LSCU eSignal Weekly
LSCU eNews Weekly June 3, 2013
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LSCU eNews Weekly
In This Issue
President's Point
Bank customers looking to switch this year
LSCU Top Headlines
This week's top League headlines
Governmental Affairs News
This week in Alabama politics: update on Congressional Seat and Democratic chairman search
This week in Florida politics: mortgage foreclosure bill update, concerns over FL hurricane insurance providers
Washington Update: ballot scandal, congressional update, and more.
Compliance Corner
League InfoSight highlight: permissible and impermissible investments
Video: Meet OFR Commissioner Drew Breakspear
CUNA Regulatory Advocacy Report - week of June 3, 2013
CUNA offers free 'Pressing Issues' audio conference on June 5
Compliance calendar and training
AC&E News
Register today for the AC&E offsite guest tour of Kennedy Space Center
Audio podcast: John Foley on accelerated performance
Don't forget to register for the GA Luncheon at the AC&E
Education News
Mandatory Compliance Series begins Wednesday, June 5
Cooperative Initiatives News
CUNA announces theme for International Credit Union (ICU) Day
LEVERAGE News
Visit the LEVERAGE Winner's Circle (booth #507) at the AC&E
LEVERAGE adds designation Credit Union Enterprise Risk Management Expert
News from You
Tampa Chapter volunteers at All Children's Hospital telethon
EMPLOYMENT
View available credit union jobs
In This Issue
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President's Point

Bank customers looking to switch this year

First quarter financial statistics are starting to be released for credit unions and banks. Last week the Federal Deposit Insurance Corp. (FDIC) announced that banks saw a $40.3 billion profit; the largest quarterly profit ever recorded for banks. This also represents a 15-percent increase from the first quarter of 2012. So, how is it that banks are constantly telling the press and lawmakers that credit unions have an unfair advantage by not paying taxes? It doesn’t seem exactly accurate does it?

The FDIC says that many banks are seeing more quality loans, so they are moving loan-loss provisions over and that is one of the biggest reasons for the profit growth. The loan-loss provisions are down 23 percent, while net charge offs are down 27 percent. A couple of analysts said that the numbers are good but that loans are still lackluster and that shows that the economy still has room for improvement. This of course begs the question, “If banks are seeing record profits, why does lending remain stagnant and why are they continuing to lobby against member business lending and public deposits for credit unions?”

While the banks try to bask in the glow of this news, a World Banking Report was released stating that up to 50 percent of bank customers may leave their bank this year. Ten percent said they are likely to leave while 40 percent said they are unsure if they will stay. Think about that. Bank of America has 20 million customers. Two million could be in play this year for a new financial institution. Why not join a credit union?

Customer service remains a top priority for consumers and the banks continue to lag behind credit unions. Right now it is doubly important for credit unions to concentrate on member service. Innovation is also a major factor in customers leaving their bank. They want their new financial institution to have a robust array of products including mobile technology. It is also important that your credit union aggressively markets these services. Customers don’t know what they don’t know. You need to let them know you have everything they are looking for in a financial institution.

We should have a greater understanding of what the first quarter numbers look like for Alabama and Florida credit unions this week. For five years, we have been saying that credit unions have a great opportunity because of the financial crisis. Well, banks have had 15 straight quarters of positive growth and now are in record territory. The good news is that opportunity still exists even with banks showing profitability. Our opportunities lie in our ability to raise awareness of credit unions and how we are different. We need to work together to raise this awareness with consumers and lawmakers. As you can see, the banks arguments against us is becoming more and more hollow.

Where's Patrick? This week I will be in Birmingham but with a little different twist. My wife and daughter will be with me since the school year ended Friday in Tallahassee. I wanted my family to come up and experience the city I love so much. They have not been up with me since 2010. The bulk of my time this week will be preparing for board meetings and my AC&E preparations. On Thursday, the CUSC of Alabama board meets. You can see my schedule for the next two weeks by clicking on Where's Patrick? [ Return to Top ]

LSCU Top Headlines
This week's top League headlines

Alabama Business Magazine features credit unions
For those credit unions that do not get Alabama Business Magazine, the May issue featured credit unions. There were stories about the fight for public deposits and the member business lending issue. A small business is featured that could not get a loan through a bank so the owner went to Alabama Telco. This is a great issue for credit unions. You can read the stories by visiting the LSCU Press Room

NCUA releases new video
The NCUA has a new video featuring the services of the Office of Small Credit Union Initiatives. This office helps small credit unions and low income designated credit unions meet the needs of their communities. The video features an overview of services as well as how to apply for grants and loans through the office. You can watch the video by clicking here. 

