Q310 Signal by LSCU MarComm

The Magazine of the League of Southeastern Credit Unions

Make A Difference: VOTE Plan of

1. Review Action Voter Gu ide 2. Make PAC Donation 3. Choose Candidat es 4. Vote

Maybe

Yes

Goal: Elect Credit Union Legislators

Inside LSCU Off to the Races A Better Examination Process Membership Value Fall 2010 Volume 1: Issue 3

Educational Development Financial Strategies for 2011

Table of Contents

Editor Amy Jowers

Message from the President

CU President Profile

Contributors: Bill Berg Joy Breedlove Mike Bridges Kathy Rolfs Anita Stoumbelis Justin Thames Laura Vann Production: April Banta Detra White

Jane Boysen | Alabama Rural Electric FCU Jane answers questions about challenges, legislative involvement, making a difference, and more.

Off to the Races: It’s Almost Election Time

Letters to the Editor may be submitted at submissions@lscu.coop.

If credit unions are to protect and expand service to members and defend existing tax exemptions, it is imperative for the credit union industry to elect officials who understand the difference between credit unions and other financial institutions and will advocate for credit unions to protect them from unnecessary and burdensome laws. 13

COMING SOON 2011 Credit Union Image Campaign for Alabama & Florida

Feature Article

Advocacy 2010 Candidate Endorsements PAC Fundraising Guide

HIGHLIGHTS 14 | Legislative Profiles

16 | Compliance

25 | Communications

Alabama’s 41st Legislative District Representative Mike Hall and Florida’s Senator George LeMieux answer LSCU’s questions.

NCUA will use administrative action quicker than in the past. Discover what examiners expect and better examination process.

Using social media as a tool to interact with credit union members.

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Table of Contents 14 Legislator Profiles LSCU interviews legislators so members can get to know them and gain perspective on their platform. 16

Compliance

Cooperative Initiatives

League Education

Mike Hill (R) 41st Legislative District, AL

George LeMieux (R) Senator, FL

Education Developed with Adult Principles in Mind Adult education, also known as “androgogy,” can be defined as the set of specific skills and associated knowledge geared towards the educational development of adults. It emphasizes the fact that adults are self-directed and make their own decisions. When the LSCU designs curriculum, chooses topics, speakers, content, etc. for our educational programming, we consider the principles of adult education. 25

Communications Making Social Media Work for Your Credit Union Social media can be a wonderful tool to help credit unions interact with members; but there is a fine line between facilitating quality interactions and turning off the very members credit unions are trying to reach.

League News 2010 AC&E Highlights Ad Agency Chosen for 2011 Image Campaign

LEVERAGE

Directory

HIGHLIGHTS

18 | Cooperative Initiatives

23 | Development Conference

29 | New Products

LSCU staff set out to understand credit unions’ challenges and goals so they can create the best membership value.

Kick off your shoes and get down to business at the 2010 LSCU Development Conference with powerful educational sessions, outstanding networking opportunities, and more.

LEVERAGE partners with two new companies to bring more services to credit unions.

