LSCU eSignal Weekly
LSCU eNews Weekly May 14, 2012
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LSCU eNews Weekly
In This Issue
President's Point
Shared branching valuable for members
LSCU Top Headlines
This week's top League headlines
Governmental Affairs News
This week in Alabama politics: Remaining session schedule, public deposits
This week in Florida politics: Governor's Chief of Staff resigns, legislative survey yields results
News from the Hill: Overdraft Protection bill introduced, tax-exempt hearing
Compliance Corner
League InfoSight highlight: Succession Planning
CUNA Regulatory Advocacy Report - Week of May 14, 2012
Compliance calendar and training
Cooperative Initiatives News
New "Leave Behind" video shows need for playground
LSCU AC&E News
Want a sneak peak at the Silent Auction? Check out AC&E Facebook page
AC&E Governmental Affairs Luncheon with Rep. Bill Posey
Compliance Forum at AC&E to discuss FS 559 violations, includes lunch and council meeting
Education News
Education Calendar
LEVERAGE News
OneMain Financial Auto Remarketing Unit completes rebranding
News from You
Redstone FCU forms new technology consulting venture
Tampa Chapter holds Cruise 4 Kids for local charities
EMPLOYMENT
View available credit union jobs
In This Issue
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President's Point

Shared branching valuable for members

One of the biggest myths that banks use against credit unions is the convenience factor. You hear banks talk about how many more branches they have than credit unions and how many more ATMs. Both are simply not true. The Co-op ATM network has 28,000 surcharge free ATMs coast to coast, while shared branching literally gives participating credit unions more than 4,000 branches across the country.  

More of our credit unions should consider taking part in shared branching, either CUSC of Alabama or FCUSS in Florida. For many, the argument has been that they don’t want to give up members to other credit unions or that they are processing transactions for people that will never become a member of their credit union. I understand both arguments, but I think the benefits of shared branching outweigh each.

With the continued backlash against the big banks, consumers are looking for a financial institution that has their best interest in mind, as well as being convenient. Through shared branching, a credit union, regardless of asset size, can boast more branches than every bank except Bank of America, Chase and Wells Fargo. That’s a good marketing piece. Being a member of shared branching means your members have access to your credit union literally anywhere in the country. This also refutes the convenience factor the big banks try to use.

Another aspect of shared branching is the collaborative nature of credit unions. When tornadoes hit Alabama in 2011 and the early part of 2012, shared branching was the only way some members could access their money right away. Many branches experienced power outages which left ATMs inaccessible. Before generators could be brought in to those branches without power, shared branching credit unions had communicated with their members on where they could go to get cash. What we found when talking to those shared branching credit unions is that their members really appreciated having access to their money right away.  

Coaches will tell you that they are always looking for an edge with their team. What is your edge for your members? Shared branching is not about losing members to another credit union, it’s about value of membership. More members will spread the message about your credit union to their friends and family when they feel a value of membership.

Shared branching is also a trusted system partner. Since 1998 FCUSS has paid its Florida members patronage and shareholders dividends totaling $5.7 million. Last year CUSC of Alabama paid a $150,000 patronage dividend to its member credit unions for the first time and a shareholders dividend for the third time. FCUSS and CUSC have contributed $25,000 each for two years to our Cooperative Image Campaign. This has helped pump $100,000 into the media buys in media markets across Alabama and Florida where not as much money was raised.   

Consider shared branching in Alabama and Florida and offer your members one more reason to see that credit unions give banking a better name.

I welcome your thoughts and feedback.

  [ Return to Top ]

LSCU Top Headlines
This week's top League headlines

Credit unions testify they are burdened by regulations
A House subcommittee held a hearing last week on "Rising Regulatory Compliance Costs and Their Impact on the Health of Small Financial Institutions." VyStar CEO Terry West represented credit unions for CUNA. West told the subcommittee that his Jacksonville based credit union is being burdened by regulations. He also talked about proposed wire transfer regulations. You can see the full story by visiting the LSCU Top Stories on the website. 

