LSCU eSignal Weekly
LSCU eNews Weekly October 24, 2011
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LSCU eNews Weekly
In This Issue
President's Point
Make Bank Transfer Day work for you
LSCU Top Headlines
This week's top League headlines
Governmental Affairs News
This week in Alabama politics: More budget cuts, redistricting concludes
This week in Florida politics: Interim committee week ends, budget deficit close to $2 billion
News from the Hill: House considering bills under suspension, committee hearings on tap
Compliance Corner
League InfoSight highlight: Median Income for Bankruptcy
Compliance calendar and training
Cooperative Initiatives News
eCO CU presents check to Children's Hospital of Alabama
Costa Rican Study Tour touches down in Alabama
Applications for 2012 fundraisers now available for CO-OP CMN Miracle Match
Education News
LSCU Development Conference offers great golf experience
LSCU's educational webinar lineup for 2012
Education Calendar
LEVERAGE News
Automated compliance execution provides peace-of-mind
News from You
Pen Air FCU finances local development, 350 expected jobs
TMH opens new branch in Tallahassee on ICU Day
EMPLOYMENT
View available credit union jobs
In This Issue
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President's Point

Make Bank Transfer Day work for you

The amount of positive press that credit unions are getting right now is unprecedented. I don’t know of a time where, collectively, our industry has gotten more stories written about them. The new bank fees have customers upset and newspapers, along with TV and radio stations, are doing stories about it in every market in the country.  We have seen just as many stories in our local Alabama and Florida markets. Visit the LSCU Press Room to see some of them.

It appears that this goodwill toward credit unions will continue for the foreseeable future with national “Bank Transfer Day” coming up on Nov. 5. The movement was started by Kristen Christian of Los Angeles. She was dissatisfied with Bank of America's new $5 fee on debit cards, so she created an event on Facebook called “Bank Transfer Day.” The event invites people to close their accounts at big for-profit banks and move their money to credit unions by Nov. 5, 2011. This is a viral movement that has gone from Facebook all the way to network television with ABC doing a story last week.

How can credit unions take advantage of “Bank Transfer Day?” The League will do what it can to assist credit unions in publicizing this day and the credit union difference. We have talked with a number of reporters about this day and will continue to promote it among our local media. We encourage all credit unions to reach out to their local media contacts. With this movement gaining steam virally, it’s a good idea for credit unions to continue to push it out through their websites, Facebook pages, and Twitter. The more it keeps its social media feel, the more it will resemble a grassroots movement and not a corporate marketing campaign.

The League does have some resources available to credit unions. We have a sample press release where credit unions basically just need to fill in the blanks and send to media, or they can use it as a template to get started. We have talking points available to help with interviews or informing your staff, plus an FAQ sheet. There are simple ideas on the document, including extending hours on Nov. 5 or scheduling a community education event for that day. The League will send credit unions a web banner later this week that they can use. Visit the LSCU Bank Transfer Day page for all of these resources.

We’ve heard from some credit unions that they are going to treat the day like International Credit Union Day and have a celebration. What’s important is that all credit unions recognize the opportunity and take the time to formulate a plan. More than 59,000 people on Facebook stated that they would take part in “Bank Transfer Day.” This could be a real opportunity to be something more than a simple grassroots movement. But, if your credit union is on the sideline doing nothing that day, you most likely are missing a great opportunity. The banks have dropped this in our laps, we need to take advantage. Momentum is on our side right now.

I welcome your thoughts and feedback.

  [ Return to Top ]

LSCU Top Headlines
This week's top League headlines

Florida bill filed to stop banks from charging for debit cards
Earlier this week, State Rep. Jeff Clemens (D-Lake Worth) filed H.B. 375, a bill which would prevent any state- or federally-chartered financial institution in Florida from charging a fee associated with the use or holding of a debit card by a consumer.Click here for more information.

President Obama nominates Carla Decker to NCUA board
On Oct. 20, President Obama nominated Carla M. León-Decker to be a member of the NCUA board. Senate source say a Decker hearing is possible in November maybe Thanksgiving week. Decker was one of three nominations that were announced by the White House. Click here for the complete story.

