A PUBLICATION OF THE SC CREDIT UNION LEAGUE & AFFILIATES
Leading the way
Community Linda Weatherford, SPC Cooperative Credit Union’s director of marketing and business devel-
Grants opment, takes time to discuss a financial concept with a Mayo High School student. The Hartsville-
based credit union involves its entire organization and a variety of methods to impress upon youth
the importance of financial knowledge.
lphonse Desjardins founded the first credit unions in Canada and the
U.S., and he pioneered youth savings clubs and in-school "banks,"
known as caisses scolaires. In his honor, the Credit Union National
Association created the Desjardins Youth Financial Award for credit
unions and leagues.
This month, we congratulate state-level Desjardins Award winners SPC
Cooperative Credit Union and State Credit Union, and we highlight the outstanding
Safe Deposit work of each to promote improved financial literacy throughout the Palmetto State.
SPC Cooperative Credit Union
December 12, 2006 $80-200M in assets
Edward L. Bateman Center Involved, Committed, Enlightening
SPC Cooperative Credit Union delivered on its plans to reach and teach youth
and young adults throughout its market area in 2005-2006. From face-to-face instruc-
See ‘06 Desjardins, Page 6
NCUA: CUs fulfill their mission
Executive Vice President, Advocacy
South Carolina Credit Union League
The to all credit unions extending service national and regional publications
National to underserved areas, credit unions highlighting how credit unions serve
Credit could be doing even more to serve underserved members
Union lower-income Americans.
Administration (NCUA) has issued a The banking industry has insti- The League also will help South
report on the results of its ‘data col- gated much of the “who credit unions Carolina’s credit unions attest their
lection pilot’ program on service to serve” talk. Yet, their lawsuits and value to members and communities.
members, including those of modest antagonistic work stand in stark con- Early next month, we will send a
means. trast to their own complaints that Credit Union Values assessment tool
Results show that credit unions credit unions are not doing enough – designed to collect and record infor-
are serving the members Congress complaints that are undermined fur- mation on credit union services and
has always intended for credit ther by NCUA’s report. related activity. Then in 2007, we will
unions--middle class, working provide an online method for credit
Americans who live largely paycheck unions to submit news items and
to paycheck. The League will help other service summaries, enabling the
League to assemble and present these
The report also shows the
hypocrisy of bankers’ criticism of South Carolina’s in our publications, post them on our
credit unions for not doing enough
for those of modest means even as
credit unions website, and leverage them in other
bankers erect barriers to credit union attest their value The League and CUNA have pre-
service to those people. pared these resources for strategic
Report details indicate that: use at your discretion, whether as a
and communities. basis for press releases, in an infor-
60 percent of credit union mem- mational piece to leave with elected
bers have family income below and public officials, or in any other
$60,000 and 82 percent of credit union To help you place the NCUA method you prefer.
members have family income below report into context, the League and British Prime Minister Benjamin
$75,000. CUNA have prepared online links to Disraeli once gave this advice to a
a number of tools. These are avail- new Member of Parliament: “For the
Over the last 100-plus years,
able for use by your management, first six months you should only lis-
credit unions have served working
staff, volunteers, members, and even ten and not become involved in the
Americans just as Congress has
the public should the need arise. debate.”
Among the tools are: “But my colleagues will wonder
Credit unions, if given the why I do not speak!” the fledgling
authority, can and do increase their Message points on credit union member protested.
service to underserved members. service to modest means members, “Better they should wonder why
and on executive compensation at you do not, that why you do!”
credit unions (both issues were the replied Disraeli.
unions tend to serve more of the
subject of the data collection) The NCUA followed that princi-
underserved over time--20 percent of
Fact sheets on who credit unions ple in their work, listening and
federal credit unions now have com-
serve; who Congress says credit researching the question before pre-
munity charters, but only 9 percent of
unions should serve; products and senting its response to Congress. The
the credit unions that have converted
services offered to modest means results show credit unions should
to community charters have had
members by credit unions, what oth- stay the course--continuing to fulfill
those charters for more than five
ers are saying about credit union ser- the mission Congress and their mem-
vice, and credit union lending to low- bers have set--serving working
These findings show that if and moderate-income members Americans and improving the quality
Congress would remove the barriers Recent news articles from of life for all.
SC Federal’s holiday shoe
drive ties-in with brand CALENDAR
Charleston, SC - South Carolina Federal Credit
Union, the largest credit union in the state, is running a
major initiative to provide thousands of shoes to under-
privileged people this holiday season.
Devised to address an often-overlooked need among
South Carolina’s young citizens, the shoe drive comple- NASCUS BSA CONFERENCE
ments South Carolina Federal’s new branding theme, SAN DIEGO, CA
“Life Simplified.” Recognizing that the credit union’s
members come from all walks of life, a new campaign
uses the metaphor of “shoes” to convey how SC Federal 4 CAROLINAS CREDIT UNION
has supported its members at every step of their lives. FAMILY TRUST FCU TRAINING CENTER
With the shoe drive, SC Federal is meeting the needs ROCK HILL, SC
of some who might otherwise be unable to help them- WWW.SCCUL.ORG/EDUCATION_REG/
selves. Many of young South Carolinians are severely DEC06LENDINGCOUNCIL.PHP
impacted by low income levels, and the state has a higher
percentage of residents below the poverty line than the SAFE DEPOSIT WORKSHOP
national average. EDWARD L. BATEMAN CENTER
From November 1 through December 15, South COLUMBIA, SC
Carolina Federal will accept donations of “gently used” WWW.SCCUL.ORG/EDUCATION_REG/
shoes at its branches so they can be cleaned and distrib- 06SAFEDEPOSITWS.PHP
uted to needy South Carolina residents.
