children by raising funds for lifesaving equipment, charity care, and cutting-edge research. Hasbro Children’s Hospital is one of 170 children’s hospitals affiliated with Children’s Miracle Network Hospitals providing the finest care. Following the check presentation, members of the Social Responsibility Committee were given a tour by Hasbro Children’s Hospital Pediatric Surgical Coordinator Mark D’Aguanna, RN, of the newly renovated surgical suite. •
C O M MU N I T Y O U T R E AC H
DIGITAL FEDERAL CREDIT UNION MAKES SIGNIFICANT DONATIONS THIS HOLIDAY SEASON
Digital Federal Credit Union employees celebrate DCU’s sponsorship of “Comics Come Home 18,” benefiting the Cam Neely Foundation.
DCU COMMITS $50,000 TO HELPING END HUNGER IN LOCAL COMMUNITIES FOR SECOND YEAR Throughout the year, the employees at Digital Federal Credit Union (DCU) try to make a meaningful difference in the fight against hunger by donating their time, money, and food to local food banks and pantries. As they did in 2011, the credit union has made a commitment to helping end hunger in many of the communities that their employees and members live in by donating $50,000 to help feed the hungry. The following 16 organizations will share in the donation: • Burlington Food Pantry – Burlington, MA • Catholic Charities Food Bank – Leominster, MA • Community Supper, Inc. – Acton, MA • Franklin Food Pantry – Franklin, MA • Greater Boston Food Bank – Boston, MA 10 | centerpoint | winter.2013
• Lazarus House Ministries, Inc. – Lawrence, MA • Loaves & Fishes – Ayer, MA • Marlborough Community Services – Marlborough, MA • Merrimack Food Bank – Lowell, MA • Nashua Soup Kitchen & Shelter – Nashua, NH • New Hampshire Food Bank – Manchester, NH • United Way of Tri-County Food Bank – Framingham, MA • Veterans Inc. – Worcester, MA • Waltham Salvation Army – Waltham, MA • Westborough Food Pantry – Westborough, MA • Worcester County Food Bank – Shrewsbury, MA “These organizations have done outstanding work in identifying local hunger problems, developing the best practices in food distri-
bution and nutrition services, and communicating about the need that exists,” said John LaHair, DCU public relations manager. “We proudly support them in all their efforts to create a hunger-free community.” DCU SPONSORS COMEDY FUNDRAISER WITH $50,000 DONATION DCU employees, along with nearly 5,000 smiling faces, turned out to support “Comics Come Home 18” to benefit the Cam Neely Foundation and their quest to help children and families who are battling cancer at the Agannis Arena in Boston on November 17. DCU for Kids, the credit union’s charitable foundation, sponsored the event through a donation of $50,000. The event featured Dennis Leary and a number of other great comedians with over $330,000 raised to support those undergoing cancer treatment at New England Medical Center. •
WISH CHILDREN FIND A WINTER WONDERLAND AT THE MAKE-A-WISH® ANNUAL HOLIDAY PARTY The New Hampshire credit union community has had a long relationship with the Make-A-Wish Foundation® of New Hampshire – characterized by many hands on projects as well as fundraising. These personalized projects help cement this dedicated bond. One of the favorite of these activities for both the wish kids and the credit union community is the annual holiday party. On Sunday, December 2, the Jefferson Mill Building in Manchester, NH, was transformed into a winter wonderland for more than 150 wish children and their families at the annual Make-A-Wish Foundation® of New Hampshire’s holiday wish family/wish granter reunion. More than 500 people entered the wintry setting for an afternoon of fun, eating, socializing, and many activities. The event is held each year to bring families together to enjoy a fun day meeting new families, reuniting with their wish granters, and other volunteers. Volunteers from several credit unions helped wish children decorate a gingerbread snowman. They included: America’s Credit Union Museum, Manchester – Peggy and Dick Powell; Granite State Credit Union – Megan Durepo, Ashley Durepo, and Terri Smith; MembersFirst Credit Union of N.H., Manchester – Alyssa Mulhern and Stephanie Emery; New Hampshire Federal Credit Union, Concord – John and Linda Young, Polly Saltmarsh and Ann Malvey; and Service Credit Union, Portsmouth – Joanne Nadeau, Lesley Forde Conway, Allison Brown, Stephanie Sawicki, and Crystal Chapple. •
Social Responsibility Committee member, Polly Saltmarsh and, volunteer Ann Malvey, both from New Hampshire Federal Credit Union, help two wish children decorate their gingerbread snowmen.
Wish child Sam (right) watches intently as the wish child beside him decorates her cookie. He’s trying to plan how he wants to decorate his own.
winter.2013 | centerpoint | 11
C O M MU N I T Y O U T R E AC H
SERVICE CREDIT UNION AIR SHOW OFFICIALS DONATES $14,000 TO PORTSMOUTH HIGH SCHOOL AND KREMPELS CENTER
Service Credit Union Vice President of Marketing Karen Benedetti (left) presents a check for $14,000 to Portsmouth High School Principal Jeffrey Collins. The credit union made the donations as part of the proceeds from the Boston-Portsmouth Air Show.
