LSCU eSignal Weekly
LSCU eNews Weekly September 10, 2012
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LSCU eNews Weekly
In This Issue
President's Point
Second quarter Call Report data tells a positive story in Alabama, Florida
LSCU Top Headlines
This week's top League headlines
Governmental Affairs News
This week in Alabama politics: One week until amendment vote, special elections to close out year
This week in Florida politics: Crist leads Democratic poll, big races coming in Central Florida
News from the Hill: Credit union update on MBL, ATM Fee Disclosure legislation
Compliance Corner
CUNA Regulatory Advocacy Report - Week of Sept. 10, 2012
League InfoSight highlight: Truth in Savings
Compliance calendar and training
Cooperative Initiatives News
Nominations open for NCUF Board
Education News
LSCU Councils meeting offers workshops for six professional disciplines; hotel group rate deadline extended to September 14
Register now for LSCU/CUES CU Dialogue
Education Calendar
LEVERAGE News
Upcoming ePurchasing Computer Blowout Event
News from You
CFE FCU partners with auto dealer in sweepstakes to award $10,000 to area teacher
Community Credit Union changes name to WinSouth
Achieva receives Dora Maxwell Award
EMPLOYMENT
View available credit union jobs
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President's Point

Second quarter Call Report data tells a positive story in Alabama, Florida

This week the LSCU will be sending out a news release on our credit unions’ second quarter Call Report data. We had great coverage from the first quarter numbers and should get the same this week. The numbers are very positive once again. We talk a lot about gaining market share in both states. As you will see, we’re making positive strides toward that growth.

In the second quarter, Alabama credit unions recorded $17 billion in assets, a new record, while Florida credit unions posted $45 billion in assets, also a record. For Alabama credit unions, this is the seventh straight quarter with a record amount of assets. Florida credit unions have posted a new record for three straight quarters. After years of slow or flat growth, it’s nice to see the numbers climbing up. Both states are growing at a better clip than the national credit union average.

On the membership side, Alabama and Florida credit unions added 46,000 new members in the second quarter. Each state is once again at a record level of membership with Alabama now having 1.815 million members and Florida with 4.689 million members. Both membership growth rates are higher than the national credit union average. Florida is one of 17 states with significant annual membership growth; 143,000 new members in the past four quarters. Alabama is the next tier down but still very good with 51,000 new members in the past four quarters.

Loan growth continues to be tough for many credit unions. However, the second quarter numbers are some of the most positive loan numbers we’ve seen in quite some time. Auto loans showed positive growth in both states. For Florida, this was the first positive auto lending quarter since 2007 and for Alabama it was the first positive quarter since 2009. On the real estate side, Alabama has seen positive growth since the fourth quarter of 2010. In Florida, where the real estate market has been severely slammed, the second quarter was the first positive real estate lending quarter since 2009. I know all credit unions aren’t seeing loan growth, but it is happening slowly.

What are the factors that are leading to this growth? Getting consumers to switch financial institutions takes time. With direct deposit and automatic bill pay, many consumers take months before they finally decide to switch. Last year, the LSCU Cooperative Image Campaign and Bank Transfer Day primed consumers to consider switching. That was in the third and fourth quarter of 2011. The largest gains by credit unions were in the first quarter of this year. It just takes time. The second flight of the Cooperative Image Campaign ended in August and many credit unions are doing a great job of branding and promoting services. So we should continue to see this upward trend.

After years of negative news, it’s nice to see positive numbers and record breaking ones at that. This week many credit unions, along with LSCU staff,  will be in Washington, D.C. for our annual Hike the Hill. These numbers are always helpful when we talk to our lawmakers. They tell a great story and the good news is the story is far from over.

Send me an email if you have any comments on this column.

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LSCU Top Headlines
This week's top League headlines

NCUA develops second quarter statistical state-by-state map
The second quarter Call Report data is out and the NCUA has developed a new tool to give a greater perspective on what the numbers mean from a larger perspective. The state by state comparison map looks at seven different factors like annual membership growth and loan growth. The new tool helps credit unions to see how the economic recovery is doing in their state and region. You can access the map by visiting the NCUA website. 

LSCU Hike the Hill coming up Wednesday
The LSCU and credit unions from Alabama and Florida will be in Washington, D.C. this week for the annual Hike the Hill. While the group will meet with lawmakers and talk about member business lending, ATM fee disclosure and the credit union tax exemption, they will also meet with the Consumer Financial Protection Bureau. If you have any questions about Hike the Hill, contact LSCU VP, Governmental Affairs Jared Ross at 866.231.0545 ext. 1012.