McKechnie to lobby for LSCU; audio podcast guest on Development Conference
On Nov. 1, the League will bring Total Spectrum Senior Vice President John McKechnie on to help with federal lobbying among other things. McKechnie will speak at the LSCU Development Conference and gives a preview on a new audio podcast. Click here to check out the audio podcast. Click here for more information about McKechnie assisting LSCU with lobbying in Washington, D.C.

FREE Town Hall Meeting webinar with Debbie Matz on Nov. 9
Be sure to join this free webinar featuring updates on the resolution of the corporate credit union system, the health of the Share Insurance Fund, the progress of NCUA’s Regulatory Modernization Initiative, and an outlook toward the agency’s 2012 budget. Click here to register.

NCUF seeks nominations for three board seats
To find out more about the board seats or to apply, click here. The deadline to apply is Oct. 28.

American Idol winner Hicks to open 2012 GAC with concert
The Credit Union National Association (CUNA) announced on Oct. 19 that American Idol star Taylor Hicks will perform at the 2012 Governmental Affairs Conference (GAC) opening concert. Click here for more details.

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Governmental Affairs News
This week in Alabama politics: More budget cuts, redistricting concludes

Governor Says More Budget Cuts Are Coming
Alabama Gov. Robert Bentley said that while drastic cuts were made in the state’s General Fund Budget for 2012, more are on the way. The General Fund is the source of dollars for the state’s non-education agencies like Corrections, Medicaid, and the Administrative Office of Courts.  The $263 million in one-time money was used to fill the gaps for the 2012 fiscal year and it will not be available for the next budget cycle. The state’s Education Trust Fund will also see cuts but nowhere at the level of the General Fund.  In fact, Gov. Bentley is confident that the Education Trust Fund will be fine even with the cuts.

As always, when officials in Montgomery talk about budget shortfalls our concern for credit unions is heightened dramatically. However, if the last legislative session is any indication, this legislature will have as close to zero interest in raising revenue as possible.

Former Chief Justice Considers Another Run
Judge Roy Moore has stated that he is considering another run at the position he was removed from eight years ago. He expects to decide by Jan. 1 whether or not to enter the Republican Primary for Chief Justice of Alabama.

Redistricting Meetings Conclude, Now the Hard Part
The statewide hearings on redistricting Alabama’s 140 House and Senate seats have concluded and now the committee must begin work on drawing the new lines. Most of the testimony heard at the meetings centered on keeping municipalities and counties whole, or adding additional minority seats in both chambers.  In Alabama, a Senate District consists of about 135,563 people and a House district has 45,521.

The hard work comes next.  How do you redraw the districts, keeping up with population shifts, and keep 140 elected officials happy? That is a tricky game that will be played over the next several months and the League will bring you updates as they are made available.

For questions regarding legislative affairs issues in Alabama, contact LSCU Director, Legislative Affairs Jason Cochran at 866.231.0545, ext. 2159. [ Return to Top ]

This week in Florida politics: Interim committee week ends, budget deficit close to $2 billion

LSCU Legislative Issues:

The Florida Legislature completed another interim committee week in preparations for the 2012 Legislation Session. Redistricting remained a hot topic at the Capitol, however, budget concerns, immigration, and Medicaid all received plenty of attention. The LSCU Governmental Affairs (GA) team continues to meet with legislative leadership to help move credit union priority issues. Remaining committee weeks are the weeks of Oct. 31, Nov. 14, and Dec. 5. The 2012 Legislative Session begins on Jan. 10 and is scheduled to run through March 9.

Grassroots Activity
As the 2012 Legislative Session moves closer, it remains important for grassroots advocates to do their part in helping the credit union movement go forward. Planning Chapter Legislative Nights, in-district meetings with your legislators, emails, and letters or phone calls all make a difference. The Governmental Affairs team is here to help you plan all grassroots activities, and any questions should be directed to LSCU Grassroots and Political Action Coordinator Andy Gonzalez at 866.231.0545, ext. 1010.