The Brain Injury Association of New Hampshire, the Daniel Webster Council Boy Scouts of America, and Service Credit Union officials presented contributions of $14,000 each to Portsmouth High School and the Krempels Center. The donation was part of the proceeds from the 2012 Service Credit Union Boston-Portsmouth Air Show featuring the United States Navy Blue Angels. Proceeds from the air show also helped support two organizations, the Brain Injury Association of New Hampshire and the Daniel Webster Council Boy Scouts of America, as well as a multitude of other New Hampshire non-profit organizations including the Make-A-Wish Foundation® of New Hampshire. “Service Credit Union was delighted to be
the proud title sponsor of the 2012 Service Credit Union Boston-Portsmouth Air Show at the Portsmouth International Airport at Pease. As the title sponsor of this tremendous event, we are honored to take a leadership role in serving our communities,” said Karen Benedetti, vice president of marketing at Service Credit Union. “We take pride that we can help our local organizations with some of the proceeds from the air show.” Daniel Webster Council Boy Scouts of America Executive Director Mike Kauffman and Brain Injury Association of New Hampshire Executive Director Steve Wade were on hand as Benedetti presented the check to Portsmouth High School Principal Jeffrey Collins during a recent Pease Development Authority meeting. •
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PIONEER VALLEY FEDERAL CREDIT UNION DONATES $50,000 TO BAYSTATE HOSPITAL Pioneer Valley Federal Credit Union (PVCU) helps Baystate Health to open the doors to the hospital of the future for patients at the Davis Family Heart and Vascular Center, the new wing of Baystate Hospital. On August 24, members of the board and staff of PVCU presented members of the staff of Baystate Health with a check for $50,000 to help with the development of the new hospital wing. The donation will be used to help patients throughout the local community to have access to state-of-the-art medical care. • Left to right: Barbara Linton, Baystate Health; Mark Tolosky, president and CEO, Baystate Health; Larry Emerson, Baystate Health, receives a donation from Richard Borden, Orlando Braz, and Ted Klekotka, directors, PVCU; Kathy Fratamico, chair of the board, PVCU; Anabela Pereira, president and CEO, PVCU; Jennifer DeMoe, vice president, finance and operations, PVCU; and Trecia Marchand, vice president, marketing/business development, PVCU.
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SALE/LEASEBACKS
A Source of Credit Union Income and Liquidity By Steven Eimert
Credit union income continues to be squeezed. Interest rates remain near historic lows, high levels of problem loans remain (at least in some states), and costs, driven by employee benefits and special National Credit Union Administration (NCUA) assessments, rise. Larger credit unions augment their income with ancillary business lines, but those strategies require upfront investment and often have only limited effects on the bottom line. In this challenging environment, many credit unions have another, untapped source of profit and capital – owned branches and other operating facilities that can be sold for a profit and leased back so as to permit uninterrupted operations. Such “sale-leasebacks” can create synergistic value by placing the real estate in the hands of investors who can realize tax benefits from real estate ownership that a non-taxable credit union cannot, and allow credit unions with excess space to downsize their bricks and mortar footprint.
Sale-leasebacks have long been a capitalraising strategy for banks, which see ownership of real estate as a low-return, non-core business activity. If properly structured, a sale-leaseback will transfer ownership from the credit union to an investor-purchaser (typically but not always an existing, professional commercial real estate investor), remove the property and any related liabilities from the credit union’s balance sheet and result in recognition of gain which is tax-free because of the credit union’s special status.
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Sale-leasebacks offer many advantages. They allow for tax-free realization of appreciation embedded in fixed assets, increasing liquidity, earnings and capital, expanding lending capacity, and providing funds for other purposes, such as non-loan investments and/or special dividends. They transfer valuable tax deductions associated with real estate ownership from credit unions which cannot use those deductions to taxable investor-purchasers which can, creating new value. They permit credit unions which are looking to downsize to remain in part of their facilities while allowing the investor-purchaser to lease excess space to non-credit union tenants, a flexibility most credit unions do not – by law – have. And, although a variation on the typical deal structure, the seller credit union can itself sometimes provide a member business loan to finance all or part of the debt portion of the purchaser’s acquisition cost. In addition to financial and operational objectives, credit unions considering a saleleaseback also must consider accounting consequences in deciding whether to pursue and how to structure the deal. There are very specific rules for sale-leasebacks. These include bona fide, commercially reasonable terms, so that the seller has made a meaningful investment in the property, and the credit union has no continuing economic involvement other than its rights under the lease. Also, the gain on a sale-leaseback generally cannot be recognized in a lump sum but must be reflected in the credit union’s income statement ratably over the lease term. Some specific issues to note: • Accounting rules prevent the credit union from retaining an option to buy back the property at the end of the lease, and likewise the buyer cannot have the ability to force the credit union to buy it back. Less formal arrangements giving the credit union first crack at a buyback, such as a right of first refusal, are permissible, however, if properly structured. continued on page 16
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• Once the credit union leases back the property, it cannot later sublease more than 10 percent of it to third parties. If part of the reason for the deal is the credit union’s desire to shed excess space, it can accomplish that goal by leasing back only that part of the property it needs going forward, and letting the new owner lease the rest of the space directly to third parties. • The buyer’s down payment from sources unrelated to financing provided by the seller-credit union should be at least 20 percent of the purchase price. Given prevailing commercial real estate underwriting guidelines that often see buyer equity of between 25 and 40 percent of the purchase price, this should not be a practical problem. • If the credit union provides the financing, the loan terms must be commercially reasonable (including full recourse to the buyer and not just the property) and there cannot be a bullet payment at maturity. Since NCUA and other regulators typically limit member business loans to relatively short terms, around 15 years, and most permanent commercial real estate loans provide meaningful amortization, this should not be a problem, either. • The mortgage loan cannot be on a participating basis, where the credit union shares any portion of the potential appreciation of the property. • The credit union lease term generally cannot exceed 75 percent of the estimated economic life of the property, nor can the present value of the future, fixed rent exceed 90 percent of the property’s value. These rules will disqualify some older buildings from sale-leasebacks. • NCUA permits federal credit unions to engage in sale-leasebacks, subject to certain requirements (see IRPS 81-7 (9/11/81)), while state charters must look to their state rules to ensure compliance. The critical factors in determining the economic value of a possible saleleaseback are the amount of unrealized appreciation in the property and the length of the lease term that can be negotiated. These will determine how much gain will be realized by the credit union and how quickly it can be taken into its income statement and balance sheet. To maximize the financial benefit of a sale-leaseback, the credit union has an incentive to negotiate the shortest possible initial lease term over which it must recognize the gain on the sale of the leased property. Although this and other key terms are subject to negotiation, current capital market norms have pushed the initial lease term expectation to a range of 10 to 15 years. Of course, whatever the gain recognition period in a given deal, a sale-leaseback still liberates gain which otherwise would remain trapped indefinitely in the credit union-owned premises, and also will provide immediate liquidity. While sale-leasebacks in the credit union world remain relatively rare, they offer many institutions the opportunity to enhance their earnings, capital and liquidity while preserving their operations uninterrupted. They provide a means to dispose of excess space while presenting the credit union with a major business lending opportunity. However, the transaction must be structured carefully to achieve the desired business and accounting outcomes, and comply with any applicable regulatory requirements. Advice from legal, accounting, and commercial real estate consultants is a must. • Steven Eimert is a partner and chair of the credit union practice at Sherin and Lodgen LLP of Boston, an associate member of the League. He can be reached at (617) 6462283 or sdeimert@sherin.com.
