Credit Unions in the News - Idaho Credit Union League

Gem
Gem
Volume 54, No. 1
A Publication of the Idaho Credit Union League
IN THIS ISSUE
NASCUS: State-Chartered Credit Union
System 2
Compliance News 3
Judge Keeps Target Case Alive – 1 Year
4
Later NCUA: State-Level Analysis
Credit Union Loan Growth 5
Same Day Rules Briefing 6
Comprehensive Tax Reform
7
Horizon Credit Union’s Merger Plans
7
Credit Unions in the News
8
January 2015
Credit Unions, Leagues
& CUNA Earn Legislative
Win: IOLTA Bill Now Law
Last month after concerted advocacy efforts, the Senate passed H.R. 3468, the
Credit Union Share Insurance Fund Parity Act, which extends share insurance
coverage to lawyer trust accounts (IOLTA) and other similar trust accounts.
Senate passage of this bill cleared the way for President Obama to sign the bill,
which he did in mid-December.
The next day, NCUA Board Chair Debbie Matz said, “Credit unions now have parity with banks and, effective immediately, can fully insure lawyers’ trust accounts
up to $250,000 for each owner of the funds, which they could not do before. An
attorney who is a member of the credit union where the trust account is opened
now has a choice of financial institutions for that trust account. This enhances
public confidence in both the banking and the credit union systems now that federal share and deposit insurance programs administered by NCUA and the FDIC
are the same.”
Previously, credit unions could not offer the same level of insurance for these
accounts as banks; because not all clients of a lawyer were members of the
credit union that held the trust account. This placed credit unions at a competitive disadvantage because it was impractical to require attorneys to establish
multi-client lawyers’ trust accounts in different credit unions to ensure full share
insurance coverage.
In the grand scheme of things, passage of this legislation may appear to be a
small measure, but in an environment in which fewer than 2% of bills introduced
in Congress are enacted into law, getting this measure through was significant.
When it passed the House Financial Services Committee in November 2013, the
IOLTA bill was the first piece of stand-alone regulatory relief legislation for credit
unions to move through the Committee since 1998.
IDAHO CREDIT UNION LEAGUE
A N D A F F I L I AT E S
© 2014 Idaho Credit Union League
The Gem is a monthly publication of the Idaho
Credit Union League, 2770 Vista Avenue,
Boise, ID 83705
Telephone (208) 343-4841
Fax (208) 343-4869
www.idahocul.org
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Board Chair: Shane Berger, Beehive FCU
President/CEO: Kathy Thomson
Editor: Nancy Bernhard
To be clear, we have seen other credit union measures enacted in recent years
– the ATM placard bill, the CARD Act Fix, the corporate stabilization legislation –
but this was the first bill to be taken through the Committee regular order that
affected only credit unions. It is a small but significant step in the right direction
and a legislative advocacy win.
Our series describing the wide variety of participants in the credit union network continues in this issue of the Gem with a letter from Lucy Ito the new president and CEO of NASCUS. NASCUS plays an integral role in the credit union movement and is
unique among participants in the credit union network because it represents state regulators, as well as state leagues, CUSOs
and others. Read on to learn about the many ways that the organization works to improve the regulatory environment for
state chartered credit unions and at the same time to be a positive influence on the federal charter.
NASCUS: A Bold & Unflinching State-Chartered Credit Union System
By Lucy Ito, NASCUS President and CEO
State credit union regulators formed NASCUS in 1965 to promote the safety and soundness of state-chartered credit unions.
Today, 100 percent of state credit union regulators (46 states) are
NASCUS members as are nearly 200 credit unions from 32 states.
NASCUS members also include 27 dual chartering benefactors representing state leagues, CUSOs, and other system organizations.
As the only organization dedicated to advancing the state credit
union charter and the autonomy of state credit union regulatory agencies, NASCUS is committed to advancing the interests of
American consumers and small businesses—safely and soundly—
through a robust dual charter credit union system.
Placing Positive Pressure on the Federal Credit Union Charter
Following the nation’s 2008 financial crisis and the ensuing Great
Recession, NASCUS has observed that the federal regulatory
environment has become risk-adverse to the point of constraining credit unions’ ability to grow and threatening the long-term
viability of the credit union business model. By leveraging the
dual-charter system, NASCUS places positive, competitive pressure on the federal credit union regulatory regime to maintain an
efficient, effective, and responsive supervisory program. NASCUS
works closely with NCUA to both share information on supervisory
best practices, and to protect the ability of states to offer new and
different approaches to regulation without federal interference. By
safeguarding innovation and choice, NASCUS benefits both state
and federal charters.
Fostering State Regulator Excellence
NASCUS is committed to excellence at the state regulatory level.
