HEADLINE NEWS

Professional and Volunteer Award Nomination Deadline: March 22
     What credit union leaders will be honored for their achievements at the Delaware League annual meeting in April? The League has issued a call for nominations, and March 22 is the deadline.
     If you know of a credit union staff person and/or volunteer deserving of these awards, the League encourages you to take a moment to complete the two-page nomination form, available from Alice Smith (alice@dcul.org).

2004 Education Honorees
     The League recently honored 48 individuals who earned 120 certificates in the STAR, MERIT, VAP and VLP certificate programs in 2004. In addition, Nancy Gregory of Pipefitters FCU earned the Certified CU Executive designation, and Terri Keene of New Castle County School EFCU was designated a certified lending specialist.
     The annual League Education Awards Dinner was held on March 8 at the Holiday Inn in Newark with 64 people, including 25 honorees, in attendance. The emcee for the evening was Patrick Mahaney, board chairman of DEXSTA FCU. Special recognition goes to Bernadette Hines, who coordinates the certificate programs and was responsible for organizing the dinner.
     All four certificate programs and specialty certifications, which have been developed by the Credit Union National Association (CUNA), help to enhance the skills of credit union staff and volunteers. In addition, CUNA has just released the new CU Advance learning program, a competency-based learning program. Courses cover four areas: business math for lending and credit; business math for share and deposit accounts; CU sales; and business communication skills.      

CUNA GAC Draws Crowd
     Under a blanket of snow, more than 4,000 people, including 17 from Delaware, attended CUNA’s Governmental Affairs Conference in Washington, February 27-March 2. The Delaware credit union attendees:
     American Spirit – Maurice Dawkins
     Delaware Alliance – Dawn Sutcliffe, Betsy Cole
     Delaware State Police – Donna Haines, Blanche Jackson, Phil Strohm, Jeff Weaver, Michael Whaley
     DEXSTA – Peg Conway, Marie Davis, Jerry King, Patrick Mahaney, Dave Marianelli, Wayne Smiley
     Sussex County – Charles Gleason, Allen Riley
     Delaware League – Bob Walls.
     In keeping with the “Main Event” boxing theme, former heavyweight boxer Larry Holmes, a CU member, told the audience to “keep fighting for what you believe in.”
     Important legislators and policymakers, such as General Tommy Franks and U.S. Secretary of the Treasury John Snow, addressed the conference attendees.
     On Tuesday afternoon, Savannah Jarrell of Delaware Alliance FCU and League staffer Alice Smith joined the other participants for our annual “Hike to the Hill.” The highlight of this visit was having Senator Carper come out of a caucus meeting in the Capitol to ask CUs about why bankruptcy reform is necessary.

Senator Carper meets with Delaware credit union representatives.

     Each team also presented the 8,061 signatures on petitions urging our members in Congress to maintain the tax-exempt status of credit unions. Thirty-five leagues participated in the national petition drive that netted more than 660,000 signatures.
     During the conference, Delaware also received the CULAC Capitol Circle Award for the sixth straight year for exceeding our fund-raising goals for the Credit Union Legislative Action Council. In 2004, CU members in Delaware contributed $5761.64, thereby surpassing our goal of $4605.35.

SYSTEM NEWS

Number of CUs Decline, But More Members Served
      The number of credit unions in the U.S. continues to decline, and a slowdown in membership growth rate to 2% the past four years has some CU executives concerned. But marketplace factors could temper the concerns. The number of CUs stands at 9,274 for the U.S. and its territories and possessions, or 9,096 in the 50 states and the District of Columbia for February, according to CUNA’s economics and statistics department, which suggests that CUs should consider two things: (1) The current 2% growth rate is still double the rate of population growth in the U.S.; and (2) Now that loan growth is approaching more normal activity, CUs can expect an increase in their membership growth rates.

CUs' January Loans/Savings Ratio Remains Steady
     The loan-to-savings ratio for CUs during January remained steady at 75.1%, as certificates and individual retirement accounts (IRAs) fueled savings growth, and mortgages and home equity loans led loan growth, according to the “Monthly Credit Union Estimates” from CUNA’s economics and statistics department. Savings for January 2005 totaled $573.6 billion, compared with $549.2 billion in January 2004. Loans grew to $430.6 billion in January 2005, up from $389.2 billion for the same period in 2004.  

