HEADLINE NEWS

 

2010 Convention Wrap-Up

The Delaware League’s 52nd annual meeting and trade show was every bit a success, according to those in attendance. The Clarion Hotel in Ocean City again hosted the event, which was held April 29-May 1.

With “CU in Paradise” as a theme, the weekend featured a variety of educational, social, and business events for credit union professionals, volunteers, and their guests. Over two hundred people from 22 credit unions throughout the state attended the three-day event.

Business Meeting Highlights

Business conducted at the 52nd annual meeting included election of three League board members. Incumbent board members, Cheryl Chilcutt (Louviers FCU), Allen Riley (Sussex County FCU), and Joel Romaine (DPL FCU) were elected for three-year terms. At the reorganizational meeting, the following board officers were elected:

     Jerry King (DEXSTA FCU) – Chairman

     Joel Romaine (DPL FCU) – Vice Chairman

     Sharon Schaeffer (Delaware First FCU) – Secretary

     Cheryl Chilcutt (Louviers FCU) – Treasurer

The remaining board members are Meredith Jeffries (New Castle County Delaware EFCU), Allen Riley (Sussex County FCU), and Kate Toner (Wilmington Postal FCU).    

 

 

Delaware League Board of Directors (l. to r.). Front row: Meredith Jeffries,

New Castle County Delaware EFCU; Cheryl Chilcutt, Louviers FCU; and Kate Toner,

Wilmington Postal FCU. Second row: Allen Riley, Sussex County FCU;

Sharon Schaeffer, Delaware First FCU; Jerry King, DEXSTA FCU; and Joel Romaine, DPL FCU.

Keynote Presentation

This year’s keynote address was given by Jay Murray, President/CEO of Mid-Atlantic Corporate FCU. Murray updated attendees on the challenges of the past year in the corporate system.

In 2009, the credit union industry felt the aftershocks of the greatest economic turmoil since the Great Depression. The National Credit Union Administration (NCUA) placed the two largest corporate credit unions into conservatorship. The impact on Mid-Atlantic Corporate from the ongoing losses to the U.S. Central portfolio was an overriding concern during 2009.

Murray talked about the role of corporates and the need to strengthen the corporate system. In 2009 NCUA announced proposed changes to Regulation Part 704, which addresses substantially increased corporates’ capital requirements in the future.

Mid-Atlantic Corporate has worked diligently over the past 18 months to enhance access to sources of liquidity and diversify correspondent relationships so as to strengthen the corporate’s ability to satisfy its members’ needs for a safe and capable liquidity provider.

During 2009, management developed the details of new membership and capital conversion plans. The plan will substantially change Mid-Atlantic’s membership requirements. By introducing a maximum deposit limit, Mid-Atlantic will be able to control its capital ratio and remain compliant with the new Regulation Part 704 by monitoring total deposits and managing the size of the corporate’s balance sheet.

Murray concluded by saying that Mid-Atlantic Corporate is ready to move on, even with the challenges that are ahead. He feels that cooperation between credit unions and corporates will allow us to work through the challenges.

Business Meeting Speakers

League board chairman Joel Romaine began his remarks by paraphrasing a quote from the movie, Apocalypse Now: “Nothing else feels like a credit union.” According to Joel, in no other situation do competitors show interest in each other’s business and meet in a spirit of cooperation. He also alluded to Dicken’s novel, A Tale of Two Cities, to describe the current economic environment for credit unions: “It was the best of times, it was the worst of times.”

The bad times are represented by the continuing liquidation of credit unions and increasing regulations. But these are offset by the overwhelmingly favorable press that credit unions have received during the past year. Joel cautioned that credit unions must have vision for the future and the wisdom to prepare for it.

League president Patrick Mahaney spoke about the cost incurred during the current financial downturn, not just in terms of maintaining natural person and corporate credit unions, but also the cost to individual people (lost savings and investments, lost jobs and homes). Pat suggested that credit unions need to go back to their roots by providing top-notch service to their members. He assured attendees that credit unions can continue to do well if they maintain their cooperative spirit.

