How LSCU & Affiliates is Delivering - Mid-Year

A 2013 Mid-Year Report

How LSCU & Affiliates is Delivering for Credit Unions

League of Southeastern Credit Unions & Affiliates

Governmental Affairs Don’t Tax My CU: The League has been a national leader in CUNA’s Don’t Tax My Credit Union campaign. We were the first League to put together our own month-by-month grassroots plan and have been a sounding board of ideas for other leagues around the country. Coupled with a cooperative issues campaign, the League is truly making a difference in these efforts and will continue to work on this as long as comprehensive tax reform is on the table in Congress.

MBL Legislation: Member Business Lending (MBL) legislation was filed in the House and Senate that would raise the MBL cap from 12.25 percent of total assets to 27.5 percent. H.R. 688 and S. 968 remain an important legislative priority for the League. Currently there are eight House co-sponsors from Florida: Reps. Brown, Castor, Grayson, Hastings, Miller, Posey, Wilson and Young. Florida Sen. Bill Nelson is a co-sponsor of the Senate bill. While there are no co-sponsors from Alabama, we continue to have discussions with all members to gain support.

Supplemental Capital: Legislation to allow well capitalized credit unions to accept alternative forms of capital has also been filed in the House.

HR 719, by Rep. Peter King (R-NY), has four Florida co-sponsors: Reps. Hastings, Miller, Posey and Wilson. However, the most significant cosponsor on the bill is Rep. Spencer Bachus (R-AL), chairman emeritus of the House Financial Services Committee. We are hopeful that Rep. Bachus’ support will lead to other members of the Alabama delegation following suit.

Privacy Notices: A bill to remove the burden on financial institutions to send out annual privacy notices, if they remain unchanged from previous years, is moving quickly. HR 749 is co-sponsored by Florida Reps. Bilirakis, Hastings, Miller, Nugent, Ross, Wasserman Schultz, and Wilson.

Alabama Rep. Spencer Bachus is also a co-sponsor. The Senate companion bill, S. 635, is co-sponsored by Sens. Sessions (R-AL) and Nelson (DFL). The Senate bill is slightly different than the House version, but both sides agree to the differences which should allow for easy passage.

CFPB Amends Ability-to-Repay Standards, FASB Seeks to Change Accounting Standards, and FFIEC Joins the Social Media Movement: The League commented to various agencies on important credit union issues. This included a response to the CFPB’s amending of the Abilityto-Repay Standards. The League, on behalf of its members, was generally supportive of the revisions to the rule. The League provided views on a proposal to change current accounting standards used to report expected credit losses put forth by the Financial Accounting Standards Board (FASB). The League stated its strong concern that the proposal would, in the long run, prove counterproductive to credit unions who rely on critical financial data to make decisions for the future. Finally, the League advocated the creation of basic standards to better manage the expansion and use of “social media” by financial institutions after the Federal Financial Institutions Examination Council (FFIEC) asked for comments.

Regulator Meetings: A League priority is to have regular meetings with regulators at the state and federal levels. The League met several times with each regulatory body, including meetings in Miami with the CFPB and several meetings with the Alabama Credit Union Administration and Florida Office of Financial Regulation. The League will continue to set these meetings up and look to have credit unions involved when possible.

NCUA meeting in Orlando: The League organized a dinner in Orlando with NCUA Board Member Mike Fryzel, area credit unions and the League’s GA Staff. The meeting was very positive and offered an opportunity for credit unions to voice concerns to the NCUA in a casual environment.

In Montgomery: State Act Legislation: The League introduced legislation to update and modernize part of the Alabama State Credit Union Act. SB 371 by Sen. Slade Blackwell (R-Birmingham) and HB 500 by Rep. Greg Wren (R-Montgomery) update the definition of a credit union, expand a credit union’s power to expel members, provide additional liability coverage for board members, and provide penalties for the fraudulent use of the term “credit union,” among other changes. SB 371 passed the Senate Banking & Insurance Committee but not a full vote. This bill will be filed next year.

Public Deposits: Legislation to allow Alabama credit unions to become “qualified public depositories” was not introduced during the 2013 legislative session. However, much of the session and time after has been spent meeting with lawmakers and discussing the issue and its importance to credit unions. Legislation that gives credit unions the ability to accept public deposits will be filed again in 2014.

Electronic Lien and Title (ELT): Legislation was filed requiring the Alabama Department of Revenue to establish a mandatory electronic lien and titling system for motor vehicles in the state. HB 248 by Rep. Steve Hurst (R-Munford) was supported and worked by the League during the beginning of the 2013 session. While there was slight opposition from title loan operations, the Department of Revenue announced shortly after introduction of the legislation that it would implement an electronic system by the end of the year. Passage of this legislation was not pursued after this announcement; Its introduction forced the department’s hand to do what many other states had already done.

