Membership is 'Worth the Money'

I wanted to pass this article on to those who didn't see it-- high praise for credit unions! Service One does not charge a membership fee and members are only required to keep a minimum of $25 in their member share (savings) account. What a deal - great auto, mortgage and credit card loan rates, ConceptGreen E-counts, Add-on and 14-day Notice Certificates, and much more. Send me an email if you don't know about any of these services.

AOL's WalletPop: CUs one of memberships 'worth the money'

MADISON, Wis. (5/27/10)--Credit unions are one of 10 memberships "worth the money" for consumers and, furthermore, could be the membership consumers "can't afford not to join," according to an article on AOL's WalletPop.com.

Because many people carry debt on their credit cards, rates charged by credit union cards are desirable [because they are lower than many major card companies], financial guru Suze Orman wrote in an article about safeguarding finances, WalletPop said.

"Do you know by law, federally chartered credit unions cannot charge you more than an 18% interest rate?" Orman added.

WalletPop also referred readers to the Credit Union National Association's credit union locator tool on its website.

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Members let me know how pleased they are with the mortgage loan options offered to them at Service One. We offer fixed-rate and variable-rate mortgage loans customized to ensure that our members are able to meet their homeownership goals. Ken Vogler and his mortgage department work individually with each member to develop the best mortgage for them. Sometimes this means saying "Not now, but this is what you need to do to qualify next year."

The following article describes credit union mortgage lending from the national perspective.

Big foreclosure increases unlikely to be so big at CUs

MADISON, Wis. (4/16/10)--The nation saw a 35% spike in home foreclosures in first quarter compared with first quarter 2009. While credit unions likely will see foreclosure increases, their general asset quality remains relatively high--which may be a good omen, said Credit Union National Association (CUNA) Senior Economist Mike Schenk.

Households facing foreclosures grew 16% for the quarter and 7% from the last three months of 2009. It's the biggest jump in foreclosures since January 2005, said Irvine, Calif.-based Realty Trac, which tracks notices of defaults, scheduled auctions and home repossessions (msnbc.com April 15). More than 900,000 households--one in every 138 homes--received a foreclosure notice during first quarter, said the firm.

How do the first quarter national numbers compare to credit union experience?

"We really don't know because we don't have any first-quarter credit union operating results yet, and even if we did, credit unions don't report foreclosures on their call reports," said Schenk, who is vice president of CUNA's economics and statistics department.

"Nevertheless, it would be difficult to argue that credit union trends won't mirror--to some extent--the trends of the broader market. Credit unions likely will see foreclosures increase. But asset quality at credit unions is generally much higher compared to what we see in the for-profit sector," Schenk told News Now.

For example, at the end of 2009, credit unions' delinquency rate for all mortgages was 1.97%. In contrast, the mortgage delinquency rate in the banking industry was three-and-a-half times higher at 7.1%. It's important to note that banks report delinquencies on a 90-plus day basis, while credit unions report on a 60-plus day basis. "The bank delinquencies are much higher in spite of their having one extra month to collect," Schenk said.

Schenk also noted that the delinquency rate on credit union mortgages has been declining over the past two quarters. "That's further evidence that the foreclosure trends will be more muted in the credit union sector."

Credit union mortgage loan net chargeoffs averaged 0.55% in 2009--about one-quarter the banks' 2.20% net chargeoff rate in the year. Moreover, credit unions' mortgage chargeoff rate is the lowest of all the major loan categories--including business loan and consumer loans, Schenk noted.

The numbers indicate that "if the aggregate mortgage loans continue to deteriorate, it's likely that credit union portfolios will continue to be further stressed, but not at the magnitude experienced in other sectors of the industry," he said.

"Credit unions were much more careful in their lending activities and didn't originate toxic mortgages. However, their members do reside in declining markets," he said.

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Good morning, Having just returned from a hectic week in Washington DC visiting with Kentucky legislators and listening to speeches, I want you to know that our legislators support credit unions. They understand that regulations intended to curtail harmful practices of large banks caused unintended consequences for us. They applauded our continued focus on members and appreciated that Kentucky credit unions did not pull back on member lending. Hopefully they will act on their words and keep credit unions out of the financial regulatory reform act.

