Q313 LSCU Directors Resource

League of Southeastern Credit Unions & Affiliates

Director’s Resource League of Southeastern Credit Unions

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October 2013 | Vol. 3, Issue No. 3

President’s Message All summer, the LSCU, credit unions, and their members have been letting our federal lawmakers know to Don’t Tax My Credit Union. We’ve had Don’t Tax Tuesdays on social media, emails and letter writing as noted in the League’s month-by-month plan, and a “virtual rally” held by CUNA earlier this month in Washington, D.C. About 50 Alabama and Florida credit union officials traveled to Washington, D.C. in September for our fall Hike the Hill. I want you to know that our message is being heard, but we can’t stop now.

During our visits, lawmakers’ offices told us to keep it up. Our postcard campaign has been a huge success. We printed 110,000 and have delivered more than 56,000 to Washington and to district offices thus far. The staff of each of those offices has been impressed with the volume. We need all of our credit unions and their directors to continue to push out the Don’t Tax My Credit Union message. The movement is strong because the passion members and staff have for their credit union. You are such a strong advocate for your credit union because you give of your time to make sure it succeeds. We need that same passion on this issue.

I hope to see many of you at the Leadership Development Conference on Nov. 5-8 in Point Clear, AL. This is a great conference to help you succeed in your director role. There is networking time to meet other directors and discuss issues.

One director said last year the interest rate risk education session and the networking was worth much more than the price of the conference.

Social media and directors Credit unions are urged every day to utilize social media.

They are told to start a Facebook page, Twitter feed, and Google+ account. It is a great way to communicate with members and show how you are working with the community. For many, it can be overwhelming. From a board’s perspective, you might be asking what your role is in the credit union’s social media plan.

Board member involvement in social media is mostly about strategy. It is about knowing your market, representing your community, and fine-tuning your strategic direction. A credit union’s board must recognize social media as a powerful force, be aware of the challenges, and take strategic steps to understand and correctly utilize social media.

John Oliver, president of Laurel Management Systems Inc. and a CUES Director Strategy Seminar leader in 2014, calls having this kind of social media awareness part of being “bright generalists.” “[Board members] need to have a reasonable amount of knowledge about a lot of things, and social media is one of (continued on page 2)

Save the Date

Leadership Development Conference Nov. 5-8, 2013 Tuesday - Friday Point Clear, AL Click here for more information Questions Boards Need to Ask Dec. 18, 2013 Wednesday Webinar Click here for more information CUNA GAC Feb. 23-27, 2014 Sunday - Thursday Washington, D.C. Click here for more information

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those things,” says Oliver. “It’s a responsibility to understand how things are being changed by social media. I think some people will adapt quickly and others will completely miss the boat.”

For boards, keeping the big picture strategy for the credit union is the first step. The second step is figuring out how innovative the credit union should be with technology. The third step is not getting bogged down in the day-to-day execution of the social media plan.

“Do we or do we not want to be a technologically driven financial institution?” Oliver asks. “Do we go whole hog with social media? Do we lead the edge? Those are the decisions [board members] should be making, but not what our Twitter feed should be doing on a daily basis.”

Oliver suggests bringing in guest speakers to talk to the board about social media. Board members need to get up to speed on any shifting market trends. The board should also understand each institution’s specific marketplace. Which social media outlet or outlets to use can depend on the makeup of the marketplace.

The board’s main role is to ensure the credit union is serving its membership. More and more want social media from their credit union. The board should recognize member preferences and do what it can to ensure the needs are met, while also understanding their role in making it happen.

This article was adapted from an October 2013 CUES Management Magazine article. Read the full article here.

2014 Dues Letters mailed Each fall the LSCU & Affiliates sends out a preliminary dues statement letter. It’s not a dues invoice, but gives credit unions an idea what to budget for the following year. The letters were mailed on Oct. 3. The final statement and affiliation packet will be mailed later in November.

There are no changes to the process but the League would like to emphasize that credit unions have the option to enroll in the automatic dues payment program. Enrollment streamlines the accounting processes and ensures that your credit unions’ LSCU membership continues without interruption.

Contact LSCU VP, Cooperative Initiatives Laura Vann at 866.231.0545, ext. 2181, if you have any questions.

Tax reform update While the government shutdown and debt ceiling are taking the headlines in Washington, D.C., comprehensive tax reform is still very much on the agenda. When the debt ceiling debate begins, tax reform could play a part in that discussion.

