LSCU eSignal Weekly
LSCU eNews Weekly July 2, 2012
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LSCU eNews Weekly
In This Issue
President's Point
Credit Union 24 CEO to retire at the end of the year
LSCU Top Headlines
This week's top League headlines
League News
LSCU mourns passing of long-time employee William Ross
Governmental Affairs News
This week in Alabama politics: Pay to decrease for legislators, GOP wants closed elections
This week in Florida politics: New state laws take effect, CFO gets down to work
News from the Hill: Both chambers out this week for holiday
ATM Disclosure bill passes first step, adds another co-sponsor
Compliance Corner
CUNA Regulatory Advocacy Report - Week of July 2, 2012
League InfoSight highlight: Two New Topics Added to Security Channel
Compliance calendar and training
Cooperative Initiatives News
NCUA to host credit union workshop in Orlando on July 12
NCUF 2011-2012 Annual Report released
Communications News
2012 AC&E wrap-up video now online
Education News
Register now for IRA Essentials & Advanced Training in Miami
LSCU Supervisory Committee Conference quickly approaching
Save the date! LSCU Leadership Development Conference dates announced
Education Calendar
LEVERAGE News
LEVERAGE sees more credit unions using ePurchasing to save money
News from You
eCO CU voted 'Best Financial Institution' in Birmingham
Florida State University CU opens Wakulla branch
Campus CU surpasses $1 million in giving to Shands Hospital
EMPLOYMENT
View available credit union jobs
In This Issue
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President's Point

Credit Union 24 CEO to retire at the end of the year

It was announced last week that the credit union industry will be losing a CEO that grew a seed of an idea into one of the strongest credit union networks in the country. In 1981, Jim Park founded Credit Union 24 to help four Central Florida credit unions compete with other financial institutions. That was through an ATM network that today is one of the largest in the country. Park is stepping down from Credit Union 24 at the end of the year.

In 1981, Park was the marketing director for Jax Navy Federal Credit Union (later VyStar Credit Union) when the idea for Credit Union 24 began to germinate. A year later he began working for the Florida Credit Union League Service Corporation when the concept was formed to help credit unions compete with the more than 100 “electronic funds transfer” networks that were operating at the time. Park helped formulate the idea of a “network of networks.” Credit Union 24 would not only compete in Florida, but the concept could be used throughout the country. Credit Union 24 became a corporation in 1998 and Park was named to lead it. At that time a group of credit unions bought it from the Florida Credit Union League Service Corporation. It has been a great value for credit unions ever since.

It’s interesting to note that there were about 12 credit union networks in the early 80s. Today, Credit Union 24, CO-OP Financial and Alaska Option are the only credit union networks from that era still in existence, the rest have been merged into larger networks.

Today convenience is common place in the financial services industry. Thirty years ago it was not as easy to compete with larger financial institutions, especially for credit unions. Before shared branching came to the state (the Florida Credit Union Shared Services network wasn’t formed until 1995), Credit Union 24 helped to usher in ATMs that would accept deposits. This was a huge concept for credit unions. Now their members could easily access their money across the state and the region, but also deposit checks anywhere within the network. This was a big selling point for members. Today, Credit Union 24 has more than 300,000 ATM locations throughout the world available to its member credit unions and 70,000 surcharge-free ATMs.

Over the past year, large banks have been telling the press that their customers have more convenience because larger financial institutions have more locations. Credit Union 24 is a great example of where credit union members have just as much convenience and in some instances more convenient locations than some of the larger financial institutions. Our ATM networks are one of the best kept secrets in the industry. We need to promote this more.   

With Jim's retirement, Credit Union 24 announced that Mansel Guerry will succeed him as the CEO. Guerry has been on the staff at Credit Union 24 since January of this year but he’s been involved with Credit Union 24 since 1998, including holding the chairman of the board position. Credit Union 24 has been a trusted partner with the Florida Credit Union League from its infancy and remains a trusted partner today. I wish Jim well in his retirement and look forward to working closely with Mansel in the future.  

