Q210 Signal

The Magazine of the League of Southeastern Credit Unions

Economic

Recovery

The Light at the End of the Tunnel

INSIDE LSCU Credit Union Leading By Example Tracking TDR’s Save to Win Program Summer 2010 Volume 1: Issue 2

Upcoming Conferences 2011 Image Campaign

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Table of Contents

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

COMING SOON How social networking can work for you.

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Message from the President

5

CU President Profile

6

Feature Article

8

Advocacy

10

Legislator Profiles

13

Compliance

14

Cooperative Initiatives

16

Foundation

19

League Education

22

League News

24

LEVERAGE

26

Directory

HIGHLIGHTS 6 | Feature Article

10 | Legislative Profiles

21 | Communications

An Alabama and a Florida credit union speak on the recession’s road to recovery.

Alabama’s Representative Marcel Black and Florida’s Congressman Bill Posey answer LSCU’s questions.

Image campaign for Alabama and Florida coming in 2011.

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LSCU

Message from the President The economy is on everyone’s mind. Computer screens and office TVs are constantly on the financial channels checking the markets. The near 400-point drop for the Dow in early May sent shockwaves through all of us. We keep hearing the worst is behind us, but I’m not sure if all Florida and Alabama credit unions completely agree with that.

Unemployment in Florida is at 12.3 percent, which is an all-time high. The unemployment rate in Alabama is 11 percent, which is eight percent higher than the same time period three years ago. The LSCU sent out state economic profiles for 2009 in April and it showed that unemployment continues to impact credit union members. Florida credit unions will also continue to be adversely affected by the ongoing pressure from the housing markets. Our cover story looks at the economic recovery and how it is affecting credit unions in Florida and Alabama. CUNA Economist Mike Schenk believes the pieces are in place for an economic recovery.

The League has been working diligently with CUNA to ensure any new federal legislation has minimal effect on credit unions. We are planning to go back to Patrick La Pine, President & CEO Washington, D.C. in June to fight inclusion of interchange in the final regulatory League of Southeastern Credit Unions reform bill moving through Congress. The state Legislative sessions in Florida and Alabama wrapped for the year with very little impact on credit unions. The expected intensity of this year’s elections in both states drained lawmakers of what to do but the minimum required. The newly constituted LSCU Governmental Affairs Committee (GAC) and the PAC Trustees met to begin the process of identifying credit union friendly candidates running for state and federal offices. Becoming part of the grassroots process will ensure that Montgomery, Tallahassee, and Washington D.C. have lawmakers that understand the credit union difference and what we are doing every day to better the lives of our members.

The League has been working diligently Our communications department is working with task forces in Alabama and with CUNA to ensure any new federal Florida on statewide image campaigns. We hope to have creative developed legislation has minimal effect on credit by the late summer to show credit unions. The task forces will come together unions. We are planning to go back to to streamline creative costs with a campaign that both states can use. This campaign will encompass traditional ads, but also utilize online advertising and Washington, D.C. in June to fight inclusion social media. Fundraising among individual credit unions will begin at the end of 2010 and early 2011 so the campaign can kick off in the spring of 2011. of interchange in the final regulatory Save the dates for June 29 and July 13. Those are the dates for the LSCU’s reform bill moving through Congress.

Disaster Recovery Conferences in Ft. Lauderdale and Mobile. The BP oil spill reminds us that a disaster can strike without warning. These conferences are designed to give credit unions the tools necessary to have a disaster plan in place before something happens. A member of the National Hurricane Center will also attend both conferences to give an overview of the upcoming hurricane season.

While the economic recovery may hit Alabama and Florida near the end, we’re working to ensure our member credit unions are on solid ground when we break free from this recession.

Patrick La Pine President/CEO

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CU PROFILE

CU President Profile Laida Garcia Laida Garcia began her career in the financial services industry after graduating from college, working in a community bank as a bookkeeper and later for a national bank as a lender. Her mom, a member of floridacentral Credit Union and the HR Director of one of its SEGs, encouraged her to apply for a job at the credit union. Laida remembers asking her, “Mom, what exactly is a credit union?” Her mom “set her straight” and the next thing Laida knew, she was applying for a lending job at floridacentral, and the rest is history. Joining the floridacentral team in 1980 as a loan officer, Laida established and managed the marketing and business development department, then moved into other management and executive level positions in operations, lending, collections, EVP, and is now CEO. When asked about the changes she has experienced in credit unions over the years, Laida says that in some ways, there have been huge changes. Yet, in others, things remain pretty much the same.

“Regardless of size, our credit union structure and core philosophies – those qualities that make us unique as financial service providers – remain unchanged despite efforts by the banking community to challenge our ability to do so.”

Credut Union Statistics Company: Location: Assets: Members: Shares: Loans:

floridacentral Credit Union Tampa, Florida $280,742,978 39,641 $248,769,303 $166,712,977

Competition has also dramatically intensified, causing credit unions to change the way they do business. Today, most credit unions strive to establish a successful sales culture in their organization, no longer able to remain service-oriented “order takers.” While part of their desire to implement a sales culture is based on the need to improve our bottom lines, credit unions by and large remain member-driven rather than profit-driven.

The greatest and most significant change Laida has seen affecting the credit union industry is the current economic environment.

“Yet, credit unions are responding to this challenge with poise, a can-do attitude, and with their members’ best interest in mind.”

As past board member and chairman of the FCUL and FCUL

Service Group Leagues, Laida feels a credit union’s involvement in the league is important.

“Leagues do an excellent job of enabling credit unions to fulfill their mission. First and foremost, the League provides grassroots leadership in the area Laida Garcia, CEO floridacentral Credit Union of political and regulatory advocacy at the state level and works effectively with CUNA at the national level to protect and strengthen the credit union movement. The League also provides excellent educational programs for our employees. With so many regulatory changes currently underway, the need for compliance training has never been greater, and the League has delivered.

Credit unions also have turnkey access to a number of financial products and services to better meet the needs of their members.

“I can’t imagine facing today’s political, economic, and regulatory challenges without the leadership and support of my League and CUNA at my back. There is strength in unity, and supporting a League that so ably supports us is a critical aspect of our credit union system model.”

A member of the Hispanic community, Laida believes the opportunities are vast for credit unions serving this market. The Hispanic community needs services beyond the traditional products and services offered by most credit unions, i.e. products like: check-cashing, wiring money home, payday cards – and all at a reasonable cost. Laida co-chairs CUNA’s Hispanic Outreach Task Force which provides credit unions with the right resources to attract and serve members of the Hispanic community. Some of the resources currently available to credit unions are: a free monthly e-newsletter with tips and information about how to better serve the Hispanic market, a file library, a Quick Start Kit, and links to research sites, news and government agencies to assist with the process of gathering information. floridacentral has begun the process of assisting the Hispanic community by hiring bi-lingual front-line employees, providing marketing materials and documents in both English and Spanish, and by participating in the REAL Solutions program.

