CU News (08-31-12)

The Pulse (08-31-12)

August 31, 2012    ●    Volume 01, Issue 35

View 08-31-12 issue of The Pulse

Credit Union News

St. Paul FCU kicks off school year by opening a student branch

St. Paul Federal Credit Union will open the state’s second student-run branch office in mid-September at Como Park High School in St. Paul. Staffing the office will be (from left) School & Branch Education Coordinator Trevor Malone and high school interns Tim Smith, Kyle Kottke and Dylan Schmidt.

Students at Como Park High School in St. Paul will be starting the school year on the right financial foot with the opening of St. Paul Federal Credit Union's first student-run branch office. The in-school credit union is an extension of the school's business education program, and the endeavor was borne out of the relationship St. Paul FCU has built with the school's business teachers and administrators.

"The credit union believes in teaching youth financial literacy, and we had some key people in the school to make sure that this student branch really flies,” said St. Paul FCU Vice President of Lending & Member Services Mitch Myre, who is part of the team that has helped establish the in-school branch at Como Park High School.

Three high school students – seniors Dylan Schmidt and Kyle Kottke and junior Tim Smith – will be working as tellers at the in-school branch. They have been training over the summer as interns at St. Paul FCU's main office. The students will be performing all of the functions that a full-time credit union teller would, and the student-run branch will offer the same range of services a member would see at any branch office, including check cashing, deposits, loan applications and financial assistance.

The student interns were culled from the high school's business program, said St. Paul FCU President Theresa Malone, because the credit union wanted to staff the branch with students who were interested in business and finance and wanted to be involved in teaching their peers about money management.

The student employees will work in rotating shifts managed daily by a supervisor who works at St. Paul FCU. Trevor Malone is officially known as the credit union's School & Branch Education Coordinator and will oversee operations of the in-school branch, which is open to all students and faculty on weekdays from 10 a.m.-1 p.m. As an additional educational resource, the credit union's staff will help in augmenting the school's business curriculum by assisting in classroom discussions on topics such as the importance of credit and saving, interviewing skills, how to build a resume and other essential topics.

The concept of in-school credit unions as teaching tools seems to be catching on in Minnesota, with St. Paul FCU's student branch being the second to open in the state within a year. Hometown Credit Union in Owatonna also opened a student branch in that city's local high school last school year, and other Minnesota credit unions are currently working toward student-run branch offices, as well.

MnCUN partnership assists CUs in accepting public deposits

Last week MnCUN's Network Service Corporation furthered its initiative to strengthen credit unions' ability to accept public deposits through a newly-signed partnership agreement with American Deposit Management, LLC (ADM). As a treasury management and financial services company, ADM provides Minnesota credit unions a safe and profitable fund where they can place large deposits.

ADM is a deposit placement service that provides full FDIC/NCUSIF insurance through a network of financial institutions. Through this program, credit unions send large deposits to ADM, which are then placed in separate financial institutions that have FDIC/NCUSIF insurance. This product provides credit unions a unique combination of deposit protection and competitive returns on funds.

Earlier this year, MnCUN played an instrumental role in a push for the inclusion of credit unions in the language of a bill involving deposits from public entities. While the bill was signed into law in April, many Minnesota credit unions lacked the tools necessary to fully take advantage of this legislative change. MnCUN's partnership with ADM provides credit unions an investment tool for municipal deposits.

"The Minnesota Credit Union Network is excited about the doors this partnership with American Deposit Management will open for credit unions,” said MnCUN Vice President – Network Service Corporation John Ferstl. "By utilizing this product, credit unions can reaffirm their connection to and support of local communities.”

Headquartered in Milwaukee, Wis. with offices in Minneapolis, ADM works with more than 400 banks and credit unions nationwide that are the cornerstones of their local community. Affinity Plus FCU, Richfield Bloomington CU, Royal CU, Star Choice CU, TruStone Financial FCU and Wings Financial CU currently use ADM. For more information about American Deposit Management, contact MnCUN Vice President – Network Service Corporation John Ferstl by email or at (651) 288-5505.

Postal CU volunteer honored with Foundation CU Builder Award

James Pierce, former volunteer at Postal Credit Union in Woodbury, was posthumously honored with the Minnesota Credit Union Foundation's (MnCUF's) Credit Union Builder Award this month. This distinction recognizes those who have dedicated time and energy to building the credit union movement. Individuals are nominated for the award by credit unions and organizations that make contributions in honor of or in memory of a significant individual who has been instrumental in their success.

Pierce was a strong credit union supporter who gave his time and resources to the credit union movement. He was first elected to the Credit Committee at St. Paul Postal Employees Credit Union (d/b/a Postal Credit Union) in 1976 and served as its chairman from 1977-1978. He was elected to the Board of Directors in 1982 and elected board secretary in 1988. Pierce was a tireless supporter of Postal Credit Union and the credit union movement. In 1995, he was recognized for his contributions to the movement when he received the Minnesota League of Credit Union's first "Outstanding Credit Union Volunteer of the Year” award. After more than two decades of volunteer service, Pierce retired from the board in 2002. He passed away on July 18, 2012.

Pierce joins 12 other individuals who have been honored over the past five years with the MnCUF's CU Builder Award. The name of the recipient and the donating credit union or organization is permanently displayed in the Minnesota Credit Union Network's lobby through a display that serves as a tribute to the CU Builder recipients. The honorees (or their families, in the case of a memoriam contribution) receive acknowledgment from the Minnesota Credit Union Foundation, and donors are also listed online and in the Foundation's annual report.

"The strength of the credit union movement is found in the individuals who contribute their time, energy, resources and passion to credit unions,” said MnCUF Chair Pat Brekken. "The Foundation is honored that it can use its Credit Union Builder Award to pay tribute to these amazing individuals.”

To learn more about MnCUF's Credit Union Builder Award and to view a list of those who have been honored with this recognition, visit the Foundation website.

NCUA posts three new economic videos

As part of its monthly video series, the NCUA recently released its August economic update. This video is the latest in a series of YouTube videos that inform the public and credit unions about general economic and credit union specific developments.

The August video is divided into three segments, making it easier for viewers to obtain the information relevant to them. In the opening segment, NCUA Chief Economist John Worth reviews current economic trends and their impact on the national economy. Topics covered include labor market developments, housing market improvements and consumer confidence. The review also covers potential risks to the economy.

The second segment discusses the recently-released 2012 Annual Report of the Financial Stability Oversight Committee (FSOC). In the segment, Worth highlights two key FSOC recommendations of particular interest to credit unions – the need for improved emergency liquidity planning and access and how changes in interest rates can affect risk profiles. NCUA recently issued a proposed rule on emergency liquidity for federally-insured credit unions, and a new rule on interest rate risk that becomes effective in late September.

The final segment features an analysis of how anticipated future Stabilization Fund assessments for credit unions compare to anticipated Deposit Insurance Fund assessments by the Federal Deposit Insurance Corporation. The review shows that federally-insured credit unions can expect to pay less in assessments than federally-insured banks during the next decade.

To view the August economic update and others in the monthly series, visit the NCUA's official YouTube channel

Credit union recognition…

  • SPIRE FCU was recently named as the city of Roseville's best bank or credit union. This recognition was given as part of Roseville Patch's Readers' Choice contest where citizens voted on their favorite places and services in the city.

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