Volume 27, Number 17                                September 15, 2007

HEADLINE NEWS

Barbara Arrowsmith Retires
     Barbara Arrowsmith, president of New Castle County Delaware Employees Federal Credit Union, retired on September 13, after 24 years of serving credit unions in Delaware.
     Barbara began her career as the treasurer-manager of the Wilmington Transit Employees FCU in 1983 and then became manager of Wilmington Newspaper FCU in 1985. Her tenure as president of New Castle County Delaware EFCU began in 1992.
     Barbara graduated in 1987 from the Northeast CUNA Management School, where she was a member of the team winning the best management award. She also served as a member of the Delaware Credit Union League board of directors from 1989 to1992 and championed the interests of small credit unions throughout her career.
     Barbara’s immediate plans are to keep spoiling her twin grandchildren and to continue sailing the seas on various cruise vacations.
     Meredith Jeffries has been promoted to the position of president of the credit union effective September 14. She also serves on the League’s board of directors.

Credit Union Employee Helps Police Nab Sex-Assault Suspect
     A subheading in an article that appeared in the September 6 issue of The News Journal attributes a “keen-eyed” clerk at the Sussex County FCU with helping police catch a sex-assault suspect.
     The unidentified credit union employee at the Milford branch on Aerenson Drive called 911 after the suspect, Harold Alton Shook, walked in to cash a Social Security check on September 4. The state police said that the employee recognized Shook, wanted for a sexual assault on an eight-year-old girl, from a photo released by the media. The employee immediately called 911 while the suspect was still inside the credit union.

Time is Running Out to Register for…

•  Sign up today for the Delaware Credit Union League’s Fall Business Mixer Golf Outing. This popular annual event mixes CU executives with League business partners and associates. Come out and join the fun on Tuesday, October 9, at the Deerfield Golf & Tennis Club in Newark, Delaware. For more information or to get a registration form, call Pat Mahaney at the League office or email pat@dcul.org. You can check out the course on www.deerfieldgolfclub.com.

•  The 11th Annual Volunteer Leadership Conference, scheduled for October 26 - 28, 2007, in Ocean City, MD, will feature former NCUA Chairman Dennis Dollar andcurrent NCUA Chairman JoAnn Johnson, as well as valuable breakout sessions. The registration deadline for both hotel rooms and the conference is September 25.

Consumer Reports Gives High Marks to Credit Union Credit Cards
     The October issue of Consumer Reports includes a three-page article on the “Best & Worst Credit Cards.” In a survey, conducted by the Consumer Reports National Research Center, exceptionally high ratings were given to Navy FCU, Virginia, as well as other credit unions for their interest rates. The article suggests it might be a good idea to join a credit union “if only for a good credit card.”
     George Overstreet, a University of Virginia finance professor who studies credit union operations, was quoted in the article, “Credit unions are more focused on keeping their members happy, while banks have to worry more about keeping their investors happy.”

COMPLIANCE RECAP

HOEPA Thresholds Change in January
     The National Credit Union Administration (NCUA) has issued Regulatory Alert 07-RA-06, in response to the Federal Reserve Board’s recent announcement of changes to the trigger amount requiring additional disclosure in accordance with Reg Z. Section 32 of Regulation Z implements the Home Ownership and Equity Protection Act (HOEPA) of 1994. Effective January 1, 2008, the minimum threshold for total fees and points will increase from $547 to $561. Read the alert at http://www.ncua.gov/news/express/xfiles/07-RA-06.pdf.

NCUA Opinion Letter: Permissible Political Activities for CUs
     NCUA has issued a legal opinion letter which provides additional guidance to a previously issued legal opinion letter addressing permissible political activities of credit unions. Letter 07-0222, dated June 19, 2007, outlines several ways in which credit unions may legally participate in political activities. For example, a credit union may advocate for the election or defeat of a federal candidate and may solicit funds for particular candidates when communicating directly with members. To obtain more information about this letter, please visit: www.ncua.gov/RegulationsOpinionsLaws/opinion_letters/2007/07-0222.pdf.