CUNA estimates 1 million new members in 1Q
5300 Call Report data is expected over the next couple of weeks for the first quarter. CUNA is already estimating that more than one million new members joined a credit union in the first quarter. CUNA, based on estimates, believes as many as 500,000 new members joined in March alone. It appears Bank Transfer Day has more of a lingering affect than credit unions expected. You can read the full story here

NCUA examiners to be more consistent
NCUA examiners completed training that will help them to be more consistent from region to region. The new NCUA National Supervisory Policy Manual removes regional differences and puts consistent policies in place on interest rate risk, credit risk and problem resolution. You can read the full story by visiting the NCUA's website. 

LSCU Compensation Survey coming this week
The LSCU will be emailing a compensation benefits survey to credit unions this week. This comprehensive survey looks at all level of employment at a credit union and the various benefits for each position. The finished report is a great tool for credit unions to use when hiring new staff or looking at their benefits package. By completing the survey, credit unions will receive a free PDF copy of the completed report in August. For those that don't complete the survey, the final report will be available for purchase. Watch your email boxes for the survey mid-week.  [ Return to Top ]

Governmental Affairs News
This week in Alabama politics: Remaining session schedule, public deposits

Remaining Schedule
This is the last week of the Legislative Session, and the expected special session on redistricting has been re-arranged quite a bit. The final legislative day of the 2012 Regular Session will be Wednesday, May 16 with the Senate convening at 9 a.m., and the House going in at 11 a.m. While Gov. Robert Bentley has yet to call a special session on redistricting, it is expected to happen on Thursday, May 17. At this point, redistricting is the only thing being considered for the special session, but that could change depending on what is or is not passed on the final day.

Public Deposits
As the session comes to an end, the League legislation granting credit unions in Alabama the ability to accept public deposits remains in committee – and will stay there. The League was able to secure a Senate hearing on the legislation and make serious in-roads with both the House and Senate on this issue. Members of the Alabama Legislature, and the opposition know that this bill will not go away. The League fully expects to re-introduce this legislation in 2013.

The League would like to thank bill sponsors, Sen. Bill Holtzclaw (R-Madison) and Rep. Mike Ball (R-Huntsville). Both sponsors worked hard on your behalf and if you get the chance, thank them for their hard work and loyal support of credit unions. The League would also like to thank all of the credit unions that helped with the grassroots support for the public deposit legislation.  Without your help, this battle would be much more difficult. This fight is not over and the League will need your help again.

To read the complete update for This Week in Alabama Politics including next steps for credit unions following the 2012 Regular Session, click here.

Follow the GA team updates on Twitter throughout the session by clicking here.

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: Governor's Chief of Staff resigns, legislative survey yields results

Governor’s Chief of Staff Resigns Amid Controversy
Gov. Rick Scott’s Chief of Staff, Steve McNamara, who spent much of last week answering questions about potential ethics violations, resigned on Saturday saying he would officially step down on July 1. Gov. Scott immediately announced Andrew Hollingsworth as his replacement. McNamara, who had been Chief of Staff to Senate President Mike Haridopolos (R-Melbourne) before taking the same post with the governor, was dealing with the fallout from a report that while working in the Senate, he steered a $360,000 no-bid consulting contract to a friend. This, along with other accusations of impropriety, led to McNamara’s decision to submit his resignation. In a two-page letter to the governor, made available through the media, McNamara stated that the media scrutiny “has begun to interfere with the day-to-day operations of this office.”

Legislative survey shows that personal stories matters most, not sheer volume of messages
A survey of legislative staff in Florida shows that personal interaction and stories are much more effective forms of communication with elected officials than form letters and emails. The survey, done by Kevin Cate, a governmental public relations and campaign adviser, shows that utilizing “new media” such as Facebook and Twitter, are increasingly influential for those who know how to use it. Cate asked 52 House and Senate staffers what influences their boss the most, and the most popular answer was “in-person” visits. This proves the point that coming to Tallahassee, and going to Washington for governmental affairs conferences is the most effective way to make a difference in the legislative process. Mark your calendars now for the 2013 Florida Governmental Affairs Conference, March 19-20, 2013. The full article on this survey can be read here.