Rep. Clyburn calls CUs' convention project 'important'
Rep. James Clyburn (D-SC), a top Democratic leader in the U.S. House and former House Majority Whip, commented on how important the "Leave Behind Project" created by CUNA and various credit union leagues is for political convention host cities. For the full story, click here.

LSCU video from "leave behind" ribbon cutting
The League recently attended the Republican National Convention held in Tampa, FL where alongside CUNA, SECUF, and All Children's Hospital, the "leave behind" project ribbon cutting took place with the help of Republican Presidential Nominee Mitt Romney's wife, Ann Romney. To watch the video, click here.

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Governmental Affairs News
This week in Alabama politics: One week until amendment vote, special elections to close out year

One Week to Go
In one week Alabama voters will go to the polls to vote on a constitutional amendment that will bail out the cash-strapped General Fund Budget for the 2013-2015 fiscal years. The amendment authorizes the transfer of $437.4 million from the Alabama Trust Fund to the state’s non-education budget, primarily to prop up the Alabama Medicaid Agency and Department of Corrections. Proponents and opponents have been doing their best to garner support over the last few months and with one week left, the pressure is mounting.

Supporters say that passing the constitutional amendment allows Alabama to use part of its savings in order to avoid devastating cuts to state agencies. This money will allow state government to continue working as the legislature and governor look for additional cost cutting for the future. Opponents to the amendment contend that the amendment in another band-aid to the General Fund and that adding these dollars doesn’t address real problems. They want to see additional cuts before using any money from the Alabama Trust Fund.

The amendment campaign recently released a complete list of supporters. Political and corporate supporters include:  Gov. Robert Bentley, Senate President Pro Tem Del Marsh, House Speaker Mike Hubbard, Senate Minority Leader Roger Bedford, Children’s Hospital, the Alabama Association of Realtors, Alabama’s district attorneys, the Alabama Education Association, the Alabama Hospital Association, the Alabama Nursing Home Association, the Business Council of Alabama, the Alabama Retail Association, the Alabama State Employees Association, and the Birmingham News and Huntsville Times, among others.

Special Elections to Close Out the Year
Two House districts will see special elections to fill vacancies before the end of 2012. On Oct. 23, a Republican primary will be held for HD 30 between Mack Butler, Etowah County Board of Education member, and Rob McHugh, chairman of the St. Clair County Young Farmers Division.  The winner of the primary will face Democratic opposition from attorney Beth McGlaughan on Dec. 11.

Also on Oct. 23, voters in Blount and Jefferson Counties will decide primaries for the House seat vacated by Rep. Elwyn Thomas’ appointment to lead the Alabama Manufactured Housing Commission. Qualifying is not complete, but there are a large number of names that appear to be interested in going to Montgomery to represent HD 34. Those names include current mayors, former and current judges, and even a former state representative. Once qualifying is complete, the League will provide you with a list of candidates.

Follow the GA team legislative updates on Twitter 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: Crist leads Democratic poll, big races coming in Central Florida

Crist Leads Democratic Gubernatorial Poll
The first Florida-based poll conducted since the close of the Democratic National Convention shows former Republican Gov. Charlie Crist lapping the prospective field of Democratic candidates eyeing the 2014 gubernatorial race. Crist is the top choice of 61 percent of likely Democratic voters, followed by former Chief Financial Officer Alex Sink, who ran against Rick Scott in 2010, with 25 percent support. Orlando Mayor Buddy Dyer comes in at 7 percent, State Sen. Nan Rich (Sunrise) at 3.5 percent and Florida Democratic Party Chair Rod Smith at 3.4 percent. Sen. Rich is the only candidate officially running for governor. Dyer and Sink have said they will make a decision about whether to run after the presidential election. Crist has drawn extensive speculation that he intends to run for governor as a Democrat in 2014. These new poll numbers will certainly intensify the speculation.

Crist received a tepid response from many of Florida’s most prominent Democrats after he delivered a prime-time address at the DNC. Most analysts have opined that Crist faces a difficult road were he to seek the Democratic nomination. But Crist’s approval ratings among Democrats and Independents demonstrate his electability, were he to run. Seventy-three percent of those polled here have a favorable opinion of Crist. Alex Sink also enjoys high marks from Democratic voters with 55-to-21 percent favorable-to-unfavorable rating. But Dyer, Rich, and Smith each received unfavorable or unknown ratings from Democratic voters.

“I was surprised by the results, especially with how high Crist’s favorable rating was,” said Matt Florell, president of St. Pete Polls. “It looks like Democratic voters are welcoming Crist to their party with open arms.”

To read the full polling memo, click here.

