LSCU eSignal Weekly
LSCU eNews Weekly September 24, 2012
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LSCU eNews Weekly
In This Issue
President's Point
Seeing positive signs for credit unions
LSCU Top Headlines
This week's top League headlines
Governmental Affairs News
This week in Alabama politics: Voters approve $437 million transfer, PAC update
This week in Florida politics: Florida election roundup, PAC fundraising crucial
More than 120 attend South Florida legislator meet-and-greets
Compliance Corner
League InfoSight highlight: InfoSight Users' Survey
Compliance calendar and training
Cooperative Initiatives News
Register for LSCU Credit Union Philosphy in Action Workshop
Education News
LSCU Councils meeting is perfect "training for a day" - Wednesday, Oct. 3
2012 Leadership Development Conference hotel group rate cutoff date is Oct. 6
Education Calendar
LEVERAGE News
Succeeding in 'new normal' economy requires action by CUs
Invest in America Newsletter available
News from You
First Commerce CEO wins trailblazer award
Army Aviation Center opens new operations center
EMPLOYMENT
View available credit union jobs
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President's Point

Seeing positive signs for credit unions

The NCUA’s fifth open meeting of 2012 was on Sept. 20 at its offices in Alexandria, VA. There was quite a bit of news that came out of the meeting. Many credit unions will see some regulatory relief. Plus, the good news from the meeting is that four of the proposals came directly from the NCUA Listening Sessions from earlier this year. This is a positive sign that the NCUA is willing to listen to credit unions and react.
 
As you may have heard by now, NCUA Board Member Gigi Hyland submitted her resignation effective Oct. 5. Hyland was appointed by President Bush in 2005. She served her six-year term that actually expired in 2011. However, she said she would stay on until a new member was appointed. While a new member has not been appointed, Hyland felt it was time to move on. Only time will tell if President Obama does a recess appointment to fill Gigi’s seat. Either way, don’t expect anything to happen until after the November elections. Also on Sept. 24, NCUA Executive Director David Marquis announced his retirement (see LSCU Top Headlines below). This is the top civil servant job at the agency. It's a great opportunity for the NCUA board to take the agency in a new direction and help change how credit unions view the NCUA. 

Four points came out of the Sept. 20 meeting that will bring regulatory relief to credit unions. The NCUA is proposing a rule to change the definition of a small asset size credit union from $10 million to $30 million in assets. This would provide regulatory relief to 1,600 credit unions. This would be the first update to the small asset size credit union definition since 2003. If finalized, the proposed rule would provide regulatory relief by excluding more credit unions from risk-based net worth requirements.

The NCUA board is looking at the sustainability of federal credit unions in rural areas. The board is proposing a rule to change the definition of a “rural district” if the population does not exceed the greater of 200,000 or three percent of the population of the state in which it is located. Currently, 43 federal credit unions have a rural district charter. The new definition would open opportunities for federal credit unions seeking community charters based around a rural district in the 13 states with populations greater than 6.67 million.

The NCUA is looking at a proposal to improve the regulation of low-cost, consumer-friendly federal credit union alternatives to predatory payday loans. The NCUA’s goals are to increase the number of federal credit unions that offer these loans while retaining the responsible nature of payday alternative loans, to increase access to consumers who want and need them, and to protect the safety and soundness of credit unions that make them. This could be a valuable tool for credit unions since consumer’s demand for payday loans is not waning and many are being taken advantage of right now.  Alabama has more payday lenders per-capita than any other state.

Finally on a national scale, the Federal Credit Union Act is being looked at by a task force of credit union officials from around the country. This CUNA task force is looking at the act and seeing what needs to be updated to provide credit unions with the products and services their members need and want. Our world is changing so quickly that it’s important that we continually look at our charter on a national and state level. We have two task forces looking at the Alabama and Florida state acts to see where we can make some positive changes for credit unions.

Two other areas where we have also seen positive signs recently for credit unions is the NCUA ruling on "fleet" vehicles. The definition has been changed to five or more for purposes of member business lending. The previous definition was for two or more vehicles. John Hirabayashi, CEO at Community First CU of Florida, requested the NCUA rule on this definition. Also, Florida Office of Financial Regulation's interim Commissioner Linda Charity was recently named to the NASCUS board of directors. This is a great move for credit unions since Linda has more than 30 years of experience and understands the dual charter for credit unions.

After last week’s NCUA meeting, I’m encouraged that our federal regulator is listening to us and trying to update where it’s needed. I’m also encouraged that the NCUA is looking to ease the regulatory burden on credit unions. We have a long way to go but each step is an incremental step in the right direction.

