CenterPoint Summer 2012
In this issue of CenterPoint, explore the positives and negatives of a credit card program at your credit union; find out how IC Federal Credit Union is reaching a younger audience through robots and zombies; and two member credit unions are named best places to work in Rhode Island.
summer 2012 A publication of the Massachusetts Credit Union League, New Hampshire Credit Union League and the Credit Union Association of Rhode Island Is Plastic Fantastic for Your Credit Union? Stories Inside: 10 RI CUs Named Best Places to Work 12 Service Credit Union Hosts Make-A-Wish速 Children at Air Show 24 Ten New England Credit Unions Join Shared Branching Co-op THE BEST OF ALL WORLDS. The industry’s leading core processing solution, Symitar’s Episys. Delivered by a service provider, owned by credit unions, just for credit unions. Providing the security, quality of service and greater efficiencies for credit unions to grow and take their member service to an even higher level. ® Compare service, efficiencies and targeted marketing results. Technology Services Check Processing Direct Marketing Services Shared Branching synergentcorp.com/DownloadWhitePapers New England Credit Union Services, LLC 800-842-1242 Massachusetts Credit Union League, Inc. www.maleague.org New Hampshire Credit Union League www.nhcul.org Credit Union Association of Rhode Island www.cuassociationri.org Is Plastic Fantastic for Your Credit Union? Daniel F. Egan, Jr., President EDITORS: Robert B. Kimmett Marguerite A. Thorsen page 20 CONTRIBUTORS: Donna M. Bevilacqua Robert Delaney Bonnie L. Doolin Kathleen A. Enderlin William F. Nagle Beverly Purtell Charlotte Whatley Contents Table ofFeatures PUBLISHED BY The Warren Group Design / Production / Advertising email@example.com 280 Summer Street, Boston, MA 02210 Phone: 617-428-5100 Fax: 617-428-5118 www.thewarrengroup.com ©2012 The Warren Group Inc. All rights reserved. The Warren Group is a trademark of The Warren Group Inc. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher. Advertising, editorial and production inquiries should be directed to: The Warren Group, 280 Summer Street, Boston, MA 02210. Call 800-356-8805. 04 MESSAGE FROM THE PRESIDENT 08 CREDIT UNION NEWS – Massachusetts Credit Union League 2012 Annual Meeting and Convention Held in San Diego – Pawtucket Credit Union, Navigant Credit Union Named 2012 Best Places to Work in Rhode Island – New Hampshire Credit Union League Holds 58th Annual Business Meeting – Credit Union Association of Rhode Island Holds 78th Annual Meeting – Service Credit Union Hosts Make-A-Wish® Children for Air Show Rehearsal 14 COMMUNITY OUTREACH – Massachusetts Credit Unions Collect 14,845 Books for Children – New Hampshire Credit Unions Raise $150,000 for Wishes – Rhode Island Association Volunteers Help Bring on the Gold at Summer Games 18 ZOMBIES, ROBOTS HELP IC FEDERAL CREDIT UNION 12 24 TEN NEW ENGLAND CREDIT UNIONS JOIN CO-OP SHARED BRANCHING 25 LEAGUES/ASSOCIATION PROVIDE NEW RATE MAPPING TOOL 26 CREDIT UNION PEOPLE 30 CALENDAR summer.2012 | centerpoint | 3 M E S S AG E FRO M T H E P R E S I D E N T | by daniel f. egan, jr. COLLABORATION BRINGS COST SAVINGS TO ALL MEMBERS There are few ways that a credit union can improve its bottom line. It can change pricing to increase revenue from existing members, attract new business, find incidental income, or trim costs. While each of the “levers” can be pulled at the credit union’s discretion, there are consequences to each of these options. Those consequences are compounded by the competitive, economic, and political circumstances of the moment. T oday, historically low margins and consumer animosity toward fees tend to rule out any large scale improvements in pricing. Credit unions have seen a fair amount of new business over the past year, but those relationships need to mature to realize their income potential. Incidental income, while it is nice to have, is limited and often unpredictable. So that brings us to trimming expenses. Overall, credit unions run very lean operations and are expert at keeping costs low so finding additional places to cut seems like a big challenge. Indeed, it is and that is why it requires all of our effort working together in collaboration. Over the years, through the League/Association, we have worked to find ways for credit unions to join together to create efficiencies that will benefit their 4 | centerpoint | summer.2012 bottom lines. As a result, credit unions enjoy considerable savings on essential services like insurance, employee benefits, compliance consulting, credit card processing, and auditing to name a few. The greater our collaboration the greater the savings will be. The decision to work together also gives you a voice in the development of products that are essential to the success of your credit union. This cooperative model, like that of your credit union, is designed to ensure that the benefits go to the members. I look forward to working with you throughout the coming months on finding new ways that we can work together for the benefit of our credit union community. • Daniel F. Egan, Jr., president FROM THE EDITOR: Due to a technological error, Jennifer Beylard was not included in our Credit Union Rising Stars profiles featured in the spring issue of CenterPoint. Her profile is included here. We regret the error. Name: Jennifer Beylard Age: 33 Title: Vice President of Operations Credit Union: STCU Credit Union Credit Union Location: Springfield, MA Town of Residence: Hampden, MA Community Involvement: I am a member of the board of directors for the Red Cross Pioneer Valley Chapter, and I have helped orchestrate several credit union fundraising events, including Blankets for the Homeless, the Children’s Book Drive for the Massachusetts Coalition for the Homeless, the July 1 Tornado Victims Fund, Open Pantry food drives, Toys for Tots, and several blood drives. The credit union has also volunteered time annually for the United Way Day of Caring, in which we worked on cleanup efforts in Springfield, MA. Don’t miss the strategic Planning Retreat Biggest Success: Obtaining my current position and advancing in my career. This would not have been possible without the management’s belief and dedication to my advancement. In fact, this year I will be attending my second year at the CUNA Management School in Madison, WI. Media: Size: Color: Date: Volunteer Leadership Institute At the Stowe Mountain Lodge in Stowe, VT September 23 rd - 26 th, 2012 STRATEGIC PLANNING RETREAT OFFERED ON THURSDAY, SEPTEMBER 27 TH, 2012 The institute will prepare credit union executives and directors to think strategically and plan for the future. An optional, strategic planning retreat will be offered at the conclusion of the institute, where your board can meet to build your plan. Sponsored by: Registration – $1,425 per person Guest Program – $425 per guest Hosted-Strategic Planning – $3,000 per credit union Ask about group discounts, member savings and returning attendee rates. Request for PDF to be put in www.TheParagonGroup.com www.theparagongroup.com for details and registration or call (888) 755-2725 - or - (800) 622-4015 for more information. The Paragon Group has built a sterling reputation in the credit union industry by consistently providing world class training and consulting services to Volunteer Directors and Supervisory Committee Members. Visit 6 | centerpoint | summer.2012 Dream Job: Other than winning the lottery and traveling, my dream job would be to one day run a credit union. I believe there is a great satisfaction that comes with growing a successful credit union and in serving the community’s changing needs. Agency: Client: W.S.#: File Name: Type: Location: Artist: AE: Institute Cost Davis Advertising MSIC 1166 MSC116_Print indd Server HD#7 JP BB/JM & Center Point 4.75” x 4.75” CMYK 1/2012 VLI - East 2012 Volunteer Leadership Institute Career Highlights: I began my financial career more than 13 years ago in the banking industry and changed over to the credit union movement in 2006 with STCU Credit Union. Since then I have advanced from the retail side of the credit union to the management side. www.MSIC.org WorkZonecompete Holding Tank If you could in the Olympics in anyAE/AC: sport, what would it be and why? Figure skating. It’s a beautiful PDF uploaded to WorkZone Holding Tank sport of strength, skill, discipline, and Artist: grace – although I might need to learn how to skate No. of Revisions:first. 1 Credit Union Center helping credit unions better serve their members . . . we’re with you all the way Members Insurance Agency t s fir Employee Benefit Solutions MemberClose® Audit Services Annual Audits Compliance Audits Enterprise Risk Management nk of Compliance InfoSight Thi CEO Compensation Executive Search Organizational Analysis s u Information Technology Interim Internal Audits Internal Controls/Segregation of Duties Compliance Services CU Policy Pro Risk Management Member Business Services Quality Assurance Reviews Onsight Compliance Specialists Human Resources Services CEO Performance Evaluations HR Audits Recruiting & Interviewing Employee Handbook Design Job Description Creation On-Site Training Workshops Consulting Services • Strategic Planning Customized Facilitation and Action Plan Design Compliance Penetration/Intervention • Customized Training DiSC® Facilitation Service and Sales • Technology Testing Management Skills Fraud Detection Business Partners CUNA Mutual Group Insurance and Asset Management CO-OP Financial Services Shared Branching Services Nationwide Debit and ATM Credit Union-Owned Network Credit Union Direct Lending (CUDL) Point of Purchase & Indirect Lending Technology Solution Deluxe Check Printing & Growth Strategy Tools Fidelity National Information Services (FIS) Plastic Card Services - credit and debit card processing and support PowerPay Card Processing Services for Merchants Winbrook Forms Management and On-Demand Print Supply Services For more information, contact Dean Martino, Director of Business Development at 800-842-1242, Ext. 315 C R E D I T U N I O N N EWS