For every two pairs of shoes collected during the
campaign, South Carolina Federal will purchase one new
pair of shoes for disadvantaged children in the area, up
to 5,000 pairs.
30- CUNA COMPLIANCE
“(S)imple things make a huge difference in a person’s FUNDAMENTALS ESCHOOL
life,” said Scott Woods, the North Charleston-based cred- TRAINING.CUNA.ORG/CALENDAR.PHP
it union’s president and CEO. “By hosting this shoe
drive, we put our theme of ‘One Step Ahead’ into action,
and serve a real community need by helping thousands
of disadvantaged citizens.”
All 23 South Carolina Federal branches and its head-
quarters are participating. Each branch will serve as a next year...
drop-off site with specially marked collection bins to
gather donated shoes. Credit unions interested in the South Carolina Credit
South Carolina Federal has partnered with Union League’s political activities should save the
Charleston and Columbia-area branches of the Salvation dates for two “Hike the Hill” trips in 2007. The League
Army to implement this program. will lead its first contingent to Washington, DC on
“We’re grateful for the opportunity to help the needy May 15-17. The second trip of the year is planned for
citizens of South Carolina through this effort,” said September 18-20.
Captain Linda Thornhill of The Salvation Army in For each trip, Tuesdays and Thursdays are travel
Charleston. “Community outreach programs such as days. Wednesdays typically include a briefing at
South Carolina Federal’s will make all the difference this Credit Union National Association (CUNA) head-
holiday season to people in need.” quarters, visits to Congressional offices on Capitol
Look for more on the credit union’s new campaign Hill, a reception at Credit Union House, and a group
and enhanced brand identity in the December League dinner.
If you have questions about “Hike the Hill” events,
More than 140,000 members own and belong to South Carolina contact SCCUL Director of Governmental Affairs Jim
Federal, which has more than $1 billion in assets. It is a community- Nunamaker (firstname.lastname@example.org) at 800-235-
chartered credit union serving anyone who lives, works, worships or 4290, extension 444 (803-732-8444).
attends school in Dorchester, Berkeley, Charleston, Orangeburg,
Clarendon, Calhoun or Georgetown counties, and most of the Columbia
Family Trust hosts “Real Life... Real Money”
Family Trust FCU hosted “Real Life…Real Money”, a free finan-
cial education event for teens and young adults, on Saturday,
More than forty teens and young adults attended the workshop
covering online banking, security and identity theft prevention,
loans, credit, budgeting, check writing, ATM tips, credit versus
debit, and investing.
Participants were able to open checking and savings accounts
and received coaching on how to properly manage their new
account. Attendees also enjoyed music and food and registered for
a chance to win cash prizes.
Clemson Road service center grand opening
Palmetto Citizens Federal Credit Union celebrated the grand
opening of its newest service center on Thursday, October 26. The
service center is located at 2651 Clemson Road in Northeast
Columbia, 1.5 miles off of the I-77 Killian Road exit next to Killian
It is a full-service operation with six drive-up teller lanes, six
teller stations, lock boxes, and a drive- up ATM.
Palmetto Citizens now has ten service centers in addition to the
call center to serve their members.
Palmetto Citizens walks for breast cancer
At the First Ladies’ Walk for Life... Steps Against Breast Cancer
Walk on Saturday, October 7, Palmetto Citizens FCU was recog-
nized for the fourth consecutive year as the second largest team
with 240 members and contributions totaling over $4,800.
To raise money, PCFCU sold pink ribbons, enamel ribbons and
car magnets throughout October in their service centers. The credit
union also hosted 30-minute informational sessions for staff mem-
bers about the importance of early detection in the fight against
SCU named one of SC’s best places to work
The recent Best Places to Work in South Carolina survey con-
ducted by the Society for Human Resource Management (SHRM) -
South Carolina State Council, ranked State Credit Union fifth
among employers throughout the state. The credit union was
among only 15 companies honored in the program. The selection
process was based on an evaluation of employee policies and pro-
cedures and results of a 65-question employee survey.
“This award...will enable SCU to develop and implement the
strategic steps necessary to continue to improve our workplace and
service to our members,” said Merida Rabon, HR director at SCU.
Lee C. Gardner, Jr.
Chairman of the Board of Directors
South Carolina Credit Union League & Affiliates
I began my credit union for print and mail. We simply cannot depend on these busi-
career in 1978 as the assistant man- ness lines to fund other League services as we have in the
ager of what was then the past.
