April 28, 2014
Monday Edition
President's point

We’re just about a month out from the deadline for the risk-based capital comment letters to the NCUA. Over the past two weeks we’ve held eight risk-based capital meetings across Alabama and Florida. We will be holding another meeting this week in Mobile and one in Montgomery next week. We’ve had good participation in the meetings and I hope that translates into good comment letters to the NCUA both from credit unions and the League.

We all agree that the proposed rule, as written, needs work. It if passes without any changes, it will have a negative effects on credit unions in the long run. The League is working hard to put as many resources together to make it easy to submit a comment letter. Collectively, as an industry, we have a goal of submitting more than 1,000 letters to the NCUA.

I understand that writing a comment letter can be intimidating, especially if you haven’t written them in the past. We’ve tried to make it as easy as possible. We have a Risk-Based Capital Resources webpage that has pulled information from CUNA’s and the NCUA's website. The resource page also has a sample comment letter from Alabama and Florida credit unions. These will give you a good starting point. Plus, CUNA has an easy comment letter on its website and we will have one on ours within the week. This week we will add a risk-based capital video that explains the rule and how to write a letter. This could be good to show your board before the comment letter due date of May 28.

When writing the letter, here are a few things to highlight: It’s important to show how this rule will affect your credit union. The 18-month implementation period is too short; especially considering banks will get nine years to implement Basel III. Let them know you don’t agree with this since you may want to alter your balance sheet composition to comply. Plus, the NCUA rule looks at credit risk, interest rate risk, concentration risk, among other risks. This is too much regulation. Again, banks only have to look at credit risk on Basel III. 

One other piece to this puzzle is Reps. Peter King (R-NY) and Gregory Meeks (D-NY) have put together a letter that will be submitted to the NCUA. We are pushing this to our two Congressional delegations. So far we have four representatives from Florida that will sign it and possibly two from Alabama. Banks sent a similar letter on the Basel III proposal and only got one House signature from each state. That says a lot about how our delegation feels about credit unions and the work we have done in building these relationships. We are also reaching out to Sen. Richard Shelby’s (R-AL) office to see if he would be willing to circulate a letter to his colleagues as well.

Some of you might be saying that this won’t affect you so you don’t need to send a comment letter. We are looking at the long-term for credit unions. Writing a comment letter will help ensure the operating environment down the road. You don’t know what tomorrow brings. Let’s work cooperatively to fill the NCUA’s inbox and mailbox with our thoughts on this rule and get changes made before it’s too late.

Where’s Patrick: This week I’m attending the Florida Executive Leadership program with 25 leaders from across the state. I’ll write about my experience next week. This week I also have our quarterly management team meeting and a CUVM-Ventelligence board of directors meeting. On Saturday I will be leaving for Seattle to attend the National Credit Union Roundtable, an invitation-only event held each year with the nation’s largest credit unions. To see my tentative schedule for the next two weeks, click here.

Watch the President's Quarterly video on the League's YouTube channel. 

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Florida Office of Financial Regulation reacts to La Pine's op-ed

Florida Office of Financial Regulation Commissioner Drew Breakspear wrote an opinion letter backing LSCU & Affiliates President Patrick La Pine's op-ed pushing for financial literacy.

Click here to view Breakspear's letter "Kids need to know the basics of finance" in Sunday's Tallahassee Democrat.

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McWatters nomination vote coming on Tuesday

The Senate Banking Committee is expected to vote next Tuesday on the nomination of Mark McWatters to the NCUA board. The committee will take action on federal agency nominations during executive session. Besides McWatters, there are also three Federal Reserve Board nominations and a Department of Housing and Urban Development nomination.

McWatters has been under consideration for the NCUA board since January. He will replace Michael Fryzel whose term expired in August, 2013. If approved by the committee, the nominations would go to the full senate for confirmation.

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CU Who's Who

Redstone FCU announces new senior assistant vice president of investments and insurance

Redstone Federal Credit Union based in Huntsville, AL, announced that Kevin A. Carroll is the credit union’s new senior assistant vice president and program manager of investments and insurance, and vice president of Redstone insurance services. Carroll has more than 26 years of experience in the financial industry. He earned his degree in economics from the University of Tennessee and is licensed in securities, as well as in life, health, variable contracts, property, and casualty insurance. He most recently served as managing director for Cool Springs Life LLC., in Franklin, Tennessee.

Carroll stated, “I’m excited by this opportunity to lead the growth of Redstone’s investment and insurance services.”  He continued, “Due to the loyalty of our members, we have an obligation to provide them with the ultimate financial solutions that they deserve and we take that responsibility seriously.”

Florida Baptist Credit Union announces new CFO

Leonard Murray has been named the new incoming CFO of the Florida Baptist Credit Union. Murray, a CPA, CITP (Certified Information Technology Professional) and CISA (Certified Information Systems Auditor), will head the team of MyFBCU customer service professionals dedicated to serving the credit union membership with excellence. Leonard will spearhead the rollout of MyFBCU Mobile Deposit/Mobile Banking, technological advances that represent a new level of accessibility of credit union services for members anytime and anywhere. This enables MyFBCU to serve members, on a 24/7 basis, and wherever geographically those members may be. 

Leonard said, "It is an exciting time to be coming on board. MyFBCU has a successful heritage of caring for its members through our main branch here in Jacksonville, our extensive shared-branch system, and also through our online "virtual branch" services. Now, as more and more members are engaging smartphones for so many daily purposes, we are pleased to be introducing our safe and secure MyFBCU Touchbanking App for iPhone and Android phone users."

 

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In This Issue
Monday Edition
President's point
Florida Office of Financial Regulation reacts to La Pine's op-ed
McWatters nomination vote coming on Tuesday
CU Who's Who
LSCU & Affiliates Media



Florida Financial Literacy Bill
In 2014, the Florida Legislature considered HB 367 and SB 212 which would require a half credit of financial literacy to graduate. Bill sponsors Sen. Dorothy Hukill and Rep. Heather Fitzenhagen talk about its need and how credit unions can help.


Alabama Credit Union Act Update
LSCU & Affiliates Director of Regulatory Advocacy Scott Morris goes over some of the important parts of the update to the Alabama Credit Union Act.

Upcoming Event Deadlines
May 2 Last Day for Early Bird Rate – SAS Credit Union Conference - Tallahassee, FL
May 19 Last Day to Register - LSCU Disaster Recovery Conference - Mobile, AL
May 19 Last Day to Register -  LSCU OFAC/BSA Basic & Advanced School - Birmingham, AL
May 21 Last Day to Register - LSCU Disaster Recovery Conference - Jacksonville, FL
June 18 Last Day for Early Bird Rate – LSCU BSA Essentials & Advanced Workshops – Mobile, AL
June 18 Last Day for Early Bird Rate – LSCU BSA Essentials & Advanced Workshops – Huntsville, AL
Upcoming League Events
April 30 - Risk Based Capital Meeting in Mobile
April 29 - Art-Science of Keeping Software Current
April 30 - How Board Can Protect Your CU
May 6 - Call Reports: Interpreting Changes
May 7 - ACH Challenges for RDFIs
May 13 - SAS Credit Union Conference
May 13 - Board vs Supervisory Responsibilities
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