The Boardcast

Interview with CUNA CEO Dan Mica

The Credit Union National Association's Governmental Affairs Conference begins in Washington DC on March 2, 2008. This yearly gathering of credit union professionals and volunteers is designed to give credit union advocates an opportunity to network, share information and lobby for the credit union cause. 

Dan Mica recently emailed responses to some questions I posed in preparation for the GAC. Mr. Mica is a former US Congressman from the state of Florida who has been President and CEO of CUNA since 1996.

CURIA, the Credit Union Regulatory Improvements Act, legislation providing a significant opportunity for credit union reform, was introduced in Congress in 2007. I asked Mr. Mica, "What would you like to say to the average credit union member about the importance of the passage of the CURIA legislation?" He responded,

Credit unions remain the most highly regulated and restricted of all insured financial institutions, particularly after legislation in the 1990s – and court decisions in the past two years -- which imposed new, severe restrictions on credit unions in several areas. CUNA supports H.R. 1537, the Credit Union Regulatory Improvements Act (CURIA) because it would help eliminate some of the worst examples of statutory micromanagement that have placed unreasonable constraints on the ability of credit unions and their boards to function efficiently and in the best interests of their members. These include the important areas of lending to members for business purposes, giving credit unions more flexibility under "net worth" or capital standards, and allowing any type of credit union to serve underserved areas.

There are currently 143 cosponsors of this legislation in the House of Representatives. Credit union advocates throughout the country hope that 2008 will be the year when this legislation will become law.

Some legislators on both the national and state level do not support the tax exempt status of credit unions. They do not understand the credit union difference which stresses member participation and service over profit. I asked Mr. Mica to comment on the best way to approach lawmakers who do not recognize the value of credit unions. He responded,

Credit unions are classic cooperatives, like rural electric cooperatives. The credit union tax-exemption is bound by the not-for-profit, cooperative structure of credit unions, not by the size of the credit union, those it serves, or the products and services that are offered. This rationale for the tax-exempt status has been ratified several times by Congress. Although the bank lobby claims credit unions are "growing beyond their means" and should therefore pay taxes, the credit union share of total assets has remained virtually unchanged. From 1992 to 2006, credit unions’ market share has remained at a constant 6 percent of total assets in America's financial depository institutions. Most importantly, credit unions exist to serve their members, providing financial literacy counseling, short-term loans and other unique services when members are in need. Credit unions and CUNA oppose all attempts to subject credit unions to taxation, as well as efforts to use the tax debate to prevent credit unions from gaining needed regulatory relief.

The current state of the economy is a topic that will be at the top of GAC sessions and conversations. I asked Mr. Mica, "What key challenges, in the 2008 economy, are credit unions most equipped to meet?" He made the following observations,

The U.S. economy is now most likely in the early stages of a recession. In the best of outcomes, economic growth in the first half of 2008 will be disappointing and unemployment will be rising. Some regions of the country will experience disproportionately harsh economic conditions. But, in responding to this decline in the economy’s quality, credit unions should be cautious – and not overreact. Most credit unions now have very strong balance sheets and near-record-high capital levels. The appropriate course of action for most credit unions is therefore to let the capital cushion do its work: temporarily let net income fall as a result of the loan losses. This will require a careful review of the credit union’s budget and financial situation and a clearly delineated plan.  

The vast majority of credit unions did not participate directly in subprime mortgage lending. Credit unions, like UFirst FCU follow board approved loan policies when lending to their members. Unfortunately, the subprime mortgage crisis along with credit constriction, soaring prices for food and fuel and rising unemployment has put pressure on some members and their families. The UFirst board plans on taking Mr. Mica's advice and will be continuing to monitor our financial status to maintain its current strength.

I am grateful that Mr. Mica took the time to communicate with the members of UFirst FCU. It's reassuring to know that individuals with his experience and expertise are in positions of credit union leadership. Board Secretary Liz Woodard, Marketing Director Jody Carpenter and I (Board Vice Chair Ginny Brady) will be attending the CUNA Governmental Affairs Conference next week. Members will receive regular updates from the conference on the Boardcast. 

Board of Directors Meeting - 02/19/2008

The UFirst Board of Directors met for our regular monthly meeting at 4:30 on Tuesday afternoon. Peter Zielinski, board chair, called the meeting to order and we spent the first part of the meeting approving new members and reviewing the services the credit union has provided during the month of January. CEO Linda Bourgeois reported that new memberships have increased again in January as have loans  provided to members. Loan reports reflect the relationship pricing policy the board enacted prior to moving into our new operations center.  UFirst members have the opportunity to lower their loan rates through their use of credit union services. The UFirst board is proud of the competitive loan rates we are able to offer our members. CEO Bourgeois also reported that the campus credit union branch at the Plattsburgh State University College Store continues to enjoy regular member use.

