Volume 28, Number 1                                                          January 15, 2008

HEADLINE NEWS

Delaware First FCU Begins Construction of a New Branch
     Delaware First Federal Credit Union hosted a groundbreaking ceremony for its new stand-alone branch in Middletown on January 7. The new building will open this summer on U.S. 301, next to the Dairy Queen in Middletown.
     Credit union officials were joined by Governor Ruth Ann Minner and Middletown Mayor Ken Branner for the event. In her opening comments, CEO Sharon Schaeffer gave a history of the CU. Founded as the Capital Trail Auto Workers FCU in 1961, the name was changed to GEMCO Employees FCU in 1979 and again to Delaware First FCU in 2002. During 2003, the CU received a community charter to serve New Castle County and also opened a branch in Middletown.
    “With all the changes, one thing has always remained constant – the members,” said Schaeffer. “We are committed to bringing the community the best financial products.”
     The new branch will feature a drive-thru window to better serve the members, according to Schaeffer. At the end of December 2007, the CU had 5,032 members and over $30 million in assets. Yvonne Leonard will be the branch supervisor at the Middletown branch. Former branch supervisor Natalie Hayden is now head of branch operations and lending supervisor for the credit union.

Sharon Schaeffer, president/CEO, Governor Ruth Ann Minner (center), and Mayor Ken Branner

Annual Credit Union Bowlathon February 15
     This year’s DCUL Annual CU Bowlathon will be held on Friday, February 15. We will return to the newly renovated Bowlerama in New Castle from 7-10 p.m. Credit unions and League business partners are invited to gather a team (or teams) of four bowlers, pick a team name, and come out for a great time. The cost is $39.95, which includes dinner, shoe rental, bowling ball use, and two hours of bowling. We’ll have door prizes, special awards and lots of fun. For more information, go to the League website at www.dcul.org. The registration deadline is February 6. See you in the alley!
[The Bowlathon to be held in Milford on February 2 has been cancelled due to lack of registration.]

Notice of League Director Election
     At this year’s League annual meeting in April, two three-year terms for League director will be filled. The terms of Jerry King, DEXSTA FCU, and Meredith Jeffries, New Castle County Delaware Employees FCU, will expire in 2008. Each CU board may nominate one eligible person as a candidate for the League board of directors. Nominations must be in writing and be accompanied by a brief written biography. Nominations are due at the League office by 4:30 p.m. on Wednesday, February 6, 2008.
     There will be no nominations from the floor during the meeting. No CU may have more than one director serving on the League board. The five other current League directors are Cheryl Chilcutt, Chestnut Run FCU; Allen Riley, Sussex County FCU; Joel Romaine, DPL FCU; Sharon Schaeffer, Delaware First FCU; and Kate Toner, Wilmington Postal FCU.

COMPLIANCE RECAP

NCUA Announces Webinar on Key Examination Issues for 2008
     National Credit Union Administration (NCUA) board member Gigi Hyland announces that she will moderate a webinar January 29 entitled “Key Examination Issues for 2008: Evaluation of Third Party Relationships and Strategic Planning.” The webinar will be held from 1:00-2:30 p.m. (EDT).
     The webinar will focus on the practical implications of the recently released Letter to Credit Unions on Evaluation of Third Party Relationships (07-CU-13) and address strategic planning considerations for management and boards of directors. The webinar will also include an interactive Q&A, which will be an integral part of the webinar.  Additional information and registration details can be found at www.ncua.gov.  

New FTC Ceiling on Disclosure Charge
     The Credit Union National Association (CUNA) has issued a final rule analysis of the Federal Trade Commission notice regarding charges permitted under the Fair Credit Reporting Act (FCRA). FCRA allows a credit bureau to charge a reasonable fee for making a disclosure to a consumer, up to a certain amount. Under the new FTC rule, the maximum amount will be increased from $10 to $10.50. The fee was originally set at $8 and is required to be adjusted periodically based on the Consumer Price Index. Adjustments are rounded to the nearest fifty cents.
     The higher ceiling went into effect on January 1. However, CUNA notes, this fee will not apply to consumers' requests for a free annual credit report under the provisions of the Fair and Accurate Credit Transactions Act (FACTA) of 2003.

Sign Up for League Councils
     The purpose of the Delaware CU Councils is to provide CU professionals and volunteers a forum for networking and sharing best practices. Council opportunities include Cards, Collections, Financial Management, Human Resources, Lending, Marketing, and Mortgage/Home Equity. Credit unions that sign up before January 31st can register for six councils for a discounted price of $1300, which includes participation by three individuals from each CU for every council meeting (held two times a year). Contact Bernadette Hines for a registration brochure.

