centerpoint 1q 2013

Stories Inside:

14 Sale/Leasebacks as a Source of Income 18 Financial Education

Taking Your Medicine 24 Mobile Lending is Here

A publication of the Massachusetts Credit Union League, New Hampshire Credit Union League and the Credit Union Association of Rhode Island

WINTER 2013

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FeaturesTable of Contents

New England Credit Union Services, LLC800-842-1242

Massachusetts Credit Union League, Inc.www.maleague.org

New Hampshire Credit Union Leaguewww.nhcul.org

Credit Union Association of Rhode Islandwww.cuassociationri.org

Daniel F. Egan, Jr., President

EDITORS:Robert B. KimmettMarguerite A. Thorsen

CONTRIBUTORS:Donna M. BevilacquaRobert DelaneyBonnie L. DoolinWilliam F. NagleBeverly PurtellCharlotte Whatley

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winter.2013 | centerpoint | 3

04MESSAGE FROM THE PRESIDENT

06CREDIT UNION NEWS

– League Presents $140,000 Check to Massachusetts Coalition for the Homeless

08COMMUNITY OUTREACH

– Credit Unions in Rhode Island Raise Funds for Hasbro Children’s Hospital/Children’s Miracle Network

– Digital Federal Credit Union Made Significant Donations This Holiday Season

– Wish Children Find a Winter Wonderland at the Make-A-Wish® Annual Holiday Party

– Service Credit Union Air Show Officials Donate $28,000 to Portsmouth High School and Krempels Center

– Pioneer Valley Federal Credit Union Donates $50,000 to Baystate Hospital

14SALE/LEASEBACKS

18FINANCIAL EDUCATION

24MOBILE LENDING IS HERE

26CREDIT UNION PEOPLE

30CALENDAR

page 20

6

11

Consumer Confidence BoostsBoosts

Auto LoansAuto LoansCredit Union

4 | centerpoint | winter.2013

Credit unions were established as member-owned, not-for-profit, democratically-controlled institu-

tions with a mission to promote savings and provide a resource for provident lending to their members. What drove the credit union movement from its earliest days was the con-viction that our institutions could make a dif-ference in the quality of life for working-class people. For over 100 years, credit unions have fulfilled that mission and taken on the addi-tional role of being community builders in the 21st century.

To the long-term believers in the credit union system, the benefits to consumers that have been highlighted by the media in recent years seem self-evident. The simple purpose of the credit union is to allow people to save and borrow in a safe and secure manner at fair rates. In today’s complex financial environment, the credit union mission has been expanded to provide financial education resources to all its members, young, old, working, and retired, so they can save and borrow for life-changing decisions, including higher education, home-ownership, financial planning, and retirement.

In the course of fulfilling its mission, the credit union has expanded its role into a true community building catalyst. Through small business loans, support of local institutions and charities with financial and volunteer as-sistance, and leadership for cultural and arts initiatives, credit unions are helping provide much needed assistance and support for all members of the community.

As a result of credit unions’ expanded roles in communities, as well as its service to its members, credit unions have become the

“model financial institutions for the 21st centu-ry.” As large banks and other non-bank finan-cial institutions continue to contribute to high risk ventures in order to drive higher profits, credit unions have distinguished themselves as an antidote to the financial maladies caused by the big banks.

Now that the media is acknowledging the emergence of credit unions as a positive force in the financial lives of consumers, state and federal legislatures and regulators must do the same. State legislatures and Congress must be-gin to act to expand credit unions’ ability to serve their members and their communities. Allowing for the deposit of public funds in credit unions on the local level and expanded powers for small business loans are two ex-amples of action which could and should take place quickly.

On the regulatory front, new regulations meant to correct the abuses of big banks and non-bank financial institutions should not be applied to credit unions, as credit unions had nothing to do with the abuses the regulations seek to remedy. The mere fact that banks op-pose credit union initiatives is in no way suf-ficient reason for credit unions and their mem-bers to be denied the benefits of increased use of and participation in a credit union. •

Daniel F. Egan, Jr., president

M E S S AG E F RO M T H E P R E S I D E N T | by daniel f. egan, jr.

During the last three years there has been an increasing number of references in the media to the benefits of credit unions for consumers. Many of those references focus on the not-for-profit, cooperative structure of the credit union, along with phrases like “people can get a better deal at a credit union.” These references are all true, but they don’t tell the whole story behind the benefit of credit unions.

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Massachusetts credit unions once again demonstrated their remarkable generosity by their support of the Massachusetts Coalition for the Homeless through the Credit Union Community Hope Initiative. The Credit

Union Community Hope Initiative reached its goal of $130,000 in December to support the coalition. In addition, the Massachusetts Credit Union League made a separate $10,000 donation to the coalition at its Annual Gala for

the “Bed for Every Child” initiative.At the December 12 meeting of the League’s

Social Responsibility Committee, Nicole James, committee chair, and League President Dan Egan, along with several committee

CREDIT UNIONSAttleboro Municipal Employees Federal

Credit UnionBerkshire Federal Credit UnionBillerica Municipal Employees

Credit Union Boston Firefighters Credit UnionBrookline Municipal Credit UnionBrotherhood Credit UnionCPCU Credit UnionCentral One Federal Credit UnionChelsea Employees Federal Credit UnionCity of Boston Credit UnionCredit Union of the BerkshiresCrescent Credit UnionDigital Federal Credit UnionEnergy Credit UnionEverett Credit UnionFreedom Credit UnionGrafton Suburban Credit UnionGreylock Federal Credit UnionHanscom Federal Credit UnionHarvard University Employees

Credit UnionHaverhill Fire Dept. Credit UnionIC Federal Credit Union

Industrial Credit UnionJeanne D’Arc Credit UnionLeominster Credit UnionLiberty Bay Credit UnionLowell Firefighters Credit UnionLuso Federal Credit UnionLynn Firemen’s Credit UnionM/A-COM Federal Credit UnionMAFCU Federal Credit UnionMass Bay Credit UnionMassachusetts Institute of Technology

Federal Credit UnionMassMutual Federal Credit UnionMembers Plus Credit UnionMerrimack Valley Federal Credit UnionMetro Credit UnionMyCom Federal Credit UnionNMTW Community Credit UnionNorfolk Community Federal Credit UnionPolish National Credit UnionPremier Source Credit UnionQuincy Credit UnionRAH Federal Credit UnionRTN Federal Credit UnionSanto Christo Federal Credit UnionSeaport Credit Union

Somerville School Employees Federal Credit Union

Southbridge Credit UnionSouthern Mass. Credit UnionSt. Anne’s Credit Union of Fall River, Mass.St. Anthony of Padua Federal Credit UnionSt. Jean’s Credit UnionSt. Mary’s Credit UnionSt. Vincent Hospital Credit UnionSTCU Credit UnionTewksbury Federal Credit UnionTremont Credit UnionUMassFive College Federal Credit UnionValleyStone Credit UnionW.H. Nichols Employees Federal

Credit UnionWemelco Credit UnionWoburn Municipal Federal Credit UnionWorcester Credit UnionWorkers’ Credit Union

CHAPTERSBerkshire County Chapter of

Credit UnionsMetro-Boston ChapterPioneer Valley Chapter

LEAGUE PRESENTS $140,000 CHECK TOMASSACHUSETTS COALITION FOR THE HOMELESS


C R E D I T U N I O N N EWS

Several members of the Massachusetts Social Responsibility Committee present Robyn Frost, Massachusetts Coalition for the Homeless, with a check for $140,000. Included in the presentation were (left to right) Robert Kimmett, Massachusetts Credit Union League; Paul Marotta, Hanscom Federal Credit Union; Jon Reske, UMassFive College Federal Credit Union; Charlene Bauer, Metro Credit Union; Robyn Frost, Massachusetts Coalition for the Homeless; Nicole James, RTN Federal Credit Union; Debra Lee Surface, St. Jean’s Credit Union; and Dan Egan, Massachusetts Credit Union League.

