This week in the New York Minute, read our feature on Joe Chiara, Director of Public Relations and Marketing at the Association, catch up on Bill Mellin’s testimony from a recent Senate hearing on mortgage banking inequalities, and celebrate the recognition of our credit unions by the Children’s Miracle Network Hospitals. Plus, stay informed about the latest state labor law updates affecting non-compete clauses and overtime pay thresholds.

Staff Spotlight: Meet Joe Chiara

This week, the Association shines a spotlight on Joe Chiara, our Director of Public Relations and Marketing. Joe plays a pivotal role in ensuring that our credit unions have the resources they need to get the most out their membership. When he’s not handling our many press releases and communications, Joe enjoys embracing the great outdoors. Outside of his career, you can find him hiking with his dog or cheering on his favorite team at a game.

Through his continuous efforts to connect New York credit unions with the tools they need to succeed, Joe Chiara is playing a major role in supporting the credit union movement statewide.

Mellin Testifies on Inequalities in the New York Mortgage Banking Industry

On Tuesday, May 7th the Association’s President and CEO, William J. Mellin testified in front of the New York State Senate Banks Committee on behalf of New York’s credit unions. Specifically, the topic of discussion was ‘Inequalities in the New York Mortgage Banking Industry.’

The hearing consisted of three panels, each of which had unique experiences and stories to share in regard to the current mortgage lending landscape in New York:

The first panel consisted of Max Dubin, Esq., the Special Counsel to the Superintendent of the New York State Department of Financial Services, Sandra Park, Chief of the Civil Rights Bureau for the Office of Attorney General Letitia James, and Christopher D’Angelo, Chief Deputy Attorney General for Economic Justice for the Office of Attorney General Letitia James.

The second panel consisted of William J. Mellin, President & CEO of the New York Credit Union Association, Jeff Pinard, President of the New York Mortgage Bankers Association, and John J. Witkowski, President & CEO of the Independent Bankers Association of New York State.

The third panel consisted of Michael Corcoran, Deputy Director of the Homeowner and Consumer Rights Project for Queens Legal Services, Latoya Allen, the Deputy Executive Director of Home HeadQuarters, Inc., and Christie Peale, CEO/Executive Director of the Center for NYC Neighborhoods.

“New York credit unions are working to alleviate disparities present in mortgage banking and are actively looking for solutions and developing strategies to bring more New Yorkers into mainstream financial services by providing fair products to improve their lives. Credit unions meet New Yorkers where they are and believe that regardless of location or socioeconomic status, everyone should have access to pro-consumer financial services, and to homeownership. Credit unions are dedicated to their mission of ‘People Helping People’ and will continue to do their part to ensure financial inclusion for all New Yorkers,” said Association President & CEO William J. Mellin.

The Association would like to thank Senator James Sanders Jr., the Chairman of the NYS Senate Banks Committee, and other members of the committee for including credit unions in the discussion on how to better serve all New Yorkers financially.

Click below to watch the full hearing and hear more from Sen. James Sanders Jr.

Credit Unions Recognized by Children’s Miracle Network Hospitals

The Credit Unions for Kids National Advisory Board recently accepted the Founders Award on behalf of the entire credit union industry. This special award, given during Children’s Hospitals Week, recognizes the significant contributions credit unions have made to Children’s Miracle Network Hospitals (CMN Hospitals) and highlights the credit union community’s dedication to improving pediatric healthcare through CU4Kids.

This collaboration between CMN Hospitals and CU4Kids has raised over $200 million since 1996, directly benefiting children and their families across the nation.

This award is a testament to the generous mission of credit unions. Congratulations to all credit unions across the country for achieving this honor and for continuing to make a difference in the lives of so many. New York’s credit unions consistently provide tremendous support to the many CMH Hospitals throughout the state. In addition, the Association will be hosting its annual wine pull for CMN Hospitals during EXCEL 24 on June 13 in our exhibit hall. For more details about this recognition, our wine pull, and the ongoing efforts of credit unions in supporting children’s health, click below.

State Labor Law Updates Affecting Credit Unions

New York credit unions need to prepare for key regulatory changes originating from recent federal rulings aimed at enhancing worker rights and promoting economic dynamism. These changes pertain primarily to non-compete clauses and overtime pay thresholds.

