Tricorp by wuyunyi


                                                                                                                                                          January 2004

A New Way to Measure CU Performance
“Performance evaluation is an ideal method for           times, this comparison does not paint the whole           The Credit Union Benchmarker or CUB, will be
credit unions to measure service and performance,        picture.”                                                 incorporated into the CUNA website at “The
not only internally, but to also compare their           With CUB, credit unions can narrow the                    Point for Credit Union Research and Advice”. The
performance with other credit unions of similar          performance evaluation and select restrictions on         URL for the website is
asset size,” explained Hal Fried, Professor of           the comparison CUs, such as delinquency, number           CUNA expects to have the program ready for
Economics from Union College. Professor Fried            of members, assets, fee income, income from               release by early January of 2004.
addressed attendees to TRICORP’s Annual Fall             capital and mortgage. “With the interactive CU
Forum on the Credit Union Benchmarker (CUB),             performance program, credit unions can run
an interactive computer benchmarking program.            alternative specifications and learn how to make
Professor Fried, in conjunction with CUNA and            their CU even better than it already is. This
two colleagues in Europe, created this new and           program can even evaluate and analyze the pros
innovative approach to performance evaluation to         and cons of a potential merger,” said Fried.
help CEOs and volunteers see how their credit            Fall Forum attendees were impressed with Fried’s
union “stacks up” against the competition. In his        product, with one noting, “CUB is an excellent
presentation, Fried explained that traditional           solution to benchmarking and peer-to-peer
benchmarking could be misleading because it can          analysis.” Another added, “Performance evaluation
produce “inappropriate comparisons.” Fried               is something that a number of CUs are interested
continued, “In traditional benchmarking, CUs             in and I will be anxious to see the results once the
with more resources and/or that operate under            program goes live next year. It could be an
more favorable circumstances are included. Often         outstanding option.”

When it’s time to upgrade your business technology,      are several benefits to using APEX in your credit         With ACH volume increases averaging more than
simply look to your corporate. TRICORP is now            union. Here are just a few:                               15 percent each year for the past 10 years your credit
offering APEX-ACH, an Internet-based, low cost             • Continuous-flow processing                            union’s ability to manage increased volumes is vital
solution for ACH receipt and origination.                                                                          to reach your member service goals.
                                                           • Internet-based technology
APEX is an online ACH origination and receipt                                                                      The APEX system is based on Tandem computers
system for creation, collection and distribution of        • Online, real time access to the system                and ACI software. Since APEX runs over a secure
ACH transactions for your credit union. The ease             warehouse                                             Internet connection, the need for additional software
and speed of online delivery allows your credit union    With APEX-ACH, TRICORP is able to provide                 or hardware is eliminated. Nothing is loaded on the
to achieve a more efficient, robust means of ACH         continuous-flow processing, so your files are             hard drive of your PC, allowing you more flexibility
processing. This translates into simpler, more           processed much quicker than in the past. You also         in your day to day operations and making recovery
efficient operations for you. And, by settling in your   have access to the system warehouse. This means           easier. Plus, credit unions that wish to do more
TRICORP account, you can consolidate your cash           you can view your credit union’s trace and research       business with their select employee groups will find
management into one, centralized location.               items in the system warehouse to derive returns,          the ease of use very appealing.
In the new APEX product, you will notice a number        view statuses or submit reversals to TRICORP. And         For more information about APEX-ACH, please call
of enhancements from our old ACH product. There          since it’s online, the information is provided in real-   Denise Nowinski at 800-346-1936 ext. 210 or Deb
                                                         time.                                                     Vogt at 800-551-9332.

Loans to Meet Your Needs
Shared Risk and Mutual Commitment
Tricorp firmly believes that its products and            While the basic features of the line of credit            member may choose to sweep all available money
services are the best in the business. We also           program remain exactly the same, the lower rate           to cover liquidity demands before actually
recognize the need to move forward with new              options may be extremely beneficial to credit             receiving a loan advance. Other financial
initiatives that provide real options to meet the        unions currently experiencing (or expecting to            institutions impose strict rules on sweep accounts
varying needs of our membership. To that end,            experience) tighter liquidity                             (i.e. low yielding settlement account) and high
Tricorp has established a line of credit program         Some important factors should be considered               yield overnight accounts. Tricorp pays the highest
that enables members to significantly lower their        when looking at TRICORP’s line of credit                  rate possible and allows unlimited sweeps from
overnight borrowing rates for nominal                    program. First, aside from the standard right of          those high yielding accounts.
consideration in the form of a non-interest balance      offset, advances under the line of credit are             This program allows members to choose a very
requirement.                                             unsecured. Second, the rate options are                   favorable borrowing package depending on the
A guiding principle to this line of credit program       extraordinarily low relative to the cost of the non-      individual needs. It is not free and does require an
is to provide real financial solutions to our            interest balance requirement and the unsecured            element of shared risk and mutual commitment,
membership through shared risk and mutual                nature of borrowing. Third and perhaps the most           but we believe our members will benefit from a
commitment. We believe these to be important             important, the overall liquidity relationship with        greater choice for the mutual benefit of all.
business concepts that are also consistent with          Tricorp is an extraordinary financial deal for            For information regarding this unique loan
traditional credit union philosophy and values.          members. Tricorp has no tiered overnight or               program please call Denise at 800-346-1936 ext
Shared risk and mutual commitment align the              settlement accounts, nor do we play games with            210, or Deb 800-551-
interests of Tricorp and the membership and will         your account balances and loan balances, all of           9332,
ultimately serve both participants very well.            which could substantially reduce your earnings. A