In Tallahassee: Public Deposits: HB 251 and SB 918 were filed this year. The bills would have allowed credit unions to serve as qualified public depositories in Florida. The House bill, sponsored by Rep. Bill Hager (R-Boca Raton), was temporarily postponed in the House Insurance & Banking subcommittee, and subsequently never taken up again. Similarly, the Senate bill, sponsored by Sen. Rene Garcia (R-Hialeah), was not heard in the Senate Banking & Insurance committee after being temporarily postponed earlier in the session. (continued on page 2) For more information about affiliation with the LSCU, contact VP, Cooperative Initiatives Laura Vann at 866.231.0545 ext. 2181.

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A 2013 Mid-Year Report

How LSCU & Affiliates is Delivering for Credit Unions (Governmental Affairs continued)

League of Southeastern Credit Unions & Affiliates

Mortgage Foreclosure Relief: HB 87 passed the House on April 29 and the Senate on May 3. The bill provides several changes to the state’s foreclosure laws in an effort to expedite the process while still providing adequate consumer protections. The bill was approved by the governor on June 7 and became effective on that date.

Financial Literacy in Schools: Signed by the governor on April 22, SB 1076 creates certain funding incentives to increase the likelihood that educational programs in Florida’s public schools, colleges, and universities will better prepare students for future occupations and careers.

Specifically, financial literacy will be included in high school graduation requirements, as part of the required credit in economics, and includes an emphasis on entrepreneurship in the career education and planning course in middle school.

Campaign Finance: After much discussion on campaign finance reform, the House and Senate found a compromise, setting the individual contribution rate at $1,000 in a primary and $1,000 in general elections for legislative and other local races. For statewide campaigns, the limit is raised to $3,000. Committees of continuous existence are eliminated, but candidates or organizations can have “political committees” which can collect money and spend it directly on advertising or other campaign expenses for a candidate. Gov. Scott signed the bill into law on May 1.

Education LSCU Annual Convention and Exposition (AC&E): Nearly 1,100 credit union executives, guests and exhibitors attended the AC&E. The exhibit hall had more than 120 booths making it one of the largest shows among credit unions. There were 18 educational breakout sessions and a Governmental Affairs luncheon with over 100 attendees. New this year were CEO and Director’s Roundtables that were facilitated by peers.

LSCU/CUES CU Executive Dialogue: In March, the second LSCU/CUES Credit Union Executive Dialogue was held in Miami. The large credit union event saw attendees from Alabama and Florida, as well as nine other states and Canada. The event promotes open dialogue among peers, as well as facilitated discussions. The 2014 CU Executive Dialogue will be held in Bonita Springs in March.

SCC Keeps Growing: The League’s Supervisory Committee Conference has nearly doubled in size over the past three years. In 2013, more than 120 officials from 44 credit unions attended the two days in Destin. The SCC equips directors with training and education to perform their duties.

Education Advisory Committee: An Education Advisory Committee was formed so the Education Department can work closer with Alabama and Florida credit unions. The committee makes recommendations regarding specific strategies and topics for educational events. The goal is to assist in maximizing participation and provide educational events and resources that meet the needs of our member credit unions.

Webinars Remain Hot: Credit unions have had 93 webinar opportunities through the first half of the year. Attendance has been record breaking with more than 930 attendees, including the 12 pack where credit unions that attend 12 webinars get one free. This is nearly a 50-percent increase in the number of webinars and attendees from 2012.

Cooperative Initiatives Credit Unions Re-affiliating: Welcomed newly affiliated credit unions Brewton Mill FCU, City of Birmingham General Employees CU, Phenix Pride FCU, SRI Employees FCU, Compass Financial FCU, Country FCU, Electricians’ Local 349 CU, Everglades FCU and South Atlantic FCU to the LSCU. The affiliation rate in Alabama is 82 percent and the affiliation rate in Florida is 85 percent.

SAS Program Participation: Two conferences and a roundtable were held, attracting representatives from 46 SAS credit unions. To date, 35 percent of eligible credit unions have utilized their $500 SAS initiatives account. The Cooperative Initiatives team has made 244 face-to-face visits with SAS credit unions so far this year.

Chapter Development: Hosted Chapter Leaders’ Retreat with 18 of 19 chapters participating. The group networked, gained information on chapter best practices, and learned more about PAC fundraising, grassroots advocacy, and Southeastern Credit Union Foundation activities.

Scholarships Awarded: The Southeastern Credit Union Foundation (SECUF) awarded $35,775 in professional development scholarships to officials from 29 credit unions.

Wrapped and Ready: The SECUF mobile branch, donated by Pen Air FCU, has been wrapped with a credit union message and it’s ready in case of a disaster. Credit unions needing assistance should contact SECUF Director Leonard Parkhurst.