Florida Political News:

Actual Budget Deficit Close to $2 Billion
State economist Amy Baker last week advised the Senate Budget Committee that outlooks for the state’s budget are not good. Baker told the panel that the state’s economy, even if the country avoids a second recession, likely won’t produce enough tax revenue to maintain current funding levels. This could produce a state budget gap of almost $2 billion, and that’s being optimistic. “Our forecast is predicated on people starting to feel a little bit better, and spending a little bit more,” Baker said. There’s a 50-50 chance the U.S. economy could slide into a second recession depending on what Europe does to put its financial house in order, according to Baker, as reported by the Associated Press. Both Senate Budget Chairman JD Alexander (R-Lake Wales) and Senate President Mike Haridopolos (R-Melbourne) admitted they are “nervous” and “pessimistic” about the budget projections. Haridopolos added, “everything is on the table,” going as far as to mention potential state worker layoffs as a necessary remedy to plug the budget hole.

If you have any questions on any of the legislative issues mentioned above contact LSCU Director, Legislative Affairs Jared Ross at 866.231.0545, ext.1012. [ Return to Top ]

News from the Hill: House considering bills under suspension, committee hearings on tap

On Oct. 25, the House will consider additional bills under suspension and then begin consideration of H.R. 1904, the Southeast Arizona Land Exchange and Conservation Act. Later in the week, the House is expected to consider H.R. 2576, a bill to amend the Internal Revenue Code of 1986 to modify the calculation of modified adjusted gross income for purposes of determining eligibility for certain healthcare-related programs and H.R. 674, a bill to amend the Internal Revenue Code of 1986 to repeal the imposition of 3 percent withholding on certain payments made to vendors by government entities. There will be no votes in the House on Friday.

Committee Hearings
The League is following several hearings this week, including the following:

On Tuesday, the House Judiciary Committee will hold a hearing on H.R.3010, the "Regulatory Accountability Act of 2011," to reform the process by which federal agencies analyze and formulate new regulations and guidance documents.

Also on Tuesday, the House Energy and Commerce Committee Subcommittee on Commerce, Manufacturing, and Trade will hold a hearing on “Internet Gaming: Is there a Safe Bet?”

On Wednesday, the Joint Select Committee on Deficit Reduction will hold a hearing on “Overview:  Discretionary Outlays, Security and Non-Security.” Congressional Budget Office Director Douglas Elmendorf will testify. Also on Wednesday, the House Financial Services Committee will hold a full committee hearing of pending securities related legislation. 

On Thursday, the House Financial Services Committee Subcommittee on Financial Institutions and Consumer Credit will hold a hearing on "Proposed Regulations to Require Reporting of Non-resident Alien Deposit Interest Income." CUNA strongly opposes these regulations. A copy of CUNA’s comment letter to the IRS can be found by clicking here. A statement for the record of this hearing may submitted.

For questions about the News from the Hill update, contact LSCU SVP, Governmental Affairs Will McCarty at 866.231.0545, ext. 2137.

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Compliance Corner
League InfoSight highlight: Median Income for Bankruptcy

The current edition of the League InfoSight newsletter covers the Bankruptcy Code, and the various provisions included in the Code that could affect credit unions.

The Bankruptcy Code is contained in Title 11 of the United States Code. The Code includes various Chapters containing general bankruptcy provisions, case administration requirements, requirements concerning debtors and creditors of the bankruptcy estate, and finally provisions for the five different types of bankruptcy: Chapters 7, 9, 11, 12 and 13. Credit unions are generally only involved in Chapter 7 and Chapter 13 bankruptcies because those are the ones credit union members will usually file. However, with increasing member business lending, credit unions may eventually see more Chapter 11 bankruptcies.

To read more about provisions, and income guidelines of the Bankruptcy Code, visit the latest edition of League InfoSight.

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 ]

Compliance calendar and training

Compliance Calendar

November 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 www.lscu.coop for access.

