Freedom Credit Union Board of Directors Elects Glenn S. Welch As

December 2015

A Monthly Sharing of Association Info, News and Events with Credit Union Volunteers

Greylock Federal Credit Union Appoints New Director Greylock Federal Credit Union in Pittsfield, Mass., an- nounced the selection of Tyrone A. Jackson as the newest member of the credit union’s volunteer Board of Directors. Upcoming Events Jackson fills the board seat vacated by former President/ CEO Marilyn L. Sperling, who retired last October. Jackson Rhode Island has served on Greylock’s Supervisory Committee for the Governmental past year. Affairs Day January 13, 2016 Board Chair Gerard E. Burke said, “We welcome Ty and look forward to having someone with his record of community Governmental Affairs service, entrepreneurial experience and commitment to pro- Conference (GAC) moting financial literacy as the newest member of our vol- Tyrone A. Jackson February 21-25, 2016 unteer board. Ty adds his impressive background to the diversity of talents and expertise of our volunteer board.” CU Accelerate 2016 May 13 - 15, 2016 Jackson is currently the head of Big Head Books, LLC, a literacy organization he founded in 2011 with an educational and socially conscious mission. The organi- Richard Mahoney zation’s goal is to expose children to the joy of reading through visits to schools, Charity Golf libraries, youth organizations, and other venues. Jackson is the author of sev- Tournament eral children’s books including, "When I Close My Eyes;" “The Supadupa Kid;" June 9, 2016 “You Are Amazing, I am Amazing;” and "Danny Dollar Millionaire Extraordi- naire." Credit Unions of Rhode Island Charity Freedom Credit Union Board of Directors Elects Golf Tournament July 18, 2016 Glenn S. Welch as New President & CEO The Board of Directors of Freedom Credit Union in Spring- Massachusetts Credit filed, Mass., have elected Glenn S. Welch as the new presi- Unions Charity Golf dent and CEO, effective January 4, 2016. Welch will suc- Tournament ceed Barry F. Crosby, who has served as president and August 10, 2016 CEO of the state chartered credit union since 2003. This past summer, Crosby notified the Board of his intent to retire in early 2016.

“After conducting an extensive search that identified sev- Please visit the Calendar of eral superbly qualified candidates, we have decided that Events at Glenn S. Welch is our choice to lead Freedom,” said Law- www.CCUAssociation.org for rence F. Bouley, chairman of the board. “Throughout the registration links and more Glenn S. Welch details on all the listed process, it was extremely important to us that the new events. president could build on the strong foundation already in place at Freedom. And to that point, we are grateful for the leadership that Barry Crosby has provided

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Has the Time Come for an 18-Month Exam Cycle?

urging the regulator to re-establish its pre-financial crisis exam schedule of once every 18 months.

“In response, NCUA Board Chairman Debbie Matz insisted that the current 12-month cycle should be maintained, though she said the regulator would consider an 18-month pilot program for some credit unions going forward.

“At the November NCUA board meeting, Matz again broached the topic, saying the agency "is not locked into an annual exam cycle every year. In future years, we may consider moving back to an 18- month exam cycle for credit unions that pose less risk to the Share Insurance Fund."”

The article calls attention to Paul Gentile, president/ NCUA Board Chair Debbie Matz at Roundtable Discussion in Manchester, N.H. CEO of the Cooperative Credit Union Association, who wrote to NCUA that "moving exams to an 18- Will the National Credit Union Administration extend month cycle does not threaten safety and sound- the credit union examination schedule? ness and will not add significant or systemic risk. In reality, it will lower risk because an extended cycle That’s the question Palash Ghosh, a reporter with allows examiners to spend resources in credit un- the Credit Union Journal, recently raised in his arti- ions that need additional attention." cle appearing in the trade publication. It also noted that one NCUA Board member doesn't Citing rising compliance costs and regulatory bur- agree with the chairman on when to extend the dens, the article noted that there has been some exam cycle. Board member J. Mark McWatters said federally insured credit unions, state leagues and in November that it is "worthwhile" for the regulator trade groups that have been asking the NCUA to to consider possibly lengthening the examination increase the time between credit union exams to 18 cycle from 12-months to 18-months for certain "low from 12 months. It said the matter came to the -risk" CUs. He also criticized NCUA for lagging on forefront in August when NAFCU and the Coopera- the matter. tive Credit Union Association -- which serves credit unions in Massachusetts, New Hampshire and In conclusion, the article returns to Gentile and the Rhode Island -- separately wrote letters to NCUA (Continued on page 6)