Consumer Reports Notes CUs’ Low Car Loan Rates
     In the April 2005 issue of Consumer Reports, CUs scored well in providing new-car financing to consumers. The report’s results, published in “Lure of the Low Monthly Payment,” show how CUs fare in a market where 2% financing and no-payment-until-next-year programs beckon consumers. The study compared 30 car-financing options using January figures and applied them to six 2005 models. The magazine set a benchmark, calculating the total cost and the monthly payment of each vehicle using a conventional loan. The CU loan – noted at 5.2% interest – came out in front in 22 of the 30 financing scenarios.

Poll: CUNA Among “Most Effective” Groups in Washington
     CUNA has been named one of the “most effective” groups on Capitol Hill according to a poll of more than 80 members of Congress. The poll was conducted by the National Journal and published March 5. CUNA was the only financial institution trade association to be named in the poll by both Republicans and Democrats as “most effective,” and the only financial institution group to be named within the top 10 by the congressional majority GOP. Top vote-getters were (for Republicans) the National Federation of Independent Business and (for Democrats) the National Rifle Association.

Delaware Leaders in National Organizations/Events
     Maurice Dawkins, CEO of American Spirit FCU and chairman of the League governmental affairs committee, was one of 37 league representatives who attended CUNA’s recent advocacy training program. The course covered how to effectively communicate the CU message to legislators and media.
     Marie Davis of DEXSTA FCU continues to serve as Delaware’s Credit Union Legislative Action Council (CULAC) trustee. In that capacity, she attended the 2005 FEC/Fundraising Training seminar held on February 27.
     Congratulations also to League president Bob Walls, who was elected as the chairman of the board of Credit Union House at the corporation’s recent annual meeting. Bob was on the original committee which selected the site for CU House and had served as both treasurer and vice chairman of the board of directors before his current election.

CUNA Is Victim of Phishing Scam
     If you receive an email message purported to be from “America’s Credit Unions” asking for your credit card number, do not click on the link. It’s a fraudulent email attempting to collect account information, commonly known as phishing.
     CUNA does not have access to accounts of CU members. A fraud alert was posted on its website immediately advising members not to click on the link. For more information on how to avoid phishing scams, go this resource site: http://www.antiphishing.org/consumer_recs.html

EDUCATIONAL OFFERINGS

CUNA Management School: A Tradition of Excellence
     This year marks the 51st year of the longest running continuing education program of its kind in the credit union movement - the CUNA Management School in Madison, Wisconsin.  Registration is now open for this three-year management development program. Designed for management personnel who aspire to achieve senior-level management and leadership positions, the school provides valuable leadership skills and lessons as a strategic step toward career advancement. 
     This program, taking place from July 10-22, 2005, consists of three years of a single two-week session each summer. Students study lessons such as credit union philosophy, business law, strategic marketing, management, finance, accounting, ethics, economics, and more. 
     Second and third-year students are also required to complete two substantial written projects. The second year project pertains to the historical perspective of their credit union, while the final year project challenges the student to develop a strategic plan for their credit union's future.
     Since its inception in 1954, CUNA Management School has turned out more than 4,000 graduates. Current Delaware management staff who are graduates of management school are Allen Riley, Christine Kaczmarczyk, Anthony Hinds, Cheryl Chilcutt, Keith Parsons, Jerry King, Tom Munley, Betty Sartin, Barbara Arrowsmith, Bea Conrad Strupe, and Sharon Caulk.
     The tuition cost is $2,149, which includes classroom instruction, most meals, and housing in a residence hall. For more information about program content for the Madison CUNA Management School, visit www.training.cuna.org or call (800) 356-9655, ext. 4123. Alice Smith at the League also has registration/program brochures available.
     Scholarship assistance is also available. The application is part of the Management School registration brochure, and the deadline for submission is April 15 to be eligible for funds for the 2005 summer session. Scholarship amounts vary depending on the number of qualified scholarship applications received. Special funds are also available for community development CUs and CUs under $6 million in assets.

Home Equity Loans Hit Record; League Offers Training
     Home equity originations jumped 35% to a record $431.3 billion in 2004, according to SMR Research Corporation. Most of that growth was in variable-rate lines of credit tied to the prime rate. This increase in home-equity lending may reflect a deeper shift in consumer borrowing. Home equity loans in CUs totaled $34.1 billion in November, representing 8% of all CU loans, according to CUNA research.
     The Delaware League is offering a training session on home equity lending on Tuesday, March 29, from 8:45 a.m.-1 p.m. at the League office. Rick Menton will cover these topics: a market overview, identifying resources, appraisals, identifying risk factors, underwriting, credit scoring, disclosures, collections, and policies. The registration cost is $125 per person and space is still available, so call today!