CONTINUED ON PAGE 22

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FEATURE

Signs Point Toward Economic R December 2007: the month when the National Bureau of Economic Research (NBER) declared what most of us already knew: the United States was in a recession. NBER is the group that officially declares when a recession begins and ends. And although NBER hasn’t officially declared this recession over, economists such as Credit Union National Association (CUNA) Senior Economist Mike Schenk believe we are in an economic rebound albeit it a slow one.

“Nearly all the data we've seen recently point to the fact that consumers are in a better place today than they were six months ago,” said Schenk.

“In Alabama, the factors are easing a bit faster than in Florida,” said LSCU Vice President, Regulatory Affairs Bill Berg, author of the LSCU’s quarterly State Economic Profiles. “We are seeing some hope in both states, but it is a bit further behind the U.S. recovery.”

Due to the economic conditions over the last two years, the U.S. Department of Labor reports that the rapid decline of U.S. jobs is more than eight million lost. Like a domino effect, the loss of jobs meant less consumer spending which meant lower (or loss of) revenues for businesses which meant more jobs cut…a vicious cycle. Credit unions were no exception.

“So far this year, our loan business has continued to be muted compared to 12-18 months ago,” said Bill Connor, EVP/CFO of America’s First FCU in Birmingham, AL. “Overall, our loan volume is down,” said Joseph A. Melbourne Jr., president/CEO of CFE FCU in Lake Mary, FL. “In the mortgage area, we’re selling more into the secondary market now; in the past we used to hold on to the mortgages.”

U.S. payrolls increased in April by the most in four years, spearheaded by gains in private employment which is a sign that the economy is becoming less dependent on government support. The 290,000 increase in nonfarm employment exceeded expectations and followed a 230,000 March gain. However, the 6

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April unemployment rate rose to 9.9 percent from 9.7 percent the prior month because thousands of job-seekers entered the work force, according to a recent Labor Department report. The April labor market - with nearly every major industry adding to payrolls - sent an encouraging message that businesses are confident enough to start adding permanent workers. This is the best job growth rate in four years, but at this rate it takes nearly four months for the economy to grow one million jobs. This rate only recovers one ninth of the jobs that were lost. Clearly, recovery from this recession will be a long drawn out process.

“A rise in unemployment means no money to pay on loans, financial institutions writing down large amounts, draining their capital base,” said Berg. “Falling housing prices meant homeowners owed more on their mortgage than their house was worth. All are factors that aggravated the credit market conditions.”

“Despite low interest rates, I think continuing uncertainty in the job market is keeping most consumers focused on saving rather than borrowing,” said Connor.”

“We’ve probably modified about 1,000 loans so far,” said Melbourne. “On the mortgage side, about 95 percent of those whose loans were modified are still current today.”

According to CUNA’s Schenk, national indicators showing consumers are in a better place are that credit markets have returned to (toward) “normal;” housing has shown signs of stabilization; consumer confidence is up, i.e. employment picture is brighter, stock markets generally higher; spending is following; the economy is growing; and there is little inflation pressure.

Gross Domestic Product (GDP) measures the values of all goods and services produced within the United States. It is the best measure of the country's economic health. In the fourth quarter of 2009, the GDP increased 5.7 percent after increasing 2.2 percent in the third quarter, according to estimates released by the Bureau of Economic Analysis. The National Association for Business Economics predicts moderate economic quarterly growth in the three-percent range through the rest of this year.

According to the NBER “Economic Fluctuations and Growth” program report, the GDP and payroll employment (nonfarm employment) were the two main indicators the committee considered in deciding on the dates of turning points in economic activity. December 2007 was the exact peak of employment, but GDP reached a slightly higher value in the second quarter of 2008. Both measures plunged in late 2008 as the financial crisis took hold. GDP began to grow in the summer of 2009 but

Recovery employment continued to decline. The percentage drop in employment in the current recession was the largest since the government began the collection of the data in 1939. The huge difference between the recent behavior of output and employment reflects the unprecedented growth of productivity in 2009.

“We believe this [muted loan business] will continue to be the case throughout the remainder of 2010,” said Connor. “We don’t look for lending volumes to return to normal levels until well into next year.”

“I think we’re starting to see the end of this,” said Melbourne. “The most difficult thing has been to try to see the light at the end of the tunnel. But we’re beginning to see it.”

The Federal Reserve sees the 2010 economic recovery as “proceeding at a modest pace and that the deterioration in the labor market was likely coming to an end.”

“The Fed is likely to begin to raise interest rates later this year, but the increases will be small and incremental because the recovery will be muted by historical standards,” said Schenk. “Loan growth will remain weak which suggests that

Projections By CUNA Senior Economist

Mike Schenk

investment portfolios will continue to grow, putting downward pressure on credit union asset yields.

“Of course the countervailing influence will be the fact that inflation concerns are apt to push longerterm market rates higher keeping the yield curve steeply sloped - and that should help credit union bottom lines.”

Credit unions in Alabama and Florida will continue to feel the struggles of the economy. As Schenk said, their bottom lines will be impacted eventually. If the rest of the country sees the road to recovery, it will make its way down south. The road will remain long, but the sign on the side of the road is getting bigger. ■

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• Signs of Stabilization in Housing • Increased Consumer Confidence • Brighter Employment Outlook • Generally Higher Stock Markets • Growing Economy • Little Inflation Pressure

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ADVOCACY

Advocacy

Community South Credit Union: Leading by Example Community South Credit Union has been part of the Florida Panhandle community since 1959. Originally the State Road Department Credit Union, it serves more than 7,800 members in Washington, Holmes, and Jackson counties and makes it a priority to be leaders within their community politically and civically.

“People of a community invest in you and you have to invest in the community,” says Jan Page, CEO of the $77 million assetsized credit union.

Staff present gifts from a toy drive for children in foster care in Holmes & Washington counties through the Anchorage Children’s Home

Community South Credit Union participates in Relay for Life

Community South commits its resources to numerous community events and civic organizations. It has volunteers and staff participating in many local activities such as Relay for Life, high school youth programs, and community health fairs. These events provide an opportunity for area residents to learn more about credit unions as a financial alternative to banks. The credit unions hands-on involvement stems from the leadership of the credit union board and Page, who also serves on the board of Chipola College.

Community South has developed relationships with state leaders by sponsoring local legislative events for Representative Jeff Miller (R-1), State Representative Brad Drake (R-5), and State Representative Marti Coley (R-7). At each event, Page, a member of the LSCU Governmental Affairs Committee, and her staff share what credit unions do to help their members. This provides valuable feedback to local lawmakers.

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“Members of the legislature need to know who you are and know what’s important to your members,” said Page. “I’m going to fight for our members rights, because our rights and privileges will go away if we don’t.”

LSCU encourages credit unions throughout Alabama and Florida to advocate for their members in the community and with the legislative bodies that represent them.