If Your Examiner Asks, Do You Know Where Your Bylaws Are and Are They Up-to-Date?
     Many credit unions are reporting that NCUA examiners are asking for a copy of a credit union’s bylaws during the examination process. Examiners are also checking to see that bylaws are current and approved by the CU’s board of directors.
     NCUA made extensive revisions to their bylaws in 2003 and other minor revisions in 2006. Several of the provisions in older versions have been superseded by changes in the law and regulation. So if your credit union has not reviewed its bylaws since 2003, you may want to do an assessment. To download the bylaws from NCUA’s website, go to http://www.ncua.gov/GuidesManuals/bylaws/fcubylaws.html. You can also purchase a hard copy from NCUA.

CU Compliance Resources
     The Credit Union National Association (CUNA) and the Delaware League are partners in providing compliance information and support to your credit union to help you understand compliance requirements. Here are some of our offerings:

•  CUNA’s Credit Union Compliance Seminar in a Box Series. Designed with your CU’s demanding schedule and training needs in mind, the box series provides a solid line-up of compliance training seminars for staff. Seminars in a Box for Staff are just $279. The CU Compliance Seminars in a Box series includes the Bank Secrecy Act, Regulation CC – When Your Member’s Deposited Funds Must Be Available, and Disaster Recovery: Training and Preparing Your Staff.  For more details, go to http://training.cuna.org/seminars_ina_box.html.

•  CUNA’s Bank Secrecy Act Conference. Includes a BSA certification through testing. October 28-31, 2007, in Tempe, Arizona. CUNA also offers numerous BSA training webinars during the year. For more information, go to www.cuna.org, then “Training,” then “Schools and Conferences.” Or call 800-356-9655, ext. 4249. Contact Alice Smith about a League scholarship.

•  RegTraC. CUNA’s regulatory training and certification program provides comprehensive, self-study compliance education. Level 1 is a five-volume program for non-compliance staff with open-book testing; Level 2 is a six-volume program designed for compliance specialists with a national designation, CUCE (Credit Union Compliance Expert), earned by passing five proctored exams. Go to www.cuna.org, then “Training,” then “Self-Study Certificate Programs.” Or call 800-356-9655, ext. 4210.

•  Compliance Recap. Monthly the League sends each CU manager/CEO a compilation of compliance information obtained through various sources. The recap always includes a hard copy of CUNA’s monthly electronic compliance newsletter, Compliance Challenge, which offers a quiz format to challenge the reader’s knowledge of current compliance issues. This monthly resource is compiled by Susan Fallon at the League.

•  COBWEB. Join your colleagues on the CUNA –sponsored listserv where CUs discuss compliance and operational issues. Go to www.cuna.org, then “Compliance,” then “Cobweb.”

SYSTEM NEWS

Senator Carper Visits Del-One
     Employees of Del-One (Delaware Federal Credit Union) were excited to meet and speak with Senator Tom Carper on Friday, August 24, 2007. Del-One’s Board of Directors and President/CEO Duke Strosser took Senator Carper on a tour of their new corporate facility and main branch. Throughout the tour, Senator Carper spoke with Del-One employees about various items such as family, work, and service.

 
Pictured (left to right back): Robert Baldwin; Board chairman Robert Seaberg; Bill Hufnal; President & CEO Richard “Duke” Strosser; Sharee Coleman; Renee Thompson. Pictured (left to right front): Debbie Cook; Steve Smith;, Karen Whitaker; Senator Tom Carper; Judy Cook; Heather Ebaugh; Bryce “Breezy” Brown; and Tarra Jackson.