Central Florida Home to Big Legislative Election Battles
In one corner of Central Florida, a Republican state representative and the Democratic chairman of Volusia County are competing for a Senate district that reaches from the Atlantic Ocean to the Ocala National Forest. In another, a Democratic state representative and a wealthy Republican trial lawyer are vying for a Senate seat covering predominantly Hispanic neighborhoods from southeast Orange County to Polk County. And in between, in the Orange and Seminole County suburbs, a Republican House member is fighting for his political career against the daughter of a Florida Democratic Party icon. Those elections are among a half-dozen competitive races this fall in Central Florida for seats in the Legislature — an unusually large number of battlegrounds created by the once-a-decade process of redrawing political districts.

To read the complete Florida Politics Week in Review including a breakdown of the state district seats, the LSCU Action Center 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: Credit union update on MBL, ATM Fee Disclosure legislation

Both chambers are expected to be in session this week and next, recessing on Sept. 21 and reconvening the week of Nov. 12, in what is known as the lame-duck session. Having said that, end of session can be as frantic and unpredictable in Washington as it is in state capitols; so take scheduling predictions with a grain of salt.

Outlook for Credit Union Legislation
While the League continues to push for enactment of the MBL bill and the ATM bill, the status of these bills remain largely unchanged due to the long Congressional recess.

Member Business Lending
Senate Majority Leader Reid has promised a vote on credit union MBL legislation before the end of the year, and the League continues to prepare for that vote. Hundreds of meetings have been held by CUNA staff, Leagues, and credit unions since GAC, including many over the recent August recess. Every day, the League has more confidence in its ability to win an up-or-down vote on the Credit Union Small Business Jobs Act. It is exploring every opportunity to advance this legislation before the end of the year; the League understands the banks have priorities that they would like to see addressed in the short-term as well. The overwhelming message received from senators is that they would like to see a legislative package that includes provisions for credit unions and banks which could benefit small businesses. Combining the Credit Union Small Business Jobs Act and the banks’ extension of the Transaction Account Guarantee Program (TAG) could produce exactly that type of package. The League has been working closely with key leaders in Congress to ensure that TAG does not move without MBLs.

On Wednesday, CUNA is co-sponsoring a policy briefing with The Hill newspaper entitled, “Access to Capital for Small Businesses.” Sen. Mark Udall (D-CO) and Rep. Ed Royce (R-CA) will speak at this event along with many of the MBL coalition partners. Additional research on this issue has been produced and will be presented by the Small Business Majority and R Street Institute. The League is encouraging Congressional staff to attend this briefing and an invitation went out to all staff last week.

ATM Fee Disclosures
In July, the House of Representatives passed the ATM Fee Disclosure bill (H.R. 4367 / S. 3204) by a vote of 371-to-0. As noted before the recess, the bill remains stalled in the Senate by unrelated matters. The Senate Banking Committee leadership has combined the ATM bill with a piece of legislation designed to protect the privilege of information submitted to the CFPB. This combined legislation (S. 3394) is being held by Sen. DeMint (R-SC) for reasons unrelated to either issue. Sen. DeMint has had a hold on the stand-alone privilege bill (S. 2099) because he wants an up-or-down vote on the repeal of the Dodd-Frank Act. He is unlikely to release his hold on S. 3394 unless he gets that vote; and, he is unlikely to be granted that vote. So, things are at a standstill right now. To be clear:  the League support moving the ATM bill as quickly as possible – whether it is combined with the privilege bill or on its own. The League has been working with others to resolve the hold situation on the combined bill; but we also believe that the ATM bill, which currently has more than 60 co-sponsors, could move quickly if it was put forward as a stand-alone measure.

To read the complete News from the Hill Update including the complete floor and committee schedule, click here.

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 Jason Cochran at ext. 2159. [ Return to Top ]

Compliance Corner
CUNA Regulatory Advocacy Report - Week of Sept. 10, 2012

This week's edition of the CUNA Regulatory Advocacy Report covers issues such as: CUNA urges FHFA to oppose the use of Eminent Domain to seize mortgages, FHFA announces increase in guarantee fees, Federal Reserve Bank of Atlanta Remittances Transfer Symposium, and more.

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

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League InfoSight highlight: Truth in Savings

The Truth in Savings Act and Part 707 of NCUA’s Rules and Regulations are intended to facilitate comparison shopping among consumers for deposit accounts by requiring credit unions to provide specific information about their accounts.

Thus, Part 707 is primarily a disclosure regulation that requires credit unions to provide detailed account disclosures to their members when an account is opened. The regulation also requires specific information in notices to existing account-holders, disclosures upon request, periodic statements, advance notices prior to maturity for certificate accounts, change-in-terms notices, and advertising.