Mortgage Forgiveness Debt Relief Act Signed by President Bush
     The Mortgage Forgiveness Debt Relief Act of 2007 became Public Law (PL) number 110-142 with the stroke of President George W. Bush's pen. The act, signed into law December 20, is intended to provide temporary tax relief to homeowners who might lose their home to foreclosure or who negotiate a loan modification.
     Previously under the country's tax code, if a lender – voluntarily or involuntarily – forgave a portion of a borrower's mortgage debt, the forgiven amount had to be treated as taxable income. Credit unions and other lenders had to file Form 1099-C, "Cancellation of Debt," to report to the Internal Revenue Service any debt of $600 or more cancelled or forgiven.
     The new law allows the discharge of indebtedness on loans up to $2 million and secured by the borrower's principal residence not to trigger federal income taxation. PL 110-142 covers only discharges made between January 1, 2007, and December 31, 2009.
     Kathy Thompson, SVP for compliance for the Credit Union National Association, reminds credit unions that 1099-C filing requirements haven't disappeared for other types of debts that aren't fully repaid. "Also, we will be watching for guidance I assume the IRS will release on how to handle information returns in these situations for this temporary period," Thompson said.
     In a statement issued at the bill's signing, the President noted the serious strains on the country's housing market. "Home values have fallen in many parts of our country. At the same time, many homeowners with adjustable rate mortgages have seen their monthly payments increase faster than their ability to pay. And now some homeowners face the prospect of foreclosure," he said.
     He noted recent steps taken by his administration meant to address the problems, including increased flexibility for the Federal Housing Administration to refinance loans for struggling homeowners and the assemblage of a private sector group of lenders, loan servicers, investors, and mortgage counselors called the HOPE NOW Alliance.

CU SYSTEM NEWS

Youth Week Art and Savings Challenge Signup Ready
     Credit unions can get Youth Week artwork and sign up for savings challenges now through the Credit Union National Association (CUNA).
Youth Week, with a theme of, "Got Green? Grow It at Your Credit Union," will coincide with Earth Day, taking place April 20-26, 2008.
     This year's corresponding Youth Week artwork will concentrate on going and saving the "green." Participants will be encouraged to build good saving habits and change current habits to protect the environment.
     Small, simple changes will be highlighted, including replacing an incandescent light bulb when it burns out with a compact fluorescent light bulb, biking or walking instead of riding in a car, donating a used toy instead of throwing it away, putting the computer monitor to "sleep" when not in use, and eating more fresh fruits and vegetables instead of processed foods.
     Along with National Credit Union Youth Week is the fifth annual National Youth Saving Challenge, where credit unions can bring youth to the credit union to open new accounts or make deposits in existing ones. Credit unions can participate by registering for free on the CUNA website and setting saving goals. They then tally the total amount of deposits, the number of new accounts opened, and the total number of deposits made by young members during Youth Week and report their results to CUNA to determine figures on a national level.
     CUNA's website also contains educational and promotional materials for Youth Week and free planning resources for credit unions. The site includes celebration suggestions from fellow credit unions, success stories, general newsletter articles, media tips to alert local media about this event, and more. Go to http://finlit.cuna.org/youth_week.html.

Mid-Atlantic Corporate Realignment and Promotions
     Mid-Atlantic Corporate Federal Credit Union announced a realignment of its senior management.
     Jay R. Murray, who will assume the role of President/CEO in August of 2008, has been appointed as President and Chief Operating Officer, while Edward Fox retains the title of Chief Executive Officer until his retirement on July 31, 2008.
     At the senior management level, all current Vice Presidents were promoted to Senior Vice Presidents. The senior management team includes: James E. Burns, SVP, Chief Financial Officer; Bob T. Frank, SVP, Information Systems; Lori A. Gall, SVP, Administration; Janice A. Goodling, SVP, Human Resources; Drew J. Kishbaugh, SVP, Payment Services; Rodney A. May, SVP, Member Services; Leigh E. Philibosian, SVP, Marketing; Brad C. Stewart, SVP, Chief Investment Officer; and Jeffrey M. Stoner, SVP, Product Strategy.
     Most areas of responsibility have remained the same with the exception of three changes that are key elements to the future growth and success of the Corporate. Jeff Stoner, previously VP, Payment Services, transitioned into a new role as SVP, Product Strategy, and Drew Kishbaugh, previously VP, Compliance and Risk, assumed the duties in the Payment Services area. Lori Gall will assume the duties of the Compliance and Risk Department in addition to her current administration role.
     Other changes to the senior management team include the recently announced hiring of Bruce Six, SVP, Asset and Liability Management, who will lead the newly created Asset and Liability Management (ALM) Department.
    