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 1, Issue 3

LSCU

Message from the President The BP oil spill in the Gulf of Mexico and its effect on the Gulf Coast was difficult for us to watch. While the country was captivated by the attempts to cap the well, we saw first hand the effects the spill had on small local businesses. Fishermen were not allowed on the water and hotels experienced large numbers of reservations cancelled in favor of Atlantic destinations. The 100-plus days of the oil spill took a terrible toll on the region. Many continue to struggle with payroll and loan payments. At the LSCU, we have begun working with government officials, including our regulators, to see what credit unions can do to assist the region with its recovery from the spill. On August 29, I met with Ken Feinberg, the Gulf Coast Claims Facility (GCCF) Administrator. I laid out how credit unions could help those affected. Feinberg liked the possibility of what credit unions could do collectively. The next day the LSCU conducted a forum at Pen Air FCU in Pensacola called Credit Union Response to the Gulf Oil Spill. For more than three hours credit unions heard from the NCUA, the Florida Office of Financial Regulations, and the Alabama Credit Union Administration. There was also a time for discussion among Patrick La Pine, President & CEO credit unions on best practices. The LSCU now has an Oil Spill Resource page on League of Southeastern Credit Unions our website under Cooperative Initiatives. Credit unions are once again showing their cooperative nature during this tough time. As an industry, providing financial assistance to our members and small businesses in their time of need is at the core of what we do. Policymakers and media continue to applaud the way credit unions have conducted themselves during the current economic meltdown. Our grassroots efforts on a number of issues this past summer shows the willingness of credit unions in Alabama and Florida to work together for a worthy cause. During this election year, LSCU Governmental Affairs staff is working to identify and support candidates that understand the role credit unions play in helping to move our economy forward. It’s imperative that credit unions remain engaged in the political process and have strong representation at chapter legislative events this fall. Our feature story focuses on the upcoming elections. Learn why we need to invest time and effort to help elect officials who understand the difference between credit unions and other financial institutions. You’ll also read about some creative ways credit unions are encouraging their staff, members, and volunteers to get involved. With so many credit union issues on the table, there has never been a better time to get involved in the political process. We can make a difference with our local and national elections, and we can make a difference for those affected by the oil spill. Let’s work together to live the “credit union difference” during these tough times.

Patrick La Pine President/CEO

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CU PROFILE

CU President Profile Jane Boysen 1.

What are the challenges you see for credit unions right now? One of the biggest challenges I see for credit unions today is the ever changing face of compliance. The regulations are coming at credit unions from all directions, and when you are a small credit union like us, the compliance burden is overwhelming. I also am finding it increasingly difficult to increase revenue without feeing our members to death. With the economy as it is now, loans are harder to come by and the investment market is way down, so how is it possible to put your additional cash to work for you making money? 2. What are the challenges you face as a small asset sized credit union? As a small asset sized credit union, the compliance issue is one of my greatest challenges. Staying current on all the changes with limited staff while not being able to afford new employees to help out is a position I find our credit union in many times. The second greatest challenge is competition with the larger credit unions. Sometimes, our bottom line will not allow us to offer the low rates the larger credit unions can offer because our net margin is smaller than some larger credit unions, therefore; we have to rely on member loyalty and in our present environment member loyalty isn’t what is used to be. My field of membership especially is a very business savvy group and they shop for the best rates on both sides of the equation. This makes it difficult to get those new loans, keep competitive rates, and find enough margin to pay your expenses. Another challenge we face as a SAS credit union is marketing our products. Because our staff is limited and we all wear many hats, a full-time marketing person is not a viable alternative so marketing new products and services does not get the attention that it needs. 3. You have been active with the LSCU on lawmaker visits, why is it important to take time to voice your opinion to local and federal lawmakers? As the old saying goes, “if you aren’t at the table you are on the menu.” The credit union presence at both the local and federal level is essential. Our industry needs to make sure our voice is heard and that we are taken seriously as the better alternative to a bank. The credit union philosophy is about people helping people and serving the under served. If we intend to keep our industry alive we must go to Washington, meet with our elected officials and tell them our story.

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4. How do you see your credit union making a difference in Montgomery? My credit union has a closed field of membership, but I think we can make a Jane Boysen, Manager difference by offering a Alabama Rural Electric FCU full array of products and services and by helping our members achieve their financial goals. I also believe that by staying active in the LSCU governmental affairs group we can make a difference by ensuring our state representatives understand our issues. We certainly have an impact in our community by supporting our local charities and give back our time and resources to the community as a whole. 5. What is your vision for your credit union over the next few years? My vision for the credit union is no different from that of any other manager - to see my credit union grow and prosper. One way for us to do this is to open our field of membership. I fully expect that to happen within the next few years. In the meantime, we need to make sure we are serving our present field of membership to the best of our ability. I believe our credit union has the ability to be one of the biggest and best in the state and I plan to work toward that goal everyday!

