October 2008 Newsletter

From Our President
To All Ford Credit Unions – Important Ford Payroll Information
Please click on "Project Cavalier"

“Project Cavalier”

Shirley Meyer, President
716-826-6427

Click on the Applause Sign below
to see our pictures from the CCACU 2008 Las Vegas Conference.

See you in Charleston, South Carolina!

September 16-20, 2009

Don't Underestimate the Negative Impact of Change

http://creditunionmagazine.com/story.php?doc_id=777

Do You Have an ACH Work Plan?

http://creditunionmagazine.com/story.php?doc_id=778

Ditch your bank for a credit union

You aren't bound to your bank. Learn why credit unions deliver big savings and better service for many consumers.

By Liz Pulliam Weston

If the response to "When banks turn evil" is any indication, a lot of you are really and truly sick of your banks.

You're sick of getting socked with fees, or tripped by hidden penalties, or earning lousy interest rates. You're tired of being treated like a nuisance rather than a customer. And yet you have little hope that the bank down the street is any better.

But who says you have to settle for a bank? Relief could be as close as the nearest credit union.

Because so many people are fuzzy about the differences between banks and credit unions, I'll highlight the three most important distinctions:

· Credit unions are member-owned. If you have an account at a credit union, you're a part owner in the enterprise. That may not entitle you to use the executive washroom -- your CU probably doesn't even have an executive washroom -- but you're likely to be seen as a person rather than as a "cost center."

· Credit unions are not-for-profit. This status helps explain why interest rates tend to be significantly better, and fees fewer and smaller, at credit unions than at banks. Any profits credit unions do make are distributed as dividends to their members. Contrast that with banks, which continually invent new fees and policies to boost profits (and to pay those stunning executive salaries).

· Banks hate -- hate -- credit unions. President Franklin D. Roosevelt signed the Federal Credit Union Act into law in 1934 to "promote thrift and thwart usury," and banks have pretty much been gunning for them ever since.

Because of their not-for-profit, cooperative structures, credit unions are exempted from most state and federal taxes. Banks have convinced themselves this is an unfair advantage and have spent a lot of effort, plus a fortune in lobbying fees, trying to legislate credit unions out of existence or at least limit who can join. (I guess they thought the money was better spent there than on, say, improving their interest rates, reducing their fees or slashing their telephone hold times.)

Are you eligible? Almost certainly

Fortunately for you, banks have failed pretty miserably in their efforts to contain the competition. That's why the Credit Union National Association, the CUs' trade group, can brag that virtually everyone in the U.S. can belong to a credit union, thanks to where they live, where they work or the associations to which they belong.

Average interest rates at credit unions vs. banks
Consumer loans	Credit unions	Banks
Credit card	12.15%	15.08%
48-month new car	6.21%	7.59%
48-month used car	6.46%	8.17%
36-month unsecured	11.12%	12.73%
Mortgage loans
HELOC	7.91%	8.34%
One-year ARM	5.75%	6.05%
30-year fixed	6.75%	6.77%
Savings
Regular savings	0.94%	0.73%
Interest checking	0.63%	0.62%
Money market	1.96%	1.24%
One-Year CD	4.74%	4.17%

Source: Datatrac, July 2007

The nation's credit unions count 90 million members, and their trade association estimates members save $8 billion a year thanks to better interest rates and reduced fees. Credit-union-issued credit cards, for example, tend not to have annual fees or to charge punitive interest rates for a single late payment. Most credit unions offer free checking accounts, and penalties for overdrawing those accounts tend to be lower: a $20 or $25 fee is typical, compared with up to $39 a pop charged by banks.

Yet many people discover the benefits of credit unions almost by accident, said Pat Keefe, a spokesman for the credit-union association. They'll join because they can get a decent rate on a car loan, say, and only gradually discover that the checking account has far fewer fees, the credit cards offer better interest rates, and the mortgages aren't bad, either.

But you don't have to wait until you need a loan. Usually, finding a credit union is as easy as visiting your employer's human resources department. If you don't work or want more options, you can use the "CU Matchup" tool at JoinACU.org.

Based on where we live, where my husband works and our various other affiliations, the matchup tool spit out 31 local credit unions that might accept us. Some of them had fairly narrow membership requirements, like America's Christian Credit Union, which requires attendance at certain evangelical churches. Others were pretty darned broad, like Wescom Credit Union, which allows anyone who lives, works, worships or goes to school in Southern California to become a member.