To read the complete Florida Politics Week in Review including important information on grassroots advocacy and PAC fundraising, click here.

Don't forget to follow developing news and legislation updates from GA on Twitter

For questions regarding this update or credit union legislation in Florida, contact LSCU, Director Legislative Affairs Jared Ross at 866.231.0545, ext. 1012. [ Return to Top ]

News from the Hill: Overdraft Protection bill introduced, tax-exempt hearing

News from the Hill Update

Overdraft Protection Bill Introduced in the House
Last week, Rep. Carolyn Maloney (D-NY) introduced HR 5691, a bill that would significantly limit the ability of credit unions and banks to offer Overdraft Protection programs. Some of the provisions of the bill include:

  • Defines ODP fee as a “finance charge” and require that the charge must be disclosed using APR
  • Limits ODP charges to 1 per month and 6 per year maximum
  • Mandates that the institution must notify the consumer no later than the day of an ODP service being accessed
  • Notification that a transaction will trigger an ODP if the transaction is at an ATM or branch teller and give the consumer a chance to cancel without a fee
  • Requires that ODP charges be “reasonable and proportional” to the amount of the overdraft, and gives the regulators the ability to decide what is reasonable and proportional
  • The institution must post items in an order that prevents consumers from incurring avoidable overdrafts.  This goes well beyond a prohibition against posting in an order that will trigger the most ODPs or NSFs
  • The bill prohibits NSF fees for ATM and Debit Card Transactions 

The League has already contacted all members of its delegations to express opposition to the bill. Only Reps. Corrine Brown (D-FL) and Fredrica Wilson (D-FL) are on the bill among 46 original co-sponsors. The League has also discussed the bill with staff contacts on the Financial Services Committee, and it appears highly doubtful that the bill will receive any action in the House. The League is committed to continuing to voice  opposition and concern to the bill.

Tax-Exempt Hearings
On Wednesday, the Oversight Subcommittee of the House Ways and Means Committee will hold the first in a series of oversight hearings on the operations of tax-exempt organizations. The League has contacted the subcommittee and have been re-assured that credit unions are NOT the primary focus of these hearings, but may be mentioned marginally as aggregate information is gathered from the IRS about the newly revamped IRS Form 990. Also, the subcommittee will be looking at UBIT with a focus primarily on large tax-exempt organizations that have profit-making entities, and that also engage heavily in partisan political activity. The subcommittee will also focus heavily on the number and quality of IRS audits of charitable hospitals, universities, and donor advised funds. CUNA staff is in continuous contact with committee staff and is prepared to answer any questions they may have. The case for the credit union federal tax exemption was fully vetted in 2005 before the full Ways and Means Committee.

To read the complete News from the Hill Update including the full committee schedule and information on the National Flood Insurance Program legislation, click here.

For questions regarding this News from the Hill Update, contact LSCU SVP, Govenmental Affairs Will McCarty at 866.231.0545, ext. 2137. [ Return to Top ]

Compliance Corner
League InfoSight highlight: Succession Planning
The safety and soundness of every credit union greatly depends upon maintaining healthy continuity of leadership, and your board members should make the development of future leadership a key priority of their service. The loss of a CEO or other high level leader can disrupt the normal functioning of your credit union, resulting in at least a temporary loss of direction, productivity, and effectiveness.

If your credit union does not have a formal succession plan, now is the time to develop one—and if you have one, take some time to review it. Succession plans provide for an acceptable transition in the event of the loss of the CEO, key management or employees. By planning ahead to manage turnover at the top, your credit union can ensure that it has the leadership needed to successfully address the challenges of emergency and planned CEO, board, and key staff vacancies.

To find out more about the Succession Planning topic, visit League InfoSight.

The current issues of the InfoSight eNewsletter for Alabama and Florida are now available. Members must login to the League website (www.lscu.coop) with username and password. If you do not have access to the League website, click here to sign up. After you are logged in to www.lscu.coop, click on the InfoSight tab.