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FINANCIAL EDUCATION
Take your Medicine and Life will be Good By Robert B. Kimmett
One of the most daunting tasks the marketer faces is convincing people to buy something that they don’t even want to talk about. There are certain things that people need, but often they are unwilling to face up to the fact that they do, or, worse yet, these things are just too embarrassing to talk about. Marketing this kind of product is an uphill battle. What kind of things? Well, here’s an example. Have you watched the nightly news lately? Three out of four advertisements are hawking some kind of pharmaceutical product, prescription and non-prescription. These folks are addressing issues that my mom told me “polite people don’t discuss in public.” So, how do you fashion a pitch for this kind of stuff ? It’s really quite simple. You market it the same way a savvy marketer sells almost everything, by appealing to the consumers self interest. In the case of big pharma on the nightly news, the message isn’t just, “buy a couple of bathtubs and plunk them in the back yard.” The message is “take your medicine and life will be good.” The financial products and services that your credit union offers are usually associated with positive things: saving for college, buying a car, making money available for purchases at the market. However, some credit union members need help with financial problems that they would, more often than not, prefer to ignore. The severity of the problems can vary. Some are 18 | centerpoint | winter.2013
extreme and immediate, such as home foreclosure, auto repossession, and insolvency. Others are more nagging, like how to make ends meet or save for tuition. In order to communicate with the people who need financial outreach services, the credit union must first commit to a message that is going to both reach and resonate with the members in that target group. Keep in mind, when you are introducing a new idea, you have to walk the consumer through a number of levels of understanding. A simple way to look at this problem is defined by the AIDA model: Attention, Interest, Desire, and Action. Unfortunately, there aren’t many situations where a single communications activity (be it an ad, poster, or conversation) is going to march a consumer from “Who are you?” to “You bet! Where do I sign?” So what needs to be done to ensure that the credit union can make sure that its members who need help get it? To begin, the credit union should make certain that its commitment to the financial success of its members is clearly spelled
out in its public identity. It should be a major part of how the credit union presents itself to the membership. The credit union should be dispensing pro-consumer, financial advice on its website, in its newsletter, and in the credit union. Financial seminars and counseling sessions are a good way to do this as is a consumer financial library. The credit union must also make the offering tangible. Many work with an outreach partner, a non-profit that specializes in financial counseling, debt relief, housing advocates, etc. In some cases, the credit union builds its own program or educational offering. Unfortunately, just saying that you are there to help will not yield maximum results. That sort of offer doesn’t give the target market an easy way to respond. Next, the credit union has to reach out to the members to make them aware of the specific solutions that it has available. The message has to be positive and solution-oriented. They also must be limited. Too many options will create confusion. The credit union should concentrate on those services for which there is the greatest need. Finally, the credit union should, insofar as it is possible, target the message to the right audience. For example, insert a stuffer in the statement envelopes of the members who are chronically past due on their loans or overdraw their accounts. Again that message should be positive and non-threatening. It should have more of a “we offer this” tone than a “you need this” tone. Also, consider the possibility of secondary communication. Often, it will be a family member or friend that intervenes with someone having financial difficulties. If you can communicate with the mother, uncle, or friend of someone who is suffering, they might know how to deliver that message at the right time. It’s not easy to ask your members to take their financial medicine, but in the long run it will be in their best interests. By providing for their financial health of your members, you will be following the finest tradition of the credit union movement. • Rob Kimmett is senior vice president, public relations and marketing, for the Massachusetts and New Hampshire Credit Union Leagues and the Credit Union Association of Rhode Island.
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Boosts Credit Union
Consumer Confidence
Auto Loans
in 2012
BY LAURA SCHREIER
L
ast year brought good news for the auto industry – and, by extension, credit unions. Car sales took a giant leap upward in 2012, a showing even auto sales forecasters had not anticipated. High auto sales equates to lots of auto loans, traditionally a strong area for credit unions. New England institutions are celebrating – and hoping to see a productive 2013. “We had a fabulous year,” said Anne Nelson, consumer loan manager for Marlborough, MA-based Digital Federal Credit Union, adding that loans were up 22 percent in 2012 compared to the previous year. And for an additional boost, high lending activity has continued into January, in contrast to the usual slump that arrives with the cold, post-holiday beginning of the year. Other New England credit unions were also largely upbeat, and their experiences parallel a national trend in increased sales activity.
