Find out how lawyers, lobbyists and the Iowa state legislature became embroiled in a saga involving accusations of coercion, fraud and vote tampering.

Wait, Credit Unions Can’t Buy Banks… Can They?

Before 2003, no credit union in the United States had ever bought a bank. But the University of Iowa Community Credit Union (UICCU) was hoping to be the first when it announced plans to buy Hawkeye State Bank on January 23 of that year.

UICCU, a $300 million institution at the time, had recently entered the commercial lending market, and it saw its acquisition of Hawkeye State Bank as an excellent way to expand the effort. Jeff Disterhoft, President and CEO of UICCU, told The Credit Union Journal that he was attracted to the bank specifically because of its commercial services.

Disterhoft planned to merge all of Hawkeye State Bank into UICCU’s operations, including $97 million in deposits. That would have required converting all of the bank’s customers into new members of the credit union. And most importantly, the acquisition would have nearly doubled the credit union’s business loan portfolio — $12.7 million in commercial loans from Hawkeye on top of the $13.6 million in business loans at the credit union.

UICCU had initiated discussions with Hawkeye after the bank’s board fired its CEO, Ray Glass, in late 2002 for embezzling millions of dollars from the $162 million institution. The troubled Hawkeye State Bank had been approached by a number of suitor banks, but the credit union apparently offered the best deal.

The deal was far from straightforward though. In fact, it was highly controversial and needed approval from multiple governmental agencies to go through. You see, UICCU’s acquisition of Hawkeye would have automatically converted a tax-paying bank into an untaxed credit union. Also as a result of the acquisition, the bank would no longer need to pay Iowa’s franchise tax on banks. Bankers felt this was a gross injustice.

Bankers Go Berserk

UICCU’s plans to acquire a bank angered the Iowa Bankers Association something fierce. The IBA, which represents over 95% of Iowa’s 400 banks, has long complained about the unequal tax treatment of banks and credit unions. For nearly two decades, the IBA has fought viciously to have credit unions taxed just like banks because (they claim) credit unions nowadays are effectively the same as banks.

In 2002, the year prior to UICCU’s attempted takeover of Hawkeye, banks paid the state of Iowa over $29 million in taxes. Credit unions, on the other hand, paid basically nothing.

The tax dispute between banks and credit unions in the U.S. is nothing new, nor unique to Iowa. The battle has become so nasty over the years that it’s turned into the financial industry’s equivalent of sectarian violence.

But the UICCU/Hawkeye deal had finally pushed the IBA over the edge. In their view, UICCU was trying turn a member of their own tax-paying flock into an untaxed credit union.

Bankers Say, “There Oughta Be a Law!”

The first thing the IBA tried to do was get Iowa lawmakers to tax UICCU’s purchase of Hawkeye. John Sorensen, president of the Iowa Bankers Association, said that if a credit union can afford to buy a bank, it should pay taxes the same way banks do.

Then the IBA upped the stakes. At its annual management conference, the IBA announced it was initiating a major offensive against the tax-free status of the state’s six or seven biggest credit unions, one of which included UICCU. Soon thereafter, the IBA convinced Iowa’s Republican lawmakers to sponsor a bill.

Sharon Presnall, IBA’s senior vice president for government relations, described the bill as “very narrow,” affecting “only the very largest credit unions.” She also noted that the issue appeared to be “gaining traction” because of UICCU’s planned bank purchase.

“It’s the dumbest political thing I’ve ever seen for a credit union to buy a bank while the legislature is in session.”
– Chuck Gipp (R)

Roth & Company, a certified public accounting firm in Iowa, agreed. In one of the firm’s client bulletins, it noted that Iowa banks’ push for a tax on credit unions “got nowhere until the University of Iowa Community Credit Union attempted to buy Hawkeye State Bank.“

Iowa House Majority Leader Chuck Gipp (R) dialed the language up a notch, characterizing the credit union’s attempt to buy a bank as just about the dumbest thing he’d ever seen.

Indeed, the very idea that credit unions could accumulate enough tax-free capital to buy a bank gave the IBA’s tax proposal the momentum it needed to advance out of committee in both houses of Iowa’s state legislature in February 2003.

Full Court Press

The bill advocated an equal 5% tax on those credit unions with assets exceeding $150 million, fewer than ten of the state’s 189 credit unions at the time. In total, the bill would have cost Iowa’s top six credit unions about $1.4 million in new taxes every year. The spirit of the bill was essentially to level the playing field by taxing credit union earnings so they couldn’t, among other things, “buy banks.”

UICCU could never have foreseen how hard the IBA was going to fight its planned bank acquisition. But the IBA leaped into battle with one of its most aggressive media campaigns ever. To support the bill, the IBA began airing one-minute commercials on 24 different radio stations, and sent 10,000 letters to Iowa legislators. The IBA also produced three successive postcards for its members who were asked to sign and forward them to their elected officials. The head of the IBA’s anti-credit union task force even held a rally for the cause at the state capitol where 400 bankers turned out.

Meanwhile, James Forney, superintendent of credit unions for Iowa’s Department of Commerce, was evaluating UICCU’s bid for Hawkeye State Bank. At first, he acknowledged that the deal was indeed possible, saying “there is a provision in Iowa law that allows credit unions to make an investment in banks.” But he surprised everyone by rejecting the deal even before the credit union ever submitted a formal application.

Forney’s main obstacle was the effect the acquisition would have on UICCU’s capital. Forney said UICCU proposed acquiring the bank in such a way that would have not permitted them to add the bank’s capital to their own, thus diluting the credit union’s capital to unacceptably risky levels.

Forney denied there was any political pressure to kill the UICCU/Hawkeye deal that had fueled the dispute. In any event, UICCU’s bid for the struggling bank was dead.

Credit Union Tax Bill Buried After UICCU’s Hawkeye Deal Killed

Forney’s decision was welcome relief for Iowa’s legislature, who weren’t keen to take on the issue of credit union taxation. Politicians have always been reluctant to tax credit unions because of their popularity with voters, and in the end, Iowa’s lawmakers proved to be no different.

By April 2003, the bill was dead, despite all the pressure from Iowa’s powerful banking lobby. The Republican-controlled Senate needed damage control. Backpedalling, they said they voluntarily abandoned the Republican-sponsored bill to tax credit unions because they were adverse to introducing any new taxes at that time.

Ultimately, the IBA admitted legislative support for its proposed bill waned after UICCU’s plans to buy Hawkeye State Bank fell through. Once the deal was off the table, so was the bill.

Nevertheless, the bill was a huge scare for Iowa’s credit unions, who were one vote away from being taxed. They had mounted a strong defense, bombarding legislators with 11,000 letters, 5,000 emails and a petition with 7,000 signatures in support of their cause. They held their own pro-credit union rally at the state’s capitol where more than 1,000 people attended.

It was an issue of such importance to credit unions that some observers speculated whether operatives from CU industry groups had applied pressure to either Iowa’s credit union division or UICCU to get the Hawkeye deal killed. Credit unions were facing intense legislative heat — fueled entirely by the UICCU/Hawkeye fire — and perhaps the other big credit unions targeted in the Iowa bill didn’t think they should have to pay for UICCU’s decision. Everyone was pointing fingers.

Regardless of how the politics played out, credit unions in Iowa no longer faced the threat of taxation, and could once again breathe easy.

Iowa Bankers Stew

UICCU never disclosed how much was offered for Hawkeye, even after the bank sold to West Bank in Des Moines for an estimated $35 million. Tom Bengston, a reporter with the Northwestern Financial Review, noted that the credit union must have had a lot of money lying around if it had millions and millions to buy a bank with.