Corporate Central Credit Union, an Since its inception, the League has provided certain ser-
affiliate of the South Carolina vices at no cost over and above the membership dues. These
Credit Union League. There were were generally considered “dues-supported” services. The
just over 200 credit unions in the state at that time, and the truth today is the dues total from a shrinking number of
largest one was not quite $50 million in assets. credit unions is barely enough to pay the cost of advocacy.
The League and its affiliate organizations were the hub Traditional cash-cows are much closer to break-even,
of support on which all credit unions depended. League ser- meaning the gross income is adequate only to cover the
vices included education, corporate financial services, data costs. Once all these pieces are in place, the completed puz-
processing, field support and political advocacy. At that zle reveals the real picture: These member services, many
time, the Annual Meeting and one fall conference were that have been considered dues-supported in the past, are
about the extent of educational events, and advocacy was a actually being provided at a financial loss to the League.
part-time job. The SCCUL Board of Directors recognizes that we are at
Needless to say, a great deal has changed. Today we a transitional point in the history of the League, and we are
have two South Carolina credit unions that have exceeded facing many new challenges. Over the coming year, we will
$1 billion in assets and several that are near the $500,000,000 identify the market value of many of the professional ser-
mark. Credit unions with less than $50 million are now con- vices provided by the League. Among them are strategic
sidered the small credit unions, and the total number of planning and management surveys that require much time
credit unions has been reduced to only 86. There is a much and resources. It is not our intent to generate new profits
greater need for education, advocacy, and operations sup- from these services, but to adequately cover the costs. At the
port, all of which are more sophisticated and obviously same time, the League board remains firmly committed to
more costly. supporting any credit union that needs assistance and may
These changes have brought about new challenges with not be capable of paying.
regard to the revenue necessary to cover expenses associat- As we make this transition, the League is fortunate to
ed with delivering member services. have a reasonable amount of retained capital. This will bene-
Throughout the 1980’s and 1990’s, we depended heavily fit us as we make the necessary changes to provide the sup-
on the income from share draft processing and print and port credit unions need. It also allows us to provide credit
mail. Industry-wide changes have now rendered these busi- unions some assurance of a slow transition to fee-based ser-
ness lines less robust than they have been in the past. vices.
The explosive advent of debit, ACH and electronic bill I encourage credit unions to always seek the assistance
pay is quickly and materially reducing the number of paper and services provided by our League. Your feedback is valu-
checks for collection. Electronic banking, e-statements, and able as we chart a strategic future for the League and its
other forms of electronic delivery are reducing the demand member credit unions.
CU Health Care Assn. of SC offers health insurance savings
As the time for health insurance renewals rolls around, this is a great time to consider the Credit Union Health Care
Association Plan. Offered by Blue Cross/Blue Shield of SC for members of the South Carolina Credit Union League, the
Association Plan was conceived in an effort to obtain lower insurance rates by “pooling” the employees of numerous credit
unions. The Association Plan is an excellent resource for obtaining more favorable rates.
The Association Plan offers four separate plans, from a very low deductible to a large deductible. As part of the applica-
tion process, each credit union is rated on a tiered system based upon demographic information and answers to a group
During its first year, the Credit Union Health Care Association of SC (CUHCASC) has grown to total of eight groups
with just over 100 insured individuals. To continue to obtain maximum benefit of pooled resources, more participants need
to be added so that the plan will grow at a steady rate over the next few years. As your credit union receives quotes for first
of year renewals, take the opportunity to obtain a quote from the Association Plan.
To obtain a quote or for more information about how your credit union can join the Association, please contact Andrew
Rothschild (404-875-5812) if your group has more than twenty employees or Pollyanna Sailor (800-356-2644 ext.7479) if your
group has less than twenty employees.
‘06 Desjardins, from Page 1
tional time to “fun” days, SPC activities
demonstrated the significant value the State Credit
credit union sees in youth and young Union’s Suzette
adults. Staff assisted with scholarship Morganelli leads
presentations, acted as “Principals for a live-to-tape
the Day,” and promoted SPC’s newest workshop on the
services for younger members. NEFE High School
Specifically, SPC’s Youth Week cel- Financial Planning
ebration from April 24-28, 2006 was a
primary vehicle for informing teachers,
officials, elected officials, the press, and
public about the problem of financial Benefits of membership in either ed in the Instructional Television and
illiteracy. By first sending a letter to club include SPC’s annual “Got Any Staff Development Resources booklet
each high school within the tri-county A’s” reward program. Students are distributed through the South Carolina
area, SPC secured invitations to pro- rewarded $2.00 for each “A” on their Department of Education. The video
vide financial education that week to report card up to a maximum of $10.00. runs monthly during each school year.