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's Marquis to retire
After 34 years with the NCUA, the past three running day-to-day operations, David Marquis announced he's retiring at the end of the year.  Marquis has had seven different jobs with the NCUA including his first as an examiner in Baltimore. NCUA Chairman Debbie Matz said it will be hard to imagine the agency without Marquis, “Over the course of his career, Dave initiated many of the changes that enabled NCUA to protect the safety and soundness of the increasingly sophisticated credit union industry." The NCUA board will begin looking for a new executive director. 

Corporate One board adds Florida CEO
The Corporate One FCU, based in Columbus, OH, board of directors recently added two seats to represent the merger with Southeast Corporate FCU, based in Tallahassee. PowerNet CU, based in Tampa, CEO Tim McMurry was added, along with Robert Fertitta, CFO of Navigator CU, based in  Pascagula, MS. McMurry says it's a privilege to serve on the board. He had been a member of Southeast's board since 1986. 

Credit union membership surge mirrors savings growth
Regular shares continue to be where many members are parking their savings these days. Credit unions have been seeing a great up-tick in membership and member savings. Read more from CU Times.

Southeastern Credit Union Compensation Report available
The LSCU Compensation and Benefits Report is now available for credit unions. The free copy of the Southeastern Credit Union Compensation Report was emailed to participants last week. For those credit unions interested in purchasing the comprehensive report, contact LSCU HR Manager Jason Neifield at 866.231.0545 ext. 1142.

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Governmental Affairs News
This week in Alabama politics: Voters approve $437 million transfer, PAC update

Voters Approve $437 Million Transfer
Last Tuesday voters went to the polls and approved the one item on the ballot. That item was the transfer of $437 million from the Alabama Trust Fund to the state’s General Fund budget over the next three fiscal years. Turnout for the vote was higher than expected, something the proponents feared, but the measure was overwhelmingly approved 65 percent to 35 percent. The proponents were much more organized and had the backing of Gov. Bentley and other high-ranking elected state officials, but Alabama’s tradition of voting down constitutional amendments scared the supporters. In the end, the measure was approved and the predicted doom and gloom will be avoided for now.

Next for the legislature will be addressing the repayment of the transferred monies. While the amendment does not require repayment of the $437 million, many legislators have promised to introduce legislation in the 2013 Legislative Session that will do just that. The idea behind repayment is that paying the money back into the trust fund is the responsible thing to do as well as promising repayment made the vote easier for Alabama citizens. There will be many different repayment plans offered and only time will tell which one is adopted.

PAC Update
The LSCU is continuing to raise money for both state and federal political action committees. Currently, credit unions have raised $31,949 (64 percent) of the annual goal for the LSCU FEDPAC, and nearly $31,715 (70 percent) of the annual goal for ACULAC, the LSCU state PAC.

There is still plenty of time to reach PAC fundraising goals through personal contributions, payroll deduction, and Deduct-a-Buck. Credit unions can also raise money for the state ACULAC through chapter raffles and corporate contributions.

With Splash Adventure closed for the season and Six Flags to close in late October for the season, consignment ticket sales are coming to an end. Unsold tickets are to be turned in by Oct. 15. Until then, keep selling the Six Flags tickets both at your branches and online using this link with the promo code “LSCU”.

To participate in the LSCU PACs fundraising efforts or for more information, contact LSCU Grassroots & PAC Coordinator for Alabama Blake Westbrook at 866.231.0545, ext. 2164.

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: Florida election roundup, PAC fundraising crucial

Money becomes tight in Senate Races
The first campaign finance reports following the August primary are in and they show many Democrats in tight Senate races are pulling closer to their Republican opponents. In Senate District 8, Democrat Frank Bruno has out-raised Republican Rep. Dorothy Hukill by about $1,000 between Aug. 10 and Sept. 14. Heading into the final weeks of the election, Bruno has more cash on hand than Hukill, $220,000 to $155,000. In Jacksonville’s Senate District 4, Republican Aaron Bean spent more than $139,000 in the primary, leaving him with less cash on hand than his Democratic challenger, Nancy Soderberg. Bean raised $62,000 and spent $52,000 in the previous month’s reporting period. Soderberg raised about $24,000 and now leads with $86,000 cash on hand to Bean’s $50,000. One of the most competitive races in the Senate is District 34 in South Florida, which pits two incumbent senators against each other. Republican Sen. Ellyn Bogdanoff holds the fundraising lead over Democratic Sen. Maria Sachs. Bogdanoff reported raising $95,000 in the five weeks after the primary and spending $116,000. She currently has $243,000 cash in her account opposed to Sachs’ $199,000.