Not perfect -- but not out to get you

Like bank deposits, money in credit unions is insured for at least $100,000 per account. Instead of the Federal Deposit Insurance Corp., which insures bank deposits, the coverage is provided by the National Credit Union Administration, but both agencies are backed by the full faith and credit of the federal government.

And you typically aren't restricted to using your own credit union's ATMs. Most CUs either offer fee-free access to a huge network of ATMs or reimburse your fees if you use other institutions' machines.

Are credit unions perfect? Of course not. No institution run by humans and their computers could possibly claim to satisfy everyone all the time. Occasionally I'll hear of a credit union that's instituted some silly fee, and too many have opted for "bounce protection" instead of real overdraft protection for their accounts. (For why the difference is important, read "Don't be duped by 'bounce protection.'")

But most of the folks I talk to who have abandoned banks for credit unions are thrilled they made the switch. If you're sick of your bank, why don't you follow suit?

Columns by Liz Pulliam Weston, the Web's most-read personal finance writer, appear every Monday and Thursday, exclusively on MSN Money. She also answers reader questions on the Your Money message board.

Issues arise regarding quarterly UBIT filing

State-chartered credit unions filing Internal Revenue Service (IRS) Form 990-Ts, the "Exempt Organization Business Income Tax Return," and paying unrelated business income tax (UBIT), will want to consult their accountants or tax advisors to discuss the need to file quarterly estimated tax returns on UBIT income, advises the Credit Union National Association (CUNA). Consultation should be pursued whether a credit union has filed a 990-T or plans to do so for 2008. A handful of credit unions have been told by the IRS that they may be subject to interest or penalties if they fail to submit quarterly estimated tax reporting in years when they file, or expect to file, a 990-T form. "Unfortunately, the tax law and the 990-T instructions state that 'generally, an organization filing Form 990-T must make installment payments of estimated tax if its estimated tax is expected to be $500 or more," says CUNA General Counsel Eric Richard. IRS Form 990-W can be used to help figure estimated UBIT liability. The estimated tax is due April 15, June 15, Sept. 15, and Dec. 15. On a related topic, a trial date of Aug. 31, 2009, has been set for Bellco CU’s case challenging the government's policies on UBIT issues.

NCUA guidance for weathering economic times

Current economic conditions have profound implications for credit unions, and the National Credit Union Administration (NCUA) has released guidance for federally-insured credit unions. NCUA Letter #08-01 and accompanying Supervisory Letter are “must reads” for credit union management and volunteers. The Supervisory Letter discusses several of the current risks facing the Credit Union Movement, provides guidance for assessing mortgage portfolio risk management, and recommends best practices for conducting risk focused supervision and monitoring. Effectively addressing and resolving risk issues requires open and clear communication between NCUA field staff and credit union management, and continues to be a core element of the Risk Focused Examination program.

Read the letters at the links below.
http://www.ncua.gov/letters/2008/CU/08-CU-20%20LCU.PDF
http://www.ncua.gov/letters/2008/CU/08-01%20Sup%20Letter.pdf

CUs up share of consumer credit to 9.2%

Increases in both revolving and non-revolving credit helped credit unions boost their share of total consumer installment credit from 9.12 percent to 9.2 percent in July, the Federal Reserve reported Monday.

Marketwide, total consumer installment credit increased in July by 2.1 percent to an annualized, seasonally adjusted $2.59 trillion; it was the slowest pace recorded since last December. NAFCU Staff Economist Katrin O’Connor said consumers’ pace of borrowing, a measurement that does not include secured real estate loans, was lower than expected.

Breaking down the marketwide numbers, O’Connor said non-revolving credit increased at an annual rate of 0.5 percent to $1.62 trillion, while revolving credit surged by 4.8 percent to $969.9 billion. “The poor showing of the former is a reflection of the dismal vehicle-sales numbers reported in recent months,” she noted.

At credit unions, total consumer lending grew in July from $233.9 billion to $236.6 billion, non-seasonally adjusted. Non-revolving credit lending increased by $2.3 billion to $204.6 billion; revolving credit increased by $0.3 billion to $32 billion.