more than 200 students at Hartsville Rewards are deposited into student To further engage and guide teach-
High School and Mayo High School. accounts upon receipt of each one’s ers, SCU proposed to SCETV a six-unit
Throughout the week, children 0- year-end report card, reinforcing SPC’s “Train the Trainer” course. The credit
17 were encouraged to make deposits. message that saving and education pay union then helped transition the work-
For every $20 deposited, a child dividends. shop to an ongoing, comprehensive
received an entry into a drawing for a “NEFE Financial Literacy Course” by
$100 Toys-R-Us gift certificate. The State Credit Union adding a viewer’s log, written assign-
result was more than $34,000 in $200M+ in assets ments, and final evaluation. Today,
deposits to youth accounts. Week-long Teacher-Focused Crusade educators completing the course earn
festivities featured daily themes and a twenty renewal recertification credits
Friday party and live radio broadcast. When the South Carolina Financial toward the SC professional educator’s
SPC also participated in the Literacy Act was signed in April 2005, certificate. Following an introductory
Greater Darlington Chamber of State Credit Union recognized educa- facilitation, educators can view the six
Commerce “Reality Check,” helping tors’ need for an easy-to-implement video units through special ITV broad-
more than 200 Darlington High School financial education program. It casts to all schools.
ninth-graders experience “real life” responded with a strategy to raise Another incentive is the credit
events such as career choices, purchas- awareness of the mandate, promote the union’s annual scholarship and award
ing a home and auto, paying monthly free National Endowment for Financial program for exemplary participation in
utilities, and more. Education’s High School Financial the NEFE program. SCU awards $1,000
The credit union continually pro- Planning Program (NEFE HSFPP), to an outstanding student, and $500
motes the NEFE High School Financial make “Train-the-Trainer” programs each to an outstanding teacher and an
Planning Program through classroom accessible to educators statewide, and outstanding middle or high school.
instruction and while networking with provide incentives. SCU employed various promotion-
chamber and civic organizations. SPC SCU Director of Financial al methods, including: attendance,
provided material and resources to Counseling and Education Suzette video presentations, and speaking
several schools, private and public, Morganelli spearheaded efforts. With engagements at education-based con-
during the year. SCETV, she produced an “Introduction ferences; enhancements to the credit
Also, the credit union provides to NEFE” video imparting to educators union, SCETV, and educational organi-
educational materials quarterly to the need, importance, benefits, and zation websites; publications for the
younger members, highlighting the legal mandate for financial education educator community; and radio inter-
value of saving and credit union mem- in South Carolina. The video detailed views for SC Business Review and
bership. Members ages 6-12 are part of the law’s requirements while inform- Speaking of Schools programs on
the Savasaurus Club, in which they ing teachers of the free NEFE High National Public Radio (NPR).
receive a “Brontobits” newsletter and School Financial Planning Program. SCU’s impact is evident in the
have access to a custom web page In August 2005, the video was number of NEFE instruction manuals
within the credit union’s website. Teen broadcast through ETV’s Instructional ordered by South Carolina educators.
members ages 13-17 are known collec- Television network to all middle and The total grew from 17,570 in 2004 to
tively as Teen Scene, and they have high school classrooms statewide and 24,650 in 2005—a 40% increase that
access to their own customized web was made accessible through ETV and puts South Carolina seventh nationally
page on SPC’s site. SCU websites. Information was includ- in total materials ordered since 2001.
Foundation awards three more grants to SC organizations
The Carolinas Credit Union Girls Club of Sumter has served dis- offers community education. It is the
Foundation (CCUF) recently approved advantaged youth ages 6-18 for more only provider of these services in the
three new proposals for Micro- than forty years. It has relocated to a area, which has more than 185,000 resi-
Community Grant funding for organi- new site with more room for new par- dents.
zations in South Carolina. ticipants it hopes to attract. The organi- CODA’s specific need is a net-
The Foundation board met and zation serves 29 schools, with atten- worked data management system and
approved the applications at its dance of 150 youth five days per week. improved materials for the public. The
October 25 meeting. More than 25% of club members live in organization’s current record-keeping
The Child Abuse Prevention poverty, and more than 65% are in sin- system is obsolete, past client’s files are
Association (CAPA) of Beaufort gle-parent homes. stored off-site, and informational mate-
County was founded in 1980 to pro- According to Benjamin Bailey, rials are inconsistent.
vide prevention and intervention pro- executive director of the Salvation With its $12,500 grant, CODA will
grams designed to break the cycle of Army Boys and Girls Club of Sumter, implement a system that provides
child abuse and help victims. CAPA the organization plans to use the immediate access to vital information.
programs help residents of five coun- $20,000 Micro-Community Grant for It will also update stationery,
ties in South Carolina and require sig- tables, chairs, and equipment in its brochures, and other printed material
nificant volunteer support. computer learning center and recre- to make CODA more recognizable to
With its $20,000 grant, CAPA will ation area. those it exists to serve.
continue school-based safety and char- Citizens Opposed to Domestic CCUF Micro-Community Grants
acter development programs for chil- Abuse (CODA) provides victims of are donations to community organiza-
dren, teen pregnancy prevention pro- domestic abuse safe and secure shelter, tions and charities that support causes
grams, and related work. The pro- individual and group counseling, legal consistent credit unions’ “people help-
grams are currently at a net loss of representation and court advocacy, ing people” philosophy. Grant requests
$30,000, which CAPA is working to case management, services for chil- come from credit unions throughout
recoup in 2007 through an endowment dren, and outreach. It serves citizens of North and South Carolina. Visit
and other fundraising. Beaufort, Colleton, Hampton and www.carolinasfoundation.org for
The Salvation Army Boys and Jasper Counties, where CODA also details.