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

Alabama Rural Electric FCU Montgomery, Alabama $26,345,959 3,577 $23,296298 $12,928,386

Jane Boysen is the Manager of Alabama Rural Electric Federal Credit Union based in Montgomery, AL. Alabama Rural Electric has $26M in assets and serves a membership of 3,500. The credit union has a closed field of membership to employees and retirees of the Alabama Rural Electric Association of Cooperatives and of its member electric cooperatives. ■

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FEATURE

Off to the Races: It’s Almost With more than 300 credit unions in Alabama and Florida representing six million hard-working Americans, credit unions are an important economic engine in the U.S., helping to grow towns; fund local businesses; finance homes, vehicles, and education. Now more than ever, financial services face more regulation, legislation, and competition than any other industry. If credit unions are to protect and expand service to members and defend existing tax exemptions, it is imperative for the credit union industry to elect officials who understand the difference between credit unions and other financial institutions and will advocate for credit unions to protect them from unnecessary and burdensome laws. During this election season, Alabama and Florida will hold several key elections. The League of Southeastern Credit Unions governmental affairs team led by Will McCarty, Senior VP of Gov. Affairs, focuses on persuading lawmakers to pass legislation beneficial to credit unions and the members they serve. The team monitors and responds to hundreds of bills each year, insuring credit unions in Alabama and Florida have an active voice in legislation that impacts the credit union industry.

Why You Should Care As credit unions face increased challenges to generate revenue, they are burdened with new compliance requirements created by complicated new laws and regulations. The elected officials who represent us in Washington D.C., Tallahassee, and Montgomery are important. Now, more than ever, it is essential for credit union leaders to educate themselves and their staff about candidates tes and their positions on credit union issues and nd become engaged in the election process. “The last two years of legislative activity at the federal level demonstrate clearly that decisions by lawmakers have a huge impact on credit union operations,” said McCarty. “In the past, it may not have been as clear, but recent activity has drawn a distinct line between the actions of Congress and what credit unions must do every day just to serve their members.” The credit union industry relies on those who actively communicate with state and federall

A Magazine of the League of Southeastern Credit Unions

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policy makers. The problem is that many who work in the financial services field are uncomfortable, intimidated, or apathetic when it comes to politics. Mary Wood, President/CEO of Florida West Coast Credit Union and Chair-elect of the LSCU board has come to understand the significance of having relationships with elected officials. She is passionate about political involvement. Wood believes it is important for those who work in the credit union industry to care about elections and participate in the process. “Our livelihood depends on it,” said Wood. “Bankers contribute their time and money to candidates hoping to suppress credit unions. Just relying on our white hat approach is no longer working for credit unions.” There are many ways credit union leadership can encourage participation and provide learning opportunities to enhance the comfort level among employees and volunteers to make the experience less intimidating and more empowering. Political involvement is not just for the senior management team. Everyone can make a difference.

Ways to Engage Others in the Political Process The most effective impact on the political process is relationships. Creatively interacting with elected officials gives them the opportunity to understand the credit union movement. The easiest way to expose staff, members, and volunteers to the political process is invite candidates and elected officials to attend credit union meetings, staff training, or special member membe education days. This is a win-win situation for everybody involved. Politicians situ and a candidates love to gain access to groups of their constituents. Opening up your credit union provides a fantastic opportunity to learn about the political scene from the t perspective of an insider, while allowing credit unions to highlight specific issues of importance. LSCU’s McCarty believes the campaign season is an opportune time to work to establish political relationships. “This “T is the time to ensure that tomorrow’s elected leaders are aware tom off who we are, what issues we face,