Non-Compete Clauses:

The Federal Trade Commission (FTC) has implemented a final rule that bans non-compete clauses nationwide, a decision motivated by a desire to bolster competition, protect workers’ freedom to switch employers, spur innovation, and encourage new business development. This rule, affecting roughly 30 million U.S. workers, aims to eliminate barriers that have historically suppressed wages, stifled innovation, and restricted economic growth. The prohibition of these clauses, except for senior executives with substantial earnings, marks a significant shift in employment law that credit unions must adapt to by revising employment contracts and considering alternatives like non-disclosure agreements to protect intellectual property.

Overtime Pay Thresholds:

Simultaneously, the U.S. Department of Labor (DOL) has revised the overtime exemption criteria under the Fair Labor Standards Act. Announced on April 23, 2024, the new rule significantly raises the minimum weekly salary required for white-collar exemptions. This adjustment aims to extend overtime protections to a broader group of employees, ensuring they are compensated fairly for overtime work. The planned increases will require credit unions to reassess their payroll strategies and ensure compliance with both state and federal thresholds, which could be particularly challenging given New York’s already stringent standards.

These regulatory updates will require careful planning and adjustments by credit unions to adhere to federal standards while managing costs and employee benefits. For information on these changes, read below.

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This week in the New York Minute, we introduce Vicky Burdick and highlight her decades-long journey in the credit union industry. Additionally, we delve into Bill Mellin’s important meeting regarding Minority Depository Institutions, celebrate five credit union leaders recognized for their influence in the financial sector, and provide updates on the New York State budget that affects CUs statewide.

Meet Our Board: Vicky Burdick

This week, we’re spotlighting Vicky Burdick, the CEO of Jamestown Area Community FCU and a member of the Association’s Board of Directors. Vicky reflects on her decades-long journey in the credit union industry, sharing insights into her path from her first role in 1978 to leading a thriving credit union and serving on the Association’s board.

In her interview, Vicky highlights the importance of collaboration among credit unions, the role of the Association in fostering these connections, and her contributions to the success of both the Association and the credit union movement. Learn about what drew her to the credit union movement, and the unique philosophy that has guided her throughout her career.

Association CEO William Mellin Discusses Minority Depository Institutions

On Wednesday, April 24th, the Association’s President and CEO William Mellin participated in an important gathering focusing on Minority Depository Institutions (MDIs) in New York and their lack of accessibility to City and State capital.

The meeting was hosted by Senator James Sanders Jr., Chair of the New York State Senate Banks Committee, Brad Lander, New York City Comptroller, NYC Council Member Justin Brannan, Chair of the City Council Finance Committee, Thomas DiNapoli, New York State Comptroller, and Preston Niblack, NYC Finance Commissioner. Also in attendance were various representatives from financial organizations and MDIs.

The meeting was held at the Office of the New York City Comptroller Brad Lander, in Manhattan, and provided a platform for open dialogue and collaboration. Many participants viewed the meeting as an important step forward in addressing the wealth gap. “During the meeting I had multiple opportunities to comment on the many ways New York’s credit unions are servicing minorities, helping them build wealth and stability,” said Mellin. “I also explained the lack of depository choice for New York municipalities and shared with the participants how public funds, deposited into credit unions, would advance our mission of financial equity for all.”

Mellin stated, “It was a privilege to be included in the conversation surrounding minority depository institutions. Credit unions remain committed to providing fair and equal opportunities to all members throughout the state and will continue to explore all options dedicated to enhancing and improving financial support initiatives and access to resources for minority populations.”

Read more about the event below!

Long Island Business News Recognizes Five CU Leaders

The Association proudly congratulates five New York credit union leaders for being recognized in Long Island Business News’ “Long Island Business Influencers:” in banking and finance. Linda Armyn of Bethpage FCU, Brad Calhoun of Teachers FCU, Michele Dean of Suffolk FCU, John Deieso of Jovia Financial FCU, and Joseph Tedesco of Ocean Financial FCU were honored with this recognition.

This distinction acknowledges their outstanding contributions and leadership that they bring to the financial sector and highlights their roles in supporting Long Island’s economic growth and development.

These leaders’ efforts contribute significantly to their local communities through various initiatives, grants, and philanthropic endeavors, and underscores the critical role credit unions play in promoting financial health and literacy across Long Island.

We congratulate these individuals for their achievements and commend them for their dedication to the credit union movement. To read the full report, click below!

New York State Budget Updates Impacting Credit Unions

The New York State Legislature has introduced and passed the final budget bills for the fiscal year. This budget contains several measures that directly impact credit unions.