CUNA Council seeks marketing,
business development ‘best practices’
MADISON, Wis. - Nominees are now being sought for rebranding, sales culture implementation, disaster plan
the 2007 Best Practices Awards sponsored by the CUNA activation, or leveraging of the marketing central
Marketing & Business Development Council. information files for improved marketing results.
The awards recognize outstanding new marketing and
business development approaches with potential for univer- A panel of judges will select award winners, without
sal application across the credit union movement. Award regard to asset size, based on strategy, process, application,
categories are: and results.
Entry materials for these awards must be received by
Business Development - Beyond normal activities, this Monday, January 8, 2007. Details and entry forms are avail-
category details how the credit union further developed able online at www.cunamarketingcouncil.org under the
the relationship between itself and sponsor company(s), "Events" pull-down menu.
their employees, or the community it serves. Award recipients must be present at the 14th annual
CUNA Marketing & Business Development Council
Community Outreach and/or Political Advocacy - Conference March 14-17 in Las Vegas to deliver a short
Submissions should describe the credit union's PowerPoint presentation on their winning entries. Winners
community relations strategy or politically-themed also will receive a $300 honorarium.
event or program advocating a political candidate For more information on entry procedures, contact
or the credit union movement. Bobbi Bischke, CUNA Council Administration, at 800-356-
9655, extension 4018, or by e-mail at email@example.com.
Best Practice Miscellaneous - open to any successful General questions pertaining to the Best Practices Awards
event, program, or initiative led by the marketing should be directed to Carol Payne, director of communica-
and/or business development department. Examples tions and marketing for the California Credit Union League,
include, but are not limited to: name change or at 909-581-3237, or by e-mail at firstname.lastname@example.org.
Shaping your ALCO Committee MemberPay
one of two
What is the role of an Asset Liability Committee (ALCO)?
The purpose of the ALCO is to give direction to management. Using
interest rate risk reports, the committee should review the current situation When was the last time you
and steer the path of the credit union. ALCO guidance will enable manage- reviewed the listing of your credit
ment to make informed decisions for the betterment of the organization. union’s products and services?
Reports should be analyzed for the current ALM situation and the proposed Did that review turn up an elec-
strategies the committee wants to implement. The process goal is risk tronic bill payment solution (EBP)?
assessment and program modification toward the desired level of risk. And if so, is it one the staff and mem-
bership use and are happy with?
How do ALCO committee members know the desired level of risk? If you answered “No” to either
question, keep reading.
The ALCO committee should be involved in setting the interest rate risk In our endeavor to provide a vari-
limitations for the credit union. Before the group is able to set those limita- ety of products to our member credit
tions, it should be appropriately trained in interest rate risk management. unions, First Carolina offers two EBP
Once training is complete and the committee is ready to proceed , the solutions, MemberPay and MY CU
NCUA gives general guidance in Chapter 13 of the Examiners Guide. Service. This month, we will highlight
Knowledge from training and NCUA guidance should aide in setting the MemberPay.
risk limitations. MemberPay offers credit unions a
Regardless of outside opinions, interest rate risk parameters are depen- full-scale, service-bureau bill payment
dent on the risk tolerance level of the ALCO and are subject to the unique solution. It includes intuitive naviga-
characteristics of the credit union. These limitations should be used by the tion on the front end and an efficient
committee to ensure the established parameters are maintained to control payment processing service on the
interest rate risk. back end, enabling credit union mem-
In addition to interest rate risk, the ALCO’s other responsibilities should bers to pay virtually anyone online.
include setting the strategic guidelines for the investment portfolio and liq- With MemberPay, credit unions
uidity management--two key elements of interest rate risk management to can add a link from their Web site to
incorporate with ALCO meetings. Understanding interest rate risk concepts connect members to enroll online and
and implementing controls for these risks are vital to every credit union. begin paying bills. Multiple payment
options, a personal payee database,
What should be covered during an ALCO meeting? transaction history, status updates, a
secure message center, and an admin-
Once committee goals, training and limits are established, an ALCO istration system are included with
meeting might typically follow this example of a basic agenda: MemberPay.
For more information on
• Review, discuss and approve previous minutes from MemberPay or to schedule a product
the ALCO meeting demonstration, contact Wanda Downs
• Open discussion about the economic outlook (email@example.com) at 800-585-
• Analyze current risk and performance 4317, extension 3276, or Jill Bennett
• Review and revise current plans and projections (firstname.lastname@example.org) at exten-
• Other issues and discussion topics sion 3253.
Although the ALCO committee has a significant responsibility, it is an
essential aspect of the credit union’s management. There are many areas to
Test your credit union knowledge!
learn, but any ALCO can be effective with the proper training. Start today to Be the first to correctly answer
build an ALCO that will help your credit union grow. FCCCU’s online quiz each Monday and you’ll
For assistance with your ALCO or for more about First Carolina’s receive a First Carolina leather jotter and
Internet-based ALM model, contact ALM Analysts Jennifer Lachance (ext. pen.
