Signal Magazine by LSCU MarComm

The Magazine of the League of Southeastern Credit Unions

INSIDE LSCU Increased Advocacy Efforts Enhanced Member Relations Innovative Communications Informative Education Events Expanded Business Solutions

Winter 2010

Volume 1: Issue 1

Table of Contents

Editor Amy Jowers Contributors: Mike Bridges Justin Thames Bill Berg Ashley Mobley Laura Vann Anita Stoumbelis Production: Detra White April Brown Letters to the Editor may be submitted at submissions@lscu.coop.

COMING SOON How a credit union is helping its community through kindness. 2

Message from the President

CU President Profiles

Advocacy

Legislator Profiles

Compliance

Cooperative Initiatives

League Education

Communications

League News

Business Solutions

Directory

HIGHLIGHTS 8 | Legislative Proﬁles

10 | Compliance

18 | League News

Alabama’s Representative Spencer Bachus and Florida’s CFO Alex Sink are profiled.

Information on regulator-focused Allowance for Loan & Lease Losses Account.

Deadlines for LSCU Awards and an overview of LSCU’s first CUNA GAC with pictures from the event.

A Magazine of the League of Southeastern Credit Union

SIGNAL: Vol. 1, Issue 1

LSCU

Message from the President After months of planning and consolidation meetings, the League of Southeastern Credit Unions (LSCU) debuted legally and structurally in January. Organizational change is never easy, but as we look back on the first quarter, I am proud of the hard work and commitment League staff has shown to enhance our service to member credit unions. It is clear to me that League staff members are starting to hit their stride under a new strategic plan and structure that begins and ends with superior member service. The new LSCU logo visually signifies forward movement and high performance for our member credit unions. The LSCU will take the strength of the two combined leagues and offer our member credit unions services that will be second to none. Our Web site, www.lscu.coop is already one of the best in the country. With this issue, the LSCU debuts its new quarterly magazine, Signal. It’s not just a name we liked, but a name that symbolizes what we aim to achieve at the LSCU. We want to be the trusted resource for our members and a forward-thinking association that leads our member credit unions through advocacy and information. This publication and our electronic weekly newsletter, eSignal (formerly eNews), will serve to signal members of the latest and greatest information. As you read this issue, you will be introduced to the services you can expect from the LSCU. Governmental Affairs, Education, Communications, and Cooperative Initiatives outline their new visions while LEVERAGE, the new identity of our combined Alabama and Florida Service Corporations, gives an inside look into its name change and future product and service offerings. The first quarter of 2010 was a busy one for credit unions. New regulations were imposed for credit card issuers, member business lending legislation gained steam on Capitol Hill, and the NCUA outlined its proposals for regulatory reform. I want to say thank you to the 113 credit union officials that attended the CUNA GAC in February. The Hill visits during the GAC prompted an additional five members of the Florida Congressional delegation to add their name to HR 3380, the Promoting Lending to America’s Small Businesses Act of 2009. Rep. Spencer Bachus (R-AL), the Ranking Republican on the House Financial Services

Patrick La Pine, President & CEO League of Southeastern Credit Unions

Committee, told us at the GAC that “credit unions didn’t cause the problem and if there is any institution that has been exonerated, it’s the credit unions.” Consumers want an alternative to a bank and we are providing that as credit unions in Alabama and Florida added 74,000 new credit union members in 2009. We need to keep this momentum going and let

Organizational change is never easy, but as we look back on the first quarter, I am proud of the hard work and commitment League staff has shown to enhance our service to member credit unions. consumers know there is a hometown institution that has their best interest in mind. Our aggressive efforts in media relations are helping to reach those consumers. We are also looking at a statewide brand campaign in Alabama and working to reestablish a dialogue with Florida credit unions on doing the same. The LSCU is excited to work with our member credit unions in 2010. Big things are on the horizon and we will get there together. As always, please do not hesitate to contact me with any questions or feedback on how we are doing. ■

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CU PROFILES

CU President Proﬁles Each quarter, Signal magazine will feature a short conversation with a credit union CEO from Alabama and Florida. Credit unions will have the opportunity to hear from some of the most successful and progressive CEOs in Alabama and Florida. Their perspective will add depth to the credit union movement. Featured in this issue are Joe McGee, CEO of Legacy Community Federal Credit Union in Birmingham and Rich Helber, CEO of Tropical Financial Credit Union in Miramar.

Joe McGee What are some of the ways you are helping your members in today’s economy? Legacy’s approach to helping our members is no different in today’s economy than it has been since day one. For 55 years, our purpose has been to serve the needs of our members by providing an affordable financial alternative. Low-cost loans, competitive rates on deposits, Joe McGee, CEO financial services, Legacy Community Federal Credit Union and education have always been available for our members. It’s more incumbent on us now to make sure that those that particularly need assistance today are aware of that. We have actually ramped-up our marketing efforts to promote the availability of credit union services to our marketplace. Where do you see credit unions ﬁtting into today’s ﬁnancial picture? Obviously, it is not the best of times for our friends in the banking industry. Credit unions have received a great deal of publicity recently as viable financial alternatives to banks. I think it is time for credit unions to step up and expand their role in the marketplace. We have always been competitive from the consumer standpoint and, perhaps, even more so today. Additionally, the availability of credit to small businesses has been seriously contracted as a result of the economic downturn. I think credit unions could help tremendously in filling this void, particularly if Congress would see fit to lift our cap on member business lending. 4