The board received an excellent report from The Plattsburgh College Foundation on the status of the UFirst Federal Credit Union Endowment. This annual statement for the year ending June 30, 2007 reports the endowment value to be $120,448. UFirst's endowment joins a pool of more than 200 individual endowments having a total portfolio value of $13M. The UFirst FCU Endowment Recipients for 2006/2007 were Joel Brandt, Ashley Canning and Courtney St. Pierre.

The board discussed the upcoming Credit Union National Association (CUNA) Governmental Affairs Conference in Washington, DC which will be attended by Marketing Director, Jody Carpenter and board members Liz Woodard and Ginny Brady. Conference highlights and impressions will be covered on the Boardcast during the conference.   

Our Plattsburgh High School Members

Students from Mrs. Karen's Rock's Career and Financial Management Class returned to the UFirst Operations Center on February 13, 2008. This visit was part of the NEFE, High School Financial Planning Program which the students have been using in their class since October. The students have been active members of UFirst since the class began. During this visit, Jody Carpenter, UFirst's Marketing Director, discussed strategies for spending, saving and investing money. She also spoke with the students about how to protect themselves against identity theft. As part of their NEFE instruction, the students "shopped" for cars using local ads. They submitted a practice loan application and Jody completed the calculations so that they could see their loan payment amounts. Staff and board members hope that UFirst will be the first stop these students will make when they are ready to purchase their first car.

The students enjoyed refreshments supplied by Mrs. Rock. Congratulations to these students who have completed the first half of this valuable, financial education program.

(Flickr Slideshow of PHS Visit)

Who Does This Help?

A recent article announced a new service offered by a local financial institution. This bank is now offering to cash government and payroll checks for residents without bank accounts. The service fee is 1.0% of the value of the check and it is noted in the article that this cost is considerably less than the typical charge of most check cashing operations. The brief article goes on to say that the bank has begun this new program in low-to-moderate income communities. It is targeted to those described by the announcement as the "un-banked" or "under-banked" and those without access to credit.

A credit union like UFirst would be an excellent place for these potential members to take advantage of a full complement of services. It's difficult to find a reason why an individual would benefit from cashing their paycheck of, lets say $400, and paying $4 of it to this bank when with one share deposit of $5 they can have this service plus more. All residents of Clinton County (as well as those who work, worship and attend school here) can join UFirst, have their checks cashed for free while taking advantage of savings, checking and credit services at a low cost or free. UFirst welcomes all eligible members who would like to join our credit union family!

A New Look and A New Address

Yes, the Boardcast has a new look thanks to the talent and help of Morriss Partee and Nate Duval from EverythingCU. Morriss, Nate and I have been discussing a new banner and style for the Boardcast for the last month. Nate designed a banner and overall look that, I hope, enhances the message of the Boardcast.

You may notice that the new logo/banner carries a theme found in our UFirst logo. Winding through both logos is a path. This path symbolizes the commitment UFirst has to our members in, "Helping you get there". The Boardcast, in both its spirit and content, is designed to highlight and support this message. Indeed, UFirst's entire focus is to assist members in realizing the dreams they have for themselves and their families.

The bright, uncluttered style of the Boardcast symbolizes the board's openness to hearing from you, our members. We sincerely encourage you to give us feedback, because by understanding your concerns and hopes, we can improve UFirst. With your help, we can make UFirst the credit union of choice in Clinton County.

Finally, our URL has been shortened to help you to reach the Boardcast faster and easier. You can now get to the Boardcast by going to www.theboardcast.net. Please spread the word to your family, friends and other members of UFirst FCU.   

We hope you like our new look and hope you will

 

 

Board of Directors Strategic Planning Meeting

The UFirst Board of Directors and members of the Management Team met at the Butcher Block in Plattsburgh on Wednesday, February 6th for our semi-annual strategic planning session. Phil Frani, who has conducted both planning and educational sessions for us in the past, facilitated this educational seminar. Phil helped us to review the components of the UFirst financial statement. The board of directors spends a portion of each board meeting examining the credit union financial statement and this session gave us an opportunity to review how each individual part relates to the total report. The board and management staff found this review helpful. In addition, we were able to analyze the significant ratios that are indicative of the health and growth of our credit union. The board and management staff are grateful for Phil's expertise and assistance. He provides us with vital training as well as helping us to plan for the future.    

