CrossState Daily…04/27/2023
CrossState Announces Top 3 CU Ambassador Finalists
The final stage of the CU Ambassador Contest is right around the corner at CrossState Connect Annual Convention’s Awards Night celebration. While all regional finalists will be present to share their work and findings in the Hall of Achievement, the Top 3 contestants, as determined by an independent panel of judges, will present their project on stage, Friday, May 19. The three finalists are: Deana Barnes, of Members 1st FCU, Harrisburg Chapter/Central Region; Felicia Cunningham, Penlanco FCU, Lancaster Chapter/Capital Region; and Sarah Smith, Service 1st FCU, Northwest Susquehanna Chapter/NEPA Region. The winner will be announced after all three complete their presentations and are judged one final time.
In addition to the Top 3 contestants, CrossState Convention attendees can learn about the other finalists’ innovative projects right outside the Trade Show in the Hall of Achievement, as well. These individuals are:
- Haley Burns, PSECU
- Samuel Castro, Belco Community Credit Union
- Ciara LaVelle, pheple FCU
- Corrina Quist, PSECU
- Ted Stoler, TruMark Financial Credit Union
The CU Ambassador Contestants’ journeys began in the fall at their chapter where they shared a proposal or idea. Some Chapters held in-person events where the contestants pitched their idea and proposal while others had a less formal process where interested professionals could submit their proposals via email. The Chapter determined its winners, up to three per region, for a possible total of 24 finalists.
Those who moved to the regional level were given an opportunity to implement their proposals and see how their idea could make a difference in their own credit union or in the credit union space. In late March, project findings and outcomes (at least 60% complete) were submitted for third-party judging. The top finalists are attending CrossState Connect Annual Convention to share in the Hall of Achievement. The Top 3 regional scorers will present their project for the final scoring decision to determine the 2023 Credit Union Ambassador.
This is the second year the CU Ambassador Contest is being held with the project format. Any Chapter interested in learning how they can involve their members in next year’s contest should contact, the CrossState CU Ambassador Team.
Support these innovators at CrossState Connect Annual Convention at 6 p.m. on Friday, May 19, during Awards Night. Register for Convention today.
CrossState Connect Annual Convention is brought to you by CUNA Mutual Group and CrossState Solutions. The CU Ambassador Contest is sponsored by Target Media.
CrossState Compliance Conference Early Bird Deadline Approaching
Don’t let the Early Bird savings fly away before you register for the CrossState Compliance Conference on June 22, at the Ben Franklin Conference Center in Hamilton, NJ. Learn from compliance experts, NCUA examiners, attorneys, and more at this brand-new event for 2023. Click here to register before rates increase on May 1.
Learn from Jennifer L. Winston, an Associate with the law firm of Messick Lauer & Smith P.C. Jennifer will be presenting on advertising and social media. Jennifer represents credit unions and credit union service organizations primarily in consumer law regulation and compliance matters.
Jennifer’s practice focuses on advertising compliance and website reviews, fair credit reporting, electronic funds and payments compliance, and consumer privacy. She also monitors NCUA and CFPB developments for her clients and regularly gives presentations on navigating the current regulatory landscape. Jennifer assists credit unions and CUSOs in the development of corporate polices, including repossession, debt collection, information security, and member privacy policies.
Jennifer is a graduate of the University of South Florida where she earned her Bachelor of Arts in Psychology in 2003. She attended The Pennsylvania State University, Dickinson School of Law, in Carlisle, PA, receiving a Juris Doctorate in 2009. During law school, Jennifer was a legal extern for the Pennsylvania Department of Environmental Protection, Regulatory Counsel and participated in the Moot Court Trial Board. Following graduation, Jennifer clerked for the Honorable Charles T. Jones, Jr., Court of Common Pleas, Lebanon, Pennsylvania. Jennifer is admitted to practice law in Pennsylvania and New Jersey.
Explore the agenda, speakers, and session topics on our website.
This event is brought to you by premier sponsors CUNA Mutual Group, CrossState Solutions, and supporting sponsor Weltman, Weinberg & Reis Co.
Why Come to Red, White, & Brews? To Support the CU Action Fund
Credit unions have generously supported your Political Action Committees with personal checks for decades. Both our state and federal PACs require individual contributions. Many credit union leaders have asked, “Is there a way my credit union, or the companies I do business with, can help contribute to credit union advocacy?” Well, now the answer is yes, and you can do so when you register for the Red, White & Brews fundraiser on May 18 at The Englewood during CrossState Connect Annual Convention.