First launched in 1987 in the wake of the U.S. savings and thrift
crisis, the NASCUS Accreditation Program administers and assures
quality standards of states’ credit union examination and supervision programs. Modeled on the university accreditation concept,
the program applies national standards of performance to state
credit union regulatory programs. Eighty percent of state-chartered credit union assets (about $120.6 billion) are supervised by
26 NASCUS-accredited state agencies.
Administered by the NASCUS Performance Standards Committee
(PSC), the accreditation process includes disciplined self-evaluation, peer review and ongoing monitoring. State agency accreditation is subject to renewal every five years. This process measures
a state regulatory agency’s ability and resources to effectively
carry out its regulatory and supervisory programs.
Idaho State Credit Unions & the Idaho Department of Finance
Today, Idaho has 27 state-chartered credit unions representing
$3.5 billion in assets. Idaho Central Credit Union and the Idaho
Credit Union League are members of NASCUS.
Credit unions in Idaho enjoy one of the strongest state regulatory
agencies in the country. The Idaho Department of Finance (DOF)
is recognized as one of the most progressive and most respected
state agencies by peer state supervisors.
DOF Director Gavin Gee is a member of the NASCUS PSC, mentioned above, which administers the nationwide accreditation
program for state credit union regulatory agencies. Mary Hughes,
DOF Financial Institutions Bureau Chief, has served as an officer
and a director of NASCUS and is currently an active member of
the NASCUS Legislative & Regulatory Committee. Beginning Jan.
1, at the behest of NASCUS, Ms. Hughes will serve as the NASCUS
liaison to the Federal Financial Institutions Examination Council
(FFIEC). Furthermore, examiners from the Idaho DOF routinely
participate in NCUA-NASCUS working groups to share state credit
union perspectives and to protect states’ positions in the federal-state regulatory dialogue.
2014 Successes
To this day, NASCUS strives to be a leader in the state credit union
system. NASCUS continues to shape the regulatory landscape of
the system by liaising with all federal financial agencies and consultative bodies (CFPB, FDIC, FFIEC, FBIIC, FinCEN, NCUA, OCC,
the Federal Reserve, Treasury, etc.). Moreover, NASCUS represents
the interests of state agencies before Congress and provides education programs for state examiners as well as credit union staff
and volunteers.
NASCUS’ 2014 accomplishments include:
• NASCUS Comments on NCUA Risk-Based Capital Proposal
State regulators and state credit unions collaborated to
articulate a common sense approach—fostering credit union
growth and innovation and preserving safety and soundness.
NASCUS’ first round comment letter [http://nascus.org/Members/findings/NASCUS%20Comment%20Letter-%20PCA;%20
Risk-Based%20Capital.pdf] may serve as a useful reference
tool for the broader credit union system as it prepares for the
forthcoming second round comment period.
• Derivatives Authority
NASCUS persuaded NCUA to limit the final rule to federal
charters, in substance, deferring to state authority for federally-insured state credit unions.
• Unrelated Business Income Tax
After 15 long years, NASCUS together with AACUL, CUNA, &
CUNA Mutual Group, helped secure the IRS final ruling on the
treatment of certain SCU activities such that most CU products are not subject to UBIT, opening the door for refunds to
credit unions for past UBIT payments.
• Cyber Security Conference
NASCUS held the inaugural Credit Union Cyber Security
Symposium—the first of its kind designed specifically for
credit unions. Attended by nearly 100 people, the Symposium
attracted a formidable array of state examiners, state subject
matter experts, federal agencies, credit union CIOs and IT
professionals, attorneys, consultants, and technology service
providers.
• Overhead Transfer Rate
NASCUS met with NCUA Board Member Mark McWatters prior
to the November 2014 NCUA Board meeting at which he expressed his dismay over the increase in NCUA’s 2015 Budget,
the historic climb in the overhead transfer rate (OTR) over
the past several years, and the budgetary process employed
by the Agency. NASCUS met with Board member McWatters
to share facts and trends related to OTR and to outline our
concerns over the OTR methodology and lack of transparency in NCUA’s cost allocation and overall budget process. We
continue to push for opening the OTR methodology to public
comment to assure both transparency and equity in costs
borne by state versus federal credit unions.
Celebrating 50 Years in 2015
On a historical note, I am pleased to share that 2015 is a milestone year for NASCUS. We are turning 50! We cordially invite the
Idaho League, its member credit unions, and the Idaho Department of Finance to join us for the NASCUS State System Summit
& 50th Anniversary which we will celebrate in “The Crescent City,”
New Orleans, Louisiana, October 20-22.
NASCUS’ 2015 Summit will provide plenty of opportunities for
networking with and learning alongside state system counterparts.
Both state- and federally-chartered credit unions will have an
opportunity to review the benefits and constraints of various state
charters and how state charters compare with the federal charter.
Registration for the event is scheduled to open in January 2015.
In closing, NASCUS thanks the Idaho credit union system for its
support of NASCUS and for the outstanding example your state
system provides to other states and to the nation.
For more information about NASCUS, please visit www.nascus.org.