“Regarding business lending by large credit unions, let me put this in perspective: We have to stop them now.”
– Jeff Plagge,
Iowa Bankers Assoc.

Stung but undaunted, the IBA wasn’t about to give up. In 2004, about a year after the UICCU/Hawkeye debacle, Jeff Plagge, IBA chairman said, “Regarding business lending by large credit unions, let me put this in perspective: We have to stop them now, or we will look back in a few years and wonder where all our commercial and business loans went.”

The IBA’s vice president of communications, Ben Hildebrandt echoed that sentiment. “We’ve been fighting for 10 years and we’ll be back.”

“It’s not over till it’s over,” John Sorenson, the IBA’s president, added ominously.

Bankers’ New Name for Revenge

Bankers remained bitter about their defeat. Commenting on the Iowa’s financial climate in the months following the credit union’s unsuccessful bank buyout, Tom Bengston observed that “the mistrust between the bankers and the credit union industry in Iowa was palpable.”

Ever persistent, bankers were determined to make UICCU pay for its shot at Hawkeye, and for encroaching on its historical turf — commercial lending. But how could they strike back? Perhaps there was some way they could exploit the millions of dollars they donated to the university? Besides, what did UICCU do for the school but provide financial services to staff, students and alumni? Many observers have speculated that it was this imbalance of leverage that enabled bankers to dragoon the university into taking some sort of action.

“Leadership at the university made it clear that they would feel more comfortable if the credit union and the university had their own separate brands and identities.”
– UICCU, 2006
in the Daily Iowan

The framework for the new battle plan was in place. Bankers could argue that it wasn’t fair competing for commercial loans with a credit union that brandished the University of Iowa’s good name. After all, wasn’t the state showing favoritism to an untaxed credit union by lending the University of Iowa brand as a defacto endorsement? What local businesses wouldn’t prefer to secure their banking relationships and commercial loans with a financial institution bearing their alma mater’s name?

The squeeze play must have paid off, because at some point between late 2004 and early 2005, conversations between the university and UICCU about a name change began.

Initially, there was some confusion about who initiated the dialogue. At first, the school said it was the credit union’s idea. UICCU confirmed that version of the story… for awhile. A few short months later, the credit union would be singing an entirely different tune.

Members Approve New ‘Optiva’ Name

In mid 2006, when UICCU first publicly announced a decision to change names had been reached, the official explanation raised more questions than it answered. In the Daily Iowan, UICCU said it “had dialogue with several individuals” from within the University of Iowa, and “leadership at the University made it clear that they would feel more comfortable if the credit union and the University had their own separate brands and identities.”

Wait… Did the university ask for a name change? Is that what UICCU was ever-so-gingerly implying? No one seemed to notice, or care.

On October 4, 2006, UICCU’s membership — unaware of any political pressure or backroom dealings — narrowly approved changing the credit union’s name to Optiva by a margin of 198-192.

The next day, the credit union dutifully began preparations for the transition to Optiva. They started ordering new signs, brochures, posters, staff apparel and other items to the tune of over $100,000.

In the middle of all this, the credit union’s contract with the university had come up for renewal. Fears over what might happen to the credit union’s on-campus branches and ATMs if the name change failed had undoubtedly compounded pressure on UICCU leaders to keep the university happy.

But the name change to Optiva had been successful — at least for the time being — and University of Iowa officials must have felt satisfied the conflict between bankers and the credit union had finally been put to rest. The university inked a fresh five-year contract with the credit union, along with a two-year option on top of that, and both parties were content to move on.

Unfortunately, it was too soon for celebrations.

Angry Dissenters Protest ‘Optiva’

In the fall of 2006, a handful of members unhappy with the new Optiva name started tossing about accusations of vote rigging and fraud, suggesting UICCU’s management had stuffed the ballots in favor of the name change. Their grievances eventually wove their way to James Forney, Iowa’s Superintendent of Credit Unions who just three years prior had quashed UICCU’s bid to buy a bank. This time, Forney was on the credit union’s side. He shot protestors down, certifying the vote and ruling that the credit union could carry out its plans to become “Optiva Credit Union.”

Optiva’s opponents, furious over Forney’s decision, circulated a petition to force a revote. According to the credit union’s bylaws, a petition would need signatures from 2% of the membership — or about about 900 of the credit union’s 45,000 members — to be successful. Optiva’s opponents wound up only mustering 157.

Despite being 743 signatures shy of the requirement, the petitioners submitted their request to UICCU on February 8, 2007. Everyone headed back to Forney’s office for another ruling. The credit union thought its case was a slam dunk, but the Superintendent of Credit Unions saw it differently. For some unknown reason, Forney ruled the petition was valid and compelled the credit union to revisit the issue.

Rather than challenge Forney’s decision in court, UICCU’s Board of Directors agreed to hold a second vote on the Optiva name.

Duck and Cover

Smelling the magnitude of controversy starting to brew, the University of Iowa distanced itself as far as it could from the credit union’s name change. In the Daily Iowan, Marcus Mills, the university’s General Counsel, said the university “in no way forced the name change.” Steve Parrott, the Director of Relations for the University of Iowa, said it was credit union officials who came to them about the name change, to which the University responded, “That’s fine. That’s your decision to make, not ours.”

When pressed on the issue, UICCU officials admitted the University of Iowa had expressed its preference that “the two organizations had separate identities.”

“The university is still interested in having us change our name. Someday, we’ll have to fry this fish.”
– UICCU, 2007

But the credit union’s hands were tied. It was a Catch 22. They couldn’t — or wouldn’t — publicly point fingers back at the university. So when members asked why a name change was necessary, all UICCU could talk about were the “opportunities for growth” made possible by eliminating “the confusion that only University of Iowa employees could join the credit union.”

On February 26, 2007, two days before second vote on the new name, the university sent a letter to UICCU telling the credit union that the university would likely insist the credit union drop “University of Iowa” from its name sometime in the near future if members rejected the Optiva name. The letter went on to say the university would have to take control of UICCU’s marketing and business banking services if members elected to retain “University of Iowa” in the name. The letter was signed by Marcus Mills, the University of Iowa’s General Counsel, who just days earlier denied the school had forced UICCU to change names.

Two days later, when the credit union held its second member vote on February 28, UICCU’s leadership read the university’s letter aloud to everyone who attended. But it was too little, too late. Members were not persuaded, and this time they voted the name down, 806-631.

Regarding the university’s letter, the credit union would later say it was “not a demand, but you will have to draw your own conclusions.”

Fallout and Aftermath

Hundreds of thousands of dollars down the toilet. Accusations made and reputations drug through the mud in the local press. Bankers surely rejoiced at their handiwork. Indeed, they probably had no idea that the plans they first hatched back in 2003 would lead to such a painful embarrassment for their victim. “Operation Optiva,” as you could call it, had exceeded bankers’ wildest expectations.

Within a month after rejecting Optiva in the second vote, an embittered faction of members took their frustrations out on UICCU’s board. Thinking that the credit union’s board must have lost its mind to approve a name change, the group moved to oust three directors specifically over the Optiva scandal. However, the attempt failed.

In the days and weeks that followed, stories began to trickle out linking the University of Iowa to the name change. At one point, the university insisted there were no future plans to force UICCU to come up with yet another name. But in an apparent contradiction, the university has also admitted it “may want to revisit” the issue of UICCU’s name, particularly in light of its market expansion into commercial services. University officials have remained cagey about the school’s role, but they swear any theories about coercion from alumni bankers are little more than “rumors.”