MASSACHUSETTS CREDIT UNION LEAGUE 2012 ANNUAL MEETING AND CONVENTION HELD IN SAN DIEGO Board Elections Announced The Massachusetts Credit Union League’s Annual Meeting and Convention kicked off on Sunday, June 17, with a busy day of meetings and education. The day’s keynote speaker, John Lass, provided a fascinating look into “Building the Credit Union of the Future.” After a review of the opportunities and challenges that credit unions face, he introduced the idea of using “strategic inflection points” to look at how to approach the credit union future. Less weighty topics were addressed by the luncheon speaker, Steve Kelley, a nationally syndicated political cartoonist and stand-up comic. He shared his thoughts on what he referred to as “politics and stuff that really matters.” The League Annual Meeting followed the luncheon, featuring numerous reports as well as the election of directors. Director election results were as follows: • Central Mass Chapter: David A. L’Ecuyer, CEO/president, Central One Federal Credit Union • Southern Mass Chapter: Joanne M. Robidoux, president, Goldmark Credit Union Director-at-Large results: • Eugene J. Foley, president/CEO, Harvard University Employees Credit Union • Katherine Hutchinson, president/CEO, Ron Jackson (center) received the 50th anniversary plaque for MassMutual Federal Credit Union with CEO Dave Plantier (right) and League President Dan Egan. 8 | centerpoint | summer.2012 UMassFive College Federal Credit Union • Marilyn L. Sperling, president/CEO, Greylock Federal Credit Union • Replacing James Blake in the unexpired term will be: Roland (Ron) J. Draper III, CEO, Somerville Municipal Federal Credit Union The board also recognized a number of credit unions in attendance celebrating milestone anniversaries: • UMassFive College Federal Credit Union – 45 years • MassMutual Federal Credit Union – 50 years • Central One Federal Credit Union – 60 years • Boston Firefighters Credit Union – 65 years • HTM Credit Union – 75 years • Quincy Credit Union – 75 years • ValleyStone Credit Union – 75 years • Worcester Fire Dept. Credit Union – 75 years • New Bedford Credit Union – 80 years • Freedom Credit Union – 90 years • NMTW Community Credit Union – 90 years • Southern Mass Credit Union – 90 years • Jeanne D’Arc Credit Union – 100 years • John Lass draws a full house at his educational program for the League’s day of programming. Evelyn Torrey, Berkshire Federal Credit Union, talks with Maureen Bertrand, Southern Mass Credit Union, while waiting for the next session at the ACUC to begin. League Chairman Bernie Winne (left), president/ CEO, Boston Firefighters Credit Union, chats with Mike Maloney of MembersPlus Credit Union during a break between programs at the America’s Credit Union Conference, the League’s convention partner. What CaN YOUR COMPaNY ShaRE With thE LEaDERS OF 530 DiFFERENt CREDit UNiONS aCROSS SiX StatES? Smart Solutions will provide valuable advice to decision makers in all New England credit unions. Those who offer products and services that allow credit unions to operate, serve, grow, secure, and generally improve themselves will be the authors behind this indispensable resource. EDUCatiONaL CONtENt • Current products and services – how are they shaping the industry? • New technologies – what’s ahead and how will it influence the market? Reach 15,000 credit union professionals in one of the most sought after and fast growing markets. For advertising information call 617.896.5344 or email firstname.lastname@example.org summer.2012 | centerpoint | 9 C R E D I T U N I O N N EWS PAWTUCKET CREDIT UNION, NAVIGANT CREDIT UNION NAMED 2012 BEST PLACES TO WORK IN RHODE ISLAND Pawtucket Credit Union staff gather to celebrate being named the best place to work survey by the Providence Business News. Pawtucket Credit Union (PCU) was recently awarded first place, for the second consecutive year, in the Providence Business News’ Best Places to Work in Rhode Island survey. Navigant Credit Union placed fourth on this prestigious list. The selection process includes rating organizations on benefit programs, work arrangements, opportunities for advancement and personal development, and more. “This program is the gold standard for recognizing businesses that value their employees,” said Karl Kozak, PCU’s president and CEO. “In our 85-year history, there’s never been a layoff. We continue to expand and that has a lot to do with our employees. Our employees are our most valuable asset.” Promoting from within is something the credit union whole-heartedly supports. Staff members receive first consideration when a position needs to be filled. 10 | centerpoint | summer.2012 This statewide survey and awards program is designed to identify, recognize, and honor the best places of employment in Rhode Island, benefiting the state’s economy, its workforce, and businesses. The 2012 “Best Places to Work in Rhode Island” list is made up of 40 companies. The rankings were unveiled at an awards ceremony and in a special publication in mid-June. To be considered for participation, companies had to fulfill the following eligibility requirements: • Be a for-profit, not-for-profit business or government entity. • Be a publicly or privately held business. • Have a facility in the state of Rhode Island and/or Bristol County, Massachusetts. • Have at least 15 employees working in the state of Rhode Island and/or Bristol County. • Must be in business a minimum of one year. Companies from across the state entered the two-part survey process to determine the Best Places to Work in Rhode Island. The first part consisted of evaluating each nominated company’s workplace policies, practices, philosophy, systems, and demographics. This part of the process was worth approximately 25 percent of the total evaluation. The second part consisted of an employee survey to measure the employee experience. This part of the process was worth approximately 75 percent of the total evaluation. The combined scores determined the top companies and the final rankings. Best Companies Group evaluated the data collected from the participating companies and used its expertise to determine the final rankings. • NEW HAMPSHIRE CREDIT UNION LEAGUE HOLDS 58TH ANNUAL BUSINESS MEETING Delegates from across New Hampshire gathered on Saturday, June 16, for the New Hampshire Credit Union League’s 58th Annual Business Meeting and heard reports from numerous League committees, as well as League Chairman Michael L’Ecuyer and League President Daniel F. Egan, Jr. They also heard from special guest speakers including Bank Commissioner Ronald Wilbur; National Credit Union Administration Associate Regional Director of Programs Marcia Sarrazin; CUNA Mutual Group Sales Executive Geoff Martin; as well as America’s Credit Union Museum Executive Director Peggy Powell. The attendees were moved by a special video presentation featuring the 1,000th Wish granted by the Make-A-Wish Foundation® of New Hampshire. The organization’s CEO, Julie Baron, introduced Wish Child David and his family. David’s mom, Kristin, shared the story of David’s wish with the attendees and then offered her heartfelt thanks to the credit unions for their generous support and for putting the smile back on David’s face. During the meeting, the nominating committee announced the results of the election held for positions on the League’s board of directors. Maurice D. Simard, Jr., president/treasurer, Triangle Credit Union, and Ronald H. Covey, Jr., president/CEO, St. Mary’s Bank Credit Union, were each elected to the board for a three-year term. Prior to the conclusion of the meeting, L’Ecuyer recognized Gordon Simmons, who chose not to seek re-election and retired from the board. Gordon was presented with a special gift in honor of his many years of service to the New Hampshire Credit Union League. Two credit unions celebrating anniversaries this year were recognized during the New Hampshire Credit Union League Chairman Michael L’Ecuyer (right) presents the 50th anniversary plaque to (left to right) Brian Hughes, Dana Flanders, and Ronald Vachon from Holy Rosary Credit Union. meeting with plaques: Holy Rosary Credit Union (50 years) and Service Credit Union (55 years). Following the League’s annual meeting, the board of directors met and voted to elect the following table officers: Chairman – Gerald Dumoulin, CEO, Guardian Angel Credit Union; Vice Chairman – Timothy Naro, vice president of lending, Granite State Credit Union; and Secretary/Treasurer – Brian Hughes, president/CEO, Holy Rosary Credit Union. Rounding out the remainder of the board are Covey, Simard, L’Ecuyer, and John Young, president/CEO, New Hampshire Federal Credit Union. • Wish Child David and his family attended the Annual Meeting where David’s mom, Kristin, thanked all the credit unions for helping make David’s wish of a castle come true. Delegates gather for the 58th Annual Meeting of the New Hampshire Credit Union League. summer.2012 | centerpoint | 11 C R E D I T U N I O N N EWS CREDIT UNION ASSOCIATION OF RHODE ISLAND HOLDS 78TH ANNUAL MEETING Association First Vice Chairman David Suvall (right) presents the 85th anniversary plaque to PGE Federal Credit Union President/CEO Ken Poyton. More than 100 credit union representatives from Rhode Island gathered for the Credit Union Association of Rhode Island’s 78th Annual Meeting and GetTogether Dinner on May 9 at Metacomet Country Club in East Providence. Attendees heard reports from numerous Association committees, as well as Chairman Ellen Ford and President Daniel F. Egan, Jr. They also heard from special guest speakers, including: Bill Cheney, president/CEO, Credit Union National Association (CUNA); Special Olympics Rhode Island Executive Director Dennis DeJesus; and Global Ambassador Ian Shephard; Michelle Thibault, supervisory examiner, National Credit Union Administration (NCUA); and Tracy MacNeil, sales executive, CUNA Mutual Group. At the annual meeting, three directors were re-elected to three year terms: Robert P. Andrade, executive vice president/ COO, Pawtucket Credit Union; Kenneth F. Poyton, president/CEO, PGE Federal Credit Union; and Richard E. Smith, president/CLO, Dexter Credit Union. Two credit unions celebrating anniversaries in 2012 were recognized: People’s Credit Union (90 years) and PGE Federal Credit Union (85 years). The Credit Union Association of Rhode Island board of directors extends a special thanks to CU Direct Corporation for sponsoring the reception held prior to the annual meeting, and to Pawtucket Credit Union, who sponsored the wine service during dinner. • SERVICE CREDIT UNION HOSTS MAKE-A-WISH® CHILDREN FOR AIR SHOW REHEARSAL Wish children and their families enjoyed the rehearsal of the Service Credit Union Boston-Portsmouth Air Show, along with a special visit from the Blue Angels following the show. Some of the Wish Children in attendance included: (front row, left to right): Jordana, Felicia, Maddy, Sarah, Faith, and Fait; (middle row, left to right) Alex, Trevor, Hannah, Charlie, Nathan, and David; Service Credit Union employees included (back row, left to right) Vice President of Marketing Karen Benedetti; Chief Internal Auditor Ana Foret; Executive Vice President William Newman; and Vice President of Lending Fawn Terwilliger. 