With $87 million in assets and 13,000 members, Pittsburgh Teachers Credit Union will officially become ‘Riverset,’ effective January 2, 2008.

According to this article, President and CEO Christine Chojnicki said the credit union’s name was being amended to Riverset in an effort to broaden the organization’s appeal to groups other than teachers. Chojnicki said the name change will make the credit union “more inclusive” of all its members, as well as members or employees of some 60 companies and organizations representing health care, retail, hotel and public sector employees.

She said the credit union isn’t moving toward a community charter or away from its core members, even thought it will be open to anyone who lives on Pittsburgh’s South Side, where the credit union is based.

Chojnicki is quoted as saying, “Our members have been very receptive to the change.”

Michael Wishnow, senior vice president of communications for the Pennsylvania Credit Union Association, said there’s a trend among credit unions to move toward community charters and away from select employee groups, or SEGs.

“When you look at how credit unions grew up, it was usually around a single, large employer,” Wishnow said. “But there are fewer and fewer large employers.”

(more…)

A New York Times article from 1987 says the scramble for good names causes some normally staid financial institutions to wage trademark battles.

It seems some things never change, like these familiar reasons to change names:

“Banks seeking to change their names are attempting to upgrade their image and to convey to their customers their broader market strategies.” — NY State Department of Banking Commissioner Howard B. Brown

Regarding the financial cost of changing names, the article shares a realistic perspective:

“Even a small bank can expect to spend upwards of $500,000 on marketing, logo design, legal costs and other associated expenses, but that many of the banks feel it is a step they have to take.”

Yep, that’s right: $500,000. In 1987 dollars.

Citizens First is apparently the second ‘Citizens Something’ in Michigan.

An article in Crain’s Detroit Business reported that Flint-based Citizens Republic won a preliminary injunction barring Citizens First from using the “Citizens” name at its four branches in Oakland County

Citizens was founded in Flint in 1871, and became Citizens Republic in 2006 after its merger with Republic Bancorp.

Citizens Republic is the largest bank-holding company in Michigan, with $14 billion in assets. Citizens Financial is the ninth-largest bank in the U.S., with more than $128 billion in assets.

Bill Fealko, a lawyer for Citizens First said they will appeal Tarnow’s ruling.

William Hartman, Citizens Republic’s president and CEO said that when Citizens First bought a rival bank in his backyard back in 2004, “we asked them not to rename it Citizens, but they decided to go ahead.”

“With all the bank mergers and acquisitions going on, everyone wants to change names, and you’re going to be seeing more of this,” said Citizen Republic’s attorney Glenn Forbis.

Next, Citizens Republic will take on banking giant Citizens Financial, which wants to change the name of its 122 Charter One banks in Michigan to RBS Citizens Bank.

Bottom line: Lawsuits are expensive and time-consuming, so do yourself a favor and stay away from names like “Citizens,” especially if there’s a chance you’ll end up going head-to-head.

Picking names that sound safe might not be safe at all. If your name looks or sounds like someone else’s in the financial industry, you could find yourself in a heaping pile of trademark problems.

Besides, who wants a me-too name? After all, some of the world’s the most successful brands have unique, distinctive names.

Two banks sharing the same name have both decided to shed their old ‘First Federal’ monikers. One is in Souix City, Iowa, and the other is in Wabash, Indiana.

The Souix City First Federal Bank changed to ‘Vantus Bank,’ while its Wabash counterpart opted for the safer and more familiar ‘Crossroads.

In this better-than-average press coverage of the Vantus name change, Vantus CEO Michael Dosland said, “We wanted a distinctive name that will minimize confusion and more closely reflect the unique value and service we offer our customers.”

The bank says it expects to spend about $800,000 to implement the name change, including consultants, marketing, a paid media campaign and new signage.

Weber Marketing Group developed the new Vantus name and brand. The foundation of the Vantus brand centers around the theme of ‘simplifying banking,’ summarized by the motto, “It’s that simple.”

In a Weber Marketing press release, the firm says, “’Vantus’ is derived from the word ‘advantage,’ and speaks to the unique benefits the bank offers its customers. The name is highly distinctive and differentiates it from other banks.”

Interestingly enough, the bank’s holding company, First Federal Bankshares, will keep its current name and will continue to use the ticker symbol FFSX on NASDAQ.

In this official press release, the CEO of the Wabash First Federal, “There are a number of competitors in our current and future markets who also use the ‘First Federal’ name,” said Roger Cromer, president and CEO. In fact, within a 50-mile radius of its main banking center in Wabash are three different banks—all with the First Federal name.”

The new motto for Crossroads Bank is “Where your money and your life meet: Crossroads Bank.” (Compared to the slogan for Crossroads Credit Union, “A Direction Worth Choosing.”)

This article notes that ‘Crossroads’ is indeed a common name that may cause some of the same problems as ‘First Federal’:

• Although it isn’t common in northeast Indiana, the name ‘Crossroads Bank’ isn’t unique. A financial institution based in Effingham, Ill., has the same designation.
• ‘Crossroads’ also is part of the name of several well-known local and national organizations. The most recognizable instance in the local market is Crossroad/Fort Wayne Children’s Home, a non-profit treatment center for emotionally troubled youth.
• Just up the road CrossRoads RV Inc. employs more than 650 people.

The CU Name wrote about another ‘Crossroads’ financial institution a few months ago.

The CEO of Crossroads estimated his bank’s costs, including advertising, at between $100,000 and $125,000 — “a significant amount” for the bank, which has $300 million in assets.

There’s another article about First Federal becoming ‘Crossroads’ here.

Along with the name change on to Crossroads, the Wabash bank is celebrating with a 45-day sales event:

• Gifts for new accounts opened
• Special CD offer
• Free ATM services on selected products
• No closing costs on mortgages applied