st Election Time and the positive impact credit unions have on their members and communities,” said McCarty. During the past few months, several of LSCU’s member credit unions have invited candidates to speak at their credit union. Such meetings have proven to be an excellent opportunity for employees and members to get excited and involved in the political process. Alabama’s Family Savings Credit Union invited Alabama Agriculture Commissioner and Democrat candidate for Governor Ron Sparks to meet with staff, management, and board members in a comfortable and (left to right) Kim Burkett, CEO of TVA CU; Sammy Clements, VP of TVA; Will McCarty, LSCU; Brad Green, CEO of Listerhill; & Mo Brooks, informal setting, recently. During the meeting, FSCU Republican Candidate for the 5th Congressional District President/CEO Monte Hill was able to discuss his credit union’s desire for more flexibility to serve members, especially small businesses, through increased member business lending.” A few weeks later, the FSCU and LSCU hosted Spark’s Republican opponent, Dr. Robert Bentley, to meet and discuss the issues facing credit unions. Bentley recalled his prior support of credit union issues during his time as a state legislator. Bentley believes that credit unions “play a Republican Candidate for Governor Dr. Robert Democratic Candidate for Governor Ron Bentley (left) & Pat Williamson, FSCU Board Chair Sparks (left) & FSCU CEO Monte Hill in July vital role in getting the economy going and offer something to individuals and the community that banks can not offer.” Listerhill Credit Union in Muscle Shoals, Alabama hosted both candidates for the 5th Congressional District in Alabama. Republican candidate Mo Brooks and Democrat Steve Raby came to the credit union to meet with staff and other credit unions from the area. During their visit, they discussed a number of important issues credit unions are facing at the federal level in Washington, and gave their positions. Establishing a relationship with candidates before they are elected to Congress is especially important for credit unions. Brad Green (left), CEO of Listerhill Credit Union & Steve Raby Democrat Candidate for the 5th Congressional District

continued on page 10

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FEATURE

Off to the Races: It’s Almost Election Time (Continued) Chapter meetings provide an excellent opportunity to reinforce relationships with politicians. In Alabama, the Montgomery Chapter of Credit Unions hosted a legislative night that was attended by more than 40 credit union representatives who were able to meet several Alabama legislators and discuss their most concerning credit union issues in person. “We had great participation from our local credit unions and from our legislators,” said Montgomery Chapter President and LSCU Board Member Linda Walker. “Our legislators complimented us on the job we do daily by serving our members. Meetings like this are very important. Credit unions have a message to get out not only to the public, but to those who are making the laws. Friendly communication and proper information is the key!”

Montgomery Chapter President & LSCU Board Member Linda Walker and Rep. Elect Paul Beckman at “Legislative Night”

How to Get Personally Involved Make it a priority to learn the issues and choose to support the candidates most in line with your core belief system. Get involved by volunteering time to make phone calls, stuff envelopes, wave signs, and attend political events. Being physically present to help a candidate builds rapport. Mary Wood and Art Wood, a married couple who each serve as CEOs at different Florida credit unions, have volunteered countless hours in the Tampa area to help credit union friendly candidates get elected. “Art and I attend many political events throughout Art Wood (left) and Mary Wood (right) surround Rep. the year and we make financial contributions as well,” said Rachel Burgin who won her primary in August and has an opponent in the general election. Wood. “We host at least four fundraisers in our home each year. This takes some work but it plays out really well when we have needed to discuss a credit union issue with our local elected officials because we already have a relationship with them. It isn’t effective to simply show up at your state capitol or Washington D.C. and expect to make an impact-- we believe it is all about building relationships back home. When this relational foundation is set, the politicians are very willing to listen.” A recent example of how the Woods’ efforts have paid off is when they attended a dinner event that featured Republican U.S. Senator George Le Mieux. While the event itself had nothing to do with credit unions, the Woods used the opportunity to talk with Le Mieux face-to-face, and during conversation, brought up the member business lending amendment. “Sen. Le Mieux actually said he was in favor of raising the MBL cap during this event,” Wood said. “The next day, I called his office as a follow up on our conversation and urged his support of this important credit union legislation. The staffer who spoke with me remembered us and the conversation about MBL. Even though this was not an official credit union event, we had taken advantage of the moment to talk about credit unions.” When the LSCU governmental affairs team later met (left to right) Art Wood, President/CEO of Railroad & Industrial FCU Mary Wood, President/CEO of Florida West Coast CU with Le Mieux in September, he confirmed his support of raising the and Florida Sen. George LeMieux) cap, saying he could see no reason not to. Rep. Gus Bilirakis, a pro-credit union congressman is a friend of the Woods whose understanding of credit union issues has deepened through his relationship with the couple. When asked for his thoughts about the Woods and credit unions in general, Bilirakis said, “I am thankful for the support and my relationship with the credit unions in my district.