12 | centerpoint | summer.2012 Service Credit Union, the title sponsor of the Service Credit Union BostonPortsmouth Air Show featuring the United States Navy Blue Angels, hosted special needs children and their families from a variety of service organizations, including the Make-A-Wish Foundation® and the Brain Injury Association of New Hampshire. More than 50 children and their families joined Service Credit Union volunteers in their chalet on the frontline of the air show Friday, June 29, for a flight rehearsal starting in the early afternoon. Service Credit Union senior leadership was on hand to serve lunch and refreshments to the families. Association Chairman Ellen Ford, People’s Credit Union, welcomes everyone to the 78th Annual Meeting. Credit Union National Association President/ CEO Bill Cheney speaks to the attendees at the 78th Annual Meeting. “Service Credit Union takes a leadership role in supporting children in our communities,” says Gordon Simmons, president/CEO of Service Credit Union. “We are thrilled to have families from MakeA-Wish® and other area agencies with us.” Proceeds from the air show will help support two organizations, the Brain Injury Association of New Hampshire and the Daniel Webster Council Boy Scouts of America, as well as a multitude of other New Hampshire nonprofit organizations, including the Make-A-Wish Foundation® of New Hampshire. • summer.2012 | centerpoint | 13 C O M MU N I T Y O U T R E AC H MASSACHUSETTS CREDIT UNIONS COLLECT 14,845 BOOKS FOR CHILDREN Twelve-Year Total Reaches More Than 240,000 Premier Source Credit Union employees prepare to send their books to Shriner’s Children’s Hospital. Each spring the League promotes the collection of children’s books. Since the first book drive in 2001, Massachusetts credit unions have donated more than 240,000 books to various family service agencies, including The Massachusetts Coalition for the Homeless. Thousands of underprivileged children throughout Massachusetts have benefited over these 12 years from the books collected by the credit unions of Massachusetts. In May, 14,845 books were distributed by 44 credit unions and the League. It is hard to believe that the simple act of donating a book could make a difference in a child’s life, but it is true. The credit unions that participated in this year’s Children’s Book Drive went a long way in helping the Coalition, as well as other agencies, give less fortunate and homeless children throughout the Commonwealth books of their own. 14 | centerpoint | summer.2012 Many credit unions, such as CPCU Credit Union, Cambridge, MA (CPCU) and Leominster Credit Union, Leominster, MA (LCU), reached out to their local communities. This year, CPCU expanded their efforts to exceed their goal by publicizing the collection via social media and email marketing, as well as through traditional marketing outlets. Kathy Hurley, human resources administrator, and Linda McQuade, receptionist, shared coordination duties at LCU. They reached out to the communities through their seven branches located throughout central Massachusetts. “Once again, our LCU members and employees were very generous giving to this worthy cause,” said Linda. The books were distributed to a wide variety of non-profit organizations, such as local YMCA/YWCA’s, Head Start Programs, Boys and Girls Clubs, Shriner’s Children’s Hospital, House of Hope, Catholic Charities, Family and Children Services Centers, and Big Brother/Big Sister. The agencies that received the books expressed their gratitude and pleasure with the quantity and the quality of the books. “Sadly, for most people, the image of a young child never comes to mind when they think of a homeless person,” noted Robyn Frost, executive director of the Massachusetts Coalition for the Homeless. Yet, over 25,000 children in Massachusetts are without a place to call home and are now the new face of homelessness in our state. Frost added, “The Massachusetts Coalition for the Homeless is extremely proud to have the credit unions on our team participating in activities such as the Children’s Book Drive as well as working for long term solutions to ending family homelessness.” • CPCU Credit Union staff display the books collected during the Children’s Book Drive. For the past three years, the credit union has exceeded their goal. Leominster Credit Union employees Linda McQuade (left) and Kathy Hurley show a sampling of the 872 books donated by LCU members and employees. The League’s Social Responsibility Committee extends a special thanks to all the credit unions that participated in this year’s book drive: Berkshire Federal Credit Union Brookline Municipal Credit Union Central One Federal Credit Union City of Boston Credit Union CPCU Credit Union Credit Union of the Berkshires Crescent Credit Union Everett Credit Union Fall River Municipal Credit Union Hanscom Federal Credit Union Harvard University Employees Credit Union IC Federal Credit Union Industrial Credit Union Leominster Credit Union Luso Federal Credit Union MA/COM Federal Credit Union MAFCU Federal Credit Union Massachusetts Institute of Technology Federal Credit Union MassMutual Federal Credit Union Members Plus Credit Union Merrimack Valley Federal Credit Union Metro Credit Union New Bedford Credit Union NMTW Community Credit Union Polish National Credit Union Premier Source Credit Union Quincy Credit Union RAH Federal Credit Union RTN Federal Credit Union Santo Christo Federal Credit Union Seaport Credit Union Southbridge Credit Union Southern Mass Credit Union STCU Credit Union St. Anne’s Credit Union of Fall River, Mass. St. Jean’s Credit Union St. Mary’s Credit Union St. Vincent Hospital Credit Union Tewksbury Federal Credit Union Tremont Credit Union UMassFive College Federal Credit Union ValleyStone Credit Union W.H. Nichols Employees Federal Credit Union Massachusetts Credit Union League presented by THE WINNERS HAVE BEEN CHOSEN, COME CELEBRATE Banker & Tradesman set out to find the Heroes among us working in Credit Unions throughout Massachusetts. We asked our readers to nominate those who stand above the crowd in serving their institution, industry, and community. The winners have been selected and we invite you to celebrate their accomplishments with us at an awards dinner on September 10. Scan the QR code for more info Tickets and value packed sponsorships are available to honor and support the winners. Please call 617-896-5344 for details. summer.2012 | centerpoint | 15 C O M MU N I T Y O U T R E AC H NEW HAMPSHIRE CREDIT UNIONS RAISE $150,000 FOR WISHES The Richard D. Mahoney Charity Golf Tournament was held Thursday, June 14, at Candia Woods Golf Links. At the conclusion of the tournament, League representatives presented a $150,000 check to the Make-AWish Foundation® of New Hampshire, surpassing the goal of $145,000 set in September 2011. This amount brings the 16-year total to more than $1.6 million raised for wishes. Throughout the day, the 108 golfers were greeted by the smiling faces of Wish Ambassadors Megan and Meghan, who graciously Taking a moment together during the golf tournament are Wish Children Meghan (left) and Megan. The League’s Social Responsibility Committee extends a special thanks to all the tournament sponsors, including: CUNA Mutual Group Tricorp Federal Credit Union and Synergent Beliveau, Fradette, Doyle & Gallant, P.A. FairPoint Communications State National Companies Raymond James/Morgan Keegan Fiserv EFT CRIF Lending Solutions New England Employee Benefits PSCU CU Direct Corporation Harland Clarke Experian served lemonade at the special Make-A-Wish® Lemonade Stand. All the golfers were surprised to learn that Megan, who was crowned Miss New Hampshire in April, was a Wish Child and received her wish of a dance room six years ago. For an extra donation, Miss New Hampshire shared her crown with all the golfers and took photos with each group. Megan will compete in the Miss America scholarship pageant in January 2013 where her talent will be none other than tap dancing. During the awards dinner, both young ladies spoke and thanked everyone for their support of MakeA-Wish®. EarthLink Wells Fargo Advisors, LLC Creative Office Pavilion G&A Insurance Northeast Planning Associates, Inc. Image Wise Upton & Hatfield LLP Financial Management Solutions Reliable Lender Services Express Data Inc. Portland Safe Eisenberg, Vital & Ryze, LLC Coclin Associates The foursome of Maurice Simard, Mark Richardson, and Dave Degulis from Triangle Credit, Union, and Jeff Pierce, from CUNA Mutual Group, was the first-place team and took home the coveted golf trophy. Social Responsibility Committee Chairman Brian Hughes also extended his thanks on behalf of the committee to all credit unions, their members, and chapters for the tremendous support they have all given in the last 16 years. Julie Baron, CEO of the Make-A-Wish Foundation® of New Hampshire, praised the efforts of the League, the credit unions, members, vendors, and the Social Responsibility Committee for their contributions each year. • At the Richard Mahoney Charity Golf Tournament, the check and plaque presentation included (left to right): NHCUL Chairman Michael L’Ecuyer, president/CEO, Bellwether Community Credit Union; Make-AWish Foundation® of New Hampshire CEO Julie Baron; Wish Child Meghan; NHCUL Director/ Make-A-Wish® Executive Board Member John Young, president/CEO, New Hampshire Federal Credit Union; Miss New Hampshire and Wish Ambassador Megan; Beverly Mahoney; and NHCUL Director/Chairman Social Responsibility Committee Brian Hughes, president/CEO, Holy Rosary Credit Union. 