I welcome your thoughts and feedback.

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LSCU Top Headlines
This week's top League headlines

LSCU Member Survey coming this week
League member credit union CEOs will receive the LSCU Member Survey this week. The survey, which consists of 35 questions, helps credit unions provide feedback to the League. When planning for 2013, the League uses the member survey results to ensure credit unions' needs are being met. The survey is completely anonymous and has open-ended questions for credit unions to pass along their ideas on ways the League can improve.

NCUA June economic update available
The NCUA releases a monthly video economic data. The June report is available online, and it covers how economic trends are likely to affect credit unions and provides an update about the status of the corporate credit union system. NCUA Chief Economist John Worth hosts the video and he reviews recent economic indicators and events. To see the video, visit the NCUA website

Credit unions among list of companies with top customer service ratings
The Temkin Group recently released its 2012 Temkin Customer Service Ratings that examines how U.S. consumers rate the customer service of 174 large companies across 18 industries. Credit unions were high on the list of customer service ratings. Read more by clicking here.

LSCU Social Advocacy Center
With legislative advocacy becoming more and more important for the credit union industry, along with the emergence of social media as a vehicle for advocacy, the League has created a webpage housed in the LSCU Action Center called the LSCU Social Advocacy Center. Here, credit unions can find helpful social media resources such as ways to connect with legislators through Twitter and Facebook, key U.S. Senators and Representatives, hashtags to follow on Twitter, blog inspiration, and more. The page will continually evolve as the League adds more social media resources. Take a look at the LSCU Social Advocacy Center. *An LSCU login is required.

LEVERAGE compliance solution featured on CUES website
Credit unions can stay compliant with a solution that is automated. It takes the place of the old manual process. LEVERAGE's compliance solution, ComplyTrac, was featured in a web article on the CUES website that points out how easy the process is for credit unions. The CUES article highlights how ComplyTrac sends secure emails to the compliance staff when a regulation has changed and how easy it is for credit unions to meet new regulatory requirements. Read more by visiting the LEVERAGE in the News webpage. 

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League News
LSCU mourns passing of long-time employee William Ross

The LSCU is saddened by the passing of colleague and friend, William Ross. He began with the Florida Credit Union League in 1999 in its IT department. William passed on Monday, June 25, 2012.

While William's responsibilities kept him behind the scenes at the League, many of you might have talked with him at the Annual Convention and Exposition as he helped set up the educational session rooms. For staff, he was a constant figure. As LSCU's IT specialist, he was the first person to call when it came to computer questions.

In addition to his dedication to the League, William was also dedicated to his country as a veteran of the Persian Gulf War and his community as a deacon of his church and president of the Decatur County NAACP. He loved music, sports, golf, and computers.

The League offers his family and friends its sincerest condolences during this sad time. He will be missed as a work colleague and friend after his many years of loyal service to the League.
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Governmental Affairs News
This week in Alabama politics: Pay to decrease for legislators, GOP wants closed elections

Constitutional Amendment to Decrease Legislative Pay
For the past several weeks you have heard about a constitutional amendment, voted on in September, that will help shore up funding gaps in the fiscal year 2013 General Fund for Alabama.  Another constitutional amendment that voters will decide takes place in November and it attempts to tie legislator pay to the state’s median household income.

Sponsored by Rep. Mike Ball (R-Huntsville), the amendment repeals the existing laws that set out legislator pay and reimbursement of expenses, and would reduce the annual compensation of all 105 House members and 35 Senators from $53,388.00 to $45,980.00.  In addition to the reduction, legislators would never be able to increase their pay again without approval of the voters.

GOP Wants Closed Elections
The State Republican Executive Committee has voted to support legislation that would put an end to Alabama’s open primaries. Registered Republicans and registered Democrats would only be allowed to vote in their party’s primary, and people who voted in one party’s primary would not be allowed to vote in the other party’s primary runoff.