Service One has some exciting plans for 2010 and the first begins March 15 with a credit card transfer offer that everyone should take advantage of and appreciate. Many credit card issuers are raising rates, adding annual fees, and eliminating rewards; however, Service One's Visa credit card will save our members hundreds of dollars in interest and fees. The old adage of "shopping at your own store" applies to your credit card as well as other loans.

The second initiative introduces "green" checking, a product bundling that helps eliminate paper useage and mailing costs associated with statements. This will be introduced April 1. The "Concept Green E-Counts" will reward members with great loan discounts if they adopt a prescribed bundle of convenient electronic methods for handling their financial transactions. Look for upcoming announcements!

I look forward to seeing you at the Annual Shareholder's Meeting on Thursday evening, March 18. Please let me know if you have any suggestions to improve our product offerings, and thanks for your loyalty to your credit union.

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Last year was a record year for deposits at Service One as members moved more than $15M to their credit union. I'm delighted to announce that our assets topped $101,000,000 thereby reaching a historic milestone for our growth. More than 14,500 members do their financial transactions at SOCU. With proposed member-friendly products and plans for 2010, our future looks bright.

ABC features: Switch to CUs

NEW YORK (1/12/10)--The media kudos for credit unions continues this time with ABC's Diane Sawyer Friday noting on ABC's World News Tonight that many consumers are trading their financial institutions on Wall Street to the ones on Main Street.

The ABC news piece, "Switch to CU, Avoid Bank Fees," featured two consumers who switched from their big banks to smaller financial institutions. It also noted the "Move Your Money project," which was created by Arianna Huffington, owner of The Huffington Post. The project encourages consumers to take their money out of big banks and move it to smaller financial institutions such as credit unions and community banks.

"When big banks see real competition from the community banks and credit unions, they will change their behavior," Huffington told ABC's David Muir.

The project's Facebook group, "Move Your Money," has nearly 20,000 fans. The "Move Your Money" campaign on YouTube also has received more than 300,000 views (Newsline Express Jan. 8).

Credit Union National Association President/CEO Dan Mica also wrote a column for The Huffington Post, saying that credit unions are experiencing record membership growth and that "disenchantment" with banks may be part of the reason. His column generated many reader comments, many of them about the positive experiences consumers have had with credit unions.

In other news, The Washington Post Thursday recommended that homeowners looking to refinance a mortgage talk to several lenders--including a credit union.

A blog, the Red, White and Blue Press also recommended (Jan. 11) that consumers seek credit unions instead of banks to improve their finances.

Want to see some cute commercials?

Check out this website:

Service One Commercials



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Service One Credit Union's "green" building became the final stop for community members who toured "green" facilities in Bowling Green on Saturday, October 3. Not only did tour members make the 10:00 news on WBKO and WKCT, but they found a front page article about the tour in their Sunday Daily News. The WKU Herald reporters also wrote an article. I appreciate the coverage that our local news media gave this Allied Alternative Energy Bowling GREEN Tour.

The comment has been made to me "Yes, Service One is serious about sustainability, but what will the new building be used for? Did we spend our members' money just to be green? The answer to that last one is "No," but, it has certainly drawn attention to what a business can do to position itself for future energy savings. It is our intention to save up to 90% on energy expenditures over the life of this building, thus saving our members money. Not only will we save costs through a 25% increase in insulation value from the living roof installation, this roof will not have to be replaced for forty years. Earth berms, insulated concrete walls, and insulated windows along with a geo-thermal energy system provide for a comfortable building for our employees.

The existing office structure, built in 1987, needs a great deal of maintenance and drains electricity. Work requirements have changed since '87 and new offices and a secure computer room are required. We chose to eliminate the small employee breakroom and restrooms in the existing building and design a more comfortable space for our employees in the new addition. The first floor features a larger kitchen with a recycling center and Energy-star rated appliances, dual-flush toilets and a shower in the restrooms, and a training area and a computer repair shop. The second story will be used for staff and board conferences and meetings. We included space for temporary offices during the renovation process on the main building as well as space for future growth requirements.

I hope that you will be able to attend our open house on Thursday, November 12, along with other "green" leaders in the state. The governor, Steve Beshear, Mayor Elaine Walker, and WKU President Gary Ransdall will be invited to join us in celebrating this grand opening event. If you cannot attend, we plan to provide scheduled tours several times a week so that our members can view this beautiful space designed for their credit union employees.

Please contact me if you have any questions or comments. I trust that you will be proud of the steps that your credit union has taken to be a good financial and environmental steward.

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