UP ACROSS THE NATION Sales of new cars were up by 13.3 percent in 2012 nationwide, with 14.5 million new cars sold compared to 12.8 million in 2011, according to Edmunds.com, a national automotive research firm. Used-car sales also grew, albeit less impressively – total sales, which includes independent dealers, franchises, and individuals, went up by 2.2 percent. When the economy went haywire in 2008 at the height of the recession, credit unions across the country and in New England tightened lending requirements. Last year, as the economy and consumer confidence improved, lending requirements reverted to pre-recession standards, boosting purchases of new cars and associated loans. Increased consumer confidence also played a role, as consumers replaced aging vehicles they had held onto for longer than usual during the austere recession and uncertain following years. DCU’s Nelson noted that low interest rates gave lending a big boost, and a number of credit union sources agreed that they’d become more flexible on lending standards since the economic turnaround.
UP IN NEW ENGLAND Bob Nealon, the Massachusetts-based regional vice president for CU Direct Corporation, a credit union service organization, said the stats indicate credit unions in New England are capitalizing on the upswing. In New Hampshire, the top 10 credit unions in the state made 27,807 loans in 2012, compared to 23,607 in 2011 – a 17.8 percent increase, he said, quoting from Experian Automotive’s AutoCount Lender Summary Reports. In comparison, total auto lending for the state only went up by 9.7 percent. Continued on page 22 winter.2013 | centerpoint | 21
CREDIT UNION AUTO LOANS
National Segment Totals, Ranked by December Unit Sales Dec. 2012
% Change from Dec. 2011
YTD 2012
% Change from YTD 2011
Cars
648,316
15.4
7,414,282
18.8
Midsize
286,448
3.4
3,588,099
17.6
Small
250,982
32.3
2,781,860
26.8
Luxury
110,094
18.3
1,035,189
11.6
Large
792
-50.6
9,134
-86.6
Light-duty trucks
707,682
3.7
7,077,591
8.3
Pickup
204,683
0.8
1,941,567
6.7
Cross-over
291,176
9.3
2,998,723
9.3
Minivan
74,547
-6.5
833,468
13.5
Midsize SUV
72,185
7.2
708,527
9.3
Large SUV
29,157
-1.5
237,550
-9.1
Small SUV
16,774
-1.5
197,265
13.4 2.3
Luxury SUV
19,160
0.6
160,491
Total SUV/Cross-over
428,452
7.3
4,302,556
8
Total SUV
137,276
3.2
1,303,833
5.1
Total Cross-over
291,176
9.3
2,998,723
9.3
Source: www.motorintelligence.com
In Massachusetts, top credit union lenders fared slightly worse overall: The top 10 credit unions’ lending activity went up by 5.3 percent for the first 11 months of 2012 versus the same period in 2011, in comparison to a 6.1 percent increase for all
22 | centerpoint | winter.2013
lenders (December 2012 numbers aren’t yet available for Massachusetts). Rhode Island doesn’t release that specific data, Nealon said, although Experien reported that total loans for all lenders were up by nearly 9 percent. Taken altogether, it’s
continued from page 21
a much brighter picture than auto lenders had seen in recent years, post-recession.
WORKING WITH DEALERSHIPS “There are more and more loans to be had,” but credit unions have to be smart if they are going to increase their business, Nealon said, and noted that some credit unions still approach him with concerns that they are missing out on the loan market. Credit unions’ biggest competitors are the dealerships themselves, which offer inhouse financing; Nealon’s CUSO, however, sells the technology that makes credit unions able to lend through the dealerships. CU Direct’s products allow borrowers to apply for credit union loans straight through the dealerships. Offering that convenience – getting out in front of auto buyers as they are in the dealership – is the best way to get a leg up on the competition, he said, and it’s important to make that credit union-dealership relationship work smoothly and easily for all parties.
Some credit unions prefer to work through dealerships, while others prefer to lend directly to members. But regardless, analysts say, it’s essential that credit unions get the word out about their lending programs. Especially if the institution is doing direct lending and not working through any dealerships, it must communicate its offerings to members before they head off to the dealership in the first place. CU Solutions Group, for example, is a credit union service provider that offers credit union member discounts on GM vehicles. Lisa Rizk, senior vice president of sales and partner relations, said credit unions usually offer much better deals to consumers than other financers working through dealerships, but members often miss out simply because they aren’t aware of their options. “It really is a matter of educating the members,” she said. To that end, CU Solutions Group has been ramping up its own marketing efforts, advertising through Gas Station TV, for example, and urging more people to get financing through credit unions.