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This relationship has increased my understanding of how credit unions operate differently than other financial institutions. I am fortunate to have this rapport and look forward to working together in the future.” An often unanticipated but welcome bonus of getting to know elected officials is growth in membership. If they are not a member of a credit union, Wood educates and encourages them to join to experience for themselves the difference between and credit union and a bank.

Encourage Staff, Members, & Volunteers to Vote Consider allowing employees extra time off on voting days to make sure they can get to the polls. Pick up voter registration cards and polling location brochures from the local Supervisor of Elections office and place this information strategically in branch office lobbies so that employees and members are reminded to vote. Post voting day reminders on your credit union’s website and in newsletters to reinforce the message.

Your Involvement Is Needed to Make a Difference Preserving the strength and profitability of the credit union industry rests with every Alabama and Florida credit union employee. During this election season, participate in the political process. Commit to developing a relationship with your legislators and encourage your colleagues to get involved. Whether it is supporting the LSCU Political Action Committees, serving as a political contact at an individual credit union, engaging in grassroots legislative activities, or becoming involved in the campaign of a credit union friend, each member has a part to play, and the LSCU is ready and willing to help our members play it well. You are vital to the success of elections and any legislative battle the LSCU faces. With your help, we can strengthen our industry and credit union movement. ■

Races to Watch Alabama’s race for governor has been politically fascinating to watch as retired physician Dr. Robert Bentley (R) has risen to face Agriculture Commissioner Ron Sparks (D) as each seeks to be the next governor. This race is of particular importance to credit unions because the governor appoints the Administrator of the Alabama Credit Union Administration (ACUA), the chief regulator of state-chartered credit unions. In addition, the governor appoints the ACUA Advisory Board, which maintains oversight of the agency. On a broader scale, the governor’s office sets much of the legislative agenda for Alabama, including budget priorities, and serves as the chief spokesperson for the state around the country and even around the world. There are a number of interesting races for the Alabama House of Representatives and the Senate. For the first time in recent memory, the Republican Party may take control of one or both chambers of the Legislature. Should this occur, leadership positions will change drastically - such as Speaker of the House and committee chairmanships. In Congress, the LSCU is following the open seat in northern Alabama’s 5th Congressional District where Mo Brooks defeated incumbent Rep. Parker Griffith for the Republican nomination. Former Howell Heflin Chief of Staff, Steve Raby is the Democrat nominee. This has traditionally been a conservative democratic seat, formerly held by Bud Cramer. The LSCU is getting to know the candidates on both sides and working to educate them about credit union issues. In Alabama’s 2nd Congressional District (Montgomery and Wiregrass areas), the LSCU is monitoring a very competitive race between Democratic incumbent Rep. Bobby Bright and Republican challenger Martha Roby. Bright is the first Democrat to win this seat in decades and has voted as a conservative Democrat during his time in Congress, often against the Democratic leadership. This particular race is shaping up to be one of the most competitive in the country.

The tightly contested Florida governor’s race between etween former hospital executive xecutive and multi-millionaire Rick Scott (R) and former bank ank executive and current CFO Alex Sink (D), endorsed by LSCU CUPAC Trustees, is just one of many exciting races to watch. Florida has once again become a key battleground state in the GOP’s fight to control the U.S. House of Representatives. There are six closely contested seats in Florida where the outcome may contribute to who controls the House next year. Additionally, Florida is one of the 36 states electing a U.S. senator in 2010. The three-way senate race between Gov. Charlie Crist, a former Republican who is ending his term as governor and running as a no party affiliation candidate against Democrat Rep. Kendrick Meek and Republican Marco Rubio proves to be particularly interesting as the nation watches to see if an independent candidate with support from across ideological borders can win. The LSCU is particularly involved in each of the three Florida Cabinet level races because they, as a body, select, hire, and terminate the Commissioner of the Office of Financial Regulation, Florida’s chartered credit union regulator. Florida’s cabinet includes Attorney General, CFO (LSCU CUPAC Trustees have publicly endorsed Sen. Jeff Atwater), and Commissioner of Agriculture and Consumer Services (LSCU CUPAC Trustees have publicly endorsed Adam Putnam.) As a non-partisan advocacy organization that bases support or lack thereof on how candidates and elected officials support credit union issues, the LSCU stays out of inter-party politics, and works diligently to make a bi-partisan effort to build relationships with key decision makers in both parties. ■ SIGNAL: Vol. 1, Issue 3