WinSouth CU says texting scam ongoing
WinSouth Credit Union in Gadsden, Ala. continues to be hit by a texting scam and, additionally, by the recent Mapco hack. Visit LSCU's Top Stories to read more. [ Return to Top ]

Governmental Affairs News
This week in Alabama politics: update on Congressional Seat and Democratic chairman search

First congressional seat update
With the recent resignation of Rep. Jo Bonner (R), who is taking a position with the University of Alabama, candidates and potential candidates are lining up to be Alabama’s next representative from the first district. A few people have already confirmed they will be running and many more are on the fence. To view a list of individuals running, potentially running, and not running for the seat click here

Democrats still looking for a chairman
The Alabama Democratic Party is still searching for its next leader after Chairman Marc Kennedy left to form a new Democrat group. Elections were scheduled to be held last week, but were postponed for various reasons. The Democratic Party in Alabama has been subject to numerous news reports recently, mainly dealing with the sudden departure of Kennedy and the large amount of debt the party has on its books.

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.
[ Return to Top ]

This week in Florida politics: mortgage foreclosure bill update, concerns over FL hurricane insurance providers

Mortgage foreclosure bill sent to the governor
Gov. Rick Scott was presented with 49 bills on May 28, including HB 87 by Rep. Kathleen Passidomo (R-Naples), which attempts to speed up the foreclosure process in Florida. The governor has until June 12, 2013 to act on the bill.

Gov. Scott and smaller government
The budget Gov. Rick Scott just signed is the largest in Florida history and to hear it from the governor, there's more money but fewer bureaucrats. There are officially 5.2 state workers per 1,000 Floridians, which is the fewest in 13 years. But it is worth noting the trend was going down even before Scott became governor. Read more here.

Can Florida insurers survive a busy hurricane season?
Despite Florida having no major hurricanes in the past seven years, one-third of the insurance companies that have taken over policies previously held by Citizens Property Insurance Corp. went under, and cost taxpayers $400 million. As Citizens intensifies its efforts to turn over policies to smaller insurers, or what industry officials call "takeout" policies, there is a growing fear that the young, untested companies will not be able to withstand the hurricane season, which began Saturday. You can read the full story in the Tampa Bay Times.

If you have any questions on any of the legislative issues mentioned above contact LSCU Director, Legislative Affairs, Jennifer Martin, 866.231.0545 ext. 1150. Get in on the conversation and get developing news and legislation updates from GA on Twitter and Facebook.

[ Return to Top ]

Washington Update: ballot scandal, congressional update, and more.

Garcia’s office embroiled in scandal
The Miami Herald reported on June 1 that Rep. Joe Garcia (D-FL) attempted to control the damage inflicted on his office a day earlier, when he dismissed his chief of staff for apparently orchestrating a scheme to submit hundreds of fraudulent absentee-ballot requests.

Meanwhile, Republicans nationwide and closer to home pummeled Garcia, questioning whether the first-term congressman was coming clean on his campaign’s involvement in the ballot scandal. In a news conference held at his West Miami-Dade office, Garcia, maintained that he had no knowledge of the failed plot during last year’s primary election.

“I cannot stress how angry I am at these events,” Garcia said.

To read the full Miami Herald report click here.

Congressional update
After a week-long district work period, the House and the Senate are both in Washington this week to begin a work period that will take them up to Independence Day. The House is expected to spend much of the next two months working on spending bills, defense authorization, immigration reform, and reauthorization of the No Child Left Behind Act. The Senate is expected to finish the Farm Bill this week and then turn to immigration reform, which proponents hope will be completed by Independence Day. 

On the committee side, a number of hearings in the Finance Committee, Ways and Means Committee, and Oversight Committees related to the IRS scandal are expected; however, the League and CUNA do not expect this issue to distract tax policy writers from their efforts on comprehensive tax reform. The Senate Finance Committee is expected to continue to discuss staff-prepared options papers in private meetings; the Exempt Entities paper is expected to be discussed either this week or next. Leaders on the House Ways and Means Committee have advised us that they continue to put together their tax bills as well. 

Governmental affairs is also paying close attention to developments in the House Financial Services Committee. There is an effort to put together a bipartisan regulatory relief bill (or bills) with the intent to take them through the committee. As you will recall, CUNA submitted 35 proposals for regulatory relief at a hearing before the Financial Services Committee in April. The League and CUNA have also made it clear with the committee that credit unions have very serious concerns with any regulatory relief bill that included a Basel III exemption for small banks but did not include supplemental capital authority for credit unions.    

Committee schedule
To view a complete list of committee meetings being followed by governmental affairs this week click here.    