WORKING WITH MEMBERS Other credit unions are also busy reaching out to their own membership bases. Service Credit Union, based in Portsmouth, NH, makes it a point to market its fast decision-making and low rates to members, according to Fawn Terwilliger, vice president of lending. Service has marketed its low rates, and launched campaigns claiming it will beat any competitor’s auto loan rate. That has helped lead to big success for the credit union, she said, which does both direct and indirect lending. Michael Murphy, CEO of Holyoke Credit Union in Massachusetts, said his institution has worked to connect with members and, in addition, has taken steps to help borrowers get loans they might not have gotten during the height of the austere recession and post-recession years. A credit score is not the only means by which a member’s credit worthiness is judged, as lenders look at mitigating factors and place restrictions on a member’s loan. “If that member can put in a down payment, for example, and the credit union can secure a deposit account that automates payments, then the lender is more likely to feel
confident in the borrower’s ability to repay,” Murphy said. Lars Farnham, vice president of indirect lending with Warwick, RI-based Greenwood Credit Union, said his institution has also been more flexible about its restrictions on loans. But Farnham stressed that institutions should proceed with caution. Lending is a vital income generator for banks and credit unions, and a lot of CFOs are sitting on a ton of cash that isn’t yielding a big return elsewhere, he said, so it’s tempting to start an indirect auto lending operation through dealerships, for example, or to loosen standards in order to push loan volumes higher. “It happens all the time,” he said, but it can be analogous to the pre-recession mortgage frenzy in that some borrowers aren’t actually qualified for those loans. That, as everybody has already seen, can get ugly – hence, Farnham’s calls for sensible lending. “It’s a great way to make some money, but you’ve got to be very careful.” • Laura Schreier is a writer for The Warren Group, publisher of CenterPoint.
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MOBILE LENDING IS HERE Changing the Way Credit Unions Do Business
“It’s primarily people in their 20s and 30s who are applying on their tablets or mobile devices, with the average age being 32.” Norb Adrian, chief systems officer Centra Credit Union Columbus, Indiana
24 | centerpoint | winter.2013
Credit union members are no longer satisfied with simply being able to check their account balances and transfer money online. Today, with 50 percent of U.S. consumers owning a smartphone (Neilson Mobile Insights, March 29, 2012), credit unions are expected to provide lending services through their member’s preferred channel, and for a whole new generation, that channel is mobile. While most credit unions have online loan applications, many have not yet customized them for the mobile channel (both phone and tablet), which makes completing a loan application on a smartphone cumbersome. That’s why CUNA Mutual Group launched SmartPhone Loans almost two years ago to be the mobile solution to their online lending platform – loanliner.com®. Since launch, mobile applications have increased steadily and now account for more than 12 percent of total loanliner.com applications, translating to over a half a billion dollars in loan applications by the end of 2012*. “The mobile channel is growing dramatically,” said Steve Hoke, director of loan growth products at CUNA Mutual Group. “Credit unions that ignore it do so at their peril. Not only does the SmartPhone Loan technology help credit unions grow loans through higher completion rates, but it also makes it easier for members to express interest in payment protection as part of the application process. We find that members do so roughly 50 percent of the time, making it much easier for lenders to include payment protection on the loan at closing time*.” SmartPhone Loans is a web-based solution that allows CUNA Mutual Group to make compliance updates without any distribution or maintenance challenges. Loanliner.com detects the incoming browser and reformats the screen to display all the required disclosures on that particular device. SmartPhone Loans interfaces
with more than 90 percent of the loan origination systems serving credit unions and has the ability to use the automated underwriting engine within the loan origination system to deliver a real-time credit underwriting decision to the member. When National Credit Union Administration (NCUA) Chair Debbie Matz addressed the CUNA Governmental Affairs conference on March 19, 2012, she pointed out that with the average age of a credit union member being 47 and the peak borrowing ages of consumers being between 25 – 44, if credit unions want to make the loans they will need to survive in the years to come, they will need to attract new, young members. “If you don’t offer what they expect,” said Matz, “they will take their business elsewhere. That’s why it’s absolutely essential that you use all the tools at your disposal to win over the next generation. If your goal is to attract new, young members, then you need to adopt new technology.” Source: September 2012 internal CUNA Mutual Group reports. For more information about SmartPhone Loans and loanliner.com technology today, contact your CUNA Mutual Group Sales Executive or call CUNA Mutual Group at (800) 356-2644 to learn more.
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NH Federal Credit Union Appoints Julie Raposa to Board Julie Raposa of Chichester, NH, was recently appointed as an interim director for NH Federal Credit Union (NHFCU). Raposa will fill the vaJulie Raposa cancy that was left after long-time NHFCU director Edward McCann retired from the board after 19 years. Raposa graduated in 1970 from Bridgewater State University with a bachelor’s degree in science and mathematics. She had previously worked for Citizens-Union Savings Bank in Fall River, now BayCoast Bank, in Massachusetts from 1977 until her retirement in 2006, most recently holding the position of senior vice president. Her experience in marketing, human resource management, and branch administration demonstrates a high level of education and responsibility throughout her career. Raposa serves on the Chichester Old Home Day committee and previously served on other committees such as the United Way of Greater Fall River and Kiwanis Club of Fall River. She has been a member of NHFCU since 2012 and currently serves on NHFCU’s Personnel Committee.
Trust for Credit Unions Adds Jim Regan, CEO of DCU, as Trustee The oldest and largest mutual fund created for and by credit unions, Trust for Credit Unions, has appointed Jim Regan as a trustee of the funds, efJim Regan fective Jan. 1, 2013. Regan has been an active participant in Callahan Credit Union Financial Services Limited Liability Limited Partnership (CUFSLP), the administrator of Trust for Credit Unions (TCU), for more than 10 years. CUFSLP is a CUSO comprised of 36 leading credit unions. Currently president and CEO of Digital Federal Credit Union (DCU), Marlborough, MA, Regan has been a part of the credit union community since 1992, when 26 | centerpoint | winter.2013
he joined DCU as an internal auditor and later served as its chief financial officer. In response to his new appointment, Regan said, “The trust’s 25-year track record is a testament to its relevance as an investment option for credit unions. The industry needs to be able to continue to develop investment vehicles that fit credit union balance sheets, and TCU provides a great platform for doing just that. I look forward to joining the trustees and working on the next evolution of the TCU fund family.” Jim Barr, chairman of the TCU board, said, “Jim brings an important perspective with his experience as an investor in the TCU funds, as well as his involvement with CUFSLP. Paired with his credit union management credentials, Jim is a valuable addition to the board.” According to Chip Filson, president of TCU, trustees are a vital component in the trust’s organizational structure. They oversee the performance of all the service providers and ensure that compliance and risk management practices are always up to date. The trustees of TCU are elected by the shareholders. The combination of experience and independence reflects both the cooperative design and SEC regulations for trustee selection.