A Magazine of the League of Southeastern Credit Union

For the most part, credit unions did not create the problems that plague the financial markets today and we should not be reluctant to share that message with our members, potential members, Congress, state legislators, or anyone that will listen. What are your expectations for the new LSCU? As part of the original task force that worked to bring the consolidation about, I see tremendous potential for our new organization. I would like to see the LSCU continue the excellent traditions and maintain the reputation of its predecessors, the Alabama and Florida Credit Union Leagues. These two powerful and well-respected organizations have set the bar high; however, I believe that the consolidation was a wise and far-sighted move given the state of our industry. Just look at what is taking place in the corporate credit union system and it doesn’t take you long to come to the conclusion that the consolidation of the two trade associations was a prudent move toward finding economies in how industry support groups operate. Expectations are high that LSCU will fill and expand these roles in providing advocacy and service to its member credit unions. I have no doubt that it will be successful. Where do you see the opportunities for the LSCU in the future? Naturally we are focused on serving Alabama and Florida credit unions today, but the name itself implies that the directors see the potential for expanding the footprint in a cooperative manner. While “politics is local” and advocacy efforts are somewhat unique and specialized from state-to-state, from the service corporation perspective, we all use basically the same types of products and services. I think that LSCU provides an excellent opportunity for collaboration in order to provide state-of-the-art products and services to a regional marketplace. We should always be open to consider new ideas and opportunities in order to remain vibrant and viable as

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our needs change. I think we are well positioned to take advantage of these opportunities as they present themselves. After all, it is better to be prepared for an opportunity and never have one than to have an opportunity and not be prepared. Joe McGee is CEO of Legacy Community Federal Credit Union in Birmingham, Alabama. Legacy Community has $317 million in assets with 43,000 members. McGee is the Chair-elect for the LSCU board of directors. He also serves on CUNA’s Community Credit Union Committee.

Rich Helber Why did consolidating the Alabama and Florida Leagues make sense? Economies of scale are a driving force right now for credit unions. In this economy every business is looking to run more efficiently. With Gary and Guy’s retirement, it was the perfect time to consolidate the Alabama and Florida leagues. It doesn’t make sense to have repetitive infrastructures and continue to use valuable resources to do the same job twice. With the membership base shrinking, we need an effective organization that can support credit unions’ needs which are great right now. Where are credit unions’ greatest areas of need in 2010? Demands on support organizations like the LSCU are tougher now than they’ve ever been. They need to be efficient and highly organized. In the area of governmental affairs, the stakes are much higher with the Credit Card Act, Overdraft Protection, Consumer Financial Protection Agency, and Regulatory Reform. The compliance and regulatory demand on credit unions is nearly crushing. The League has a greater role in providing compliance training to help credit unions align with the ever changing regulatory structure.

The education calendar offers excellent training in these areas. The League also has a major role in helping credit unions lobby on the state and federal level. Member business lending is gaining steam in Washington D.C., so it’s imperative the League’s GA staff stay on top of this while also monitoring the statelevel issues. What has impressed you about the ﬁrst three months of the new League? The LSCU has made great strides the first few months. The consolidation of the communications, IT, Service Corp, and back office operations has been impressive. Patrick has done a wonderful job of putting these pieces together. The tough part is behind us and for that we can all be proud. We have a plan and we’re on track. There are still a few back office operations that need to be smoothed out. Gary and Guy should be commended for putting into place two great organizations that could become one so quickly. What does the future hold for the LSCU? We’re just in the infancy of the organization and the beginning of the services that the LSCU will offer credit unions. A lot of fundamentals are in place. The Web site has been a great addition right off the bat. It holds a lot of information. The videos from the CUNA GAC add tremendous value to credit unions. To get a chance to show lobby visits inside those offices on the Hill is an innovation that few organizations offer. Our Cooperative Initiatives staff is logging a lot of miles right now providing one-one service. I’m excited about the future of the LSCU and the credit union movement in Alabama and Florida. We certainly have challenges ahead, but the future looks bright. Rich Helber is the CEO of Tropical Financial Credit Union in Miramar, Florida. Tropical Financial has $677 million in assets with 65,000 members. Helber also serves as the first Chairman of the LSCU board of directors. ■

Rich Helber, CEO Tropical Financial Credit Union

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ADVOCACY

Advocacy The LSCU Governmental Affairs (GA) Department develops in-depth relationships with lawmakers and their staff to serve as the voice of credit unions with the knowledge elected officials need when making decisions on issues of importance to credit unions. Also falling under the GA Department is Regulatory Advocacy. The combined experience and collective knowledge of LSCU’s expanded GA Department allows LSCU to advocate a proactive legislative and regulatory issues agenda to allow Alabama and Florida credit unions to expand and grow their services to meet the needs of their members. A greater concentration of resources allows LSCU to strengthen its localized grassroots advocacy efforts, providing more opportunities for credit union officials and legislators to build relationships and for credit union staff to be more engaged in the political process helping to affect change for credit unions. LSCU is very much aware of the ever-increasing regulatory burden on credit unions. Our regulatory and compliance staff is working to lessen the burden through regular contact and interaction with state and federal regulators before rules are written to decrease the operational impact on your credit union. We will quickly disseminate and implement easy-to-understand compliance information to our member credit unions. Credit unions also receive timely communications from the GA Department making them aware of the challenges facing credit unions in the legislative and regulatory arenas and educating them on the impact of legislative and regulatory proposals, as well as alerts to help credit unions use our grassroots strength to shape the public policies that affect our industry. ■

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LSCU Debuts New Media LSCU President/CEO Patrick La Pine has been traveling around Alabama and Florida sharing his vision for the LSCU as being the first place for member credit unions to get their information. With today’s technology, information can literally go from one place to another in seconds. The LSCU Governmental Affairs team is committed to using all available innovation to get member credit unions the most up-to-date information possible. At February’s CUNA GAC, the LSCU Governmental Affairs department used Twitter, YouTube, and the LSCU homepage to bring the conference to those credit unions that could not make the trip to Washington D.C. The LSCU produced three videos that brought the CUNA GAC to life. LSCU Vice President, Communications Mike Bridges put together video stories that went inside the Hill visits giving an inside look into the grassroots process that takes place during the conference. The Congressional members emphasized how important it is for them to hear from their local credit unions on issues affecting the districts they represent. CEOs spoke to the value of participating in the GAC and how getting a chance to speak directly with lawmakers was beneficial. Alabama CU CEO Steve Swofford was impressed with the quality of the videos.