Democrats are saying that this move is another way for the Republican Party to reduce voter turnout.  Both parties in Alabama have encouraged voters to cast ballots in their runoffs in the past, but this issue came to light for Republicans during the last Governor’s race when the Democratic-leaning Alabama Education Association was courting its members to vote against Bradley Byrne (R) in the primary runoff.  While most Republican leaders have endorsed the idea, House Speaker Mike Hubbard (R-Auburn) is not so sure.  He has been quoted as saying he wants additional study on the impacts of the proposal and worries that Alabamians, particularly independents, may be alienated.

Follow the GA team legislative updates on Twitter by clicking here and Facebook.

For questions regarding legislative affairs issues in Alabama, contact LSCU Director, Governmental Affairs - Alabama Jason Cochran at 866.231.0545, ext. 2159.
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This week in Florida politics: New state laws take effect, CFO gets down to work

New Laws into Effect
July 1 marks the start of the new Fiscal Year for the state of Florida and along with that comes the enactment of several new laws. The new laws range in topics from high school athletics and pregnant prisoners, to automobile insurance and environmental permitting taking effect. In all, about 150 new laws hit the books and the state’s $70 billion budget takes effect. On the economic development front, Republican-led efforts to assist Florida businesses, a priority of both chambers and Gov. Rick Scott, continues with a roll back of unemployment taxes and another initiative to assist the Space Coast in its transition to a post-shuttle world. The tax paid by businesses for unemployment benefits was scheduled to go up about $171 per employee, but the new law reduces that to about $121 per worker. Lawmakers also lessened the autonomy of regional workforce boards by allowing the governor to fire individual board members without having to remove the entire board, something that was seen as a hindrance to oversight. Some of the boards have come under fire for conflicts of interest as well as questionable expenditures like the purchase of superhero capes for unemployed workers. The measure (HB 7023) sets standards and qualifications for regional workforce boards and would require board members to submit financial disclosures.

CFO’s Office Partners with Florida Chamber on Survey
Recently, you may have received a survey from the Florida Chamber Foundation asking for your feedback on critical economic issues. This survey was brought to the League’s attention early in the process by the office of Chief Financial Officer (CFO) Jeff Atwater. The CFO’s office asked for the League’s help in identifying a few credit union executives who may be willing to test the survey and give feedback. The League worked with the CFO’s office to provide feedback on whether the survey would be valuable, and after receiving the feedback, they decided to go through with seeking out this information. If you receive the survey via email, please do not hesitate to contact the League should you have any questions or concerns. The League certainly encourages all credit unions to fill out the survey and provide the office of the CFO with the information that will be helpful in bettering the regulatory and legislative environment for credit unions in Florida.

CFO Atwater Announces New Accountability Application
In his weekly newsletter, CFO Atwater announced a new application to offer more transparency to the people of Florida. Atwater stated that approximately 56 percent of the state budget is spent on contracts and agreements for goods and services. Because of this, and under the direction of the state legislature, Atwater’s office developed the Florida Accountability Contract Tracking System otherwise known as FACTS. Launched last week, this comprehensive online tool offers Floridians greater visibility into how their government is doing business. For the first time, FACTS makes the state’s contracting process transparent through a centralized, statewide contract tracking system.

To read the complete Florida Politics Week in Review including important information on the LSCU Action Center, Project Zip Code, LSCU PLAN to Win, and PAC fundraising, click here.

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

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

News from the Hill: Both chambers out this week for holiday

Both the House and the Senate will be out of session this week due to Independence Day. The chambers will next be in session on July 9, and are expected to remain in session through August 3. While this week’s news is slow, be prepared as things will certainly pick up heading into election season.

As always, if you have any questions regarding these or any legislative issues, contact LSCU VP, Governmental Affairs Jared Ross at 866.231.0545, ext. 1012 or Director, Governmental Affairs – Alabama Jason Cochran at ext, 2159.

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ATM Disclosure bill passes first step, adds another co-sponsor

A House Financial Services Committee passed legislation, by a voice vote, that would help credit unions and other financial institutions by easing duplicative ATM regulations. It was unanimously approved. The next step is a full U.S. House vote which could come after the July 4 recess.