If your credit union would like to learn about ways to become more active in grassroots, contact LSCU Grassroots and Political Action Coordinators Robbie Gordon (robbie.gordon@lscu.coop) or Justin Thames (justin.thames@lscu.coop). ■

President/CEO Jan Page at Community South’s membership appreciation cookout at their Chipley branch

The Florida Legislature Adjourned; Returning Home to Campaign The Florida Legislature wrapped up its 2010 session April 30. However, there are rumors Governor Charlie Crist will call Legislators back for a “Special Session” to revisit a number of budget items – in Florida, the Governor has line item veto power – as well as “public corruption” and a myriad of other issues.

In an election year, the Legislature usually avoids complex or controversial issues. This year it was a particularly contentious 60-day stretch: the budget was finally agreed upon with only the inclusion of more than $200 million of non-guaranteed federal funds, Governor Crist withdrew from the Republican primary to run as a candidate with No Party Affiliation (NPA), and multiple issues relating to abortion, executive appointments, and condo and homeowner fees/assessments. Through all of this, credit unions were relatively untouched.

Coming out of session, two pieces of legislation are of particular interest to credit unions. One relates to a data match program by the Department of Revenue that would recognize tax delinquents. The Department ran a pilot program several years ago utilizing Bank of America’s database and found five percent of their delinquent taxpayers among BofA’s accountholders. After a three-year fight and the Department agreeing to credit union demands, the League was finally able to succeed in getting the program passed. An exemption was secured for every credit union with less than $50 million in deposits. The exemption makes the Department pay a reasonable fee, not to exceed actual costs, for the credit union’s efforts in fulfilling their request.

The second issue relates to condo/homeowner association dues/fees and assessments. The condo/homeowner associations have long held that financial institutions drag out the foreclosure process in order to not have to pay the dues and assessments for the property in question. Rep. Ellyn Bogdanoff (R-Ft. Lauderdale), who sponsored the bill, pushed through legislation that increased from six to 12 months the amount of dues and fees a financial institution would be liable for. The LSCU worked closely with the bankers to try to avoid this increase but were not successful.

The League Governmental Affairs staff also worked with Visa, the bankers, the Florida Sheriff’s Association, and other law enforcement officials to pass a credit card fraud bill, but was thwarted by the retailers and their allies.

While this legislation wouldn’t directly impact credit unions, it was a good consumer-oriented piece of legislation.

The legislation would have closed a loophole and made it illegal to possess a stolen credit card whether the person possessing the card knew it was stolen.

The election season is now here and credit unions, like never before, need to be involved in supporting candidates who will support credit unions. One-quarter of the Florida House and half of the 20 Senate seats up for reelection will be filled by fresh faces. As highly regulated as credit unions are and as much as they are subject to the unpredictability of legislative action, political action is not a luxury but a necessity and should be considered a cost of doing business.

For additional information on the LSCU’s legislative activities in Florida, contact LSCU Vice President, Legislative Affairs Mark Landreth (mark.landreth@lscu.coop) at 866.231.0545 x1012. For information on ways to become more politically active, contact LSCU Grassroots and Political Action Coordinator Justin Thames (justin.thames@lscu.coop) at 866.231.0545 x1010. ■

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Election Season Now Here As highly regulated as credit unions are and as much as they are subject to the unpredictability of legislative action, political action is not a luxury but a necessity and should be considered a cost of doing business.

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ADVOCACY

LSCU Legislator Profile:

Marcel Black

1.

2.

3.

How did you first get involved working with credit unions?

I have worked with credit unions for more than 25 years in my law practice (Black and Hughston, Professional Corporation). My primary work with credit unions has been through providing assistance and advice in the closing of real estate loans.

What prompted you to decide to get involved with the Alabama legislature?

Politics and the inner workings of government have always interested me. In 1990, I decided to run for the State Legislature in an effort to become involved as a participant in the legislative process rather than just stand by as an observer. It is my hope that I have been a part of making the lives of Alabamians a little better over the past 20 years. I can tell you why I ran for office the first time, it is the third and fourth times that I can’t explain.

What issues is Alabama facing that concern you?

The budgets for education and general fund are always a chief concern. Providing services to the people is important and expected from the government. It is a real challenge in this time of recession to have adequate funds to meet everyone’s needs. The education of our children, the safety of the public, and the creation of new jobs, while maintaining current ones are the issues that I would put at the forefront that Alabama is facing right now.

4.

5.

How do credit unions fit into the economic picture for the Alabama Legislature?

Credit unions are an important piece of the economic future of our state. Being member-owned and memberoperated, credit unions are instrumental in providing much needed financial services to their members. I have seen firsthand how credit unions respond to the needs of their members and do so quickly, efficiently, and at a low cost.

Indeed, members of credit unions are treated as owners and not just another account.

How can credit unions help spur the Alabama economy?

Credit unions do so currently by providing ever-expanding services to members, whether for the purchase of new and used automobiles and homes or to meet the needs of unexpected emergencies that may arise for members. Credit unions provide capital to people that live in local Alabama communities and to small businesses that are the backbone of local cities and towns. The profit that a credit union makes goes back to its members and stays in the local economy as a general rule. This helps everyone that lives in the community, whether they are members or not. â–

Rep. Marcel Black (D-3) is a four-term State Representative from Tuscumbia, AL. Rep. Black serves as the Chairman of the House Judiciary Committee.

As a lawmaker and an attorney who works with credit unions, Rep. Black understands how decisions made in Montgomery affect main street businesses like credit unions and how they are able to serve their members.

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LSCU Legislator Profile:

Bill Posey

1.

2.

What role do you see credit unions playing in the financial services industry?

Credit unions provide over 90 million Americans with basic financial services and access to credit. As member-owned, non-profit cooperatives, credit unions offer that personal interaction and quality service to people sharing a common affiliation. Members benefit by exercising democratic control over their institutions and enjoy competitive rates since funds are pooled for the benefit of credit union members.

Since most credit unions are depository institutions that exercise prudent lending practices, credit union members have a peace of mind knowing that their money is not tied into complex financial practices that contributed to the financial crisis.

What prompted you to co-sponsor HR 3380?

We are still struggling to dig our way out of the financial crisis.

Members of Congress continue to hear mixed messages from federal financial regulators and our constituents about the availability of credit. H.R. 3380 is one of many ways to extend credit to help small businesses make it through these tough economic times. Additionally, despite the challenges ahead, some entrepreneurs are willing and able to move forward in accomplishing their dreams, and credit unions can help offer credit to those with sound business plans when credit is tight.

3.

4.

5.

How have credit unions impacted the growth in your area?

Credit unions offer those living in East-Central Florida access to financial services and credit whether for a home improvement, an auto loan, or for a small business. We have a wide variety of credit union common bonds so there are many credit union options available for residents of the 15th District. During these challenging economic times, many of my constituents have turned to their credit union to help them meet their financial needs.

How do you think credit unions can help with those that are homeless and jobless?

Credit unions, owned by their members, are able to work closely with their members when difficult times arise. Credit unions are connected with their communities and promote financial literacy, helping their members make sound financial decisions. Internationally, the credit union approach has excelled as a development model, alleviating poverty and empowering people of modest means to establish small business ventures.

Do you belong to a credit union?