at CUNA Governmental Affairs Conference “The League of Southeastern Credit Unions has clearly demonstrated a renewed commitment to advocacy efforts.” That commitment includes keeping all credit unions informed of developments using advanced technology to make the message more meaningful. I think the use of videos from the GAC is just the beginning of what we’ll ultimately see, with the final result being more credit union support of these critical initiatives.” In addition to the YouTube videos embedded on the LSCU homepage, the League’s and La Pine’s Twitter accounts were busy during the Hill visits. Both “tweeted” about the visits and the League sent pictures from the visits with Rep. Spencer Bachus (R-AL), Rep. Adam Putnam (R-FL), and Sen. Richard Shelby A screenshot from LSCU’s interview with Representative (R-AL). This allowed the more than 120 Adam Putnam during Hill visits. Twitter followers to gain a greater idea of what the visit looked like and what was discussed. This new form of grassroots advocacy will keep member credit unions informed like never before. “The League specifically targeted the CUNA GAC as a way to show our member credit unions we are committed to getting information out as quickly as possible,” said La Pine. “Twitter, video, and audio podcasts are an integral part of our communications strategy. Member credit unions now have more ways to keep up and take part in our grassroots advocacy.” To follow the League or La Pine One of several pictures “tweeted” by the League while at the GAC. on Twitter, go to www.lscu.coop and click on the Twitter link at the bottom of the page. ■

2011 LSCU Legislative Summit Look forward to a new format which will include a nationally known speaker/ pundit to speak about national events, breakout sessions on PAC fundraising, fundraising best practices, a PAC and legislative awards luncheon and more! Look for more details later on in the year. SIGNAL: Vol. 1, Issue 1

Legislative Affairs Mark Landreth VP, Legislative Affairs mark.landreth@lscu.coop Will McCarty VP, Legislative Affairs / Staff Counsel will.mccarty@lscu.coop Justin Thames Grassroots & Political Action Coordinator justin.thames@lscu.coop Robbie Gordon Grassroots & Political Action Coordinator robbie.gordon@lscu.coop

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ADVOCACY

LSCU Legislator Profile:

Spencer Bachus Rep. Spencer Bachus’ (R-AL) eyes light up when Afghanistan comes up in conversation. A recent trip to thank the troops resonates with him weeks after his return. This is a prime example of the depth of his love for the United States and how much he relishes the opportunity to serve the state of Alabama. He does not shy away from the hard conversation. When credit unions stop by the Hill to visit with Rep. Bachus, not only is his door open, but he talks to visitors with enthusiasm about the country’s financial issues. As ranking Republican on the House Financial Services Committee, Rep. Bachus is one of the main players when it comes to solving the country’s economic problems. He authored the Fair and Accurate Credit Transactions (FACT) Act in 2003, which contains new identity theft protections and entitles consumers to a free copy of their credit report. He also helped pass deposit insurance reform which increased FDIC coverage levels for account holders, Check 21 which modernized the check clearing process, and regulatory relief legislation that helps eliminate duplicative paperwork costs placed on financial institutions. His track record shows a history of seeing the bigger picture. “Credit unions didn’t cause the problems and if there is any institution that has been exonerated it’s the credit unions,” Bachus said. “They’ve operated in a sound manner, even in this tremendous downturn in the economy. They’ve fared well and I think we have to remember that when we’re addressing problems they didn’t cause.” Credit unions are gaining momentum in Washington D.C. to have the member business lending cap raised from 12.25 percent to 25 percent. In February, Rep. Bachus met with about 15 credit union officials as part of the CUNA GAC. Rep. Bachus spent 30 minutes discussing member business lending and really getting at the heart of what it would mean to raise the cap. He went around the room engaging every member of the LSCU delegation in the conversation. This is very important to credit unions, because as Ranking Republican on the House Financial Services Committee, Rep. Bachus leads the 29 Republicans on the committee. As the White House pushes for Regulatory Reform, he understands the role credit unions play in their respective communities. “One of the big generators of job growth is small 8

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businesses,” Bachus said. “I think that’s where the credit unions have the advantage because they are out there in the community and they are smaller institutions. “As banks have gotten bigger and bigger and more national in scope, it’s good to have an institution that is a hometown institution.” For nine straight terms, Alabama residents in Bibb, Chilton, Shelby, and parts of Coosa, Jefferson, St. Clair, and Tuscaloosa counties have recognized Rep. Bachus’ desire to do what is right for Alabama and what is right for the country.

