International Credit Union Day

Happy International Credit Union Day. 

A chance to think about the impact we are making today, our great history of making a difference in people’s lives, and the bittersweet sense that all of us in the CU movement have that we should be doing more.

Studying the rich history of the credit union movement in America is one of my favorite things to do.  From Pierre Jay, Edward Filene (whom I found out this year shares my birthday), and Roy Bergengren, to Louise McCarren Herring, Dora Maxwell and Monsignor Pierre Hevey, there are so many true heroes in our history.

Today with credit unions all over the US making strides to enrich the lives of their members through easy access to credit, payday lending alternatives, financial education and budget help and simple services offered at fair terms to the people who need them most, we are still working among heroes each and every day.  People who truly put the welfare of their members above all else, even at times themselves.  In the years since I have become part of the movement I have met credit union leaders from nearly every part of the country and we all share the same passion, making life better for our members.  This is the core of what we do, and this is our greatest triumph.  After over 100 years the mission remains the same and the flame remains lit.

Even with the many success stories from over a century of fighting the good fight, there is a constant and underlying ache that many of us feel that we should do more.  There is a constant struggle to stay ahead, to fight off the threats to our members both internal and external, and when the day is done there is still a feeling that we could do more.  There is a sense that if only we explained the many advantages of credit union membership a little more effectively, the masses would see the light.  There is a sense that if only we told our story in a more compelling way, our government would see the indispensable value we add to the economic system.  There is a sense that if only we could paint a clearer picture of what it is we all get up and do each and every day, people would realize that there is no hidden agenda, there is no downside.  This really is a better way, and a means to a better day.  

This is shared not only with credit union leaders throughout the US, but throughout the world.  From Scotland to Bermuda, from the Cayman Islands to South Africa and all points in between people do what is best for their members because it is the right thing to do.  It is hard work, done by true heroes.

So today we take a moment to celebrate our wins, remember our heroes, and hopefully scratch that itch, just a bit.  We will always want to do more.  We should constantly feel a bit unfulfilled.  We should always have an ache that more can be accomplished, because ours is a movement by, for and about people.  The credit union movement has no finish line.  It is a movement, in constant motion toward the needs of the many.  

I am proud today to be one of the leaders in the movement.  I am proud to be running the race, regardless of where the course takes me because I know that along the route I can touch people’s lives in a way that makes a difference.  I am encouraged by the number of bright and passionate people who are getting plugged in to the movement to run along side and takes us all to places we have not been.  I am hopeful that we will never feel that the work is finished or that the race is won, but I am hopeful that we will learn better ways to compete.  Here's to the heroes!  Happy ICU Day!

Today is International Credit Union Day; celebrate by exercising your freedom to choose!

Freedom of choice is something most of us in the US take for granted.  We have hundreds of different restaurants to choose from.  We have dozens of auto manufactures competing for our garage space.  We even now have multiple Smartphone platforms to choose from to access the thousands of apps out there to spend our time on.   We are used to having choices in everything we do.

Most non-credit union people out there would feel that they have that same freedom of choice when it comes to their banking options, but if they only consider banks to do their banking do they really?  Banks, even under different names and different sizes all offer pretty much the same product, for the same reason…profit.

Banks may call their products by different names or have unique taglines, but they all focus on the same bottom line.  Like fast food burger joints.  One might have arches and another a crown but at the end of dinner they basically sell the same product at basically the same price to basically the same demographic.  Sure, the prize in the kid’s meal changes from time to time but you can always still get fries with that. 

Credit unions are like a Chipotle restaurant stuck in the burger joint mix.  We might not have as vast a menu and there are not as many of us out there, but if you look at the quality of what we offer, you can taste the difference.  The long term effects are far more positive dining at a place that serves fresh, simply prepared food.  The long term effects of dealing with a credit union are positive as well, less debt and increased wealth.  Facts prove it.  Wastelines and wallets don’t lie.

So this year, for ICU Day, celebrate the freedom of choice that credit unions give people.  We allow the members in our markets the freedom to do their banking a different way.  We allow them the freedom to have a vote, and a voice.  They have the freedom to choose among themselves who will lead them on the board.  They have the freedom to be treated as an owner and not just a number.  They have the freedom to choose people over profits.  It is why we do what we do and why October 21^st 2010 will certainly be a day I feel very proud of my credit union and the hard work we do day after day for our members.  Viva para la elección!

Get Your Hands Out of My Member's Savings Accounts!

After taking the crazy month of July off of blogging, I have decided to get back on the writing wagon.

 Let me start by saying that I am a big fan of the NCUA, for the job it has done in the past, keeping credit unions operating safely and  member's deposits secure and insured.  I even appreciate them stepping in over the past few years and making the corporate credit unions step up and be accountable to their member credit unions for the assets they manage.

Alas, the love affair is over.  Now...I'm mad.

Last year, as a part of the plan to "stabilize and recapitalize" corporate credit unions the NCUA snatched over $175,000 from MY members. (we are just under $40 million in assets...just imagine what the tab was for the $1 Billion shops!)  Most of these members have never heard of corporate credit unions.  Non of them have ever deposited a penny in a corporate credit union, and non of them were given a say in the decision to "give" this money to the NCUA to use as they saw fit.  The corporate credit union that we deal with (there are over 20 nationwide)is well capitalized and run conservatively, as it should be.  