Yes, I do. Community Credit Union headquartered in Rockledge, FL. â–

Congressman Bill Posey represents Florida’s 15th Congressional District which encompasses most of Brevard County south of the city of Cocoa, Indian River County, most of Osceola County, and a small portion of Northern Polk County.

Posey, a Republican, was elected to U.S. House of Representatives in 2008 and is currently serving his first term.

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COMPLIANCE

Compliance Tracking TDR’s In the first-quarter issue of Signal, Troubled Debt Restructuring (TDR) was featured because it is causing many accounting headaches and, unless this is done properly, credit unions will be exposed to issues from regulators.

All loans and leases that have been modified because of the deterioration in the financial condition of the borrower are considered TDRs under the Generally Accepted Accounting Principles (GAAP) which are the standards under which Certified Public Accountants (CPAs) operate.

As outlined in the National Credit Union Administration’s (NCUA) March Call Report instructions, all modifications (any contractual change to a loan) will need to be tracked. However, loans written to Fair Market Value (FMV) – for example, when a member tells you that they can get a better rate - are not reported.

Per the Call Report Instructions, TDRs are reported as delinquent and must be reported until the debtor has made six consecutive monthly payments (per NCUA). In the past, most CPAs used three consecutive monthly payments before TDRs may be treated as performing as expected. It is also required to calculate the year-to-date of TDRs. Both of these new requirements require a great deal of manual activity to develop good numbers to enter into a credit union’s call report.

Some of the best guidance found on this topic is in the NCUA’s letter 09-CU-19 which provides information about real estate. However, since the NCUA has now expanded this to include all loans and leases, following this letter is prudent.

TDRs should be made under the umbrella of a wise business decision. For example, ABC CU made a $400,000 loan on a $500,000 house in 2006.

Unfortunately, the real estate market has since declined and the best the credit union could get on this house in a short sale is $250,000, meaning its 12

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potential loss is $150,000. Furthermore, if the house is foreclosed, the already-depressed real estate market in this area will be further depressed. The member wants to stay in the house but one of the people making the mortgage payments lost their job and they can’t afford the current payments. One option would be offering a combination of lowering the interest rate and/or reducing the principal to lower the member’s monthly payment to something they can pay. It will meet regulatory scrutiny as long as it doesn’t exceed the $150,000 that the credit union would lose by taking over the property.

One suggestion to put in the loan modification contract is that if the house appreciates 15 percent over the next 10 years, the credit union would share in this appreciation.

TDRs, because of the higher probability of default, must be tracked and reported separately in the Allowance for Loan and Lease Loss (ALLL) for the six consecutive monthly payments.

After six consecutive payments the loan is no longer considered delinquent but the value of any concessions that were given to the member will have been charged off which will affect your loss experience ratio for the next several years. ■

Compliance Q&A Question: A potential member has provided your MSR with a Social Security card that says “VALID FOR WORK ONLY WITH DHS AUTHORIZATION.” Is this a valid government document?

See back cover for the answer.

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What other financial services company in the world commits more to understanding the needs of credit unions and their members than CUNA Mutual Group?

We are privileged to partner with you, and are proud of the opportunity

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INITIATIVES

Cooperative Initiatives On the way for LSCU Credit Unions: Save to Win?” Alabama credit union members responded to the recession with record savings growth in 2009 as they saved more than $1.37 billion. For Florida members, it was a different story as credit unions experienced a negative savings growth rate even though members saved $1.8 billion. The recession has focused attention on the need to save and focus on long-term financial security. According to a recent innovation brief published by the Filene Institute: “The time is right for America to return to a savings culture, both to shore up households’ finances and to strengthen the nation’s economy as a whole.”

As the League of Southeastern Credit Unions (LSCU) looked for ways to enhance the financial skills of consumers in Alabama and Florida, one concept stood out: prize-linked savings. The prototype prize-linked savings program, Save to Win, was implemented in Michigan during 2009. Through a grant from the National Credit Union Foundation (NCUF) and its REAL Solutions program, the LSCU will bring a fun, non-threatening savings program that will appeal to current credit union members as well as the under- or un-banked segments of the public, showing the short- and longterm benefits of goal-setting and saving.

“Financial education for adults is an important priority for the LSCU,” said Patrick La Pine, president and CEO. “Prize-linked savings programs have a successful track record for attracting first-time savers and we will be building on those successes as we introduce the concept in Alabama and Florida.”

Members open a year-long share certificate with as little as a $25 deposit and earn entry in monthly prize drawings and an end of year grand prize drawing. A legal review of the program is under way and it appears as though the prize-linked savings program will be structured differently in Alabama than in Florida.

Prize-based savings has been shown to attract both new, lower-income savers as well as more well-off larger depositors, according to research by Filene and the D2D (Doorways to Dreams) Fund. The project allows participating credit unions, regardless of membership or asset size, to provide their members (and potential members) with a tangible reason for saving and for learning about saving and savings products. The project will provide face-to-face interaction on a regular basis, which will build relationships and make the delivery of financial education easier and less threatening. Specifically, the project will

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enable participating credit unions to help existing members reach their savings goals and bring them into branches more consistently; attract new members; help differentiate credit unions from other financial institutions; provide incentive for lower-income members to save; collaborate with and learn from fellow credit unions and the League; and be part of an important project which will impact savings in two states and offer participating members a large, pooled grand prize.

While one Michigan woman was the “winner” of a $100,000 grand prize in the Michigan Credit Union League’s Save to Win program, all of the other 11,600+ participants were also winners as they saved more than $8 million to fund future dreams and to cope with emergencies.

Data provided by the Michigan Credit Union League and the National Credit Union Foundation confirms a positive impact on members: • 56 percent of participants reported that they had not saved money regularly before opening a Save to Win account • 64 percent reported that they had never had a share certificate (or certificate of deposit) before opening a Save to Win account • 39 percent of accountholders were “asset poor” with financial assets (excluding home equity) totaling less than $5,000 • 44 percent reported household incomes of less than $40,000 • 16 percent reported household incomes of less than $20,000 • Low-to-moderate income members achieved savings rates ranging from 2.3 to 5.2 percent, depending on income level

Patrick La Pine President & CEO The LSCU’s Cooperative Initiatives staff has developed an implementation plan for Alabama and Florida and will be introducing the concept to credit unions in both states and encouraging participation.

“Credit unions of all sizes can participate in the prize-linked savings program,” said La Pine.

DCH Credit Union, a $30 million asset credit union with 5,940 members in Tuscaloosa, AL, has already expressed interest in participation. Board members Bernadine Roberts and Ben Horton read about the program in an AARP publication and contacted the Cooperative Initiatives staff about the possibility of implementing a similar program in Alabama.

“A Save to Win program would enable us to reach our strategic goals of attracting young adult members, meeting the financial needs of the underserved, and providing financial education for our members,” said Roberts.

For additional information on prize-linked savings programs, comprehensive data is available at www.realsolutions.coop or www.filene.org.