Field of Membership Working Group Convenes First Meeting

The first meeting of the Association’s Field of Mem- prior to the comment deadline. bership Working Group took place recently. The meeting provided an overview of the NCUA’s re- Questions and comments are appreciated, and cently proposed FOM rule, provided answers to credit unions are encouraged to submit individual some of questions regarding FOM, and solicited ad- comment letters to NCUA elaborating on support of ditional comments and considerations. the rule, and noting concerns. Please do not hesitate to contact [email protected] with any The Association will hold a second meeting of the questions. FOM working group in the month of January, which will feature a guest speaker from the NCUA. As a Details on provisions contained in the proposed rule reminder, comments on the NCUA’s FOM proposal which would provide flexibility for federal credit un- are due by Monday February 8, 2016. ions to determine areas and people to serve that are not available in current regulation may be ac- The Association will also host a series of comment cessed HERE (login required). letter writing workshops in each of our three states

Better Values. Better Banking Rolls Out Radio Commercials in New Hampshire The Association’s Better Values. Better Banking. consumer awareness campaign has inked an agree- The Morning Buzz Network along with WZID and its ment with radio stations in New Hampshire which affiliates will deliver the credit union message will have them air the campaign’s commercials throughout the state, not only on radio but also throughout the coming weeks. through their social media reach.

Contracts were signed with iHeart Radio and the Plans are now underway to schedule “In Your Manchester Radio Group, opening the door for the Neighborhood” events at various locations through- commercials to air on WHEB-FM, WGIR-FM, WLKZ- out the state, giving local credit unions the opportu- FM, WHDQ-FM, WFYX-FM during the Morning Buzz, nity to greet consumers and potential members and and on WZID-FM, WMLL-FM, and WFEA-FM during engage them in conversation about the values the day. credit unions offer.

Association Releases Quarterly State Profiles for Mass. N.H. and R.I. Credit Unions The third quarter state profile reports are now available to Association members. The reports, an- New Hampshire other free benefit of membership, can be accessed In New Hampshire, on the Association’s website. credit union memberships increased by 2.1% In summary, economic challenges, spawned by (8.4% annualized) in slower economic growth domestically and in devel- the third quarter of oping economies, took center stage in the third 2015, more than double quarter. A stronger dollar slowed U.S. exports and the 0.9% second quar- manufacturing output in the period. In addition, ter advance. The state’s weak commodity prices translated into weaker do- 6.6% twelve month in- mestic production and employment challenges in crease in memberships the energy sector. is the fastest annual advance posted since cal- Despite obvious economic difficulties, credit unions endar year 1988 – a reported strong membership growth, marginally twenty-six year record. faster loan growth, strong asset quality, high earnings, and a higher aggregate capital ratio in the New Hampshire credit third quarter. union earnings declined

– though only margin- Massachusetts ally - in the third quar- Massachusetts ter. Annualized ROA credit union (net income as a per- memberships centage of average assets) totaled 0.56% during increased by the three month period. That result compares with 1.5% (6.0% a 0.62% earnings rate in the second quarter. annualized) in the third quar- Healthy earnings combined with relatively slow as- ter of 2015, set growth to keep the New Hampshire credit union nearly match- aggregate capital ratio near its post-recession high. ing the 1.8% The state’s credit union net worth ratio finished the second quarter advance. The state’s 5.0% twelve- quarter at 10.6% - just one-tenth of a point below month increase in memberships is the fastest an- the 10.7% reading at the start of the quarter. The nual advance posted since calendar year 2000. current reading is well above the 7.0% threshold level at which regulators deem credit unions “well Massachusetts credit union earnings results in- capitalized”. creased in the third quarter, with annualized ROA (net income as a percentage of average assets) to- Memberships in Rhode Island credit union increased taling 0.70%. That result compares with a 0.60% at a lofty 1.7% rate (6.8% annualized) in the third earnings rate in the second quarter and a 0.68% quarter of 2015 – well above the 0.7% increase rate in the year-ago quarter. posted both in the second quarter and the year ago period. The state’s 3.2% Overall, Massachusetts credit union year-to-date twelve-month increase in ROA averaged an annualized 0.65% - its highest memberships is the fastest reading since 2012 (when aggregate ROA regis- annual advance posted since tered 0.67%). calendar year 2001 – putting the current reading at a four- Strong earnings combined with relatively slow asset teen year high. growth to push the Massachusetts credit union aggregate capital ratio to 10.9% - up from 10.8% at Rhode Island the start of the quarter. The current reading is well above the 7.0% threshold level at which regulators Rhode Island credit union memberships increased at a deem credit unions “well capitalized”. (Continued on page 6)

Season’s Greetings from Everyone at the Association

Front: Donna Bevilacqua, Bob Delaney, Carla Lussier, Sue Gurley, Jeanne Reimonn. Standing: Charlotte Whatley, Dean Martino, Kimberly Zelch, Paul Gentile, Mary Ann Clancy, Bonnie Doolin, Bill Nagle, Kathy Leveille, Katherine But- ler, Walt Laskos, Dawn Roberts.