      WATCH YOUR EMAIL FOR ALL FUTURE ISSUES OF TRICORP TIMES. IF YOU DO NOT RECEIVE                                                       THE NEXT ISSUE
                   PLEASE CONTACT DEB VOGT AT 800-551-9332 OR DVOGT@TRICORP.ORG


 TRICORP 2004 Holiday Schedule                                                        CUNA Economist
      New Year’s Day . . . . . . . . . . . . . . Thursday, January 1
      Martin Luther King, Jr. Day . . . Monday, January 19
                                                                                      Forecasts Strong
      Presidents’ Day . . . . . . . . . . . . . Monday, February 16
      Patriots’ Day . . . . . . . . . . . . . . . . . . Monday, April 19              Savings Growth,
      Memorial Day . . . . . . . . . . . . . . . . . Monday, May 31
      Independence Day . . . . . . . . . . . . . . . Monday, July 5
      Labor Day. . . . . . . . . . . . . . . . . Monday, September 6
                                                                                      Slightly Higher Rates
      Columbus Day. . . . . . . . . . . . . . Monday, October 11
      Veterans’ Day . . . . . . . . . . . . Thursday, November 11
                                                                                      For 2004
      Thanksgiving Day . . . . . . . . Thursday, November 25                          At TRICORP FCU’s Annual Fall         strong, yet slowing savings growth,
      Christmas Day . . . . . . . . . . . . . . Friday, December 25                   Forum, held this past October in     loan growth remaining modest
                                                                                      North Conway, CUNA                   but growing stronger as the year
                                                                                      Economist, Mike Schenk, told         progresses and a steep yield curve
                                                                                      members the economic outlook         with short-term rates remaining
 Member Services Reminders:                                                           for credit unions in 2004 looks      very low.”
                                                                                      solid but that “credit unions must       Schenk also predicted that
 Currency                                      Savings Bonds Update                   understand the interactions and
 If you or the person handling currency        A few months ago we published a                                             2004 could see “the bursting of
                                                                                      the ROA required to maintain         the bubble on the annual home
 would like to be put on our currency          newsletter article about US Savings    capital.”
 alert email list (for changes in ordering     Bonds – indicating that as of 2005                                          price increases, with inflation-
 denominations etc.) please email Sonja        or earlier, paper bonds would no           At the Forum, Schenk             adjusted annual home price
 at or call 800-346-      longer be issued at any financial      reviewed the current state of the    increases actually declining in
 1936 ext. 205.                                institutions and available only        U.S. economy, noting a rise in       2003 and looking flat for 2004.”
                                               online. Since then, legislation has    unemployment and a decline in            The economic outlook for
 Rate sheets                                   challenged this and the deadline has   consumer confidence. According       CUs should include a lower
 To receive our daily rate sheets              been pushed back indefinitely by the   to Schenk, both of these indices     operating expense to average asset
 immediately upon issue please email           government. We understand this is      directly impact the financial        ratio, a higher return on assets and or call 800-        an important service that you          performance of credit unions and     a lower capital-to-assets. In 2004,
 346-1936 ext 201.                             provide to your members. We will       their ability to grow.               Schenk believes that for credit
                                               keep you informed if anything                                               unions to succeed financially there
 Electronic Statements                         should change.                                                              are three keys: make money; stay
 Members using Open Door are reminded                                                      In his presentation, Schenk
                                                                                      forecasts a sharp cut back in        solvent; and grow.” In addition, a
 to print monthly statements or save them                                                                                  credit union’s success will also
 to a file for use in auditing purposes.                                              refinancing volume which means
                                                                                      that credit unions will need to      depend on its ability to be aware
 Questions? Email Carol Anne at                                                                                            of and adjust to the affect of the or call 800-                                                 focus more on money loans.
                                                                                      Schenk explained, “With much         economy on credit union finance.
 346-1936 ext 200.                                                                                                         If credit unions are able to do this
                                                                                      less refi volume, market share
                                                                                      becomes even more important.”        effectively, they will do well in the
                                                                                      He added, “In 2004, credit unions    year ahead.
                                                                                      will operate in an environment of

P.O. Box 1429
Portland, ME 04104

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