To discuss participation in the LSCU program, contact Laura Vann, VP, Cooperative Initiatives, at laura. vann@lscu.coop or Adena Whitman, Director, Member Relations, at adena.whitman@lscu.coop. ■

“Financial education for adults is an important priority for the LSCU.”

Michigan 2009 Save-to-Win Results Participating CUs:

8

Total Saving Certificates:

11,666

Total Savings:

$8,560,382.56

Average Savings Account:

$733.79

Member Penetration:

4.3%

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Foundation 2010 Scholarship Recipients

Florida high school seniors awarded scholarships through the Florida Credit Union Foundation.

Broward Chapter Alejandra Esteban Stranahan High School Fort Lauderdale, FL IBM Southeast Employees FCU

Gulf Coast Chapter

Northwest Chapter Katelyn Ann Murphy Escambia High School Pensacola, FL Members First CU of Florida

Fania Desinord

Adriana Elaine Guettler

Janna Ellis

Boyd D. Anderson High School Lauderdale Lakes, FL City County CU

Chipley High School Chipley, FL Community South Credit Union

Jay High School Jay, FL Santa Rosa County FCU

Gabriela Dunk

Nicole Yeakos

Stephanie Kay Sharp

Piper High School Sunrise, FL Priority One

Paxton High School Paxton, FL Army Aviation Center FCU

Booker T. Washington High School Pensacola, FL Members First CU of Florida

Central Florida Chapter Jarrod Fleming Edgewater High School Orlando, FL CFE FCU

Brittany Fetz Lake Gibson High School Orlando, FL MIDFLORIDA

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Mary Claire Dillard William R. Boone High School Orlando, FL Orlando FCU

April Wester

Zackary William Ables

Rutherford High School Panama City, FL Panhandle Educators FCU

Pine Forest High School Pensacola, FL Members First CU of Florida

Robyn LeAnn Brannan

Palm Beach Chapter

Liberty County High School Bristol, FL Envision CU

North Central Chapter

Reyes Reyes, Jr. Glades Central High School Belle Glade, FL Gold Coast FCU

Catalina Chiang

Andrew Barber

Adrianna Dolphin

The Osceola County School for the Arts Kissimmee, FL CFE FCU

Columbia High School Lake City, FL Suncoast Schools FCU

John I. Leonard High School Greenacres, FL PBC CU

Northeast Chapter

Brandi Roach

Symiela McClinton

Apopka High School Apopka, FL CFE FCU

Sandalwood High School Jacksonville, FL VyStar CU & Compass Financial FCU

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Kristen Pender Palm Beach Lakes Community High School West Palm Beach, FL Gold Coast FCU

Pinellas Chapter Victoria Bryant St. Petersburg High School St. Petersburg, FL Achieva CU

Sara-Mana Chapter Jasmine Jordon Booker High School Sarasota, FL Sarasota Municipal ECU

Kayla Helveston Hardee Senior High School Wauchula, FL Suncoast Schools FCU

Awarding hopes & dreams to Florida students.

Jacob Ian Cunningham Lincoln High School Tallahassee, FL Suncoast Schools FCU

Tampa Chapter Edward William Livesay

Katherine Colding Desoto County High School Arcadia, FL Suncoast Schools FCU

Southernmost Chapter Sehrish Ali Coral Reef Senior High School Miami, FL South Florida Educational FCU

Tallahassee Chapter

East Bay High School Gibsonton, FL

Kaitlin Greene Thomas Jefferson High School Tampa, FL GTE FCU

Cassie Lynn Hoffman Pasco Comprehensive High School Dade City, FL San Antonio Citizens FCU

Tekevia Melton Godby High School Tallahassee, FL Score CU

Jacob James Robinson Dr. Earl J. Lennard High School Ruskin, FL Grow Financial FCU

Emily Marie Poltevecque Lawton Chiles High School Tallahassee, FL State Employees CU

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Think POSitive!

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e tivge i t e mp an Coterchnue. in reve

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Joining the nation’s largest credit union-owned POS network means your credit union receives interchange revenue. There are no exclusivity contracts or hidden fees. And by keeping your business in the credit union “family”, you have ownership and control.

Your members win too, because they get surcharge-free cash back at over 500,000 merchant locations across the country. No matter where your members go, their money is conveniently there. It’s a safe and secure, one-stop-shop solution. By joining our network you can have a say in how the network operates. Think POSitive. Think Credit Union 24.

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Credit Union-Owned Point of Sale • Largest Surcharge-Free ATM Access • Half a Million Member Connections

EDUCATION

League Education Save-the-Date

Important Conferences for 2010 Disaster Recovery Conference: A disaster can strike at any moment. But, credit unions in Alabama and Florida know that the threat of a disaster is year round, not just during hurricane season.

Recent floods in Tennessee drive home the fact that an unforeseen disaster can occur when you least expect it. To keep credit unions up to date on the latest preparedness, the LSCU is offering two Disaster Recovery Conferences this summer. Credit unions can attend in either Ft. Lauderdale or Mobile. Each conference will have a member of the National Hurricane Center speak, along with LSCU Vice President, Regulatory Affairs Bill Berg and Southeast Corporate Vice President, Business Continuity Ken Schroeder. Make plans to attend the LSCU Disaster Recovery Conference in Ft. Lauderdale June 29 or Mobile July 13. Visit www.lscu.coop for more details. ■ LSCU Development Conference: Historically an Alabama Credit Union League event, the LSCU brings credit union executives and officials top-notch training and information through the LSCU Development Conference, November 3-5. CEOs, executive management, and directors won’t want to miss this opportunity to network and learn! The Development Conference will be held at the beautiful Grand Hotel Marriott Resort, Golf Club, & Spa, in Point Clear, AL, and provides a mix of relevant education sessions, motivational speakers, and fun networking activites, including a golf tournament. Attendees will also have the opportunity to interact with industry leaders during the exhibitor showcase. Mark your calendars and join us in Point Clearfor this premier conference! ■

Supervisory Committee Conference August 1-4, 2010 Point Clear, AL

LSCU Development Conference November 3-5, 2010 Point Clear, AL

LSCU Development Conference November 3-5, 2010

Grand Hotel Marriott Resort, Golf Club & Spa Point Clear, Alabama www.marriottgrand.com

Upcoming Conferences LSCU Disaster Recovery Conference June 29, 2010 8:30 a.m. – 4 p.m. ET Ft. Lauderdale, FL July 13, 2010 8:30 a.m – 4 p.m. CT Mobile, AL Local threats and the mobile emergency management center, crisis management, threats and risks, regulatory structure and requirement for robust business continuity plans, disaster preparedness ideas and tips, and special loan promotions that you can offer that might be useful to your members to help them mitigate a disaster and then recover from a disaster.

BSA Training July 29, 2010 Tuscaloosa, AL Bank Secrecy Act Program Oversight, Creation and Maintenance, Risk Assessment, Review of Currency Transaction Reports, Currency Transaction Report Exemptions.

BSA Essentials 9:30 a.m. – 11:30 a.m. CT The BSA Essentials class is appropriate for frontline staff, lenders, and officials. The two-hour class incorporates a Currency Transaction Report workshop in which we study completed forms based on several common scenarios.