3220) or Melissa Scott at 800-585-4317 (ext. 3255). Submit your own quiz question to Kecia
Brooks at email@example.com.
w w w . f i r s t c a r o l i n a . o r g
Selling loans to Charlie Mac secures liquidity
and member relationships
Did you know that First Carolina making it a very cost-effective method
offers an alternative liquidity resource for obtaining liquidity. Plus, your cred- * Off-balance sheet accounting
through the sale of loans to the sec- it union ideally will get a gain-on-sale treatment is established for
ondary market? to offset the opportunity cost of the the loans;
Charlie Mac is a CUSO that pur- coupon, as well as the ability to book a
First Carolina offers two products
chases jumbo mortgage and auto loans servicing asset and realize a servicing
for selling loans to Charlie Mac:
originated by credit unions. yield on the credit union portfolio.
JumboExpress® for jumbo mortgages
First Carolina partners with Other benefits of selling loans to
and CARPooL® for auto loans.
Charlie Mac primarily because it focus- Charlie Mac include:
Through both of these programs,
es on helping credit unions maintain
* Interest-rate, credit and you can sell loans as servicing-retained
member relationships. Charlie Mac’s
liquidity risk are lowered; or servicing-released with customized
flexible servicing options keep the ser-
brand-name servicing. Plus, you can
vicing relationship with your credit * Room created for new loans
sell loans in bulk or loan-by-loan.
union, instead of transferring it to and revenue growth
For more information or for rates,
another institution where your mem- opportunities;
contact First Carolina Senior Vice
bers might be cross-sold other products * Rates are competitive; President and Chief Investment Officer
* Credit unions can withstand Fred Eisel at 800-585-4317 extension
There is no up-front cost with sell-
increased regulatory scrutiny 3284 or by e-mail to feisel@firstcaroli-
ing loans on the secondary market,
of ALM practices; and na.org, or visit www.charliemac.org.
Corporates team up for ACH conference
Credit union professionals responsible for payment systems activities now have a new opportunity to obtain important
updates and information on ACH operations: The Payment Systems Conference, a joint effort sponsored by First Carolina
Corporate Credit Union and VACORP Federal Credit Union.
More than 70 representatives of 51 credit unions in Virginia, North Carolina and South Carolina attended the inaugural
conference October 24-25 in Greensboro, N.C.
“The interest in this first conference reinforces our
belief that there is a need among many of our members,
particularly payment systems professionals, for valu-
able news and education regarding ACH operations,”
said David Brehmer, president/CEO of First Carolina.
A wide variety of credit union professionals,
including compliance officers, auditors and staff from
treasury and ACH departments, participated in the
Speakers from NACHA, U.S. Central and EastPay
delivered presentations on ACH basics, origination ser-
vices, exception item processing, ACH policies and pro-
cedures, and audit controls and compliance.
According to keynote speaker Nancy Grant, senior
director of research at NACHA, the future of payment
systems includes “exploring and implementing
approaches that enable financial institutions to make
the characteristics and value of ACH payments recog-
nizable to their members in a clear, consistent, and
cohesive manner across all transaction types.”
Feedback from the conference was very positive, Through October, First Carolina certificates continue to
and plans are already underway for the 2007 event. outpace Treasuries and yield just above agencies.
People ...in the credit union movement
The South Carolina Credit Union League & Affiliates Karen Hartley has been hired as a
is pleased to welcome three new employees. branch manager at Family Trust Federal
Kevin Dittman joins the staff of Credit Union. She is a graduate of
Palmetto Cooperative Services, Inc. as Southeastern Region Credit Union
vice president of print and mail opera- School of Management (SRCUS),
tions. He comes from Amspak, the University of Georgia and she is current-
largest producer of spools and wheels ly attending York Technical College.
for the ribbon and textile industry, Hartley has twenty-six years of
where he spent eighteen years working financial service experience, having served a Charlotte,
as printing department supervisor, Dittman NC-based credit union as vice president of business
printing and graphics manager, and development and branch manager.
plant production manager. Chris Washington has been hired as
His education includes pressmanship, advanced litho- vice president of training & HR develop-
graphy, color management, and advanced flexography ment for Family Trust. He brings with
certificates from Clemson University and an Associate’s him more than seven years of training
degree in business management from Stratford School of and development experience and nine
Business. years of financial services experience.
Tonya Falkosky has been hired as administrative Washington has a Bachelor of Arts
assistant for the League. She brings thir- degree from South Carolina State Washington
teen years of customer service experi- University. He has been involved with
ence, working for apartment communi- Family Trust for many years, having volunteered on the
ties and leasing companies as a leasing Family Trust Joint Advisory Board and the Supervisory
consultant, assistant manager, executive Committee.
assistant, and a marketing and leasing Tyeshia Miller has been promoted to
specialist. assistant vice president of fraud & risk
Falkosky was most recently with Falkosky management. Miller joined Family Trust
Intermark Management Corporation, a in 2002 as a loan officer and was promot-
residential property management company. She holds an ed to branch manger in 2003.
