LSCU eSignal Weekly
LSCU eNews Weekly September 26, 2011
home button press room button contact us button
LSCU eNews Weekly
In This Issue
LSCU Headlines
President's Point
NCUA board approves definition for "net worth"
Hike the Hill results in two MBL co-sponsors, more may follow
CUNA seeks comment on agency corporate changes
Governmental Affairs News
This week in Alabama politics: Alabama CUs 'Hike the Hill,' Gov. Bentley could call special session
Compliance Corner
League InfoSight highlight: Your opinion counts, complete the 2011 InfoSight User Survey
IRS letters challenging credit union tax exemption
Compliance calendar and training
Education News
Last chance for Development Conference early bird registration Sept. 30
Participate in a sunrise cruise or home & garden tour at 2011 LSCU Development Conference
Education Calendar
LEVERAGE News
Register for CMG’s Online Discovery Conference, become an avatar
News from You
Alabama Telco CU nationally recognized by CUES Golden Mirror Awards
Envision CU participates in golf tournament for awareness of ovarian cancer
EMPLOYMENT
View available credit union jobs
In This Issue
spacer
eNews Links
Forward to a Friend
Print Version
Unsubscribe from
LSCU eSignal Weekly
Be sure to follow LSCU:
Social Networking Links
Patrick La Pine on Twitter
eNews Links
spacer
LSCU Headlines

President's Point

This past week we had our most successful Hike the Hill (HTH) in Washington, D.C. since I’ve been with the League. We had our best credit union turnout with many credit union officials making visits that haven’t been part of previous Hike The Hill events in the past. A few questioned holding our HTH at the same time as the NAFCU Congressional Caucus. This turned out to be a good decision. We had a number of credit unions in town for the Caucus that normally do not attend our Hike The Hills which made lawmaker visits with the League. There were a few non-affiliates from both states who got a first-hand look at our collective lobbying efforts as well. I hope they came away impressed with our preparedness and leadership during these visits.

Three of our congressional members from Florida gave us solid commitments that they would co-sponsor the credit union member business lending (MBL) legislation, H.R. 1418. By the time we arrived back home, Reps. Kathy Castor (D-FL) and Allen West (R-FL) had put their names on the bill, as promised. This brings the number of co-sponsors from our states to eight including Sen. Bill Nelson (D-FL), a co-sponsor of S. 509, the Senate version of the same legislation. Our Governmental Affairs team is following up with other House members that said they would consider co-sponsoring the legislation but required additional information before making a final decision. Our meetings with our U.S. senators went well with Alabama credit unions having a very good visit with Sen. Jeff Sessions (R-AL) and Florida credit unions with Sen. Nelson’s office.

(l to r) John Deese, CEO, PBC CU, Art Wood, CEO, Railroad and Industrial CU, Mary Wood, CEO, Florida West Coast CU, Rep. Allen West (R-FL), Pat Mason, CEO, Sun CU, and Patrick La Pine, CEO, LSCU.

While it’s good to have some new co-sponsors, we are far from satisfied. Currently there are no representatives or senators from Alabama that have co-signed on to House or Senate legislation. To that end, we will be looking to redirect more of our Governmental Affairs resources to increasing or advocacy efforts with our congressional delegations in both states with an emphasis on Alabama. With the chair of the House Financial Services Committee, Spencer Bachus (R-AL), and ranking member of the Senate Banking Committee, Richard Shelby (R-AL), from Alabama, we need to strengthen our relationships and influences with these offices, among others. One thing we will be doing is spending more time with our federal delegation.

Our advocacy team (including me) will make more trips to Washington, D.C. while also lining up more in-district visits. This is important since we currently have 37 members of Congress in our two states. That number will grow to 39 following the 2012 elections due to redistricting in Florida. We need to ensure that we are in a position to have good representation across both states on credit union legislation. Additional changes are being considered as well to strengthen our federal efforts in conjunction with CUNA.

I hope more of you will consider taking part in our grassroots lobbying events. If you can’t make it to Washington, try to attend the Florida or Alabama State Government Affairs Conferences in 2012, an in-district meeting, or host a legislative night for the Chapter. We need to continue to visit with them and provide real world examples of how credit union legislation will help our membership. Sometimes it seems like a slow process, but after last week, we can see progress is being made.