To find out more about the Truth in Savings Act, visit League InfoSight.

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

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Compliance calendar and training
September 2012
  • September 30: Interest Rate Risk Policy and Program Requirement Effective Date

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

*Note: To view InfoSight content, it is required to log in to www.lscu.coop for access.
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Cooperative Initiatives News
Nominations open for NCUF Board

The NCUF Board nominations are for two credit union executive or director seats and a system affiliate seat. Volunteers serve up to three three-year terms on the NCUF Board as long as they are re-nominated by the NCUF Nominations Committee and re-elected by the NCUF Board.

Board Seats
The qualifications for the three NCUF board seats are as follows:

  • (2) Credit union executive or director - Each candidate must be an executive officer or director of a credit union.
  • (1) System affiliate - Each must be and remain a director or executive officer of an organization that is national in scope, that has as its primary purpose support of credit unions or some element of the credit union movement, that has a significant portion of its ownership or membership from the credit union system and that has demonstrated a commitment to the purposes of this corporation. For example, CUNA Mutual Group would be considered as a system affiliate.

The following incumbents are serving in two of the three board seats open for nominations:

  • Mark Twisdale, SVP/human resources at State Employees’ Credit Union in Raleigh, N.C., is completing his second three-year term on the NCUF Board in the credit union executive or director seat; and
  • Stan Hollen, president/CEO of CO-OP Financial Services, is completing his first three-year term on the NCUF Board in the system affiliate seat.

Both Twisdale and Hollen have expressed interest in serving another term. The second credit union executive or director seat is currently held by Gary Oakland, former President/CEO of BECU in Seattle, Wash. Oakland has recently retired and is leaving the NCUF board. Therefore, the credit union executive or director elected to that open seat would complete Oakland’s unexpired term through Dec. 31, 2013.

To find out more about how to apply, click here. [ Return to Top ]

Education News
LSCU Councils meeting offers workshops for six professional disciplines; hotel group rate deadline extended to September 14

Join your peers for the 2012 LSCU Council meetings in conjunction with Northeast FL Chapter Golf Tournament and Florida CUES Council meeting. The LSCU Council meetings provide the perfect opportunity to share and learn in an environment that promotes discussion and provides the takeaways that will take your credit union to the next level.

Below we highlight two of the featured council sessions and speakers for the CFO and HR Councils.

CFO:  Strategic Considerations for Credit Unions: How Do We Continue to Grow with Positive Earnings
Bob Shibla, strategic consultant, Raddon Financial Group
All sources of revenue will be challenged for the foreseeable future in the credit union industry: margins by the economy and noninterest income by regulators. What strategies can credit unions deploy to mitigate the existing threats while preparing for future challenges? Learn how you can manage your membership to minimize subsidization while preserving the credit union mission.

About the speaker: Bob Shibla joined RFG in 2000 after working as a marketing director within the banking industry. Originally, Bob served as a relationship manager for iNTEGRATOR partners. At the beginning of 2003, Bob assumed his current role as a strategic advisor. In this capacity, Bob helps RFG partners integrate all RFG programs and products and develop strategies and tactics to achieve optimal growth and profitability. Bob also presents CEO strategies and survey research for financial institutions' management teams, and he leads group presentations that demonstrate the advanced functionality and concepts of the RFG iNTEGRATOR System.

HR/Training and Development: Employees on the Web and other HR Laws to Beware
Elizabeth Oakes, HR manager, Landrum Professional Employer Services
Learn about current changes in employment law that affects small to medium businesses such as recent decisions of the U.S. Supreme Court cases, recent federal and state legislative changes, as well as potential legislative employment issues currently undergoing debate and how they can affect the likelihood of prospective bills being passed into legislation.

About the speaker: Elizabeth Oakes is certified as a Senior Professional in Human Resources (SPHR) through the Human Resource Certification Institute and the Society for Human Resource Management. She has more than eight years experience in human resources and training. Elizabeth was the corporate trainer for select managed Marriott, Inc. properties throughout the Southeastern United States prior to joining Landrum Companies. In her role as HR manager, she ensures that Landrum’s clients are in compliance with all local, state, and federal laws that impact on human resources.

Click here to read more about the council workshops and to register.



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Register now for LSCU/CUES CU Dialogue

The 2nd LSCU/CUES Credit Union Executive Dialogue is scheduled for March 14-15, 2013 in Miami. The CU Executive Dialogue brings together CEOs and executives from credit unions around the country with $500 million in assets and above. The format is geared toward meaningful discussions and taking a hard look at the state of the credit union industry. 