2
Compliance News
The Idaho Credit Union League partners with PolicyWorks. Through this partnership, the League’s member credit unions have
access to the PolicyWorks’ compliance hotline, which provides email and telephone access to PolicyWorks’ regulatory team
for answers to compliance questions. As well, member credit unions have access to up-to-the-minute compliance news and
information.
CFPB Proposes Amendments to the 2013 Mortgage Servicing Rules
The CFPB is proposing amendments to several mortgage servicing rules issued in 2013 under TILA-RESPA. As a high-level
overview of the 492-page document, the proposed rule would:
• Expand the applicability of many of the servicing provisions under Regulation X and Regulation Z to successors in interest once the servicer has completed the necessary due diligence to confirm both the successor’s identity and ownership
interest in the property.
• Require a servicer to consider subsequent loss mitigation applications if the borrower experiences subsequent delinquencies.
• Reinstate the periodic statement requirement for borrowers in bankruptcy. In addition, even if the bankruptcy debtor
has made a cease communication request to the servicer, under the proposed rule the servicer will still be required to
provide the debtor with written notice of loss mitigation options available to them.
• Provide that a transferee servicer must comply with the loss mitigation requirements found in Section 1024.41 of Regulation X within the same time frame that the transferor servicer would have been required to.
• Require a servicer to notify a borrower when their loss mitigation application is considered complete.
Comments are due March 16, 2015.
Click here to view the proposed rule.
FHFA Proposed Rule on Federal Home Loan Bank Membership
The Federal Housing Finance Agency (FHFA) has released a proposed regulatory change to Federal Home Loan Bank (FHLB)
membership rules. The proposed change would require all applicants and existing members to meet an ongoing “assets
test.” Under the test, credit unions would have to continually hold 10% of their assets in long-term home mortgage loans on
their balance sheet on an ongoing basis. Currently, FHLB members are only required to pass an assets test at the time of application. However, under the proposed rule, members would need to continually monitor and modify their balance sheets to
comply. Members who do not comply would lose their membership in the FHLB system.
Comments are due January 12, 2015.
Click here to view the proposed rule.
Click here to register >
3
Judge Keeps Target Case Alive; Credit Unions Still Awaiting
Reimbursements from Store Chain – 1 Year Later
Following a federal judge’s decision last month in which he declined to dismiss a lawsuit against Target stores over financial
institution losses as a result of last year’s massive data breach, the Credit Union National Association (CUNA) is reminding
all that – almost exactly one year since the breach – credit unions have not received a single dollar from the store chain in
reimbursements for the violation.
“With the holiday spending season underway, the potential for another massive breach like last year’s Target violation is on
the horizon,” said Jim Nussle, CUNA President and CEO. “Nothing is being done to quell these breaches on the retailers end,
nor are retailers like Target reimbursing credit unions for the losses credit unions suffered due to insufficient merchant data
security standards. One year later, credit unions still haven’t received anything in reimbursements from the store chain – and
that really stings.”
According to results of a CUNA survey early this year, the violations at the Target stores cost credit unions more than $30
million, with credit unions replacing more than 4.6 million cards, Since then, there have been several other data breaches
– including the huge breach in late summer at Home Depot, which cost credit unions more than $60 million, according to a
second CUNA survey conducted in October.
The survey also found no credit unions had received reimbursements from Target.
Nussle noted that, while the judge’s decision is welcome, recovery for credit unions from litigation continues to be uncertain.
“We’re heartened that the court understands the basic reality that merchants owe a duty of care to financial institutions,”
Nussle said.
Under current standards, merchants are not required to pay the costs of sending individuals new credit and debit cards nor
do they generally pay any of the fraudulent charges an individual may have on their cards or accounts as a result of the
breach at their retail institution. In fact, when merchants are responsible for the breach, they are rarely required to pay any
costs incurred by their customers, leaving credit unions and other financial institutions holding the bag. The Identity Theft
Resource Center estimates more than 500 data security breaches have occurred in 2014, exposing over 75 million data records.
“The ill effects of merchant data breaches touch Americans everywhere because merchants are not held to the same data
security standards as financial institutions,” said Nussle. “Congress must act to protect consumers by taking steps to enhance
data security standards for merchants in the 114th Congress. Without equal standards, retailers have zero incentives to protect the important financial information of the American people who shop in their stores.”
With no end in sight to retail data breaches, CUNA has created a brief 60 second video to provide a brief overview of retailer
data breaches. You can see this video here: http://player.vimeo.com/video/112395850. CUNA and CUNA Mutual also recently
teamed up to compile a list of risk management practices (below and on www.stopthedatabreaches.com) for credit unions
and credit union members.