O’Connor said consumer spending is likely to slow significantly during the second half of the year as the effect of the rebate checks continues to taper off and consumers face continued challenges. “The weak labor market, tightening credit conditions and falling home values do not bode well for consumer installment credit demand or economic growth in general,” the economist warned. “NAFCU expects total consumer installment credit growth to slow from 5.7 percent in 2007 to less than 5 percent this year.” (NAFCU)

Credit Union Snapshot

	2Q '08	1Q '08
# of CUs	8,337	8,425
Members (millions)	90.1	89.9
Total Assets ($ billions)	812.7	782.0
Total Savings ($ billions)	684.6	653.1
Net Cap. /Assets	11.1	11.5%
Loans to Savings	80.1	84.4%
Loan Delinq.	.97%	.99%
Key Economic Indicators Credit Union Indicators Rates by State Rate Alert Ethnic Minorities Lag in Credit Card Ownership About half of Hispanics own credit cards. Fewer Hispanic and African-American consumers have credit cards and deposit accounts than do consumers of other ethnic groups, according to a report by the market-research firm Synovate. Sixty-nine percent of respondents who identified themselves as African-American in a 2007 telephone survey and 51% of respondents who identified themselves as Hispanic owned credit cards, according to Synovate's 2008 U.S. Diversity Markets Report, which was summarized on CardForum.com. That contrasts with 87% of "general market" survey respondents—those who are other than African-American or Hispanic. About 90% of both African-American and general-market respondents had bank or credit union accounts (the survey did not distinguish between checking, savings, and other types of deposit accounts), while 77% of Hispanic respondents had deposit accounts. One reason a higher percentage of African-Americans and Hispanics have less access to credit and participate less in the U.S. financial system is that incomes for both ethnic groups are lower than average, according to Elliott Savitzky, a Synovate vice president. Other factors also come into play. For example, only 31% of African-American respondents say financial institutions treat them well compared with 36% of Hispanic respondents who said so and 41% of general-market respondents. Marketing financial and payment services to underserved portions of the U.S. population will pay off as consumers' financial situations and credit scores improve over time, says Savitzky. "Issuers are always going to use credit scores to minimize their risk," he says. "But if they can market their products in underserved communities and provide products and services consumers haven't had access to in the past, it's going to pay off." The Hispanic population is growing more than three times as fast as the overall U.S. population, reports CUNA's 2008-2009 Environmental Scan. This ethnic group's average income also is growing faster than that of the overall population. About 60% of Hispanics now earn between $25,000 and $75,000 annually, while 10% earn more than $100,000. For more on the Hispanic market, underserved consumers, and payment systems, check out the 2008-2009 E-Scan.

Lessons Learned From Microfinance

By Beth Stetenfeld

Did you know:

	Forty percent to 60% of the world's population is unbanked;
	Twenty eight million people in the U.S. have no financial account relationship; and
	About 45 million people—19% of U.S. households—have account relationships but continue to use various nontraditional financial services to meet their needs?

David Grace, vice president of association services for the World Council of Credit Unions (WOCCU), cited these figures in a presentation on "Microfinance: The Downsizing of Financial Services," at CUNA Mutual Group's 2008 Discovery Conference in Hollywood, Fla.

The financial services competitive landscape is changing, Grace said:

	New microfinance institutions are developing in new areas and in areas credit unions served in the past.
	Payday lenders, pawnshops, and other nontraditional lenders are eroding credit union market share.
	Credit unions need to pay attention to how other institutions serve emerging demographic groups.

The crowded U.S. financial services marketplace includes approximately 13,000 check cashing outlets, 14,000 pawn shops, 10,000 payday loan stores, and 154,000 money transfer agents.

At the same time, credit unions' overall return on assets (ROA) will fall to 0.53% this year—the lowest level since 1980, according to the Credit Union National Association.

While membership growth is up—to 2% in April 2008 from 1.2% in April 2007—that's largely due to indirect lending, says Grace.

To improve ROA and membership growth, consider microfinance options, he suggested.

One of the fastest-growing U.S. credit unions is Latino Community Credit Union in Durham, N.C., Grace said. Started in 2000 to serve the community's Latino population, the credit union now boasts 12% ROA, 12% net worth, a 1.9% delinquency ratio, and 55,000 members.

Seventy-five percent of those members never had an account before joining the credit union, and 99% were considered low income. The credit union now has five branches and has expanded beyond Latino members to welcome immigrants from around the world.

