Financial institutions prepare for change on business depositsRedwood Credit Union and Cal State Central Credit Union have completed a merger, with Redwood Credit Union remaining as the surviving organization. The merger, announced earlier this year, was approved by the boards of directors for both organizations, and by industry regulators, the National Credit Union Administration and the Department of Financial Institutions.
“We are honored to welcome CSCCU members and employees to Redwood Credit Union. We have a great deal to offer our new members in terms of value, service and convenience,” said Brett Martinez, Redwood Credit Union’s president and chief executive officer. “And all of our nearly 200,000 members will benefit from the three additional locations to our branch and ATM network resulting from this joining.”
CSCCU’s prior locations on Dutton Avenue in Santa Rosa, in Sonoma and in Glen Ellen have become Redwood Credit Union branches. Cal State’s Rohnert Park office was closed since RCU already offers a nearby branch and ATMs at 250 Rohnert Park Expressway in Rohnert Park.
“CSCCU has served the financial needs of state employees and our community for nearly 75 years. Our partnership with RCU is allowing us to fulfill our mission and provide the added benefits our members want and deserve,” said Jim Larson, CSCCU’s CEO.
Redwood Credit Union has nearly $2 billion in assets, now offers 18 Bay Area locations.
Addison Avenue FCU has merged with First Tech Credit Union of Oregon in a $4.6 billion merger, keeping the First Tech name.
Addison was formerly the credit union serving Hewlett-Packard and Agilent Technologies.
The merger was completed June 1, 2011.
Market Rates Insight out of San Anselmo contends that the current landscape of business deposits is likely to change as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Section 627 of the Dodd-Frank Act, which repeals Section 19(i) of the Federal Reserve Act, effective July 21, will allow business customers to earn interest on their checking accounts.
“Not every business customer is going to jump on the interest-checking bandwagon,” said Dr. Dan Geller, executive vice president at Market Rates Insight.
He said that assuming the interest rates offered on business checking will mirror the rates currently offered on high-yield consumer-checking accounts, it is very likely that balances will shift from business money market and maturing business CDs of nine months or less into business checking.
The California Board of Accountancy’s Accounting Education Committee and Ethics Curriculum Committee will hold a joint meeting June 7 to unveil their proposals for the 30 additional hours of education necessary for CPA licensure in California, beginning January 2014.
The education committee has been working on a framework for the 20 semester units of accounting study, while the ethics committee has been working on a framework for the 10 semester units of ethics study.
These additional hours were the result of the California Legislature’s passage of Senate Bill 819 in 2009. The new requirements are designed to enhance consumer protection by strengthening the competency of applicants as practitioners.