Year On Pace To Record
Greatest Inflow of Funds
MADISON, Wis.-Another $7.2 billion in new deposits flowed into credit unions in June, putting 2012 on pace for the greatest inflow of funds into credit unions ever, according to CUNA. Savings have grown 5.1% for the first half of the year, with a total of $42.8 billion of new shares added to credit union ledgers, according to the CUNA monthly estimates. Those estimates are similar to those by NCUA, which projects approximately $43 billion in new deposits for the first six months.
NCUA is expected to report its own first half data in the next few weeks, but CUNA's estimates, based on a monthly survey of 450 credit unions, is always very close to those compiled by NCUA.
The pace of new deposits is the highest since the first half of 2009, when it was 7.9%, and 2008 when it was 6.4%, as depositors were fleeing troubled banks and other investments for the safety of federally insured credit unions. But the dollar amount is much greater this year as the total size of the credit union movement is much larger. In 2009, for example, credit unions added $72 billion in new deposits, and in 2008 it was $45 billion.
Fueling the savings growth is the continued addition of new members, with another 200,000 credit union members added in June, making an estimated 1.3 million new members for the first half, according to CUNA. If that growth holds up in the second half it would create the best year ever for membership growth. But loan growth remains tepid, expanding by 0.4% for June and by just 1.4% for the first half of 2012, according to CUNA.
CEO Marks 60th Year At CU
BISMARCK, N.D.-Marvel Ebenhahn, whose father helped charter Community CU in 1942, celebrated 60 years heading the now $153-million CU.
Ebenhahn started at the credit union in 1942 while she was working as a bookkeeper at its sponsor, Farmers Union oil Co., now known as Cenex. At the time the credit union had $18,000 in deposits and focused on lending money to local farmers.
Ebenhahn said she does not contemplate retirement from the credit union, which has grown to a community charter with three branches. "Retirement isn't for everyone," she said. "As long as my head and body keep working, so will I."
NCUA To Host Webinar On Liquidity
ALEXANDRIA, Va.-NCUF will host a free webinar, "CLF and Your Credit Union's Contingent Liquidity, on Aug. 14, beginning at 2 p.m. EDT. Central Liquidity Facility (CLF) President Owen Cole will discuss coming changes in the ownership of the CLF, the CLF's role in meeting credit unions' contingent liquidity needs, and issues around the proposed rule on access to emergency liquidity. With the scheduled closing of U.S. Central Bridge Credit Union in late October, more than 6,000 credit unions will lose access to the CLF.
For info: www.ncua.gov.
MidFlorida Continues Its Expansion
LAKELAND, Fla.-MidFlorida Credit Union, which has been growing its branch network on the Gulf Coast, has agreed to acquire Indian River Credit Union, a troubled $55-million credit union on Florida's Atlantic coast. The deal will give the $1.7-billion credit union giant its first branches on the east coast, in Vero Beach and in Sebastian, just a month after it acquired two west coast branches with a deal for $46-million Bay Pines Federal Credit Union. MidFlorida is in the process of integrating the Tampa-area operations it acquired in December from Space Coast Credit Union.
A M Community Is Liquidated
KENOSHA, Wis.-The $121-million A M Community CU here has been liquidated by the Wisconsin Office of Credit Unions, and its assets acquired by the $739-million TruStone Financial FCU of Plymouth, Minn.
Alive CU Acquires 2 SCCU Branches
JACKSONVILLE, Fla.-The $110-million Alive CU is buying two stand-alone branches from Space Coast CU, bringing its branch network to 11. The deal is the latest by Space Coast to shed branches following the sale of six branches it had acquired in the purchase of Eastern Financial Florida CU to MidFlorida CU.e_SClB
WesCorp Execs In Settlement Talks
LOS ANGELES-Lawyers for NCUA were scheduled last week to meet with lawyers for former WesCorp FCU Chief Financial Officer Todd Lane to discuss a potential settlement of civil negligence claims brought by NCUA in the 2009 collapse of the one-time $34-billion corporate credit union.
The meeting was to take place just as Lane's lawyers and those for former WesCorp CEO Bob Siravo are seeking testimony in the case from two of the three NCUA Board members.
Lawyers for Lane, now CFO at California Coast CU, had said earlier that Lane has no intention of entering into a settlement because he denies responsibility for the historic corporate credit union failure, projected by NCUA to cost $7 billion to resolve.