What lessons can other credit unions learn from this model? Traditional financial products—such as share draft accounts, savings, insurance, and payment accounts—aren't the best acquisition tools for most emerging markets, said Grace. Instead, consider providing (or partnering with an organization to provide) check cashing, remittances, cell phone bill pay, or other transactional offerings.

Grace also recommends:

	Establishing a presence with the market you seek to serve. Field-of-membership expansion isn't enough, Grace said. The credit union needs a facility to serve unbanked communities.
	Building ties with trusted community organizations.
	Budgeting realistically for costs. Growth may be slower and new members may be "less profitable" than expected.
	Reviewing the credit union's product mix. Consider offering lower minimum balances, lower loan minimums, second-chance loans, and anti-payday loans, he advised.

Beth Stetenfeld is managing editor for Credit Union Magazine.

Some banks watched for Fannie, Freddie fallout

Treasury’s stock agreements with Fannie Mae and Freddie Mac place the federal government first in claims before all other shareholders in the entities, so banks and thrifts with common or preferred shares in the entities have been urged to let regulators know of any problems they may be experiencing.

“The agencies believe that, while many institutions hold common or preferred shares of these two government-sponsored enterprises, a limited number of smaller institutions have holdings that are significant compared to their capital,” according to a joint statement Sunday by the Federal Reserve Board, FDIC, Office of Thrift Supervision and the Office of the Comptroller of the Currency. Regulators said they stand ready to work with institutions on capital restoration plans if needed.

Treasury says that activities under way to bolster the entities over the next 16 months could result in some return to investors. In any event, if losses do result, the shares held by Treasury – “senior preferred” shares – will be protected over all others, ensuring against additional cost to taxpayers.

Federally insured credit unions don’t purchase stock in Fannie and Freddie, but many do, like other institutions, maintain investments in mortgage-backed securities. Treasury is launching an MBS purchase plan to help stabilize the market and ensure continued mortgage liquidity, a move also intended to help ensure the stability of MBS holdings. The program continues through 2009.

As of June 30, federally insured credit unions had about $39.3 billion in agency/GSE mortgage-backed securities. That equaled about 23.5 percent of all FICU investments.

Senate Banking Chairman Chris Dodd, D-Conn., said he plans to have regulators testify “in the coming days” on the conservatorship and funding decisions. He recalled previous statements to Congress by Treasury Secretary Henry Paulson that he believed such action, facilitated by the recent housing and economic recovery statute, would not be necessary.

House Financial Services Chairman Barney Frank, D-Mass., said he will view the actions taken with an eye toward protecting taxpayers, restoring market stability and “ensuring the availability of affordable housing.” (NAFCU)

U.S. bankruptcies up nearly a third from ’07

U.S. consumer bankruptcy filings increased 29.2 percent in August on a year-over-year basis – the same percentage increase in the first six months of 2008, the American Bankruptcy Institute said.

The overall August consumer filings total of 96,413 also marked the highest amount of monthly bankruptcies since October 2005, the month the new bankruptcy law took effect. Chapter 13 filings made up 33.2 percent of all consumer cases in August, a slight increase from July.

The mid-year totals are based on numbers from the U.S. courts. ABI said total number of bankruptcies filed in the first six months of this year were up 29.2 percent from the same period in 2007. Filings totaled 522,205 during the first half of the calendar year of 2008, up from the 404,090 cases filed in the same period in 2007.

Filings by individuals or households with consumer debt increased 28.8 percent to 503,749 for the six-month period ending June 30; the overall percentage of consumers filing for chapter 13 protection fell slightly from 38.4 percent during the first half of 2007 to 33.8 percent in 2008.

Business filings for the same six-month period ending June 30 totaled 18,456, representing a 42.1 percent increase over the first-half 2007 total of 12,985. Chapter 7 business liquidations increased by 54.7 percent; Chapter 11 reorganizations rose by 27.9 percent.

ABI Executive Director Samuel Gerdano said the data numbers reflect the growing trend of bankruptcy being seen as a way out of addressing financial difficulties. “We expect bankruptcies to exceed 1.1 million by year end,” Gerdano said. (NAFCU)

Ohio CU First FI in State to
Issue Cards Instantly

By David Morrison

ENGLEWOOD, Colo. — A credit union is the first financial institution in Ohio to begin issuing its members credit and debit cards on-site, according to the lending vendor of the instant issuing technology.