Southworth Appointed Interim CEO of Leominster Credit Union Carol Southworth, senior vice president, retail, has been appointed interim president and CEO at Leominster Credit Union, Leominster, MA. She replaces Carol Southworth former President and CEO Paul Gilbody, who recently resigned. Southworth, who has worked in the financial services industry for more than 20 years, joined the credit union in 2001. In her role as senior vice president of retail, she oversees all branch activities, call center, facilities, financial education, and bank security. She previously held management positions at Fleet Bank and Commerce Bank and Trust. She is active in the local community and serves on several boards. “We have every confidence that the
management of the credit union will be in good hands under Carol’s leadership, and that she has the full support of LCU’s board and executive management team,” said Anthony A. Gasbarro, chairman of the board. Gasbarro indicated that Gilbody, who was named to the position in August 2012, resigned on amicable terms. According to Gasbarro, the board will immediately embark on a search to identify and appoint a new president/CEO.
Service Credit Union Globe Dedicated to President and CEO Gordon Simmons
Service
Credit
Union
President/CEO
Gordon
Simmons stands outside Service Credit Union Corporate Offices overlooking the sculpture.
The Service Credit Union, Portsmouth., NH, board of directors proudly dedicated its globe sculpture to President and CEO Gordon Simmons at the conclusion of their grand opening ceremonies. More than 250 people attended the event at the credit union’s new LEED-certified corporate offices building in Portsmouth. The spherical steel representation of the Earth is 10 feet in diameter with three outer rings and is situated on the eastside of the new corporate offices. Board of Directors Associate Member Joanne Whiting cited Simmons for his commitment, dedication, and leadership, saying of his tenure, “assets went from $280 million to over $2 billion. We are the 61st largest credit union in the U.S. We had 70,216 members in 1995 and have more than 168,000 members now.” Under Simmons’ watch, Service Credit Union was one of the first of 24 credit unions to introduce a website. Online banking and bill pay was launched. Shared branching, e-statements, guaranteed pay, instantly-issued credit and
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debit cards, mobile banking, mobile apps, remote check deposit, and PopMoney all became a reality under his leadership.” The dedication plaque reads “Gordon Simmons, whose global perspective and visionary leadership has contributed so greatly to Service Credit Union’s growth and success.” The globe was designed by Kim Brandell of Brandell Studios in Key Largo, Florida.
In Memoriam Woodlands Credit Union, Berlin, NH, formerly United Brotherhood Credit Union, mourned the passing of a distinguished former director and officer, Anthony T. Cellupica, who passed away on October 29 at the age of 91. A 40-year member of the credit union, he served many years on the credit union’s board of directors, including the office of president. The board and staff of the League extended their most sincere sympathies to the Cellupica family.
Senior Vice President of Jeanne D’Arc Credit Union Retiring
Kathleen Grieco
Jeanne D’Arc Credit Union, Lowell, MA, announced that Kathleen Grieco, senior vice president and chief lending officer, retired on December 31, after 20 years of service to
the credit union. Kathleen Grieco joined Jeanne D’Arc Credit Union in 1992 as assistant vice president of mortgage lending. Throughout her tenure, she has overseen consumer and mortgage lending as well as collections. She has more than 30 years of financial management experience in the banking industry. “Kathy’s leadership and insight has been valuable to our organization,” said Mark S. Cochran, president and chief executive officer. “She has been a strong advocate for our members and employees alike. We appreciate Kathy’s commitment to the credit union’s success and all that she has accomplished over her career.”
Jeanne D’Arc Credit Union Promotes Dame, Bisson Mark S. Cochran, president and chief executive officer of Jeanne D’Arc Credit Union, Lowell, MA, announced the promotions of Kathryn Dame and Anne-Marie Bisson. Kathryn Dame Kathryn Dame has been promoted to vice president of branch administration. Dame has worked at Jeanne D’Arc Credit Union for 17 years in many different capacities, from teller, to corporate trainAnne-Marie Bisson ing, to her current role as branch administrator, in which she oversees the six branch offices of the credit union. She is a graduate of UMass Amherst. Dame is the president-elect of the Dracut Rotary Club, the president of Ste. Jeanne d’Arc School Athletic Booster Organization, and is a coach for Jeanne D’Arc Credit Union’s MoneyStrong for Life Challenge. Anne-Marie Bisson has been promoted to vice president of financial education. Bisson has worked at Jeanne D’Arc Credit Union for 22 years in many different capacities, from teller, to member service representative, to her current role in financial education, in which she oversees the credit union’s high-school branches as well as all aspects of the credit union’s financial education efforts. She is a member of the Lowell Public Schools superintendent’s Advisory Board, Northeast regional coordinator and treasurer of the National Youth Involvement Board, a member of the Massachusetts Credit Union League Financial Literacy Committee, and a trustee at Ste. Jeanne d’Arc School. Bisson is a graduate of the city of Lowell’s Public Matters program and is the president and founder of Catie’s Closet.