H.R. 4367 would eliminate portions of Regulation E that require credit unions and other financial institutions that provide ATM services to display a physical notice on the ATM that a fee will be charged. Under the legislation, ATMs would only be required to display the ATM disclosures on a screen and give ATM users the choice of opting in to such a fee.

Last week, Rep. Gus Bilirakis (R-FL) signed on to co-sponsor H.R. 4367, which makes two new co-sponsors in the last week and a half including Rep. Richard Nugent (R-FL). H.R. 4367 is now up to 145 cosponsors, eight of which are from the Florida delegation. Reps. Bilirakis and Nugent have joined Reps. Mario Diaz-Balart (R-FL), Bill Posey (R-FL), Ander Crenshaw (R-FL), Daniel Webster (R-FL), Dennis Ross (R-FL), and Tom Rooney (R-FL) in cosponsoring this bill. [ Return to Top ]

Compliance Corner
CUNA Regulatory Advocacy Report - Week of July 2, 2012

This week's edition of the CUNA Regulatory Advocacy Report covers issues such as: NCUA delays advancement of loan participation as well as CUSO proposals, update on Projected Corporate Stabilization Fund Assessments as reported, CUNA meets with the Consumer Financial Protection Bureau, and more.

Click here to read the complete edition of the CUNA Regulatory Advocacy Report. [ Return to Top ]

League InfoSight highlight: Two New Topics Added to Security Channel

The Security channel was recently reviewed and updated. The updates included the addition of the following topics:

  • Smartphone Security – Identity fraud increased in 2011, in part because of unsafe social media and mobile behaviors by users. Smartphone users are about one-third more likely than the general public to be victims of identity fraud. This new InfoSight topic includes some best practices for mobile device users—practices that you can share with members and colleagues and even use yourself.  
  •  Magnetic Card Migration to Smart Cards – Data breaches continue to grow in the U.S., and that trend will likely continue until the U.S. adopts chip technology. This new topic explains the types of chip technology and how the use of this technology can help prevent fraud.

To find out more about changes to the Security Channel, 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.
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Compliance calendar and training

July 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.

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    Cooperative Initiatives News
    NCUA to host credit union workshop in Orlando on July 12

    NCUA’s Office of Small Credit Union Initiatives will present a workshop in Orlando on July 12. The workshop will be held at the Renaissance Orlando at Sea World, from 7:45 a.m. to 4 p.m.

    Topics to be covered at the workshop include issues facing credit unions, an overview of the Office of Small Credit Union Initiatives, examination issues, and fraud detection. In the afternoon, attendees can choose from two breakout sessions: Asset-Liability Management or Duties of Federal Credit Union Board of Directors.

    Online registration and a workshop agenda are available by clicking here. [ Return to Top ]

    NCUF 2011-2012 Annual Report released

    The National Credit Union Foundation (NCUF) recently released their 2011-2012 Annual Report entitled “Making Financial Freedom Achievable.”

    The report highlights NCUF activities over the last 12 months. In early 2012, the Foundation announced a new mission and logo tagline, which corresponds to the theme of the annual report.

    “Over the last year and a half, we've become more focused on financial education and building consumer financial capability through credit unions,” writes Bucky Sebastian, NCUF executive director, in the report’s introduction. “It's a natural fit for us and allows the Foundation to make a bigger impact through our programs and grants. As you read about our many activities throughout the past year in these pages, know that they are only made possible with the support of the credit union community.”

    Click here to view/download the annual report. [ Return to Top ]

    Communications News
    2012 AC&E wrap-up video now online

    For most of the LSCU signature events, the League provides a wrap-up video. For the 3rd Annual Convention and Exposition (AC&E), LSCU VP, Marketing and Communications Mike Bridges takes viewers inside the AC&E and gives them a flavor of the three-day event. 

    The video plays off of the AC&E theme, "The Power of One." LSCU President/CEO Patrick La Pine talks about how the theme was incorporated into the AC&E and what the League hoped attendees would take back to their credit unions. WOCCU President/CEO Brian Branch talks about the credit union movement from a global perspective. He says that credit unions oversees are not that much different than credit unions in the United States. 

