January 24, 2014
Friday Edition
Alabama Credit Union Act Update passes Senate Committee unanimously

A bill that updates the Alabama Credit Union Act passed the Alabama Senate Committee on Banking and Insurance unanimously this week. SB 212, sponsored by Senate Banking Committee Chairman Slade Blackwell (R-Mountain Brook), is a collaboration between the League, Alabama Credit Union Administration, and affiliated credit unions. While most of the changes are technical in nature and non-controversial to the banking and finance industry, this legislation is an important stepping stone to further innovative legislation within the Alabama Credit Union Act.

The house counterpart, HB 165, was also introduced last week by Rep. Greg Wren (R-Montgomery). That bill could be heard in the House Financial Services Committee as early as next week. The League will provide updates as the legislation moves forward. 

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NCUA approves final derivatives investment rule

A proposal that will allow well-run federal credit unions to use simple derivatives to hedge against interest rate risks has just been approved at Thursday's NCUA board meeting.

The NCUA plan would allow only well-managed credit unions with $250 million or more in assets to invest in derivatives.

The final rule addresses permissible derivatives and characteristics, limits on derivatives, operational requirements, counterpart and margining requirements, and the procedures a federal credit union must follow to apply for derivatives authority.

Nearly 400 credit unions would be eligible to apply for derivatives investment authority, and the agency estimated that 30 to 60 credit unions would likely apply for the authority within the first two years of the program.

Visit CUNA News Now for the complete article.  

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NCUA unveils risk-based capital plan

A new risk-based capital framework for credit unions has just been released at Thursday's National Credit Union Administration board meeting.

The proposed standard recognizes where credit unions are today and looks forward, NCUA Chairman Debbie Matz said. The rule protects the vast majority of credit unions, she added, saying that 94 percent of credit unions are well-capitalized.

“Most credit unions will not be adversely affected by this rule. There are only about 200 credit unions that will be required to change their portfolio as a result of this rule,” Matz told the CU Times after the board meeting.

Under the 198-page NCUA proposal, the current seven percent leverage capital standard, which is required by the Federal Credit Union Act, would remain the floor. However, the agency has said credit unions with assets of $50 million and above would be subject to revised risk-based capital requirements to better correlate required capital levels to risks the agency deems relevant.

The proposal would require calculation of of Basel-style risk-based capital ratio, but the risk weights would be different from those applied to community banks.  It would require higher minimum levels of risk-based capital for credit unions with concentrations of assets in real estate loans, member business loans, or high levels of delinquent loans. However, some other weights--current consumer loans--would have lower weights than under the community bank requirement.

Visit CUNA News Now or the CU Times for more more details.

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CU happenings

Gold Coast FCU hosts breakfast with Rep. Patrick Murphy

On Jan. 22, Gold Coast Federal Credit Union and the Palm Beach Chapter of Credit Unions hosted a meet & greet breakfast with Rep. Patrick Murphy (D-FL). Credit union attendees and Rep. Murphy had an engaging dialogue discussing issues affecting the credit union industry including the Don’t Tax my CU campaign, member business lending, and other regulatory burdens. In attendance were members of PBC Credit Union, IBM Southeast Employees FCU, and Gold Coast FCU.


Jim Mitchell retires from
Army Aviation Center FCU

One of Army Aviation Center Federal Credit Union’s most pivotal and influential figures said farewell to the financial institution this month. Jim Mitchell, president and CEO of AACFCU, retired on Dec. 10 after 29 years.
Mitchell joined the AACFCU in 1984 as president and CEO, and has managed and audited credit unions in the Southeast for almost 45 years. Family, friends, staff and members of the credit union gathered at the AACFCU Operations Center in Daleville to say goodbye, wish Mitchell well and surprise him with a few dedications in his honor. To celebrate Mitchell’s retirement, AACFCU dedicated its Operations Center building in his honor.

AACFCU board chairman Charlie Mingus, left, presents former president and CEO of AACFCU Jim Mitchell with a self-portrait and building plaque in honor of his retirement.

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In This Issue
Friday Edition
Alabama Credit Union Act Update passes Senate Committee unanimously
NCUA approves final derivatives investment rule
NCUA unveils risk-based capital plan
CU happenings
LSCU & Affiliates Media

President's Quarterly Report
LSCU & Affiliates President/CEO Patrick La Pine looks at the League's activities for the fourth quarter which includes an office move in Tallahassee, a new LEVERAGE hire and an update on tax reform.

Tax Reform's New Message
The House is continuing to push tax reform, just in a different way.

Upcoming Event Deadlines
Jan. 28 Last day to receive "early bird" rate for Small Asset Size Conference - Orlando, Ft. Lauderdale, Birmingham
Feb 10 Last day to receive “early bird” rate for FCUA State GAC – Tallahassee, FL
Feb 11 Last day to receive “early bird” rate for Security & Robbery Training – Tallahassee, FL
Feb 18 Last day to receive “early bird” rate for IRA Essentials & Advanced Training – Birmingham, AL
Upcoming League Events
Jan. 28 Reg CC Funds Availability & More
Jan. 29 Compliance & BSA for SR Mgmt-Board
Jan. 30 What is Personal Tax Return Telling Me?
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