Greetings and comments were given at Saturday’s business meeting by Paul Butler of CUNA Mutual Group and Christopher Pippett, the League’s retained counsel.

 

Milestone Anniversaries

     Congratulations to the members, volunteers and staff of the following credit unions that were recognized at the annual meeting for celebrating milestone anniversaries in 2010:

§  Seaford FCU – 40  years

§  Delaware River and Bay Authority EFCU – 45 years

§  Del-One FCU – 50 years

§  Delaware State Police FCU – 50 years

§  Wilmington Postal FCU – 75 years           

§  Eagle One FCU – 75 years

Those credit unions celebrating 50 and 75 years of service received a commemorative plaque from the League and CUNA at the annual meeting.

Education Awards

League education director Bernadette Hines announced at the business session that 97 certificates were earned by seven credit unions in 2009. As a result, the following credit unions received awards:

§  CU attending most seminars in 2009 – Chestnut Run FCU

§  CU earning most STAR/MERIT certificates –  DEXSTA FCU

§  CU earning most VAP certificates – New Castle County School Employees FCU

League Strategic Planning Meeting

League president Pat Mahaney hosted a strategic update meeting on Friday afternoon, which had 40 people from 16 credit unions in attendance. He announced that the League is holding off any revamping of the dues for the time being as a direct response to the financial times we are experiencing. He also made a plea for more volunteers to serve on a special ad hoc strategic planning committee to reflect a better cross section of credit unions.

Handouts at the meeting included a list of strategic efforts already in place, a copy of consolidated financials for year-end 2009 from Larson Allen, and the year 2010 Delaware League budget. The League is pleased to note that we already have been approached by a couple of prospective volunteers. If anyone else (professional or volunteer) is interested in serving on this committee, please contact Pat Mahaney.

Fundraising Events

     A special “Putt a Nut” contest netted Children’s Miracle Network (CMN) a total of $480 to continue the agency’s good work. Half of the proceeds came from those who attempted to place their nut into a grass hut, and the other half was matched by the League. Thanks to Kathy and George Bush of Sussex County FCU who created the Jimmy Buffett themed prize. CMN would also like to thank those who contributed books, crayons and markers for the Children’s Hospital of Philadelphia.

     A special auction and the raffle of two golf drivers earned $860 for the Credit Union Legislative Action Council (CULAC) to help with political advocacy. In addition, proceeds from special events at the Thursday afternoon golf outing brought in $263 for the League scholarship program.

Professional/Volunteer Awards

The Delaware Credit Union League recognized Russell McCready as the 2009 Outstanding Credit Union Volunteer.

Russell has been a credit union member for 41 years and has been a volunteer for Dover FCU for 36 years, most recently serving as board chairman. He also served as second and first vice chairman. Outside the credit union, after 43 years of federal civil service, he retired January 2, 2001, as Chief of Freight Services, Traffic Management Office, 436th Aerial Port Squadron on Dover Air Force Base.

The nomination letter made the following statement: “Our board chairman has helped to move the board from an operations format to one of strategic governance for the organization. He created an in-service training and development program for the board members to learn new systems of governance. He established and conducts a board orientation program which identifies areas of responsibility and expectation of directors. He cultivates directors by discovering individual interests and involving them in committee or task force assignments.

“Russell collaborates well with the staff and has strong ties with the membership being served by Dover Federal. He believes that all board members should have the purist of motives: ‘service to members.’ He promotes the philosophy that all decisions for the credit union should be based on what is best for the membership. Through his leadership, the credit union has established a relationship of high trust and is committed to open communication with the members.

“He has worked with our training director to design, develop, and implement an Associate Director Orientation Program. This achievement gives the credit union the diversity of perspectives, expertise, and other input to further improve the governance of the credit union.”

 

 

The League presented the Outstanding Credit Union Professional Award for 2009 to Dona Palermo, training coordinator at Dover FCU.

The nomination letter stated: “Dona has been an educator for 23 years, so she brings many skills to her role as training coordinator for our credit union. She holds a Bachelor of Science in Business Management and completed a Master of Arts in Education/Adult and Training Education in April 2010.