Credit Union Members
• Don’t respond to email, text or telephone calls asking for personal or financial information
• Frequently review account activity and immediately report unauthorized transactions
• Place an initial fraud alert with credit bureaus if fraud has occurred
• Enroll and opt-in for transaction monitoring
• Use card on/off switches (if available)
• Enroll in Verified by VISA / MasterCard Secure Code
Credit Unions
• Monitor card association alerts
• Utilize name matching
• Block and/or reissue cards
• Monitor daily card fraud
• Work with a fraud monitoring system vendor
• Review or reduce daily dollar limits
• Comply with applicable data security laws and regulations, including Part 748 of NCUA’s regulations
• Refer to the FFIEC Information Technology Examination Handbook InfoBase,
In addition to helping arm credit unions and their members with tips on how to minimize risk, CUNA has been actively advocating changes to federal law to address this issue in a variety of ways. Following the Home Depot data breach, CUNA sent
letters to six merchant trade groups on cybersecurity and payments. CUNA has also sent a letter to the president requesting
that the administration establish a Cybersecurity Council; provided the quantitative analysis of the costs of data breaches on
credit unions at Target and Home Depot; canvassed Capitol Hill to urge lawmakers to force merchants to meet strict data security standards; launched a website www.stopthedatabreaches.com that allows consumers to take action and urge Congress
to step in and hold merchants accountable for data violations; and called on merchant groups to work with financial institutions to implement solutions.
For more information contact: Vicki Christner – CUNA Communications; (202) 508-6754; [email protected]
4
NCUA: State-Level Analysis Shows Accelerating Credit Union Loan
Growth
North Dakota, Idaho Strong in Several Measures in Quarterly U.S. Map Review
State-level data compiled by the National Credit Union Administration shows the median rate of loan growth continuing to
rise at federally insured credit unions in the year ending Sept. 30, 2014.
Overall, the median return on average assets was higher than the previous year. Share and deposit and asset growth both
slowed from a year earlier. While membership at federally insured credit unions increased, that growth was in larger credit
unions, while smaller credit unions saw declines.
The NCUA Quarterly U.S. Map Review, prepared by NCUA’s Office of the Chief Economist and available here, tracks performance indicators for federally insured credit unions in the 50 states and the District of Columbia. The review also includes
two key state-level economic indicators: unemployment rates and home price changes.
Median Loan Growth Rate Picks Up; Idaho, Arizona Lead
Nationally, the median growth rate for loans outstanding was 3.5 percent during the year ending in the third quarter of 2014,
up from the 1.8 percent median growth rate in the year ending in the third quarter of 2013. The highest median growth rates
for loans were in Idaho (9.5 percent) and Arizona (9.2 percent). No state showed negative median loan growth rate over the
year. Kansas had the lowest growth rate (0.3 percent).
Median Loan-to-Share Ratio Rises to 60 Percent
Nationally, the median ratio of loans outstanding to total shares and deposits was 60 percent at the end of the third quarter
of 2014 compared to 58 percent at the end of the third quarter of 2013. The median loan-to-share ratio was highest among
credit unions in Idaho (86 percent) and lowest in Hawaii (42 percent).
Median Asset Growth Rate 1.4 Percent
The median asset growth rate at federally insured credit unions was 1.4 percent nationally in the year ending in the third
quarter of 2014. The median growth rate for assets was 2.0 percent during the year ending in the third quarter of 2013. The
median growth rate was highest in North Dakota (5.7 percent) and South Dakota (4.2 percent).
In four states, median asset growth over the year was negative, indicating at least half of federally insured credit unions in
those states had fewer assets at the end of the third quarter of 2014 than a year earlier. New Jersey (-0.8 percent) had the
lowest median asset growth rate.
Utah, North Dakota Record Highest Aggregate Returns on Average Assets
Nationally, the aggregate return on average assets among all federally insured credit unions was 83 annualized basis points
in the first three quarters of 2014 compared to 80 basis points the previous year. The aggregate return on average assets
was positive in every state, with Utah having the highest (161 basis points), followed by North Dakota (109 basis points).
Connecticut (28 basis points) and New Jersey (34 basis points) posted the lowest aggregate return on average assets.
Median Shares and Deposits Growth Rate Slower; Six States See Decline
Nationally, federally insured credit unions’ median growth rate for shares and deposits was 1.1 percent in the year ending
in the third quarter, down from a median growth rate of 2.2 percent the previous year. The median growth rate for shares
and deposits was highest in North Dakota (5.2 percent) and Wyoming (4.8 percent). The median growth rate for shares and
deposits was negative in six states. New Jersey (-1.2 percent) showed the largest decline.
Trend in Median Membership Growth Continues; Larger Credit Unions See Gains
Overall, membership in federally insured credit unions continued to grow in the third quarter of 2014, primarily due to membership growth at credit unions with assets larger than $500 million. However, the median membership growth rate was -0.4
percent, identical to the rate a year earlier.
Nationally, 54 percent of credit unions had fewer members at the end of the third quarter than a year before. Idaho (2.7
percent) had the highest median membership growth rate, followed by Alaska and South Dakota (both 1.4 percent). In 29
states, median membership growth was negative, with Pennsylvania, Montana and New Jersey (all -1.5 percent) ranking the
lowest.