“Credit unions didn’t cause the problems and if there is any institution that has been exonerated it’s the credit unions. They’ve operated in a sound manner, even in this tremendous downturn in the economy. They’ve fared well and I think we have to remember that when we’re addressing problems they didn’t cause.” He says brighter days are ahead and that credit unions will be part of the turnaround. He’s just not sure how soon the economic downturn will subside. “This country, with all its difficulties, is still the greatest nation on the face of the earth,” Rep. Bachus says. “As Americans, we’re going to be fine and get through it. We’ve faced major challenges before as a country and we’re facing another one right now.” For credit unions, it’s good to have someone like Rep. Bachus in Washington D.C. He’s willing to listen, engage, and do what is right for Alabamians. ■

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LSCU Legislator Profile:

Alex Sink Adelaide “Alex” Sink was a banker most of her adult life. She joined a predecessor bank and through the tumult and mergers, rose to lead Bank of America’s (BofA) Florida operations. For nearly a decade, she managed more than $40 billion in assets and 9,000 employees. Before 2006, she had never served in public office, though she was intimately familiar with what it took to run statewide when her husband, Bill McBride, campaigned for Governor in 2002. She has come to know and appreciate credit unions for their unique place in the financial services marketplace. While president of BofA, she saw credit unions as fitting a niche that banks, for the most part, did not serve. When she prepared to run for Chief Financial Officer in 2006, Karen Thurman, Chair of the Florida Democratic Party, gave her a short list of people she needed to know. At the top was former Florida Credit Union League EVP Aletta Shutes. Through the campaign, Aletta and Alex became close and the Florida Credit Union League came to support her. She has spoken before credit union gatherings on multiple occasions and has appointed credit union officials to a number of the Florida Department of Financial Services advisory boards. A former banker herself, CFO Sink addressed the opposition banks have against credit unions at a League-facilitated meet-and-greet: “When it comes to the market, if you’re not willing to compete, then get out of the way,” said CFO Sink. “Credit unions play a critical role in providing financial services to everyday Floridians.” Sink went on to explain her role as the Chief Financial Officer for Florida as looking after the

financial well-being of Floridians and taking the risk “off the table.” Sink stated her office is “all about consumers and the little guy who need access to financial products.” Something credit unions know all about. She has chosen to run for Governor in 2010 against current Attorney General Bill McCollum. McCollum served for 20 years in Congress and during the run up to H.R. 1151 reportedly said, “You need to work it out with the bankers,” a phrase which did not endear him to Florida’s credit unions. In an almost “Mayberry RFD” childhood, Sink grew up on a farm in Mt. Airy, North Carolina, and earned a degree in mathematics from Wake Forest University. She and her husband reside in Thonotosassa, Florida, near Tampa. They have two children, Bert, a senior football player at Stanford, and Lexi, a junior at Wake Forest University. ■

“When it comes to the market, if you’re not willing to compete, then get out of the way. Credit unions play a critical role in providing financial services to everyday Floridians.”

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COMPLIANCE

Compliance Compliance Q&A Question: Can state chartered credit unions that have branches in other states expand their membership footprint in other states? See page 17 for the answer.

Compliance Department Staff: Bill Berg VP, Regulatory Affairs bill.berg@lscu.coop Scott Morris Director, Compliance scott.morris@lscu.coop

Regulator Focus Continues for the Allowance for Loan & Lease Losses Account Although this has been a common area of testing for regulators historically within credit unions and other financial institutions, the calculation for the Allowance for Loan & Lease Losses (ALLL) has received increased attention from regulators. Regulators have enhanced their review of ALLL to include consideration of historical data and occasionally a recommendation for a delinquency funding portion of the calculation. This recommendation for this portion typically comes about as a result of a lack of aggressive charge-offs by the credit union. Also if a credit union offers an overdraft privilege program it must appropriately fund its ALLL to consider losses from this area. Troubled Debt Restructurings (TDRs) that are likely to cause credit losses for the credit union’s existing portfolio continue to be an important aspect of the ALLL calculation or the regulator will have a concern. A TDR is when a creditor grants a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties. TDRs must be considered in addition to the historical loss experiences. Environmental factors that should be considered in ALLL calculations include, but are not limited to: changes in lending policies and procedures; changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio; changes in the nature and volume of the portfolio and in terms of loans; material changes in lending management/staff; changes in the volume and severity

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of past due loans and the volume of loans in non-accrual status; material changes in the quality of the credit union’s loan review process; changes in the value of underlying collateral, if applicable; the existence and effect of any concentrations of credit and/or the level of such concentrations; and the effect of other external factors potentially including competition and legal and regulatory requirements on the level of estimated credit losses in the credit union’s existing portfolio. Additional information can be obtained at http://www.lscu.coop/ Governmental-Affairs/RegulatoryAdvocacy/Regulatory-Resources. For questions regarding ALLL calculation, contact Ashley Mobley, AVP, Auditing Services or Bill Berg, VP, Regulatory Affairs. ■

InfoSight is your first stop when searching for compliance answers. Think of it as an online compliance manual at your fingertips, containing federal and both Alabama- and Florida-specific content that is accurate, concise, and detailed on a wide range of topics and issues. Easy-to-read compliance summaries, checklists for compliance, direct links to laws and regulations, frequently asked questions, and links to additional important resources including CUNA’s online compliance resource “E-Guide” can all be found on InfoSight. ■

INITIATIVES

Cooperative Initiatives Cooperative Initiatives (CI) is a new department focusing on membership relations, small asset size credit union development and support, chapter support, foundations, financial education, and international partnerships. Through a renewed emphasis on membership relations, the LSCU is working to build a bridge between the League and its member credit unions. The CI staff, as

• Suggestions to enhance member utilization of credit union • Facilitation of strategic planning sessions/development of business plans • Support in determining feasibility of field of membership expansion and guidance on regulatory requirements • Budget development • Assistance with Bank Secrecy Act risk assessments

well as the entire LSCU staff, is focused on identifying and providing the services and tools which will enable credit unions to excel. Each affiliated credit union is assigned a liaison from the League staff. LSCU’s small asset size credit union program will assist credit unions by facilitating growth and providing solutions to challenges impeding the growth of credit unions under $35 million in assets. The CI team is busy assessing the operation of each credit union under $35 million in assets to determine unique needs. An ongoing consultative approach will be utilized to determine opportunities and identify areas of concern. Available assistance includes: • Guidance in resolving Document of Resolution items and/or other issues revealed by exams and audits • Analysis of member usage of products/ services • Suggestions to improve operational efficiencies

New to the small asset size credit union program is the Small Asset Size Credit Union Initiative Account Program, available to all member credit unions $35 million in assets or less. LSCU has created an account in each credit union’s name in the amount of $400. Those credit unions will be able to use the money in their account toward the purchase of any LSCU or LSCU Service Corporation product and/ or service including: • LSCU Education and Training Events • STAR/MERIT/VAP Modules • LSCU Strategic Planning Sessions • LSCU Service Corp. Products As LSCU bills the credit union for the events/services used, they can simply write on the invoice that it is to be paid out of their LSCU Small Credit Union Initiative Account. League accounting staff will keep track of the expenditures from the account. It is also important that LSCU is providing the type of support members need and are focusing on the issues that are important to them.