MANY THANKS …The Massachusetts Credit

Union League’s Board of Directors and Social Responsibility Committee members extend their sincerest gratitude to all the credit unions and chapters for helping reach the goal of $130,000 through the Credit Union Community Hope Initiative to benefit the Massachusetts Coalition for the Homeless. The generosity of the officials, staff, and members of so many credit unions throughout the state is a true testament to the philosophy of people helping people.

Listed at right are the credit unions and chapters whose generosity in 2012 had a profound impact in helping the coalition find long-term solutions to homelessness in Massachusetts.


members, presented Robyn Frost, executive director of the Massachusetts Coalition for the Homeless, with a ceremonial check for $140,000 representing the overall donation to the Coalition.

The donation was made possible by 65 credit unions from all over Massachusetts who supported and organized a wide variety of fundraising activities. The largest individual contribution came from Hanscom Federal Credit Union, Hanscom AFB, MA, which raised over $25,500 from an employee raffle, along with various other fundraising efforts.

MAFCU Federal Credit Union (now RTN Federal Credit Union, Waltham, MA) stepped up with a tremendous effort as well this year. The credit union raised $15,896 from their fundraiser, “The Walk Home.” This walk was held in Dorchester Park in early June and it attracted a host of eager walkers who represented many generous donors.

Hanscom Federal Credit Union stepped up with a tremendous effort as well this year. The credit union raised over $15,000 from an employee raffle, along with various other fundraising efforts.

Credit unions including Brotherhood Credit Union, Boston Firefighters Credit Union, Metro Credit Union, and St. Jean’s Credit Union contributed to the Credit Union Community Hope Initiative by hosting their own fundraising activities throughout the year.

These fundraisers together with the Annual Appeal, the Credit Union Community Hope Initiative Golf Tournament, candy sales, and chapter contributions made a tremendous difference, as Frost noted when she accepted the check. She praised the philanthropic spirit and philosophy of Massachusetts’ credit unions.

“The Massachusetts Coalition for the Homeless is so appreciative of the amazing partnership we share with the Massachusetts Credit Union League. Massachusetts credit unions ‘live’ and exemplify their sense of corporate social responsibility – ‘people helping people’ – throughout the year. Their impact has reached every corner of the state – and is key in assisting the Coalition’s mission to eradicate homelessness in Massachusetts,” said Frost.

Holidays brought additional care for the needs of the Commonwealth’s homeless from the credit unions of Massachusetts. From mid-November to mid-December, credit unions across the state collected toys for the Massachusetts Coalition for the Homeless. During January, credit unions and the League collected new blankets for the homeless to help them weather the winter. •

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The Credit Union Association of Rhode Island’s Social Responsibility Committee, through the Credit Unions for Kids initiative, recently presented the Hasbro Children’s Hospital, a Children’s Miracle Network (CMN) Hospital, with a check in the amount of $3,654.80, bringing a six-year total to nearly $19,000. Credit Unions for Kids is a national collaborative effort that raises money for local CMN affiliated hospitals including Hasbro in Providence.

Funds raised through the Credit Unions for Kids initiative help provide critical care, purchase life-saving equipment, fund groundbreaking research, and cover medical costs for uninsured or underinsured pediatric patients at Hasbro Children’s Hospital. In addition, the association received a “Miracle Match” grant through the CO-OP Financial Services Miracle Match Program for 2012, thereby doubling the donation to Hasbro bringing the amount given to Hasbro a total of $7,309.60. CO-OP Financial Services, in conjunction with Children’s Miracle Network and Credit Unions for Kids, created the Miracle Match program. This $1 million matching funds program encourages

credit unions and associations to create and participate in local CMN fundraisers.

The donation, made by Association Social Responsibility Committee members, was the result of the association’s two fundraising activities, Credit Union Casual Days, and the CO-OP Miracle Match grant to benefit Hasbro Children’s Hospital. The efforts made by the Association and additional CMN supporters provided the necessary funds for the hospital to renovate its surgical suite.

“Improving children’s health is at the heart of this donation,” said David Dupéré, Association Social Responsibility Committee chair. He went on to say, “From a child being admitted to a child recovering from treatments, the credit unions in Rhode Island are proud to partner with Hasbro Children’s Hospital in their commitment to providing the finest care for thousands of children in the Ocean State. Their dedication to excellence and innovation, while creating a comforting and compassionate environment for its patients, aligns Hasbro Children’s Hospital with the qualities that represent credit unions and their philosophy of ‘people helping people.’”

“We are so fortunate and thankful to be

awarded with this gift from our good friends at the Credit Union Association of Rhode Island,” said Dr. Thomas F. Tracy, Jr., pediatric surgeon-in-chief and interim medical director of Hasbro Children’s Hospital. “Without the ongoing support of the association and Children’s Miracle Network Hospitals, we would not be able to provide such exceptional care to our surgical patients and the sick and injured infants and children in our care. We are forever grateful to those in the community who help us help kids and families each day.”

In 2007, the Credit Union Association of Rhode Island selected the Credit Unions for Kids Children’s Miracle Network as one of the organization’s philanthropic endeavors. Made up of volunteers from credit unions throughout the state of Rhode Island, the Social Responsibility Committee works cooperatively and along with all Rhode Island credit unions, and is proud to have raised nearly $19,000 for the charity. Children’s Miracle Network Hospitals is a nonprofit international alliance of premier pediatric hospitals dedicated to saving and improving the lives of children by raising funds for lifesaving equipment, charity care, and cutting-edge research. Hasbro Children’s Hospital is one of 170 children’s hospitals affiliated with Children’s Miracle Network Hospitals providing the finest care.

Following the check presentation, members of the Social Responsibility Committee were given a tour by Hasbro Children’s Hospital Pediatric Surgical Coordinator Mark D’Aguanna, RN, of the newly renovated surgical suite. •

CREDIT UNIONS IN RHODE ISLAND RAISE FUNDS FOR HASBRO CHILDREN’S HOSPITAL/CHILDREN’S MIRACLE NETWORK

C O M MU N I T Y O U T R E AC H

Several members of the Credit Union Association of Rhode Island’s Social Responsibility Committee present the Hasbro Children’s Hospital – a Children’s Miracle Network Hospital with a check for $3,654.80 at the hospital’s newly renovated surgical suite. From left: Social Responsibility Committee members Kristin Rojas, Pawtucket Credit Union; Donna Bevilacqua, Credit Union Association of Rhode Island; Christopher Eden, People’s Credit Union; Nancy Zeppa, Rhode Island Credit Union; and Hasbro Children’s Hospital Administrative Director Myra Edens, RN.