Associate’s degree in business from Midlands Technical Miller holds a Bachelor of Science
College. degree in sociology and criminal justice
Pamela Jennings joins the League
from Bowie State University in
staff as an auditor. Prior to joining the Maryland. She also has a degree in public service from
League, she worked with NetBank for Central Carolina Technical College in Sumter.
nine years as quality control auditor and
internal control auditor/team leader. Rick Curry has recently accepted the
Jennings also worked with Wachovia as position of mortgage manager at
a bank reconciliation specialist and loan Palmetto Citizens Federal Credit Union.
Jennings processor. Curry, a graduate of Youngstown State
Jennings holds an Associate’s degree in computer sci- University in Ohio, earned a Bachelor’s
ence, a Bachelor of Science in business administration, and degree in business administration. He
a Master of Science in management, all from Southern has been in the financial services indus-
Wesleyan University. try more than thirty years, with more Curry
than fifteen years of management experience.
Carolina Trust Federal Credit Union Carol Hall has joined Palmetto Citizens FCU as ser-
welcomes Kathleen Hawn as director of vice center manager. She graduated from the University
training and human resources. Hawn of South Carolina with degrees in
brings extensive HR and training experi- finance and management. Hall brings
ence to the credit union, having previ- eighteen years of experience from BB&T
ously managed training/HR for Time and High Point Bank and Trust in North
Warner Cable, Polo Ralph Lauren, and Carolina.
Levi’s Inc. Hawn also served on the Prior to relocating to South Carolina,
YMCA Board of Directors and looks forward to rejoining Hall was a member of the Junior League
local community efforts and organizations. Hall
of High Point and served as Assistant
Treasurer from 2005-2006.
The Honor Roll CU Security Certificate
Advanced Lending Certificate Andrea Quinn Family Trust FCU Member Services Level II Certificate
Elizabeth Byars Founders FCU
Elizabeth Byars Founders FCU Emily Williams Founders FCU Elizabeth Byars Founders FCU
Melissa Hedrick Founders FCU Kellie Shugart Family Trust FCU Fannie Booker SRP FCU
Patty Finley Anderson FCU Sarah Dorsey Founders FCU Jane Wheelis SAFE FCU
Richard Heaton SRP FCU Tammy Blackwell Anderson FCU Teague Poston Founders FCU
Teresa Moore Anderson FCU Thomas Hardin Founders FCU
Consumer Lending Certificate
CU Technology Certificate Professional Development Certificate
Angela Warren Carolina Foothills FCU
Atreta Stinson Amy McGill
Family Trust FCU Anderson FCU Abbe Adams Founders FCU
Kimberly Fowler Daniel Parga
Founders FCU Palmetto Citizens FCU Lisa Gaytko Founders FCU
Laura Jennings Dawn Beard
Founders FCU Carolina Trust FCU
Martha Truesdale Elizabeth Byars
Founders FCU Founders FCU Roy F. Bergengren Award
Sharon Mobley Erin Harper
Founders FCU Founders FCU
Jacqueline Williams Anderson FCU Thomas Jones Palmetto Citizens FCU
Credit Committee Award Lindsey Deerman Founders FCU
Melissa Hedrick Founders FCU Sapphire Award
James Burgess Family Trust FCU Thomas Hardin Founders FCU
Keli Penn SAFE FCU
Credit Union Leadership Award Financial Management Certificate
Savings Plus Certificate
Joe Bolchoz South Carolina FCU Abbe Adams Founders FCU
Karen Harris Carolina Foothills FCU Cassie Laney Founders FCU
Cassie Laney Founders FCU
Thomas Jones Palmetto Citizens FCU Elizabeth Byars Founders FCU
Dreama Cherry Family Trust FCU
Miranda McGuinness SAFE FCU
Elizabeth Byars Founders FCU
CU Accounting Certificate Shirley Reid Founders FCU
Jane Murphy Anderson FCU
Stephanie Capelle Founders FCU
Shirley Cathcart Family Trust FCU
Heather Pennington SRP FCU
Jamie Roof Founders FCU Loan Officer Certificate Spanish for Tellers Module
Jennifer Duncan Anderson FCU
Kimberly Fowler Founders FCU Adam Barker Spartanburg Regional FCU
Leslie Ott South Carolina FCU
Laura Jennings Founders FCU Cassie Laney Founders FCU
Elizabeth Byars Founders FCU
Tabitha Melton Health Facilities FCU Technology Award
Tara Swancey Carolina Employees CU Emily Williams Founders FCU
Tonya Keller Founders FCU Melissa Hedrick Founders FCU
Lana Hefner Palmetto Citizens FCU
Stephanie Capelle Founders FCU
Thomas Jones Palmetto Citizens FCU
CU Sales Certificate Thomas Hardin Founders FCU
Member Services Certificate Washington Award
Crystal Morrow Founders FCU
Dawn Shuler Founders FCU Abbe Adams Founders FCU
Keli Penn SAFE FCU Betsy Campos Family Trust FCU
Elizabeth Byars Founders FCU
Marites Holder Founders FCU Denise Wagner Founders FCU
Keli Penn SAFE FCU
Melissa Hedrick Founders FCU Frankie Turner Community 1 FCU
Stephanie Thorpe Carolina Trust FCU
Kimberly Fowler Founders FCU
Lindsey Deerman Founders FCU
Sherry Spann May Plant CU
Susan Hallman Family Trust FCU
Credit Union Development firstname.lastname@example.org
Join the League at ‘07 GAC
Register today for the 2007 Governmental Affairs Conference at http://www.cuna.org/events/gac07/. For hotel
reservations or other questions about the event, contact Linda Martin (email@example.com) at 800-235-4290, ext. 411.