“If we go down this road again, we’ll take a different approach and make sure that all parties are on board with the initiative.”
— UICCU, 2007

So after being forced to blow a whopping $435,000 on its first attempted name change back in 2006, will UICCU be asked to repeat the process again?

“The university is still interested in having us change our name,” the credit union said back in 2007. “Someday, we’ll have to fry this fish.”

The credit union acknowledged the subject of rebranding was brought up by university officials again a couple of years ago but was not advanced.

“We find ourselves in some regards caught in the middle,” the credit union said, “between what may be the preferences of the university and what may be the preferences of the membership.”

“But if we go down this road again,” said a spokesperson with UICCU, “We’ll take a different approach and make sure that all parties are on board with the initiative.”

The five-year contract between UICCU and the university for on-campus banking services expired nearly five years to the day after members had first approved the name change to Optiva. But no sooner than the contract ran out, UICCU was booted off the University of Iowa campus — forget about that two-year option. And then who took UICCU’s place? Who will now provide banking services, branches and ATMs on the University of Iowa campus? Yep, you guessed it: a bank. They got a sweetheart deal worth about half the rent and royalties that UICCU gave the university.

As for the on-campus branches and ATMs UICCU lost to one of its competitors, the credit union said the new bank can have them. They weren’t really profitable anyway.

For all its trials and tribulations, the credit union may be getting the last laugh. In 2003, UICCU had $300 million in assets. At the time of the Optiva name change kerfuffle in late 2006 and 2007, the credit union had swelled to $575 million in assets. Five years later, they had grown to exceed $1.4 billion. And throughout all this, the credit union has consistently ranked among the highest in the industry for return-to-members. In the end, UICCU may have lost a battle (or two), but based on their performance, it sure seems like they’re winning the war.

[Editor's Note: This article is an opinion piece based on the observations of these events as they were conveyed in news articles and public records. Over 100 different sources were used, and a list with many of those references can be found here.]

This article © 2012 by The Financial Brand and may not be reproduced.

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Back in August, Yakima Valley Credit Union and Catholic Credit Union got the green light on their merger. Now the two Washington-based credit unions  have agreed to jointly abandon their existing names in favor of a completely new brand: Solarity Credit Union.

“Solarity is a name that represents energy; the liveliness of our people and the vigor that we put into the communities that we serve,” says Mina Worthington, President/CEO of merged credit union.

According to a statement released by Solarity’s two parents, the name’s inspiration derives from “the energy of our people, the abundance of our land, and the opportunities that are all around us.”

“The name reflects our commitment to engage, enlighten and empower,” they continue to explain. “Three words that radiate through all that we do — and all that we are.”

The new catchphrase for the brand — “Engage. Enlighten. Empower.” — uses a common convention among sloganeers known as “the three-word tagline,” with a little alliteration thrown in for good measure. About the new tagline, Solarity says “we are committed to nurturing people’s dreams and engaging them in achieving their financial aspirations, enlightening them to limitless possibilities, and empowering them to reach life’s most important goals.”

A spokesperson with Yakima Valley Credit Union said that they have only heard from a handful of members concerned about the name change. According to the spokesperson, the overwhelming reaction among members has been neutral- to positive so far.

Both credit unions had limiting names prior to the merger. Solarity is open to residents across the state of Washington. Generally speaking, credit unions don’t like to hamper a broad community charter with a name that only speaks to Catholics and/or the residents of Yakima Valley. There’s no reason to retain such demographically and geographically restrictive names when you can serve a population of 6.6 million people. A name change was likely in store for either credit union (or both) even if their merger didn’t go through.

The decision to go with a new name is smart for these two credit unions. If they retained the name from one credit unions, members from the other would feel like they were taken over, resulting in some ill will against the brand right out of the gate. It’s better to start fresh, which is what Yakima Valley + Catholic chose to do. There’s no baggage. It’s a clean slate.

SOLARITY CREDIT UNION – BRAND VIDEO
A two-minute video used to explain the new name and brand to members.

(Script) Each new day, it’s an opportunity… to tap new energy …to grow …to expand our horizons and to reach our full potential. Today, we’re doing just that. Building on a long history of collaboration and partnership and teamwork, Yakima Valley Credit Union and Catholic Credit Union are joining forces to create an even stronger institution. Recognizing that we’re better together. We’re creating a single organization that will have the ability to empower an even greater community of members to realize what’s possible. To celebrate, we’ve created a new identity and a new name… one that is inspired by the best of both credit unions, positioning us for the future …a name that reflects our mission to enrich the lives of the people in the communities we serve. Yakima Valley Credit Union and Catholic Credit Union are becoming Solarity Credit Union. Solarity is a name that reflects our commitment to engage, enlighten and empower — three words that radiate through all that we do and all that we are. It’s about our ability to nurture people’s dreams and our desire to engage them in sharing their financial aspirations… enlighten them to limitless possibilities …and empower them to reach life’s most important goals. Together, we shine brighter, and illuminate a path for our members to thrive. We are Solarity Credit Union.

The new Solarity name isn’t a real word (it’s coined), although others have been using it. Presently there are over 400,000 search results for “solarity,” with top results including a popular band in the UK and a consulting company based in Kentucky.

Solarity Credit Union filed for a federal trademark with the USPTO on June 6, 2011. There are already two existing registered trademarks for “Solarity,” one owned by SPX a manufacturer of car diagnostic equipment, and another owned by a company making medical document solutions. There is a pending applications for Solarity photovoltaic cells. On the surface, it would appear that none of these companies will present any problems for the credit union in its pursuit of federal trademark protection.

The two credit unions introduced their new name to members in a letter sent September 9. The Solarity name and logo will be officially launched on October 1, when a new website and signage will be rolled out. More materials bearing the new brand will be introduced in the months that follow.

Yakima Valley Credit Union has more than $287 million in assets, five branches and 30,380 members. Catholic Credit Union has over $185 million in assets, three branches and 18,000 members. Together, they will have a total of $472 million in assets, eight branches and nearly 50,000 members.

Prior to the merger, Catholic ranked 885th out of 7,443 credit unions according to asset size, while Yakima Valley was 646th. The combined entity climbs to #400 on the list, and is in the top 5% when ranked by size of membership.

The two credit unions partnered with the financial branding and naming experts at Weber Marketing Group for the development of the new Solarity name. Weber Marketing has worked on over 40 credit union name changes, developing many of the industry’s more interesting — and controversial — choices, including Red Canoe, Copperfin, Optiva and Veristate.

This article © 2012 by The Financial Brand and may not be reproduced.

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Old Name: Australia Central Credit Union + Savings & Loan Credit Union
New Name: People’s Choice Credit Union

Rationale: Two Australian credit unions merged back in 2009 to create a goliath, the country’s second largest CU with 350,000 members and $7.4 billion in assets. They said that a new entity deserved a new name. They also told members that a name change was necessary in order to appeal to a younger audience and attract the next generation of members.

Analysis: When two organizations of similar size merge, they will frequently agree to pick a new name. This way, constituencies at both organizations — management, employees and customers — don’t feel like one isn’t taking over the other.

As part of the name change process, the credit union conducted market research to test three names: Everyone’s Credit Union, All People’s Credit Union and People’s Choice Credit Union. Not much range in those options. (Note: There are a few People’s Choice credit unions in the US.) Early in the process, the credit union invited members to submit their name suggestions. They received over 1,000 names.

The credit union needed member approval to change names. 63% voted in favor of People’s Choice, 20% voted against.

The new identity wrapping the People’s Choice brand is fresh, contemporary and approachable. Very nice work.