Median Delinquency Rate Stable
The median delinquency rate at federally insured credit unions was 0.9 percent nationally in the third quarter of 2014, slightly
below the 1.0 percent rate a year earlier. The District of Columbia (1.7 percent) posted the highest median delinquency rate,
followed by New Jersey (1.6 percent). North Dakota (0.2 percent) had the lowest median delinquency rate at the end of the
third quarter.
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5
Same Day Rules Briefing
NACHA - The Electronic Payments Association has published a Request for Comment (RFC) on Same Day ACH. This proposal
would provide faster clearing and settlement options for all domestic ACH transactions under $25,000. All receiving financial institutions (RDFIs) would be required to accept same day ACH transactions in order to provide certainty, ubitquity, and
greater choice for consumer, business and government Originators. This proposal includes a reimbursement fee of 8.2 cents
per transaction to be paid by the originating financial institution (ODFI) to the receiving financial institution (RDFI) to assist
in recovering average costs related to the implementation and ongoing operational support of same day ACH. NACHA is
accepting comments through February 6, 2015.
From the inception of the ACH Network in the 1970s, ACH transactions sent between financial institutions have always required a minimum of one business day to settle. But the demand for enabling same day ACH is heightened due to many factors including improved technological capabilities, the expansion of the types of payments or “use cases” supported by ACH,
and similar capabilities that exist in other domestic networks and in other countries. These factors have resulted in expectations by some users for a faster U.S. electronic payments infrastructure.
The major use cases NACHA identified are listed below, but NACHA has also emphasized that the flexibility built into this proposal allows for the development of additional use cases and products for all participants:
• Business-to-Business (B2B) Payments (i.e. trading partner, tax payments and remittance)
• Person-to-Person (P2P) Payments (i.e. reimbursements, financial support, emergencies, loan repayments)
• Account-to-Account (A2A) Transfers (i.e. consumers transferring funds between accounts at different financial institutions or to populate digital or mobile payments)
• Business-to-Consumer (B2C) Payments (i.e. same-day payroll, insurance claims, refunds, rebates, freelance payments)
• Consumer-to-Business (C2B) Payments (i.e. expedited bill payments, check conversion, merchant debits, collections)
Financial institutions that don’t offer commercial ACH Origination services may realize that some of these business cases may
still apply to their online or mobile banking services for bill pay, person-to person, and account-to-account transfers that they
offer.
NACHA is proposing a gradual adoption of Same Day ACH with three proposed implementation phases. This is designed to
ease the implementation effort for all network participants and allow the industry to acclimate to faster-payments with ACH
credits in the first phase, before adding the ACH debit “pull” capability.
• In phase one, proposed for September 16, 2016, only ACH credits would be same-day eligible.
• In phase two, proposed for a year later in September 15, 2017, ACH debits would become eligible.
• In phase three, proposed for March 16, 2018, an additional interbank settlement time of 9 AM PT would be added as well
as a more specific availability deadline for RDFIs.
In phases one and two, RDFIs would have to make their received same-day ACH transactions available by their own
end-of-processing day, however they define it. In phase three, availability would be required by 5 PM local time.
Two new same day processing windows would be established at 7 AM PT and 12 PM PT for ODFIs to submit their same-day
files to their ACH Operator. These files would be made available to the RDFIs approximately one hour later. Intra-bank settlement for these files would occur at 9 AM PT and 2 PM PT respectively.
NACHA’s proposed same-day schedule is an attempt to balance access to the network for participants across the U.S’s multiple time-zones and still adhere to the Federal Reserve’s National Net Settlement System 3:30 PM PT end-of-day deadline.
The benefit for enabling same-day ACH is readily evident for originating financial institutions offering Same Day ACH products
and services to their consumer, business and government ACH Originators and Third Parties.
NACHA consulted with an external expert consulting firm to independently evaluate the benefits and costs of Same Day ACH
for both ODFIs and RDFIs. The surveys distributed by WesPay in the summer of 2014 to our members provided important insights to this work. After compiling the data from nearly 200 surveys and interviews with institutions of all sizes, a proposed
interbank fee of 8.2 cents per transaction to be paid by the ODFI to the RDFI is proposed. This is designed to help offset
RDFIs’ average cost for implementing and supporting Same Day ACH in their critical role in enabling network ubiquity.
In 2012, NACHA proposed an Expedited Processing and Settlement (EPS) Rule that was voted down. NACHA has tailored this
current proposal based upon feedback they have received since then, including:
• A phased approach starting with lesser-risk ACH credits to help the industry adapt to Same Day ACH before introducing
higher-risk same-day ACH debits
• Funds-availability certainty for same-day ACH credits
• An early-morning Same Day window for faster settlement of transactions that are too late for overnight processing
• Two new same-day windows to spread volume throughout the day and better accommodate Western U.S. financial institutions
This proposal is designed to be on e of the key improvements to the U.S. Payments system that can help create a bridge
from today’s payment to those of the future. All ACH participants are encouraged to familiarize themselves with this proposal and provide feedback to CUNA here. Comments to CUNA are due by January 23, 2015; comments to NACHA are due by
February 6, 2015
6
Comprehensive Tax Reform on 114th Congress’ Agenda
Comprehensive tax reform is expected to play a major part in the 114th Congress, and the Credit Union National Association
(CUNA) and your Idaho Credit Union League plan to be active players in ensuring credit unions’ tax status is maintained.