BSA Advanced 12:30 p.m. – 2:30 p.m. CT The BSA Advanced class is appropriate for managers and compliance officers. The two hour BSA Advanced class incorporates a Suspicious Activity Report workshop in which we study completed forms based on several common scenarios (focusing on narrative preparation).

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THE BENEFITS ARE CLEAR $5 Membership Fee No Paid In Capital Requirement Solvent Positive ROA 30 Day Notice Account Currently @ 0.47% No Member Write-Off of PIC or MCA

Looking for a Corporate Credit Union that is different from the rest? It’s Corporate America Credit Union. We aren’t afraid to zag when others zig.

Talk to us. We think you’ll like the approach.

Contact Member Services at (205) 313-4300 or (800) 292-6242, ext. 150 or visit our website at www.corpam.org.

COMMUNICATIONS

Communications Image Campaign coming in 2011 When credit unions look back at the economic turmoil of the past two years and the ensuing backlash against the big banks, one sentiment is clear: there has never been a better time to be proactive toward potential members. Credit unions do a great job of advertising and marketing individually, but a cooperative advertising campaign can be sustained for longer periods and show results for credit unions.

In April, Image Campaign Task Forces were formed in Alabama and Florida to lay the foundation for an annual cooperative advertising campaign. In 2009, Alabama created a campaign, “It’s Just What You’ve Been Looking For.” A $250,000 media buy was placed along with the launch of an accompanying website. The Alabama Task Force felt that it was important in 2010 to create a new campaign that hit TV, the web, and social media. Phil Boozer, vice president of marketing at America’s First CU in Birmingham, feels a fresh approach will be more appealing to Alabama credit unions.

“What we did in 2009 was effective. However, the group felt a new campaign that was a little more aggressive and more broad would reach a larger audience,” said Boozer, chair of the Alabama Image Campaign Task Force.

“I’ve heard from many credit unions that they would support a statewide cooperative advertising campaign. They feel the time is right. As a league, we’re excited to put this campaign together with the task forces and show it to credit unions,” said La Pine.

The state of Florida has not had a cooperative advertising campaign before. Two years ago, the Florida Image Campaign Task Force did extensive market research and work toward a campaign. Most of the themes found in the research still hold true today since the economic climate is relatively similar. Angie Coleman-Rao, vice president of marketing at Jax FCU in Jacksonville, says that some of the initial start up costs

will be smaller since much of the previous research will be used in the 2011 campaign.

“For the state of Florida, the foundation for a campaign is there. Now we need to take the research, form a unified message that appeals to all credit unions, and present it around the state,” said Coleman-Rao, chair of the Florida Image Campaign Task Force.

The two image campaign task forces will come together over the summer to determine themes that will appeal to both states and begin to formulate the visual look of the campaign. By late summer or early fall credit unions in both states will have the chance to get a sneak preview. The LSCU President and CEO Patrick La Pine says that the League has made an image campaign a priority.

“I’ve heard from many credit unions that they would support a statewide cooperative advertising campaign. They feel the time is right. As a league, we’re excited to put this campaign together with the task forces and show it to credit unions,” said La Pine.

For more information on the Image Campaign Task Forces in Alabama and Florida, contact LSCU Vice President, Communications Mike Bridges (mike.bridges@lscu.coop) at 866.231.0545 x1022 or contact LSCU Director, Information Services Amy Jowers (amy.jowers@lscu.coop) at x1020. ■

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NEWS

League News Legacy Community FCU Helping its Community Through Kindness The LSCU is working with Legacy Community FCU to help gain media attention for its “Do Something Good Campaign.” Legacy has a “Do Good Crew” that is doing a number of good works in Birmingham, AL and the surrounding area. For six weeks, the crew has performed random acts of kindness for unsuspecting people. The campaign is designed to promote a pay it forward attitude for Legacy’s members. The campaign has garnered quite a bit of media attention. The LSCU helped Legacy secure a feature story in Think Magazine for credit unions. Any credit union that needs assistance in media relations, contact LSCU Vice President, Communication Mike Bridges at mike.bridges@lscu.coop or 866.231.0545 x1022. ■

Chapter Leaders Share Best Practices & More at LSCU’s 1st Annual Chapter Leaders’ Retreat LSCU hosted its first annual Chapter Leaders’ Retreat in Pensacola, Florida. With 17 of the 20 chapters represented, the meeting brought together regional leaders to share best practices, program ideas, and strategic planning.

“Well organized and active chapters add tremendously to our voice in the legislature, grassroots advocacy, and overall fundraising efforts,” said Patrick La Pine, LSCU president and CEO. “Creating this powerful network across both states and empowering them through shared information enables the credit unions to broaden and strengthen their local impact.”

Through a variety of speakers and roundtable sessions, the chapters explored the differences in chapter structures, discussed various fundraising and advocacy activities, and the importance of strategic and quality program planning.

“Bringing these credit union leaders together is an important part of meeting the needs of our ever-evolving credit union family,” said Laura Vann, vice president of Cooperative Initiatives. “We will be continuing these kinds of events to facilitate the sharing of information and the exchange of information that enables the League members to work as a single entity across multiple states.”

For more information about becoming a chapter leader or participating in chapter events, contact Laura Vann at laura.vann@lscu.coop. ■

CU President Profile (Continued) “We have also made a strong effort to reach out to the Hispanic community by communicating our message to local churches, convenience stores or ‘bodegas,’ and other businesses where Hispanics worship and shop.”

Not only is Laida committed to credit unions on a state level, she is very involved on the national level. She currently serves as a CUNA director and on the board of the National Credit Union Foundation as treasurer. She is also a member of the Filene Research Institute Advisory Council and was recently invited to join WOCCU’s new Global Women’s Leadership Network.

She is amazed by the degree of talent, level of commitment, and energy that her fellow colleagues exhibit as volunteer members of these boards, committees, councils, and networks and that it clearly demonstrates that there are many opportunities for credit union leaders to get involved and to take an active role in giving back to an industry that is made better and stronger by such involvement. However, the biggest challenge at this level comes from a lack of unity exhibited by some credit union leaders.

“If the credit union system is to remain strong and viable, we must all speak with ‘one voice’ on Capitol Hill. Personal differences must be put 22

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aside, and we must all work together for the good of our industry and our members, regardless of the size of your credit union, your charter, or which trade association you are affiliated with. One credit union voice on Capitol Hill.”

Coming from humble origins, a low-to-moderate income household with parents who worked hard to provide for their family and depended on their local credit union to help fulfill their dreams of owning a home or sending their children to college, Laida subscribes to the philosophy of “people helping people.” Other than ensuring the safety and soundness of floridacentral – the manner in which it conducts business, the products or services that are implemented, the policies and procedures that are established – are all viewed from the members’ perspective. She is also a firm believer in leading by example and setting high goals and expectations for me and my employees.