Northeast Credit Union Announces Promotions of Senior Management
Robert Wester
28 | centerpoint | winter.2013
Northeast Credit Union, Portsmouth, NH, announced the promotion of two vice presidents. Robert Wester, vice president of operations, has been promoted to the position of senior
vice president of operations, and Thomas Weaver, vice president of lending, has been promoted to the position of senior vice president and chief lending officer. “Robert and Tom have both been instrumental in the growth and success of Northeast Credit Union over the past years,” said Peter J. Kavalauskas, president and CEO of Northeast Credit Union. “Their vision, experience, and dedication to serving member needs will help position the credit union for even greater growth as it continues to fulfill its mission of providing safe, high-quality financial services to meet the needs of its member-owners. We are fortunate and excited to have such accomplished staff.” Thomas J. Weaver joined the credit union in 2007 and has over 25 years of lending experience. Prior to joining Northeast, he worked at TD Bank as vice president and Northern New England sales manager. He is a member of Credit Union Direct Lending’s (CUDL) Advisory Board and he runs Northeast Credit Union’s indirect lending CUSO, IAS. Robert H. Wester is a graduate of Northampton Junior College with a degree in business management; he also completed business management courses at New Hampshire College. He joined the credit union in 2006 and brings over 38 years of banking experience. Prior to joining Northeast, Wester was vice president of operations at Washington Mutual and Providian National Bank. Active in his community, he is a member of the Kennebunk Portside Rotary Club, an organization for which he served as president in 2011-2012.
STCU Credit Union Hires Maria T. Lopez as Assistant Vice President STCU Credit Union, Springfield, MA, hired Maria T. Lopez as assistant vice president of the Westfield, MA, branch. Lopez brings with her over 23 years of exMaria T. Lopez perience, 13 in mortgage lending. She graduated magna cum laude from Elms College, earning a bachelor’s degree in business management and marketing. She speaks Spanish and English.
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Granite State Credit Union Appoints Four Assistant Vice Presidents Granite State Credit Union (GSCU), Manchester, NH, has announced the appointment of four assistant vice presidents to its management team. The Tracey Healey promotions include: Tracey Healey to assistant vice president, branch operations; Jennilene Johnson to assistant vice president, mortgage and commercial lending; Lisa Egan Jennilene Johnson to assistant vice president, consumer lending; and Lisa Reeder to assistant vice president, technology. “Tracey Healey, Jenn Johnson, Lisa Egan, and Lisa Reeder Lisa Egan have each demonstrated tremendous dedication and represent a core group of expertise within Granite State Credit Union,” notes Denise L. Caristi, president and CEO. “Their individual Lisa Reeder and collective contributions to the organization have played a significant role in the growth that the credit union has realized in the past several years. The appointment of these assistant vice presidents to our management team will assist GSCU in upholding its tradition of service excellence to its members while continuing to build upon expanded operations and advancements throughout New Hampshire.” In her 19-year career with Granite State Credit Union, Healey has demonstrated cross-functional knowledge in her roles as Manchester branch supervisor, credit resolution supervisor, and branch sales and service manager. Her experience has encompassed consumer lending, branches, and credit resolutions. Healey holds a bachelor’s degree in business administration from Southern New
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Hampshire University. As the mortgage and commercial lending manager, Johnson has maintained responsibility for the growth of the mortgage and commercial lending portfolio. Johnson, who has been with Granite State Credit Union for 17 years, has also held the positions of mortgage servicing and underwriting, mortgage loan manager, and business development officer. Johnson has her bachelor’s degree in business administration from Southern New Hampshire University. During her 19 years at Granite State Credit Union, Egan has advanced from teller and member service representative to lending and call center manager. Egan also held other positions within the credit union, including consumer lending supervisor, HR training coordinator, and interim mortgage lending manager. Egan holds a bachelor’s degree in business administration from Plymouth State University. Reeder has been with the credit union for 17 years with responsibilities including member services, the call center, marketing, branch management, consumer lending, and electronic services management. She holds a master’s degree in organizational leadership from Southern New Hampshire University and received her undergraduate degree there as well.