Revenue: The budget closes the amended return loophole for personal income and corporate franchise taxes, allowing the Department of Taxation and Finance to take action on amended returns not related to existing petitions for the same tax year. This affects taxable years beginning on or after January 1, 2024. Additionally, it extends the sales tax exemption for transactions between financial institutions and their subsidiaries for one year.

Education, Labor, and Family Assistance Bill:

• This bill ensures 30 minutes of paid break time for nursing mothers to express breast milk, starting June 19, 2024. Time beyond 30 minutes can be covered by existing paid breaks or meal time.
• The COVID-19 sick leave law has been extended until July 31, 2025.
• Budget allocates $94.95 million from excess reserves to support community development and housing programs.
• Enhances protections against deed theft, establishing the crime of deed theft and protecting heirs’ property. It also provides for transfer-on-death deeds to prevent predatory practices.

Public Protection and General Government Bills:

• Starting January 1, 2025, employers will need to provide 20 hours of paid prenatal leave for pregnant employees in a 52-week period. This leave is in addition to existing sick leave and can be used for medical appointments, testing, and consultations with healthcare providers.
• In addition, the budget bill includes legislation to provide a framework for managing surplus funds from tax foreclosure sales, limits the removal of tax exemptions for nonpayment, and offers protections for homeowners, including installment plans and payment grace periods for STAR recipients.

The Association will continue to monitor these developments and provide guidance on how they may impact credit unions across New York State. If you have any questions regarding the New York State budget, please reach out to the Association’s Chief Advocacy Officer, Amy Kramer, at amy.kramer@nycua.org.

For more information, read the full summary from the Governor’s office below!

In this week’s New York Minute, we’re excited to announce the winners of the 2024 Scholarship Program. Additionally, don’t miss your chance to sponsor EXCEL 24, an event that supports the growth and success of New York credit unions. We also highlight four credit unions recently honored for their exceptional workplace culture, and hear from TruStage on finding the right fintechs.

Announcing Our 2024 Scholarship Award Winners!

We’re thrilled to announce the recipients of the 2024 Scholarship Program, an initiative from the Association to support the educational aspirations of young credit union members across the state. This year, our program received an overwhelming response of over 1,000 applicants participating from 55 credit unions across three chapters.

This year, students received scholarships totaling $28,500 in awards. Scholarship amounts ranged from $250 to $1,500. This program is one way we renew our commitment to the educational advancement of our community, and we are proud to aid these young members in reaching their academic goals. Thank you to all the participating credit unions and chapters that continue to make this important investment in our youth.

Congratulations to all the winners!

Reminder: Register Today to Sponsor EXCEL 24!

Time’s running out to seize the opportunity to become a sponsor for EXCEL 24. Your support plays a pivotal role in advancing the success and growth of New York credit unions. This year’s sponsorship opportunities are not only unique but are designed to make a significant impact across our community.

Here are just a few ways you can contribute:

• TruStage Golf Tournament: Show your competitive spirit and support the New York Credit Union Foundation.
• Wine Pull: Become a beacon of hope for the Children’s Miracle Network Hospitals.
• Silent Auction: Gain visibility with your name and logo featured on signage, tables, the Association website, and the silent auction app.
• Trivia Night: Support the Young Professionals Commission (YPC) with opportunities for verbal recognition and branded presence at the event.
• Bingo: Engage participants with fun and games, while receiving signage recognition.

These sponsorships support important causes and highlight your organization’s commitment to supporting the New York credit union community.

Don’t miss your chance! Secure your sponsorship today to make your mark on EXCEL 24, which promises to be an unforgettable event. For more details on each opportunity, please visit our sponsorship page.

Four Credit Unions Recognized As Top Workplaces

In recent honors for exceptional workplace culture, four New York credit unions have been recognized for their dedication to employee satisfaction and organizational excellence, demonstrating a strong commitment to fostering environments that prioritize the well-being and professional growth of their teams.

Reliant Credit Union and Family First Credit Union were both celebrated by the Democrat and Chronicle within the Rochester Metro Area. Reliant Credit Union, for its seventh consecutive year, was acknowledged for its superior benefits, standing out as the best in the market based on employee feedback regarding the benefits package. This distinction underscores Reliant’s ongoing effort to ensure its team members feel valued and well-compensated. Family First Credit Union, marking its third consecutive accolade, was recognized in the smaller company size category of 35-124 employees, emphasizing its commitment to maintaining a supportive and collaborative work environment.