Now I understand the need to strengthen the corporate credit union system.  The corporate credit unions act for credit unions as the Federal Reserve Banks do for the banking industry and yes, as a natural person credit union we do rely on them for processing and clearing.  They are a necessary and vital part of the credit union machine.  We dealt with it, we made budget changes to manage around the giant hole it left in our earnings.  We did not cry over spilled milk, even though the puddle was huge.

We planned for more NCUA antics this year...but I underestimated their greed.

This June the NCUA took another $42,000+ from my members.  Again with no real explanation and without the courtesy of a thank you.  We had budgeted for this.  This September the rumor has it we will see an even bigger request.  This one I didn't see coming.  Another giant handout to secure the NCUA's insurance fund, used for covering credit unions who have fallen below what the NCUA considers to be soundly capitalized, therefore "failing" in their eyes.  Very few credit unions actually "fail".  Most are forced to merge with a stronger credit union who then absorbs the members of the failed institution and adopts them as their own.  Think Brady bunch, with less polyester.  Often this is actually a positive from a member's perspective because it can open the door for more products and services then their previous credit union could offer.  This isn't always the case, but I try to look at the bright sides of the cooperative movement when possible.

What the NCUA is doing now, and will likely continue to do for the foreseeable future is wrong, it is self defeating, and it is at face value downright scandalous.  They are in essence taking the very capital away from the natural person credit unions they they are insuring, making us all weaker and less stable because, they say, we are weaker and less stable.  They say they need this additional capital because the capital ratios of credit unions are falling, but they are falling in large part because of the money that the NCUA is siphoning off.  It's easy to make up the rules of the game as you go when you don't give the players a voice or a vote.  The credit union industry is based at its core on cooperation and democratic control.  We give our members the right to vote and to actively participate in the governance and direction of the credit union.  I think that in the true spirit of the institution they are charged to protect, that the NCUA should give each credit union under its jurisdiction a vote.  They can give us the facts, explain why they need the money and put all of their cards face up on the table.  Give us time to look at our hands and then let us cast a vote.  Then WE are the ones who are on the hook to explain to OUR members where their money went, if we see that it really is needed in Washington.  The NCUA is in place to protect the deposits of credit union members.  Period.   It is an entity that is in business FOR credit unions and therefore, our members.  The least they can do is ask the members of the credit union movement to give their input, insight, and vote as to what they want to happen with THEIR hard earned money.

I will continue to run my credit union for the benefit of my members and NOT as a vehicle for funneling assets to Washington.  The NCUA, I fear, has become just another cog in the bureaucratic machine, losing the desire to listen to the people they protect.  They have caused us to tighten our belts to the point of wage freezes and cuts to programs, stifled growth and stopped momentum for a much needed expansion even though there would be no need for any cuts without the assessments.  Come Hell or high water though they WILL NOT keep us from serving our members who after all, own every penny of the assets we are stewards of, and that the NCUA can't seem to keep their hands off of.

Be a Jet Ski - Article by Kelley Parks

This is an article I was quoted in from a conversation we had on CU Watercooler about the advantages of being a small credit union.  I like using the jet ski vs. Titanic analogy.  First off, jet skis are FUN and produce a great mental image of a fast, exciting ride (which the CU industry certainly is at this point in history) they are close to the water (just like a small CU is close to our members) and they can be quickly maneuvered around obstacles. The "big bank" industry certainly is akin to a comparison with the Titanic. (especially the historic "too big to sink" theory)...hard to steer and to stop once it picks up steam and able (and willing) to plow through and over anything in its way. 

Chris Blough, CEO of Wayne County Community FCU, had a brilliant quote on Liquid Lunch, 

 “Small Credit Unions need to be like jet skis. We’re not the Titanic. A jet ski would see the iceberg.”

I love the spirit of innovation in that statement. Small is nimble, and with the right thinking and some iron will, can speed right past all the other boats in the ocean.
Are you a Titanic or a Jet Ski? Is the spirit of innovation alive in your credit union?
Here’s your test:
Are you a Titanic?
You are trying to serve first class and third class all on the same boat. You believe you should be all things to all people. After all, with 17 CD options and 6 Checking Accounts, you’re bound to connect with someone.
You don’t take action because you think you are too big to fail. You have meetings to have meetings. Sub-committee has become code for “vacation in my head”.
You fail to plan for enough lifeboats. You don’t know how to react in an emergency. I mean “growing income” isn’t on the marketing calendar this month?
Or are you a Jet Ski?
You’re not afraid to get wet. You know that perfection is a mirage and experiments can be messy, but you’ll jump in and try because that’s the only way to discover your true potential.
You easily maneuver around obstacles. You’re a creative problem solver. Behind every challenge you see opportunity. While others wait for the water to stop rocking, you speed past them. Decreased budget? More regs? Bring em’ on. Big waves just make you jump higher.
You get right back on as soon as you get knocked off. You realize that it takes hard work and action to get results. You realize that mistakes help you learn and grow.
But most importantly, you aren’t afraid to make waves.