     While interacting with staff, Senator Carper relayed his thoughts on how important public service is and how much he enjoys it. CEO Duke Strosser responded, “We can relate to what you’re saying, Senator. That’s exactly why we come to work every day, to serve our members and carry out the credit union philosophy of ‘People Helping People.' We understand service, especially from a ‘volunteer’ perspective; our entire Board of Directors is made up of volunteers and that sets us apart from other financial institutions.”
     After a short stop for photos with the staff, Senator Carper wished everyone well and continued on his tour of area businesses.   

Money Talks: A Financial Education Program for Women
     Del-One is joining with the Cooperative Extension Service, Delaware Women in Agriculture, and Middletown High School to sponsor a financial education program for women.
     Especially designed to empower women and couples to make informed financial decisions, the Money Talks program includes sessions on how to identify where you are now and where you want to be; how to know where your money is going and why; and how to build financial security from the ground up. Building on the these financial basics, participants will learn how to conduct financial inventories; design personal cash‑flow systems; learn about investments and making investment choices; and begin planning for retirement and what to consider for estate planning.
     This five-part series builds confidence in financial decision making, provides opportunities for skill building and self inventory, and provides the opportunity for women to learn and discuss with their peers and experts their financial concerns. Each session will include a presentation and activities based on the Money Talks guide book.
     When:  Consecutive Tuesday evenings starting October 16 through November 13 from 6:30 p.m. to 8:30 p.m.
     Where: Middletown High School
     Cost: The cost is $45. Pre-registration is required. Contact Bonnie Ross at 302-831-1239 for registration information or download a brochure at http://ag.udel.edu/extension/ncc/nccindex.php.
     Deadline: The registration deadline is October 10.
     Credit unions are encouraged to publicize this series to your members. Alice Smith will be sending each credit union a copy of the formal information flyer.
     For more information on the program, contact Maria Pippidis at 831-1239 or pippidis@udel.edu.

Volunteers Under 30 Needed To Raise Awareness in Serving Gen Y
     The Filene Research Institute is recruiting young credit union professionals under the age of 30 who are employed full-time to be part of a group called “30 Under 30.” The participants will serve a one-year term with a focus on fresh and practical ways to make credit unions more relevant to young consumers, young professionals, and young board members. For additional details, please visit www.filene.org/home/research/30u3.

DELAWARE NOTES

The League congratulates three Delaware credit unions that celebrated milestone anniversaries in August:
     Peninsula Methodist FCU – 40 years (August 8)
     Delpart FCU – 45 years (August 27)
     DPL FCU – 45 years (August 29)

Delaware Department of Labor FCU has a new manager, Jennifer Balkum. The credit union’s former manager, Carolynn Belile, has retired after 20 years with the CU.

Del-One employees stepped forward to help ensure that Delaware’s children have the appropriate ‘back to school’ supplies they need for this school year. Employees contributed 24 packed book bags and several additional supplies to local students during August of this year. These supplies were donated in conjunction with the Adopt-a-Student program.

Milford Memorial FCU held a member fair on September 13 at the hospital, where many of the credit union’s members work.

Milford Memorial FCU board and staff with member fair door prizes (l. to r.): Norman Lear, board chair; Sherry White; Norma Potter, treasurer; Mary Warnick, Dorlene Fox; Pam Slater, manager/CEO; and Gwen Hebert (front).

The story of Eagle One FCU’s conversion from the Director’s solution to the more advanced Mercury® system was featured in the most recent issue of Fidelity Integrated Financial Solutions’ newsletter. The Windows®-based Mercury system provides faster electronic processing to support Eagle One's 14 terminals and multiple printers. According to CEO John King, “The credit union's staff adapted very quickly, thanks to user friendly screens and intuitive software.”

Tarra Jackson, VP of Lending at Del-One, attended CEO Institute I, held April 15-20 at the WhartonSchool of the University of Pennsylvania in Philadelphia. Her picture appears in the September 2007 issue of Credit Union Management.

Corporate account manager Debra Cohn of Mid-Atlantic Corporate FCU hosted a dinner for her CU clients on September 13 in Dover. On another note, the following Delaware credit unions are now using Mid-Atlantic Corporate’s PPD services: New Castle County School EFCU and Louviers FCU.