“Education at the credit union is viewed in a new light with Dona leading the way. She worked to help the credit union plan and hold the first annual Team Day or as staff called it Fun Day. The event was devoted to engaging team members to share in a fun-filled, positive learning environment focused on teamwork. The team members enjoyed the event so much that she created a quarterly event, covering all six branches and corporate center, for visible reinforcement of the lessons.

“Dona recognized scheduling challenges faced by branches and departments and implemented a shared training calendar to ensure the most efficient and effective use of team members’ time. She recently instituted ‘Train the Trainer’ sessions for head tellers, assistant head tellers, and others.

“Dona designed and launched an on-line learning management system, appropriately titled the University of Dover Federal Credit Union, tailored to our credit union’s needs. Her volunteer reading program, entitled Mentoring, Awareness, Sharing, Tips (MAST), was developed to assist managers and supervisors in honing management skills. Responding to the needs of Dover Federal, she designed a comprehensive orientation program for entry-level team members and managers, which aided in reducing staff turnover. She created the teller lab that not only provides tellers with hands-on training but allows research, development, and system testing.

“Dona is well respected in the human resource (HR) community for her thoughts and insights. In 2009, she submitted an article entitled ‘Training Across Generations: Battle Ground or Opportunity’ to HR Times, a Delaware HR magazine. The article was accepted and published in the third quarter issue. In addition to conducting training for the supervisory committee, she has collaborated with the board development and nominating committee to develop criteria and policy for the associate director position. As part of that process, Dona worked with the board chairman Russell McCready to design, develop, and implement associate director orientation.”

Special “Spirit of Service” Award

For the first time, the Delaware League presented a special award, named the Spirit of Service Award, to George Leathrum of Peninsula Methodist FCU. George has served both as a professional at the credit union and as a volunteer. Therefore he would have been eligible for either of the League’s other two awards. But due to this tremendous level of service to his credit union, this special award was created.

George has a varied employment history. He was the chief executive officer of Cecil Federal Bank in Elkton, Maryland, before being ordained as a minister in the Peninsula Delaware Conference United Methodist Church in 1982. He served as treasurer/business manager of the Peninsula Methodist FCU from 1990-1998, having taken over from the founder, Reverend Charles Barton.

Peninsula Methodist FCU is the smallest credit union in the League, with just under $300,000 in assets. The credit union has had three treasurer/business managers since its chartering in 1967. George, Charles Barton, and currently Kim Gilson all served in this position while maintaining their full-time positions as ministers.

If you have never stopped to consider what a small credit union manager does, here are just a few of the duties for which they are fully responsible: all reporting of financial condition to the board and all correspondence; following delinquent loans and all correspondence; acting as treasurer and all duties therein; checking all mail since this credit union is a mail operation only; checking all credit for new loans and loan procedures/paperwork; working with the supervisory committee; preparing NCUA 5300 reports; reading and implementing all compliance changes (a nightmare for even the largest credit unions); writing policies for the credit union; keeping all files on members and making changes to account information; and following reporting procedures to both Maryland and Delaware on items such as escheat and child support reporting. There is much more that could be enumerated, but needless to say a credit union that has a single-person running it is a one-man band.

George carried out all these duties, and upon “retiring” from the position of treasurer/business manager, he served as assistant treasurer from 1998-2006. After that, George chaired the supervisory committee until February of this year.

His nomination letter stated that “as treasurer/manager and as assistant treasurer, George gave us good advice on how and where to invest our money for the highest return. He arranged for the annual audit of the books. As a pastor, he also understands the faith-based nature of our credit union. He keeps before us the purpose of the credit union and the needs of those we serve.”

Thursday Golf Outing

Twenty-eight golfers participated in the golf outing at Eagle’s Landing Golf Course on Thursday. The winning team included Joe Reiner, Don DiMatteo, Ken Welch, and Paul Torbeck. Runners-up were Bob Oakes, Anthony Hinds, Kevin Oakes, and Todd Roselle.

The prize for the straightest drive went to Paul Torbeck, and Sterling Nowka was closest to the pin. John King won the 50/50, and proceeds from this venture will go to the League’s scholarship fund.