Every credit union, regardless of asset size, plays a key role in the future of the industry. The LSCU/CUES CU Executive Dialogue solicits debate among peers and has sessions that are facilitated discussions instead of lengthy presentations. In the end, the two day event is very productive for all attendees. Last year 18 credit union executives from eight states and Canada participated.  

The event will be held at the Hyatt Miami at The Blue at Doral. To register for the CU Executive Dialogue, visit the LSCU/CUES CU Executive Dialogue webpage. For questions, contact LSCU, Director of Events Julianne Talley at 866.231.0545 ext. 1148.

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Education Calendar

Upcoming Events:

Tuesday, Sept. 11
2012 Regulatory Compliance Update
Tallahassee, FL - League of Southeastern Credit Unions

Wednesday, Sept. 12
Required Compliance Series: Regulatory Compliance for All Staff, Including Red Flags for Identity Theft, Bribery & Consumer Privacy
3 to 4:30 p.m. EST - Webinar

Thursday, Sept. 13
Be Compliant: Learn the Secrets of Vendor Management
2 p.m. EST - Webinar

To view the complete LSCU Events Calendar, click here.

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LEVERAGE News
Upcoming ePurchasing Computer Blowout Event

Computers and related equipment are almost always a part of a credit union's capital expenditures. LEVERAGE is among those that will be buying these items this year and is hosting a huge computer ePurchasing event, powered by Ventelligence.

The process is simple and efficient. Credit unions submit their specifications and what type of computer equipment they will be purchasing. LEVERAGE works with each credit union to establish the best price or bid that has been received prior to the ePurchasing event. LEVERAGE then contacts the vendors on the credit union's behalf and provides them the specifications that are being requested. 

Participating vendors then take part in a live, online, bidding event for the business. Results are immediately disclosed following the close of the event. Best of all, each participating credit union determines which vendor to award their business, putting them in total control of the decision.
 
There is no long-term contract commitment required, purchasing details do not need to be identical to those of other participants, and each participant remains in charge of making decisions related to their business throughout every step of the process.

To learn more about the Computer Blowout Event, contact a LEVERAGE Business Development Consultant or visit the LEVERAGE website. [ Return to Top ]

News from You
CFE FCU partners with auto dealer in sweepstakes to award $10,000 to area teacher

CFE Federal Credit Union and Carl Black Chevrolet Buick GMC teamed up to present Chriss Celentano, a third grade teacher at Castle Creek Elementary School, a check for $10,000 – the cash prize he selected instead of a 2013 bright green Chevy Spark. The presentation was made at Castle Creek Elementary, where Chriss and his wife Jennifer teach, and their two children attend school. Students from both of their classrooms were watching on the sidelines as Chriss was being presented with the offer to make his selection.

From left: Castle Creek Principal Seth Daub, OCPS School Board Member Joie Cadle, Carl Black General Manager Omar Rodriguez, OCPS East Area Executive Director John Wright, winner Chriss Celentano, Helena Celentano, Jennifer Celentano, Rylan Celentano, and CFE SVP Kevin Dougherty.

Also attending the event were Orange County School Board Member Joie Cadle, Orange County Public Schools East Area Executive Director John Wright, and Principal Seth Daub, along with Carl Black General Manger Omar Rodriguez, and CFE Senior Vice President Kevin Dougherty.

CFE and Carl Black promoted their end of summer "Rubber Meets the Road" car sale and sweepstakes at the Orange County Public Schools Professional Development Conference, where Celentano entered his name into the drawing to win a 2013 Chevy Spark or $10,000. His name was drawn from more than 5,000 entries.

During the four-day car sale, 54 cars were sold by Carl Black, totaling $1.1 million in new loans for CFE. Most importantly, many new car owners drove away happy with the great deals and loan rates they received during the car sale. [ Return to Top ]

Community Credit Union changes name to WinSouth

 

Community Credit Union, based in Gadsden, AL, recently changed its name to WinSouth Credit Union. A new logo, colors, and website, www.winsouthcu.com, was also unveiled.

The credit union told members they have "the same great people, but a brand new name and a better way to do banking." 

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Achieva receives Dora Maxwell Award

(l to r) Tara Murphy, SVP, COO at Achieva CU; Judy Scott, member relations specialist, LSCU; Gary Regoli, CEO of Achieva CU; and Dawn Dixon, SVP of Marketing at Achieva CU with 2012 Dora Maxwell Award.

Achieva CU, based in Clearwater, FL, was awarded a Dora Maxwell award for its 2011 Box Car Rally. Members were encouraged to build a box car and race it in one of five categories. The rally raised $25,000 for Pinellas schools. Achieva has raised more than $40,000 for Pinellas schools through this event.

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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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