First New York Federal Credit Union was lauded by the Times Union for the Capital District in the company size category of 100-299 employees, underscoring its commitment to fostering a positive work environment that supports both professional and personal development.

AmeriCU Credit Union received the title of “Best Place to Work” for the eighth year, demonstrating its ongoing commitment to creating a culture of excellence and collaboration. The credit union’s proactive approach to employee development and community engagement, which includes a leadership program and various team-oriented initiatives, was highlighted during the awards ceremony. AmeriCU’s holistic approach to employee wellness and development is reflected in its consistent recognition as a top employer, showing a genuine commitment to not only the financial health of its members but also the overall well-being of its employees.

The Association extends its congratulations to Reliant Credit Union, Family First Credit Union, First New York Federal Credit Union, and AmeriCU Credit Union for their exemplary achievements in creating standout workplace cultures. These awards reflect the strong commitment of New York’s credit unions to not only serving their members but also ensuring their teams are engaged, supported, and valued.

Here Are 5 Steps That Credit Unions Can Take To Find The Right Fintechs Today

By Brian Bodell, VP Fintech Solutions at TruStage^TM
Fintechs have disrupted the status quo by offering streamlined digital solutions that challenge traditional banking models, empowering individuals and businesses with greater control over their finances and democratizing access to financial services.

With a focus on user experience, innovation and agility, fintechs continue to reshape the financial landscape by driving increased competition, efficiency and inclusion within the industry. Which is why the relationship between fintechs and credit unions is tricky. While there can be direct competition with credit unions, there’s also a great opportunity for partnership and collaboration with the right fintechs that focus on empowering credit unions.

How Credit Unions Can Partner Successfully With A Fintech Today
There are many fintechs in the market today, nearly 30,000 worldwide to be exact1, which makes the decision of who to partner with a challenge. Many factors need to be considered, so having a framework and process in place to determine who to partner with is essential.

Try these 5 steps

1. Clearly define your objectives and success measures
   Start by defining what problem(s) you are trying to solve or what capabilities you need to add to your stack. For example, are you trying to reduce fraud, drive more deposits, make your lending more inclusive, or add real-time payment capabilities? For each of these objectives, you should benchmark your current state, define target improvements over time, and how those improvements will be measured.
2. Assign value
   Develop a scoring model to prioritize what features will drive the most value for your credit union and/or your members. Each component of the scoring model should be weighed based on its importance.
3. Scan, score and select with confidence
   Conduct a market scan to identify a handful of fintechs that can meet 80% of your needs. Narrow down options based on your initial review and invite the top three to five providers to respond to a reasonable RFI or RFP along with a comprehensive demo and architecture review. Understanding compatibility with your existing tech stack, your infrastructure, and your volume requirements is critical. There are several great firms that can assist credit unions with this partner selection process.
4. Do your due diligence
   After selecting a provider, conduct a thorough due diligence process, digging into financials, product investment trendlines, architecture, and deployment models. Evaluate factors like user experience, implementation, testing, and support processes, data management capabilities, cybersecurity profile, regulatory compliance and integration capabilities, to name a few!
5. Forge a partnership
   Work to form a partnership with the firm and understand how you will work together in good and challenging times to meet the objectives of both parties. Establish clear expectations, success measures and reporting along with regular check-ins to manage the partnership over time.

To recap, start with your strategy to understand what needs can be quickly filled by the right fintech partner(s). Then run through this five-step process with each partner and refine it over time to meet the needs of your particular credit union. Credit unions and fintechs must work together to quickly meet the evolving needs of members and the rapidly changing competition.

The views expressed here are those of the author(s) and do not necessarily represent the views of TruStage.
1Statista, Number of fintechs worldwide 2018-2024, January 2024
TruStageTM is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wis.
© TruStage
FT-6475841.1-0324-0426

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In this week’s New York Minute, we’re introducing you to another Association board member, celebrating Financial Literacy Month, providing you with an economic outlook from TruStage, and more! Read our weekly updates for all you need to know in New York credit union news.

Meet Our Board: Keith Stone

This week, we’re shining a spotlight on Keith Stone, an Association board member, President & CEO of The Finest FCU, and CEO of the New Jersey State PBA FCU. A native of Brooklyn and a significant figure in the credit union sector, Keith has dedicated his career to providing specialized financial services for law enforcement communities in New York and New Jersey. His journey from a humble beginning in a small credit union to leading substantial financial institutions exemplifies the credit union philosophy of “people helping people.”

Learn more about how Keith’s commitment to community service and development has shaped his impactful career. For a deeper dive into his story and contributions, click here to read the full blog.