Spanish out, English in to attract non-Hispanics

Old Name: Banco Popular
New Name: Popular Community Bank

Rationale: The Puerto Rican banking giant found that when they tried to break in to US markets, it discovered that consumers struggled with the Spanish name. The feedback they got was, “I think you are going after the Hispanic market, and I’m not Hispanic so this bank isn’t for me.”

Analysis: The transition from “Banco Popular” to “Popular Community Bank” is one that is linguistically, visually and strategically logical. You’ve got to wonder why they didn’t do this years ago, perhaps back in the 60s or 70s when the bank opened its first US location. Now let’s see when they’ll do something about that ridiculous logo.

The bank says they didn’t lose any Hispanic customers through the name change. They also say that accounts opened by new Hispanic customers have been, on average, 10% larger than with the old name. Balances jumped 25% for non-Hispanic new customers.

French for ‘money,’ Latin for ‘silver’

Old Name: DuPont Fibers FCU
New Name: Argent Credit Union

Rationale: The credit union says a name change was necessary to “better reflect our overall membership which has evolved over many years.”

“A name maintaining affinity to DuPont was desired,” the credit union explained. “Since the DuPont name is French, ‘argent’ — a French word that means ‘money’ — was a natural connection.”

“Also, in Latin, ‘argent’ means ‘silver’ or ‘coins,’” they added.

Analysis: The credit union has a community charter for the Greater Richmond, Virginia area, so it makes sense to dump “Dupont Fibers” if they want to attract a broader audience. The old name was too restrictive.

The Argent name is a sound choice for a financial institution. It’s short and conveys strength, making this credit union of only 21,000 members and $200 million in assets sound bigger than it is.

And while the word “argent” may have a financial connotation in French, it doesn’t really make a connection back to DuPont.

DUPONT FIBERS FCU – ARGENT NAME CHANGE VIDEO
After taking a four-minute tour of the credit union’s history,
the video announces the new name at the very end.

The Maine issue is purely semantics

Old Name: Savings Bank of Maine
New Name: The Bank of Maine

Rationale: CEO and Chairman John Everets told the Bangor Daily News the name change will better emphasize the bank’s local roots as compared to large national banks.

Analysis: Huh? How does swapping the word “The” in for “Savings” emphasize this bank’s “local roots?”

Talmage + Merzon = Talmer

Old Name: First Michigan Bank
New Name: Talmer Bank & Trust

Rationale: As the bank expanded into other states (such as nearby Wisconsin), they felt the Michigan name wouldn’t be well received.

The new Talmer moniker is a coined derivation of the names of the grandfathers of the bank’s founders: Mr. Talmage and Mr. Merzon.

Analysis: The story behind the name is strange. We’re not talking about the founder’s last names. We’re talking about their grandfathers. And apparently the founders’ grandfathers never met — one was a missionary in Asia, the other a prominent lawyer for the underprivileged — and had nothing to do with the bank’s history. As obscure and random as the explanation may be, at least it does give the bank a story behind the name it can tell. It’s fuel for a conservative, legacy-based brand image, but is it too “old” and stodgy?

FIRST MICHIGAN BANK – WHAT’S IN A NAME
A four-minute video explaining the new name and reasons behind the change.

Credit union, knight thyself

Old Name: Superior Iron Range FCU
New Name: SIR Federal Credit Union

Rationale: The credit union said it wanted to simplify and shorten their name to “make it easier for members and vendors.” They said most people already abbreviate the name anyway.

Analysis: Is this a name change? Not really. Switching your name to its acronym is so easy, it’s almost a cop-out. The acronym is pronounced “sir,” making it something they could have a lot of fun with in their marketing. Good thing it isn’t pronounced “S-I-R” (ess eye are), then it would be just another jumble of meaningless initials.

‘Orion’ shines at teachers credit union

Old Name: Memphis Area Teachers’ Credit Union
New Name: Orion Federal Credit Union

Rationale: The credit union dropped “teachers” from the new name because even though educators make up a large part of its membership, many Memphis residents meet the eligibility requirements to join.

The credit union said the Orion name was selected to serve as “a metaphor for an entity comprised of many individual parts combining into a more exciting whole.”

Analysis: Surprisingly there isn’t another “Orion” bank out there already. It seems that a name like this would have been taken, but apparently not.

Mustering the mettle to pick Alloya

Old Name: Members United Corporate FCU
New Name: Alloya Corporate FCU

Rationale: The old corporate colossus failed, and from its ashes a new brand was born.

Analysis: When an organization implodes, it’s usually a smart idea to change names and start anew, as in this case. According to the credit union, the Alloya name was coined from words like “alloy,” “all,” “ally” and “loyal.” The root word “alloy,” which is typically defined as a blend of two metals, touches on themes of cooperation, strength, unity and togetherness. The credit union said it wanted a name that would be distinctive, memorable, timeless, have energy, look good and sound good. That’s a pretty long list of criteria, but the new name arguably accomplishes all of them to some degree. However, the decision to go with Alloya probably didn’t sit too well with the folks over at Alloy FCU.

 

This article © 2012 by The Financial Brand and may not be reproduced.

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The old name ‘just didn’t suit us anymore’

South Interlake Credit Union’s growth strategy hinged on building branches throughout the Manitoba province where it was based. At the time of the name change, half of the credit union’s branches were already located outside the South Interlake area. The credit union said past member research and feedback from staff verified their conclusion: the South Interlake name no longer represented who the organization was.

This wasn’t the first time the credit union changed names. It started as The Stonewall Credit Union Society in 1955, then became South Interlake in 1968 following a merger with Teulon Credit Union.

The Sunova name was created from the words “sun” and “nova,” reflecting how the credit union sees itself today: a vibrant, innovative and friendly financial institution.

“We feel the name change really represents who we are,” Sunova marketing manager Vanessa Foster said in an interview in the Lac du Bonnet Leader. “‘Sun’ identifies the warmth of friendly staff while ‘Nova’ represents the company’s rebirth.”

“We wanted it to be short and sweet but we also felt the name should mean more than a combination of letters,” Foster explained.

“The circular symbol in our logo reflects a number of different interpretations of our name — sun, constant movement and star,” Foster said. “Feelings of warmth, friendliness, innovation and endless opportunities all come to mind.”

“Sun” and “nova” — words evoking beaches and warm weather — may seem like a strange choice for a credit union in Canada, but Sunova wanted a name that captured its brand personality and not its geography. Chevy’s Nova is notoriously celebrated as a major renaming faux pas after rumors spread that “nova” meant “no go” in Spanish. This modern myth has survived through the years, even though it isn’t true.

Takoda, the D.O.G.

Meet Takoda. She’s Sunova’s official “Director of Greetings” (D.O.G). The Saint Bernard, has held the extremely unique position as four-legged greeter since 2006. She is a fulltime “employee” at one of the credit union’s branches, with responsibilities that include greeting members, sleeping, playing with kids, sleeping and occasionally providing some moments of comic relief.

“We have to admit, she does spend a fair bit of time sleeping on the job!” the credit union says.

Takoda, which means “friend for all” in Sioux, joined the team as part of a marketing effort to draw attention to the credit union. “We’re always looking for ways to be different here,” Foster told the Credit Union Journal in an interview. “We thought that having a dog in here would be unique.”

“We didn’t want a dog that you typically see on the street,” Foster said. “We wanted a larger dog that’s friendly, outgoing and good with strangers and children.”

“We have many people who come in regularly just to see the dog,” Sunova CEO Edward Bergen told the Winnipeg Free Press.

Bergen said the credit union is considering adding greeter dogs at future branch locations.

Bright ideas, vibrant future

Sunova currently has 23,000 members, 10 branches and upwards of $600 million in assets. But the credit union has big plans, starting with an expansion strategy that involves doubling the credit union’s branch network by 2020.

