May 12, 2014
Monday Edition
President's Point

Last week I attended the National Credit Union Roundtable in Seattle. The largest 150 credit unions are invited to attend this annual event along with the CEOs of CUNA and NAFCU, league presidents, and other system partners like CUNA Mutual Group and CO-OP. The makeup of attendees was about 75 percent credit union CEOs and about 25 percent league presidents and system partners. We had five credit unions from our two states that included Joe Brancucci from GTE Financial, Tom Dorety from Suncoast, Bob Fisher from Grow Financial, Terry West from VyStar, and Larry Scott from Campus USA. In all, we had about 12 credit unions that were eligible to attend, based on asset size.

The two-day agenda included significant time for discussion on national issues of importance. We discussed three very interesting questions that the group was also surveyed on: 1) Should there be a greater strategic partnership between CUNA and NAFCU? Overwhelmingly, credit union CEOs (84 percent) and league presidents/system partners (84 percent) said yes; 2) Should credit unions have choice with regard to the CUNA/League membership? Almost two-thirds of CEOs said yes (71 percent), while league presidents/system partners were split (50 percent); 3) Should there be more consolidation/collaboration among leagues? Again, overwhelmingly CEOs (80 percent) and league presidents/systems partners (81 percent) said yes.

While most in attendance didn’t find the results too surprising, what I will say is that we need to have more discussion on these critical system structure issues. There were more than 115 people in attendance at the Roundtable, so this is a very good sampling of the largest credit unions and system leadership. We need to sit down and really look at our industry, as a whole, and see where we can collaborate more and reduce redundancies, especially among CUNA/NAFCU and the state leagues. This might entail hard negotiations and uncomfortable conversations, but they are much needed. Our industry is evolving and the trade associations that represent credit unions need to make sure we’re evolving, as well.

We were given presentations on payments, another area where collaboration can reduce expenses, and big data. There was talk about the next CUNA CEO which really played back into the national issues forum. The industry needs to talk about the three questions above as CUNA searches for its next CEO. The full CUNA board and search committee met in Seattle in conjunction with the Roundtable. It is my understanding that a set of characteristics of what the next CUNA CEO should look like was developed and the “official” launch by the search firm of Russell Reynolds should be forthcoming in the next couple of weeks.

There was also much discussion both on and off the record regarding CUNA and NAFCU merging. I think we all agree with the departure of Bill Cheney, now is the perfect time for a real and significant exploration of this possibility.  I personally spoke to both CUNA and NAFCU’s chairmen, voicing my support for such a meaningful dialogue.

Like many events like this, the networking opportunities with colleagues and credit unions were just as beneficial as the sessions.  I would strongly encourage all credit unions that are invited to the National Credit Union Roundtable to attend next year.  The location has not yet been determined, but the dates will be May 3-5, 2015. Mark it down on your calendar now so you can take part in discussions and networking that is greatly beneficial to the future success of the credit union system.

Where’s Patrick: This week I will be splitting my time between Tallahassee and Central Florida. I, along with members of our management team will be making some credit unions visits/presentations in Central Florida over three days. To see my tentative schedule for the next two weeks, click here.

Visit the LSCU YouTube channel to view the President's Quarterly video.

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NCUA RBC listening sessions are filling up fast

The NCUA listening sessions with Chairman Debbie Matz are open to 150 attendees. The June 26 session in Los Angeles already has 76 registrants, 101 have registered for the July 10 session in Chicago, and 87 have registered for the final listening session in Alexandria, Va.

"The NCUA is hosting the sessions as a result of pressure from CUNA and others to provide a forum for credit unions to speak directly with the agency regarding the proposed rule," CUNA Deputy General Counsel Mary Dunn said. 

The LSCU will be attending the session in Chicago and the session in Alexandria. Individual credit unions are encouraged to attend, as well.

The NCUA proposal would make changes to Prompt Corrective Action rules that would replace existing risk-based net worth requirements with new risk-weighted asset and capital requirements. The rule would apply to federally insured "natural person" credit unions with more than $50 million in assets.

To sign up for the NCUA sessions click here. For more information and to see a video presentation on RBC, visit the Leagues Risk-based Capital Resource Page.
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Senators call for quick passage of privacy notification tweaks

This week Sens. Sherrod Brown (D-OH) and Jerry Moran (R-KS) called on colleagues to follow up on the release of a new Consumer Financial Protection Bureau privacy notification proposal by supporting their own bill, The Privacy Notice Modernization Act.

The privacy notice bill would eliminate a requirement that privacy notices be sent on an annual basis. It would instead allow the notices to be sent only when the privacy policy of a financial institution has changed.

It would also require credit unions and other financial institutions to make their privacy policy always accessible in some form in order to qualify for the bill's exemption from sending annual privacy notices.

Moran urged his Senate colleagues to support swift passage of the bill so credit unions and banks can better serve the public and make privacy notices readily available without filling mailboxes with duplicative information.

The Senate bill currently has 63 bipartisan co-sponsors, including Sens. Bill Nelson (D-FL), Marco Rubio (R-FL) and Jeff Sessions (R-AL).

Click here to read the complete CUNA News Now article.

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Nominations open for 2015 Wegner Awards

Credit union supporters are encouraged to nominate individuals and organizations for the Herb Wegner Memorial Awards to be presented by the National Credit Union Foundation (NCUF). Winners will be honored at NCUF’s annual awards dinner on March 9, 2015 in conjunction with the CUNA GAC in Washington, D.C.

Nominations need to be made by Thursday, July 31, 2014 for the following awards:

  • The Lifetime Achievement Award
  • The Individual Achievement Award
  • The Outstanding Organization/Program Award

Nominations can come from individuals and/or organizations. The following are the three steps needed to make a nomination:

  1. Complete the Wegner Awards nomination form on the NCUF website.
  2. Gather at least five letters of recommendation citing examples of the nominee’s achievements relevant to the award criteria.
  3. Send the nomination form and recommendation letters electronically to NCUF by July 31, 2014.

Questions about the Wegner Awards can be directed to Danielle Brown at 608.556.2406.

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In This Issue
Monday Edition
President's Point
NCUA RBC listening sessions are filling up fast
Senators call for quick passage of privacy notification tweaks
Nominations open for 2015 Wegner Awards
LSCU & Affiliates Media

Risk-Based Capital Presentation
The League is holding risk-based capital meetings across both states ahead of the May 28 NCUA comment due date. This presentation is perfect to show to staff and boards.

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.

Upcoming Event Deadlines
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
July 1 Last Day for Early Bird Rate – Southeast Supervisory Committee Conference – Point Clear, AL
July 15 Last Day to Register - LSCU BSA Essentials & Advanced Workshops - Mobile, AL
July 15 Last Day to Register - LSCU BSA Essentials & Advanced Workshops - Huntsville, AL
Upcoming League Events
May 13 - SAS Credit Union Conference
May 13 - Board vs Supervisory Responsibilities
May 14 - Auditing Your Loan Portfolio
May 15 - How to Avoid Lender Liability Claims
May 20 - Disaster Recovery Conference, Mobile AL
May 20 - OFAC & BSA Basic & Advanced School, Birmingham, AL
May 20 - New ACH Security Requirements
May 21 - OFAC & BSA Basic & Advanced School, Birmingham, AL
May 21 - Increasing Regulatory Requirements
May 22 - Disaster Recovery Conf, Jacksonville FL
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