The Association Celebrates Financial Literacy Month

This April, as we celebrate Financial Literacy Month, the Association is proud to reinforce our commitment to financial literacy for credit unions and members statewide. As not-for-profit organizations, credit unions are in a unique position that allows them to have their members’ best interest in mind and ensure they’re making the right financial decisions.

This month, and every month, the Association is committed to making financial literacy resources widely accessible to credit unions across the state as part of our broader mission to support the financial education of communities we serve. Through educational events, certifications programs, online resources, and more, we’re proud to share a plethora of opportunities to help credit unions improve the lives of their members through financial literacy. Furthermore, through the New York Credit Union Foundation, we’re able to provide grants to credit unions statewide to host their own events to improve financial literacy in their communities.

Our efforts are amplified by supporting legislation that seeks to integrate financial education into the curriculum at various educational levels, helping to lay a foundation for financial health from an early age.

Explore more online resources for credit unions below, and remember to keep your financial health in mind year round!

SeaComm Federal Credit Union Wins Two Diamond Awards

SeaComm FCU has been recognized by the Marketing & Business Development Council of America’s Credit Unions with two Diamond Awards that recognize outstanding marketing and business development achievements.

SeaComm, in the category for credit unions with assets between $500 million and $1 billion, won its first award for their innovative use of social media, and earned their second award in the Category’s Best “Diamond in the Rough” award for their “Plunky’s aMAZEing Race” sweepstakes. This creative campaign featured the beloved character Plunky O’Swoosh and involved a virtual maze game that attracted thousands of entries and significantly enhanced member and social media engagement.

Chantel Johnston, SeaComm’s Senior Marketing Multimedia Specialist, expressed pride in the character’s popularity and its effectiveness in fostering community connections online. SeaComm’s success in these categories highlights its commitment to excellence and innovation in serving its members and the broader community. With a strong focus on creative marketing strategies, SeaComm continues to set a high standard for credit unions nationwide.

To view the full list of Diamond Award Winners, click below!

Join Credit Union Real Estate Network for a Live Event!

You’re invited to Credit Union Real Estate Network’s (CUREN) live event! This event will be CUREN’s first in-person gathering and will feature a comprehensive 5-hour curriculum aimed at enhancing real estate practices within the credit union industry.

Date: May 7th, 2024
Time: 11:00 AM to 5:30 PM
Location: Sunmark Credit Union
1187 Troy-Schenectady Road, Latham, NY

The agenda includes an economic and market overview, a deep dive into the technological advancements in the mortgage sector focusing on AI and machine learning, and strategies for developing robust sales cultures and mortgage sales strategies. Additionally, a dynamic roundtable will discuss maximizing fair lending strategies and identifying new market opportunities.

Speakers and panelists for the day include industry experts

• Brad Tichneor, Accelergy Consulting
• Eric Lapin, FormFree
• John Dumonsau, Optimal Blue
• Vincent Furey, Meridianlink

Please register early as space is limited. This is a unique opportunity to gain actionable insights to implement within your organization and engage with peers. To learn more about this event and reserve your space, click below.

March 2024 Trends Report from TruStage

TruStage recently released its Economic and Credit Union Update and Trends Report for March 2024, offering a clear look at how recent economic changes are affecting credit unions. This report explores important topics like loan growth, consumer credit, and vehicle loans, giving a snapshot of the current financial landscape for credit unions. It provides essential insights into how these financial institutions are adapting to changes and what that means for their future.

Here’s a summary of the key findings and what they suggest for credit unions moving forward:

Highlights from the Credit Union Trends Report

• Home prices rose more than 6% over the last year, above the 4.1% long-run average.
• The credit union industry’s net income to average asset ratio, return on assets, fell to 0.68% in 2023, down from 0.88% in 2022.
• Total credit union memberships reached 142.1 million in January 2024.
• Credit union savings balances fell 0.3% in January due to members paying down credit card balances.

Highlights from the Economic Report

• The core PCE measure of inflation rose 2.8% during the last year ending in February, approaching the Federal Reserve’s target of 2%.
• The U.S. economy grew 3.4% in the 4th quarter of 2023, above the 2% natural growth rate and increased 3.1% from the 4th quarter of 2022.
• Average hourly earnings rose 4.3% during the last year, above the Federal Reserve’s target of 3.5%.
• The credit union loan-to-asset ratio rose to 71.2% in January, from 69.9% one year ago.

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