Grab a drink, enjoy heavy hors d’oeuvres, network with your peers, all while benefitting the CU Action Fund, which supports credit union issues in the legislative and regulatory arenas, engages in grassroots and issue advocacy, and elevates credit unions’ profiles in the political spectrum. Click here to register for the fundraiser.
Today’s Financial Fact
Did you know that many credit unions often offer financial counseling? By offering workshops, our credit unions help provide more specific financial education for members. Learn more about how you can become a Certified Credit Union Financial Counselor through Enhanced FiCEP.
Major NJ Tax Revenues Up by 3.7% in March
New Jersey’s revenue collections for the major state taxes totaled $3.684 billion last month, up $130.1 million, or 3.7% compared to March 2022, according to state Treasury officials. The New Jersey Treasury said it continues to expect Fiscal Year 2023 collections growth to moderate in the coming months, particularly income tax revenues now that the tax filing deadline has passed. Fiscal year-to-date total collections of $30.141 billion are up $737.2 million, or 2.5% over the same period last year.
March collections for the Gross Income Tax (GIT), which are dedicated to the Property Tax Relief Fund, totaled $1.067 billion, which was 10.1% lower than last March. The decrease in revenues was primarily attributable to a higher level of refunds, officials said. Net collections were supported by 3% growth in employer withholding, which showed resilience given that average Wall Street bonuses for 2022 were down 26%, according to the New York State Comptroller. Fiscal year-to-date collections of $12.289 billion are 2.5% higher.
For the Insurance Premiums Tax (IPT), March 1 marks the due date for the first prepayment of half of the estimated calendar year liability for IPT payers. The majority of payments are received in late February and early March. March collections of $122.2 million were $37.9 million, or 45.1% higher than last year. When combining February and March, collections of $296.4 million were $15.2 million, or 4.9% lower than the combined total for the same period last year. Fiscal year-to-date revenues of $346.0 million are 6.7% percent below last year.
Realty Transfer Fee revenues of $29.3 million were $20.7 million, or 41.4% lower than last March. Collections have now fallen for six consecutive months year-over-year, with March revenues close to pre-pandemic levels. Median home prices have continued decelerating, but housing inventories remain relatively low, preventing rapid declines in sales prices.
The drop in volume of home sales on a year-over-year basis remains the primary driver behind the reduced Realty Transfer Fee collections, treasury officials said. Fiscal year-to-date collections of $375.0 million are down $84.0 million, or 18.3% lower than last year.
Click here to read each tax area’s breakdown.
What Will PA House Democrats Do with a Majority? First, They’re Moving Long-stalled Priority Bills
Pennsylvania Democrats used the first full week of session since they solidified their majority in the state House to make their priorities clear: They intend to pass long-requested changes to election administration and anti-discrimination laws.
Committees in the House considered dozens of bills this week, and sent more than 40 to the floor for votes by the full chamber. Democrats argue the half-dozen GOP-sponsored proposals they included in that blitz show they intend to run the chamber in a bipartisan way.
These bills include topics like:
- Election administration
- LGBTQ nondiscrimination
- Public sector workplace safety
- Gun access
Learn more about these issues and how the PA House plans to tackle these issues here.
Gov. Murphy Moves to Address Burdensome Medical Debt
Medical debt impacts at least 1 in 5 New Jerseyans, state officials have said, leaving some of them struggling to pay for food, heat, and other necessities or hesitating before they seek other health care.
To reduce that burden, Gov. Phil Murphy has proposed using $10 million to build a New Jersey-based program with a grant to a national nonprofit that buys and retires the medical debt for low-income Americans. The model is now being deployed with public dollars in a growing number of communities nationwide and Murphy said the initiative could help tens of thousands of New Jersey residents clear their charges with hospitals and other medical providers.
If approved as part of the budget process, it could be the first statewide publicly funded program of its kind.
Murphy’s $53.1 billion budget proposal, which lawmakers must approve before July 1, calls for the state health department to partner with RIP Medical Debt to design a plan to help New Jerseyans facing heavy health-care cost burdens. The Long Island-based company, founded in 2014, has helped 5.5 million people and extinguished $8.5 million of their debt, according to its website.
Budget documents suggest the New Jersey program will target residents with debt who earn less than 400% of the federal poverty level — nearly $79,000 for two people — or those whose debt equals 5% or more of their annual income. Money for the new program will come from the state’s remaining $1.4 billion share of federal COVID-19 pandemic relief aid, something Cook County, Illinois has successfully done. Nine other cities and counties are now looking to use federal pandemic funding for similar programs, according to a spokesman for the company, plus Pennsylvania, which is prepared to invest $15 million.