Wilton Simpson elected to Senate
When Democrat Joshua Smith, 22, of Hudson, dropped out of the Senate District 18 race two weeks ago, Democrats had until this past Thursday to name a replacement candidate. Thursday’s 5 p.m. deadline came and went, and therefore Republican Wilton Simpson is now Senator-elect Simpson. This is the second time Simpson has avoided a potentially tough campaign. Weeks before the primary, Republican state Rep. John Legg moved to an adjacent Senate district, allowing Simpson to take the nomination without a primary.

Judge Rejects Rep. Mack Bernard’s Lawsuit
Rep. Mack Bernard, a Palm Beach Democrat, had lost to fellow Democratic Rep. Jeff Clemens by 17 votes in the primary. Believing there were some uncounted provisional votes in his favor, Bernard filed a lawsuit hoping to gain enough votes to win the election. Leon County Circuit Judge Terry Lewis rejected the claim stating the law only allows him to determine whether election officials made a reasonable judgment when they rejected the ballots because they could not verify the signatures sent in with the ballots matched the signatures on file. Bernard intends to appeal the decision.

To read the complete Florida Politics Week in Review including highlighting 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.

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More than 120 attend South Florida legislator meet-and-greets

 

State Senate candidate Melanie Peterson (R) talks with more than 80 that attended the Palm Beach Chapter meet and greet. Peterson is running for the newly drawn seat in District 25. Twelve lawmakers and candidates were on hand for the reception. 

Tropical Financial CU CEO Rich Helber (left) talks with state senate candidate John Couriel (R) about his run for the District 35 seat. 

Helber was one of more than 120 that attended the Southernmost/Broward meet and greet. Thirteen lawmakers or candidates also attended the reception.


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Compliance Corner
League InfoSight highlight: InfoSight Users' Survey

InfoSight is referred to as Your Online Compliance Resource—but is that how you think of the site?

The annual users’ survey gives you the opportunity to show how you use InfoSight—and what you like and don’t like about it.

As you complete the survey, consider:

  • How InfoSight meets your needs
  • Information/resources that you think should be included in InfoSight
  • Whether anyone else should have access to the site (and, if so, who)

Past responses have been used to help guide discussions about enhancing InfoSight—and some of the suggestions mentioned in the survey have been implemented.

To find out more about the survey and how to complete it, 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
Register for LSCU Credit Union Philosphy in Action Workshop

Registration is now open for the Credit Union Philosophy in Action Workshop on Oct. 15-16 at CFE Federal Credit Union in Lake Mary, FL.

Modeled after the National Credit Union Foundation’s (NCUF) successful Credit Union Development Education (CUDE) program, the workshop will provide participants with a historical perspective on credit unions and cooperatives while focusing on how to implement the cooperative principles of credit unions in their day-to-day work activities.
 
The day-and-a-half workshop will be led by Lois Kitsch, national program manager for the NCUF and development education facilitator for the NCUF’s CUDE program, and Larry Blanchard, senior vice president and Washington representative for CUNA Mutual.
 
This workshop is ideal for individuals new to credit unions, individuals moving into senior management at credit unions, and anyone who needs to be re-energized about the credit union movement and the principles that make credit unions unique. It’s a very interactive workshop designed to get participants to think, individually and as groups, about new approaches to similar problems. Participants can then take the lessons learned back to their own credit unions and share them throughout their organizations.

Space is limited for the Credit Union Philosophy in Action Workshop so early registration is encouraged. The educational investment is $199 and includes three meals. Visit the LSCU Events Calendar to register. For more information, contact LSCU VP, Cooperative Initiatives Laura Vann at 866.231.0545, ext. 2181.

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Education News
LSCU Councils meeting is perfect "training for a day" - Wednesday, Oct. 3


Credit unions in the Tallahassee, North Central, Northeast, and Central Florida chapters have the perfect opportunity for a one-day workshop with the fall LSCU Councils meeting in St. Augustine, Wednesday, Oct. 3.

Drive over for the meeting at 10 a.m. and head home at 4 p.m. Great speakers and topics lined up for this meeting in all six professional disciplines!

The council meeting consists of an all-day “workshop” for specific professional disciplines: CFO, HR/training & development, lending, marketing & business development, operations, sales & service, and technology. It allows attendees to share and learn in an environment that promotes discussion and provides the takeaways that will take your credit union to the next level.