16 | centerpoint | summer.2012 RHODE ISLAND ASSOCIATION VOLUNTEERS HELP BRING ON THE GOLD AT SUMMER GAMES The group of credit union volunteers were out in full force at the Special Olympics Rhode Island Summer Games on Friday, June 1. More than 60 volunteers representing 11 credit unions and the Credit Union Association of Rhode Island spent Friday, June 1, at the University of Rhode Island helping to make the Special Olympics of Rhode Island Summer Games a success. The volunteers were assigned to “clerking” the walking and running events. “Clerking” involves checking athletes in, gathering them into “heats” for their races, and escorting them to the track. This assistance, according to the Special Olympics event organizers, is crucial to the success of the event. This year’s credit union volunteers included employees from Alliance Blackstone Valley Federal Credit Union, Blackstone River Federal Credit Union, Dexter Credit Union, Greenwood Credit Union, Navigant Credit Union, Pawtucket Credit Union, PGE Federal Credit Union, People’s Credit Union, Rhode Island Credit Union, Wave Federal Credit Union, and Westerly Community Credit Union. On Sunday, June 3, a group of Coventry Credit Union employees, family, and friends volunteered at the Summer Games, working and serving the barbecue lunch to athletes and guests. The credit union has adopted this activity for the last several years at the Summer Games. Throughout the year, the Association hosts a number of events to support the Special Olympics financially including golf and bowling tournaments, candy sales, and direct fundraising. The Association Board and Social Responsibility Committee would like to thank all the volunteers that participated in the Special Olympics Rhode Island Summer Games on behalf of the Association and their credit unions. • Nancy Zeppa (right) from Rhode Island Credit Union and a member of the Credit Union Association of Rhode Island’s Social Responsibility Committee, helps an athlete get to her next event but stops along the way for a photo. summer.2012 | centerpoint | 17 ZOMBIES, ROBOTS HELP IC FEDERAL CU WIN OVER INTERNET GENERATION Why A Series Of Offbeat Digital Videos Is Translating Into Big Membership Gains For The Fitchburg Institution By Matt Brown Banker & Tradesman Staff Writer Clever animated shorts featuring robots and zombies are paying double dividends for IC Federal Credit Union. They serve to educate members about the virtues of credit unions and the importance of life insurance, respectively, and, more importantly, are driving new, younger members to the Fitchburg-based institution. Credit: contributed photos Just before the Great Depression, the Immaculate Conception Credit Union was founded in the basement of Fitchburg’s Immaculate Conception church. Today, IC Federal Credit Union makes bloody marketing videos featuring zombies. Just as the transition to the IC Federal name was an adaptation to changing times, the production of animated YouTube videos to promote the institution and its products is a way to try to keep up with the quickly changing tastes and attitudes of the under-30 set. Young people are in what are sometimes called their “prime borrowing years,” and the credit union industry has been aggressive recently in trying to steal market share from banks, especially big banks. The whole “bank transfer day” concept pushed by the credit union industry last year didn’t result in big gains for IC Federal, according to Senior Vice President of Marketing Judy Kaddy. The off-beat, clever and generally amusing videos IC has produced are a way to get away from that kind of overt salesmanship. The challenge, as it has always been, is getting them through the door in the first place. Generations X and Y – people aged roughly 18 to 35 – have been living with the internet for all or most of their lives. They recognize right away when they see old-fashioned marketing poorly dressed up to appear hip. So it’s not hard to see where this would cause problems for institutions that use their age (old) as the cornerstone of their marketing efforts. IC Federal’s videos “are a stark departure from where most financial institutions go,” Pond said. That may be an understatement. NO HARD SELL “It is not the hard sell,” Kaddy said. “It SAUSAGE-MAKING is to educate, and the research shows that So far, IC Federal has released an aniwhat Gen X or Gen Y wants is to be edumated video comparing big banks to ghastly cated in order to make purchases down the interplanetary robots, and the aforemenroad, and in future videos coming out, we tioned zombie video – which aims to teach are not about selling. That has to be top of customers about life insurance by demonmind.” strating in graphic detail Jim Pond, founder of how life insurance will IC Federal’s videos Compassed, the Gardprovide for your family “are a stark departure ner-based creative serif you should be killed vices firm hired by IC to and eaten during a zomfrom where most financial produce the videos, said bie apocalypse. institutions go.” there’s something else “If we don’t do this, about young folks that no one is going to pay credit unions would do well to know: Once attention,” Pond said. “For content, the they enter a relationship with an institution internet is a graveyard, and with a generalike a bank or credit union, “they are likely to tion that is very conscious of when it’s being stay with you for a long time.” sold something, you have to push the envecontinued on page 23 18 | centerpoint | summer.2012 Loan Guarantee Program L GP T he following summary outlines the key benefits of the MemberClose Loan Guarantee Program. This program is designed to help your credit union make more home equity loans without taking on more risk. This program is made available exclusively to credit unions participating in the MemberClose program. Key Program Features • Eligible Loan Types - Fixed & HELOC - Home Improvement - Purchase Money 2nd • United Specialty Insurance Company “A” A.M. Best Rating • Maximum Loan Amount $175,000 • Maximum Loan-to-Value 100% • Minimum FICO Score 660 • Loan Term Maximum Closed End 20 Year • Loan Term Maximum Open End 10 Yr./10Yr. • Debt-to-Income Closed End 42% • Debt-to-Income Open End 40% • Lien Position 2nd Position • *Property Valuation ~ MemberClose - AVM - Collateral Point - Appraisal • *Insured Lien Position ~ MemberClose - Equiguard - MLR - Property Report • Loan Reporting Method Excel Spreadsheet • Premium Payment ACH RISK NO YES REWARD * Property Valuation & Insured Lien Position must be obtained through MemberClose in order for the loan to be eligible for coverage. This document is meant to provide a broad overview of the MemberClose Loan Guarantee Program. Please refer to the actual Policy for all terms and conditions. MEMBERS Insurance Agency, LLC For more inFormation call us at 1-888-746-2476 summer.2012 | centerpoint | 19 Is Plastic Fantastic for your Credit Union? BY SCOTT VAN VOORHIS I f your credit union is ready to jump back into credit cards, you are not alone. Looking for loans in a stagnant economy, credit unions across New England are weighing whether to leap back into the card business after selling their portfolios a few years ago. With their relatively high interest rates, credit cards offer the lure of increased earnings at a time when rates on mortgages and other loan products are at rock bottom levels. And for inspiration, all credit unions need to do is look at their counterparts in Massachusetts, New Hampshire, and Rhode Island who decided to stay in the card business, and who are now reporting they are glad they decided to hang on. Meanwhile, a tightening of federal regulations on what financial institutions and other lenders can charge on credit cards has led to a shakeup in the business, with credit unions with established card programs poised to exploit the market shift. Credit unions who offer credit cards are benefiting from the fallout, reeling in customers from big banks who are looking to consolidate their debt at the often much more reasonable rates offered by credit unions. “In 2008, 2009, and 2010 it was fairly common for financial institutions – credit unions included – to sell their portfolios,” said Bonnie Doolin, senior vice president and chief operating officer of New England 20 | centerpoint | summer.2012 Credit Union Services LLC. “The wind is shifting back to people at least looking at bringing their portfolios back.” HAPPY THEY DID NOT SELL Beginning in 2008, when the economy went sour, a number of credit unions decided to bail out of what looked to be a highrisk sector and sold their portfolios. Today only Eugene Foley about half of the 7,800 credit unions across the country still offer credit cards, notes Eugene Foley, president and chief executive officer of the Harvard University Employees Credit Union, Cambridge, MA, which has long offered cards. Credit card portfolios netted some decent prices from giant card companies looking for more customers and payments. But, as the economy has stabilized, some credit union executives are now longing for another shot at one of the few loan products out there with a flexible and sizable rate of return. “There was a reason those companies were paying premiums to credit unions to get their portfolios,” said David L’Ecuyer, president and chief executive officer of Central One Federal Credit Union in Shrewsbury, MA, which opted to hang onto its card portfolio. “It