Save the Date! LSCU Chapter Leaders Conference May 18 – 19, 2010 Pensacola, FL For more information, visit www.lscu.coop.

Cooperative Initiatives Department Staff: Laura Vann VP, Cooperative Initiatives laura.vann@lscu.coop Adena Whitman Director, Member Relations adena.whitman@lscu.coop Jeanie Henson Member Relations Specialist jeanie.henson@lscu.coop David Lenoir Member Relations Specialist david.lenoir@lscu.coop Amber Tynan Member Relations Specialist amber.tynan@lscu.coop

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Cooperative Initiatives (Continued) LSCU will continually be seeking feedback from members as well as providing information on best practices. On a quarterly basis, LSCU will host conference call forums to request feedback and give small credit unions an opportunity to interact with one another. A Small Credit Union Roundtable at the Annual Convention & Exposition will provide another opportunity to provide feedback and share information with your peers. Chapters have always been–and will continue to be–the backbone of the credit union movement. CI’s chapter liaisons will help build a strong network among credit unions in each state’s geographic areas, focusing on advocacy, communications, education, and community involvement. Florida’s 12 chapters and Alabama’s eight chapters each has an assigned liaison to help the chapters work toward their specific goals. See the LSCU Chapter Regions map on the next page (or on www.lscu.coop) for a listing of liaisons and the areas they cover. The Alabama and Florida foundations are dedicated to progressive, professional development of credit union staff and volunteers, financial education programs for youth and adults, and creating valuable resources for member credit unions and the communities they serve. The purposes of the foundations are: • Promote financial education initiatives that benefit credit union members, volunteers, students, and the public in Alabama and Florida • Provide scholarships and grants to assist credit union employees with the training they need to achieve professional excellence • Offer financial relief to credit unions, credit union staff, and credit union volunteers when disaster strikes • Help credit unions achieve their own community relations objectives through support for local partnerships • Provide tangible results that advance public awareness, legislative issues, and the “People Helping People” philosophy LSCU, through the Florida Credit Union Foundation, will continue to offer the scholarship program for students in communities across Florida. In the spring of 2010, the Florida Credit Union Foundation will offer four graduating students from each of Florida’s 12 chapters 12

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of credit unions a $1,500 scholarship to attend a Florida four-year university or a Florida community college. With an enhanced focus on financial education, the CI staff is working with credit unions to empower the residents of Alabama and Florida to build wealth. LSCU partners with a variety of community-based organizations such as the Florida Jump$tart Coalition and the Alabama Jump$tart Coalition to deliver financial education programs throughout both states. CI will continue to work with credit unions on their efforts to implement the National Endowment for Financial Education’s High School Financial Planning Program in schools across both states. A new emphasis on adult financial education will provide information to build money management skills, emphasizing topics such as credit basics, budgeting, identity theft solutions, and credit repair. Since 2005, Alabama credit unions have partnered with credit unions in Costa Rica to share information and explore opportunities for collaboration. The CI Department acts as the liaison between the partnered credit unions and the World Council of Credit Unions (WOCCU). CI looks forward to expanding the partnership in 2010 and facilitating relationships between Florida credit unions and Costa Rica credit unions. CI staff will also continue working with WOCCU and the Federación de Cooperativas de Ahorro y Credito de Costa Rica (FEDEAC)–the League equivalent in Costa Rica–on a variety of issues.

Chapters have always been–and will continue to be–the backbone of the credit union movement. CI’s chapter liaisons will help build a strong network among credit unions in each state’s geographic areas, focusing on advocacy, communications, education, and community involvement. For more information on Cooperative Initiatives, visit the Cooperative Initiatives section of the new Web site, www.lscu.coop. Resources are continually being added that your credit union can use in community outreach as well as tools to enhance operations for small credit unions. ■

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LSCU Chapter Regions

Alabama Chapters Legend

1. Muscle Shoals Chapter Adena Whitman Lauderdale, Colbert, Franklin, Lawrence

5. Montgomery Chapter Jeanie Henson Bibb, Perry, Dallas, Chilton, Autauga, Lowndes, Coosa, Elmore, Tallapoosa, Lee, 2. Tuscaloosa Chapter Montgomery, Russell, Bullock, Adena Whitman Macon, Chambers Marion, Winston, Fayette, Lamar, Walker, Pickens, Tuscaloosa, 6. Mobile Chapter Greene, Hale, Sumter David LeNoir Choctaw, Marengo, Wilcox, 3. Birmingham Chapter Monroe, Clarke, Conecuh, Adena Whitman Washington, Escambia, Mobile, Jefferson, Shelby Baldwin 4. Cheaha Chapter 7. Northeast Chapter Adena Whitman Adena Whitman DeKalb, Cherokee, Etowah, Limestone, Jackson, Madison, Blount, St. Clair, Calhoun, Marshall, Morgan, Cullman Cleburne, Talladega, Randolph, Clay 8. Wiregrass Chapter Jeanie Henson Butler, Pike, Barbour, Crenshaw, Covington, Coffee, Geneva, Houston, Henry, Dale