Dynamic Card Solutions announced that the $136 million Glass City Credit Union, headquartered in Maumee, Ohio, is the first financial institution in the state to start on-site issuing. The CU said it would start instantly issuing debit cards at its headquarters and two of its branches.

"We had been considering instant issue for many years," said Mark Slates, president of Glass City FCU.

"Before we made the decision to go with DCS, we were fortunate enough to see one of DCS' credit union customer's instant issue programs on location. We were not only impressed with the CardWizard software itself, but after speaking with the financial institution's staff and hearing the simplicity of the program and positive feedback, we were confident in selecting DCS as our instant issue vendor of choice,” he said. (CUTIMES)

Making an Economic Downturn Work For You – And Your Members

For most Americans, the economic picture isn’t very pretty these days, yet forward-looking credit unions are finding innovative ways not only to remain competitive in a sagging economy, but even increase their market share. These insightful innovations are boosting membership, too, attracting new members seeking the best deal.

With the near-meltdown of the mortgage industry continuing to dominate the media, the trickle-down effect is hitting many industries hard, including the auto industry, with no let up in sight. Fortunately, a number of credit unions are taking a proactive response to the auto industry’s downturn and finding that their concerted efforts are paying off.

To Amy Ogden, Consumer Loan Manager of Deseret First Credit Union in Salt Lake City, the key is to stick to the basics – and do them better than anyone else. “We’ve tried not to have a knee-jerk reaction to the downturn in the economy, though we do see that people aren’t spending as much,” she says. “We’re looking to maintain consistency in our underwriting by focusing on our borrowers as people, and doing our best to meet their individual needs.”

For Ogden, a healthy dose of common sense is always helpful when trying to cope successfully with a weakening economic climate. “I think people are cautiously optimistic that the economy may not be as bad as it seems to be from all the media coverage,” she continues. “After all, with prices down, it’s a great time to buy, and many people who realize this are taking advantage of it.”

Meanwhile, Raleigh, North Carolina’s Coastal Federal Credit Union has grown their loan base by taking steps to further guarantee stability. “We’ve started to employ credit insurance on most auto loans as a way to ensure our financial stability. That definitely represents an additional cost to us, but we feel that if you want to do the best for your membership, it’s worth it,” says Indirect Lending Manager Pete VanGraafeiland. “As a result, we’ve been able to broaden the range of customers who can qualify for loans. We’ve never dealt with sub-prime lending, for a number of reasons, but we’ve still been able to broaden our loans in order to carry near-prime loans.” The cost of the credit insurance is graduated, according to the borrower’s credit score, with Coastal Federal paying the cost up front by foregoing percentage points for a couple of months.

Northeast Credit Union, Portsmouth, New Hampshire, is on a growth curve despite the economic downturn, according to Senior Vice President Mike Chisholm. A key factor in Northeast’s growth has been a concerted effort to focus on soliciting and maintaining new relationships with area dealerships. “We’re in a relationship business, so we hired a fulltime rep to hit the road, visit area dealers and solicit new relationships,” adds Chisholm.

CoastHills Federal Credit Union, serving California’s central coast, is taking a more aggressive approach, according to Dal Widick, Chief Operations Officer. “We believe it’s time for credit unions to be aggressive in finding ways to turn their loan volumes up. We must be creative both in our loans and in the way we price our products,” he says. “Recently we decided to put our money where our mouth is and lower our rates,” continues Widick. “We began by offering super competitive vehicle loan rates to those members with risk-free credit profiles.”

To Widick, CoastHills’ strategy has made a measurable difference in the region. “Our dealers are very happy because they’ve increased their sales by anywhere from 17 to 20%,” he says. “We’re now doing enough business that it’s acting as a stimulus to the local economy – we’ve made a huge difference in our members’ lives and in our dealers’ lives. Why, we got 400 new members last month alone – people who had heard about our products, walked in and simply asked, ‘How do I join?’”

By taking a proactive approach to the current economic downturn, credit unions are finding that success, even market growth, in the auto lending arena can be achieved.

-- excerpted from CUDL’s Merge Magazine Summer, 2008

A Gen Y Perspective: What CUs Can Learn from Nintendo?
By Dane Coalson, Industry Analyst, Callahan & Associates, Inc

.