Mid-Atlantic Corporate small credit union dinner (back row l. to r.): Ralph Johnson and Ed Grebe, Newark, Delaware City EFCU; Pam Slater, Milford Memorial FCU; Dan Komara, Delpart FCU. (Front row l. to r.): John Watson, Seaford FCU; Mid-Atlantic host Debra Cohn; Veronica  Cirks, Delpart FCU; and Ernie Lewis, ICI America, FCU.

EDUCATIONAL OPPORTUNITIES

September/October QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
•  10/02  How to Lend to the Underserved Market
•  10/11  Regulation B – Lending Policies
•  10/25  Face-to-Face Selling Skills
•  10/30  Disaster Recovery: Business Continuity
Two-hour session runs from 11 a.m.-1 p.m.:
•  10/17  Teller Regulations
The fee for the one-hour session is $99 and the two-hour session: $169. Deadline to register: one week prior to the session. Call Bernadette Hines to enroll.

Upcoming Council Meetings
•  Mortgage Council: Wednesday, September 26. Topic: Reverse mortgages. Enroll with Jane Bailey by September 19.
•  Human Resource Council: Thursday, October 11th. Speaker: Attorney Bob Nagle.
Both sessions will run from 10 a.m.-noon at the League office. There is no fee for council members. Fee for non-council members: $75.

Managing Your CU in Difficult Times: Total Balance Sheet Management. Two sessions designed for different audiences. This session will offer guidance to CUs who are seeing their net interest margin erode, earnings slide, and operating costs increase. Both sessions will be held on Wednesday, October 3, at the League office.
     1) Full day session for CEOs and financial management staff: 9 a.m.-3 p.m.
     2) Evening session for volunteers: 5-7:30 p.m.
The presenter will be auditor and trainer Mark Smith, who has spoken at the League on previous occasions. Registration deadline: September 26.

Other October Events
    
October 9          DCUL Annual Business Mixer Golf Outing. Deerfield Golf Course, Newark
                          Registration deadline: September 28.
October 26-28   DE/MD/DC Annual Volunteer Leadership Conference (VLC)
                          Clarion Fontainebleau Hotel, Ocean City, Maryland.
                          Registration deadline: September 25.

League Activities in August-September

COMMUNICATIONS/PUBLIC RELATIONS

          Credit Union Supplement. Eleven credit unions will be advertising in this year’s Credit Union Day supplement, which will appear on October 16 as an insert in The News Journal. This year’s theme will be “Credit Unions: Get the Difference.” A listing of all Delaware credit unions with contact information will also appear in the supplement.

          Volunteer Leadership Conference. The deadline for registration is fast approaching – September 25! The date for the conference is October 26-29 at the Clarion Fontainebleau in Ocean City, Maryland. Brochures have been mailed to CU managers/CEOs, board chairs and supervisory committee chairs. Information can also be found on the League website. Scholarships are available to credit unions under $20 million in assets – call Alice Smith.

          AACUL Communicators’ Conference. Alice Smith attended the American Association of Credit Union Leagues (AACUL) Communicators’ Conference in August and learned that the 2006 Delaware League Annual Report had won an honorable mention award in CUNA’s PRO and Blockbuster Contest. The competition was open to state credit union leagues/associations throughout the country.

GOVERNMENTAL AFFAIRS

          CURIA Matches 2006 Co-Sponsor Level. Co-sponsorship for the 2007 Credit Union Regulatory Improvements Act (CURIA, H.R. 1537) reached an important milestone last week. In less than six months, the bill has gathered 125 signatures, equal to the number of co-sponsors that were featured during all of the 109th Congress. Key features of the 2007 bill include proposals to:
•          Clarify the 1998 Credit Union Membership Access Act to allow all credit unions, regardless of charter type, to serve those in underserved areas. The bill would also update the definition of an underserved area.
•          Promote the Development Financial Institutions Act and the New Markets Tax Credit;
•          Increase the current cap on loans to members for business purposes (MBLs) from 12.25% to 20% of assets, allowing credit unions to assist more members in starting and expanding small businesses and to promote economic growth. The bill would also exempt loans under $100,000 and those to nonprofit religious organizations from the MBL calculation;
•          Establish additional consumer safeguards in the event of a credit union conversion to another form of financial institution; and
•          Reform the National Credit Union Administration's original prompt corrective action system to a risk-based approach more closely resembling the current Federal Deposit Insurance Corp. capital standard for banks.