  [ Return to Top ]

CUNA Regulatory Advocacy Report - Week of May 14, 2012

Take a look at the most recent edition of the CUNA Regulatory Advocacy Report, which covers important issues such as: New NCUA Examination Manual to be released in June, Sen. Durbin files brief criticizing Fed's Interchange rule, CFPB holds industry discussion , and more.

To read the latest CUNA Regulatory Advocacy Report, click here.

[ Return to Top ]

Compliance calendar and training

May 2012

          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
          New "Leave Behind" video shows need for playground

          The Southeastern Credit Union Foundation (SECUF), along with CUNA and the National Journal, are in the middle of fundraising for a $300,000 therapeutic playground for All Children's Hospital in St. Petersburg. The playground is being built in honor of the Republican National Convention in Tampa this August.

          A ribbon cutting was held a couple of weeks ago to officially get the project started. In a new video produced by the LSCU, the need for the playground, what it will mean to the hospital and how credit unions can help is highlighted.  You can view the video and learn more about the project and how you can give by visiting the SECUF website.

          Every four years, CUNA works with state leagues on a project around the Democratic and Republican National Conventions. A similar project is being built in Charlotte in honor of the Democratic National Convention. If you have questions about the project, contact LSCU VP, Cooperative Initiatives Laura Vann at 866.231.0545 ext. 2181. [ Return to Top ]

          LSCU AC&E News
          Want a sneak peak at the Silent Auction? Check out AC&E Facebook page

          The last night of the AC&E is a crowd favorite with dinner, entertainment, and the silent auction. Credit unions and vendors, alike, donate fantastic items to be bid on by attendees. Each dollar raised for the LSCU Political Action Committees will be matched with a donation from LEVERAGE, the LSCU Service Corporation, to Children’s Miracle Network. This is a great way to support political advocacy while raising funds for charity.

          Check out and "like" the LSCU AC&E Facebook page to get a sneak peek at just a few of the items we've received so far! 

          Interested in donating? Visit the LSCU AC&E Dinner, Entertainment, & Silent Auction webpage to download a 2012 Silent Auction form.

          [ Return to Top ]

          AC&E Governmental Affairs Luncheon with Rep. Bill Posey

          This year’s Governmental Affairs Luncheon at the 2012 AC&E, June 13-16 at the JW Marriott in Orlando, will feature a small-dollar fundraiser for Rep. Bill Posey (R-FL). Rep. Posey has been a strong advocate for credit unions since he was first elected to the Florida Legislature. This friendship has continued on through his tenure in Congress, as he is currently a co-sponsor of several key pieces of legislation that would benefit credit unions.

          Rep. Posey, a co-sponsor on Member Business Lending (H.R. 1418), Exam Fairness (H.R. 3461), Supplemental Capital (H.R. 3993), and ATM Disclosure (H.R. 4367) legislation, has gone above and beyond to help credit unions, not just in Florida, but nationwide. The League is excited to have Rep. Posey as its honored guest at this year’s Governmental Affairs Luncheon. Tickets to the luncheon will be $100, and will benefit the Congressman’s re-election campaign. Final details on purchasing tickets for the luncheon will be available later this week, including ways to purchase tickets online.

          If you have any additional questions, contact LSCU
          Director, Legislative Affairs Jared Ross at 866.231.0545 ext. 1012.

            [ Return to Top ]

          Compliance Forum at AC&E to discuss FS 559 violations, includes lunch and council meeting

          Compliance officers won't want to miss the Compliance Forum to learn how to prevent losses by “spurious” lawsuits. Held Wednesday, June 13, from 9:30 a.m. - 11:30 a.m. at the LSCU AC&E, this workshop will delve into potential issues that credit unions are having with violations of FS 559 during their collection activities.

          The forum's presenters will be David Jones, attorney with Rush Marshall and Jones, and William Berg, VP, compliance training and information with LSCU.

          Also, included is lunch as well as admission into any of the LSCU Council meetings. If you've already registered for the AC&E but would like to add this event, contact Becki Payne at 866.231.0545, ext. 2129.