DCU COMMITS $50,000 TO HELPING END HUNGER IN LOCAL COMMUNITIES FOR SECOND YEAR

Throughout the year, the employees at Digital Federal Credit Union (DCU) try to make a meaningful difference in the fight against hunger by donating their time, money, and food to local food banks and pantries. As they did in 2011, the credit union has made a commitment to helping end hunger in many of the communities that their employees and members live in by donating $50,000 to help feed the hungry. The following 16 organiza-tions will share in the donation: • Burlington Food Pantry – Burlington,

MA• Catholic Charities Food Bank –

Leominster, MA• Community Supper, Inc. – Acton, MA• Franklin Food Pantry – Franklin, MA• Greater Boston Food Bank – Boston, MA

• Lazarus House Ministries, Inc. – Lawrence, MA

• Loaves & Fishes – Ayer, MA• Marlborough Community Services –

Marlborough, MA• Merrimack Food Bank – Lowell, MA• Nashua Soup Kitchen & Shelter – Nashua,

NH• New Hampshire Food Bank – Manchester,

NH• United Way of Tri-County Food Bank –

Framingham, MA• Veterans Inc. – Worcester, MA• Waltham Salvation Army – Waltham, MA• Westborough Food Pantry –

Westborough, MA• Worcester County Food Bank –

Shrewsbury, MA

“These organizations have done outstand-ing work in identifying local hunger problems, developing the best practices in food distri-

bution and nutrition services, and communi-cating about the need that exists,” said John LaHair, DCU public relations manager. “We proudly support them in all their efforts to create a hunger-free community.”

DCU SPONSORS COMEDY FUNDRAISER WITH $50,000 DONATION

DCU employees, along with nearly 5,000 smiling faces, turned out to support “Comics Come Home 18” to benefit the Cam Neely Foundation and their quest to help children and families who are battling cancer at the Agannis Arena in Boston on November 17.

DCU for Kids, the credit union’s charita-ble foundation, sponsored the event through a donation of $50,000. The event featured Dennis Leary and a number of other great co-medians with over $330,000 raised to support those undergoing cancer treatment at New England Medical Center. •

DIGITAL FEDERAL CREDIT UNION MAKES SIGNIFICANT DONATIONS THIS HOLIDAY SEASON


Digital Federal Credit Union employees celebrate DCU’s sponsorship of “Comics Come Home 18,” benefiting the Cam Neely Foundation.


WISH CHILDREN FIND A WINTER WONDERLAND AT THE MAKE-A-WISH® ANNUAL HOLIDAY PARTY

The New Hampshire credit union com-munity has had a long relationship with the Make-A-Wish Foundation® of New Hamp-shire – characterized by many hands on projects as well as fundraising. These person-alized projects help cement this dedicated bond. One of the favorite of these activities for both the wish kids and the credit union community is the annual holiday party.

On Sunday, December 2, the Jefferson Mill Building in Manchester, NH, was trans-formed into a winter wonderland for more than 150 wish children and their families at the annual Make-A-Wish Foundation® of New Hampshire’s holiday wish family/wish granter reunion. More than 500 people en-tered the wintry setting for an afternoon of fun, eating, socializing, and many activities. The event is held each year to bring families together to enjoy a fun day meeting new fam-ilies, reuniting with their wish granters, and other volunteers.

Volunteers from several credit unions helped wish children decorate a gingerbread snowman. They included: America’s Credit Union Museum, Manchester – Peggy and Dick Powell; Granite State Credit Union – Megan Durepo, Ashley Durepo, and Terri Smith; MembersFirst Credit Union of N.H., Manchester – Alyssa Mulhern and Stephanie Emery; New Hampshire Federal Credit Union, Concord – John and Linda Young, Polly Saltmarsh and Ann Malvey; and Service Credit Union, Portsmouth – Joanne Nadeau, Lesley Forde Conway, Al-lison Brown, Stephanie Sawicki, and Crystal Chapple. •

Social Responsibility Committee member, Polly Saltmarsh and, volunteer Ann Malvey, both from New Hampshire Federal Credit Union, help two wish children decorate their gingerbread snowmen.

Wish child Sam (right) watches intently as the wish child beside him decorates her cookie. He’s trying to plan how he wants to decorate his own.



SERVICE CREDIT UNION AIR SHOW OFFICIALS DONATES $14,000 TO PORTSMOUTH HIGH SCHOOL AND KREMPELS CENTER

The Brain Injury Association of New Hamp-shire, the Daniel Webster Council Boy Scouts of America, and Service Credit Union officials pre-sented contributions of $14,000 each to Ports-mouth High School and the Krempels Center.

The donation was part of the proceeds from the 2012 Service Credit Union Boston-Portsmouth Air Show featuring the United States Navy Blue Angels.

Proceeds from the air show also helped support two organizations, the Brain Injury Association of New Hampshire and the Daniel Webster Council Boy Scouts of America, as well as a multitude of other New Hampshire non-profit organizations including the Make-A-Wish Foundation® of New Hampshire.

“Service Credit Union was delighted to be

the proud title sponsor of the 2012 Service Credit Union Boston-Portsmouth Air Show at the Ports-mouth International Airport at Pease. As the title sponsor of this tremendous event, we are honored to take a leadership role in serving our communities,” said Karen Benedetti, vice president of marketing at Service Credit Union. “We take pride that we can help our local organizations with some of the pro-ceeds from the air show.”

Daniel Webster Council Boy Scouts of America Executive Director Mike Kauffman and Brain Inju-ry Association of New Hampshire Executive Direc-tor Steve Wade were on hand as Benedetti presented the check to Portsmouth High School Principal Jeffrey Collins during a recent Pease Development Authority meeting. •


Service Credit Union Vice President of Marketing Karen Benedetti (left) presents a check for $14,000 to Portsmouth High School Principal Jeffrey Collins. The credit union made the donations as part of the proceeds from the Boston-Portsmouth Air Show.

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PIONEER VALLEY FEDERAL CREDIT UNIONDONATES $50,000 TO BAYSTATE HOSPITAL

Pioneer Valley Federal Credit Union (PVCU) helps Baystate Health to open the doors to the hospital of the future for patients at the Davis Family Heart and Vascular Cen-ter, the new wing of Baystate Hospital. On August 24, members of the board and staff of PVCU presented members of the staff of Baystate Health with a check for $50,000 to help with the development of the new hos-pital wing. The donation will be used to help patients throughout the local community to have access to state-of-the-art medical care. •

Left to right: Barbara Linton, Baystate Health; Mark Tolosky, president and CEO, Baystate Health; Larry Emerson, Baystate Health, receives a donation from Richard Borden, Orlando Braz, and Ted Klekotka, directors, PVCU; Kathy Fratamico, chair of the board, PVCU; Anabela Pereira, president and CEO, PVCU; Jennifer DeMoe, vice president, finance and operations, PVCU; and Trecia Marchand, vice president, marketing/business development, PVCU.

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SALE/LEASEBACKS A Source of Credit Union Income and LiquidityBy Steven Eimert

In this challenging environment, many credit unions have another, untapped source of profit and capital – owned branches and other oper-ating facilities that can be sold for a profit and leased back so as to permit uninterrupted opera-tions. Such “sale-leasebacks” can create synergis-tic value by placing the real estate in the hands of investors who can realize tax benefits from real estate ownership that a non-taxable credit union cannot, and allow credit unions with excess space to downsize their bricks and mortar footprint.

Sale-leasebacks have long been a capital-raising strategy for banks, which see ownership of real estate as a low-return, non-core business activity. If properly structured, a sale-leaseback will transfer ownership from the credit union to an investor-purchaser (typically but not always an existing, professional commercial real estate investor), remove the property and any related liabilities from the credit union’s balance sheet and result in recognition of gain which is tax-free because of the credit union’s special status.

Sale-leasebacks offer many advantages. They allow for tax-free realization of appreciation embedded in fixed assets, increasing liquidity, earnings and capital, expanding lending capac-ity, and providing funds for other purposes, such as non-loan investments and/or special divi-dends. They transfer valuable tax deductions as-sociated with real estate ownership from credit unions which cannot use those deductions to taxable investor-purchasers which can, creating new value. They permit credit unions which are looking to downsize to remain in part of their facilities while allowing the investor-purchaser to lease excess space to non-credit union tenants, a flexibility most credit unions do not – by law – have. And, although a variation on the typical deal structure, the seller credit union can itself sometimes provide a member business loan to finance all or part of the debt portion of the pur-chaser’s acquisition cost.