For more information or questions on federal legislation, contact LSCU VP of Governmental Affairs Jared Ross at 866.231.0545 ext. 1012. [ Return to Top ]

Compliance Corner
League InfoSight highlight: permissible and impermissible investments

The NCUA Rules and Regulations contain specific permissible and impermissible investments and investment activities for federal credit unions.

  • Which investment activities may federal credit unions engage in?
  • What investments and investment activities are prohibited?
  • Which investments and activities are grandfathered under Part 703.18 of the NCUA Rules and Regulations?

For detailed answers to these questions, visit the Permissible and Impermissible Investment Activities topic on the Investment channel of 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. [ Return to Top ]

Video: Meet OFR Commissioner Drew Breakspear

Florida Office of Financial Regulation (OFR) Commissioner Drew Breakspear has been on the job since November of 2012. He recently sat down with the LSCU to answer questions about how credit unions fit in the financial picture in Florida. You can see the video in the LSCU Video Room

In the video, Commissioner Breakspear talks about how well credit unions are serving Floridians. He was also candid when asked how credit unions can foster a better relationship with OFR. He said that he felt the relationship was good and that he viewed the relationship as a partnership since both had the same goal of providing Florida residents with the financials needs they desire. 

If you have any trouble viewing the video, contact LSCU VP, Communications Mike Bridges at ext. 1022.  [ Return to Top ]

CUNA Regulatory Advocacy Report - week of June 3, 2013

Each week CUNA provides credit unions a wealth of information through its Regulatory Advocacy Report. The report highlights for the week of June 3 include:

  • CUNA files very strong letter with FASB – credit loss proposal will hurt credit unions 
  • CUNA seeks comments on derivatives proposal
  • CFPB adopts changes to ability-to-repay rule

          To read the most recent CUNA Regulatory Advocacy Report, click here
          [ Return to Top ]

          CUNA offers free 'Pressing Issues' audio conference on June 5

          The audio confrence will feature legislative developments, such as:

          • Tax reform and the threat to the credit union tax status and,

          • CUNA's efforts in the U.S. Congress to provide regulatory relief to credit unions.

          On the regulatory side, the program will discuss issues, such as:

          • The Consumer Financial Protection Bureau's (CFPB's) mortgage lending regulations; the status of regulations that become effective June 1; prohibition on financing credit life/disability, debt cancellation products' prohibition on arbitration clauses; escrow accounts for higher-priced mortgages; as well as the status of regulations to be effective January 2014,
          • A Financial Accounting Standards Board proposal on credit losses and,

          • National Credit Union Administration issues, such as prompt corrective action, the new proposal on derivatives authority and a quick overview of NCUA actions expected in the second half of 2013.

          The final two "pressing issues" session are slated for Sept. 5 and Dec. 5. Topics for those audio conferences will be announced as the programs are finalized.

          Use the resource link for registration and more information.

          http://www.cuna.org/Training-And-Events/Webinars,-Audios-And-eSchools/Products/Pressing-Regulatory-and-Compliance-Issues-audio-(06-05-13)/
          [ Return to Top ]

          Compliance calendar and training
          July 2013

          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. [ Return to Top ]

          AC&E News
          Register today for the AC&E offsite guest tour of Kennedy Space Center

          Join other AC&E guests for a tour of the Kennedy Space Center, NASA’s launch headquarters, on Thursday, June 13. Tour NASA’s launch and landing facilities, experience live shows and jaw-dropping encounters with massive rockets.

          After traveling to KSC from the JW Marriott, guests will have free time to explore the Visitor Complex, from live action theatrical shows to an educational Astronaut Encounter briefing.

          This is a separate ticket event at the AC&E. For more information and to register, visit the AC&E website and click on Credit Union Attendees. [ Return to Top ]

          Audio podcast: John Foley on accelerated performance

          When you think of high performance, what comes to mind? Speed and precision. The Blue Angels embody both. Former Blue Angels lead solo pilot John Foley will be the keynote speaker at the AC&E General Session on Friday, June 14. In a new LSCU audio podcast, Foley says that credit unions can learn from his experiences flying 36 inches from another jet. 

          What Foley will show credit unions is that incorporating some of the accelerated performance techniques of the Blue Angels will take their credit union to another level. Foley will give credit unions tangible tools they can take with them. His high energy is infectious and credit unions will enjoy his unique thoughts. 

          Visit the LSCU Audio center to access the podcasts. Contact LSCU VP, Communications Mike Bridges at 866.231.0545 ext. 1022 if you have any trouble listening to the mp3.  [ Return to Top ]

          Don't forget to register for the GA Luncheon at the AC&E

          There is still time to register for this year’s Governmental Affairs Luncheon at the 2013 Annual Convention & Exposition. The luncheon will be on Thursday, June 13 from noon to 1:30p.m. The luncheon is onsite at the JW Marriott in Mediterranean Rooms 6-7 and will feature Reid Wilson, editor-in-chief of the National Journal’s The Hotline.