always makes money, during good times and bad times.” In fact, the best case for getting back into the card business comes from those credit unions like Central One that never left it. Local credit unions that kept their cards programs say the interest rates – anywhere from 8 to 12 percent – are two, three, and four times what they are able to charge for mortgages or other loans. In addition, even as they are able to make a little money, credit unions also report they are able to gain business from larger banks and financial institutions that charge much higher rates. Executives say members with debt on other, higher interest rate credit cards are paying off their old cards and transferring their debt to the lower interest cards offered by their credit unions. In that way, credit unions have been able to keep their credit card portfolios growing. “When I send out a mass email, I am pretty much guaranteed during that month a minimum of $150,000 in cash advances (and new business) to pay off other, higher interest rate credit cards,” said Lisa Morelli, chief executive of Andover Federal Credit Union, Andover, MA. BETTER AT HANDLING RISK One of the drawbacks of offering credit cards is that they can be one of the riskier loan types out there. They are unsecured loans, with members ultimately able to walk away from most if not all of their debts through the bankruptcy process. Credit union executives acknowledge these challenges and note defaults are part of the cost of doing business. Pioneer Valley Federal Credit Union in Springfield, MA, does not have a formal credit card program, but offers the Eagle Line, a $15,000 unsecured line of credit. “When people are hurting, the first thing that goes is the unsecured debt, second is the car, and the third is the mortgage,” noted Anabela Pereira, president and chief executive officer at Pioneer Valley. But when things get tough and a member starts struggling to make payments, credit unions have advantages over larger financial institutions. A cardholder may have more motivation to work something out with their credit union as opposed to an impersonal global banking conglomerate. And credit unions, given the close web of small-town-like relationships with their members, are better positioned to deal with problems when they arise. Morelli of Andover Federal fondly recalls working with a woman who transferred $45,000 in high-interest credit card debt to her new card at Andover Federal. The two came up with a plan to pay it down – the total is now $27,000 after a couple years of diligence, no doubt helped by the credit union’s 9.99 percent, no-latefee card. “We are not gouging them for high interest rates,” she said. There are other benefits as well. Credit unions that offer credit cards gain one more crucial link to their members. When their credit cards and other accounts are listed alongside one another, members can move money in and out and make payments with ease. The alternative is having members do a significant part of their banking with another institution, with no ties back to the credit union. “We want them to look at their credit cards online and see all their accounts,” said David L’Ecuyer, of Central One. “You get a lot closer to being their primary financial institution.” LOOKING TO GET BACK IN These and other attractions have some credit union executives who ditched their card programs a few years ago thinking again. Ma n c h e ster, New HampshireBernard McLaughlin based MembersFirst Credit Union of N.H. sold its credit card portfolio back in 2004. Now, as Bernard McLaughlin, the credit union’s president and chief executive officer, surveys the loan landscape, credit cards, with their higher rates, are looking attractive again. “The current economic environment of needing loans … makes getting back into the credit card business somewhat appealing.” However, while the rates are higher than other loan products McLaughlin worries that the added revenue streaming in will get gobbled up by regulatory costs and the need for staff working on the portfolio. He said he may revisit the idea in a couple of years, but for now he is deciding to keep the current arrangement, where MembersFirst gets a small fee from the company that bought its credit card portfolio. “At this time we do not believe we are going to move away from a third-party relationship, though that could change in the future,” he said. NEW OPPORTUNITIES AHEAD If he does, he may very well find credit unions hitting their stride with a range of card offerings. There is no way of predicting the future. But the current regulatory changes in Washington may actually give an advantage to credit unions seeking to get back into the card business, Foley said. At credit unions, the lowest rate is typically 7.99 percent, the highest is 12.99 percent. The Credit Card Accountability, Continued on page 22 summer.2012 | centerpoint | 21 Is Plastic Fantastic for Your Credit Union? Continued from page 21 Settlement Could Bring a $50 Million Cost for Credit Unions ment. However, the Electronic Payments Coalition (EPC) attributed that position to the trade groups’ interest in keeping its damage claims alive. EPC said in a statement that with the exception of NACS, all other class representatives through their court appointed lead counsel have “determined that this settlement is in their best interests as well as the millions of other merchants they represent.” The settlement resolves all competitive issues between merchants and the networks, EPC said. According to some press reports immediately following the settlement, some merchant groups, including the National Community Pharmacists Association and the National Grocers Association, said that they are still reviewing the court documents and assessing its impact on their members. Other aspects of the settlement include: • Visa, MasterCard, and the banks would create a $6.05 billion fund (a record amount for a class action settlement) to repay retailers for past fees charged. • Retailers would be permitted to assess “check out” fees or surcharges on credit card purchases, which has previously Responsibility, and Disclosure (CARD) Act of 2009 set up strict rules to crack down on card company efforts to make billions of dollars by piling on all sorts of fees and hiking rates to the limit. That, in turn, has reshaped credit cards back to primarily ratebased products, Foley said. “Credit unions are both comfortable with and good at competing on these more traditional terms.” Many credit unions with credit card portfolios reacted to the CARD Act legislation and subsequent regulatory rule-making with fear of being unable to navigate the regulatory burden. While it is true that the CARD Act created new standards for credit card and line of credit disclosures, as well as created new 22 | centerpoint | summer.2012 been prohibited by Visa and MasterCard rules. CUNA President/CEO Bill Cheney said that the surcharging aspect of the “ Importantly, this settlement means the issues in this case are now closed, once and for all. “ Reduced credit card interchange rate fees – mandated as a result of an historic lawsuit settlement between merchants and credit card companies – could cost credit unions with credit card programs up to a total of $50 million, according to estimates by the Credit Union National Association (CUNA). Visa, MasterCard, and several large banks, are defendants in a lawsuit brought by groups of merchants and their trade associations. On July 13, they agreed to pay billions to merchants to settle a longstanding credit card interchange fee class action lawsuit. In addition, the settlement requires a reduction in credit card interchange rate fees (IRF) of 10 basis points for an eight-month period, likely beginning in mid-2013. The rate reduction applies to all card issuers, including credit unions. If the total credit IRF reduction is $1.2 billion, credit unions with credit card programs would lose about $50 million in total revenues, or about 0.5 basis points on their total assets, CUNA Chief Economist Bill Hampel said. This loss would be concentrated among the relatively small number of credit unions that have very active credit card programs, he noted. The National Association of Convenience Stores (NACS) rejected the settle- Bill Cheney settlement – as well as the provision that consumer-owned credit unions would see a reduction in interchange revenue – are signs that the settlement does nothing for consumers. “We all know that interchange revenue enables credit unions to provide essential and cost-effective credit card services to their consumer members. We also know that the temporary reduction in interchange revenue that credit unions will experience will not likely find its way into the pockets of consumers, but will more likely into those of merchants,” Cheney said. However, the credit union leader added that “importantly, this settlement means the issues in this case are now closed, once and for all.” limitations on how fees and finance charges are set, the regulatory requirements are not unmanageable. Sophisticated credit card computer processing systems are now able to create the appropriate computer parameters in order for credit unions to remain compliant with the rules while offering an attractive credit card product to their membership. Coupled with well-designed disclosures and account agreements, the regulatory burden may be lightened. “I am really bullish on credit cards,” Foley said. “The impact of the CARD Act will really give credit unions a competitive advantage to move back into credit cards.” • Zombies, Robots Help IC Federal CU continued from page 7 lope. We could’ve taken these things much, much, much further, but we need to balance the needs of the credit union.” Soon, IC Federal will release a musical video that explains budgeting, and a claymation video that explains saving, and is “as borderline risqué as (IC Federal) would allow us to go,” Pond said. “We pitched it three times. The first one was way out there. We want to keep it interesting, but we don’t want to alienate people.” The two released so far have had the opposite effect. IC Federal’s membership among the 18-30 crowd has increased 16 percent since the videos were released, according to Marketing Administrative Coordinator Pati Maguy. IC Federal has seen a 35 percent increase in “Gen Y” membership since last summer. “When we first came up with this con- “Clients only see that one great idea. But it’s really a sausagemaking process. To IC’s credit, when they see something like this, they say ‘our advertising isn’t about our company, it’s about our user group.’” – Jim Pond; Founder, Compassed cept, we really didn’t know how it was going to be received, or how it was going to take off. Gen Y is not known for being loyal customers,” Monica Turner, marketing coordinator, told Banker & Tradesman. “I am not Gen Y,” Kaddy said. “And the first time I saw zombies and blood, I thought ‘Oh, my god.’ I called my daughter, who’s 32, and said, ‘have you heard of zombies?’ and she said, ‘of course.’” “Clients only see that one great idea,” Pond said. “But it’s really a sausage-making process. To IC’s credit, when they see something like this, they say ‘our advertising isn’t about our company, it’s about our user group.’” • This article originally appeared in Banker & Tradesman. Got Apps? We Do! ...and they’re not games ...they’re productivity solutions for credit unions! Learn how COCC apps and other core processing innovations can help your credit union succeed. Core ProCessinG serviCe w w w. c o c c . c o m - 8 8 8 . 6 7 8 . 0 4 4 4 summer.2012 | centerpoint | 23 P RO D U C TS A N D S E RV I C E S TEN NEW ENGLAND CREDIT UNIONS JOIN CO-OP SHARED BRANCHING Signings Result of Marketing Partnership Between FSCC, LLC, and NECUS, LLC FSCC, LLC, a part of CO-OP Shared Branching, and New England Credit Union Services, LLC, are partnering on a marketing initiative in three New England states to expand credit union participation in shared branching. A total of 10 credit unions in Massachusetts, New Hampshire, and Rhode Island have signed letters of intent to join the COOP Shared Branching network since the program kicked off in early April. The 10 credit unions will bring 36 new branches into the network, which already includes more than 4,600 physical branch locations, plus 2,200 Vcom® kiosks at 7-Eleven stores, nationwide. The marketing initiative included a package of relationship pricing opportunities that also features CO-OP Network, the 30,000-strong ATM network operated by CO-OP Financial Services. “This initiative demonstrates the advantages that CO-OP Shared Branching can now offer the credit union movement with the merger of FSCC and CO-OP, both in terms of network coverage and It’s Time to Expect More from Currency Automation Solutions and Self-Service Coin Centers Doing Things the Right Way Currency Dispensers Centers ice Coin Self-Serv 19 1 61-201 50 Y E AR S 24 | centerpoint | summer.2012 Currency Recycle rs Contact us: 800-347-1414 ext. 336 email@example.com or visit www.magner.com operational efficiencies,” said Sarah Canepa Bang, president and COO of FSCC, LLC. “The network has been growing robustly in 2012. The leadership at NECUS, LLC, has been outstanding, and we are very grateful for our partnership with them.” “Our credit unions have good reason to be excited about shared branching, which is the perfect combination of state-of-theart transaction technology in a traditional branch setting,” said Bonnie Doolin, senior vice president and COO of NECUS, LLC. “This is a great time to be a credit union and nothing demonstrates to consumers our movement’s spirit of cooperation better than shared branching.” The organizations are not identifying the credit unions that have signed letters of intent as contracts are pending and are not expected to go into effect until next year. However, FSCC, LLC, and NECUS, LLC, are planning to announce specific signings on International Credit Union Day, October 18, 2012, in a New England-based event involving the media, credit unions and their members. For more information about shared branching opportunities, visit www.co-opfs.org. • The Massachusetts and New Hampshire Credit Union Leagues and the Credit Union Association of Rhode Island are excited to announce a new resource now available through our websites for all members: RateMap. This unique mapping tool provides access to key interest rates for a selection of the most commonly offered deposit and loan rates in your backyard and across the country and is brought to credit unions in collaboration with League/ Association InfoSight and RateWatch. With access to RateWatch’s national database of more than 90,000 branches for deposit data and more than 40,000 branches for loan data, competitive analysis is now only a click away. Research by address, zip code, or city and te Comple A Perfect Alternative Solution to your and CORE Share Draft Processing Needs. > LEAGUES/ ASSOCIATION PROVIDE NEW RATE MAPPING TOOL FSI is pleased to announce that they are now offering Core Data Processing Services to credit unions nationwide. Through their partnership with EPL, FSI is offering i-POWER, a browser-based core data processing solution. An application with intuitive navigation and screens which present the end-user with at-a-glance member information and serves as the base of all member transactions. The core processing offering compliments FSI’s existing share draft processing, branch/corporate/member capture, statement rendering, fraud protection, disaster recovery and other products. FSI focuses on being a service provider, not just a data center, offering services that make a credit union's job easier. This partnership makes FSI the 'complete' alternative solution for credit unions. Serving the smallest to the largest credit union easily with a full suite of innovative products and solutions. state, and narrow your search results by filtering by institution type, product type, and rate. Additional competitive data is also available, such as website and number of locations for each displayed institution. See customer/ member reviews from sites such as Yelp. Internet bank rates and the ability to print deposit rate reports are also available. As a League/ Association member, you are also eligible for exclusive offers from RateWatch. Click the RateMap icon on your League/Association website to utilize the tool now and to view special offers. • Be The First To Know. www.bankerandtradesman.com summer.2012 | centerpoint | 25 C R E D I T U N I O N P EO P L E In Memoriam John Walsh, founder of MembersFirst Credit Union of N.H. and the first president (now chairman) of the New Hampshire Credit Union League, passed away on Monday, May 21, at the age of 98. MembersFirst, then known as Manchester Municipal Employees Credit Union, was first established in 1949 when John was a local firefighter looking to help fellow firefighters with their finances. John operated the credit union himself from his briefcase at the Somerville Street Fire Station in Manchester until moving into Town Hall in 1950. He served the credit union for 30 years. In 1954, John was instrumental in the forming of the New Hampshire Credit Union League. John was a great leader in the New Hampshire Credit Union movement and was a source of many entertaining stories about the history of credit unions in the state. He attended many recent League Annual Meetings, where he was accompanied by his daughter, Judith Walsh-Heminger. The board and staff of the League extended their most sincere sympathies to Judy and the entire Walsh family. Triangle Credit Union President to Serve at the World Credit Union Conference Triangle Credit Union, Nashua, NH, President/CEO Maurice Simard served as a moderator for one of the educational sessions at the 2012 World Maurice Simard Council of Credit Unions (WOCCU) Annual Conference, held July 15-18 in Gdansk, Poland. For more than 40 years, WOCCU and its members have been making a world of difference by improving people’s lives through credit unions, by raising awareness of the international credit union system, communicating with leaders to further the 26 | centerpoint | summer.2012 understanding of credit unions and their worldwide benefits. The organization facilitates the exchange of knowledge, information, and best practices in operations among credit union movements. The WOCCU is associated with credit union cooperatives, federations, and associations in 35 countries and has completed credit union development projects in 71 nations, ranging from Afghanistan and Bolivia, to Kenya and Uzbekistan. Simard said, “I am both honored and excited to have been asked to serve in this capacity, and grateful for the opportunity it affords me, as a representative of Triangle Credit Union, to contribute at the world council level in making a difference in people’s lives.” Jack Caulfield Resigns from St. Mary’s Credit Union John R. Caulfield, president/CEO of St. Mary’s Credit Union, Marlborough, MA, stepped down from his position effective June 22. Caulfield joined St. Mary’s Credit Union in May 2007. During that five-year period, St. Mary’s Credit Union has achieved significant deposit and loan growth, improved profitability, introduced commercial lending and other services, and invested in select internal programs that resulted in high levels of member satisfaction. The credit union recently announced plans to expand into Westborough with a new branch. As the credit union prepares to mark its 100th anniversary in 2013, St. Mary’s Credit Union Board Chairman Gerard Richer credits Caulfield and his team with positioning the credit union for another century of growth and service to the communities it serves. “Jack has been a true steward of our members’ assets during very challenging economic conditions,” Richer said. “His work to build a strong foundation for St. Mary’s assures us a healthy future. We look forward to continuing to provide outstanding service and to bringing innovative products and services to our members.” Caulfield is moving on to pursue new management opportunities. “I have enjoyed the challenges and opportunities that my CEO