In addition to financial and operational objectives, credit unions considering a sale-leaseback also must consider accounting conse-quences in deciding whether to pursue and how to structure the deal. There are very specific rules for sale-leasebacks. These include bona fide, com-mercially reasonable terms, so that the seller has made a meaningful investment in the property, and the credit union has no continuing econom-ic involvement other than its rights under the lease. Also, the gain on a sale-leaseback generally cannot be recognized in a lump sum but must be reflected in the credit union’s income statement ratably over the lease term.

Some specific issues to note:• Accounting rules prevent the credit union

from retaining an option to buy back the property at the end of the lease, and likewise the buyer cannot have the ability to force the credit union to buy it back. Less formal ar-rangements giving the credit union first crack at a buyback, such as a right of first refusal, are permissible, however, if properly structured.

Credit union income continues to be squeezed. Interest rates

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assessments, rise. Larger credit unions augment their income

with ancillary business lines, but those strategies require upfront

investment and often have only limited effects on the bottom line.

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• Once the credit union leases back the property, it cannot later sublease more than 10 percent of it to third parties. If part of the reason for the deal is the credit union’s desire to shed excess space, it can accomplish that goal by leasing back only that part of the property it needs going forward, and letting the new owner lease the rest of the space directly to third parties.

• The buyer’s down payment from sources unrelated to financing provided by the seller-credit union should be at least 20 percent of the purchase price. Given prevailing commercial real estate underwriting guidelines that often see buyer equity of between 25 and 40 percent of the purchase price, this should not be a practical problem.

• If the credit union provides the financing, the loan terms must be com-mercially reasonable (including full recourse to the buyer and not just the property) and there cannot be a bullet payment at maturity. Since NCUA and other regulators typically limit member business loans to relatively short terms, around 15 years, and most permanent commercial real estate loans provide meaningful amortization, this should not be a problem, either.

• The mortgage loan cannot be on a participating basis, where the credit union shares any portion of the potential appreciation of the property.

• The credit union lease term generally cannot exceed 75 percent of the estimated economic life of the property, nor can the present value of the future, fixed rent exceed 90 percent of the property’s value. These rules will disqualify some older buildings from sale-leasebacks.

• NCUA permits federal credit unions to engage in sale-leasebacks, subject to certain requirements (see IRPS 81-7 (9/11/81)), while state charters must look to their state rules to ensure compliance.

The critical factors in determining the economic value of a possible sale-leaseback are the amount of unrealized appreciation in the property and the length of the lease term that can be negotiated. These will determine how much gain will be realized by the credit union and how quickly it can be taken into its income statement and balance sheet. To maximize the financial benefit of a sale-leaseback, the credit union has an incentive to negotiate the shortest possible initial lease term over which it must recognize the gain on the sale of the leased property. Although this and other key terms are subject to negotiation, current capital market norms have pushed the initial lease term expectation to a range of 10 to 15 years. Of course, whatever the gain recognition period in a given deal, a sale-leaseback still liberates gain which otherwise would remain trapped indefinitely in the credit union-owned premises, and also will provide immediate liquidity.

While sale-leasebacks in the credit union world remain relatively rare, they offer many institutions the opportunity to enhance their earnings, capital and liquidity while preserving their operations uninterrupted. They provide a means to dispose of excess space while presenting the credit union with a major business lending opportunity. However, the transaction must be struc-tured carefully to achieve the desired business and accounting outcomes, and comply with any applicable regulatory requirements. Advice from legal, ac-counting, and commercial real estate consultants is a must. •

Steven Eimert is a partner and chair of the credit union practice at Sherin and Lodgen LLP of Boston, an associate member of the League. He can be reached at (617) 646-2283 or [email protected].


SALE/LEASEBACKScontinued from page 14

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FINANCIAL EDUCATIONTake your Medicine and Life will be GoodBy Robert B. Kimmett

What kind of things? Well, here’s an exam-ple. Have you watched the nightly news lately? Three out of four advertisements are hawking some kind of pharmaceutical product, prescrip-tion and non-prescription. These folks are ad-dressing issues that my mom told me “polite people don’t discuss in public.” So, how do you fashion a pitch for this kind of stuff ?

It’s really quite simple. You market it the same way a savvy marketer sells almost every-thing, by appealing to the consumers self in-terest. In the case of big pharma on the nightly news, the message isn’t just, “buy a couple of bathtubs and plunk them in the back yard.” The message is “take your medicine and life will be good.”

The financial products and services that your credit union offers are usually associated with positive things: saving for college, buying a car, making money available for purchases at the market. However, some credit union mem-bers need help with financial problems that they would, more often than not, prefer to ignore. The severity of the problems can vary. Some are

extreme and immediate, such as home foreclo-sure, auto repossession, and insolvency. Others are more nagging, like how to make ends meet or save for tuition.

In order to communicate with the people who need financial outreach services, the credit union must first commit to a message that is go-ing to both reach and resonate with the mem-bers in that target group. Keep in mind, when you are introducing a new idea, you have to walk the consumer through a number of levels of understanding. A simple way to look at this problem is defined by the AIDA model: Atten-tion, Interest, Desire, and Action. Unfortunate-ly, there aren’t many situations where a single communications activity (be it an ad, poster, or conversation) is going to march a consumer from “Who are you?” to “You bet! Where do I sign?”

So what needs to be done to ensure that the credit union can make sure that its members who need help get it? To begin, the credit union should make certain that its commitment to the financial success of its members is clearly spelled

out in its public identity. It should be a major part of how the credit union presents itself to the membership. The credit union should be dispensing pro-consumer, financial advice on its website, in its newsletter, and in the credit union. Financial seminars and counseling ses-sions are a good way to do this as is a consumer financial library.

The credit union must also make the of-fering tangible. Many work with an outreach partner, a non-profit that specializes in financial counseling, debt relief, housing advocates, etc. In some cases, the credit union builds its own program or educational offering. Unfortunate-ly, just saying that you are there to help will not yield maximum results. That sort of offer doesn’t give the target market an easy way to respond.

Next, the credit union has to reach out to the members to make them aware of the specific solutions that it has available. The message has to be positive and solution-oriented. They also must be limited. Too many options will create confusion. The credit union should concentrate on those services for which there is the greatest need.

Finally, the credit union should, insofar as it is possible, target the message to the right audi-ence. For example, insert a stuffer in the state-ment envelopes of the members who are chroni-cally past due on their loans or overdraw their accounts. Again that message should be positive and non-threatening. It should have more of a “we offer this” tone than a “you need this” tone. Also, consider the possibility of secondary com-munication. Often, it will be a family member or friend that intervenes with someone having financial difficulties. If you can communicate with the mother, uncle, or friend of someone who is suffering, they might know how to de-liver that message at the right time.

It’s not easy to ask your members to take their financial medicine, but in the long run it will be in their best interests. By providing for their financial health of your members, you will be following the finest tradition of the credit union movement. •

Rob Kimmett is senior vice president, public relations and marketing, for the Massachusetts and New Hampshire Credit Union Leagues and the Credit Union Association of Rhode Island.

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Consumer Confidence Boosts

Auto LoansCredit Union

in 2012

Continued on page 22

L ast year brought good news for the auto industry – and, by extension, credit unions. Car sales took a giant leap upward in 2012, a showing even auto sales forecasters

had not anticipated. High auto sales equates to lots of auto loans, traditionally a strong area for credit unions.