Planning is Underway for the 2016 Rhode Island Governmental Affairs Day Association President/CEO Paul Gentile is hosting voice is heard before the General Assembly as they the annual Rhode Island Governmental Affairs Day begin work in the new legislative session. on Wednesday, January 13, 2016, in the Governor’s State Room at the State House from 4:00 pm to Click HERE to register on the Association’s website. 6:00 pm. All credit union members are cordially in- The single registration link may be used to register vited to attend to represent credit unions and the either credit union or public officials. Association. Please do not hesitate to contact the Association if Advocacy is the most important focus of the Asso- you have any questions or concerns at govaff- ciation and your help is needed to ensure that our [email protected]

(Continued from page 1) Freedon Credit Union Board of Directors Elects . . . Most recently, Welch was an executive vice presi- over the past 12 years,” Bouley added. dent of Berkshire Bank following their acquisition of Upon learning of his appointment, Welch com- Hampden Bank (HB). Prior to that, he was presi- mented, “I am grateful to serve as Freedom’s new dent and CEO of Hampden Bank for two years be- president and to continue the organization’s 93- fore the Berkshire Bank acquisition. During his 17- year tradition of serving the members, families, year tenure at HB, he held various positions includ- businesses, and communities of the Pioneer Valley. ing, president and COO, executive vice president, Also, I want to thank the board of directors for their and senior vice president of Business Banking. Be- confidence in me and their support.” fore joining HB, he served as vice president, Middle Market Banking Group at Fleet Bank. Added Crosby, “I am proud of my tenure at Free- dom and enjoyed working with the board of direc- Welch is a graduate of Western New England Uni- tors, officers, and staff. During this time, the credit versity (WNEU) with a BSBA in Finance and earned union grew from one branch into a network of ten his MBA from the University of Massachusetts. He is branches throughout the Pioneer Valley and an op- currently active on many boards throughout the erations center in Springfield. Under Glenn’s leader- Pioneer Valley, including HAP Housing, the Associa- ship, I am confident that Freedom will continue that tion for Community Living, the Business School Ad- growth and our membership will value his knowl- visory Board at WNEU, Develop Springfield, and edge and expertise.” Springfield Business Leaders for Education.

(Continued from page 2) Has the Time come . . . of the credit union system – as underscored by the recent robust third-quarter financial report from Association, the first organization to ask NCUA to NCUA. "The financial state of the credit union indus- extend the exam cycle, noting Gentile’s optimism try has never been better," he noted. that the regulator will follow through on the meas- ure. And Gentile mentioned something else that might spark some optimism – the recent highway bill "I think Ms. Matz was quite sincere in comments passed by the US. Senate allows the Federal De- she made about looking into this," he said. "But posit Insurance Corp. to perform 18-month exam these changes take time, they can't be done over- cycles for well-run community banks. night." Click HERE to access the article. Gentile cited, among other things, the strong health

(Continued from page 4) Association Releases . . . both the 0.55% level reported in the second quarter and the 0.60% reading in the year-ago period. lofty 1.7% rate (6.8% annualized) in the third quarter of 2015 – well above the 0.7% increase Rhode Island credit union ROA averaged 0.40% posted both in the second quarter and the year ago over the past decade. Stronger earnings and rela- period. The state’s 3.2% twelve-month increase in tively slow asset growth helped boost the Rhode memberships is the fastest annual advance posted Island credit union aggregate capital ratio to 10.6% since calendar year 2001 – putting the current - a marginal increase compared to the 10.5% sec- reading at a fourteen year high. ond quarter and year-ago readings. The current reading is well above the 7.0% threshold level at Rhode Island credit union earnings results inched which regulators deem credit unions “well capital- higher in the third quarter with annualized ROA (net ized”. income as a percentage of average assets) of 0.62% in the period. That’s slightly higher than Click HERE to access the reports (login required)

-15, 2016 Save the Date May 13