    The LSCU awards were handed out at the AC&E and Alabama CU's Jimmy Lankford was honored with the Distinguished Service Award. Lankford has been associated with Alabama CU for 53 years, including 36 as the CEO. Lankford says he's actually embarrassed to be honored. The video also looks at the LSCU Silent Auction and the Exhibit Hall. 

    To view the AC&E video or the rest of the original videos produced by the League, visit the LSCU Video Room. If you have trouble viewing the videos, contact Mike Bridges at 866.231.0545 ext. 1022.

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    Education News
    Register now for IRA Essentials & Advanced Training in Miami

    Here is what's covered in the IRA Essentials & Advanced Training:

    Essentials: IRA Essentials gives attendees a solid foundation of IRA knowledge. Exercises are included throughout the day to help participants apply information to job-related situations. Attendees will leave this session able to work with IRA owners and process basic IRA transactions with confidence. This is a beginner's session; no previous IRA knowledge is assumed. The trainer will utilize real-world exercises to help participants apply information to job-related situations. Those attending should bring a hand-held calculator.

    Advanced: Beyond Essentials builds on the learners’ knowledge of IRA basics to help them address some of the more complex IRA issues they handle at the credit union. This is an advanced session; previous IRA knowledge is assumed. The trainer will utilize real-world exercises to help participants apply information to job-related situations. Those attending should bring a hand-held calculator.

    Date
    Wednesday, Oct. 17            IRA Essentials Training
    Thursday, Oct. 18                IRA Advanced Training

    Location Information
    South Florida Educational FCU
    7780 SW 117th Ave.
    Miami, FL 33183

    Speaker
    Paul Kern, CIS, CIP, CISP Paul is a training consultant for Ascensus, Inc., a division of Crump Group, Inc. He is responsible for conducting IRA training programs to meet the needs of credit unions and leagues nation-wide.

    For more information or to register, visit the LSCU Events Calendar. [ Return to Top ]

    LSCU Supervisory Committee Conference quickly approaching

    Whether you are a new supervisory committee or board member; or you are a ‘seasoned’ volunteer; attendance at this event will most definitely enrich your contributions to your credit union. We’ll have a full agenda of the latest information and updates regarding credit union financials, risk, and compliance. With a wide variety of speakers and topics, you’ll better your knowledge to help keep your credit union secure and strong.

    Date and Location
    Aug. 5 – 8, 2012
    Hilton Sandestin Beach
    Golf Resort & Spa
    Destin, FL

    The Opening General Session features TEAM Resources President and CPA Tim Harrington with a presentation titled Captain or Commander: Who’s Sailing the Ship?

    Who is guiding your credit union? The Supervisory Committee? The CEO? The Board?  What is the role of the CEO and Board in the Audit Process? What is the role of the CEO and the Board overall? Do all the major Governance players, Board, Supervisory Committee and CEO, know where there responsibilities start and end? Should we be evaluating ourselves as a Committee and should we be evaluating how effectively the Board is carrying out its governance function? These are important questions we all must clarify for the credit union to be efficient, effective and the best at serving its members. While the Board’s role is to set the course of the credit union, it is the CEO’s role to steer the ship. At the same time, it is the Supervisory Committee’s role to ensure risk is understood, monitored and managed. This session discusses why the distinction between these three roles can lead to a successful voyage, or to the dashing of your ship against jagged rocks. And you’ll find out just how important the Supervisory Committee is in this whole process.

    Visit the LSCU Events Calendar for more details and to register.

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    Save the date! LSCU Leadership Development Conference dates announced

    Save the date! The 2012 LSCU Leadership Development Conference is scheduled for November  7-9, 2012 (Wednesday through Friday) in Point Clear, Alabama.

    Hotel reservations may be made now at the Grand Hotel Marriott Resort with a group room rate of $159.