    [ Return to Top ]

    Cooperative Initiatives News
    eCO CU presents check to Children's Hospital of Alabama

    From L to R: eCO Chief Operating Officer Kenny Minton; eCO Marketing Manager, Melissa Reeves; and eCO CEO, Joey Hand present Children's Hospital with a check for more than $16,000 at their annual radio-thon.

    eCO raised these funds during a month-and-a-half-long campaign called "Cash Bandits." eCO members, vendors, and employees gave generously to make this donation to the hospital possible. eCO Credit Union is proud to support Children's Hospital and the community!

    [ Return to Top ]

    Costa Rican Study Tour touches down in Alabama

    Costa Rican study tour participants at Alabama Telco Credit Union.

    The study tour participants included eight board members and six employees. During their week in Birmingham, they met with the management teams of America’s First Federal Credit Union, eCO Credit Union, Alabama Telco Credit Union, and Mutual Savings Credit Union.

    Throughout the week, the participants gained knowledge on how credit unions operate in the U.S., including information on regulation, the corporate credit union system, board governance, the shared branching network, attracting younger members, utilizing alternate delivery channels such as mobile banking, marketing and branding, incentive plans, and innovative products and services. The study tour also included an overview of the services offered by the League of Southeastern Credit Unions and the Statewide Image Campaign.

    Credit unions represented on the study tour were:

    • Coopenae is the largest credit union in Costa Rica and serves a community-based field of members but originally served teachers. The credit union has $650 million in assets, 76,000 members, 375 employees and 19 branches.
    • Coopeassemblea is the credit union for the legislative assembly (Costa Rican Congress). The credit union has $2 million in assets, 650 members and seven employees.
    • Coopeservidores serves government/public sector employees and has a closed field of membership.  The credit union has $480 million in assets, 60,000 members, 400 employees and 26 branches.
    • Coopealianza has an open field of membership and offices throughout Costa Rica. The credit union has $240 million in assets, 140,000 members, 500 employees and 50 branches.

    For more information on the LSCU's WOCCU partnership with Costa Rica, contact LSCU VP, Cooperative Initiatives Laura Vann at 866.231.0545 ext. 2181. [ Return to Top ]

    Applications for 2012 fundraisers now available for CO-OP CMN Miracle Match

    Applications are now available for the 2012 CO-OP Miracle Match, enabling credit unions to maximize their Children’s Miracle Network Hospitals fundraisers through the $1 million matching program from CO-OP Financial Services.

    “The credit union industry is model for all industries in its mobilizing for a charitable cause,” said CO-OP Financial Services President/CEO and member of the Board of Governors of Children’s Miracle Network Hospitals Stan Hollen. “We are entering our fifth year of offering CO-OP Miracle Match, and we are looking forward to again supporting credit unions in this important work in their local communities.”

    Established in November 2007, CO-OP Miracle Match is on track to distribute $1 million in matching funds to credit unions in 2011. The company expects to finish with 150 credit unions participating from 39 different states. Of the 2011 fundraising events, 42 of them are being held for the first time by their sponsoring credit union – a CO-OP Miracle Match record.

    CO-OP Miracle Match is managed by CO-OP Financial Services on behalf of its 3,000 member credit unions. The program awards $1 million in matching funds annually for Credit Unions for Kids events, proceeds of which go to local Children’s Miracle Network Hospitals. The credit union industry is currently the third largest contributor to Children’s Miracle Network Hospitals.

    For complete details on the program and to apply for 2012 matching funds, click here (click on “Miracle Match” in the top menu bar). [ Return to Top ]

    Education News
    LSCU Development Conference offers great golf experience

    Credit unions still have the opportunity to play in the LSCU Development Conference Children's Miracle Network Golf Tournament on Nov. 2. New this year, the golf tournament is open to credit unions that are not attending the Development Conference. For those in the Mobile and Pensacola area, it's a good opportunity to get out of the office for a few hours and help raise money for CMN.The Grand Hotel Marriott Resort, Golf club and Spa features two golf courses that are part of the Robert Trent Jones Golf Trail.

