The Boardcast

2009 - The Year of Saving?

The Wall Street Journal blog, Real Time Economics, recently featured a post entitled, "Will 2009 Be Year of Saving?". The article gave a preview on the economic outlook for 2009 as it relates to the earning, spending and saving outlook for consumers. It observes that unemployment threats, wage and benefits decreases do not bode well for workers. The Obama stimulus package is targeting this reality by planning infusions which are designed to create jobs. It is clear from holiday spending reports that consumers have cut down on spending. This is a threat to the national economy but has had the side effect of reducing the cost of goods. In addition, a big relief to individual families has been the reduction of gasoline and fuel prices. The post observes that: 

"Gasoline prices are down about $2 per gallon since the peak in July. Joseph LaVorgna of Deutsche Bank estimates that every $1 drop in gasoline adds about $100 billion to household cash flow — meaning households have an extra $200 billion to spend on items besides gasoline. That amount is bigger than the rebate checks sent out earlier in 2008."

Fuel prices have also decreased adding more expendable income to the pockets of families. The blog observes that in spite of the tight economy American families have not lost their ability to look forward. They have internalized the message urging them to save for reirement.

"A survey by the Investment Company Institute in October showed that despite market volatility, investors remain committed to saving for retirement. Only 3% of participants have stopped making contributions this year."

The UFirst Board of Directors took action at our December 16th board meeting to make it even easier and more advantageous for our members to save for retirement. The Board was unanimous in our support of a new Payroll Certificate program. This UFirst product is a 12-month CD that can be opened with a minimum deposit of $20. Member participants deposit at least $20 each pay period through direct deposit or payroll deduction. The interest rate on this CD is higher than our regular savings account but lower than our normal 12-month CD.

Dividends are earned beginning with the initial $20. The CD can be rolled into another savings or CD account at the credit union at the end of the year. We feel that this is a great way to offer our membership the opportunity to save for the future. We believe by allowing the smaller deposits into this certificate will contribute to the savings goals of members.

The Payroll Certificate Program will be launched on January 1, 2009 with a full explanation and disclosure.

Holiday Greetings From The UFirst Board and Staff

2008 Credit Union Executives Society Directors Conference

The Boardcast will celebrate its 2nd anniversary in January. One of the surprises and pleasures that the Boardcast has given me has been the opportunity to meet many professionals and volunteers who are credit union advocates. Christopher Stevenson of the Credit Union Executives Society (CUES) is one of those special people. Christopher works for CUES which is a credit union association whose mission is "...to advance the professional development of credit union CEOs, senior management and directors." It is vital for credit union professionals and volunteers to remain up to date on the latest financial and regulatory information in order to maintain a stable and viable financial institution. CUES is dedicated to providing current, valuable training for credit union advocates throughout the world. Christopher and the CUES Conference committee extended an invitation to me to join them in Palm Desert CA as a presenter at this year's CUES Directors Conference. I spoke about the work I have done in the last two years in developing and moderating the Boardcast.

Attending this conference afforded me the opportunity to attend sessions on topics such as Board Excellence and Strategic Planning as well as the latest approaches to responsible Asset Liability Management for Credit Union Directors. I also had the opportunity to meet directors who are enthusiastic credit union advocates. Directors Tom Mayo and Kathy Sweeten from NorthCountry FCU in Burlington, VT were nice enough to offer me a ride from the airport the day I arrived. I had wonderful conversations with Judy DeLong (SEFCU, Albany, NY), Wayne Duso & Keith Edwards (SeaComm FCU, Massena, NY) and Joe Finnigan (Vermont Federal CU, Burlington, VT). I met a fellow Credit Union Management School classmate of Shari Seney, Dale St. Hill, who traveled to the conference all the way from Barbados. I also found that it's a small world when I met Dale Whittaker and his fellow board member Ed Sorrell from Vantage West CU in Tuscon AZ. Ed's daughter, Janice Trudeau, lives in Plattsburgh.

I had a wonderful time as you can see from this Flickr Photo Slide Show linked to the picture of Ed and Dale shown at the start of this post.  

   

Board of Directors Meeting - November 25, 2008

The UFirst Board of Directors met for their monthly board meeting at the operations center on Rugar St. on Tuesday, November 25. CEO Linda Bourgeois reported that approximately 1900 members are using the Ufirst Home Banking service and 612 members receive e-statements. Seventy-one members are now using mobile text banking. UFirst continues to see increases in our membership.

UFirst continues to make regular contributions to the community in Clinton County. Marketing Director Jody Carpenter gave a detailed report on Ufirst activities supporting many worthy causes in the North Country. They included:

• A leadership role in this year's American Heart Association Heart Walk. Members of the UFirst Board and Staff donated their time along with $200.
• Toiletry donations to Stop Domestic Violence as part of Violence Provention Month in October.
• Participation in the Alzheimer's Walk held on October 26th.
• Sponsorship and staffing a booth for the 5th annual Halloween on Safety Street.
• Collecting hats, gloves, mittens and scarves drive for Champlain Valley Family Center clients. 

UFirst values it's roots in our community and believes that it is important to be a part of activities that benefit the community.

Jody also reported on an exciting new educational initiative which will provide more local students with the opportunity to increase their financial knowledge. Business Management and Administration cluster teacher, Betsy Morrow, has approached Jody to help her launch the NEFE program for students at CV-Tec. CV-Tec provides valued vocational training to local high school students. Mrs. Morrow spoke with Jody about the commitment that this school has to providing students with training for the "real world". Incorporating the NEFE (National Endowment for Financial Education) curriculum into these classes would give students the tools to learn to manage their finances. UFirst is looking forward to adding CV-Tec to the schools with whom we partner.