I welcome your thoughts and feedback. [ Return to Top ]

NCUA board approves definition for "net worth"

The NCUA board met on Sept. 22 and it approved a final rule on the definition of “net worth,” 208 assistance, and other provisions that CUNA and others had opposed. The less than sterling provisions require credit unions to deduct the amount of any bargain purchase gain from the net worth of the target credit union prior to a merger. It is believed this aspect of the final rule will result in a lower post-merger net worth and therefore, could potentially discourage mergers. The NCUA staff clarified that the rule does not affect mergers that have already been completed. Additionally, it may take until the end of this year, or even early 2012, for the rule to actually take effect. The NCUA has been asked to delay its effective date.

The board also reviewed reports on the National Credit Union Share Insurance Fund (NCUSIF) and the Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund). The discussion centered on whether the NCUSIF might exceed the normal operating level at the end of 2011. If that occurs, excess funds could be re-routed to the Stabilization Fund, which could help reduce credit unions’ overall liability to that Fund. Finally, the board approved delegation of authority to the director of the Office of Corporate Credit Unions related to the corporate credit union rule

To read a full summary of the board meeting, click here. More NCUA board summaries can be found on the LSCU Regulatory Resources website.

If you have questions or comments about this report, contact LSCU VP, Regulatory Affairs Bill Berg at 866.231.0545 ext.1028 or Director, Compliance Scott Morris at ext. 2165. [ Return to Top ]

Hike the Hill results in two MBL co-sponsors, more may follow

The LSCU Hike the Hill came at a perfect time. The U.S. Congress is looking at ways to stimulate the economy and put people back to work. Credit unions from Alabama and Florida talked to their members of Congress about a variety of topics including pending legislation to raise the member business lending (MBL) cap.

“Right now all you hear is ‘jobs, jobs, jobs,’” John Neusaenger, president of Orlando (Fla.) FCU told the CU Journal. “And the best part of it is, it won’t cost a thing. It’s a tax-free jobs bill.”

Alabama legislators heard not only from credit unions, but also Terry McDaniel, a small business owner that could only get a loan from Listerhill CU in Muscle Shoals. However, when he wanted to expand, Listerhill could not approve his loan because of the 12.25-percent cap. The Alabama delegation thank McDaniel for coming to speak with them.

Following the visits, Rep. Kathy Castor (D-FL) became the sixth representative from Florida to co-sponsor H.R. 1418, legislation to raise the MBL cap from 12.25 percent to 27.5 percent. The other co-sponsors from Florida include Reps. Gus Bilirakis (R-FL), Jeff Miller (R-FL), Bill Posey (R-FL), Dennis Ross (R-FL) and Bill Young (R-FL). A number of other representatives expressed interest in signing on to H.R. 1418. House Financial Services Committee Chairman Spencer Bachus (R-AL) told credit unions that there will be a sub-committee hearing on H.R. 1418 on Oct. 12.

In Alabama, Sen. Jeff Session's (R-AL) office asked for more information on MBL and the lobby session included great discussion on how raising the cap would pump significant money into the marketplace without costing taxpayers a penny.

Credit unions also talked about preserving the tax-exemption among other topics. [ Return to Top ]

CUNA seeks comment on agency corporate changes

The comment  call is based on the proposed changes amending NCUA regulations to exclude Central Liquidity Facility (CLF) stock subscriptions from the definition of net assets.

The proposal also clarifies that violations of the weighted average life of a corporate's assets are not subject to capital category reclassification. The proposal would require the preparation of investment action plans for such violations.

These changes were made to "relieve regulatory burden where warranted" and ease access to liquidity, the NCUA has said.

CUNA in its comment call asks for comment on several aspects of the technical changes, including specific changes to the "net asset" definition and the inclusion of credit rating alternatives.

CUNA is accepting comments until Sept. 30. For the full CUNA comment call, click here. [ Return to Top ]

Governmental Affairs News
This week in Alabama politics: Alabama CUs 'Hike the Hill,' Gov. Bentley could call special session

Alabama Credit Unions Hike the Hill to Washington, D.C.
Representatives from credit unions across the state participated in LSCU’s annual Hike the Hill last week, and overall, it was a tremendous success. Meeting with members of Congress or staff in seven of Alabama’s nine House and Senate districts, credit union CEO’s, board members, staff, and members were able to promote the proposed increase in the Member Business Lending Cap of 27.5 percent of total assets.

Rep. Spencer Bachus (R-AL), Chairman of the House Committee on Financial Services, was able to share special news with the group when he announced that H.R. 1418, the legislation to increase the MBL cap, would receive a hearing in a subcommittee on Oct. 12. This is an important first step in seeing this much-needed legislation passed once and for all. Other members of Congress who met with Alabama credit unions included Sen. Richard Shelby (R-AL), Sen. Jeff Sessions (R-AL), and Rep. Mo Brooks (R-AL).