New England institutions are celebrating – and hoping to see a productive 2013.

“We had a fabulous year,” said Anne Nelson, consumer loan manager for Marlborough, MA-based Digital Federal Credit Union, adding that loans were up 22 percent in 2012 compared to the previous year. And for an additional boost, high lending activity has continued into January, in contrast to the usual slump that arrives with the cold, post-holiday beginning of the year.

Other New England credit unions were also largely upbeat, and their experiences parallel a national trend in increased sales activity.

UP ACROSS THE NATIONSales of new cars were up by 13.3 percent in 2012

nationwide, with 14.5 million new cars sold compared to 12.8 million in 2011, according to Edmunds.com, a national automotive research firm. Used-car sales also grew, albeit less impressively – total sales, which includes independent dealers, franchises, and individuals, went up by 2.2 percent.

When the economy went haywire in 2008 at the height of the recession, credit unions across the country and in New England tightened lending requirements. Last year, as the economy and consumer confidence improved, lending requirements reverted to pre-recession standards, boosting purchases of new cars and associated loans.

Increased consumer confidence also played a role, as consumers replaced aging vehicles they had held onto for longer than usual during the austere recession and uncertain following years.

DCU’s Nelson noted that low interest rates gave lending a big boost, and a number of credit union sources agreed that they’d become more flexible on lending standards since the economic turnaround.

UP IN NEW ENGLANDBob Nealon, the Massachusetts-based regional vice

president for CU Direct Corporation, a credit union service organization, said the stats indicate credit unions in New England are capitalizing on the upswing.

In New Hampshire, the top 10 credit unions in the state made 27,807 loans in 2012, compared to 23,607 in 2011 – a 17.8 percent increase, he said, quoting from Experian Automotive’s AutoCount Lender Summary Reports. In comparison, total auto lending for the state only went up by 9.7 percent.

BY LAURA SCHREIER


In Massachusetts, top credit union lenders fared slightly worse overall: The top 10 credit unions’ lending activity went up by 5.3 percent for the first 11 months of 2012 versus the same period in 2011, in comparison to a 6.1 percent increase for all

lenders (December 2012 numbers aren’t yet available for Massachusetts).

Rhode Island doesn’t release that specific data, Nealon said, although Experien reported that total loans for all lenders were up by nearly 9 percent. Taken altogether, it’s

a much brighter picture than auto lenders had seen in recent years, post-recession.

WORKING WITH DEALERSHIPS “There are more and more loans to be

had,” but credit unions have to be smart if they are going to increase their business, Nealon said, and noted that some credit unions still approach him with concerns that they are missing out on the loan market.

Credit unions’ biggest competitors are the dealerships themselves, which offer in-house financing; Nealon’s CUSO, however, sells the technology that makes credit unions able to lend through the dealerships. CU Direct’s products allow borrowers to apply for credit union loans straight through the dealerships.

Offering that convenience – getting out in front of auto buyers as they are in the dealership – is the best way to get a leg up on the competition, he said, and it’s important to make that credit union-dealership relationship work smoothly and easily for all parties.


CREDIT UNION AUTO LOANScontinued from page 21

National Segment Totals, Ranked by December Unit SalesDec. 2012 % Change from

Dec. 2011YTD 2012 % Change from

YTD 2011

Cars 648,316 15.4 7,414,282 18.8

Midsize 286,448 3.4 3,588,099 17.6

Small 250,982 32.3 2,781,860 26.8

Luxury 110,094 18.3 1,035,189 11.6

Large 792 -50.6 9,134 -86.6

Light-duty trucks 707,682 3.7 7,077,591 8.3

Pickup 204,683 0.8 1,941,567 6.7

Cross-over 291,176 9.3 2,998,723 9.3

Minivan 74,547 -6.5 833,468 13.5

Midsize SUV 72,185 7.2 708,527 9.3

Large SUV 29,157 -1.5 237,550 -9.1

Small SUV 16,774 -1.5 197,265 13.4

Luxury SUV 19,160 0.6 160,491 2.3

Total SUV/Cross-over 428,452 7.3 4,302,556 8

Total SUV 137,276 3.2 1,303,833 5.1

Total Cross-over 291,176 9.3 2,998,723 9.3

Source: www.motorintelligence.com

Some credit unions prefer to work through dealerships, while others prefer to lend directly to members. But regardless, analysts say, it’s essential that credit unions get the word out about their lending programs. Especially if the institution is doing direct lending and not working through any dealerships, it must communicate its offerings to members before they head off to the dealership in the first place.

CU Solutions Group, for example, is a credit union service provider that offers credit union member discounts on GM vehicles. Lisa Rizk, senior vice president of sales and partner relations, said credit unions usually offer much better deals to consumers than other financers working through dealerships, but members often miss out simply because they aren’t aware of their options.

“It really is a matter of educating the members,” she said. To that end, CU Solutions Group has been ramping up its own marketing efforts, advertising through Gas Station TV, for example, and urging more people to get financing through credit unions.

WORKING WITH MEMBERSOther credit unions are also busy

reaching out to their own membership bases. Service Credit Union, based in

Portsmouth, NH, makes it a point to market its fast decision-making and low rates to members, according to Fawn Terwilliger, vice president of lending. Service has marketed its low rates, and launched campaigns claiming it will beat any competitor’s auto loan rate. That has helped lead to big success for the credit union, she said, which does both direct and indirect lending.

Michael Murphy, CEO of Holyoke Credit Union in Massachusetts, said his institution has worked to connect with members and, in addition, has taken steps to help borrowers get loans they might not have gotten during the height of the austere recession and post-recession years.

A credit score is not the only means by which a member’s credit worthiness is judged, as lenders look at mitigating factors and place restrictions on a member’s loan. “If that member can put in a down payment, for example, and the credit union can secure a deposit account that automates payments, then the lender is more likely to feel

confident in the borrower’s ability to repay,” Murphy said.

Lars Farnham, vice president of indirect lending with Warwick, RI-based Greenwood Credit Union, said his institution has also been more flexible about its restrictions on loans. But Farnham stressed that institutions should proceed with caution.

Lending is a vital income generator for banks and credit unions, and a lot of CFOs are sitting on a ton of cash that isn’t yielding a big return elsewhere, he said, so it’s tempting to start an indirect auto lending operation through dealerships, for example, or to loosen standards in order to push loan volumes higher.

“It happens all the time,” he said, but it can be analogous to the pre-recession mortgage frenzy in that some borrowers aren’t actually qualified for those loans. That, as everybody has already seen, can get ugly – hence, Farnham’s calls for sensible lending.

“It’s a great way to make some money, but you’ve got to be very careful.” •

Laura Schreier is a writer for The Warren Group, publisher of CenterPoint.


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MOBILE LENDING IS HEREChanging the Way Credit Unions Do Business

While most credit unions have online loan applications, many have not yet customized them for the mobile channel (both phone and tablet), which makes completing a loan applica-tion on a smartphone cumbersome. That’s why CUNA Mutual Group launched SmartPhone Loans almost two years ago to be the mobile solution to their online lending platform – loanliner.com®. Since launch, mobile applica-tions have increased steadily and now account for more than 12 percent of total loanliner.com applications, translating to over a half a billion dollars in loan applications by the end of 2012*.