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Florida Chapters Legend 9. Northwest Chapter David LeNoir Escambia, Santa Rosa, Okaloosa 10. Gulf Coast Chapter Jeanie Henson Walton, Holmes, Washington, Bay, Jackson, Calhoun, Gulf, Liberty, Franklin 11. Tallahassee Chapter Amber Tynan Gadsden, Leon, Wakulla, Jefferson, Taylor 12. North Central Chapter Amber Tynan Madison, Lafayette, Dixie, Hamilton, Suwannee, Gilchrist, Levy, Columbia, Union, Bradford, Alachua, Clay, Putnam, Flagler, Marion 13. Northeast Florida Chapter Jeanie Henson Baker, Nassau, Duval, St. Johnâ&#x20AC;&#x2122;s 14. Tampa Chapter Amber Tynan Citrus, Hernando, Pasco, Hillsborough 15. Pinellas Chapter Amber Tynan Pinellas

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16. Sara-Mana Chapter Amber Tynan Manatee, Hardee, Sarasota, DeSoto, Charlotte, Lee, Collier 17. Central Florida Chapter Jeanie Henson Volusia, Lake, Sumter, Seminole, Orange, Brevard, Osceola, Polk, Highlands 18. Palm Beach Chapter David LeNoir Indian River, Okeechobee, St. Lucie, Martin, Glades, Hendry, Palm Beach

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19. Broward Chapter David LeNoir Broward

20. Southernmost Chapter David LeNoir Miami-Dade, Monroe

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EDUCATION

League Education LSCU’s expanded educational offerings address the training needs of credit unions through relevant content which will give credit union staff and volunteers the tools they need to perform in their positions more efficiently. LSCU’s expanded educational offerings deliver training through the Annual Convention & Exposition (AC&E), Conferences & Workshops, Distance Learning, and Leadership Councils. The AC&E is a premier networking event that will showcase and celebrate the credit union movement with high quality industry leaders, competitive pricing for participants and exhibitors, and a world class member experience. Conferences and workshops held in both Alabama and Florida enable credit union professionals to learn about the latest topics and trends from industry experts in a face-to-face environment.

Education Department Staff: Joy Breedlove VP, Education joy.breedlove@lscu.coop Julianne Talley Director, Events julianne.talley@lscu.coop Brandy Norvell Event Coordinator brandy.norvell@lscu.coop Becki Payne Association Services Support Specialist becki.payne@lscu.coop

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Distance Learning through audio conferences, webinars, self-study courses, and online programming provide a flexible learning experience for credit union professionals who want the same quality training, but from remote locations. Leadership Councils are designed to provide credit union professionals opportunities to network with their peers, discuss timely issues concerning their professions, share best practices, and hear from industry experts. There are six councils: Chief Financial Officers, HR / Training & Development, Lending, Marketing & Business Development, Operations Sales & Service, and Technology. As a registered user of the LSCU Web site, members may register for all events online through www.lscu.coop. ■

2010 | On the Path: United. Stronger. Determined.

General Session: Joint Offsite & Guest Events Exhibit Hall Sessions Presentation from the Guest Event: Winter Park Tour CEO Preview Right & the Left June 17, 8:30 a.m. – 3 p.m. June 16, 4 p.m. – 5 p.m. (Invitation Only) Keynote Speakers: Paul Begala & Tucker Carlson June 17, 2:30 p.m. – 4 p.m.

Paul Begala and Tucker Carlson will share their diverse political insights with a face-off that will offer an entertaining and informative look at the new Congress and White House.

This offsite event will charm guests with hidden gardens and side streets that are home to unique shops, sidewalk cafés, and museums. Includes lunch. Golf Alternative: Airboat Adventure June 18, 7:45 a.m. – 11:45 a.m. This excursion takes you into the seldom visited heart of natural Florida. Participants will enjoy an exclusive eco-guided nature walk and narrated airboat excursion to see up close a marvelous assortment of birds, reptiles, and plants. Guest Session: Cooking Class June 18, 10:30 a.m. – 1 p.m. This fun guest session features an Italian cooking lesson with Chef Thomas Horner at the JW Marriott. Guests will learn how to make a three course meal and enjoy eating their self-made meal at the end!

Join fellow CEOs, Wednesday, for the opportunity to network with your peers and more than 115 exhibitors to learn about products, services, and practices that provide knowledge to help your credit union succeed. Grand Opening June 16, 5 p.m. – 6:30 p.m. Identify the companies you want to see and make sure you stop by their booth for products and services that you can take back to your credit union and implement for streamlined processes and efficiencies. Reception June 17, 4 p.m. – 6 p.m. Head to the Exhibit Hall to enjoy light hors d’oeuvres, a cash bar, and a strolling quartet of fun music for the road. Buffet Lunch June 18, 12:15 p.m. – 2 p.m. Don’t miss the final Exhibit Hall session to network and ensure you have discovered the right solutions for your credit union’s enhanced performance.

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COMMUNICATIONS

Communications In today’s technology-driven, dynamic environment, multimedia use is the standard for effective organizations. The LSCU’s exploration into emerging communication technologies helps convey information using video and other multimedia channels that can be utilized by credit unions for staff and members alike. When the LSCU unveiled a new Web site in January, it not only coincided with the launch of the new league but also showed the new direction the LSCU is taking with communications. The Web site serves as a living, breathing extension of the LSCU. It also holds various channels that the Communications Department will utilize including a weekly e-newsletter, Twitter, and multimedia. The new Web site (www.lscu.coop) is designed to provide the most up-to-date information that is easy to find. Using the search function will always help find a topic quickly and becoming familiar with the site will show that almost any information is less than three clicks away. The homepage

houses six tabs that are aligned with the LSCU’s main functions: Governmental Affairs, Education, Cooperative Initiatives, Communications, Business Solutions, and the Annual Convention & Exposition. Each houses information for the various areas that fall under that particular function. For example, Regulatory Advocacy information can be found under Governmental Affairs. The Education Calendar, that has a monthly view and an upcoming view of educational events, is located under Education. Also located on the homepage are sections containing Top Stories, National News, Florida News, and Alabama News which are refreshed throughout the day. “We designed the Web site to reflect the needs of our credit unions,” said LSCU President/CEO Patrick La Pine. “It shouldn’t take long to find what you need. We’ve provided a quick login to League Infosight on the homepage and the Education calendar is easy to navigate and links you directly to an event’s online registration. We hope credit unions utilize this great source of information.”