According to a September 2022 report nearly 3 in 10 New Jersey residents with medical debt owe more than $5,000; 1 in 10 owe at least twice that.
The report also found that almost all New Jersey residents with debt had some form of health insurance, but the plans failed to cover certain procedures that led them to owe money to the medical provider. The burden impacts short- and long-term financial decisions, from preventing people from paying bills to saving for the future or enjoying a night out.
The full report is available here.
Partner Spotlight
cuBizLoan Makes Commercial Real Estate Participation Offer #6675
cuBIZloan would like to make you aware of an opportunity to purchase 90% of a commercial property loan participation of a medical office building acquisition in York, PA. Please review the loan participation opportunity for your credit union’s consideration.
The guarantors are experienced commercial real estate investors with a combined net worth of $57.4 million. In addition, the credit union has a long-term history with the family. The collateral is leased with a single tenant NNN lease that commenced on 11/01/2021, with an initial expiration date of 10/31/2031. Part of the acquisition will be financed with a 1031 exchange of $675,000.
The lead lender is planning to fund and settle before the end of April 2023.
Click here for more details and to access the LOI.
National News
U.S. House GOP Pushes Through Debt Ceiling Increase Coupled With Massive Spending Cuts
U.S. House Republicans on Wednesday struggled but whipped up just enough votes to pass the Limit, Save, Grow Act by a margin of 217-215 which temporarily raises the nation’s borrowing limit and also cuts spending by slashing key parts of President Joe Biden’s climate and tax law, potentially risking some veterans’ health benefits and imposing more work rules on the nation’s safety net programs.
The measure will face certain opposition in the Democratic-led U.S. Senate and Biden has threatened a veto, leaving negotiations over a crucial debt ceiling increase potentially needed as soon as June still at a stalemate.
Four Republicans joined all Democrats in voting against the measure, allowing it to pass by the slimmest possible margin.
The Limit, Save, Grow Act raises the nation’s $31.4 trillion borrowing cap by $1.5 trillion, or until March 31, 2024, whichever comes first, while reducing the federal deficit by a projected $4.8 trillion over the next decade, according to the Congressional Budget Office score.
The House Republicans and Biden are staring down a tight deadline as the looming X-date nears — that’s the date the U.S. Treasury runs out of cash to pay the nation’s bills on time.
The U.S. could default on its obligations as summer hits, possibly as early as June, according to analysis by Moody’s Analytics.
New WalletHub Survey Releases Findings for Small Business Week 2023
With Small Business Week starting Sunday, a new survey from the personal-finance website WalletHub found that nearly 2 in 5 small business owners say the occasion helps their business. In addition to its new Small Business OwnerSurvey, WalletHub announced its editors’ selections to help small business owners find savings on key financial products.
Key findings from the survey include:
- Crippling Interest Rates: 63% of small business owners say high interest rates are hurting their business.
- Inflation Challenges: 75% of small business owners say inflation has made it more difficult to run their business.
- Low Tax Importance: Nearly 2 in 5 small business owners say low taxes are the most important factor for small business success.
- Unfair Card Terms: 58% of small business owners think it’s unfair that small business credit cards offer worse terms than consumer credit cards.
- Personal Card Reliance: More than 3 in 4 small business owners say they’ve used a personal credit card for business expenses.
Review the full results of WalletHub’s Small Business Owner Survey.
Regulatory News
FinCEN Assesses $1.5 Million BSA Violations Civil Money Penalty
The Financial Crimes Enforcement Network (FinCEN) has assessed a $1.5 million civil money penalty on South Dakota-chartered The Kingdom Trust Company (Kingdom Trust) for willful violations of the Bank Secrecy Act (BSA) and its implementing regulations. This is FinCEN’s first enforcement action against a trust company.
“Kingdom Trust had virtually no process to identify and report suspicious transactions, resulting in it processing over $4 billion in international wires with essentially no controls,” said FinCEN’s Acting Director Himamauli Das. “This enforcement action is an important statement that we will not tolerate trust companies with weak compliance programs that fail to identify and report suspicious activities, particularly with respect to high-risk customers whose businesses pose an elevated risk of money laundering.”
Kingdom Trust admits that it willfully failed to accurately and timely report hundreds of transactions to FinCEN involving suspicious activity by its customers, including transactions with connections to a trade-based money laundering scheme and multiple securities fraud schemes that were the subject of both criminal and civil actions. These failures stemmed from Kingdom Trust’s severely underdeveloped process for identifying and reporting suspicious activity.
FinCEN appreciates the close collaboration and invaluable assistance of the Department of Justice and the Federal Bureau of Investigation on this matter.