CUNA Brings Compliance Schools Close to Delaware in April
     Every CU needs at least one person on staff that has a solid understanding of the CU laws and regulations that affect your operations. CUNA offers a compliance school twice a year that provides a comprehensive overview of more than 25 important regulations from A to Z and beyond. And the school coming in April will be at the Omni Shoreham Hotel in Washington, D.C.  The line-up includes:
§         Compliance Fundamentals Seminar 4/16-17
§         Regulatory Compliance School Intro 4/17-22
§         Regulatory Compliance School Update 4/17-21
     The fundamentals seminar fee is $500, the introduction is $1395, and the update is $1295.  Can’t attend every day? Customize your training by choosing the day(s) you want to attend for just $375 per day. Testing will also be held for earning your RegTraC certification or recertification during this time.
     For more information on the complete schedule of courses, call 800-356-9655, ext. 4079, or go online to CUNA’s website at http://training.cuna.org/on_site/RC1DC05_fct.html
     If you cannot attend one of these schools, there is also an eLearning option – same content without the travel or time out of the office. Go to http://training.cuna.org and click “eSchools and Webinars.”

DELAWARE NOTES

AMERICAN SPIRIT FCU is the first Delaware CU to commit to sign up for the MARS/Allpoint Surcharge-Free ATM Network. The deadline to sign up is June 14, but CUs that sign up earlier will go on the top of the list for implementation and can begin offering this important program to their members sooner. American Spirit CEO Maurice Dawkins says it’s a “win-win program and we can’t wait to get started on it.” CUs may send your signed contracts to League EVP Jane Bailey or directly to Allpoint. Contact Jane for more information or to notify her if you have dealt directly with Allpoint.

Callahan and Associates has designated DELAWARE FCU as the #10 CU nationally over $50 million in the area of return on assets (ROA) for the period ending December 31, 2004.

Ann Duling, mortgage processor, for LOUVIERS FCU, attended CUNA’s Advanced Mortgage Lending Strategies School on March 3-9 in Florida.

The Delaware Cooperative Extension Service (DCES) is looking for CU employees or volunteers who would be interested in working with 11-15 year olds on financial and consumer related issues. The agency, which administers the state’s 4-H program, has "project books" on these topics and is trying to put together teams of 4-Hers who will compete in a bowl-type event at the state fair. They are seeking adults who are interested in working with the kids – probably evenings or weekends – to review topics and practice for the bowl. As a 4-H volunteer, the persons would go through a minimal screening process, have some training time with director Maria Pippidis to familiarize themselves with the materials, and then work with a group of kids. This might be done at someone’s home, a library, or an office. DCES can use volunteers in all three counties. If you would consider volunteering, please contact Alice Smith at the League for more information.

EDUCATION OPPORTUNITIES

March Quick Bites Calls:
3/16      Reinventing the Consumer Lending Experience – 11 a.m.-noon, $99
3/23      Trust Accounts – 11 a.m.-noon, $99
The fee includes unlimited staff participation at your own site. The deadline for registration is one week prior to the session. Call Bernadette to enroll.

One-Hour Compliance Webinars
§         Tuesday, March 22, at 10 a.m. – CTR and SAR Form Filing Details. Fee: $100.
§         Thursday, March 24, at 10 a.m. – OFAC, FinCEN, & CTR Exemption Form Filing Details. Fee: $100.
For more information, phone Don Baumann of the co-sponsor Verisure at 1-315-638-4334.

CU Council Meetings
§         Mortgage Council – Wednesday, March 16, at 10 a.m. Topic: Reverse mortgages.
§         Cards Council – Wednesday, March 23, at 10 a.m. Topic: Portfolio development.
Each session is free to registered 2005 council members; $65 per person for non-council members.

Fundamentals of Home Equity Lending – Tuesday, March 29, from 8:45 a.m.-1 p.m. at the League office. Rick Menton will cover such topics as underwriting, credit scoring, disclosures, policies, etc. Cost: $125 per person. Space still available.

Habits of Highly Effective Board Members – Tuesday, March 29, from 5:30-8:30 p.m. at the League office. This session is targeted for CU board members to examine responsibilities, recruitment, ethics, CEO/board relations, etc. Cost: $75; includes a light meal. Space still available.