October 15th is International Credit Union Day!

I know it is not a holiday that is on many calendars. It hasn’t made it to the “Hallmark Holiday” status. Nobody (aside from those of us in the industry) will be throwing a party for it or sending a card. But that doesn’t mean that International Credit Union Day is a day that should go unnoticed.

At the Wayne County Community Federal Credit Union we serve anyone who lives, works, worships or attends school within Wayne County, Ohio. Some might see that as limiting. We see it as an advantage. We only focus on what matters to the people of Wayne County. We strengthen the people and communities in Wayne County and fill the specific needs of Wayne County…and we are great at it.


We have around 4500 members, just under $34million in assets and we spend 100% our time and our resources putting as much value as possible back into the lives of those members, and in the community we share.


I will be celebrating the day by going to Waynedale High School and teaching 3 separate senior high classes the ins and outs of credit, but this isn’t just a one day thing for us. Two out of every three credit unions in Ohio provide some form of free financial education to their communities. That’s more than 350 credit unions and communities that are strengthened because we know that the best financial tool out there is knowledge. Over 60% (and we are among them) of credit unions offer free one-on-one counseling to anyone, member or not, because we know that it is not right for those who know the least to get taken advantage of the most.

Credit unions are a true community asset. Not a flashy one. Not a loud one. But a strong and stable one.


A credit union focuses on people, not profits. A credit union is not a building or a business. A credit union, when you boil it down, is a group of people, a cooperative, a community.


Wayne County is lucky to have several strong credit unions in our community. The Wayne County Community Federal Credit Union in Smithville is one of them. We might not be a household name (yet) but I assure you that in the households of our members, we are a source of strength, stability and pride.

Happy International Credit Union Day!

CU's are turning around the life rafts...

I know that in this day and age just having any job is a blessing, but I am compelled to write today because of the special blessing I have to be part of the credit union movement. I know that this may not be the most exciting thing I write about to most of you, but I am passionate about what I do.

I am privileged to be the chief executive officer at a community chartered Federal credit union. I love my career. I love my members. I love the CU movement. In this tornado of economic mayhem the past 18 months, CUs have been doing whatever it takes to keep on doing what we do, taking care of our members and strengthening our communities. I like what Arthur Levitt, former Chairman of the US Securities and Exchange Commission said, "This country is going through no less than an economic revolution." I'll buy that. In my position at the helm of my small ship I have seen things that have never before floated to the surface. These times give new meaning to the term "uncharted waters."

Still, through all of the turmoil, all of the bad news and doomsday prophesy out there, credit unions have continued to be that bit of good news that the media brushes under the rug. With the age old "if it bleeds, it leads" attitude, the failed banks (one after another), the mortgage debacle and all of the painful foreclosures that followed (and continue to), the Madoff madness and the catastrophic credit crunch...it all takes a big fat front seat to the roughly 8000 credit unions that are still lending (over $1.4 BILLION dollars worth so far in 2009), still working hard on loan modifications and mortgages that help keep good people stuck in hard times in good homes, and still paying above market rates to people who are saving their money and we are keeping that money safe by investing it with SAFETY as our main concern instead of profit. Seems that slow and steady really does win the race sometimes and that companies motivated by greed will eventually have to reap what they sow...who knew???

It seems that in these troubled waters, credit unions have become the Coast Guard, the first responders to the crisis. We have stepped in and helped fill the void in credit when the banks decided to shut off the valve. We as an industry have actually increased our flow, made our terms easier, made our members stronger and turned on the lighthouse for the communities we serve because we as an industry know that doing ordinary things in uncertain times leads to extraordinary outcomes.

The cooperative nature of credit unions and the fact that we are people focused and not profit focused is what makes it work, what makes us tick and what keeps us going strong when others are sinking like rocks. Big rocks.

If you are reading this and are a part of a credit union, you know exactly what I'm talking about. Tell your friends and family, this is not a secret society or exclusive club...we want to help as many as we can get into the lifeboats. The way the banks are handling it reminds me of the Titanic. 20 life rafts paddled away from the ship as it went into the cold dark water, most barely half full. 300+ souls bobbed in that water in life jackets and screamed for help as the rafts continued to paddle further away. Only one of the rafts paddled back to the people, and only after nearly all of them had succumbed to hypothermia. They waited too long. They ignored the screams.

The banks are turning their backs on the very people who they made these mortgage loans to, just a few years ago. They are unwilling to work with families desperately trying to get back on track and stay in their homes. The little bit they are willing to do is too little and far too late to really be of any use.

In many areas that have been hit the hardest with foreclosures credit unions are going in full force, trying to work with members to get the financing they deserve and at terms that are fair and honest.

If you are reading this and are not part of a credit union, get online and find one in your area. No matter where you live and work there is a credit union that serves you. Sometimes it takes a little work to find us. We don't have a branch on every corner and don't spend millions on advertising, but we are there, and the only reason we exist is YOU.