          CUNA’s 2008 Governmental Affairs Conference. The 2008 GAC is right around the corner. This is going to be the first year it will take place in a new venue: the Washington Convention Center. This year’s conference will be held from Sunday, March 2, to Thursday, March 6. This is a change from the past and the Hike the Hills will be held on Wednesday, with a gala that night and a final meeting on Thursday. The League was able to sign up for a sub-block of hotel rooms. We have requested 15 rooms for the following credit unions that responded to our request: American Spirit, Delaware Alliance, Del-One, DEXSTA, and Sussex County. Individual credit unions can make their own reservations when the GAC Housing opens in early November.

          Credit Union House Contributions. Del-One, New Castle County Delaware Employees, and Seaford Federal Credit Unions join six other Delaware credit unions that have made contributions to Credit Union House. Other contributing credit unions include Southern Delaware Postal Employees, Delaware Alliance, ICI America, DEXSTA, Provident, and Chestnut Run. In addition, Pat Mahaney, Jim Everhart (in memory of Gladys Duling), and Joel and Louisa Romaine have made individual contributions. There are several levels at which CUs can contribute. Even the smallest CU can contribute $25. Pat has sent a letter to those CUs that have not yet contributed.
           
          CULAC Update. American Spirit FCU, Delaware Alliance, and DEXSTA FCU staff members  participated in Dress Down Days in support of CULAC during the summer (other credit unions are encouraged to do the same during Credit Union Week in October). The same three credit unions are also selling presidential dollars as another fund-raising effort. Additionally, fourteen credit unions will again be selling candy bars in October for CULAC. Delaware is about half-way to meeting our 2008 goal of $4,741.58.

LEAGUE SERVICES

          Cards Council. The League held an interactive Cards Council session on August 30.  Representatives from the Pennsylvania Credit Union Association’s cards department facilitated the session on fraud. The group in attendance reported a decline in cards-related fraud issues. They also reported little-no service issues with Fidelity.

          Business Services. The League recently received a request by one of our credit unions for help in developing a business lending program. Delaware League Services has an agreement to market Newtek Business Solutions through CUNA Strategic Services. This is a turnkey program where the funding is passed on to Newtek. Credit unions can learn more about this program by going to the following links:
SBA Loan Referral Program
Electronic payment processing for small businesses
Web hosting, website development and domain registration
Data storage
Outsourced digital bookkeeping services
Tax filing, preparation and advisory services
The League is also looking at other providers of business lending services that will allow credit union funding or loan participation.

          Pay Day Loan Program. Another credit union has asked for help in developing a program alternative for pay day loans. The League is currently surveying our members to see if there is enough interest to pursue such a program. Three states – Pennsylvania, Maryland/DC, and Ohio – currently offer such programs. 

AUGUST EDUCATION SESSIONS

TOGETHER is published on the 15th and 30th of each month by the Delaware Credit Union League, 4 Quigley Boulevard, New Castle, DE19720. Information to be published should be sent or phoned into the League no later than the Monday of the week preceding the publication date. Telephone: (302) 322-9341 or (800) 292-7875. This newsletter can also be found on the League website: www.dcul.org. Hard copies of the newsletter will be mailed to each credit union CEO/manager for distribution to those without computer access. Readers can receive a reminder when the newest edition is posted to the Web by emailing susan@dcul.org. Editor: Alice Smith (alice@dcul.org).