For additional information regarding the facts and circumstances associated with this enforcement action, please see the Consent Order here.
NCUA Issues Letter to Credit Unions, Completing the LIBOR Transition
On April 26, 2023, the NCUA joined with four federal financial institution regulatory agencies and with the state bank and credit union regulators (collectively, agencies) to issue the enclosed Joint Statement on Completing the LIBOR Transition. The joint statement reminds supervised institutions that U.S. dollar (USD) LIBOR panels will end on June 30, 2023.
The agencies reiterate that institutions with USD LIBOR exposure should complete their transition of remaining LIBOR contracts as soon as practicable. Also, institutions need to take all necessary steps to prepare for an orderly transition away from LIBOR by June 30, 2023. NCUA examiners will continue monitoring efforts through 2023 to ensure that credit unions have moved their contracts away from LIBOR in a safe and sound manner and in compliance with applicable legal requirements.
Read NCUA’s Letter to Credit Unions
Chapter News
Harrisburg Chapter Holds Kick-Off Event at Golf Garage
The Harrisburg Chapter of Credit Unions held a networking and informational event at the Golf Garage in Harrisburg, PA. Current and interested members of the chapter attended to connect and learn what the leadership has planned for the year.
From testing their virtual golf game to getting to know new faces, the Harrisburg Chapter’s kick-off event provided an opportunity for credit union professionals to learn what the group’s goals are and how being involved is beneficial for the individual and their credit union.
CrossState’s Erin Ensminger and Nick DiFrancesco represented the Association at the event.
Newsmakers
The Kids-N-Hope Foundation Raises Over $27,000 During 2023 Rhapsody and Rhythm Walk-A-Thon & 5K
Philadelphia, PA – American Heritage Credit Union’s Kids-N-Hope Foundation recently raised over $27,000 during its virtual Rhapsody and Rhythm Walk-A-Thon & 5K this Spring. The 7-day virtual event invited participants to walk their 5K goal at their own pace while virtually fundraising throughout the event to raise funds to support children’s health and life services, including Music Therapy, throughout the Greater Philadelphia region.
Participants were able to join a team or participate as an individual to fundraise and meet their personal goal and help The Foundation reach its goal for this event. All proceeds are benefitting the Kids-N-Hope Foundation and the programs it supports, specifically enhancing children’s health and life services through pediatric music therapy at local hospitals and not-for-profit organizations.
“We are thrilled to have hosted another successful; Walk-A-Thon which raised over $27,000 as a result of our supporters, sponsors, and donors,” stated Bruce K. Foulke, Founder and Chairman of the Kids-N-Hope Foundation. “Although it seems like just yesterday that we started the Kids-N-Hope Foundation with a dream of helping local children through music therapy programs, we are proud of the continual contributions and the work being done to spread our Foundation’s impact on pediatric health. Thank you to everyone who participated and contributed to this event, and we look forward to growing our contributions to continue funding the amazing work our beneficiaries do every day for pediatric health and life services.”
First Capital FCU Awards Four $1,000 Dennis Flickinger Honorable Scholarships to Members
York, PA – First Capital FCU is proud to announce that Benton Koons, Isabella Hons, Anna Watson, and Jessica Rose have been selected as the 2023 Dennis Flickinger Honorable Scholarship winners.
“There were so many great applications this year that we expanded our scholarship awards to help out not just two, but four students,” said Sue DeStephano, President/CEO. “We are excited to see what will become of these young members. They all have very bright futures ahead of them.”
Benton is a senior at Red Lion High School and plans to attend the University of Maine in the fall to major in History. Benton is on the cross country, baseball and wrestling teams and is part of the chamber orchestra.
Isabella attends Central York High School. She plans to attend the University of Tennessee, Knoxville in the fall to pursue a degree in Business Management. Isabella is in the Student Council and National Honors Society and plays lacrosse.
Anna is a senior at Spring Grove Area High School and plans to attend Washington & Jefferson College this fall to pursue a degree in Biochemistry. Anna is the class Communications Officer and the National Honor Society Parliamentarian. She is involved with the Tri-M Music Honors Society, symphonic band, jazz ensemble, and volleyball.
And last but not least, Jessica is a senior at Eastern York High School and plans to attend Wake Forest University this fall to study biology. Jessica is involved with Student Council, Interact Club, National Honor Society, soccer, and Yearbook Club.
The First Capital scholarship program was renamed the Dennis Flickinger Honorable Scholarship Program in 2016 to honor our former CEO, Dennis Flickinger, who retired in 2015. Dennis advocated for financial education in schools and worked tirelessly to promote Credit Unions as a better choice for their financial future.