“We plan to build one branch every year in Winnipeg for the next 10 years,” Bergen said.

The credit union just announced it’s building its first branch in Winnipeg, with another nine more on the way.

Sunova has recently started deploying “pod” style banking, where people are greeted by an associate when they walk through the door, then taken to a teller pod to conduct transactions.

Extreme Makeover: Banking Edition

Sunova says it developed its “unique, new brand identity to better reflect who we are and what we’re all about.”

“It is simply an approach to make our organization a little brighter with a different name and fresh new look,” the credit union said.

SUNOVA SHOP
The credit union partnered with Clear eTail to create an online e-Store. The shop is exclusively for members, so only they know what schwag, garb and other goodies lurk within.

You can download a PDF of this name change brochure for Sunova.

This article © 2012 by The Financial Brand and may not be reproduced.

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During the 2010 Super Bowl pregame show, The Credit Union of Johnson County ran an ad announcing its new name — Mainstreet. The new moniker is meant to align the credit union with the sensible Midwest values of folks living around Kansas City, where the credit union is based, while distancing itself from the widely-reviled greed of Wall Street. The Financial Brand talked with John Mathes (pictured left), Director of Brand Services at Bancography, about the firm’s name and brand work for Mainstreet.

Financial Brand: Why change names?
John Mathes: Primarily because the credit union is growing outside of its original geographic trade area. The credit union recently merged three others into its operations — two in Kansas and one in Missouri. With its reach extending beyond Johnson County, John Beverlin, the CEO, felt it was time to change the name.

Secondarily, the original name was burdened by sounding as if you had to be a county employee to belong. The original charter was for the Johnson County Teachers Association.

FB: Why ‘Mainstreet?’
JM: It doesn’t get any more “Main Street” than suburban Kansas City. The members and associates (staff) all embody the tenets of the new brand as we’ve crafted it.

The huge coup here is the on-going, numerous references to “Main Street” vs. “Wall Street” in the media. Every time they mention it, it is a mention for Mainstreet Credit Union.

Never has a new name been launched with so much “pre-awareness” already established for the “big idea” behind the brand. The whole Move your Money grassroots effort, and the flight to safety from Wall Street, plays right into the essence of the new brand.

FB: How is the brand being positioned?
JM: “We live where you live.”

MAINSTREET CREDIT UNION – POSITIONING STATEMENT

FB: Is there a new slogan or tagline?
JM: We haven’t settled on a on-going slogan…and may not have one. The main copy point for the brand launch is: “You’re not Wall Street. Neither are we.”

FB: Was research used as part of this process?
JM: Yes, in a couple of steps. First, Bancography established benchmark awareness and attribute rankings, as well as a market share and competitive analysis. The development of the brand positioning and name alternatives were a result of the Bancography Brand Map process. Communication audits were also performed with the credit union’s primary competitors.

As the process wound down and we got closer to the name selection, qualitative focus groups coupled with quantitative verification (telephone intercepts) were conducted with both members and non-members in the trading areas. The credit union’s associates also participated in separate focus groups.

FB: How did the credit union approach the name rollout?
JM: The name and brand was launched internally first back in mid-November. Great care was taken to be sure that every associate understood the process, the rationale and the reason for the change. Outside sales training consultants are assisting with the transition.

Member awareness was the second phase. The credit union took great care to explain the rationale behind the change and to reassure members that it was not being taken over.

You’ll notice the advertising elements do not mention the old name. This was careful thought-out strategy, so as to not burden ads with any explanation. The idea was that if someone was not currently a member, it would be for one of two reasons: they had already dismissed the Credit Union of Johnson County (for any number of reasons), or they simply weren’t aware of it. So there was absolutely no benefit to making the connection.

MAINSTREET CREDIT UNION – BRAND LAUNCH
A 30-second TV spot used in the 2010 Super Bowl pregame show to announce
the Credit Union of Johnson County’s name change to ‘Mainstreet.’

FB: How long did the whole process take?
JM: The original market survey for benchmarks and the kick-off “ideation session” for the Brand Map process took place in November 2008.

FB: What’s the timeline for rolling the brand out?
JM: The credit union will implement its new brand over several months, changing out signage, print materials and advertising.

FB: What size is the credit union?
JM: The credit union has $240 million in assets, over 52,000 members, eight branches and two satellite locations in the Kansas City area.

Credits: Bancography (research, branding, naming, logo), The AMP Group (advertising), Margaret J. Blankers Public Relations Group (public relations), and Graphic Edge KC (graphic design).

[Editor’s Note: The Credit Union of Johnson County has applied for a trademark with the U.S. Patent & Trademark Office. There is already a federally registered trademark for “Mainstreet Financial” for a financial planning firm. There is also another credit union named Main Street Financial FCU in Louisiana (formerly LA DOTD FCU). Domestic Bank in Rhode Island has held a USPTO federal trademark for the phrase “We’re Main Street, Not Wall Street,” since 1998. The bank still uses the slogan on its website today.]

This article © 2012 by The Financial Brand and may not be reproduced.

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The credit union set its logo ablaze at a special event for members and staff where the name was unveiled. (Photo credit: Rick Cruz/Pacific Daily News).

Like many credit unions that expand with a community charter, Government of Guam Employees Federal Credit Union found that its original name no longer represented the organization’s field of membership, which includes anyone who lives on the island. At 43 letters and 15 syllables, it was a real mouthful. After changing names to GGEFCU, the credit union realized that the acronym strategy didn’t work any better for them than the dozens of others who try it every year.

The credit union wanted something new, something fresh and different, so it partnered with the financial naming experts at Weber Marketing Group to develop a name that was “more inclusive and welcoming.”

“After reviewing over 70 possibilities, GGEFCU chose the name Coast360,” the agency said. “Coast360 reflects the island they serve and the inclusiveness they espouse. Coast360 is about unity and working together to help people thrive.”

“This is not an easy thing to do. It’s hard to change a name that you’ve been calling yourself for the past 45 years,” credit union president John Arroyo told Guam’s KUAM. “This credit union has embarked on a new journey. We’ve been reborn. We’ve come full circle.”

Joseph Aguon, one of the credit union’s founding members, said it doesn’t matter to him what the name is “It is the people behind it,” he told the Pacific Daily News.

“Now, we don’t allow just a few people, but the whole island. That’s why we changed it to Coast 360, so that we can accept all the people of Guam,” Aguon said. “I am very happy that I can witness the growth of the institution.”

This is the first name change The Financial Brand has seen in years where there is almost no complaints or outrage over the new moniker to be found anywhere online. None of the news stories about the name change contain the vitriolic comments frequently seen whenever credit unions change names.

30-SECOND TV SPOT

NEW WEBSITE DESIGN

MARKETING COLLATERAL

This article © 2012 by The Financial Brand and may not be reproduced.

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Some of these name changes may be due to mergers, but most frequently, credit unions change names for one of these three reasons:

1. The credit union’s primary sponsor has disappeared, or dwindled to such a point that it can no longer sustain membership.
2. The credit union feels its name is geographically limiting and/or exclusive to certain types of people (e.g., teachers).
3. The credit union can no longer use another organization’s brand name. This is typically triggered by a request from the primary sponsor’s lawyers, but sometimes by another financial institution asserting trademark rights.

