Friday, June 24, 2016

Legacy Community FCU Buys Naming Rights to UAB Practice Field

Legacy Community Federal Credit Union (Birmingham, AL) purchased the naming rights to the covered practice field at the University of Alabama Birmingham (UAB).

The deal is for $4.2 million and 20 years.

As a result of the sponsorship, Legacy Community has become the official credit union of UAB, and Blazer Football will conduct practice activities at Legacy Pavilion.

The sponsorship allowed UAB to expand its plans for a new football complex.

Read the story.

Read the press release.

CEO Worries that Some CUs Seeking Low-Income Designation for Wrong Reason

According to Credit Union Times, Todd Lane, CEO of California Coast Credit Union (San Diego, CA), is worried that some larger credit unions are seeking a low-income designation for the wrong reason.

Instead of serving low-income members, Lane believes that the real motivation of these credit unions to pursue a low-income designation is to circumvent the member business loan cap of 12.25 percent of assets. Low-income designated credit unions are exempt from the member business loan cap.

Speaking on a panel at the Southern California Credit Union Alliance 2016 Conference, Lane stated:
"Another thing that bothers me is the low-income designation. I’ve seen larger credit unions seek and get low-income designation and I wonder what their real purpose is behind it. I think in some cases, I don't want to paint everyone with a broad brush here, but I've heard – people talk about these things – we hear they're doing it to get around regulation. In particular, the member business lending cap."

Lane noted that this behavior is chipping "away at a credit union being a credit union" and believes that the credit union industry is at the tipping point with regard to taxation.

Read Lane's comments.

Wednesday, June 22, 2016

Bill Would Allow All CUs to Serve Underserved Areas

Reps. Tim Ryan (D-OH) and Donald Norcross (D-NJ) on Tuesday introduced a bill, H.R. 5541 -- the Financial Services for the Underserved Act, that would allow credit unions of all charter types to add underserved areas to their fields of membership.

Rep. Ann Kirkpatrick (R-AZ) has signed on as a cosponsor of the bill.

Currently, only credit unions with multiple-group charters can add underserved areas to their fields of membership.

Monday, June 20, 2016

Two Privately Insured CUs Approved for FHLB Membership

Two privately insured credit unions have been approved for Federal Home Loan Bank (FHLB) membership, according to American Share Insurance (ASI).

FHLB of Indianapolis approved $1.2 billion Beacon Credit Union (Wabash, IN) for membership and FHLB of Chicago approved $785 million Credit Union 1 (Rantoul, IL) for membership.

The FAST Act (H.R. 22), which was enacted in December 2015, authorized that a privately insured credit union could join a FHLB.

ASI has been meeting with seven FHLBs to educate them about private share insurance, privately insured credit unions and American Share’s role in the oversight of privately insured credit unions.

For more information, click here.

Friday, June 17, 2016

Texans CU Emerges from Conservatorship

The National Credit Union Administration (NCUA) returned control of Texans Credit Union (Richardson, TX) to its members.

NCUA placed Texans into conservatorship in April 2011.

NCUA stated that the conservatorship was successful due to the efforts to carefully and deliberately mitigate exposure and risk from troubled assets, improve lending controls, revitalize operations, and improve operating efficiencies.

Texans is the first federally insured credit union to emerge from NCUA conservatorship in 2016.

Read the press release.

Thursday, June 16, 2016

Bill Would Repeal Durbin Amendment

Rep. Randy Neugebauer (R-Texas) introduced legislation, H.R. 5465, to repeal Section 1075 of the Dodd-Frank Act, better known as the Durbin Amendment.

The Durbin Amendment imposed a cap on debit interchange fees charged by banks and credit unions with $10 billion or more in assets.

In introducing the bill, Rep. Neugebauer stated:

"Sen. Dick Durbin (D-Ill.) and the retail lobby sold Congress on the need for debit swipe fee reform under the guise that consumers would see significant savings if the government controlled the price of these transactions. Instead, several studies, including research from the Federal Reserve Bank of Richmond, have definitely shown that consumers have not received any passed-through savings. Some studies have even shown that these price caps have resulted in reduced free checking accounts and higher minimum balances for consumers. Further, some small businesses and those with a high volume of small-dollar transactions are actually fairing worse with the price caps in place – a strange twist for the retail industry, which was lobbying so hard for the Durbin Amendment’s adoption."

Rep. Neugebauer concluded: "This legislation will restore competition in the marketplace, remove arbitrary government price caps, and ensure consumers have affordable access to basic banking services."

This is legislation that both banks and credit unions can support.

Read the press release.

Wednesday, June 15, 2016

Kellogg Community Switches to State Charter

Kellogg Community Federal Credit Union (Battle Creek, MI) switched from a federal to state charter, effective June 1.

By becoming a state chartered credit union, Kellogg Community can expand its field of membership to include 15 Southwestern Michigan counties.

This abandonment of the federal charter will cause the National Credit Union Administration (NCUA) to further push the envelope on field of membership issues, as NCUA competes with the states on membership requirements.

Read the press release.

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