L e a g u e R e v i e w i s p u b l i s h e d m o n t h l y f o r m e m b e r s o f t h e S ou t h
L ea g u e R e v i e w
Ca ro l i n a Cr e d i t U n i o n L e a gu e & A f f i l i a t e s.
P o s t O f f i c e B o x 1 7 8 7 , C ol u m b i a , S C 2 9 2 0 2
G a r r y L . P a r k s , P r e s i d e n t / C h i e f E x ec u t i v e O f f i c er , p h o n e/ 8 0 0 -2 3 5- 4 29 0 f a x / 80 3 -7 3 2- 4 26 8
L i e u t e n a n t G e n e r a l , U . S . M a r in e C o r p s ( R e t . ) e - m a i l / b p u g h @ s c cu l . o r g w e b / w w w . s c c u l .o r g
B r a n d on P u g h , E d i t or
Innovation key to credit unions’ lending success
Lending Council attendees told to focus on selling the lending experience
INDIAN WELLS, CA -- Credit buying is much different from just a
unions wanting to elevate their lending decade ago. Traditional auto lending
programs must differentiate them- has been direct lending, but currently
selves by being innovative beyond 96 percent of credit union loan growth
product offerings, a CUNA Mutual comes from indirect lending and 70
Group lending expert told credit union percent of member growth is coming in
leaders attending the CUNA Lending through indirect lending. Credit unions
Council’s annual conference Tuesday, need to create a total auto-buying expe-
November 14. rience for their members.
“Credit unions and other smaller “Don’t think it’s out of your hands
financial institutions are challenged by because the lending is done at the deal-
large, global companies for lending er,” Tharp said. “Have the latest E-con-
dollars,” said Judy Tharp, vice presi- tracting automation, make processing
dent, Lending Solution Development available 24/7, and establish dealer
for CUNA Mutual. “It’s difficult to relationships .” CUNA Mutual’s Judy Tharp discussed innova-
compete with giants like Citi Group Technology Credit Union, San Jose, tive approaches for a successful lending pro-
and Wells Fargo, or dot-coms such as CA, tries to reach members before they gram at CUNA's Lending Council conference.
E*Trade and LendingTree, and even ever get to a dealer. The credit union
retailers like Wal-Mart. They all offer devotes a number of pages on its Web Allegacy FCU, Winston-Salem, NC,
deep-pocket solutions the moment site to the vehicle-buying experience, created a real estate CUSO developing
your member is ready to buy.” promoting 100-percent financing on its own real estate community, Tharp
Tharp said products, much like a most vehicles, a Web-based car buying noted.
commodity, tend to be the same no locator/consultant, dealer specials, and Near-prime lending has the biggest
matter who offers them, so credit discounts on green-car loans. upside, Tharp said. She noted recent
unions must differentiate themselves. Vehicle lending represents one- research indicates 42 percent of the
She said credit unions should move third of credit unions’ lending portfo- population has a credit score under
more toward selling the experience lios and they do more than 15 percent 700, which is generally considered the
rather than just the product: being at of the auto lending in the United States cutoff for prime lending.
the point-of-sale; lending deeper according to Callahan & Associates Twenty-eight percent fall into the
beyond the best credit scores; and com- research. Conversely, credit unions near-prime category. Prime borrowers
pleting transactions quickly through have only two percent of all mortgages, typically don’t generate as much return
use of technologies such as online deci- despite credit union members compris- and sub-prime borrowers may be too
sioning. ing 30 percent of the population. risky, but Tharp said near-prime bor-
Marketing innovation is crucial, Tharp noted mortgages are a con- rowers are a “sweet spot” of profitabili-
Tharp said. She cited a well-known tinuing growth opportunity, and with ty if credit unions follow best practices.
retailer that has grown from one store U.S. homeownership rates apparently To succeed in today’s lending envi-
to more than 11,000 stores worldwide stalled after a decade of growth, it is ronment, Tharp said a credit union
in 20 years, one that adds new stores more essential than ever to find busi- must have a lending strategy tied to the
daily. It had $6 billion in revenue in ness. credit union’s overall business strategy,
2005 and has 40 million customers each “Credit unions have more expertise develop and execute a lending action
week--and the product is coffee. Tharp with refinances, than new-purchase plan, and move from just offering
said Starbucks has done a great job in mortgages,” Tharp said. “With Realtors products to delivering a total buying
converting a commodity product sale controlling 70 percent of all new-mort- experience.
into the coffee experience through gage transactions, it’s important for
music, internet connections, newspa- credit unions to develop more pur- CUNA Mutual Group is the leading
pers and comfortable sofas. chase-money expertise and business provider of financial services to credit unions
Vehicle lending is a prime target development in the real estate commu- and their members worldwide. For more on the
company, visit www.cunamutual.com.
for selling the experience, but auto nity.”