February 6, 2014
Thursday Edition
CU loans outpace savings for first time since '07

Credit union lending outpaced savings in 2013, the first time that has happened since 2007, according the Credit Union National Association, which Tuesday released its monthly sample of estimates for December. Credit unions reported loan balances rose 6.8 percent last year, up from the 4.8 percent in 2012.

"Credit union members were in a car-buying mood with new auto loans and used auto loans up 10.9 percent and 8.9 percent, respectively," said Steve Rick, CUNA senior economist.

Savings growth decelerated to 4.3 percent in 2013 from 6.1 percent one year earlier. Credit union savings balances declined 0.1 percent in December compared with a 0.9 percent increase in November. One-year certificates (1.1 percent) and money market accounts (0.6 percent) increased during December. Share drafts, regular shares and individual retirement accounts declined 5.3 percent, 0.1 percent, and 0.04 percent, respectively.  

Credit union loan balances are expected to rise 7 percent in 2014, Rick said. "Expect households to release pent-up demand for autos, furniture, and appliances over the next two years," he added.

With loans growing faster than savings, the loan-to-share ratio rose to 70.3 percent in December 2013, from 68.6 percent in December 2012. This helped increase the yield on asset ratio in the second half of the year, reversing its six-year slide.

Additionally, credit union membership rose by 2.9 percent in 2013 to reach 98.87 million. "We should see credit union memberships climb above the 100 million mark sometime in May or June 2014," Rick said.

To read the complete article visit CUNA News Now.

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Alabama State GAC concludes with lawmaker visits

The Alabama Credit Union Association State Governmental Affairs Conference concluded on Wednesday with a look at state issues, federal credit union issues, and a visit to the State House. Attendees got a special welcome at the State House when they visited the Senate Chambers viewing gallery and the video board above the Senate floor read, "The Alabama Senate Welcomes the League of Southeastern Credit Unions."

The lawmaker visits revolved around the update to the state credit union act, patent trolling, and public deposits. With patent trolling being a relatively new issue, the League, along with a handful of credit unions, was able to meet with Rep. Phil Williams (R-Madison), the bill's sponsor. Rep. Williams was excited to talk to the credit unions who have had first hand experience with patent trolling, including Corporate America CU CEO Pete Pritts.

Before heading to the State House, League staff updated attendees on the various bills in the Alabama legislature that concerned credit unions. The update to the Alabama State Act is continuing on a good path with the next movement on the bill possibly coming next week. The snow days last week set the legislature back a few days. 

On the federal side, the League's federal contract lobbyist John McKechnie updated the group on tax reform, supplemental capital, and regulatory issues. He said credit unions seemed very well positioned on tax reform, however Unrelated Business Income Tax (UBIT) might be on the table. He also said changing the name on the secondary capital issue to supplemental capital was a good idea because it implies helping credit unions and Congress wants to help entities. 

Visit the LSCU Top Stories for more pictures from the Alabama State GAC and the LSCU Action Center Facebook page. A wrap-up video will be posted next week. 

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Learn what you need to know about NCUA Liquidity Requirements

LEVERAGE strives to bring you partners and solutions that help your credit union improve performance. LEVERAGE also focuses on solutions that address safety and soundness, especially in light of the ever increasing regulations that impact your operations. In the fourth quarter of 2013, NCUA issued guidance on liquidity and contingency funding plans. LEVERAGE has worked with Vining Sparks to offer a What You Need To Know webinar in light of the new NCUA Liquidity Requirements. 

Register today for the What you Need to Know webinar, Feb. 13 at 11:00 a.m. EST and learn more about the October 2013 NCUA guidance on liquidity and contingency funding plans, effective March 31 of this year. Click here to register. For more information contact a LEVERAGE business development consultant.  

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NCUA Town Hall webinar Feb. 12

NCUA's Town Hall Meeting webinar is Wednesday, Feb. 12 at 3:00 p.m. EST and will feature updates on current initiatives by the National Credit Union Administration and the Consumer Financial Protection Bureau. Click here to sign up today and join NCUA Chairman Debbie Matz, and special guest CFPB Director Richard Corday for this free webinar.

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In This Issue
Thursday Edition
CU loans outpace savings for first time since '07
Alabama State GAC concludes with lawmaker visits
Learn what you need to know about NCUA Liquidity Requirements
NCUA Town Hall webinar Feb. 12
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.

Upcoming Event Deadlines
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
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Feb. 7 CFPB Exam - International Transfers
Feb. 11 BSA Essentials, Jacksonville, FL
Feb. 11 BSA Advanced, Jacksonville, FL
Feb. 12 Docs to Keep-Destroy-Hold Up in Court
Feb. 13 Security & Robbery Training, AL
Feb. 13 CFPB Mortgage Rules Lending
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