Prior to the government shutdown, staff from Rep. Dave Camp’s (R-MI) office indicated that a draft tax bill (“Chairman’s Mark”) will be released in October.

As an article in Politico titled “The influence of tax reform’s first take” noted, “When it comes to tax reform, the first draft can have a power all its own…. even if the (Rep.) Camp and (Sen.) Baucus proposals end up only being first drafts, they could dominate the debate over tax reform for the foreseeable future.

What they decide to include, and omit, from their proposals could become the new starting point in future negotiations, helping shape the outcome of any overhaul, veterans of similar efforts say.”

This means credit unions need to continue to stick with the League’s Don’t Tax My Credit Union month to month plan. In October, the plan asks for credit unions to call their lawmakers. The social media Tuesdays and the virtual Don’t Tax rally this month have made an impact on lawmakers. They are hearing the message. Credit unions need to keep up the pressure.

Incoming NCUA Region III Director to attend LDC The NCUA recently announced that Myra Toeppe will replace Region III Director Herb Yolles when he retires at the end of this year. Alabama and Florida credit unions have the opportunity to meet Toeppe before she assumes the directorship.

Toeppe is attending the Leadership Development Conference (LDC) Nov. 5-8 in Point Clear, AL. This is the perfect time to meet Toeppe and begin building a relationship with her.

She is currently the NCUA’s acting director of supervision in the Office of Examination and Insurance. She joined the NCUA in 2011 as associate regional director for operations in Region III. She has also served at the Office of Thrift Supervision and the Federal Home Loan Bank of Atlanta during her 25year government career.

LSCU’s LDC: What’s a director to do?

The Leadership Development Conference (LDC), Nov. 5-8 in Point Clear, AL, is one of the League’s signature events.

It offers many educational opportunities for credit union directors including a designated director track with 10 sessions specifically developed with credit union directors in mind.

On Wednesday in the Director’s Track, there are two concurrent Director’s Institute workshops (VAP). The VAP workshops include a Budgeting Basics for Directors workshop led by the League’s Laura Vann, and a Maximizing Board Performance workshop led by the League’s David LeNoir.

Directors are also encouraged to play in the Southeastern Credit Union Foundation Golf tournament on Wednesday.

Proceeds go to the foundation and help more credit unions get scholarships for much needed training.

For the second year in a row, the LDC offers specific asset-size roundtables so credit unions can network and share ideas. Each roundtable is facilitated by a credit union professional to keep the discussion moving and focused on issues that matter most to them.

Thursday and Friday include LSCU & Affiliates President/ CEO Patrick La Pine, NCUA Region III Director Herb Yolles, body language expert Jan Hargrave, and the CUSC of Alabama Annual Meeting. The education sessions include Smart Board Meetings and Who Do You Think You’re Lending To? Directors are free to attend any session, but these two deal specifically with the board’s role.

To view the complete list of sessions including the Director’s Track click here. To register for the LDC, visit the LDC website.

Save the date: 2014 advocacy events

Mack MacVicar, director at City County CU of Fort Lauderdale (left), speaks with Rep. Alcee Hastings (D-FL) during the September Hike the Hill.

Hike the Hill A Success Nearly 50 credit union advocates from Alabama and Florida met with all four senate offices and 28 congressional offices during September’s LSCU Hike the Hill. It was a packed schedule of meeting with lawmakers and their staff, as well as the NCUA. The Don’t Tax My Credit Union message was very well received. While most agreed that taxing credit unions is not a good idea, there was a consistent message heard in every meeting: “keep doing what you are doing!” Being proactive rather than reactive is the best way to get something done in Washington, and it looks like the strategy of being out in front of the issue is working.

The group also met with NCUA board members Mike Fryzel and Richard Metsger at the NCUA headquarters. It was the first League briefing for Metsger. He and Fryzel talked about what the agency has been doing this year and the regulatory burden from the CFPB. Last year Alabama and Florida credit unions met with the CFPB during Hike the Hill.

Directors are encouraged to save these important advocacy dates in 2014. The more directors that take part in the League’s grassroots efforts, the more progress that can be made. Lawmakers appreciate hearing from volunteers who give of their time to see the industry succeed.

Alabama State GAC Feb. 4-5, 2014 Montgomery, AL CUNA GAC Feb. 23-27, 2014 Washington, D.C.

Florida State GAC March 25-26, 2014 Tallahassee, FL New NCUA Board Member Richard Metsger speaks with Alabama and Florida credit unions during Hike the Hill.

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