“As we look to 2015 and 2016, credit unions need to take the tax reform discussions very seriously,” said Ryan Donovan,
CUNA senior vice president of legislative affairs. “We’ll be actively advocating for the credit union tax status beginning at the
start of the year, through the CUNA Governmental Affairs Conference and through the course of the entire Congress. Because
tax reform won’t be done until a president, whether it’s President Obama, Clinton, Cruz, Christie, you name it, signs a bill.”
In a video interview, Donovan mentioned three recent tax reform plans from Sen. Orrin Hatch (R-Utah), incoming chair of the
Senate Finance Committee; Sen. Tom Coburn (R-Okla.); and Rep. Dave Camp (R-Mich.), outgoing chair of the House Ways
and Means Committee.
“Hatch’s plan and Camp’s plan are likely to serve as foundations for the way their respective committees might approach tax
reform,” Donovan said.
“We expect both the incoming chair of the Ways and Means Committee Paul Ryan (R-Wis.) and incoming chair of the Senate
Finance Committee Orrin Hatch to very actively pursue comprehensive tax reform,” he said. “With Republicans controlling
both chambers of Congress, there’s an expectation that they will produce a budget, and that in the course of producing that
budget they may give reconciliation instructions to complete comprehensive tax reform.”
Horizon Credit Union’s Merger Plans with EDTECH Approved
Merger Means More Branches and Services in Montana
The promise of more products and services convinced Butte-based EDTECH Credit Union to join with Horizon Credit Union,
based in Spokane. Seventy-seven percent of the members who cast ballots supported the merger, according to election results finalized last night.
The vote was the final step in the process after both credit union boards, the National Credit Union Association (NCUA) and
the Washington State Department of Financial Institutions approved the merger earlier this year.
“We’re excited to improve access for the many members we already serve in Montana, while also working with EDTECH employees to bring more products and enhanced technology to their members,” says Jeff Adams, CEO of Horizon Credit Union.
“Equally important, our partnership brings together employees and members who share a very strong commitment to serving
members and supporting the community. That’s what makes this merger such a positive move for both of our organizations,”
he adds.
The combined credit unions will approach nearly $700 million in assets, employ about 235 people and offer access to 20
branches and more than 35,000 surcharge-free ATMs nationally.
“This is great news for members,” said Tom Kiely, CEO of EDTECH. “Our members will gain access to products and services
that we alone could not provide, while still retaining the hometown service and commitment to community that’s been a part
of our credit union from its very beginnings.”
The credit unions will begin work immediately to combine core data systems, a process that’s expected to be complete on
March 1, 2015.
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7
Credit Unions in the News . . .
Clearwater Credit Union Supports Children’s Miracle
Network
Welcome to Banzai!
P1FCU has partnered with an online financial literacy company called Banzai to bring effective and engaging financial
content to our local classrooms. The best part about the
program is it’s free to teachers! The program is 100% funded
by P1FCU!
Also included in the program, if requested, is a personal presentation from one of the credit union’s staff members.
Clearwater CU recently held a raffle for Children’s Miracle
Network. One of their members, Carol Webb, donated a
baby quilt she made and Jerrie Davidson donated the stuffed
cows. Clearwater’s employee Desirie Lynch and her husband,
Tim, made the barn.
Pictured is the Community Relationship Specialist, Sarah
Preston, presenting to students in Culdesac, ID. Potlatch has
had a great response from many schools in their 13 county
region.
Visit their co-branded website to find out more! http://p1fcu.
teachbanzai.com/
CUES Announces 2014 Hall of Fame Inductees
Public Employees CU Sharing Tree
Kent Oram, president and CEO of
Idaho Central CU, was recently, inducted into the Credit Union Executives Society hall of fame. Oram was
one of four recognized for a lifetime
of achievement and dedication to
the credit union movement. Chosen
by the CUES board of directors for
their contributions to their profession and the industry; involvement
in community services; and education and history of self-improvement.
In 2013, Oram was named CUES Outstanding Chief Executive. He is the first Credit Union CEO in Idaho to be recognized with these honors.
Recently, Oram also served as one of the judges for the 2014
CUES Next Top Credit Union Exec challenge. The judges
were responsible for keeping up to date on the projects each
finalist is reporting on at NextTopCreditUnionExec.com and
for viewing the final presentations with a critical eye toward
the criteria of creative thinking, content/idea, and style. The
grand prize went to Alex Castley, engagement and communications manager, Integris Credit Union, Prince George, British
Columbia. He received a CUES educational package valued at
$20,000, and the honor of being named 2014 CUES Next Top
Credit Union Exec.