    There are plenty of contests and prizes for the golfers. There is a long putt contest before the tournament begins. Golfers can buy a $20 Superball package as well as buy those valuable mulligans. If you are in the Point Clear, AL area on the morning of Nov. 2, consider playing in the LSCU Development Conference CMN Golf Tournament. 

    Visit the LSCU Development Conference page to learn more and to register. Contact Southeastern Credit Union Foundation Executive Director Amber Tynan at 866.231.0545 ext. 1154 with any questions about the golf. [ Return to Top ]

    LSCU's educational webinar lineup for 2012

    Webinars are timely, effective, efficient, and convenient ways to provide professional development and training for employees. LSCU's webinars are created specifically for credit unions, including topics for compliance, lending, and frontline staff, and directors.

    Click here for the 2012 lineup of webinars.

    To register, visit the LSCU Events Calendar.

    [ Return to Top ]

    Education Calendar

    Upcoming Events:

    Monday, October 24
    SECUF Community Development Workshop
    8 a.m. to 4:30 p.m. EST
    GTE FCU -Tampa, FL

    Tuesday, October 25
    Lending to Members of Modest Means (Including Payday Lending)
    3 to 4 p.m. EST - webinar

    Wednesday, October 26
    BSA Training Workshop - Tuscaloosa, AL
    10 a.m. to 12:30 p.m. EST (Morning)
    1 p.m. to 4 p.m. EST (Afternoon)

    Click here to view complete calendar of events.

    [ Return to Top ]

    LEVERAGE News
    Automated compliance execution provides peace-of-mind

    In the past several months, LEVERAGE's priority has been to meet with credit unions of various asset sizes in Florida and Alabama to learn their biggest challenges. Unanimously, the answer was regulatory compliance. They shared that it was a true balancing act between increasing revenue and decreasing risk. Remaining up-to-date with all the regulations in order to be compliant is a struggle that most would prefer not to have.

    LEVERAGE recently launched its newest product, an automated compliance execution program called ComplyTrac. This program works directly with the credit union and its management team to assist in analyzing and loading regulatory policies and procedures.

    The program provides tremendous assistance with organizing, updating, and managing compliance programs and products through the automated software and control center. The gap analysis of existing policy programs is just the beginning. Putting together the program analysis for each regulation and policy is the next step. Putting an action plan together for each quarter is the final step to staying on track. This new way of reducing risk and time spent is a welcome relief.

    For more information, contact a LEVERAGE Business Development Consultant. [ Return to Top ]

    News from You
    Pen Air FCU finances local development, 350 expected jobs

    Pen Air Federal Credit Union has invested in infrastructure that will create jobs through a partnership offering financial assistance to the future Hyatt Place hotel development that will be connected to the Pensacola Gulf Coast Regional Airport in 2013.

    Innisfree Hotels (Sandspur Development, LLC), with financing from Pen Air Federal Credit Union, and other financing sources that include Navy Federal Credit Union, will develop 11.44 acres leased from the City of Pensacola. This development will include a future 127-room Hyatt Place hotel and make five separate parcels available for sublease.   The development of the hotel alone is expected to have an economic impact for more than 350 additional local jobs, with the potential of more than 1,000 jobs directly and indirectly associated with the development.  The businesses that sublease parcels will bring in additional employment opportunities for the area once fully developed.  Construction for the development has already begun and the Hyatt Place hotel portion is expected to be completed in the spring of 2013.

    Innisfree Hotels was founded in 1985 by Julian MacQueen, CHA/Founder & CEO.  He has directed the acquisition, development, sale and refurbishment of all properties in the Innisfree portfolio – representing more than $300 million in development, purchases, and financing.  The company has successfully managed hotels in Alabama, Tennessee, Arizona, Georgia, Texas, Kansas, Louisiana, and Florida.

    Click here for the complete news release. [ Return to Top ]

    TMH opens new branch in Tallahassee on ICU Day

    TMH FCU in Tallahassee opened a new branch on International Credit Union Day. TMH Chairman Al Parker made the first deposit.


    [ 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 ]

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