Director Profile - Martha Cashman

Martha has deep roots in the North Country as well as many years of service at Plattsburgh State University and as a director on the board of Ufirst Federal Credit Union. Martha graduated from Chateaugay Central School and grew up on beautiful Chateaugay Lake. After graduating from Albany Business College she returned to Plattsburgh and worked in a variety of positions at Plattsburgh State until her retirement in 2007. Martha and her husband Craig have one son, Brian, who graduated from the New England Culinary Institute and is a pastry chef in Burlington, VT.

Martha has been a UFirst FCU director since 1994. She held the position of secretary of the board for 4 years and is currently the board treasurer. Martha chairs the Budget and Finance Committee and is also an active member of the Personnel and Loan Committees. As we talked, Martha reflected on the numerous changes she has witnessed as a board member at our credit union. The most significant change has been our move from the basement of Hawkins Hall on the Plattsburgh State Campus to our current location on Rugar St. In addition, she mentioned the increase in our membership and staff as a result of Ufirst's change to a community charter which has allowed us to welcome members who live, work, attend school or worship in Clinton County, NY. Our membership growth has stimulated an increase in services and products for our members as well as the need to implement advanced information technology and marketing strategies.

Martha is enthusiastic when she speaks about her UFirst membership and her role as a director. She spoke about the excitement of planning, monitoring and moving into our new building as an example of the wonderful way our Ufirst staff, management and board work together for the benefit of members. She is continually gratified by the support that the board and staff receive from members for the new initiatives at UFirst.

Martha stated that the board and staff will continue to be challenged by our mission, "...to provide excellent personal service to our members." She believes that UFirst will need to provide increased educational services to members in order to assist them especially during the current, challenging economic times. She voiced her admiration for our CEO, Linda Bourgeois, who is at the forefront of this effort. She reminded me of a recent Boardcast post in which Linda said, "We are trying to be proactive with members that we know are beginning to or have been treading water financially. If they call needing to add on to an existing personal or debt consolidation loan, we are offering to help them with a budget as well."

Martha would like UFirst members to know that,

UFirst is a strong highly-respected credit union offering superior products and services. The staff is professional and dedicated and is under the leadership of an outstanding CEO, Linda Bourgeois.

Martha feels that UFirst's success stems from the fact that Linda is supported by an outstanding managment team and a committed Board of Directors dedicated to "Helping You Get There."

All Politics Is Local

UFirst FCU board members and senior management attended the 2008 New York State Legislative Forum on Friday morning, Feb. 1. A large gathering of business owners, agency and non profit leaders and public officials met at the Plattsburgh Holiday Inn. The forum was organized by the North Country Chamber of Commerce and sponsored by CVPH Medical Center. Gary Douglas, Chamber Executive Director, introduced the presentation by discussing the results of the Chamber Issue Survey of business members. He reported that the top 3 area concerns for business owners are:

• The cost and availability of local health care
• The increasing property taxes for businesses
• The need for a cap on state tax increases

It is interesting to note that the concerns of business owners are not unlike those of individual citizens.  Adequate, affordable health care and tax relief seem to be at the top of the list for many of us in the North Country. These quality of life issues are also important in attracting new companies and businesses which help our economy to grow in Clinton County as well as our neighbor counties to the south and west.

Senator Betty Little and Assemblywomen Theresa Sayward and Janet Duprey spoke with the group about the legislative battles and triumphs they have engaged in during recent months. Media coverage has exposed the North Country physician shortage and it was good to know that Governor Sptizer has a included legislation in his budget called, "Doctors Across NYS" to encourage physicians to relocate their practices upstate. Senator Little mentioned the success of the Star program which has provided property tax relief to many homeowners who need it most. Additional legislation called the "Circuit Breaker Bill" would cap property tax increases according to an individual's ability to pay. She noted the increases in fees and surcharges proposed by the Governor saying that in many cases this represents a hidden tax increase.

It appears that our 3 legislators often find themselves in the position of defending the rights of Northern New Yorkers who are often overlooked in favor of the concerns of those in the metropolitan area and western NYS. Senator Little condemned the proposed closure of Camp Gabriels, which provides transitional incarceration for criminals who are preparing to return to society. She commended the work of the employees and the contribution of inmates to the labor pool of nearby communities. She urged attendees to write the governor objecting to the closure of this facility.

Assemblywomen Sayward and Duprey echoed the sentiments of Senator Little. Mrs. Sayward reminded attendees that growth in government is usually at the heart of increases in taxes. Mrs. Duprey observed that working toward tax relief is important but it is equally important not to shift the tax burden to businesses.

Regardless of our politcal affilitation, it is important for all of us to join the dialogue in trying to address the challenges we face on a local as well as a national level.