SECUF Recognized: The SECUF’s efforts on the “leave behind” project were recognized and honored during the 2013 CUNA GAC, including a video.

(continued on page 3)

For more information about affiliation with the LSCU, contact VP, Cooperative Initiatives Laura Vann at 866.231.0545 ext. 2181.

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A 2013 Mid-Year Report

How LSCU & Affiliates is Delivering for Credit Unions

League of Southeastern Credit Unions & Affiliates

International Partnership: In April, eight credit unions hosted Costa Rican interns as part of WOCCU’s International Credit Union Leadership Program. In June, four credit union leaders from Alabama and Florida participated in an internship program in Costa Rica to understand how Costa Rican credit unions serve underserved populations and support their communities through member education and other special projects.

Financial Education: The League, in conjunction with the Southeastern Credit Union Foundation and the National Credit Union Foundation (NCUF), launched the FiCEP (financial counseling certification) program with 48 participants representing 18 credit unions. The inaugural program combines self-study with webinars and two face-to-face meetings.

Young Professionals Group Growing: More than 72 young professionals are participating in professional development and community service activities through the League. A CU Philosophy in Action session was presented at the AC&E and chapter groups are scheduling meetings.

Grant Awarded: The Cooperative Initiatives team was awarded a grant from the NCUF for the League’s Young Professionals Group to implement Biz Kid$ on a chapter level across both states. The grant includes the purchase of all materials and a training summit. This will provide much needed financial literacy for kids in Alabama and Florida.

Communications Brand Refresh: Mid-year, the LSCU & Affiliates added ACUA and FCUA to its family of brands. The Alabama Credit Union Association (ACUA) and Florida Credit Union Association (FCUA) will be used exclusively by the Governmental Affairs team and Communications for advocacy. Lawmakers understand association better than league and most already see our GA team as representing credit unions from their state.

Cooperative Image Campaign Switches Gears: The LSCU & Affiliates showed its flexibility by moving the Cooperative Image Campaign to an “issues” campaign focused on Don’t Tax My Credit Union. The campaign is ready to launch at the best possible time during the tax fight. Credit unions still have the opportunity to contribute to the campiagn. A credit union in Idaho and a chapter of credit unions in Texas have franchised the LSCU’s TV ad.

LSCU Gone Mobile: New in 2013 are mobile apps for the LSCU & Affiliates signature events. The League has developed a mobile app for the Alabama State GAC, the Florida State GAC, the AC&E and the Supervisory Committee Conference. Additionally, an app will be developed for the Leadership Developement Conference in November. The mobile apps put the conference at your fingertips, while also allowing you to set your schedule to make the experience more robust.

Credit Unions in the Press: The League has helped put credit unions in Alabama and Florida in 27 mainstream stories on public deposits and quarterly statistics. The trades have written 48 stories about Alabama and Florida credit unions, the League and LEVERAGE. The total media outreach has been 2.1 million readers, listeners and viewers.

Recognition: The League’s Communications and Marketing teams were recently awarded seven Hermes Creative Awards. The Cooperative Image Campaign, Signal Magazine and JMFA Direct Mail piece each won top honors, while the CUSC of AL video and Leadership Development Conference were chosen for second place. The LEVERAGE website and Florida GAC Direct Mail piece received honorable mention.

LEVERAGE Tagline Updated: Mid-year, LEVERAGE updated its tagline to “Your Advantage.” The new tagline reinforces that LEVERAGE has products and services to help streamline your operations and that it is your advantage over your competition.

Audit and Consulting: In 2013, LEVERAGE began promoting its newest service; preparation and filing of Form 990 Tax Exempt Status. Form 990 is an annual financial tax return required to be filed with the IRS by most organizations exempt from income tax under section 501 (c) to help prevent abuse and enforce financial accountability. Credit unions with a Federal charter are not required to file this form.

Human Resource Consulting: LEVERAGE rebranded and launched its HR Services solution. HR Services performs executive searches for credit unions below $100 million in assets in Alabama and Florida with fees that are significantly lower than national search firms. Larger asset credit unions are referred to O’Rourke and Associates. Earlier this year, HR Services helped place the new CEO at Seminole Schools FCU. Sprint Discounts for Members: The LEVERAGE Product Management and Transaction Services staff worked together, along with Sprint, to facilitate the member verification process. To ensure integrity of the program, members must periodically verify credit union membership to keep the discount. New Sprint customers are required to verify credit union members within 30 days of activation. Current Sprint customers are required to provide proof of credit union membership when upgrading their device if it has been 20-plus months since their last validation.

For information about affiliation with the LSCU & Affiliates, contact VP, Cooperative Initiatives Laura Vann at 866.231.0545 ext. 2181.

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