January 27, 2014
Monday Edition
CUNA: No credible case for increasing CU capital requirements

CUNA is making the argument that given how well credit unions survived the recent great recession, it does not think there is a credible case for increasing credit union capital requirements. And that the risk-based net worth proposal by NCUA at Thursday's board meeting does not make the case.

Beyond CUNA's general concern of whether a rule is needed at all, one particular provision stands out, which would allow NCUA to raise the risk-based capital requirement of an individual credit union above the normal threshold levels based on subjective factors. “Complex credit unions with high levels of risk are … expected to operate with capital well above minimum risk-based standards,” the agency said in issuing the proposal.

According to NCUA, the overall proposal would affect only 199 credit unions. CUNA is assessing the proposal’s impact on those credit unions, and on the system as a whole.

CUNA’s Examination and Supervision Subcommittee -- which has already expressed the view that the current system seems to provide sufficient levels of capital – will be reviewing it carefully. Additionally, CUNA will be looking forward to your views as well (you can calculate how your credit union would fare under the proposal by using the online tool NCUA has provided; click here).

Ultimately CUNA believes that new capital requirements are not necessary and is concerned about the impact of the proposal on credit unions relative to other community-based financial institutions. CUNA's primary objective in developing our position will be to ensure a final rule that is narrowly tailored to minimize any negative effects on credit unions.

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President's point

It’s a major election year in Alabama and Florida, as well as many federal races. The LSCU is planning to flex its grassroots muscle like never before. The League has three political action committees - FEDPAC (federal PAC), CULAC (FL state PAC), and ACULAC (AL state PAC), each with a board of trustees made up of politically-minded credit union officials from both states. They help staff decide which candidates to provide financial support to. This past week the LSCU board of directors approved an official League Endorsement Policy. This will take our endorsements and advocacy efforts to a new level.

Let me explain why the board adopted this policy. Alabama and Florida have many high profile federal races, as well as races for governor and cabinet positions. The endorsement will come officially from one of our two state-specific brands developed for advocacy purposes - either the Alabama Credit Union Association or the Florida Credit Union Association. The PAC trustees will make recommendations to the LSCU board on candidates to endorse.

This entire process will be transparent. Each time the LSCU board endorses a candidate, credit unions will be informed of the reasons for the endorsement. We will not state that this comes from all 279 credit unions or our 6.5 million members because we understand that some of you may not support the candidate because they would be contrary to the values and beliefs of some within our two states. We hope you will support the candidates that the LSCU board supports, because our decisions will be made solely based on their position on credit union issues.  

You can play a part in this process by attending Chapter Legislative events where some of these candidates may appear or responding to our Governmental Affairs emails about potential endorsements. The more you engage yourself in the process, the more informed you will be about why the candidate was endorsed.

By the LSCU board making endorsements, it will raise the profile of credit unions since the endorsements will be for major races. It will also give us a foot in the door with the candidates once they win their election. The PAC trustees have a great track record of endorsing winning candidates for the right reasons. This is one more step in making Alabama and Florida credit unions major players in Montgomery, Tallahassee, and Washington, D.C. 

I would also like to say thank you to the credit unions that took part in the second annual LSCU FedPAC Quail Hunt. This year almost 60 folks went to the Doubletree Resort in Town Creek, AL to hunt quail, test their shooting skills, and raise money for the FedPAC. I hope you will come out next year.  

Where’s Patrick:. I will be working remotely for part of this week and in Tallahassee for the rest of the week.  To see my tentative schedule for the next two weeks, visit the LSCU Information for Credit Unions webpage.

See the President's Quarterly video by visiting the League's YouTube page. 

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AL and FL statewide unemployment rates fall to lowest numbers in years

Alabama reported an unemployment rate of 6.1 percent for December, down from November’s rate of 6.2 percent. The December rate represents 129,743 unemployed persons, down from 132,301 in November. The last time Alabama reported an unemployment rate at or below 6.1 percent was in October 2008, when the rate was 5.9 percent.

Florida's unemployment rate showed a similar patten. Florida's statewide unemployment rate dropped to 6.2 percent in December 2013, which is the lowest statewide unemployment rate since June 2008. Additionally, Florida’s annual job growth rate of 2.6 percent in December 2013 was the fastest since June 2006. Contributing to the low unemployment rate and the job growth spike was the 13,500 private sector jobs added across the state in December 2013.

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Getting graphic

As the importance of social media marketing increases with each passing day, it is understandable why so many advertisers and business owners want to boost social media engagement – especially on Twitter.

Hopefully, this week's infographic from Mobile Marketing Watch can help in that effort. Check out Twitter "Tweet Cheat Sheet" for information on how your credit union can increase Twitter interactions such as retweets, CTR (click-through rate), and overall engagement.

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In This Issue
Monday Edition
CUNA: No credible case for increasing CU capital requirements
President's point
AL and FL statewide unemployment rates fall to lowest numbers in years
Getting graphic
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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