CUNA Mutual Group Discovery Conference 2008
     CUNA Mutual's Discovery Conference is scheduled for June 18-21 in Hollywood, Florida. A special discounted rate is available:
     *Early Bird Rate (January 30 to March 5): $600/attendee
     *Standard Rate (March 6 to May 9): $750/attendee
     *Guests: $250
     For more information about this conference, visit www.cunamutual.com/discovery.

POSITION POSTINGS

V.P. of Operations. Chestnut Run FCU is seeking a qualified person for the daily operation of the credit union under the direction of the President. The duties of this position require an individual with the ability to multi-task and adapt to changing circumstances on a daily basis. Requirements: At least 5 years experience in progressive supervisory management with experience in lending, accounting and good math skills. Must possess: Excellent professional interpersonal skills, good time- management, and organizational capabilities; and the equivalent of two years of college or an Associate’s Degree in specialized fields such as accounting, finance or business administration. Send cover letter, resume and salary requirements to: Chestnut Run FCU, P.O. Box 5037, Wilmington, DE 19808-0037 or e-mail melba@chestnutrunfcu.org.

Fulltime Manager. $5 million credit union, located in southern Delaware, is seeking an individual to manage the day-to-day operation of the credit union. Duties include accounting, ALM, lending, retail services, and risk management. Must have accounting experience. Previous credit union employment a plus. Some benefits. Mail resume to: Southern Delaware Management Position, c/o Delaware Credit Union League, 4 Quigley Blvd., New Castle, DE 19720.

Front Desk Office Support – Fulltime Position for North Wilmington Credit Union. Proficient in Microsoft Office, MS Word, Excel, PowerPoint and Adobe Acrobat.  Pleasant phone manner. Provide support for human resources and senior managers, set up for board meetings, organize credit union employee functions, sort and distribute mail. Must be able to multi-task. Drivers license required. EOE. Competitive salary and benefits. Fax resume to: 302-225-0619 or email hrmanager@dexsta.com.

Fulltime Teller Positions. Teller or cash-handling experience preferred. Process member transactions accurately. Must be personable, customer-focused, and reliable. Some Saturday mornings required. EOE. Fax resume w/cover letter to: Attn: HR, 302-225-0619, or email hrmanager@dexsta.com.

Head Teller & Assistant Head Teller – Fulltime Positions. Direct, train and assist teller personnel, prove branch teller work handling. Experience preferred in all aspects of this position. Resolve member problems and approve exceptions. Accurate, personable and customer-focused. Must be reliable; some Saturday mornings required. EOE. Fax resume w/cover letter to: Attn: HR, 302-225-0619, or email hrmanager@dexsta.com.

EDUCATIONAL OPPORTUNITIES

January/February QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
     •  1/29  Bank Secrecy Act
     •  2/06  Serving Members of Modest Means
     •  2/12  The Great Demographic Divide
The 1 ½ hour session runs from 11 a.m.-12:30 p.m.
     •  2/21  Safe Deposit Compliance Update
The two hour session runs from 11 a.m.-1 p.m.
     •  2/25  Growing Auto Loans by 10%
The fee for the one-hour sessions is $99; the 1 ½ hour session, $129; and the two-hour session fee is $169. The deadline to register with Bernadette Hines: one week prior to the session.

Creating a Small CU Strategic Plan – Saturday, February 16, from 9 a.m.-1 p.m. at the League office. The session is designed to give small CUs a template to create a strategic plan that will satisfy NCUA examiners. Instructor: Jim Merrill, New Jersey CU League. Fee: $80 for the manager and one board member. Registration deadline: February 6.

CU Volunteer Program: Board Strategic Planning – February 20 at Del-One FCU, 270 Beiser Blvd., Dover, from 4:30-6:30 p.m. Also February 27 at the League office from 5:30-7:30 p.m. Instructor: Patrick Mahaney. This session will review how directors can help management be better prepared to deal with the future. Fee: $95 per participant for either session. A light meal will be served one-half hour before the session begins.
Registration deadlines: February 13 and February 20.

Policies vs. Procedures and How to Write Them – Tuesday, February 26, from 9 a.m.-3:30 p.m. at the League office. Subject matter: The difference between policies and procedures and who is responsible for writing, approving, and adhering to them. Participants will gain hands-on experience editing and writing policies, procedures, and evaluation steps. Instructor: Carolyn Warden. Fee: $150 for full day session, including lunch.Registration deadline: February 19.