“The mobile channel is growing dramati-cally,” said Steve Hoke, director of loan growth products at CUNA Mutual Group. “Credit unions that ignore it do so at their peril. Not only does the SmartPhone Loan technology help credit unions grow loans through higher comple-tion rates, but it also makes it easier for members to express interest in payment protection as part of the application process. We find that members do so roughly 50 percent of the time, making it much easier for lenders to include payment pro-tection on the loan at closing time*.”

SmartPhone Loans is a web-based solution that allows CUNA Mutual Group to make compliance updates without any distribution or maintenance challenges. Loanliner.com detects the incoming browser and reformats the screen to display all the required disclosures on that particular device. SmartPhone Loans interfaces

with more than 90 percent of the loan origina-tion systems serving credit unions and has the ability to use the automated underwriting en-gine within the loan origination system to de-liver a real-time credit underwriting decision to the member.

When National Credit Union Administra-tion (NCUA) Chair Debbie Matz addressed the CUNA Governmental Affairs conference on March 19, 2012, she pointed out that with the average age of a credit union member being 47 and the peak borrowing ages of consumers being between 25 – 44, if credit unions want to make the loans they will need to survive in the years to come, they will need to attract new, young members.

“If you don’t offer what they expect,” said Matz, “they will take their business elsewhere. That’s why it’s absolutely essential that you use all the tools at your disposal to win over the next generation. If your goal is to attract new, young members, then you need to adopt new technol-ogy.”

Source: September 2012 internal CUNA Mutual Group reports.

For more information about SmartPhone Loans and loanliner.com technology today, contact your CUNA Mutual Group Sales Executive or call CUNA Mutual Group at (800) 356-2644 to learn more.

Credit union members are no longer satisfied with simply being able

to check their account balances and transfer money online. Today,

with 50 percent of U.S. consumers owning a smartphone (Neilson

Mobile Insights, March 29, 2012), credit unions are expected to

provide lending services through their member’s preferred channel,

and for a whole new generation, that channel is mobile.

“It’s primarily people in

their 20s and 30s who are

applying on their tablets

or mobile devices, with the

average age being 32.”

Norb Adrian, chief systems officerCentra Credit Union

Columbus, Indiana


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NH Federal Credit Union Appoints Julie Raposa to Board

Julie Raposa of Chichester, NH, was recently appointed as an interim director for NH Federal Credit Union (NHFCU). Raposa will fill the va-cancy that was left after

long-time NHFCU director Edward Mc-Cann retired from the board after 19 years.

Raposa graduated in 1970 from Bridge-water State University with a bachelor’s degree in science and mathematics. She had previously worked for Citizens-Union Savings Bank in Fall River, now BayCoast Bank, in Massachusetts from 1977 until her retirement in 2006, most recently holding the position of senior vice president.

Her experience in marketing, human re-source management, and branch administra-tion demonstrates a high level of education and responsibility throughout her career. Raposa serves on the Chichester Old Home Day committee and previously served on other committees such as the United Way of Greater Fall River and Kiwanis Club of Fall River. She has been a member of NHFCU since 2012 and currently serves on NHF-CU’s Personnel Committee.

Trust for Credit Unions Adds Jim Regan, CEO of DCU, as Trustee

The oldest and largest mutual fund created for and by credit unions, Trust for Credit Unions, has ap-pointed Jim Regan as a trustee of the funds, ef-fective Jan. 1, 2013.

Regan has been an active participant in Callahan Credit Union Financial Ser-vices Limited Liability Limited Partnership (CUFSLP), the administrator of Trust for Credit Unions (TCU), for more than 10 years. CUFSLP is a CUSO comprised of 36 leading credit unions.

Currently president and CEO of Digital Federal Credit Union (DCU), Marlbor-ough, MA, Regan has been a part of the credit union community since 1992, when

he joined DCU as an internal auditor and later served as its chief financial officer.

In response to his new appointment, Re-gan said, “The trust’s 25-year track record is a testament to its relevance as an invest-ment option for credit unions. The indus-try needs to be able to continue to develop investment vehicles that fit credit union balance sheets, and TCU provides a great platform for doing just that. I look forward to joining the trustees and working on the next evolution of the TCU fund family.”

Jim Barr, chairman of the TCU board, said, “Jim brings an important perspec-tive with his experience as an investor in the TCU funds, as well as his involvement with CUFSLP. Paired with his credit union management credentials, Jim is a valuable addition to the board.”

According to Chip Filson, president of TCU, trustees are a vital component in the trust’s organizational structure. They over-see the performance of all the service pro-viders and ensure that compliance and risk management practices are always up to date.

The trustees of TCU are elected by the shareholders. The combination of experi-ence and independence reflects both the cooperative design and SEC regulations for trustee selection.

Southworth Appointed Interim CEO of Leominster Credit Union

Carol Southworth, senior vice president, re-tail, has been appointed interim president and CEO at Leominster Credit Union, Leomin-ster, MA. She replaces former President and

CEO Paul Gilbody, who recently resigned.Southworth, who has worked in the fi-

nancial services industry for more than 20 years, joined the credit union in 2001. In her role as senior vice president of retail, she oversees all branch activities, call center, facilities, financial education, and bank se-curity. She previously held management po-sitions at Fleet Bank and Commerce Bank and Trust. She is active in the local commu-nity and serves on several boards.

“We have every confidence that the

management of the credit union will be in good hands under Carol’s leadership, and that she has the full support of LCU’s board and executive management team,” said An-thony A. Gasbarro, chairman of the board.

Gasbarro indicated that Gilbody, who was named to the position in August 2012, resigned on amicable terms.

According to Gasbarro, the board will immediately embark on a search to identify and appoint a new president/CEO.

Service Credit Union Globe Dedicated to President and CEO Gordon Simmons

The Service Credit Union, Portsmouth., NH, board of directors proudly dedicated its globe sculpture to President and CEO Gordon Simmons at the conclusion of their grand opening ceremonies.

More than 250 people attended the event at the credit union’s new LEED-cer-tified corporate offices building in Ports-mouth. The spherical steel representation of the Earth is 10 feet in diameter with three outer rings and is situated on the eastside of the new corporate offices.

Board of Directors Associate Member Joanne Whiting cited Simmons for his commitment, dedication, and leadership, saying of his tenure, “assets went from $280 million to over $2 billion. We are the 61st largest credit union in the U.S. We had 70,216 members in 1995 and have more than 168,000 members now.” Under Sim-mons’ watch, Service Credit Union was one of the first of 24 credit unions to introduce a website. Online banking and bill pay was launched. Shared branching, e-statements, guaranteed pay, instantly-issued credit and

Julie Raposa

Jim Regan

Service Credit Union President/CEO Gordon Simmons stands outside Service Credit Union Corporate Offices overlooking the sculpture.


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debit cards, mobile banking, mobile apps, remote check deposit, and PopMoney all became a reality under his leadership.”

The dedication plaque reads “Gordon Simmons, whose global perspective and visionary leadership has contributed so greatly to Service Credit Union’s growth and success.”

The globe was designed by Kim Brandell of Brandell Studios in Key Largo, Florida.

In MemoriamWoodlands Credit Union, Berlin, NH,

formerly United Brotherhood Credit Union, mourned the passing of a distin-guished former director and officer, Antho-ny T. Cellupica, who passed away on Octo-ber 29 at the age of 91. A 40-year member of the credit union, he served many years on the credit union’s board of directors, in-cluding the office of president.

The board and staff of the League ex-tended their most sincere sympathies to the Cellupica family.