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2010 Endorsements* The LSCU Governmental Affairs Committee and Political Action Committee Trustees evaluate political candidates and collectively make endorsements and solidify contributions to be made to candidates. The LSCU staff and PAC Trustees continue to hold meetings with candidates for office, to educate them about credit union issues, to assess their position, and to determine support throughout the campaign season. The endorsement list is updated regularly. Visit www.lscu.coop for the most up-to-date list. All endorsements are based on the following criteria: Support for credit union philosophy and legislative issues as demonstrated through completion of candidate questionnaire; voting record on credit union issues; accessibility to credit unions; attendance at credit union events; membership in key committees and/or party leadership; and the historical relationship with the LSCU and credit unions.

Alabama House of Representatives Endorsements Rep. Mike Curtis (D) 2nd District Rep. Marcel Black (D) 3rd District Rep. Mickey Hammon (R ) 4th District Rep. Johnny Mack Morrow (D) 18th District Rep. Randy Hinshaw (D) 21st District Rep. Butch Taylor (D) 22nd District Rep. Todd Greeson (R) 24th District Rep. Mac McCutheon (R) 25th District Rep. Craig Ford (D) 28th District Rep. Jack Page (D) 29th District Rep. Elwyn Thomas (R) 34th District Rep. Steve Hurst (D) 35th District Rep. Richard Larid (D) 37th District Rep. Jimmy Martin (D) 42nd District Rep. Mary Sue McClurkin (R) 43rd District Rep. Owen Drake (R) 45th District Rep. Demetrius Newton (D) 53rd District Rep. Patricia Todd (D) 54th District Rep. Alan Harper (D) 61st District Rep. Elaine Beech (D) 65th District Rep. David Grimes (R) 73rd District Rep. Greg Wren (R) 75th District Rep. Thad McClammy (D) 76th District Rep. Lesley Vance (D) 80th District Rep. Paul Beckman (R) 88th District Rep. Terry Spicer (D) 91st District Rep. Steve Clouse (R) 93rd District Rep. James Buskey (D) 99th District

* As of September 20, 2010

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Alabama Senate Endorsements Rep. Tammy Irons (D) 1st District Sen. Tom Butler (D) 2nd District Sen. Roger Bedford (D) 6th District Sen. Paul Sanford (R) 7th District Sen. Larry Means (D) 10th District Rep. Cam Ward (R) 14th District Sen. Jabo Waggoner (R) 16th District Sen. Linda Coleman (D) 20th District Sen. Hank Sanders (D) 23rd District Sen. Trip Pittman (R) 32nd District Sen. Rusty Glover (R) 34th District Florida Cabinet Officers Endorsements CFO Alex Sink (D) Governor Sen. Jeff Atwater (R) Chief Financial Officer Rep. Adam Putnam (R) Commissioner of Agriculture & Consumer Services Florida House of Representatives Endorsements Rep. Marti Coley (R) 7th District Rep. Janet Adkins (R) 12th District Rep. Charles McBurney (R) 16th District Rep. Ronald “Doc” Renuart (R) 19th District Dennis Baxley (R) 24th District Rep. Ritch Workman (R) House District 30 Rep. John Tobia (R) House District 31 Rep. Steve Crisafulli (R) House District 32 Rep. Dean Cannon (R) 35th District Rep. Ed Hooper (R) 50th District Rep. Bill Heller (D) 52nd District Rep. Rick Kriseman (D) 52nd House District Rep. Jim Frishe (R) 54th District Rep. Darryl Rouson (D) 55th District Rep. Rachel Burgin (R) 56th District Rep. Will Weatherford (R) 61st District Rep. John Wood (R) 65th District Rep. Doug Holder (R) 79th District Rep. Mackenson “Mack” Bernard (D) 84th District Rep. Lori Berman (D) 86th District Rep. Mark Pafford (D) 88th District Rep. Ari Porth (D) 96th District Rep. Franklin Sands (D) 98th District Rep. Joe Gibbons (D) 105th District Rep. Richard Steinberg (D) 106th District Rep. Erik Fresen (R) 111th District Jeanette Nunez (R) 112th District Ana Rivas Logan (R) 114th District Rep. Dwight Bullard (D) 118th District Florida Senate Endorsements Rep. Greg Evers (R) 2nd District Bill Montford (D) 6th District Sen. John Thrasher (R) 8th District Sen. Steve Oelrich (R) 14th District