          This is a separate ticketed event. Tickets are $55 and you can either pay at the door or online. To register and pay online, click here. If you want to register and pay at the door please contact LSCU VP of Governmental Affairs, Jared Ross at 866.231.0545 ext. 1012. [ Return to Top ]

          Education News
          Mandatory Compliance Series begins Wednesday, June 5

          The Mandatory Compliance Series: Compliance Rules Lenders Must Know begins this Wednesday, June 5.

          The pace of changes in lending regulations is unprecedented. Do you know which regulations require annual training? What regulations have been changed by the CFPB because of the Dodd-Frank Financial Reform Act? Which regulations cause the most-frequent problems in passing compliance exams? What should lenders understand about money laundering and suspicious activity in the loan process?

          This session will cover everything from Regulation B to Z and outline specific disclosures and timing requirements. Attendees will receive checklists and guidance to help lending staff work smarter, not harder. Click here to learn more about this session. 

          Don’t Miss the Other Mandatory Compliance Series Webinars!
          Sign up for the entire series and receive 6 webinars for the price of 5!
          Learn more about the Mandatory Compliance Series.

          [ Return to Top ]

          Cooperative Initiatives News
          CUNA announces theme for International Credit Union (ICU) Day

          CUNA announced that the U.S. theme for International Credit Union (ICU) Day in 2013 is "Credit Unions Unite for Good," which conveys the movement's shared vision of Americans choosing credit unions as their best financial partner.

          The announcement was made in conjunction with World Council of Credit Unions' announcement of the 2013 ICU Day theme, "Credit Unions Unite for Good: A Better Way," emphasizing the benefits of cooperation among credit unions worldwide.

          ICU Day is held annually on the third Thursday of October. Both themes will be celebrated this year on Oct. 17.   

          For the official ICU Day graphics, promotional materials, and additional celebration tools for U.S. credit unions, visit CUNA's link. For more information about World Council and the worldwide celebration of ICU Day, visit the World Council link.
           
          For questions about ICU Day, contact Joanne Sepich at icuday@cuna.coop, jsepich@cuna.coop, or 800-356-9655, ext. 4867. [ Return to Top ]

          LEVERAGE News
          Visit the LEVERAGE Winner's Circle (booth #507) at the AC&E

          Stop by the LEVERAGE Winner’s Circle (booth #507) during one of the three Exhibit Hall Exchange sessions at the 2013 AC&E. During your visit, get your picture taken with NASCAR drivers Carl Edwards, Dale Earnhardt Jr., and Danica Patrick in their racing jackets. One lucky attendee will win Danica’s GoDaddy.com racing jacket. The other two jackets will be auctioned off as part of the Silent Auction.

          The LEVERAGE booth also features Sprint program renewals and a comprehensive menu of products and services that help credit unions leverage buying power, resources, industry knowledge, and relationships, giving your credit union reduced costs, maximized financial results, and best-in-class industry solutions. [ Return to Top ]

          LEVERAGE adds designation Credit Union Enterprise Risk Management Expert

          Keith McMurtrie, the vice president of audit and consulting at LEVERAGE, recently earned the designation of Credit Union Enterprise Risk Management Expert. This designation demonstrates the commitment to training, self-improvement, and the credit union movement possessed by Keith and the entire LEVERAGE team.

          Keith is the fourth LEVERAGE Audit and Consulting auditor to receive additional training designations. Last fall two auditors received Credit Union Compliance Expert (CUCE) designations from CUNA and a third received her Bank Secrecy Act Compliance Specialist (BSACS) from CUNA.

          This means when a credit union utilizes LEVERAGE Audit and Consulting services they are getting the most knowledgeable auditors available. If you would like to know more about LEVERAGE Audit and Consulting, contact a Business Development Consultant. [ Return to Top ]

          News from You
          Tampa Chapter volunteers at All Children's Hospital telethon

          Members of the Tampa Chapter recently volunteered at the All Children's Hospital telethon, This year's telethon, "Thirty Years of Miracles," celebrated a 30-year tradition of raising funds and friends for All Children's Hospital. $4,154,917 was raised at this year's telethon and will support All Children's programs and facilities for youngsters.

          [ Return to Top ]

          EMPLOYMENT
          View available credit union jobs

          To view available jobs posted by credit unions on the LSCU website, visit the LSCU CU Jobs Center. Click the link at the top of the CU Jobs Center page to view jobs at the LSCU. [ Return to Top ]

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