Gov. Bentley Could Call Special Session in November
If Jefferson County officials can reach an agreement on what to do with the widely publicized sewer system debt issue, Gov. Bentley could call a special session as soon as November. However, Bentley stressed, as he has with other issues in the state, that he will not call the Alabama Legislature to Montgomery if there is the slightest chance the agreement would fail to pass.

An agreement could be reached as early as this week. If reached, the local legislation would need to be advertised for a period of four weeks before the legislature could vote in Montgomery.

Lucy Baxley to Seek Re-Election, Judge Tommy Bryan to Run for Alabama Supreme Court
The last remaining Democrat to hold statewide office in Alabama announced her intentions to seek re-election as president of the Public Service Commission. Lucy Baxley is set on running for a second term in what will be a key race for Republicans and Democrats in 2012. As of now, Baxley has one announced Republican opponent, but more are expected to enter the race.

Alabama Court of Civil Appeals Judge Tommy Bryan has announced that he will be running for a seat on Alabama’s Supreme Court in 2012. He is currently serving his second term on the appeals court and will be seeking the seat currently held by Justice Thomas Woodall. Woodall will not be running for another term. [ Return to Top ]

Compliance Corner
League InfoSight highlight: Your opinion counts, complete the 2011 InfoSight User Survey

The current edition of the League InfoSight newsletter magnifies the importance of the 2011 InfoSight User Survey. The survey gives the League insight into how you prefer InfoSight to provide you information. As we continue to develop and enhance InfoSight—your online compliance resource—we need to know how you utilize InfoSight.

We also need to know what you:

  • Need in InfoSight
  • Like about InfoSight
  • Dislike about InfoSight
The survey will be available through Oct. 21, 2011.

Visit the current edition of the League InfoSight Newsletter to complete the survey.

For more helpful reminders and tips, view the League InfoSight newsletter by clicking here. It is a password-protected area. Member credit unions that do not have a password, may click here to sign up for one. An active email account and a password are required. To log in to InfoSight, enter your email and password in the InfoSight login block (see graphic below) located in the upper right of any of the LSCU web pages.

  [ Return to Top ]

IRS letters challenging credit union tax exemption

Some credit unions have received a letter from the IRS that challenges their tax exempt status. CUNA and the LSCU have been communicating with the IRS to determine why certain state and federally chartered credit unions have been receiving letters from the IRS’s Exempt Organization Division, stating they are no longer considered tax exempt organizations. At this point, the IRS has asked for our assistance gathering information as to which credit unions (both state and federally chartered) have received these letters.

If your credit union received one of these letters, contact LSCU VP, Regulatory Affairs Bill Berg at 866.231.0545, ext. 1028.

[ Return to Top ]

Compliance calendar and training

Compliance Calendar

October 2011

For the complete list of calendar dates and compliance trainings, visit the LSCU Compliance Calendar

*Note - To view InfoSight content, it is required to log in to the www.lscu.coop for access.

[ Return to Top ]

Education News
Last chance for Development Conference early bird registration Sept. 30

Don't miss the special savings for registering early for the upcoming Development Conference, Nov. 1-4, 2011. The early bird registration fee is available through Sept. 30.

Get inspired at a conference built for you! The LSCU Development Conference’s main focus is its attendees. The Grand Hotel Marriott Resort, Golf Club and Spa in Point Clear, Alabama, provides an exceptional backdrop for four days of first-class speakers, an intimate place to network, and educational breakout sessions from industry experts. Plus, there is plenty of exhibit hall time so you can talk with our exhibiting companies to find solutions to help your credit union. Don’t miss this exclusive event that will provide valuable information in a one-on-one environment!

For more information, including speaker and session information, click here

To register for the conference, visit the Development Conference web page under Education on the LSCU website at www.lscu.coop. [ Return to Top ]

Participate in a sunrise cruise or home & garden tour at 2011 LSCU Development Conference

Sunrise Sailboat Cruise

Come wake up early and experience the beautiful morning sunrise over the bay as you sail out with almost 50 passengers on the Joshua. You'll enjoy a scenic cruise on historic Mobile Bay along with a Continental breakfast. Experience this quiet outing and the beauty of the bay. 

This is a separate ticketed event of the conference. 