ADVOCACY

Advocacy PAC Fundraising Guide The League of Southeastern Credit Union’s Political Action Committees (LSCU FedPAC, ACULAC, Florida CUPAC) are important elements to the advocacy of credit unions throughout Alabama and Florida. The funds raised by the LSCU’s members and chapters are used to support pro credit union candidates and advocate pro credit union legislation in the federal and state governments. The fundraising efforts range from annual golf tournaments to bake sales. Every hardearned dollar is a show of commitment to the broader credit union movement. In the current economic environment and increased onslaught of regulations, raising PAC funds has become more necessary and more challenging than ever. The LSCU has created a fundraising guide to help credit unions develop a turn-key fundraising program that fits them. The guide provides all the necessary tools to begin or increase successful fundraising efforts within a credit union or chapter. It includes reporting requirements for federal and state election laws; goals and recognition programs promoted by the LSCU; and several fundraising activities in which credit unions and chapters can choose from to participate. A few of the programs available are the Donor Recognition Pin Program, the Payroll Deduction program, the Deduct-ABuck Program, and the Consignment Ticket Program. • The Donor Recognition Pin Program encourages individuals to give a personal contribution to LSCU PACs. In recognition of their personal contribution to the PAC, a contributor will receive a LSCU Donor Recognition Pin. Wearing this lapel pin outwardly displays an individual’s personal commitment to the credit union movement. It

Political Action Committees

is also a way to show support for the LSCU’s and their credit union’s advocacy efforts at any LSCU chapter or credit union event. • The Payroll Deduction Program is one of the simplest way to support the LSCUs PAC efforts. It offers a one-time enrollment for donors and allows individuals to have a donation deducted directly from their paycheck monthly. Individuals may chose their own donation amount and discontinue participation in the program at any time. • The LSCU Deduct-A-Buck Program has proven to be a successful way to get a credit union’s membership involved in advocacy and fundraising. Credit union members are asked, “Is your credit union worth a buck?” Educating the membership and involving them in the credit union movement’s advocacy and fundraising efforts will be the next big step for the industry. • Consignment Ticket Program is designed for Alabama credit unions to raise state PAC funds and have their credit union members support the ACULAC. With this program, Alabama credit union members purchase theme park tickets from their credit unions, either in person or online. It is also an effective way to get members into the credit union branch. This is a way for credit union members and their families to have fun while helping raise PAC dollars. The PAC Fundraising Guide can be found at www.lscu.coop. After logging in, click Governmental Affairs, Legislative Advocacy, and then Political Action Committee. The guide is in a PDF format and can be downloaded, saved, and printed. Just as we think of the credit union philosophy as being “People Helping People,” think of supporting LSCU PACs as “Credit Unions Helping Credit Unions.” No matter how a credit union chooses to support the PACs, the funds raised are used for the greatest purpose of forwarding the credit union movement in Alabama and Florida. ■

Governmental Affairs Survey Results Are In The results are in from the first survey of governmental affairs priorities for the LSCU. A total of 48 credit unions, equally divided from Alabama and Florida, responded to the six question survey. The responses for federal priorities, as one would expect, were similar for both states. Relief from regulatory burdens and maintaining the credit union tax exemption were the most often cited responses. Also mentioned were ensuring Interchange regulations are developed in a manner least harmful to credit unions and an increase in the MBL cap. On the state side, the responses were similar but not exactly concurrent. They included protecting non-interest revenue producing products, public deposits, nonjudicial foreclosures, reducing the burdens to homeownership, and homeowners insurance.