From this year’s new names:

• 11 credit unions included the word “Community”: Arlington Community, Champion Community, Community, Community Driven, Memberfocus Commmunity, My Community, NMTW Community, Prestige Community, Total Community, Valley One Community and Vue Community.
• 7 reduced their names to acronyms: CEFCU, CSE, MaPS, MCT, ME/CU, NMTW and USE.
• 7 are coined names: Altana, Aventa, Cinfed, Genisys, Meritrust, TruStone and Vue Community.
• 3 use the number “one”: Alabama One, Metro 1 and Valley One Community.
• 3 credit unions ditched the word “First” in their name, while one put it in: University First.
• 2 credit unions used alphanumeric constructions: Med5 and Metro 1.

It might be time to update The Financial Brand’s list of The Top 50 Most Distinctive Credit Union Names. Which ones do you think belong in the list?

Further Reading: Anyone in the financial marketing arena should know “How to Look Up a Financial Trademark in 10 Easy Steps.” And here are some of other stories about credit union name changes as reported here at The Financial Brand:

• The do’s and don’ts of CU acronyms
• The ‘Community Credit Union’ fallacy
• The most common words in credit union names
• What does ‘Federal’ do for FCUs?
• From “America’s who?” to “ACU who?”
• Advanta forces Avanta to become ‘Altana’
• Credit union picks ‘Wildfire’ as new name
• Two credit unions merge to create ‘Genisys’
• Credit union completes transformation to ‘Centric’
• Credit union picks ‘Aventa’ as new moniker

Also, please contact The Financial Brand for your copy of “The Credit Union Guide to The Name Change Decision,” a comprehensive, 33-page analysis of the strategic renaming issues that apply to any financial institution considering a name change.

This article © 2012 by The Financial Brand and may not be reproduced.

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“With any name change, there’s kind of a shock to it.”
– Timothy Benecke
President and CEO
Wildfire Credit Union

“In the last few years, we have found that the Communications Family Credit Union’s name has created some confusion as to who can join,” Timothy Benecke, President and CEO/Wildfire, wrote in a letter to members. “Even though we are a community charter, our name has given the perception that our membership is still exclusive to the communications industry.”

With its recent community charter, anyone in seven counties can join the credit union.

“We wanted something that was short, memorable and distinctive,” Benecke told the Saginaw News.

Old Logo/New Logo

“Conventional credit union names follow a ‘who’+'where’ pattern, a formula that describes the geographic market and industry served,” noted Karen McGaughey, VP Client Services/Weber Marketing Group, the agency who served as the credit union’s renaming parter.

“Many credit unions find these names limiting names and outgrow them, which was true for the old Communications Family name.”

“The name Wildfire is a distinctive name that busts financial naming conventions that many financial institutions follow,” McGaughey added.

“This decision emerged from many months of research and evaluation under the leadership of our Board of Directors and executive team,” Benecke said. “Through this process, we have conducted research with credit union members, community members and credit union staff.”

In his letter, CEO Benecke reassured members that the credit union was well-capitalized, and that the name change had nothing to do with a merger.

People’s reactions to the Wildfire name span a very predictable range of human psychology, seen in almost every renaming situation — not just in the financial industry. The Saginaw News online article about the Wildfire name change has received some 50 comments since Monday. Some of the more provocative observations include:

• You bring in a national advertising firm and this is what they give you?
• I like the name…stands out and different from the rest!!
• Was the name ‘Earthquake Credit Union’ already used?
• Sounds like a steak house.
• I wonder if the marketing firm did a focus group?
• They probably paid this marketing firm $20,000 or more to come up with the name. But lets not blame them, since they offered 40 choices. That [Wildfire] couldn’t have been the best (or worst) one.
• I think the name is different, fresh.
• I will be in tomorrow to close my account.
• You are ashamed to belong to a credit union because of a name?
• Lighten up punkins, there are other things to get more worked up about…

“Everyone’s a critic,” said Mark Weber, CEO/Weber Marketing Group. “It’s the same thing as saying names like Verizon, Kinkos and Wii are stupid.”

Reality Checks:

• There is no new name that will please everyone.
• Anyone can make fun of any name.
• New names aren’t picked to resonate with historical target audiences. They are picked to appeal to future generations, looking 10-20+ years out.
• People are comfortable with what they know, and they generally hate change — it scares them.
• Name changes are subjected to a level of scrutiny and ridicule that startup organizations never endure.

What if a place like BooksOnline.com tried to become Amazon.com? What if the Java Stop tried to become Starbucks? People would scream and spew all sorts of nastiness. They would draw biased comparisons between the old- and new names, dwelling on the “obvious superiority” of the original. Then, like kids in a school yard, they’d make fun with jests and jabs: “Ewww look, it’s Icky Vicky.”

When Weyerhaeuser Employees Credit Union became Red Canoe back in 2006, the first story the local paper ran on the name change drew so many fiery comments — some 350 or more — that the paper ran a second story about the outpouring of comments the first story received. And then the second story got another 250 reader comments.

Red Canoe may have received “a boatload of ridicule.” But, Weber points out, the credit union “had is best growth year ever after strong initial weeks of media and blog attacks.”

Three years later, Red Canoe Credit Union is now an accepted- and well-respected fixture in the communities it serves.

Wildfire is a courageous choice, no doubt. Some may argue the name lacks relevancy, but at least it isn’t an acronym, nor does it try to squeeze in the word “Community.” It is unique, memorable and legally available in the financial industry.

And sometime soon, today’s fuss over the name will be forgotten.

Further Reading: Please contact The Financial Brand for your copy of “The Credit Union Guide to The Name Change Decision,” a comprehensive, 33-page analysis of the strategic renaming issues that apply to any financial institution considering a name change.

:30 TV Spot

Brochure Series

Print Ad Announcing Name Change

Branch Merchandising

This article © 2012 by The Financial Brand and may not be reproduced.

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“We asked if people had heard of us,” said the credit union’s marketing director, Heidi Marzolf, in an interview with the News Tribune. “The response was ‘America’s who?’”

So the credit union is changing names, and will now be known as “ACU.”

Reality Check: Sure, America’s Credit Union isn’t the most distinctive name in the credit union industry, and awareness of the name may be low in the marketplace, but changing to ACU doesn’t fix anything. It’s the same problem, the credit union just gave it a new name. Actually, this makes the problem worse. The credit union went from limited name awareness to zero name awareness. They are starting from scratch. And what about the 35,000 existing members who knew the credit union by its former name. What questions will they have?

The Financial Brand has previously noted the pitfalls of credit union acronyms, and ACU is no exception. Acronyms are stiff and corporate. They lack personality. They aren’t distinctive. And they are easily confused with all the other ACUs out there, which becomes a serious issue with search engines like Google. There’s ACU (Abilene Christian University), ACU (American Conservative Union), and ACU (Army Combat Uniform), to name a few. The last one presents the biggest problem, since the credit union’s membership is primarily Army personnel stationed at Fort Lewis. It might have been clever if the connection with Army Combat Uniforms was deliberate, but it isn’t.

NEW/OLD LOGOS

Heidi Marzolf, the credit union’s marketing director, said, “We wanted warm up our color palette and our logo and really have that reflect the credit union. The new logo is done in soft orange and burnt red, in a combination recalling perhaps an African sunset.” Notice the slightly cantilevered “c” in the new logo.

BONUS – TV SPOTS

The credit union will be introducing its new moniker in a series of TV spots starring various members of a woman’s roller derby team. Why? There are four spots: “Pain Goodall” (above), “Vicious Divalicious,” “Franky Bones,” and “Cookies.”

Key Takeaway: Having low name awareness does not mean you need a name change. It definitely means, however, that you need more marketing — specifically things like advertising and sponsorships.

The credit union said it wants a brand look-and-feel that is “technology-oriented, friendly, fast,” yet they choose colors from “an African sunset” for their logo, and produce TV spots with a retro-throwback from analog times — a roller derby team? Does any of this make sense? How does all this fit within a cohesive brand strategy?