Debra Hayward, Vice President of Lending, Celebrates 20 Years of Service at Pioneer Valley Federal Credit Union Pioneer Valley Federal Credit Union (PVCU), Springfield, MA, congratulates Debra Hayward, vice president of lending for 20 years of service. Over Debra Hayward the years Hayward has overseen the operations and strategic development of the consumer and real estate initiatives of the lending department. Hayward is also a Certified Credit Union Financial Counselor and helps members to plan and maintain a successful financial life. Her hard work and commitment to PVCU and the credit union movement is greatly appreciated. •
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C R E D I T U N I O N C A L E N DA R
Special Events CUNA Governmental Affairs Conference February, 24-28...........................................................Washington, DC Bowling Tournament to Benefit Special Olympics Rhode Island March 27............................ East Providence Lanes, East Providence, RI
Financial Educators Meeting May 16................................Credit Union Center, Marlborough, MA Exceptional Leadership – Part II of II June 4.................................Credit Union Center, Marlborough, MA
Webinar and Webcast Sessions
The Great New England Credit Union Show April 24.................................................... Holiday Inn, Boxborough, MA
Qualifying Borrowers Using Personal Tax Returns, Part 2 February 20
Special Olympic Rhode Island Summer Games May 31 – June 2...................... University of Rhode Island, Kingston, RI
Guidelines for OREO February 26
Richard D. Mahoney Memorial Charity Golf Tournament to Benefit Make-A-Wish Foundation® of New Hampshire June 13..................................................Candia Golf Links, Candia, NH
Consumer Debt Resolution Series: Adv. Collection Techniques That Reduce Delinquency & Loss February 27
Credit Unions of Rhode Island Charity Golf Tournament July 15.................................... Crestwood Country Club, Rehoboth, MA
What You Need to Know about Guarantors, Co-Signers, Personal Guarantees & More March 5
Massachusetts Credit Union League Charity Golf Tournament to Benefit Massachusetts Coalition for the Homeless August 14.......................... Juniper Hill Golf Course, Northborough, MA
CONFERENCES AND CONVENTIONS Spring Volunteer Development Conference April 20-22........................................ Chatham Bars Inn, Chatham, MA Credit Union Association of Rhode Island Annual Meeting and Get-Together May 8..............................Metacomet Country Club, East Providence, RI New Hampshire Credit Union League Annual Meeting and Convention June 7-9........................................... Stowe Mountain Lodge, Stowe, VT Massachusetts Credit Union League Annual Meeting and Convention June 26-29..................................Naples Ritz-Carlton Hotel, Naples, FL
Networks HR NETWORK MEETING HR Network Meeting March 20.............................Credit Union Center, Marlborough, MA
Fair Lending Comparative File Review March 6 Monitoring the Effectiveness of Your Compliance Program March 13 Consumer Financial Protection Bureau Update March 14 Flood Insurance Compliance Update March 19 Fair Credit Reporting and FACT Act Risk-Based Pricing Notices: Clarifying the Confusion March 20 Head Teller Development: Managing Dual Control & Cash Limits March 26 Directors Series: Enterprise Risk Management for Credit Unions: A Primer March 27 Opening Minor Accounts: Ownership, Access & Multi-Party March 28 Meeting the Requirements for Capital Adequacy & Contingency April 2
HR Network Meeting May 23................................Credit Union Center, Marlborough, MA
Mandatory Compliance Series: Compliance Rules the Front Line Must Know April 9
COMPLIANCE NETWORK
ACH Rules Update 2013 April 10
Compliance Network Meeting March 20.............................Credit Union Center, Marlborough, MA Compliance Network Meeting May 15................................Credit Union Center, Marlborough, MA
Seminars and Schools Developing Great Managers, Part I of III March 5...............................Credit Union Center, Marlborough, MA Credit Union Employee Boot Camp March 13.............................Credit Union Center, Marlborough, MA May 22................................Credit Union Center, Marlborough, MA Developing Great Managers, Part II of III April 3..................................Credit Union Center, Marlborough, MA Account Essentials April 13................................Credit Union Center, Marlborough, MA Developing Great Managers, Part III of III May 7..................................Credit Union Center, Marlborough, MA BSA Update May 9..................................Credit Union Center, Marlborough, MA May 21...................................... White’s of Westport, Westport, MA Exceptional Leadership – Part I of II May 14................................Credit Union Center, Marlborough, MA
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Consumer Dept Resolution Series: Maximizing Recoveries on Charged-Off Loans April 16 UCC Article 9 Default Provisions: What Secured Creditors Need to Know April 17 Duties of the Board Secretary: Fundamentals, Best Practices, & E-Package Delivery April 18 SBA Lending Update 2013: Trends, Regulations, & SOP 50 10 April 23 Effective Contract Negotiation, Review, & Management May 2 IT Crisis Management: Business Continuity, Disaster Recovery & Incident Response May 7
Line-by-Line Loan Review for Consumer, Commercial & Residential May 15 FFIEC Guidance on Cloud Computing: Considerations for Credit Unions May 21 The Branch of the Future: How Branches Will Serve Members Who Don’t Need Branches May 22 When Is an Item Payable? Stop Payments, Return Items & More May 29 Mandatory Compliance Series: Compliance Rules Lenders Should Know June 5 Account Card Mistakes & How They Affect Members June 6 Supervisory Duties and Responsibilities June 11 Nuts & Bolts of Effective Metro 2 Credit Reporting via e-OSCAR June 12 Pricing Consumer Loans for Profitability June 19
QuickBites
ONE-HOUR TELEPHONE CONFERENCING Short Sale.................................................................... March 26 Life Style Lending............................................................May 16 There’s an App for That – Digital Delivery...................... June 13
CHAPTER MEETINGS & ACTIVITIES – MA
Central Mass Chapter
Chapter Meetings March 13............................. O’Connor’s Restaurant, Worcester, MA May 8......................... Wachusett Country Club, West Boylston, MA
Metro Boston Chapter Chapter Meeting – Joint Meeting with Tri-County North Chapter February 19.......................................... Beacon Grille, Woburn, MA Chapter Meetings March 19.........................................Embassy Suites, Waltham, MA April 16................................................Holiday Inn, Somerville, MA May 21.................................................................................. TBD
Pioneer Valley Chapter Chapter Meetings March 12........................................... Delaney House, Holyoke, MA April 9.................................................................................... TBD May 14.................................................................................. TBD
Southern Mass. Chapter Chapter Meetings March 20................................... White’s of Westport, Westport, MA April 17.....................................Harry’s La Casa Mia, Raynham, MA May 15......................................Stone Forge Tavern, Raynham, MA
Tri-County North Chapter Chapter Meeting – Joint Meeting Metro-Boston Chapter February 19.......................................... Beacon Grille, Woburn, MA
CHAPTER MEETINGS & ACTIVITIES – NH
Merrimack Valley Chapter
Director Series: Understanding the ALLL for Directors May 8
Chapter Meeting – Annual Meeting April TBD............................... The Airport Museum, Manchester, NH
Legally Handling ATM & Debit Card Claims under Regulation E May 14
Monadnock Chapter Chapter Meeting – BSA Training and Annual Meeting April 4.................................. NGM Federal Credit Union, Keene, NH
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