We have just learned that the House Financial Services Committee may begin debating two bills that could dramatically affect overdraft protection. The most significant development is that both bills (H.R. 3904 and S. 1799) have the backing of key leaders in both chambers.                  

The most damaging provision in the bills is one that would limit the number of times a credit union member could access overdraft protection to once per month and six times per year.  

Please go to the Grassroots Action Center, http://capwiz.com/cuna, and send a message to your U.S. Representative and to Senator Brown urging them to oppose these two bills.

We also have letters available in our offices for you to sign that we will fax to the legislative offices.

This has been a very difficult year for the financial services industry, including credit unions. Credit unions have fared much better than banks. As of October 26th, 107 banks have gone out of business in 2009. In the same time period only 21 credit unions have gone out of business. 

You might ask, why have so many banks gone out of business compared to credit unions? I believe the answers are simple:

Credit unions focus on what is best for our member/owners (they aren’t just customers to us), while banks focus on what is best for their stockholders – at the expense of their customers.

• Credit unions did not get caught up in the secondary mortgage market like many banks, or chase the yield on risky mortgage products just to increase our income. 
• Our approach to lending and investing is tried and true. When you entrust us with your money we manage it as carefully as if it were our own money, because after all as a member/owner – we work for you.

I tell members that they should put safety first when investing their hard-earned dollars. Even if that means not getting the highest rate in the market place all the time. I also encourage members to ladder their investments at the credit union. Don’t have all of your certificates coming due at the same time; spread them out over time from short term to long term. You may pass up some short term yield, but in the long term I believe you will come out ahead. You can Google “ladder a certificate portfolio” on the Internet and get more information. 

Credit unions have received favorable press this year from many national organizations and news networks. If you are not a credit union member you may want to consider joining ours – we are open to anyone who lives, works, worships or attends school in Licking County.

On Thursday, October 16, International Credit Union Day, Hopewell Federal sponsored the Licking County Chamber’s Candidates Night at the Granville Inn.   About 70 individuals attended and the event was broadcast live on the local radio stations, 1430 WCLT and T-100 – the Newark radio stations.  As the sponsor of the event, we were given the opportunity to tell the audience a little about Hopewell Federal Credit Union.  Since it was International Credit Union Day, it made the event more special in my mind. You can hear the whole program by going to wclt.com.

 Here is my opening remarks for last night meeting.

 Today is International Credit Union Day, the day that credit unions take the time to celebrate the credit union difference and recognize the contributions that credit unions make every day in the lives of their members worldwide. 

Beginning in 1948, credit unions have come together annually on the third Thursday in October to commemorate the credit union movement’s history and achievements.  This year’s the event organizers have chosen the theme Your Money, Your Choice, Your Credit Union to anchor our celebration. 

 Your Money, Your Choice, Your Credit Union represents the many reasons why 177 million people worldwide choose credit unions for access to fair and affordable financial services.  This year, credit unions are especially proud of their repeated acclaim as safe and sound institutions and their continued service to members, even through difficult economic times.

 Hopewell Federal Credit Unions is just one of more than 49,000 credit unions in the world.  Today we join our fellow credit union members in 96 countries in celebrations.  With access to a safe, convenient place to save their money and secure affordable loans, members from all walks of life are able to create new opportunities for themselves. 

 Hopewell Federal opened its doors in 1962 with the vision to serve our members.  Since then, our goal has always been the same: To Help Members Get Ahead Financially.

 No matter where you are in the world, access to financial services is vital. Rich or poor, we all face similar challenges in life.  Together, credit unions are helping members overcome those challenges not only here in Licking County but throughout the world.  The credit union motto is and always will be “Not for profit, not for charity but for service”. 

 Al Smith

Planning for the future

October 2 and 3 was the planning time for the Hopewell Federal management team and our official family.  Every fifteen to eighteen months we get together to think about where Hopewell Federal will be in five, ten or twenty years from now.  It is always our goal to be the local Licking County Credit Union.  You might say we want to be the last credit union standing in Licking County. 

This year we had Mike Diercks of LMI, Leadership Management Institute serving as the facilitator.  In my twenty-six plus years here I find these sessions to be really challenging.  The credit union world has seen tremendous change over the past twenty-five years and who know what the future will have in store for us.  We need to look ahead and try to be ready to meet our members needs no matter what they might be. 

With all the consumer legislation being proposed in the U S Congress, I’m sure we will spend some time discussing how the passage of any of those bills could affect the credit union and the members.  These certainly are tough economic times and call for hard questions to be asked and tough answers.  Our volunteer board and committee freely give up their time to help us set the critical direction of the credit union. 

If you know any of the board or committee members, thank them for the time and effort they spend on your behalf as a HFCU member.