Communications Department Staff: Michael Bridges VP, Communications mike.bridges@lscu.coop Amy Jowers Director, Information Services amy.jowers@lscu.coop Mary Ventre Communications Assistant mary.ventre@lscu.coop

Each houses information for the various areas that fall under that particular function.

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Alabama and Florida credit unions now have a weekly electronic newsletter that disseminates, via email, the most pertinent information available. Each Monday, eSignal Weekly (formerly eNews Weekly) provides top headlines and LSCU departmental news to those signed up to receive the email. A must-read for credit unions, eSignal’s stories provide perspective on legislative activities at the state and national level, as well as the latest news in compliance and the industry as a whole. Learn about upcoming educational events through articles highlighting a particular learning event as well as in a calendar listing of upcoming webinars and conferences, along with links to registration. In one email, credit unions can feel connected to what’s going on locally and nationally within the movement. Utilizing both Twitter and multimedia videos to disperse information at the CUNA GAC, the LSCU was able to speak directly with credit unions, peers, and the media as well as “bring the GAC experience” to those who were not Sign Up for eSignal Weekly able to be there. “The innovation from the CUNA GAC was very beneficial LSCU's eSignal Weekly, our weekly electronic newsletter, to our credit unions,” says La Pine. “Information flows so provides latest and greatest relevant credit union and League news and information in one publication. Enter quickly in today’s world. The LSCU is showing that it is out your information below to receive this weekly email in front by providing audio and video on the Web, along delivered every Monday. with social media. We expect to add more communications Name * channels throughout the year.” Communications has also delved in to cultivating stronger Credit Union * relationships with media. Such efforts to engage local, state, and national media outlets will assist in highlighting the Email Address * good works of credit unions by placing them in the spotlight as consumer-friendly financial institutions working to assist members and communities. The LSCU has solidified its presence with the trade Submit press. In the first quarter, 12 stories appeared in the trade press. The mainstream media is beginning to look to the LSCU for information as three stories were printed in newspapers and WFLA TV in Tampa ran a piece with credit Visit www.lscu.coop and sign up for LSCU’s electronic newsletter, eSignal Weekly, which is distributed every unions. Through the first three months of the year, more than Monday via email. eSignal Weekly contains stories that are 550,000 media impressions were gained by the LSCU. timely and relevant about League events and initiatives, The LSCU’s various communications channels will grow affiliate credit unions, political arenas, and more. throughout the year. Stay tuned! ■

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NEWS

League News People helping people

League of Southeastern Credit Unions

Professionalism

Volunte erism

2010

2010 LSCU Credit Union Award Call for Entries/Nominations!

AWARDS Outstanding Service The League of Southeastern Credit Unions is proud to rrecognize those professionals and volunteers who have made ooutstanding contributions to the development and growth of

Deadline for submissions: May 7, 2010 The LSCU is proud to recognize those professionals and volunteers who have made outstanding contributions to the development and growth of the credit union movement in Alabama and Florida through the following awards: • Professional of the Year • Brothers Keeper Award • Volunteer of the Year • Dora Maxwell Awards • Credit Union of the Year • Louise Herring Awards • Distinguished Service Award • Desjardins Awards Those chosen for these honors will be presented the award at the LSCU AC&E in June. More information and submission information is located in the Cooperative Initiatives section on www.lscu.coop.

the credit union movement in Alabama and Florida.

First LSCU CUNA GAC a Success More than 113 credit union officials from Alabama and Florida travelled to Washington D.C. for the first LSCU CUNA Governmental Affairs Conference (GAC) February 21 - 25. The conference officially kicked off February 22 with the first speakers addressing the crowd in the morning and legislative and political updates in the afternoon. The LSCU made Hill visits on Tuesday and Wednesday, meeting

with the entire delegation from Alabama and Florida. Many of the meetings were very productive as lawmakers asked questions about member business lending, overdraft fees, and interchange fees. Rep. Spencer Bachus (R-AL) met with the delegation Tuesday before he addressed the General session of the CUNA GAC. Rep. Bachus told the session that he strongly supported raising the member business lending cap for credit unions. He also told the General Session that the “too big to fail” method of regulatory reform would not work. Before he addressed the LSCU visits with Representative Adam Putnam crowd, a few Alabama credit unions were

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Ola Anise, Azalia City CU, Art Wood III, Railroad and Industrial FCU, Mary Wood, Florida West Coast CU, and Dola Anise

able to meet with him backstage in the Convention Center. During the Hill visits, the League secured two new co-sponsors for H.R. 3380 (Promoting Lending to America’s Small Businesses Act of 2009) to join current co-sponsor Congresswoman Kathy Castor (FL-11) who signed on in December. As of this publishing, Florida has a total of seven co-sponsors. Although some in the Alabama delegation have expressed support for the bill, none have yet to sign on as a co-sponsor.