Bottom Line: Going with America’s Credit Union probably seemed like a smart idea at the time, but they could have dodged a lot of problems had they picked a more distinctive name. Now the credit union is compounding its problem, and the costs in terms of money and lost time are immeasurable.

Note: There is another America’s Credit Union in Texas.

This article © 2012 by The Financial Brand and may not be reproduced.

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The erstwhile Laurel Federal Credit Union is being forced to spend more than $80,000 changing names — again — five years after becoming Avanta FCU. Last year, Advanta Bank in Utah, enforced its federally-registered trademark on the word “Advanta” by giving the Montana-based credit union one year to change names or face a lawsuit.

“We thought we’d done due diligence before, but the attorney said it is close enough and you won’t win,” said Tracy DuFresne, VP of HR and Marketing for the credit union, in an interview.

Advanta Bancorp has held a federal trademark on Advanta since 1987.

The shift to Altana becomes official on July 1. The credit union says the bulk of the $80,000 cost will be spent changing the signs inside- and out on its seven branch locations.

Key Question: What about lawyers’ fees? And five years after becoming Avanta, won’t everything need to be replaced — debit cards, credit cards, business cards, forms, brochures, website, merchandising, etc.? Doesn’t that sound more expensive than $80,000?

Indeed a name change is no small undertaking. “It’s massive. We have different people in different areas taking care of this,” credit union CEO Rhonda Diefenderfer told the Billings Gazette.

The credit union received permission from the state and the NCUA to switch from Laurel FCU to Avanta back in July 2004.

Reality Check: Just because the NCUA or your state’s financial division says it’s okay to use a name doesn’t mean you won’t get sued. Their evaluation of a name includes only a limited and superficial look at similarities with competitors.

Oddly, an AP article on the story mischaracterizes the situation as a “patent dispute.” Patents, while issued from the same federal agency as trademarks, protect processes and inventions, not brand assets. This is purely a trademark issue, and patent law doesn’t have any bearing on the case.

“My advice is to work with a professional patent attorney.”
– Rhonda Diefenderfer,
CEO/Altana

No fewer than five different stories on the snafu appeared in the mainstream media following the credit union’s announcement at its annual meeting last weekend. Despite all the coverage in the last week, there was no message, update or press release regarding the name change on the credit union’s website.

Avanta – V + L = Altana

Presumably, the credit union chose Altana because it was the name that was legally available that most resembled the Avanta name. The new name is what’s known as a neological- or “coined name,” and has no literal meaning.

“Out of more than 300 names, we gave 90 to the attorney,” said Rhonda Diefenderfer, president of the credit union. “Maybe four names survived in her formal search process.”

Key Questions:

• How will members react to a second name change in five years?
• Will people feel the board and management bungled the first go-around, or will they feel a big, bad bank from Utah needlessly picked on a small Montana credit union?
• What will members think of a coined name that (somewhat subjectively) looks like a misspelling of Atlanta?

The credit union has applied for a federal trademark for its new name.

There is another Altana, a chemicals and coatings company in Germany, but they don’t represent any threat to the Montana-based credit union.

altanacu.com and altanacu.org were both registered the 10th of June. They currently point to they credit union’s website at avantacu.org.

Altana FCU has over 22,000 members and around $200 million in assets.

Key Takeaway: It’s almost impossible to find a real word that isn’t already trademarked in the financial industry. Coined- and unconventional names are the safest path. Not only are you more likely to end up with a unique, differentiated name, you will likely dodge a mountain of legal nightmares. Unfortunately in the case of Avanta, the coined name they picked was too close to something that was already trademarked.

Bottom Line:

• This is the most expensive branding mistake financial institutions make. And they make it over and over and over and over and over and over.
• Learn how to look up trademarks at the USPTO. It’s easy.
• As Diefenderfer puts it, “My advice is to work with a professional attorney.” There is no substitute.

This article © 2012 by The Financial Brand and may not be reproduced.

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Colorado Springs Credit Union has changed names and become Aventa. The credit union Nearly 40% of the credit union’s membership no longer lives in Colorado Springs, so it was time for another new name, credit union officials said.

The board of directors wanted a name that would be “inclusive and welcoming to the people and communities up and down the front range,” said Sarah Ryals, CMO/Aventa, in an interview.

The Aventa name is coined (meaning it’s made up), but it’s meant to reflect the local Colorado Springs culture.

“We like the free-flowing and open nature of the word Aventa.”
– Sarah Ryals, CMO/Aventa

“We like the free-flowing and open nature of the word ‘Aventa,’” Ryals continued. “We can create the brand behind the name.”

The entire process — from the decision to change names to when signs were changed out — took two years.

Weber Marketing Group was brought in as naming partner for the project.

There is currently a federal trademark application on file for Aventa with the United States Patent & Trademark Office. There is no trademark currently pending under the USPTO’s financial services category for the credit union’s new slogan, “The Common Thread.”

Established in 1957 to serve utilities employees, Aventa Credit Union now has $125 million in assets and 17,000 members.

Aventa Credit Union Website
The credit union was able to pick up the URL aventa.com, which will aid them greatly
when it comes to marketing. The black banner says, “My tats are permanent and so is my
commitment to my community. I expect that from where I bank, too.”

In-Branch Brand Display
“The fabric of a community is woven from a common thread, not red tape.”

Product Displays
Online Banking: “The common thread has gone wireless.”
Savings: “The common thread means we all earn a little more.
Home Loans: “I love my house and my community, but I can do without the red tape.”

In-Branch Brand Display
“In financial times driven by taking care of number one, we’d like to propose taking care of one another.”

This article © 2012 by The Financial Brand and may not be reproduced.

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First National becomes ‘First American’

This banks says that changing its name to First American Bank provides distinction from the many other First National Banks in New Mexico and throughout the country. But what about the First American Bank in Chicago? And the one in Iowa? And Louisiana? And Oklahoma? And Georgia? It looks like this bank in New Mexico is at least the 6th First American.

People question Norwich Union’s adoption of ‘Aviva’

Aviva bought Norwich Union a while ago, and announced last year the Norwich name would disappear. Aviva wants to consolidate all its brands under one — a singular, global Aviva umbrella.

While all of this was planned and none of it comes as any surprise, some people are calling into question the wisdom of an $18 million ad campaign to build a global financial brand — especially in this economic climate.

As one advertising columnist writes, “The irony is that at the moment the last thing the public wants is a global financial institution. It wants something that is dull and worthy, like Norwich Union and not at all sleek.”

Even the regular people of Sheffield seem to recognize this. “Re-branding is a risky and expensive business,” one person comments. “Why would any bank think it’s a good idea when there’s an economic downturn? I wonder how long it will be before they’re in difficulty.”

Members defeat ‘Grand Crossing’ name for credit union

HealthCare Plus Federal Credit Union in South Dakota gave its members a vote about whether they should change names to Grand Crossing or not. Apparently the credit union didn’t do a good job convincing members, who voted the name down. The credit union used an online voting form at their website (enlarge the image, left). The credit union still has plans to expand beyond the health care industry, and has not ruled out another attempt at name change to support its strategy.

Valley First Community Bank becomes ‘Central Arizona Bank’

When you pick a very bank-like name, it’s sure to get lost in a sea of similar-looking competitors: Arizona Bank, Arizona Federal Bank, Arizona Business Bank, Arizona Bank & Trust, Central Arizona Bank, 1st Bank Of Arizona, 1st National Bank Of Arizona and First Interstate Bank of Arizona. (Look at that list again.)