          "Like" the LSCU AC&E on Facebook! [ Return to Top ]

          Education News
          Education Calendar

          Upcoming Events:

          Tuesday-Wednesday, May 15-16
          ALM Essentials & Implementation Workshop - Birmingham, AL
          Essentials Workshop - May 15
          Implementation Workshop - May 16

          Thursday, May 17
          Lender Alert:  Regulation Z Mortgage Application Timing Requirements
          3 to 4:30 p.m. EST - Webinar

          Tuesday, May 22
          Member Credit Report Disputes: Completing ACDVs, AUDs & Correcting Joint Members’ Credit
          3 to 4:30 p.m. EST - Webinar

          To view the complete LSCU Events Calendar, click here.

            [ Return to Top ]

          LEVERAGE News
          OneMain Financial Auto Remarketing Unit completes rebranding

          OneMain Remarketing, has undergone a rebranding that follows a similar step its parent company, OneMain Financial, a LEVERAGE partner, completed last July when the company was rebranded from CitiFinancial to OneMain Financial.

          This change allows the remarketing group to align itself closely with its parent company, while providing an opportunity to distinguish its business with an identity that better represents who it is and what it does. OneMain Remarketing, which has sold 500,000 vehicles since 2000, will continue to service the same client base and utilize the same auction network that it did under its previous name.

          “We’re excited to serve our clients under the OneMain Remarketing name,” said OneMain Remarketing’s Director, Karen Tanner-Smith. “While our name is changing, our people and their commitment to world-class service will continue as before. Our staff will continue to work with our national auction network and vendors to provide efficient and thorough service to meet our clients’ needs.”

          In addition to the name change, OneMain Remarketing also debuts a fresh web presence and an updated and enhanced version of its industry-leading certification program. The CitiFinancial Auto Certified Gold and Silver products have been updated and are now offered as “OneMain 15” and “OneMain 8” products, which allow a 15-day and eight-day certification warranty, respectively.

          “We’re particularly excited about our certification program,” said OneMain Remarketing Vice President Layne Weber. “By transitioning our CitiFinancial certification products to the enhanced OneMain products, we’ve essentially made an innovative, best-in-class program even better.”

          More information regarding the OneMain Remarketing group can be found by visiting its website. [ Return to Top ]

          News from You
          Redstone FCU forms new technology consulting venture

          Redstone Federal Credit Union announces the formation of Redstone Consulting Group (RCG), LLC, for the purpose of offering business solutions to credit unions and banks.

          “At Redstone, we take the universal credit union motto of People Helping People to heart,” said Harry Gunsallus, President of Redstone Consulting Group, LLC, and Senior Vice President of Technology and Operations Support at Redstone Federal Credit Union.
          “When we saw how much the software applications we developed here at Redstone were improving efficiencies and member service, we wanted to share them with other financial institutions, as well.”
           
          Redstone has already been selling applications in Open Solutions’ DNA Appstore where sales have been strong, and client feedback very positive.

          “Creating a consulting group seemed like the logical next step,” Gunsallus said, “It is going to allow us to provide more customized service and support to clients.”

          RCG’s Electronic Lobby Management application is an excellent example of how the group’s innovative applications are streamlining what used to be time-consuming processes. Developed for and utilized in Redstone Federal Credit Union branches, the app is a powerful strategic management tool and is selling well. 

          To learn more about Redstone Consulting Group LLC, and their services, click here. [ Return to Top ]

          Tampa Chapter holds Cruise 4 Kids for local charities


          Photo from left to right: Nancy Smith, Tampa Bay FCU; Janette McElwain, Suncoast Schools FCU; Carolyn Parslow,  Suncoast Schools FCU; and Patty Sarne, San Antonio Citizens FCU.

          The Tampa Chapter of Credit Unions held its annual motorcycle poker run to raise money for local children’s charities in Central Florida. The festivities included live music by JADED and ReCoil, prizes, a live auction, giveaways, and a Radical Randy Bike Show. The motorcycle poker run had stops at Tampa Harley, Harley Davidson of New Port Richey, The Law Office of Fran Haasch, Dunedin Brewery, and Quaker Steak & Lube.

          [ 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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