April 7, 2014
Monday Edition
President's point

Since 2004, April has been recognized as Financial Literacy Month. It's a time where this very important issue is highlighted across America. Credit unions take it a step further and also recognize a week – April 20-26 – as the National Credit Union Youth week. Every year many of you hold events during that week to help youth save and to better understand how to manage money. This year there is quite a bit of buzz around financial literacy, especially youth financial literacy.

In Florida, SB 212, sponsored by Sen. Dorothy Hukill, would require a half credit of financial literacy before graduation. This bill has a lot of support in Florida, but education has a full agenda this year. The LSCU is supporting the legislation and made it a focal point of our meeting with lawmakers during the State GAC a couple of weeks ago. We issued an Action Alert late last week to let members of the Appropriations Subcommittee on Education know that this bill has a lot of support in the state. The League also joined a coalition of six other organizations that have come out publicly in support of legislation in Florida for mandatory financial literacy requirements for high school graduation.

On the federal side, the CFPB is working on language for rules to limit the amount that can be borrowed at a payday lender. This has been a long time coming. It’s been two years since a field hearing on payday lending was held in Birmingham where the LSCU and member credit unions met with Director Richard Cordray on the issue. Last month a senate subcommittee held a hearing on whether payday lenders are serving consumers. Rules from the CFPB are imminent that show that payday lending is “abusive” and “unfair” according to the Dodd-Frank Act. This is good news because we all know that payday lenders keep consumers in a perpetual state of debt. Financial education is much needed by adults, as well as our youth.

Last week we began pushing out an op-ed to Florida outlets on April being financial literacy month, the need for financial education requirements, and that credit unions have long been a leader in financial education. Our two states have more than 50 in-school branches giving kids of all ages real world examples of how a financial institution works and financial literacy training. It’s important that over the next four weeks that you push out to your local media what you are doing to teach youth and adults about financial literacy. Our communication’s team can also help you contact your local media.

The League would also like you to let us know what you’re doing this month and get pictures of your events. Post them to our Facebook page or email them to us. We can use these examples in our correspondences with our lawmakers on the state and federal side, as well as the media. Let’s keep the momentum going on financial literacy and help our members and potential members gain a stronger financial foundation. 

Where’s Patrick: This week I will be in the Tallahassee office. I have several internal meetings, and we have our quarterly all-staff meeting this Friday, as well. To see my tentative schedule for the next two weeks, click here. Check out the President's Quarterly video which covers the first quarter and initiatives for the second quarter. 

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New risk-based capital blog from CUNA

CUNA has launched a new blog to make the conversation on risk-based capital (RBC) more interactive.

The RBC blog is the latest CUNA advocacy tool sparked by the National Credit Union Administration's RBC plan. The 198-page risk-based capital framework would impose new requirements on credit unions with assets of $50 million and above. The current seven percent leverage capital standard, which is required by the Federal Credit Union Act, would remain the floor.

The intent of the new blog is to provide a forum for sharing thoughts on risk-based capital in general and the NCUA's proposal in particular, and to serve as an aggregator of industry-wide thoughts, comments, questions, and concerns regarding the proposal.

The blog will allow credit unions and state credit union leagues to air their concerns and share how the proposal will affect their operations. CUNA will also be updating the blog with the latest developments in its efforts to improve the outcome for credit unions regarding the proposal. 

For a link to the CUNA Risk-Based Capital Blog, calculators, and many more resources to help you better understand the rule and take action before the May 28 comment period is over - visit the League's Risk-Based Capital Resource Page.

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Participating credit unions in CUSC of Alabama receive rebate & dividend

Thanks to participating credit unions, CUSC of Alabama completed another successful year. As a result, the board of directors voted for a third consecutive year to give back a portion of earnings to credit unions and shareholders.

The board approved patronage rebates to both issuers and acquirers based on 2013 completed transaction volumes. The rebate for both issuers and acquirers was 30 percent of net income before taxes (NIBT), for a total payout of 60 percent.

In addition, 10 percent of 2013 NIBT before rebates was distributed out of retained earnings as shareholder dividends. This equated to 70 percent of 2013 NIBT being given back to the credit unions which are the backbone of this network.

Due to the CUSC board of directors lowering its fee structure by $0.10, the rebates have slightly decreased from 2012. This allowed acquiring credit unions to receive extra income at the point of transaction.

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LSCU's best kept secret...the LSCU Facebook page

Become a fan of our Facebook page to:

  • keep up with what the League is doing
  • access important industry information
  • see pictures of your peers and you from various LSCU, chapter, and credit union events
  • learn about upcoming LSCU events such as education workshops, free webinars, and chapter events
  • see cute photos and enjoy light-hearted humor

Most importantly, connect with us so we can connect with you. Don't be shy, stop by our page today and say hi. And, we won't mind if you share this secret with all of your friends, colleagues, and acquaintances.

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In This Issue
Monday Edition
President's point
New risk-based capital blog from CUNA
Participating credit unions in CUSC of Alabama receive rebate & dividend
LSCU's best kept secret...the LSCU Facebook page
LSCU & Affiliates Media

Florida State GAC
The Florida State GAC wrap up video looks at the more than 30 lawmaker visits, topics discussed and the sessions over the two days including the regulator roundtable. NCUA Region III Director Myra Toeppe talks about her strategy in her first year. 

President's 1Q Video
LSCU president/CEO gives his first quarter video for 2014. He looks at the CUNA GAC, tax reform, and the new Southeast Credit Union Conference. He also talks about the 2014 Dues Rebate.

Upcoming Event Deadlines
TODAY Last Day to Register for Spring Regulatory Compliance Update - Tallahassee, FL
April 9 Last Day to Register for Spring Regulatory Compliance Update - Birmingham, AL
Extended to April 22 Last Day for Early Bird Rate for OFAC & Bank Secrecy Act School – Birmingham, AL

Extended to April 22 Last Day for Early Bird Rate – Disaster Recovery Conference – Mobile, AL

Extended to April 24 Last Day for Early Bird Rate – Disaster Recovery Conference – Jacksonville, FL

Upcoming League Events
April 8 Spring Reg. Compliance Update FL
April 9 Compliance, Account Titling & Ownership
April 10 Spring Reg Compliance Update AL
April 15 Managing CUs' BYOD & COPE Policies
April 16 Official Demand for Member Funds
April 17 Examination Findings of the CFPB
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