Congressmen Gus Bilirakis (FL9) and Alan Grayson (FL-8) were convinced to add their names along with Castor and more than 70 other members of Congress. The cosponsors agree that credit unions have the ability to increase needed lending to America’s small businesses. If the member business lending cap were raised from 12.25 percent to 25 percent, credit unions could lend an additional $10 billion that would help create more than 108,000 jobs. New to this year’s GAC, the League held a GAC webinar beforehand to provide information to and answer questions from those attending the conference. Also, the LSCU unveiled new video production innovations featuring the Hill visits and interviews with credit union officials

from Alabama and Florida as well as shared information through tweets. Materials that were distributed at the CUNA GAC are still available for viewing on www.lscu.coop on the passwordprotected CUNA GAC Resources

page located in the Governmental Affairs section. These include a closer look at many of the issues being discussed with the LSCU’s Federal lawmakers.

(LtoR) Nancy Greathouse (Board Chair, Baptist Regional Medical FCU), Christina Reynolds (CEO, Florida State EFCU), Lora Barbee (President, Baptist Regional Medical FCU), Congressman Jeff Miller (1st Congressional District of Florida)

Compliance Q&A Q: Can state chartered credit unions that have branches in other states expand their membership footprint in other states? Answer: The normal answer is no, however several states in the southeast have signed a reciprocal agreement that permits state chartered credit unions who have branches in other states to be able to expand their field of membership in those states. There are several criteria to follow: • Your home state must permit the type of expansion that you request • The state in which you want to expand must permit this type of expansion and • Both the home and host state regulators must approve This approval process contains an extra step but does put state chartered credit unions on a similar footing with federal credit unions that can branch across state lines. View the reciprocity agreement at www.nascus.org/pdf/2008-Southeast-Interstate-Agreement.pdf. The seven state regulators that have signed the reciprocity agreement include: Alabama, Florida, Georgia, Mississippi, Missouri, North Carolina, and Tennessee. SIGNAL: Vol. 1, Issue 1

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Official Launch Mary Elicia Del Santo VP, Business Development 866.231.0545 me@myleverage.com www.myleverage.com

“The name LEVERAGE was a natural fit for the LSCU Service Corporation,” said President & CEO Patrick La Pine. “Everything we do for our credit unions and our business partners is captured within this one word. The LEVERAGE brand will be a powerful partner for credit unions to maximize their future growth.”

LEVERAGE, the new name of the Alabama and Florida Credit Union League Service Corporations, may just be a single word, but it provides credit unions with an enhanced resource for business solutions. LEVERAGE was created through the consolidation of the Alabama and Florida Credit Union League Service Corporations. With the combined strengths of these two organizations, LEVERAGE will focus on providing access to best-in-class solutions, helping credit unions leverage buying power, and utilizing industry knowledge to increase credit union performance, reduce operating costs, and promote future growth. In today’s rapidly changing economy credit unions can look forward to innovative and proven business solutions from our partners which in return will maximize their financial performance. Our largest partners including Sprint, Office Depot, and GE Remarketing are reaching out to over 1,200 credit unions. One of many opportunities that comes from LEVERAGE is the newly expanded sales team that will provide our partners even more exposure with credit unions and more opportunities for credit unions to take advantage of a variety of costsaving, revenue enhancing products and services. LEVERAGE offers a variety of strategic services and products to credit unions. Our auto lending programs help credit unions simplify the auto lending process while providing them with volume discounts, multiple channels to choose from for the liquidation of vehicles, and much more. Best-in-class lending and credit card solutions give credit unions a competitive advantage in the payment system and lending marketplace. Our card services program is partnered with Fidelity Information Services (FIS), a recognized leader in credit union card processing that helps provide credit unions with the highest quality card products. LEVERAGE is also partnered with CU Members Mortgage, CUNA Mutual, and others to meet credit union lending needs.

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Partner Proﬁles The consolidation of two strong League service corporations, both offering top quality services to credit unions in their respective states, has already had a positive impact on credit unions in Alabama and Florida. CU-ACE, Alabama’s highly regarded audit and compliance company, is now offering its wide range of financial and compliance audit services in Florida. Two credit unions in Florida have already engaged CU-ACE to perform their ACH and BSA Audits for 2010. Ventelligence, Florida’s contract management and ePurchasing program, is now offering its innovative services to Alabama credit unions. Six Alabama credit unions have installed the contract management system and four Alabama credit unions have participated in a collaborative ePurchasing event for armored car services. Those credit unions participating in the live online auction event will save between 20 percent and 50 percent over their existing armored car services contracts.

Audit & Compliance Solutions

Meet regulatory requirements and stay compliant with services provided by certified audit and compliance field experts. Serving credit unions for more than 35 years, Credit Union Auditing & Compliance Experts (CU-ACE) offers a comprehensive menu of financial and compliance audits. The following listing represents a selection of competitively priced services offered through CU-ACE: • Supervisory Committee Audits • Interim Audits • ACH Audits • BSA Reviews • OFAC Assessments Regulations and compliance guidelines have never been more extensive and complicated than they are today. The experienced and specialized CU-ACE staff looks forward to becoming a valuable resource for your credit union. For more information, contact a LEVERAGE Business Development Consultant at consult@myleverage.com.

Contract Management & ePurchasing Get in compliance with third party vendor management regulations and improve your purchasing strategies. Ventelligence features: • Contract Management Software – Web-based database with triggers and alerts and a single repository for all vendor contracts • Risk Assessment & Due Diligence Process – Integrated templates and processes for risk assessment and due diligence • ePurchasing & Collaborative Buying Programs – Sourcing engine that supports online purchasing events and infrastructure for collaborative buying by credit unions

Faced with heightened regulatory requirements and expense reduction needs, credit unions are under increased pressures to find ways to better manage third party vendor relationships. Ventelligence provides an innovative solution to these challenges. For more information, contact a LEVERAGE Business Development Consultant at consult@myleverage.com.

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