 The upcoming meeting topics include:

  • CFO: Strategic Considerations for Credit Unions:How Do We Continue to Grow with Positive Earnings
  • HR/Training and Development: Laws of Social Networks in the Workplace
  • Lending: P to the Power of 8 ("powers" to apply in lending in marketing to optimize results)
  • Marketing & Business Development: What’s Next? Emerging Trends in Social Media
  • Operations, Sales & Service: Change the Culture of Your CU by Creating a New Strategy in How You Deliver Financial Services to Members and Make Sales & Service a Priority
  • Technology: Payments Innovation through Technology

For session speakers and descriptions, registration, and hotel information, visit the Events Calendar on www.lscu.coop or click here. [ Return to Top ]

2012 Leadership Development Conference hotel group rate cutoff date is Oct. 6

A little over two weeks left to reserve hotel accommodations at the group rate for the 2012 Leadership Development Conference (LDC), Nov. 6-9. The last date to receive the group hotel rate is Saturday, October 6. Click here to view all hotel reservation information.

The Grand Hotel Marriott Resort, Golf Club & Spa in Point Clear, AL, offers a variety of free activities. Hit a bucket of range balls at the golf course during a break between sessions or network with your team by the fire pits at night. For a complete list of these activities, visit www.lsculeadership.com

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Education Calendar

Upcoming Events:

Tuesday, Sept. 25
Notary Essentials & Legalities for Credit Unions
3 to 4:30 p.m. EST - Webinar

Wednesday, Sept. 26
Reinvigorating the Bottom Line: Making Up for Lost Revenue
3 to 4:30 p.m. EST - Webinar

Tuesday, Oct. 2
HR Danger Zones: What You Need to Know to Stay Out of Trouble
3 to 4:30 p.m. EST - Webinar

To view the complete LSCU Events Calendar, click here.

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LEVERAGE News
Succeeding in 'new normal' economy requires action by CUs

Attendees of the recent Maine Credit Union League Management Roundtable were given tips about what all credit unions should be doing to educate members.

Hendrix Niemann, managing director, practice and wealth management services at CUNA Brokerage Services, Inc., engaged meeting attendees in a conversation about the “new normal” economy and its impacts on retirement.

“Who is going to tell credit union members that retirement has changed?” Niemann asked attendees. “Credit unions have the responsibility to provide financial education to their members. This means credit unions have both an opportunity and an obligation to fulfill.”

Niemann told attendees that, according to Bank Investment Consultant magazine (Sept. 5, 2012), 40 percent of Baby Boomers had less than $100,000 saved for retirement; 22 percent have nothing saved for retirement; and almost half have never even tried to figure out how much money they will need to maintain their lifestyle in retirement. Niemann indicated that these members really need help from their credit unions.

“In 1935, life expectancy was age 60. Today, retirement plans are calculated based on a possible life expectancy of age 90 for men and age 92 for women,” Niemann explained. “This means people are living much longer on their retirement savings than previous generations and, therefore, need our help to plan.”

Niemann added that retiring at age 60 or 62 is probably out of the question for most retirees if they want to maintain their current lifestyle for 25 to 30 years, unless they retiree with significant assets. Today, the prudent “new normal” retirement age is probably 67 or 70, and members usually don’t realize that they may need to keep working longer than they would like to, Niemann told attendees.

To read the complete release from CUNA Mutual, click here.

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Invest in America Newsletter available


The September Invest in America newsletter and frontline staff update includes credit union best practices, spotlights, marketing tips, and more! To view the newsletter, click here. For more information about Invest in America, click here.

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News from You
First Commerce CEO wins trailblazer award

First Commerce CU CEO Cecilia Homison was honored by Leadership Tallahassee as the Leadership Pacesetter award winner.

The Tallahassee Democrat wrote that Homison is " an individual 'blazing a trail for others to follow by engaging in community leadership activities – and achieving tangible results.'"  Homison developed the credit union’s Champions for Charity program that assists local nonprofits in raising both funds and public awareness of their programs.

Photo courtesy - Tallahassee Democrat

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Army Aviation Center opens new operations center

Army Aviation Center FCU, based in Daleville, AL, recently held a ribbon cutting for its new operations center. The building took 18 months to construct and 42 different local companies helped with the construction. 

 NewGround Construction designed the building. The company also donated $1,000 each to the Daleville Chamber of Commerce and the Ft. Rucker Family Readiness Group in Army Aviation's name. 


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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.

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