League Activities in December/January

LEAGUE SERVICES

            2008 Annual Meeting & Trade Show. The League will be celebrating our 50th anniversary at the 2008 annual meeting to be held on April 4-6 at Dover Downs (a change in dates and place). We have booked The Fabulous Hubcaps for our dinner-dance event and Mark Lynch as our keynoter. From Australia, Lynch experienced first hand the effects of taxation on Australian credit unions, which he will discuss in his presentation. He will also present a breakout session on board governance. Other speakers include Frank Diekmann, publisher of CU Journal, who will present CU issues in the headlines, and Dean Gray, CUNA Mutual Group, whose topic will be fraud. Informational packets have been mailed to all CU managers/CEOs. The early bird deadline is February 15.           

            Spring Vehicle Sale. The League Spring Car, SUV, and Truck Sale will be held April 24-26. Information packets have been sent to CUs that participated in the fall sale. If your CU is interested in participating and would like a packet, please contact Susan (susan@dcul.org) or Charlie (charlie@dcul.org) as soon as possible.

COMMUNICATIONS/PUBLIC RELATIONS

            Staff Travel. This January League president Pat Mahaney is attending the Association of Credit Union League Executives’ Conference and the CEO Summit, both in Florida. Prior to his trip, he visited with Southern Delaware Postal Employees FCU in Houston. Jane Bailey and Alice Smith attended the groundbreaking for Delaware First FCU’s new branch in Middletown on January 7.

            Small Credit Union Initiatives. The League staff continues to work with small (under $10 million in assets) and mid-sized ($10-20M) credit unions to help them succeed and prosper. The League has arranged for accounting help for new credit union managers, and NCUA examiner Deborah Barton came to the League on January 15 to assist interested CUs with preparation of NCUA’s 5300 report.
            Several credit unions have also told the League that NCUA examiners are asking for credit unions’ strategic plans. To help credit unions comply with this request, Jim Merrill of the New Jersey Credit Union League is going to do a Saturday session on February 16 to help small and mid-sized credit unions get started on preparing a strategic plan.
            All this information, plus articles on resources that are available for small credit unions, can be found in the year-end Essentials newsletter, which was published at the end of December. 

GOVERNMENTAL AFFAIRS

            CURIA Now Has 142 Official Backers. When Congress adjourned for the year in December, CURIA enjoyed the support of 142 cosponsors. When CURIA was introduced in the previous two Congresses, it earned 69 and 125 cosponsors, respectively. Four of the five subcommittee chairs of the House Financial Services Committee have cosponsored CURIA. Ninety-six cosponsors are Democrats; forty-six are Republicans. House Financial Services Committee Chairman Barney Frank has indicated that he would like to hold a hearing on CURIA in 2008. Chairman Frank has also been working with CUNA to move non-controversial provisions of CURIA through the House. While there was much hope this could be done before the end of 2007, CUNA now expects this type of legislation to move early in the new year.

            2007 CULAC Receipts Surpassed the $2 Million Mark; Delaware Meets Its Goal! We did it!!! Not only did the League surpass our goal for 2007, but CULAC set a new record—even for a non-election year! Way to go! 2007 was a record year for CULAC, with over $2 million raised. Not only is this our most successful fundraising year ever, but it is the first time we surpassed this major milestone!
•  CULAC’s previous record was $1.98 million in 2006, and our previous record for a non-election year (for comparison to 2007) was $1.77 million in 2005.
•  As for contributions to candidates and committees, CULAC disbursed over $1.39 million through 12/31. As of 11/30 (the latest available public data), disbursements ranked CULAC 12th among all PACs nationally and 5th among trade associations (source: CQMoneyline.com).
None of this would have been possible without your hard work and generosity. Thank you, and we look forward to an even more successful 2008!

EDUCATION

            2007 Education Results. Last year, the League offered 78 training sessions, attended by 1,012 individuals. In addition, 78 staff members participated in 22 QuickBites teleconferences without leaving their credit unions. A full listing of last year’s offerings has been sent to each credit union CEO/manager.

            2008 Upcoming Education Sessions. Education director Bernadette Hines has issued a listing of proposed training sessions through June 2008, which has been mailed to each credit union CEO/manager. The League will also continue to publish the biweekly “Meetings Reminder.”

            Volunteer Training Opportunities. “Board of Directors’ Fundamentals” was conducted by Pat Mahaney on November 7th for eleven Delaware Credit Unions. As a former DEXSTA board member for 16 years, Pat was able to present the fundamentals to newly elected board members, as well as some seasoned volunteers. This session will be repeated in 2008, along with two other board sessions on strategic planning and board officer responsibilities.

November Education Sessions

December 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).