Public Employees CU had a very successful year with their
Tree of Sharing. Member’s provided over 50 gifts for needy
children.
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Credit Unions in the News Continued . . .
P1FCU Happy to Ring the Bell
The Grangeville branch of P1FCU was more than happy to
“Ring the Bell” this holiday season to help collect money for
the Salvation Army.
Pictured: Erica Yarbrough, Sandy Kantner, Serena Jackson,
Lori Courtright & Amy Hall, all staff of P1FCU.
Icon CU Partners with Idaho Women’s Journal to Promote Financial Literacy
In another step toward providing financial education for small business owners
and aspiring entrepreneurs alike,
Icon CU has partnered with the Idaho
Women’s Journal to provide an online
resource of information for anyone
looking to learn more about the basic
principles of setting up a business.
In this project, IWJ publisher and owner
Karleen Andresen sat down with Icon’s
CEO, Connie Miller, and EVP, John
Cotner, to discuss some of the most
important topics to consider when starting a small business,
seeking a small business loan or looking to expand a business. From mobile banking to hiring the first employee and
the most common causes of failure for small business, this
resource provides a comprehensive, 24/7 library of information for entrepreneurs across Idaho.
To access the online library, simply visit www.idahowomensjournal.com/financial.
Idaho Central CU Participated in 7Cares
Idaho Central CU was excited to participate in the 7Cares event in Boise again this year. 7Cares is an event where cash and
food donations are accepted from the community and businesses to help the needy in our local communities. ICCU was
thrilled to donate $1,000 worth of food to the Idaho Foodbank.
Jeff Mackey, team captain for ICCU, said, “One of the things I love most about my job is the ability to participate in events
like 7Cares. It makes me proud to be part of Idaho Central CU and such a huge community effort. It is so exciting!” Mackey
also sees this event as a learning opportunity for his children. “I enjoy bringing my daughter and getting her excited to help
others. It teaches her the importance of working hard to benefit those who are less fortunate,” stated Mackey. Idaho Central
loves being involved and helping those in need.
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Credit Unions in the News Concluded
Icon CU Announces New Chief Financial Officer
Ken Clifford Retires After 27 years as Les Bois CU CEO
Icon Credit Union is pleased to announce the selection of
Paul Gephart as the credit union’s new
chief financial officer.
For 27 years, Les Bois Credit Union operated under the
leadership of CEO Kenneth J. Clifford, and on December 31,
2014, Ken retired. An Idaho Native with a B.B.A. from Boise
State University, Ken worked in the credit union industry for
38 years, with 30 of those in senior management and 27
years as the CEO of Les Bois CU. He led Les Bois’ growth
from $6.4 million in assets with 8 employees, 1 branch and
3,887 members to, at one time, $90 million in assets with
54 employees, seven branches in five cities and over 11,000
members.
“Paul has extensive financial management experience and knowledge. He
will bring considerable expertise to our
credit union, and we are looking forward to having him join our team and
lead efforts to continue our financial
strength,” said Connie Miller, president
and CEO of Icon CU.
Gephart last served as the director of
finance at Home Federal Bank in Nampa, Idaho, where he
oversaw all aspects of asset liability management, budget
planning, cash management, and the investment portfolio
for the $1 billion community bank. During his four years at
Home Federal Bank, Gephart was the head of the investment
committee and the chair of the Asset Liability Committee.
Gephart was named “Most Valuable Player” in 2012 for Home
Federal Bank for his exceptional leadership and teamwork
skills. Prior to Home Federal Bank, Gephart served as a
controller at Merchants & Southern Bank and chief financial
officer for Community National Bancorp. Gephart has a Bachelor’s Degree in Accounting from Duquesne University and a
Master’s Degree from Georgia State University.
Under Ken’s leadership, Les Bois CU evolved from a single-sponsor credit union serving only employees of the Morrison Knudsen Company to a community-based full-service financial institution serving all residents residing in Ada, Boise,
Canyon, Gem, Owyhee, and Valley counties. Ken also served
on the board of directors of two credit union service organizations (CUSOs) that provide specialized services to credit
unions that enable them to better serve their member-owners. With his expert guidance, these CUSOs enhanced the
overall success of the credit union industry. Ken’s dedication
and service is appreciated and we wish him the very best in
his well-deserved and hard-earned retirement.
When asked about his new position at Icon CU, Gephart said,
“I am very excited for this opportunity at Icon CU. The credit
union has a great history of serving the community and I am
looking forward to working with the team at Icon to continue
to grow the credit union and serve the members.”
CapEd CU Staff Makes Christmas Merrier for 5 Local
Families!
At the end of each year, CapEd
takes a portion of the Sunshine
Fund (a voluntary staff contribution
fund for life events for fellow staff)
and donates it to families in need
in the communities they serve. The
donations have been in the form of
checks, gift cards, or groceries.