 Al 

Summer has passed, and we are now starting the fall season.  This is my favorite season of the year.  The weather is usually nice.  Evenings cool down into the 40’s or 50’s but daytime highs can still reach into the comfortable 70’s. The leaves on the trees begin to change their colors from green, to shades of orange, yellow, and brown.  Of course if you have trees on your property, you might not enjoy them as much as I do – especially if you have to rake them up.  Since I live in a condo community, I can sit back and watch others rake the leaves and do fall yard work. 

If your children are young and still at home, they are now back in school – so you become busy with all of their many activities.  I participate in the grandparent activities with as many of our fifteen grandchildren as I can.  I love football at all levels from high school to professional.  I cheer for the Newark Catholic Green Wave, the OSU Buckeyes and (don’t laugh) the Cincinnati Bengals.  Some day the Bengals will have a winning season again.  Hope you enjoy the season and cheer on your favorite teams as well. 

Fall might be a good time for you to do a check up on your finances also.  With Christmas only three months away, won’t it be nice to have some cash to buy this year’s gifts instead of putting them on plastic.  The buy now pay later plan always comes at a cost.  I would encourage you to start thinking of setting up a Christmas club account for 2010.  We call it our HOHO club account.  Call and talk to one of our team players today to get this started. 

I encourage you to not over spend this upcoming holiday season.  I know that the temptation is great but try to exert some will power.  You’ll be glad you did.

Hello,

I want to take this opportunity to say not only good-bye to Cammie, but to also thank her for all that she has done in her two and a half years at Hopewell Federal. Cammie will be relocating with her family to Tennessee. Credit unions are now part of who she is. Even though Hopewell Federal will be losing a credit union marketer, a credit union in Tennessee will be gaining a good one.

Cammie has moved our marketing and public relations efforts to a new level. The electronic level. One that will be challenging to maintain - but we will. Of course, Cammie came up with the “Ask Al” blog idea and even convinced me how valuable a communications tool it would become. She also convinced me that we needed to tweet on Twitter. So we do. But I drew the line when it came to Facebook. I still believe Facebook is more for social media than business media, maybe that’s old school thinking, but that’ s how I feel.

So if you will, please thank Cammie for her time here at Hopewell Federal and wish her and her family the best, as they take up residency in Tennessee. Best wishes Cammie and thank you for a job well done!

Sincerely,

Al

Whether you live, work, worship, volunteer or go to school in Licking County … you can be a member of Hopewell Federal Credit Union. That being said, do you play an active role in the community. What will you be doing on November 3rd of this year? We serve all of Licking County including the Heath area who has been in the spotlight lately for their upcoming elections. However you choose to vote, I hope that you will be doing you civic duty and voting in the general election.

Although this is not a major election there are many local issues and offices where you can vote. In the City of Heath, we will vote for a mayor and several council positions. I think it is very important for myself, a resident of Heath, to learn as much as possible about the candidates and vote for who I believe, will do the best for our city. Also on the ballot in Heath, will be a charter amendment to remove the cameras that have been installed on Hebron Road and 30th Street. The purpose of the cameras are to slow down traffic and make driving in Heath a safer experience. Living here, I do know that they have done that. I was surprised to read how many tickets were issued in the first weeks of operation to those going at least ten miles over the posted speed limit. This issue has also created a lot of controversy in the press. I look at it this way, if I obey the rules of the road, I will not get a ticket. Whatever you do or whatever your opinion is, your voice can be heard at the polls. And if you will not be in town to vote that day, you can always obtain an absentee ballot and vote in advance.

I don’t care if you’re a Democrat, Republican, or Independent, the only way for your voice to be counted is to vote. So do your civic duty and vote on November 3rd for the candidate of your choice and on the issues that concern you.

Have a Safe Holiday Weekend-

Until next time.

Al

Hi folks,

I read our local paper, the Newark Advocate, every single afternoon. It’s just a habit, I’m usually pretty busy in the mornings, so that’s when I get around to the paper. There was a recent article on the OPINION page, posted on Tuesday, August 26th, it was taken from the New York Times, and it captured my attention. It was entitled “Until the Financial System Reformed, We Should Be Angry”  you can read a copy of the opinion article here: http://tinyurl.com/mo4s7m.

I wrote a response to the article and sent it in to the Newark Advocate, but I thought it was important to share it with you here as well. Credit unions aren’t part of the financial system  problem, we’re part of the solution. You can see my response down below, just some food for thought- and I welcome all comments.

Thanks,

Al

My opinion article-

After reading the recent Guest Opinion article titled, Until Financial System Reformed, We Should Be Angry, from the New York Times, on the opinion page in the Tuesday, August 25^th edition of the Newark Advocate, I decided I’d like to take this opportunity to respond.