role offered me and I leave the credit union financially strong, profitable, and positioned for continued success,” Caulfield said. Former CEO and current director Thomas M. Wellen is serving as interim CEO until the board completes a search for a new chief executive officer. Maureen Bertrand, Southern Mass Credit Union EVP of Operations, Retires Southern Mass Credit Union (SMCU), Fairhaven, MA, President and CEO Daniel E. Waltz announced that on June 30, 2012, MauMaureen Bertrand reen Bertrand retired from the credit union after 29 years and four months of faithful and dedicated service to the credit union. Maureen began her career at Southern Mass on Valentine’s Day in 1983, when the credit union was Southern Massachusetts Telephone Workers’ Credit Union in New Bedford. At that time, the credit union had only $13.9 million in assets. During her tenure, the credit union grew to over $193 million in assets with over 10,000 members. Maureen has been an extremely valuable member of the executive management team for many years, where she spearheaded the development and implementation and many of the products and services the credit union offers to the membership. She was instrumental in the development and implementation of the mortgage lending department, as well as the core processing system, Fiserv’s XP Systems, in the early 1990s. Although it has undergone many updates, revisions, and versions since its implementation, it continues to be the credit union’s core processing system. Earlier this year at the 90th Annual Meeting, Maureen was presented with a special “People Helping People” award for her dedicated service to the elderly through her work and co-chairpersonships at Coastline Elderly Services. On June 8, Maureen was crowned “Queen for a Day.” Credit union employees and directors held a special staff meeting, highlighting Maureen’s career and hosting a luncheon to celebrate and honor her career and thank her for her dedicated service. Besides a card and gift from the staff and a cake made by the credit union’s own Lucy Machado, the credit union gave her a mantel clock and a bouquet of 29 different flowers to represent the 29 years of service to the credit union. CEO Waltz stated, “The credit union employees, directors, and members wish to thank Maureen for her dedicated service to the credit union for the past 29 years. Her loyal and dedicated service to our credit union’s operations and our members has been invaluable to our successful growth and has positioned us to move progressively forward as we approach assets of over $200 million.” “I wish Maureen much health and happiness as she begins her retirement,” Waltz concluded. “The staff and membership of SMCU will greatly miss her.” Mullin Joins Workers’ Credit Union William C. Mullin has joined Workers’ Credit Union, Fitchburg, MA, as senior vice president of business banking and commercial lending. Mullin will direct the William C. Mullin expansion of the credit union’s real estate and commercial and industrial lending. Mullin was previously a principal at RMPI Consulting, LLC, a Boston-based risk management and consulting firm to financial institutions. Prior to joining RMPI, he was a partner and the COO for Thorndike Development Corporation, a real estate development company based in Norton. Earlier in his career, Mullin also served as a senior vice president of the former Fleet Financial Group, where he focused on real estate and other commercial lending in the state. Mullin is active in civic affairs, serving two terms as selectman in the town of Acton and currently as a member of the town’s Finance Committee. He also serves on the boards of the Friends of the Lower Fields in Acton and the Maynard High School Athletic Hall of Fame. Mullin received a bachelor’s degree from Harvard College and a master’s degree in business administration from the University of Chicago. Morawski Reappointed to BITS Liaisons Task Force The Massachusetts and New Hampshire Credit Union Leagues and the Credit Union Association of Rhode Island have announced that John Morawski has John Morawski been reappointed to the BITS Liaisons Task Force. BITS is a not-for-profit industry consortium whose members number 100 of the largest financial institutions in the U.S. Created in 1996 by the CEOs of these institutions, BITS fosters the growth and development of electronic financial services and e-commerce for the benefit of financial institutions and their customers/members. Financial Products Technology solutions Superior Service TECHNOLOGY MEETS FINANCIAL SERVICES a Transamerica company www.CRISolutions.net summer.2012 | centerpoint | 27 C R E D I T U N I O N P EO P L E Working to sustain consumer confidence and trust by ensuring the security, privacy, and integrity of financial transactions, BITS provides intellectual capital and addresses emerging issues. These leaders in the BITS organization facilitate cooperation among the financial services industry and other sectors of the nation’s critical infrastructure, government organizations, technology providers, and third-party service providers. Morawski is the chief technology officer for the Leagues and Association and ensures that the trade association operations are secure, robust, and efficient. In addition to his internal work at the Leagues and Association, where he has worked for the past 13 years, he provides technology consulting to member credit unions in a number of ways. First, he provides support and guidance to credit unions in researching data processing systems and in negotiating contracts with vendors. He also conducts on-site GrammLeach-Bliley audits for credit unions. And, as a certified ethical hacker, he has been trained to utilize the same tools an illegal hacker would use in order to investigate and resolve any weaknesses in an institution’s networks. Ethical hacking is yet another means for an institution to identify weaknesses and provide solutions to stop unwanted penetration of its systems. Tom Clancy Joins Leominster Credit Union Leominster Credit Union (LCU), Leominster, MA, announced that Tom Clancy has been hired as vice president of information technolTom Clancy ogy. He will manage all aspects of the information technology department. Clancy brings more than 24 28 | centerpoint | summer.2012 years of financial services experience to his position. Prior to joining LCU, Clancy was most recently vice president of operations and information technology at Central One Federal Credit Union. “Tom has tremendous experience in the technology arena and an extensive banking background. He will be a valuable addition to our management team,” said Gordon Edmonds, president/CEO of LCU. Clancy holds a bachelor’s degree from the University of Massachusetts and currently resides in Westborough with his wife and son. Pawtucket Credit Union Hires Silva Karl A. Kozak, president/CEO of Pawtucket Credit Union, Pawtucket, RI, announced that Joe Silva has joined the credit union as vice president of commercial Joe Silva lending. Silva will be responsible for the management and growth of the credit union’s commercial loan portfolio, including real estate and business lending. In addition to overseeing the day-to-day activities of the department, he is also charged with adherence to regulatory requirements and procedural development. Formerly of Bank Rhode Island, he has over 15 years of experience in commercial lending. Silva has been the recipient of Providence Business News’ 2011 “40 Under 40 Award” and the 2009 Partner in Philanthropy Award by The Association of Fundraising Professionals, RI Chapter. He serves on the advisory and credit committees of the Local Initiative Support Collaborative (RI chapter) and is a Skate for Joy board member. He holds a bachelor’s degree from the University of Rhode Island. Workers’ Credit Union Names Three to New Positions Workers’ Credit Union, Fitchburg, MA, has named Linda Lagoy to the newly created position of vice president and senior regional manager, with Linda Lagoy Judy Bourgault and Petra Rivera each named to the new position of assistant vice president and regional manager, reporting to Lagoy. Bourgault, who previously managed the credit union’s OrJudy Bourgault ange branch, will be based in Lunenburg, and will also oversee the Lancaster office and both Leominster locations, which are located in Water Tower Plaza and Walmart Petra Rivera Supercenter. Rivera, who previously managed the Lunenburg branch, will be based in Groton, and will also oversee the Acton and Chelmsford locations. Lagoy will continue to manage the Fitchburg office as well as the Orange, Gardner, Twin City, and Townsend branches, in addition to oversight of the other two regions. Eight Jeanne D’Arc Credit Union Employees become Certified Financial Educators Jeanne D’Arc Credit Union, Lowell, MA, is pleased to announce that eight employees have completed the necessary training from the National Financial Educators Council (NFEC) to become certified financial education instructors. Jeanne D’Arc Credit Union employees (left to right) Anne-Marie Bisson, Nicholas Folger, Sandra Tgibides, Leisa Brito, Heather Pintal, Kimberly Sepe, Nicole Polex, and Kimberly Beaulieu, are proud to have earned the certified financial educator designation, joined by NFEC trainer Vince Shorb. The coursework focused on the six essential topics of financial literacy instruction: • subject knowledge • measurement • financial psychology • student experience • core subject integration • bridging practical application with educational standards “We take financial education and our commitment to the community very seriously,” said Mark S. Cochran, president and chief executive officer of Jeanne D’Arc Credit Union. “I am proud of our employees for their dedication to our members. They realize that by enhancing their own financial education, they can improve their ability to help members of the community.” The employees who completed the intensive one-day training program are: Kimberly Beaulieu, Anne-Marie Bisson, Leisa Brito, Nicholas Folger, Heather Pintal, Nicole Polex, Kimberly Sepe, and Sandra Tgibides. The eight employees comprise Jeanne D’Arc Credit Union’s Financial Education department. • summer.2012 | centerpoint | 29 C R E D I T U N I O N C A L E N DA R Special Events CONFERENCES AND CONVENTIONS Practical Solutions – Small Credit Union Conference October 16–17..........................Grand Pequot Tower, Foxwoods Resort, Mashantucket, CT Fall Leadership Conference October 26–28..................................Newport Marriott, Newport, RI Networks LENDERS NETWORK Lending Workshop with Brett Christensen September 11–12............................ DoubleTree Hotel, Milford, MA Bankruptcy November 28................................... DoubleTree Hotel, Milford, MA Collections November 29................................... DoubleTree Hotel, Milford, MA Developing Great Managers, Part III of III, December 4.............................................CU Center, Marlboro, MA Legal Update – Deposit Operations: 2012 in Review .............................................................................. December 12 Webinar and Webcast Sessions Credit Union Business Documents: Email & ESI Retention/ Destruction Policies & Procedures ....................... December 13 Garnishments, Subpoenas, Summonses, Levies: Getting it Right! ..........................................................................August 21 Regulation E Alert: New Requirements for Consumer Foreign Remittance Transfers ............................................. December 18 Improve Your Bottom Line: Tips for Auditing Income & Expenses ....................................................................................August 23 Bankruptcy Today: Reporting, Proof of Claims & Identifying Fraud ..................................................................... December 19 New IRS Rules for Interest Reporting on Nonresident Alien Accounts: Effective 2012 Tax Year............................... August 28 QuickBites Director Series: Financial Literacy Fundamentals for New Directors: Financial Statements, Key Ratios and How to Monitor Your Credit Union .......................................................August 29 Conducting & Evaluating Consumer Reports for Employment Purposes..................................................................... August 21 Preparing Your Credit Union’s Health Care Reform Strategy: Effective January 1, 2013 ..........................................August 30 Marketing with a Click and A Smile........................... August 28 The Legal Side of Dealing with Power-of Attorney & Living Trust Documents ..............................................................September 5 CU Thrival Strategies for a Slow Economy ............September 11 Preparing for Your FFIEC Authentication Guidance Regulatory Exam .....................................................................September 11 COMPLIANCE & RETAIL DELIVERY NETWORKS MEETING Required Compliance Series: Regulatory Compliance for All Staff, Including Red Flags for Identity Theft, Bribery and Consumer Privacy................................................. September 12 Credit Union Fraud – Are You Prepared? September 26.................................. DoubleTree Hotel, Milford, MA IAT Suspect Transactions: What’s an RDFI to Do? ..September 13 HR NETWORK MEETING Conducting an HR Audit October 2.................................................CU Center, Marlboro, MA Seminars and Schools Lending Workshop with Brett Christensen September 11–12............................ DoubleTree Hotel, Milford, MA 2012 BSA Update September 18........................................ Angelica’s, Middleton, MA October 31...............................................CU Center, Marlboro, MA November 8.............................................CU Center, Marlboro, MA Orientation for Directors September 21–22............................ The Cliff House, Ogunquit, ME October 5–6...............................Intercontinental Hotel, Boston, MA October 19–20..................................... Cranwell Resort, Lenox, MA Credit Union Employee Boot Camp September 26..........................................CU Center, Marlboro, MA November 28...........................................CU Center, Marlboro, MA Credit Union Fraud – Are You Prepared? September 26..................................Double Tree Hotel, Milford, MA Creating and Executing a Business Development Strategy September 27 Developing Great Managers, Part I of III October 10...............................................CU Center, Marlboro, MA Account Essentials October 18...............................................CU Center, Marlboro, MA Director Series: Advanced Financial Literacy Update for New & Experienced Directors: ALM Primer & New Financial, Accounting & Risk Issues .....................................September 18 SAFE Act: Tracking, Renewing & Compliance ........September 19 Navigating the New International Reg E Requirements ............. ..............................................................................September 20 Notary Essentials & Legalities for Credit Unions .September 25 Reinvigorating the Bottom Line: Making Up for Lost Revenue ..............................................................................September 26 Starting a Youth Program on a Shoestring Budget .September 18 Building a Successful Regulatory Compliance Program ..............................................................................September 20 Notary Public Training ................................................. October 2 Loan Interviewing & Sales Skills (Two-Hour Telecourse)........... .................................................................................. October 15 Current Internet Marketing Vehicles ......................... October 23 Cyber Tracking & Collections Techniques (Two-Hour Telecourse) .................................................................................. October 25 15 Worst Security Mistakes...................................... October 31 Business Development Fundamentals .....................November 6 ACH Exception Handling: Returns, Reversals, NOCs & More (Two-Hour Telecourse) .............................................November 8 Servicemembers Civil Relief Act (SCRA)............. November 15 Computer Security for All Staff ................................... October 3 Effective Variable Pay Lending Strategies.............. December 3 Conducting the 2012 ACH Audit............................... October 10 Data Breaches ...................................................... December 13 Safe Deposit Boxes: Drilling, Death & Unclaimed Property .................................................................................. October 16 Network Security Updates .................................... December 28 Beyond ALLL Doubt: Methodology & Policy Development in Uncertain Times........................................................ October 17 Product Webinars Lending Series: Advanced Underwriting Skills for Consumer Loans ........................................................................ October 23 Working with Troubled Members: Loan Extensions, Deferments, Re-aging, Refinancing & Incentives.......................... October 24 Director Series: The Board’s Role with the Loan Committee .................................................................................November 7 Top 10 IRA Issues: Compliance, Minimum Distributions, Reporting & Year-End Issues ....................................November 8 10 Steps to Increased Loan Growth...................... November 14 Vendor Due Diligence & Effective Vendor Management Programs ...............................................................November 15 IRA Essentials Workshop November 6........................... Double Tree Hotel, Westborough, MA Debit Card Error Resolution & Regulation E Investigations ...............................................................................November 27 IRA Advanced Workshop November 7........................... Double Tree Hotel, Westborough, MA Legal Update – Loans: 2012 in Review................ November 28 Required Compliance Series: Robbery Preparedness for all Stall...................................................................... November 29 Escrow Account Compliance ................................... December 4 Bankruptcy sponsored by the Lenders Network November 28......................... Double Tree Hotel, Westborough, MA The Last Frontier: Risks & Opportunities for Business Loans ................................................................................ December 6 Bankruptcy sponsored by the Lenders Network November 29......................... Double Tree Hotel, Westborough, MA Unfair, Deceptive & Abusive Practices: Is Your Credit Union at Risk? ..................................................................... December 11 30 | centerpoint | summer.2012 Increase Loans – CU Loan Officer Sales Training ...September 5 HR Danger Zones: What You Need to Know to Stay Out of Trouble........................................................................ October 2 Consumer Lending Basics October 25...............................................CU Center, Marlboro, MA Developing Great Managers, Part II of III November 14...........................................CU Center, Marlboro, MA ONE-HOUR TELEPHONE CONFERENCING Website Compliance............................................. November 28 Earn Income Through Sprint CU Member Program ................................................................................... August 14 ............................................................................. September 11 Chapter Meetings and Activities – MA Topic: Salute to Barney Frank September 18..................................... Florian Hall, Dorchester, MA Holidays September 3 – Labor Day October 8 – Columbus Day November 12 – Veteran’s Day (observed) November 22 – Thanksgiving Day November 23 – Day after Thanksgiving (CU Center closed) December 24 – Day before Christmas (CU Center closed) December 25 – Christmas Day We turn ideas into reality... Let us show you how! www.nes-group.com