Senior Vice President of Jeanne D’Arc Credit Union Retiring

Jeanne D’Arc Credit Union, Lowell, MA, announced that Kath-leen Grieco, senior vice president and chief lending officer, retired on December 31, after 20 years of service to

the credit union.Kathleen Grieco joined Jeanne D’Arc

Credit Union in 1992 as assistant vice president of mortgage lending. Throughout her tenure, she has overseen consumer and mortgage lending as well as collections. She has more than 30 years of financial manage-ment experience in the banking industry.

“Kathy’s leadership and insight has been valuable to our organization,” said Mark S. Cochran, president and chief executive of-ficer. “She has been a strong advocate for our members and employees alike. We ap-preciate Kathy’s commitment to the credit union’s success and all that she has accom-plished over her career.”

Jeanne D’Arc Credit Union Promotes Dame, Bisson

Mark S. Cochran, president and chief execu-tive officer of Jeanne D’Arc Credit Union, Lowell, MA, announced the pro-motions of Kathryn Dame and Anne-Marie Bisson.

Kathryn Dame has been promoted to vice president of branch admin-istration. Dame has worked at Jeanne D’Arc Credit Union for 17 years in many different capacities, from teller, to corporate train-ing, to her current role as

branch administrator, in which she oversees the six branch offices of the credit union. She is a graduate of UMass Amherst. Dame is the presi-dent-elect of the Dracut Rotary Club, the presi-dent of Ste. Jeanne d’Arc School Athletic Booster Organization, and is a coach for Jeanne D’Arc Credit Union’s MoneyStrong for Life Challenge.

Anne-Marie Bisson has been promoted to vice president of financial education. Bisson has worked at Jeanne D’Arc Credit Union for 22 years in many different capacities, from teller, to member service representative, to her current role in financial education, in which she oversees the credit union’s high-school branches as well as all aspects of the credit union’s financial education efforts. She is a member of the Lowell Public Schools superintendent’s Advisory Board, North-east regional coordinator and treasurer of the Na-tional Youth Involvement Board, a member of the Massachusetts Credit Union League Financial Literacy Committee, and a trustee at Ste. Jeanne d’Arc School. Bisson is a graduate of the city of Lowell’s Public Matters program and is the presi-dent and founder of Catie’s Closet.

Northeast Credit Union Announces Promotions of Senior Management

Northeast Credit Union, Portsmouth, NH, announced the pro-motion of two vice presi-dents. Robert Wester, vice president of opera-tions, has been promoted to the position of senior

vice president of operations, and Thomas Weaver, vice president of lending, has been promoted to the position of senior vice presi-dent and chief lending officer.

“Robert and Tom have both been instru-mental in the growth and success of Northeast Credit Union over the past years,” said Peter J. Kavalauskas, president and CEO of North-east Credit Union. “Their vision, experience, and dedication to serving member needs will help position the credit union for even greater growth as it continues to fulfill its mission of providing safe, high-quality financial services to meet the needs of its member-owners. We are fortunate and excited to have such accom-plished staff.”

Thomas J. Weaver joined the credit union in 2007 and has over 25 years of lending expe-rience. Prior to joining Northeast, he worked at TD Bank as vice president and Northern New England sales manager. He is a member of Credit Union Direct Lending’s (CUDL) Advisory Board and he runs Northeast Credit Union’s indirect lending CUSO, IAS.

Robert H. Wester is a graduate of Northampton Junior College with a degree in business management; he also completed business management courses at New Hamp-shire College. He joined the credit union in 2006 and brings over 38 years of banking ex-perience. Prior to joining Northeast, Wester was vice president of operations at Washing-ton Mutual and Providian National Bank. Active in his community, he is a member of the Kennebunk Portside Rotary Club, an or-ganization for which he served as president in 2011-2012.

STCU Credit Union Hires Maria T. Lopez as Assistant Vice President

STCU Credit Union, Springfield, MA, hired Maria T. Lopez as assis-tant vice president of the Westfield, MA, branch.

Lopez brings with her over 23 years of ex-perience, 13 in mortgage

lending. She graduated magna cum laude from Elms College, earning a bachelor’s de-gree in business management and marketing. She speaks Spanish and English.

Kathryn Dame

Robert Wester

Maria T. Lopez

Anne-Marie Bisson


Kathleen Grieco

Granite State Credit Union Appoints Four Assistant Vice Presidents

Granite State Credit Union (GSCU), Man-chester, NH, has an-nounced the appoint-ment of four assistant vice presidents to its management team. The promotions include: Tracey Healey to as-sistant vice president, branch operations; Jen-nilene Johnson to as-sistant vice president, mortgage and commer-cial lending; Lisa Egan to assistant vice presi-dent, consumer lend-ing; and Lisa Reeder to assistant vice president, technology.

“Tracey Healey, Jenn Johnson, Lisa Egan, and Lisa Reeder have each demonstrated tremendous dedication and represent a core group of expertise with-in Granite State Credit Union,” notes Denise L. Caristi, president and CEO. “Their individual and collective contribu-

tions to the organization have played a signifi-cant role in the growth that the credit union has realized in the past several years. The ap-pointment of these assistant vice presidents to our management team will assist GSCU in upholding its tradition of service excellence to its members while continuing to build upon expanded operations and advancements throughout New Hampshire.”

In her 19-year career with Granite State Credit Union, Healey has demonstrated cross-functional knowledge in her roles as Manchester branch supervisor, credit resolu-tion supervisor, and branch sales and service manager. Her experience has encompassed consumer lending, branches, and credit reso-lutions. Healey holds a bachelor’s degree in business administration from Southern New

Hampshire University.As the mortgage and commercial lending

manager, Johnson has maintained respon-sibility for the growth of the mortgage and commercial lending portfolio. Johnson, who has been with Granite State Credit Union for 17 years, has also held the positions of mort-gage servicing and underwriting, mortgage loan manager, and business development of-ficer. Johnson has her bachelor’s degree in business administration from Southern New Hampshire University.

During her 19 years at Granite State Credit Union, Egan has advanced from teller and member service representative to lending and call center manager. Egan also held other positions within the credit union, including consumer lending supervisor, HR training coordinator, and interim mortgage lending manager. Egan holds a bachelor’s degree in business administration from Plymouth State University.

Reeder has been with the credit union for 17 years with responsibilities including member services, the call center, marketing, branch management, consumer lending, and electronic services management. She holds a master’s degree in organizational leadership from Southern New Hampshire University and received her undergraduate degree there as well.

Debra Hayward, Vice President of Lending, Celebrates 20 Years of Service at Pioneer Valley Federal Credit Union

Pioneer Valley Federal Credit Union (PVCU), Springfield, MA, congratulates Debra Hayward, vice president of lending for 20 years of service. Over the years Hayward has

overseen the operations and strategic develop-ment of the consumer and real estate initia-tives of the lending department.