Members of the winning team (l. to r.) Don DiMatteo, Paul Torbeck, and Joe Reiner.	Would you believe these two smiling faces came in second: Let to right: Bob Oakes and Tony Hinds of DPL FCU.

 

COMPLIANCE RECAP

Get Focused On July 1 Truth in Lending Act Changes

To call attention to the importance of the upcoming July 1 open-end changes, the May issue of Credit Union NewsWatch included a warning from CUNA of the “Five Untruths about Truth in Lending.”

CUNA Senior Compliance Counsel Mike McLain reminds credit unions that in less than two months – by July 1 – credit unions must make sure that open-end loans comply with the comprehensive changes made to account-opening disclosures, periodic statements, change-in-terms disclosures, and advertising, as well as credit card applications and solicitations.

“Compliance will require management to review what your credit union is actually doing and make some necessary operational changes in order to comply with the Regulation Z open-end lending revisions – actions that your data processor and forms provider can’t do for you,” advises McLain.

The five Untruths include:

§ Untruth: Our data processor and forms supplier are taking care of everything that needs to be done by July 1 on the new Truth in Lending changes;

§ Untruth: The Federal Reserve Board didn't eliminate multi-featured open-end lending (MFOEL), so my credit union doesn't have to make any changes in our MFOEL program;

§ Untruth: We can make an automobile loan a closed-end sub-account under our open-end lending program;

§ Untruth: We can just rely on our credit card vendor to handle all the Reg Z compliance requirements of the new Credit CARD rules; and

§ Untruth: Once we get through the next couple of months, things will settle down with Truth in Lending.

Use the link below to review the issue containing the Truth in Lending article: http://cuna.org/press/newswatch.html.  

Model Consumer Privacy Notice Online Form Builder
     On April 15, eight federal regulators released an Online Form Builder that financial institutions can download and use to develop and print customized versions of a model consumer privacy notice. The Online Form Builder, based on the model form regulation published in the Federal Register on December 1, 2009, under the Gramm-Leach-Bliley Act, is available with several options. Easy-to-follow instructions for the form builder will guide an institution to select the version of the model form that fits its practices, such as whether the institution provides an opt-out for consumers. The agencies will post a link to this site on their websites. The Online Form Builder is available at:http://www.federalreserve.gov/bankinforeg/privacy_notice_instructions.pdf.

 

Flood Insurance Program Extended Until May 30

H.R. 4851, the Continuing Extension Act of 2010, was signed into law by President Obama on April 15, extending the authorization for the National Flood Insurance Program (NFIP) until May 30. The legislation also continues federal subsidies to COBRA health insurance recipients through April 30 and extends federal unemployment insurance until May 5.

The NFIP, COBRA, and unemployment insurance lapsed on March 29. The NFIP cannot issue new flood insurance policies, increase coverage on existing policies, or issue renewal policies until Congress restores NFIP authority. Congress is currently working on an extender bill that would extend some tax programs and other programs through the end of the year.

Mid-Atlantic Corp Annual Meeting

Mid-Atlantic Corporate FCU will hold its 2010 Annual Meeting on Friday, June 18, at the Sheraton Harrisburg Hershey Hotel, beginning with a served breakfast at 8:00 a.m. Jay Murray, President/CEO, will provide a corporate update following breakfast.

The annual business meeting will follow at 9:00 a.m. and will include the results of the Board election and a presentation of the 2009 year in review. While there is no charge to attend just the business meeting, registration is still required.

A charity golf tournament and luncheon will be held on Thursday, June 17, at Dauphin Highlands Golf Course. A reception and guided tour of the Corporate office will be offered on Thursday evening.

To register for the Annual Meeting and/or the Charity Golf Tournament, visit www.midatlanticcorp.org, and click on the Annual Meeting/Golf Tournament link on the home page.