Pictured: Ron Kulchak, Ken Clifford (seated), Chris Frye,
Sam Frye, Kathy Clifford, Larry Crockett at the Les Bois CU
Employee and Volunteer Appreciation dinner held December
5, 2014.
This year, CapEd contacted the school district offices in
Boise, West Ada, Nampa, and Kuna and asked for a list of
families in need. CapEd was provided with information for
five different families, so they put together five envelopes
that included a holiday card and a VISA gift card.
The families will be using the funds for any needs they
choose; such as purchasing Christmas gifts, paying bills, or
fuel for their vehicles. The school districts accepted the cards
on behalf of the families.
Thanks to CapEd staff, smiles have been put on the faces of
five Treasure Valley families this holiday season.
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Credit Unions in the News Concluded
Lewis Clark CU Welcomes New President/CEO
Trisha Baker will succeed Val Guenther, who retires this month, as President/CEO of Lewis Clark CU
($50 million in assets; nearly 8,000 members) headquartered in Lewiston, Idaho.
Trisha has been working in credit unions since August of 1984. She spent nearly 20 years with UFCW
Northwest FCU in Portland, Oregon. Over the years she has held various positions, including CEO
and is knowledgeable in all areas of credit union management. Trisha enjoys the challenges of trying
to find more streamlined approaches to credit union practices and solutions.
Trisha has also been active in the credit union movement, attending various educational conferences,
chapter meetings, and continuing education classes over the past 30 years. Trisha graduated from
Western CUNA Management School in July, 2008, where she received Honors and High Honors on her
graduating projects.
In addition, she served on CUNA’s Small Credit Union Committee, representing Oregon and Washington. Trisha has been an elected director on the Northwest Credit Union Association’s Board and served as co-chair of the
PAC Committee for the Northwest Credit Union Association. She also has been very involved with the Mt. Hood Chapter of
Oregon Credit Unions, where she served as treasurer and president.
Trisha regularly attends CUNA’s Governmental Affairs Conference in Washington, D.C., where she supports and speaks out
for the credit union industry. She feels it is important to let lawmakers know that credit unions are unique and special. She
has a passion for spreading the word about how great credit unions are!
Trisha most recently lived in Portland, Oregon with her husband Bill of 25 years. They have two great boys, Trevor (25), who
graduated from the University of Oregon and Joseph (17), who is in his senior year of high school. Trisha loves to watch
Joey play golf for the varsity team of David Douglas High School, is an avid Portland Trail Blazers fan, loves to watch NASCAR, and enjoys classic car events.
Trisha and her family are excited about relocating to Lewiston, Idaho and becoming a part of the Lewis Clark CU family. Her
first day at the credit union is January 5, 2015.
Events Calendar
JANUARY
6 20 Outbound Marketing Tips for Every Credit Union - QuickBite
6 CFPB Rules for Mortgage Loan Officer Compensation - Webinar
7 Disaster Management & Continuity Planning, Including Critical Vendors - Webinar
8 Obamacare for Credit Unions - QuickBite
8 Apple Pay, the Mobile Payments Game Changer: Considerations & Action Steps for Credit Unions - Webinar
13 Reg CC - TeleCourse
13 HMDA: What to Know Now & What’s on the Horizon? - Webinar
14 IRA Series: IRA & HSA Update 2014-2015 Tax Years - Webinar
15 Robbery Prevention, Response, Aftermath - TeleCourse
21 Mortgage & Real Estate Fraud - QuickBite
21 Advanced Endorsements: POAs, Businesses, Trusts & More - Webinar
22 Director Series: Credit Union Bylaws: Understanding & Assessing Your Governance Documents - Webinar
27 CTR/SAR’s - QuickBite
27 Dealing with ACH Tax Refunds: Exceptions, Posting & Credit Union Responsibilities - Webinar
28 HR Series: Interviewing Techniques & Best Practices: Hiring Right the First Time - Webinar
29 Identifying Loan Opportunities - QuickBite
29 Member Complaint & Response Management - Webinar
Idaho Credit Union Philosophy Certifications
We believe that credit unions are unique. When our staff and volunteers understand and are comfortable speaking about this,
we will thrive. We urge you to make reading of the Philosophy Manual mandatory for all new employees and volunteers. For
more information please contact the Idaho Credit Union League at (800) 627-1820.
Certificate Recipients
Angela Baum
CapEd FCU
Ryan Mitchell
CapEd FCU
Kevin Birch
Icon CU
Heidi Cisney
Icon CU
Michael Defalco
Icon CU
Hoang Potthoff
Icon CU
Rebecca Rodgers
Icon CU
Itai Bradshaw
Evelyn Dinges
Kara Layton
ChaeLynn LeCates
Paislie Watkins
Pam Gerger
Sandy Maitland
Potlatch No. 1 FCU
Potlatch No. 1 FCU
Potlatch No. 1 FCU
Potlatch No. 1 FCU
Potlatch No. 1 FCU
Public Employees CU
Public Employees CU
www.idahocul.org
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