Hayward is also a Certified Credit Union Financial Counselor and helps members to plan and maintain a successful financial life. Her hard work and commitment to PVCU and the credit union movement is greatly appreciated. •

Debra Hayward

Tracey Healey

Jennilene Johnson

Lisa Egan

Lisa Reeder


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C R E D I T U N I O N C A L E N DA R

Special EventsCUNA Governmental Affairs ConferenceFebruary, 24-28 ..........................................................Washington, DC

Bowling Tournament to Benefit Special Olympics Rhode IslandMarch 27 ........................... East Providence Lanes, East Providence, RI

The Great New England Credit Union ShowApril 24 ................................................... Holiday Inn, Boxborough, MA

Special Olympic Rhode Island Summer GamesMay 31 – June 2 ..................... University of Rhode Island, Kingston, RI

Richard D. Mahoney Memorial Charity Golf Tournament to Benefit Make-A-Wish Foundation® of New HampshireJune 13 .................................................Candia Golf Links, Candia, NH

Credit Unions of Rhode Island Charity Golf TournamentJuly 15 ................................... Crestwood Country Club, Rehoboth, MA

Massachusetts Credit Union League Charity Golf Tournament to Benefit Massachusetts Coalition for the HomelessAugust 14 ......................... Juniper Hill Golf Course, Northborough, MA

CONFERENCES AND CONVENTIONSSpring Volunteer Development ConferenceApril 20-22 .......................................Chatham Bars Inn, Chatham, MA

Credit Union Association of Rhode Island Annual Meeting and Get-TogetherMay 8 .............................Metacomet Country Club, East Providence, RI

New Hampshire Credit Union League Annual Meeting and ConventionJune 7-9 .......................................... Stowe Mountain Lodge, Stowe, VT

Massachusetts Credit Union League Annual Meeting and ConventionJune 26-29 .................................Naples Ritz-Carlton Hotel, Naples, FL

NetworksHR NETWORK MEETING HR Network MeetingMarch 20 ............................Credit Union Center, Marlborough, MA

HR Network MeetingMay 23 ...............................Credit Union Center, Marlborough, MA

COMPLIANCE NETWORKCompliance Network MeetingMarch 20 ............................Credit Union Center, Marlborough, MA

Compliance Network MeetingMay 15 ...............................Credit Union Center, Marlborough, MA

Seminars and SchoolsDeveloping Great Managers, Part I of IIIMarch 5 ..............................Credit Union Center, Marlborough, MA

Credit Union Employee Boot CampMarch 13 ............................Credit Union Center, Marlborough, MAMay 22 ...............................Credit Union Center, Marlborough, MA

Developing Great Managers, Part II of IIIApril 3 .................................Credit Union Center, Marlborough, MA

Account EssentialsApril 13 ...............................Credit Union Center, Marlborough, MA

Developing Great Managers, Part III of IIIMay 7 .................................Credit Union Center, Marlborough, MA

BSA UpdateMay 9 .................................Credit Union Center, Marlborough, MAMay 21 ..................................... White’s of Westport, Westport, MA

Exceptional Leadership – Part I of IIMay 14 ...............................Credit Union Center, Marlborough, MA

Financial Educators MeetingMay 16 ...............................Credit Union Center, Marlborough, MA

Exceptional Leadership – Part II of IIJune 4 ................................Credit Union Center, Marlborough, MA

Webinar and Webcast SessionsQualifying Borrowers Using Personal Tax Returns, Part 2February 20

Guidelines for OREOFebruary 26

Consumer Debt Resolution Series: Adv. Collection Techniques That Reduce Delinquency & LossFebruary 27

What You Need to Know about Guarantors, Co-Signers, Personal Guarantees & MoreMarch 5

Fair Lending Comparative File ReviewMarch 6

Monitoring the Effectiveness of Your Compliance ProgramMarch 13

Consumer Financial Protection Bureau UpdateMarch 14

Flood Insurance Compliance UpdateMarch 19

Fair Credit Reporting and FACT Act Risk-Based Pricing Notices: Clarifying the ConfusionMarch 20

Head Teller Development: Managing Dual Control & Cash LimitsMarch 26

Directors Series: Enterprise Risk Management for Credit Unions: A PrimerMarch 27

Opening Minor Accounts: Ownership, Access & Multi-PartyMarch 28

Meeting the Requirements for Capital Adequacy & ContingencyApril 2

Mandatory Compliance Series: Compliance Rules the Front Line Must KnowApril 9

ACH Rules Update 2013April 10

Consumer Dept Resolution Series: Maximizing Recoveries on Charged-Off LoansApril 16

UCC Article 9 Default Provisions: What Secured Creditors Need to KnowApril 17

Duties of the Board Secretary: Fundamentals, Best Practices, & E-Package DeliveryApril 18

SBA Lending Update 2013: Trends, Regulations, & SOP 50 10April 23

Effective Contract Negotiation, Review, & ManagementMay 2

IT Crisis Management: Business Continuity, Disaster Recovery & Incident ResponseMay 7

Director Series: Understanding the ALLL for DirectorsMay 8

Legally Handling ATM & Debit Card Claims under Regulation EMay 14

Line-by-Line Loan Review for Consumer, Commercial & ResidentialMay 15

FFIEC Guidance on Cloud Computing: Considerations for Credit UnionsMay 21

The Branch of the Future: How Branches Will Serve Members Who Don’t Need BranchesMay 22

When Is an Item Payable? Stop Payments, Return Items & MoreMay 29

Mandatory Compliance Series: Compliance Rules Lenders Should KnowJune 5

Account Card Mistakes & How They Affect MembersJune 6

Supervisory Duties and ResponsibilitiesJune 11

Nuts & Bolts of Effective Metro 2 Credit Reporting via e-OSCARJune 12

Pricing Consumer Loans for ProfitabilityJune 19

QuickBites ONE-HOUR TELEPHONE CONFERENCINGShort Sale ................................................................... March 26Life Style Lending ...........................................................May 16There’s an App for That – Digital Delivery ..................... June 13

CHAPTER MEETINGS & ACTIVITIES – MACentral Mass ChapterChapter MeetingsMarch 13 ............................O’Connor’s Restaurant, Worcester, MAMay 8 ........................ Wachusett Country Club, West Boylston, MA

Metro Boston Chapter

Chapter Meeting – Joint Meeting with Tri-County North ChapterFebruary 19 ......................................... Beacon Grille, Woburn, MA

Chapter MeetingsMarch 19 ........................................Embassy Suites, Waltham, MAApril 16 ...............................................Holiday Inn, Somerville, MAMay 21 ................................................................................. TBD

Pioneer Valley Chapter Chapter Meetings March 12 ..........................................Delaney House, Holyoke, MAApril 9 ................................................................................... TBDMay 14 ................................................................................. TBD

Southern Mass. Chapter Chapter MeetingsMarch 20 .................................. White’s of Westport, Westport, MAApril 17 ....................................Harry’s La Casa Mia, Raynham, MAMay 15 .....................................Stone Forge Tavern, Raynham, MA

Tri-County North ChapterChapter Meeting – Joint Meeting Metro-Boston ChapterFebruary 19 ......................................... Beacon Grille, Woburn, MA

CHAPTER MEETINGS & ACTIVITIES – NHMerrimack Valley ChapterChapter Meeting – Annual MeetingApril TBD............................... The Airport Museum, Manchester, NH

Monadnock ChapterChapter Meeting – BSA Training and Annual MeetingApril 4 ................................. NGM Federal Credit Union, Keene, NH


Simply BetterSecurity.

Better security is the result of experience not always new technology. Call 1-866-433-4474 or email [email protected] or visit www.isgsecurity.com/contact to begin a conversation on how we may help you improve your existing security, camera/video, monitoring, access control & fire alarm systems, lower costs, and experience service as it should be.

Integrated Security Group (ISG) has been providing alarm services for nearly thirty years beginning as a consulting agency and now one of the largest service & installation providers in the northeast to financial institutions and high-risk retail corporations. As one of the only Underwriters Laboratory (UL) Listed installers of Bank, Safe & Vault electronic security in the entire region, we guarantee your systems will perform better, cost less and give you the peace-of-mind that only a partner at your side can.

License 181726

SECURITY I FIRE I VIDEO I ACCESS CONTROL I KNOW HOW TO BE SECURESM

Integrated Security Group tel 866.433.4474 I isgsecurity.com

www.nes-group.com

Coming SoonSt. Mary’s Credit UnionWestborough, MA

Let our team of experts show you how to turn renderings into reality.

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