May 30, 2014
Friday Edition
NCUA approves bank sale to Five Star CU

The NCUA approved the sale of Flint River National Bank to $260 million Five Star CU, based in Dothan, AL, on Wednesday. Flint River will close on May 30 and re-open on June 2 as Five Star CU. The 1,000 customers of Flint River automatically become members of Five Star on June1.

"This is a great deal for Five Star, the customers of Flint River and the Camilla, Ga., community," Michael Bell of Howard & Howard which is representing Five Star, told the CU Journal. "It is also a great deal for the credit union industry in general — affirming current innovations and driving new ones."

The deal, which began in September 2013, had five major hurdles to climb. In February, the FDIC, the OCC and Flint River shareholders approved the sale. In May the Alabama Credit Union Administration approved the deal. The NCUA was the last regulatory agency that needed to approve the sale.

Last year the Georgia Department of Banking and Finance approved a charter expansion for Five Star to include Georgia's Mitchell County. Flint River was valued at $23 million at the time the deal was signed.

This is the fifth deal involving credit unions acquiring banks that has been signed in the last two years.

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NCUA receives record number of letters on RBC proposal

The NCUA reported Thursday it has received more than 1,850 comment letters on the risk-based capital proposal, the highest total for any comment period. This tops the previous record holder, 1995's 1,300 comments on the corporate CU rule.

While CUNA and NAFCU do not hold much hope for NCUA pulling the current proposal, CUNA general counsel Eric Richard said NCUA now faces a "gargantuan task."

"They have a real obligation to respond to the different arguments made in all of the comment letters. If they fail to do that they will be vulnerable to a legal challenge," said Richard, recognizing there will be a great deal of overlap in points raised among all comment letters.

Richard explained that a key reason CUNA decided to be "so comprehensive" in its letter is because NCUA is legally required to "review and respond to these criticisms (of the proposal). When NCUA publishes the final rule in the Federal Register the agency has to include an explanation of why they made the decisions they did—which means they have to respond to all these main points raised (in the comment letters)."

Bill Hampel, CUNA SVP of research and policy analysis and chief economist, who will take over June 11 as CUNA interim president, added, "That puts substantial pressure on NCUA . . . making changes very likely."

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Hurricane tax free holiday begins this weekend

The start of hurricane season is right around the corner on June 1. Are you prepared? Beginning this weekend Floridians can get qualified hurricane preparedness supplies tax free.

Click here to view a complete list of items that are tax exempt Saturday, May 31 through Sunday, June 8. Then stock up and save.

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LEVERAGE announces new partnership with CRIF

LEVERAGE and CRIF Lending Solutions have announced a partnership to provide Alabama and Florida credit unions with a customizable indirect auto lending program. Auto lending is trending upward again and credit unions have great opportunities to grow their auto portfolios. This partnership provides LEVERAGE clients with a trusted name in auto lending.

CRIF Select specializes in key aspects of outsourced indirect and merchant lending. A division of CRIF Lending Solutions, CRIF Select, connects lenders, as well as their customers and members, to local auto dealerships through its state-of-the-art technology, call center support and outsourced loan processing services. CRIF Select’s complete suite of services allows lenders to do what they do best – lend.

Click here to visit the League Top Stories and read more the CRIF partnership. 

Contact a LEVERAGE business development consultant for more information on CRIF.

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CU happenings

Velocity Community CU donates $100,000 for the Jupiter Stadium improvement project
Jupiter Community High School (JCHS) is $100,000 closer to its goal of $800,000 to install a state of the art synthetic turf field for use by the school, the Jupiter Tequesta Athletic Association (JTAA) and the Jupiter/Tequesta community. Under this new business partnership, the stadium at JCHS will be renamed Velocity Community Credit Union Stadium for the next five years, along with significant support for the business education programs at the school.

Through this partnership, Velocity Community Credit Union will also provide financial education to students, create internship opportunities, and be the lead sponsor of the JCHS DECA Marketing Club. Support for the Warrior Spirit Store and Trading Post, along with strategic business planning for the athletic program, will also be part of this very exciting opportunity.

Alabama Telco CU expands business services team
Alabama Telco Credit Union, based in Birmingham, expanded its business services team with the hiring of Blake Watkins as the new business services loan officer. He brings with him over seven years of banking and management experience and was most recently employed as branch manager and portfolio manager for BBVA Compass Bank. Throughout Watkins’ eight years in the financial industry, his responsibilities have included outbound small business development, business and consumer lending, as well as business and consumer investment planning.

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In This Issue
Friday Edition
NCUA approves bank sale to Five Star CU
NCUA receives record number of letters on RBC proposal
Hurricane tax free holiday begins this weekend
LEVERAGE announces new partnership with CRIF
CU happenings
LSCU & Affiliates Media


2014 Alabama Cooperative Image Campaign Ad 
The LSCU Cooperative Image Campaign features a TV ad illustrating the credit union difference. Viewers are sent to www.betternameforbanking.com to learn more.



2014 Florida Cooperative Image Campaign Ad
The LSCU Cooperative Image Campaign features a TV ad illustrating the credit union difference. Viewers are sent to www.betternameforbanking.com to learn more.

Upcoming Event Deadlines
June 18 Last Day for Early Bird Rate – LSCU BSA Essentials & Advanced Workshops – Mobile, AL
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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
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June 3 - Improving Teller Performance
June 4 - Recover Unauthorized ACH Withdrawals
June 6-13 - SE CUNA Management School
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