“The ‘if it ain’t broken, don’t fix it’ mentality doesn’t work for me. ‘It ain’t broken’ means ‘you’re not looking hard enough.’ There is always room for improvement, and I believe in presenting challenges that call forth the best in people and bring them together around a shared sense of purpose.” ■

LEVERAGE Leveraging system resources, buying power, and collaborative influence to chieve efficiencies, save money, and offer best-in-class products for credit unions.

The credit union movement began with a simple idea – that people could achieve a better standard of living for themselves and others by pooling their savings and making loans to neighbors and co-workers.

Just as the members of credit unions pool their resources for the good of other members, LEVERAGE works with credit unions to pool their resources, buying power, and collaborative influence to achieve efficiencies, save money, and offer best-in-class products for its members.

LEVERAGE uses the credit union cooperative spirit in its approach to providing products and services for credit unions.

Through carefully reviewed solutions, LEVERAGE offers a variety of products and services that will strategically enhance your credit union’s vision for success. It is essential to integrate solutions that will be the right fit for your credit union’s members, community, and culture.

Before offering a product or service to integrate within credit unions, LEVERAGE conducts a well-defined, thorough due diligence process to ensure that the business solutions we select meet the most stringent requirements. This process begins through a feasibility and quality review to proper risk assessments and planned pilot stages. The product/service is continuously under review to ensure the safety and soundness of the partner providing the solution as well as an ongoing benchmarking strategy amongst competitors in the industry.

By leveraging services, we reach out to credit unions to supply them with tools to make certain they are managing business processes in the most efficient way.

• CU-ACE offers credit unions the confidence that they are meeting regulatory requirements through services provided by certified audit and compliance field experts.

• Ventelligence offers third party vendor management software that formalizes contract management and embraces collaborative buying strategies that saves credit unions significant money.

• HRx offers recruiting services that help credit unions find the talent that fits the culture of their credit union resulting in a hire that is more likely to make a long-term difference within the organization.

As neighboring financial institutions are trudging through the tough economy, credit unions will shine by saving money and having more time to tune in with their members needs. This is the time to LEVERAGE your resources so that the community will take notice of the humble institution that will be the leader in financial services for many years to come. ■

BUYING POWER

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

Cost ion Reduct ns

Connectio

tive a r o ab Coll Buying

GRO WT H

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.

Planning for Your ACH Audit The National Automated Clearing House Association (NACHA) requires all credit unions that process ACH transactions to perform an annual compliance audit of those operations.

These audits must be completed by December 1 of each year. It’s not too early to reserve your spot to have CU-ACE perform your ACH compliance audit. Why CU-ACE?

• Your audit will be performed by an Accredited ACH Professional.

• CU-ACE’s services include audits for RDFI’s (receiving depository financial institutions) and ODFI’s (originating depository financial institutions).

• CU-ACE is a credit union system company; owned and operated by LEVERAGE. • CU-ACE has been performing audits for credit unions for more than 35 years.

• CU-ACE’s pricing is most often less than other ACH audit organizations; for example, 2010 RDFI Audits are only $895 flat fee.

For more information, contact a LEVERAGE Business Development Consultant at consult@myleverage.com. ■

Generating Smiles One Gift Card at a Time Giving a gift for any occasion has never been easier with LEVERAGE’s Gift Card Services Program.

Enhance the services provided to your members by offering gift cards at your credit union. The LEVERAGE Gift Card Program has low implementation costs and provides additional income earning opportunities for credit unions.

The cards are loaded through a very simple web-based application. Members enjoy 23 different card designs to choose from with immediate activation.

Additional services include the ability to track purchases and check balances online and access to an automated toll-free number for balance verifications.

For more information about gift cards, contact a LEVERAGE Business Development Consultant at consult@myleverage.com. ■

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DIRECTORY

LSCU Directory LEAGUE 22 Inverness Center Pkwy, Ste 200 Birmingham, Alabama, 35242 3773 Commonwealth Blvd Tallahassee, Florida 32303 LSCU Offices Toll Free Number 866.231.0545 Administration Patrick La Pine, x2113 (AL) x1002 (FL) President & CEO patrick.lapine@lscu.coop Cassandra Grayson, x1004 Association Services Chief of Staff cassandra.grayson@lscu.coop Teresa Gray, x2110 Executive Assistant to President teresa.gray@lscu.coop Communications Mike Bridges, x1022 VP, Communications mike.bridges@lscu.coop Amy Jowers, x1020 Director, Information Services amy.jowers@lscu.coop Mary Ventre, x1014 Communications Assistant mary.ventre@lscu.coop Compliance Bill Berg, x1028 VP, Regulatory Affairs bill.berg@lscu.coop Scott Morris, x2165 Director, Compliance scott.morris@lscu.coop Cooperative Initiatives Laura Vann, x2181 VP, Cooperative Initiatives laura.vann@lscu.coop Adena Whitman, x2134 Director, Member Relations adena.whitman@lscu.coop

LEVERAGE David Lenoir, x2158 Member Relations Specialist david.lenoir@lscu.coop Amber Tynan, x1154 Member Relations Specialist amber.tynan@lscu.coop Jeanie Henson, x1038 Member Relations Specialist jeanie.henson@lscu.coop Education Joy Breedlove, x2162 VP, Education joy.breedlove@lscu.coop

Finance & Administration Carol Lucas, x2155 EVP/Chief Financial Officer carol.lucas@lscu.coop Scott Morgan, x1110 VP, Finance & Administration scott.morgan@lscu.coop Susan Sungelo, x2153 CUSC Accountant susan.sungelo@lscu.coop Mike Couey, x2136 Accounting Manager mike.couey@lscu.coop

Julianne Talley, x1148 Director, Events julianne.talley@lscu.coop

Chris Staggs, x2127 Staff Accountant chris.staggs@lscu.coop

Brandy Norvell, x2172 Events Coordinator brandy.norvell@lscu.coop

Angie Moyer, x1116 Director, Accounting angie.moyer@lscu.coop

Becki Payne, x2129 Association Services Support Specialist becki.payne@lscu.coop

Angie Meisenheimer, x1114 Staff Accountant angie.meisenheimer@lscu.coop

Governmental Affairs Mark Landreth, x1012 VP, Legislative Affairs mark.landreth@lscu.coop

Mary Kirkham, x1118 Staff Accountant mary.kirkham@lsuc.coop

Will McCarty, x2137 VP, Legislative Affairs/Staff Counsel will.mccarty@lscu.coop Justin Thames, x1010 Grassroots & Political Action Coordinator justin.thames@lscu.coop Robbie Gordon, x2164 Grassroots & Political Action Coordinator robbie.gordon@lscu.coop Tracy Shimanski, x1008 Association Services Support Specialist tracy.shimanski@lscu.coop

Cathy Cameron, x1054 Operations Assistant cathy.cameron@lscu.coop Sue McKenzie, x1124 Operations Assistant sue.mckenzie@lscu.coop Liz Aperauch, x1142 Human Resources Manager liz.aperauch@lscu.coop Phillip Tyre, x1132 Director, Information Technology phillip.tyre@lscu.coop William Ross, x1134 Information Technology Specialist william.ross@lscu.coop