Galleria Credit Union changes names (again)

It was once known as Sun Employees Credit Union Number One. Then Sun Credit Union. Then Oryx Credit Union. Then Galleria. It’s now calling itself Prestige Community Credit Union. They say this is their “final name change.”

This article © 2012 by The Financial Brand and may not be reproduced.

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Last week, the members of both credit unions voted overwhelmingly in support of the merger.

The new Copperfin website touts the merger’s benefits and explains the name change. The homepage takes a creative slant on the merger:

BETTER TOGETHER.
Starsky and Hutch. Peanut butter and jelly.
Lakewood and Kenora District.
Some things just work better together.

When you put two great things together, you get something even better.
It’s about synergy. It’s about community. Most of all, it’s about solutions.
That’s why Lakewood Credit Union and Kenora District Credit Union
have joined to become Copperfin Credit Union.

Copperfin’s new design style is both distinct and refreshing, representing a big visual upgrade in the two credit unions’ brand identities.

The new slogan is “Enjoy life’s possibilities.”

Copperfin falls under the same category of financial names as Red Canoe. These kinds of names are highly unique and creative, they are very trademarkable, and totally unforgettable. Both Copperfin and Red Canoe are the work of Weber Marketing Group, arguably the country’s leading financial naming firm.

Some people have complained that such names make no sense for a financial institution.

Key Question: Who says what a financial name should- or shouldn’t sound like?

Reality Check: There are no rules. If there are rules, they will be summarily ignored by breakthrough brand builders.

Before you rush to criticize a name like Copperfin, just remember: Many of the world’s most successful brands have names that — on the surface — make absolutely no sense at all: Old Navy, Starbucks, Gap, Apple, Virgin.

Key Insights: Name changes are subjected to a level of scrutiny that existing brands never endure. There’s something irresistable about comparing an old name to a new name. And generally speaking, people don’t like change.

This article © 2012 by The Financial Brand and may not be reproduced.

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METRO Credit Union becomes Extra Credit Union (May)
What was the reason for this name change? The credit union serves the educational community in Southeast Michigan. What was wrong with “Metro?” There isn’t much information out there on this name change. Making the tie back to the credit union’s educational roots, the name is actually “Extra Credit.”


Marion Schools Employees CU becomes Via (May)
The interesting thing here is that the credit union gave members a choice of two names and let them vote. The change takes the credit union’s name from 33 characters to three, and from 12 syllables to two.

Bank of Eureka Springs becomes Cornerstone (May)
The bank changes names so it can expand beyond its Eureka Springs roots. The only problem is that the Cornerstone name is pretty popular in the financial industry.

Tooele FCU becomes HeritageWest (June)
TFCU was originally formed in 1948 as Benicia Arsenal Federal Credit Union in Benicia, California. In 1962, the name changed to Tooele Army Depot Federal Credit Union. This latest name change reflects a consistent pattern of credit unions tied to military bases changing names, many due to base closures or “realignments” (i.e., “cuts”).

Jefferson County Teachers CU becomes eCO Credit Union (July)
Designed to remove perceived barriers the new name is derived from a blend of ‘Educators’ and ‘Community.’ That may be the credit union’s rationale, but with a name like “eCO,” they better be green, too.

The Education Credit Union becomes Athena (July)
This Ohio credit union picks the name of the Greek goddess of wisdom and warfare to support its new community charter.

Commerce Bank of Folsom becomes SierraVista (July)
Only a year after the bank was founded, it decides to expand beyond Folsom. The CEO also said the old name had too many syllables and too many consonants.

First State Bank becomes Legence (July)
The bank said the name change was made to accommodate future growth outside of Southern Illinois. When First State was founded more than 100 years ago, it was the only bank going by that name South Illinois. Now Googling “First State Bank” generates nearly 20 million hits. A good reason not to pick a safe, “financial-sounding” or geographic names in the first place.

Farm Bureau Credit Union becomes Interra (Aug)
American Farm Bureau Federation tells its largest credit union to change names.
Eventually, every well-established brand will ask their credit union(s) to change names (ala John Deere, Weyerhaeuser and others). If there’s any credit union out there with a name connected to a well-known brand, this is your wake-up call. Most people haven’t even heard of American Farm Bureau, so if they’re out to defend their brand…look out. How many big-brand, single-sponsor credit unions are left anyway?

Two First Federal banks merge
and become RiverWood (Aug)
Two banks in Minnesota with the same name merge and pick a new name. These two join other “First Federals” that have opted new monikers. Apparently, there are just way too many banks with that name.

DOT Federal Credit Union becomes Bridgeway (Sept)
The credit union gets a community charter and changes names. The new name makes a connection back to the credit union’s roots serving the Department of Transportation — a strategy that is usually well-received. Apparently, there are also three major bridges that connect the residents of the three counties the credit union now serves. 3Bridges (or Three Bridges) would have been a cool name too, but there’s nothing wrong with Bridgeway. It looks like a pretty clean trademark.

Conclusion & Analysis

Community charters continue to be the #1 reason credit unions change names, although changes with employee sponsor groups like military bases are another common reason. That’s why Fort Belvoir FCU dropped the word “Fort” from its name earlier this year. Back in 2002, Motorola was cutting jobs and scaling back operations, so its credit union had to change names and became TruWest.

Most credit unions were founded with Where+Who names like Jefferson School Employees, Marion School Employees and Orange County Teachers that clearly say which people in which community they serve. As credit unions expand their reach, they find that the names that once served them well are awkward and confusing. You can’t just tack the word “community” to your name. People will still think Acme Employees Community Credit Union is just for Acme employees.

The vast majority of bank name changes are the result of mergers. Either one bank absorbs the other, or, if the banks are similar in size, they may mashup their names like RBC Centura.

Geographical names make perfect sense and work well in the beginning. But both banks and credit unions alike find geographical names can be very challenging when the expand beyond their initial service area. This is the #2 reason after mergers that banks change names.

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• Name Change Review: Argent, Talmer, Orion, Alloya + 4 More
• Merged Credit Unions Roll Out New Brand As They Form ‘Solarity’
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The credit union’s board chose the name because the Servus brand was created only 18 months ago, is recognized in the Edmonton market and can be trademarked.

Earlier this year, three credit unions in Alberta (Servus, Common Wealth and Community Savings) announced they were merging to create the third largest in Canada, with $9 billion in assets, almost 400,000 members, 2,000 employees and 100 branch locations. The merger left two big questions unanswered:

1. What will the name of the credit union be?
2. What will happen to Young & Free, the phenomenally popular Gen-Y promo from Common Wealth CU, one of the the merging credit unions?

In the comments of a previous post here at The Financial Brand, representatives from both Common Wealth and Currency Marketing, the agency behind Young & Free, reassured concerned readers that yes indeed, Young & Free would survive the merger.

The selection of Servus as the name comes as no surprise. First off, Servus was the larger credit union in the merger. It’s also a far more unique and interesting name than either of the other two options, Common Wealth and Community Savings, which are both fairly generic names. That’s what makes it possible to get trademark protection with real teeth. And the double-meaning behind the name is a nice touch: “service” and “serve us.”

Being able to secure a clean trademark is critical when changing names, a lesson some financial institutions frequently learn the hard way. (For related coverage on the pitfalls of financial trademarks, see today’s article from The Financial Brand on TD’s troubles with the Commerce name.)

Common Wealth and Community Savings have until October 31, 2008 to phase-in the new Servus name.

You can read the official press release here (PDF).

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• Merged Credit Unions Roll Out New Brand As They Form ‘Solarity’
• Name Change Review: Argent, Talmer, Orion, Alloya + 4 More
• Bankers Conspire Against Credit Union In Brutal Turf War