 

Bellingrath Gardens & Luncheon

This off-site event begins with an entertaining drive to Bellingrath Gardens giving the history, legend, and lore of this fascinating area. Your visit coincides with the beautiful fall floral display when the gardens are ablaze with color. You will have time to explore 65 acres of floral pageantry and visit the former estate of Coca-Cola pioneer,  Walter Bellingrath. The 10,500 square foot interior features the Bessie Morse Bellingrath Collection of 19th  century fine antiques, rare porcelains, china, and silver.

The Bellingrath Home has appeared on the A&E network’s episode of America’s Castles and Bellingrath Gardens is ranked as one of the top public gardens by Southern Living Magazine. After touring the gardens and home, you will enjoy a delicious lunch in the private Magnolia Room.

This is a separate ticketed event of the conference.

To register for the 2011 LSCU Development Conference and these off-site events, click here. [ Return to Top ]

Education Calendar

Upcoming Events:

Tuesday, September 27
Identifying & Managing Data Leakage & Hacking Threats
3 to 4 p.m. EST - Webinar

Wednesday, September 28
Mandatory Compliance Training Series: Fair Lending: Top Issues & Examiners' Focus
3 to 4 p.m. EST - Webinar

Tuesday, October 4
Responding to Official Demands for Member Funds
3 to 4 p.m. EST -Webinar

Click here to view complete calendar of events.

[ Return to Top ]

LEVERAGE News
Register for CMG’s Online Discovery Conference, become an avatar

The CUNA Mutual Group's online Discovery is a web-based equivalent of a face-to-face conference without the associated expenses, or time away from the office. On the day of the conference, participants won’t pick up a badge or registration packet. Instead of registration packets, they will create a profile and virtual business card, and then choose an avatar character to represent themselves throughout the day.

“Conference participants will interact in much the same way they would if they were attending a face-to-face conference,” said Senior Vice President, Marketing & Credit Union Strategy Steve Johnson. “Participants will download virtual business cards, click through the virtual Expo Center and chat or message with other conference attendees,” he added.

Take a tour of the virtual conference, and then register for the event. More than 1,100 credit union professionals have registered to date.

“Participants can learn more about the event by following CUNA Mutual Group's Online Discovery onTwitter, and joining in the conversation by tweeting with the hashtag #CUOnline,” Johnson said.

The conference offers 13 credit union-focused sessions, networking opportunities, chat rooms and message boards, and an exhibit hall and prizes. Also, registration guarantees access to conference materials for up to nine months at no expense.

Online Discovery is CUNA Mutual Group's free online educational resource for credit union leaders.  [ Return to Top ]

News from You
Alabama Telco CU nationally recognized by CUES Golden Mirror Awards

The Credit Union Executives Society (CUES) annually honors exceptional marketing campaigns with the CUES Golden Mirror Awards. Credit unions are eligible to submit entries for 27 categories.

This year Alabama Telco Credit Union won two awards within their credit union asset category: Second Place for Coordinated Campaign with a Home Equity Line of Credit promotion and a Merit Award for their “Dump Your Bank” spot in the Radio category.

“Winning any award is great, but winning a Golden Mirror Award is a distinct honor for credit union marketing professionals," said Alabama Telco President/CEO, Linda Cencula. "The judges are extremely tough, and have been known to not give an award in a category if they feel none of the entries are worthy."

To view the full list of CUES Golden Mirror Award categories and winners, visit their website by clicking here. [ Return to Top ]

Envision CU participates in golf tournament for awareness of ovarian cancer

From L-R: Veronica Rojas, Envision CU; Julie Artino, Envision CU; Jerin, Chiles High School; Steven Nazaruk, Tallahassee FCU president;  Rebekka Wade, Envision CU; Jessica Johnson, Envision CU.

Ladies from Envision Credit Union put their best club forward for raising awareness of ovarian cancer during the Teal Magnolias Ladies Only Golf Tournament. Organized by volunteers of the local Big Bend Chapter of National Ovarian Cancer Coalition (NOCC), this event celebrated ovarian cancer survivors, remembered those lost to ovarian cancer, and increased awareness about ovarian cancer.

The ladies had their own personal gentlemen caddies to assist. Proceeds of the tournament go to benefit the chapter’s awareness and education programs.

For more information about the NOCC or ovarian cancer, click here. [ Return to Top ]

EMPLOYMENT
View available credit union jobs

To view the available jobs on the LSCU homepage, visit the LSCU CU Jobs Center. [ Return to Top ]

footer
 
Twitter Facebook YouTube