Credit unions are facing competition at a level they have never seen before. Online, high yielding savings accounts are attracting deposit dollars. Banks remain aggressive with credit card offers, even in the current economic climate. Despite positive numbers in the 2nd quarter, credit unions continue to experience slow growth, especially when it comes to attracting new members, as industry membership only increased 1.25% in the past 12 months.

On the identification front, consumers are increasingly unable to differentiate a bank from a credit union, particularly since many banks are using credit-union-like messaging in their marketings. At the same time, members are demanding more from their financial institutions, such as easier access through online and mobile channels, as well as other convenient technologies.

What Does It Take to Stay Relevant?
Every single day, companies reinvent themselves to succeed in their specific marketplace. But what does this take? Here is one example:

Nintendo, the patriarch of the rapidly expanding personal video game market, has accomplished something amazing over the past two years. They cast off their outdated image and moved from third place amongst their competitors to the top spot in the gaming world. This success occurred because of a single innovative differentiator…

Nintendo started out at the top of the heap in 1985 as the first personal video gaming system that enjoyed widespread popularity. For nearly two decades, they successfully held their own against competing gaming systems from the Sega Genesis to the Sony Playstation. But the tide turned against Nintendo as we moved into the new millennium and they launched the Gamecube.

The competition, most notably Sony's Playstation 2 & Microsoft's Xbox console, decided to embrace new trends that were emerging in the gaming industry. While Nintendo's flagship games continued to focus on wholesome standards, such as the Mario or Zelda franchises, while edgier games with a more mature focus were developed for the other consoles.

The gaming industry was changing, as many of the children who grew up playing Nintendo became more interested in titles aimed at adults, such as Grand Theft Auto and Halo. Nintendo’s Gamecube was completely dominated by its competitors and it did not look like Nintendo's traditional approach could effectively compete in the rapidly changing environment.

How did Nintendo Get Back on Top?
They came up with something that the market had never seen before, something that was truly innovative and clearly differentiated them from their competitors.

They introduced a completely motion-sensitive controller and gaming system- the Wii, which launched in 2006. It is the first video game system that allows people to manipulate their actions in the video game using body movement, instead of solely relying on button and joystick combinations. This new capability allows the system to develop different types of games that have never been seen before, including functional fitness applications. The Wii not only resonates strongly with youth, but is the first system to be universally desired by every age range, from elementary school children through seniors at retirement centers. The system is so popular, that the Wii continues to fly off the shelves wherever it appears, even two years after its initial release.

How Can Credit Unions Learn From This?
Credit unions struggle to break out of the pack with their traditional message of “member value” simply because the entire financial services industry has co-opted the "we have your best interest at heart" message and constantly bombard the public with it. The industry needs to find new, fresh ways to get their message across and visibly demonstrate their difference to potential members! This is no easy task, but I think that industry professionals need to take the time to try and come up with some answers…

One Example of Industry Innovation:
Musicstream LIVE is an emerging initiative in the credit union industry that has recently caught my attention. This program will combine live music concerts from up-and-coming artists at high schools across the country with online streaming music, free downloads, and social networking. Credit unions will be able to stage these concerts at their local schools and have an opportunity to bring their message to young people in an exciting environment. One of the biggest strengths of this venture is the wide variety of high-profile partners that have already been secured. These partners include music industry heavyweight BMI (Broadcast Music Incorporated) and the Future Business Leaders of America, which have a chapter in nearly every high school across the nation and will use their student members to promote the concerts.

I have been unable to find any type of similar program offered by other financial institutions. Keep in mind that musicstream LIVE is still in the planning phase, and will come to market in early 2009. This initiative has the potential to allow credit unions to differentiate themselves from competition in the youth market and I will certainly be keeping my eye on it.

What Ideas Do You Have?
I would like to ask anyone reading this article to leave a comment. Share with all of us, what do you think could be an example of a differentiator for your credit union? Don’t worry about what is currently feasible. If anything is possible, and price and implementation no object, what would you desire from your financial institution?

Related Resources:
I will be participating in a Gen Y panel discussion that will examine how CUs can apply 15 successful strategies that the retail industry has used to appeal to Gen Y. At the end of September, Callahan will also host a webinar focused on helping CUs attract the 18 & under crowd.