    Stay tuned for more information or visit the Events Calendar on www.lscu.coop. [ Return to Top ]

    Education Calendar

    Upcoming Events:

    Tuesday, July 10
    Wire Transfer Compliance
    3 to 4:30 p.m. - Webinar

    Wednesday, July 11
    Understanding & Navigating the ACH Rules for the ODFI
    3 to 4:30 p.m. - Webinar

    Sunday-Wednesday, July 15-18
    Southeast Regional Credit Union Directors Conference (SRCUS)
    9 a.m. to 4 p.m. EST
    Norfolk, VA

    To view the complete LSCU Events Calendar, click here.

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    LEVERAGE News
    LEVERAGE sees more credit unions using ePurchasing to save money

    Pressures to reduce costs and improve spending are fueling a strategic buying revolution among credit unions. LEVERAGE is redefining the traditional purchasing process with new strategies designed to leverage credit union buying power through an innovative ePurchasing platform, powered by Ventelligence. Whether you have one person or several staff members administering multiple contracts, it’s important to have consistent policies in place to manage the purchasing and monitoring activities involved.

    LEVERAGE reviewed the results of recent ePurchasing events and noticed significant credit union savings. Here are a few credit unions that found savings with the use of ePurchasing powered by Ventelligence:

    • Pensacola Government FCU has signed a contract with a new vendor for armored car services which will save them 72 percent annually
    • Alabama Teachers CU has signed a contract for armored car services saving them more than 34 percent on their services

    To find out more about ePurchasing powered by Ventelligence, how your credit union can save on contract services, or to participate in an ePurchasing event, visit the ePurchasing webpage.

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    News from You
    eCO CU voted 'Best Financial Institution' in Birmingham

    For the second year, Birmingham Magazine partnered with Alabama Baby and Child magazine to produce the Parent’s Choice Awards. The online contest had almost 4,000 survey respondents. Respondents voted on the top businesses and services in over 80 categories.

    eCO Credit Union is honored to be the Parent’s Choice Award recipient for Best Financial Institution in Birmingham. eCO Credit Union prides itself on providing quality financial services to members throughout the Birmingham area for over 74 years. Members of eCO have the security of knowing their money is safe, while having access to top-notch financial products and services.

    With lower loan rates, higher savings rates, and fewer fees, credit unions are an obvious choice in today’s economy. With Kirby accounts for children, CU Succeed Accounts for teens, newly added FORWARD>>> Accounts for young adults, and traditional accounts for 30 and up, eCO Credit Union offers products to meet the needs of every member of the family. eCO Credit Union is also set apart by its service to its members. When a member enters an eCO branch, they are more than a number or account type, they are family and recognized by name. eCO truly seeks to meet the needs of every member.

    “We are honored to receive the award and feel it reflects the growing awareness of eCO and its history of serving families throughout the Birmingham area” said eCO CEO, Joey Hand. “We look forward to serving individuals and families for years to come.”

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    Florida State University CU opens Wakulla branch

    (l to r) Chuck Adcock, chief operations officers for Florida State University Credit Union, and Kevin Vaughn, partner with Rogers, Gunter and Vaughn Insurance, cut the ribbon on the new Wakulla shared location. 

    FSU CU and Wakulla Insurance Agency celebrated the grand opening of the Wakulla Financial Center on  June 28. The new location is located at 2190 Crawfordville Highway in Crawfordville, FL. It has three drive-thru lanes and a drive-up ATM. FSU Credit Union is sharing the building with  Rogers, Gunter, Vaughn Insurance.

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    Campus CU surpasses $1 million in giving to Shands Hospital

    Campus USA CU CEO Larry Scott, left, presents a check showing Campus' more than $1 million in giving to Shands Hospital in Gainesville.

    Campus USA has been raising money for the program for hospitalized children at Shands Hospital since 1999 through its Children's Miracle Network Visa Platinum Card. Campus USA donates a portion of its interchange fees charged to merchants when members make purchases using the cards. More than 6,000 Campus USA members carry the Children's Miracle Network Visa card.


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    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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