LEVERAGE Toll Free Number 866.231.0545 Marvin Garland, x1102 EVP & COO marvin.garland@myleverage.com Jo Ellen Christy, x1106 Executive Assistant to COO joellen.christy@myleverage.com Transactional Services Larry Rodriguez, x2169 VP, Transactional Services larry.rodriguez@myleverage.com Janice Jordan, x2176 Director, Transactional Services janice.jordan@myleverage.com Win Cooper, x2115 Sr. Transactional Services Specialist win.cooper@myleverage.com Tameka Dukes, x2178 Shared Branching Manager tameka.dukes@myleverage.com Chris Dirmann, x1182 Director, Card Services chris.dirmann@myleverage.com David Todd, x1198 Member Service Representative david.todd@myleverage.com Robert Plant, x1194 Member Services Representative robert.plant@myleverage.com Flo Goff, x1192 P/T Member Service Representative flo.goff@myleverage.com Giles Paul, x1200 P/T File Clerk giles.paul@myleverage.com Angela Harris, x1190 Card Services Manager angela.harris@myleverage.com Amy Bryant, x1196 Sr. Member Services Representative amy.bryant@myleverage.com Nikki Anderson, x1184 Member Services Representative nikki.anderson@myleverage.com Barbara Parsont, x1186 P/T Member Services Representative barbara.parsont@myleverage.com Richard Abt, x1152 Account Manager, Card Services richard.abt@myleverage.com

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Audit & Compliance Ashley Mobley, x2121 AVP, Auditing Services ashley.mobley@myleverage.com

Business Development Mary Elicia Del Santo, x1144 VP, Business Development me@myleverage.com

Angelic Pritchett, x2133 Director, Management Consulting Services angelic.pritchett@myleverage.com

Lisa Hammock, x1146 Business Development Consultant lisa.hammock@myleverage.com

Mallory Pennington, x2138 Sr. Auditor mallory.pennington@myleverage.com

Dale Goode, x2177 Business Development Consultant dale.goode@myleverage.com

Krystal Navarre, x2124 Auditor krystal.navarre@myleverage.com

Dennis Lee, x2151 Business Development Consultant dennis.lee@myleverage.com

Melissa Hamner, x2132 Auditor melissa.hamner@myleverage.com Lynda Knox, x2135 Service Corporation Support Specialist lynda.knox@myleverage.com Product Support Keith Hopkins, x1170 VP, Product Support keith.hopkins@myleverage.com Deirdre Rhodes, x1104 Product Support Manager deirdre.rhodes@myleverage.com Jean Noel, x1188 Product Support Specialist jean.noel@myleverage.com Product Development Anita Stoumbelis, x1140 VP, Product Development anita.stoumbelis@lscu.coop Brooke Collins, x1050 Service Corporation Support Specialist brooke.collins@myleverage.com April Brown, x1162 Director, Marketing april.brown@myleverage.com Detra White, x1156 Production Artist detra.white@myleverage.com

PARTNERS BlackBook Access the most current used vehicle values and new vehicle invoices for a wide range of vehicles, 24/7.

CO-OP Financial Services Enhance services to your members by expanding your ATM service delivery channels through more than 28,000 surcharge-free ATMs. Corporate Business Solutions Streamline and enhance your payroll, benefits administration, and employee legal compliance processes by outsourcing to Corporate Business Solutions, a Professional Employer (PEO) and Administrative Services Organization (ASO).

CU Members Mortgage Earn fee income based upon your participation in the origination and/or temporary funding of loans and build your mortgage loan portfolio.

CUNA Mutual Group Insurance and protection for your credit union and members; lending solutions and marketing programs for bottom-line impact; employee benefits to recruit and retain the right employees.

CUNA Strategic Services, Inc. Access for credit unions to products, services, and technologies.

GE Take advantage of preferred auction lanes and best-in-class processes to maximize your recovery dollars for auto liquidation.

John M Floyd & Associates Earn non-interest income and provide an overdraft protection program to your members.

KG & Associates Take the guess work out of your compensation practices through Compease, a comprehensive, easy-to-use salary administration program.

Landrum Professional Outsource most of your daily human resources functions with Landrum Professional, a full-service PEO. NADA Access the most current used vehicle values and new vehicle invoices for a wide range of vehicles, 24/7.

NewGround Enhance your retail delivery with a combination of branding, consulting, branch design and build, marketing, and culture development.

Office Depot Save money on office supplies, break room supplies, promotional products, furniture, and computers.

Print Resources Obtain high quality low-cost printing solutions for all of your collateral printing needs and a variety of other marketing services.

SECUREWORKS Prevent intrusion and safeguard your member’s data. SecureWorks is a market leading provider of world class information security services with more than 2,700 clients worldwide.

Telecom Recovery Quickly recover communications in the event of a disruption in telephone service.

Telecom Recovery offers an affordable protection service that enables callers to get through to a credit union’s main phone or fax number, through rerouting technology and recover inbound calls to mass notification.

VERAFIN Detect BSA/AML fraud with leading-edge compliance and fraud detection software.

For more information on any of these solutions, contact a Business Development Consultant at consult@myleverage.com.

For information on partnership with LEVERAGE, contact a Product Development Consultant at partner@myleverage.com.

OMNIA Group Hire the right person the first time. The Omnia® Profile is a behavior-based employee assessment tool that describes preferred behaviors and predicts potential candidate and employee job compatibility.

Ashley Hanania, x1030 P/T Marketing Assistant ashley.hanania@myleverage.com Lori Vary, 941.747.9646 Director, ePurchasing lori.vary@myleverage.com

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SIGNAL MAGAZINE 3773 COMMONWEALTH BOULEVARD TALLAHASSEE FL 32303

Compliance Q&A Q: Member service representatives (MSRs) for ABC FCU are required to ask for two types of identification when opening a new account – documentary (issued by the government and reflecting a photo) and non-documentary. Potential members will often provide their Social Security cards as a form of non-documentary identification.

A potential member has provided your MSR with a Social Security card that says “VALID FOR WORK ONLY WITH DHS AUTHORIZATION.” Is this a valid government document?

Answer: Yes. According to the Social Security Administration website, this is a valid Social Security card. There are three types of Social Security cards.

The first type shows an individual’s name and Social Security number and permits the individual to work without restriction. This card is issued to U. S. citizens and individuals lawfully admitted to the United States on a permanent basis.

The second type of card shows the individual’s name and number and notes “VALID FOR WORK ONLY WITH DHS AUTHORIZATION.” This card is issued to individuals lawfully admitted to the United States on a temporary basis who have Department of Homeland Security (DHS) authorization to work.

The third type of card shows the individual’s name and number and notes, “NOT VALID FOR EMPLOYMENT.” This card is issued to individuals from other countries who: are lawfully admitted to the United States without work authorization from DHS, but have a valid nonwork reason for obtaining a Social Security number or need a Social Security number to get access to certain benefits or services.