Notes, news and views on community banking

Northwestern Financial Review, Jan 15-Jan 31, 2005

Chicago Federal Home Loan Bank clarifies earnings, gets plan extension

The Federal Home Loan Bank of Chicago announced it earned approximately $75 million more between Jan. 1, 2001 and June 30, 2004 than previously stated. Total earnings during that period are about $1.2 billion. The bank said it will be issuing restated financial statements for 2003, which will include information about 2001 and 2002. The changes mean the Home Loan Bank's retained earnings and capital as of June 30, 2004 will increase from previously announced amounts. Also, the restatement means approximately $6 million more will be made available through the bank's Affordable Housing Program in 2005.

The Chicago Federal Home Loan Bank also announced it has been given an additional 45 days to submit a final business and capital management plan to the Federal Housing Finance Board. The regulator asked for the plan in an agreement announced June 30, 2004. The new deadline for the plan is Jan. 31, 2005. The new plan will establish capital stock, retained earnings and dividend policies appropriate for the bank's business strategies and will not increase its market, credit or operational risk profiles, the bank said in a statement.

Big credit union to stay a credit union

The Lake Michigan Credit Union in Grand Rapids, Mich., will remain a credit union. The $1.1 billion financial institution proposed to convert to a mutual savings bank. Although 60 percent of the 35,000 people who voted between Nov. 8 and Dec. 8 favored the organization's proposal to change charters, state law requires two-thirds approval for a charter switch. The vote total was about 2,400 short of the number needed to approve the switch. The credit union has 105,000 members.

If the change had been approved, Lake Michigan Credit Union would have become the largest credit union to date to change to a mutual savings bank charter.

The credit union enticed members to vote by offering prizes. Everyone who voted became eligible for a drawing that featured a 2005 Cadillac and five $1,000 awards.

South Dakotan enshrined in University athletic hall of fame

John Lillibridge, chairman of First Fidelity Bank in Burke, S.D., recently was inducted into the University of South Dakota Sports Hall of Fame in Vermillion. Lillibridge was a two sport standout at the university between 1960 and 1962; he lettered twice in basketball and three years in track. In his senior year, Lillibridge won the North Central conference discus title, placed second in the NCAA Division II national track meet in the discus and earned All-America honors.

Lillibridge also has been honored by the school as South Dakotan of the Year, and received the USD Alumni Award and the South Dakota Philanthropist of the Year honor. Lillibridge was honored with induction both for his athletic skills and his continuing support of Coyote athletics. Seven others joined Lillibridge with induction into the Coyote Sports Hall of Fame at a ceremony held last September, bringing the total number of Hall of Fame members to 217.

Football fantasy continues...

Ryan Davidson, son of Graduate School of Banking-Madison's Kirby Davidson, was treated to another big football game, thanks to the University of Southern California. In December, we reported that Ryan, who is battling cancer, visited the USC Trojans in southern California and was greeted enthusiastically by the coach and the players, who said they used Ryan as an inspiration toward a tough football victory. But that wasn't the end of it. The team invited Ryan to its next big game - the national championship played at the Orange Bowl in Miami. The team told the 11-year-old he was welcome to "hang" with them before the game, which was Jan. 4.

Extras...

* The Otto Bremer Foundation, which owns Bremer Financial, recently awarded a $300,000 grant to the non-profit agency, Western Community Action. The organization serves five southwestern Minnesota counties with programs such as Big Buddies, Head Start, along with housing, self-sufficiency, childcare and transportation initiatives. Payable over three years, the grant will support a strategic planning process, assist in leadership development and help the organization implement strategies to eliminate poverty.

* The Federal Reserve Board named Curtis Hage, chairman and CEO of Home Federal Bank, Sioux Falls, S.D., 2005 president of its Thrift Institutions Advisory Council (TIAC). Hage has served as a TIAC member since 2002. The 12-member TIAC also welcomed six new members this year from thrift institutions across the country. The council, which was established in 1980 to provide the Board of Governors with information and views on the special needs and problems of thrifts, meets three times per year. The only other Midwest banker to join Hage on the TIAC is David Hancock, North American Savings Bank, Grandview, Mo.

* Wholesale lenders can market their loan programs to mortgage brokers through a new online community forum and loan search engine found at www.brokeroutpost.com. The new web-based tool is sponsored by the National Mortgage Broker Directory.