DELAWARE NOTES

 

 

                                                                                                                       

Late Breaking News! William “Bill” Cheney has been named the successor to Dan Mica as president and CEO of the Credit Union National Association (CUNA). Cheney, 49, is currently president and CEO of the California/Nevada Credit Union Leagues. Cheney, who has been the California/Nevada Leagues’ president since 2006, will take the reins of CUNA July 5.

 

 

 

EAGLE ONE FCU congratulates CEO John F. King on being elected chairman of the National Council of Postal Credit Unions at the annual conference in April. Mr. King had served as the vice-chairman of NCPCU for the past three years.

 

League business member, Don Jeffries, passed away on Friday, April 23. Don worked with  Delaware credit unions to offer reverse mortgages to their senior members. His main concern was for the seniors’ financial welfare, and he took great lengths to steer them in the right direction, even if it meant losing a sale. According to League EVP Jane Bailey, “He was a dapper gentleman whose unique outlook on life and spirited nature endeared him to those who were lucky enough to be in his company.”

 

EAGLE ONE FCU was a title sponsor for the 3^rd Annual Beef, Brew & Casino Night fundraising event in Claymont on April 10^th. The night featured food, refreshments and casino style games of chance at the Claymont Fire Company Hall. Through the efforts of the committee, which included Terri Kelly of Eagle One FCU, the fundraiser was very successful, generating a record increase in dollars over last year’s event. This support will allow the Center to continue their work providing programs and services for the Claymont Community. 

 

Management position sought. Highly qualified, results-oriented banking professional with over 30 years of experience in compliance, retail sales training and development, income generation, and branch management. Call the League office and ask for resume #04-20-10. 

 

EDUCATIONAL OPPORTUNITIES

 

May QuickBites Teleconferences

One-hour sessions run from 11 a.m.-noon:

§  5/27  CU Alternatives to Predatory Car Loans

This two-hour session runs from 11 a.m.-1 p.m.

§  5/13  Teller Essentials

The fee for the one-hour sessions is $99; the two-hour session fee is $169. The deadline to register with Bernadette Hines: one week before the session.

May Webcasts

§  5/12  Strengthening Your Loan Review Program

§  5/13 Performing Your Required ACH Risk Assessment (which is effective 6/18/10)

§  5/19  Handling Return Items: Checks/Imaged/ACH

§  5/20  Reg CC: New Funds Availability Rules

§  5/26  Repossession, Notice, & Sale of Collateral

§  Reg CC Check Holds Webinar – CD only (available until August 31)

The webcasts are 90 minutes (3-4:30 p.m.). The $189 registration fee is for EITHER the “live” webcast or the recorded CD-ROM of the complete session. When registering, you must indicate your preference. The $219 registration fee covers both the “live session” and the CD-ROM recording. 

 

 

Reducing Losses in Bankruptcy: Beyond the Basics – Wednesday, May 12, from 9 a.m. – 3 p.m. at the League office. $195 for first registrant; $100 for subsequent registrants.

 

Bank Secrecy Act Training in May at the League

1)  May 18 – BSA Basic Overview for Volunteers and Staff. 5:30-7:30 p.m. $70 per person. Session has been moved to Del Tech’s Stanton Campus (first floor)

2)  May 19 – BSA Training for Frontline Staff and Managers. 9 a.m.-4 p.m. at the League office. $95 per person.

 

Supervisory Committee Duties & Responsibility – Wednesday, May 19, from 5:30-7:30 p.m. at the League office. Fee: $70 per person.

 

Cards Council: “Card Marketing & the CARD Act” – Wednesday, May 26, from 10 a.m.-noon at the League office. Free to Cards/Marketing Council members. Non-council members: $100. Regis. deadline: 5/19.

 

Collection Council: “Inside Look at the Auto Auction” – Tuesday, June 8. Field trip to the Bel Air Auto Auction in Bel Air, Maryland. 9 a.m.-1 p.m. Lunch provided. Free to council members; all others $100. Regis. deadline: 6/1. Bernadette Hines will coordinate carpooling.

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TOGETHER is published on the 15^th and 30^th of each month by the Delaware Credit Union League, 4 Quigley Boulevard, New Castle, DE 19720. 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 Editor Alice Smith (alice@dcul.org).