Now is the time, to turn to America’s best kept secret of the financial world, and folks, that’s a credit union? Yes, I am the President and CEO of Hopewell Federal, but I’ve also been a part of the credit union industry for more than 40 years, and I can safely say, that we have not been a part of the banking problem, we are a part of the solution. Credit unions are strong, safe and secure. They’re member-owned. That means that you won’t see any golden parachute retirement packages or stock options here.  In fact, after we pay bills to keep the lights etc. and set reserves aside, we can offer our members lower rates and fees on most financial products, because we don’t have stockholders. As a member- owner, you become one of the owners of the financial cooperative. You can even run for a board of director’s position, if you so desire because credit unions elect their board members from within their own membership. We even own our own credit card portfolios so that we can manage them ourselves and continue to offer better rates that make sense and lower fees that won’t gouge your wallet.

This year marks the 100^th anniversary of credit unions. Yes, it’s hard to believe but we have been around for that long and still struggle for our voices to be heard. Typically, to join a credit union you have to meet one of the requirements of their field of membership, whether that’s the place you work or the community where you live. We have several credit unions in Licking County that you could choose to join. And I’m proud to say that we all work cooperatively together. While we may not be as big as some banks, you can use our shared branching service and do your banking at any of them, for free. Let’s face it, sometimes ATM charges can really add up if you’re not at your own institution and that’s another convenience we all offer to our members. Plus, three credit unions in our area, Harvest, Fiberglass and Hopewell Federal are participating in Bet You Can Save.com. It’s a contest where 10 central Ohio credit unions chose a family to coach and help save money. The contest takes places over five months and the winning family receives $10,000. The runner up families will receive $500. But more importantly, we’re teaching them how to get ahead financially.

While the New York Times article does not mention credit unions in the midst of this financial mess, there have been many media reports including a recent post in the New York Times, Economix blog that tout credit unions as superheroes. While we may not wear capes, we’d sure like to be the financial superheroes in your life. So don’t waste time being angry, do something about it. I invite you to compare your current rates, products and services to the credit unions that serve Licking County; you may find the difference surprising.

 Al Smith
President & CEO
Hopewell Federal Credit Union

Hi folks,

Al here. It’s Friday, August 21, for some school’s back in session already and for others, their kids go back next week. It’s a busy time at Hopewell Federal as well. We’ve had several folks retire lately, and have made some changes by hiring some new faces! I invite you to stop in, say hello and get to know the newest members of our Hopewell Federal Staff. They’re enjoying their jobs so far and are anxious to get to know you!

Our marketing director will be leaving us soon as well. You may have read her posts on this blog from time to time. Cammie, who yes, really did sit on a giant yoga ball-it’s still in her office, is relocating to the state of Tennessee. We are going to miss her too!

While there are some new faces here at Hopewell Federal, you’ll still see some familiar ones as always, and one thing that won’t change is the frosted mug service that we love to provide to our members. It’s that extra special thing you weren’t expecting that makes us different. And I’m proud of that service.

When it comes to banking, the difference is in the details and I’m telling you-if you’re not happy with your current financial institution, I ask you to compare what rates and fees your paying to the products and services we offer here at Hopewell Federal, you might be pleasantly surprised at the difference a credit union can make in helping you get ahead financially.

Have a great weekend everyone!

Folks,

I’m happy to say that this month, is a mini-milestone for my Ask Al blog. It’s our 2nd anniversary! Can you believe it has been two years?

Hopewell Federal was one to the first credit unions to have a blog and use it to communicate with member and non-members. Many of my peers have asked for help in starting a blog for their credit union and we have happily and cooperatively obliged. Why? Because it’s all about people helping people, that’s why! Even our fellow credit unions across America.  I guess you could say that “Ask Al” was a first for Ohio credit unions! I hope you have enjoyed reading my comments as much as I havewriting them.

I guess if there’s any real flaw with the blog, I’d like to see more people ask me some new questions! I know we get plenty of readers, but I’d love to hear from you too! 

When it comes to credit unions, I’ve been in the business since 1968 - wow, that’s a long time! But during my tenure, I’ve witnessed plenty of changes over the years. Credit unions have come a long way in the past forty-one years. I can remember when credit unions only served employees of an individual business. When they only offered savings accounts and small consumer loans. Now, credit unions, like Hopewell Federal, are full service financial institutions serving entire communities. And credit unions are doing well in this difficult economy. 

Hopewell Federal is continuing to grow and serve our members. No layoffs here, folks! So, thanks for allowing me to post or “boast” my own Ask Al anniversary… and remember,  if you have financialquestions- just “Ask Al”.