The settlement negotiations are scheduled to be held before a U.S. Magistrate.
In a related development, a federal judge in the case has postponed a hearing on NCUA's request to bar depositions by NCUA Chairman Debbie Matz and NCUA Board member Gigi Hyland until later in August.
A hearing at the U.S. District Court for the Central District of California is scheduled for Aug. 21.
15 Next Top Exec Finalists Named
MADISON, Wis.-CUES has selected its top 15 applicants in its 2012 CUES Next Top Credit Union Exec challenge, as voted on by the public.
The competition for the industry's emerging leaders is held in partnership with DDJ Myers and administered by Currency Marketing.
Named to the Top 15 in the CUES Next Top Credit Union Exec competition were: Chris Ferguson, 34, AVP-retail delivery for FORUM Credit Union, Indianapolis; Kristina Flores, 31, director of marketing for Prospera Credit Union in Appleton, Wis.; Bryon Goguen, 29, financial analyst with Leominster Credit Union in Leominster, Mass.; Jill Huls, 32, divisional manager with Conexus Wealth Management, Regina, Saskatchewan; Ashley Kohlrus, 33, chief experience officer with Allegacy FCU in Winston-Salem, N.C.; Matt McCombs, 30, EVP/COO with DHCU Community CU in Moline, Ill.; Nate Muniz, 34, PR manager with Pennsylvania State Employees CU in Harrisburg, Penn.; Duane Nicol, 34, marketing and communication manager with Assiniboine Credit Union, Winnipeg, Manitoba; Cas Scott, 29, direct marketing manager with Community CPS Australia in Hunter Valley, New South Wales, Australia; Jay Sherer, 31, marketing drector with Evangelical Christian CU in Brea, Calif.; Kirk Smith, 32, In Store branch manager with TwinStar Credit Union, Olympia, Wash.; Bruce Ulrich, 31, marketing director with Statewide FCU in Flowood, Miss.; Peter Walker, 33, regional branch services manager with OSU FCU in Corvalis, Ore.; Corlinda Wooden, 32, regional branch manager with Unitus Community CU in Portland, Ore., and Melina Young, 27, director of marketing with Verity Credit Union, Seattle.
The five Finalists will receive additional coaching for the competition, airfare, accommodation and registration to CUES' CEO/Executive Team Network Nov. 4-7 in Manalapan, Fla.
Prohibition Orders Are Issued
ALEXANDRIA, Va.-NCUA has issued prohitibion orders against:
* Ashley Lynne Jackson, a former employee of Primeway FCU, Houston, who was convicted of theft and sentenced to nine months in prison.
* Mark A. Keilig, a former manager of United Northwest FCU, Norton, Kan., who consented to the prohibition order.
* Norielyn Galbadores Bautista, a former employee of Pacific Advantage FCU, Burlingame, Calif., who was convicted of grand theft, unauthorized use of personal identifying information of another person, and forgery and counterfeiting.
* Stacy A. Mergelkamp, a former employee of Catholic and Community Credit Union, Shiloh, Ill., who was convicted of theft, embezzlement, and misapplication by credit union officer or employees.
* Wanda Hasbrouck, a former employee of Morton R. Lane State University FCU, Buffalo, N.Y., who was convicted of grand larceny, and ordered to pay restitution in the amount of $23,350.
Bruenig Named Habitat CEO
MADISON, Wis.-Valerie Bruenig, executive director of the Worldwide Foundation of the World Council of Credit Unions, is leaving the organization in order to take over as CEO fo Habitat for Humanity-Dane County (Wisconsin).
Heritage CU Names Kidder CEO
LAFAYETTE, La.-Todd Kidder has been named president and CEO of $14-million Heritage Credit Union. Kidder has more than 25 years experience in financial services, and will succeed Richard "Dick" Rein, who retired after more than 17 years as CEO.
A Day in the Life 2012!
WEST PALM BEACH, Fla.-Credit Union Journal is now accepting participants in one of its most popular features: the annual Day in the Life of Credit Unions project. On the same day in August, participating credit unions from around the country and around the world shoot photos of events at their offices, branches and functions at which they may be participating on that day. Credit Union Journal then selects the best photos from each participant and features them in its annual Day in the Life of Credit Unions issue published in conjunction with International Credit Union Week. To participate, contact Managing Editor Lisa Freeman at email@example.com.