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ADVOCACY

LSCU Legislator Profile:

Mike Hill

How did you decide to get into politics and run for the Alabama Legislature? When I was 12-years-old I was invited to go with the local state legislature to be a Page in the House of Representatives. I never forgot how exciting the process was to a young boy. All of a sudden, nothing would satisfy me unless I could run for the Alabama House of Representatives. By some miracle I was elected and it has been a labor of love since 1986 for me to be able to serve the people in Shelby County and the State of Alabama. Only those that are patient and understand that our Constitution was designed to make it hard to change laws without a lot of thought and debate are the ones that survive this political process and stick with it. What big issues do you see coming before the House Banking Committee / Legislature during the next four years? The next four years will be a tough time with the changes coming down from our federal government. I expect to hear from the state banking department and other financial groups like the League of Southeastern Credit Unions, as we look at the changes to Alabama laws that will need to be made to comply with the sweeping changes the federal government is making to the financial industry. Right now everyone is evaluating, but you can be assured, by the time we go into session on March 1, 2011, there will be a lot of discussion and debate.

What role do you see credit unions playing in the financial services industry? Credit unions are an integral part of our financial industry, and they need to stay healthy and sound to help this country get back on its feet and back to an expanding economy. There are a lot of people who would never enter the world of banking if they did not have their local credit union to teach them the importance of money management and credit discretion. Credit unions fill a void in this industry that needs to be filled. They also play an important role in price setting in the financial industry. They make the industry stay competitive with the services it provides to consumers and they play a major role in a safe and sound economy. How does grassroots activism help in the legislative process? The only way to make sure credit unions remain a major player in the financial industry today is to stay politically active. Be assured that the rest of the industry is very organized and as you all know, some of them would love to see credit unions disappear. If you want to remain strong, get involved with the candidates that know and understand credit unions. Work in their campaigns and give to your Political Action Committee. Be a part of determining what candidates remain in office and which ones are not friendly to credit unions and do not need to return to office. Keep good people representing your industry in Montgomery; that may be one of your strongest political assets in Alabama. Credit unions have great representation and presence in Montgomery. It is only through strong political activism that credit unions will remain a vibrant part of the overall economic structure. â&#x2013;

Mike Hill is a Republican representing the 41st Legislative District (Shelby County) in Alabama. He is the Vice Chair and Ranking Minority Member of the House Banking and Insurance Committee and a member of the House Government Operations Committee. As the Vice Chairman of the House Banking Committee, he handles a number of bills important to credit unions and other financial services.

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 1, Issue 3

LSCU Legislator Profile:

George LeMieux When and why did you become interested in politics? From a young age, I have been interested in public service. I have been a member of several Republican groups and during college, I had the opportunity to work as an intern with Congressman E. Clay Shaw, Jr. (R-FL) and U.S. Senator Connie Mack III (R-FL). You became known as “The Maestro” for “orchestrating” Gov. Crist’s campaign. Were you involved in any other campaigns? In 1998, I ran for the state House, with aspirations to work on policy to provide better health care for Floridians and help create smaller class sizes for students. I went door-to-door, visiting more than 10,000 houses, in a district that was heavily democrat. While I lost, the experience of running as a candidate was invaluable and I have used that knowledge throughout my career. In 2000, I was elected Chairman of the Broward County Republican Party. As Chairman, I was involved with local, state, and national campaigns. I also ran Governor Jeb Bush’s reelection campaign in Broward in 2002. What is a typical day like for you as a senator? Each and every day is as different as it is rewarding. Given the brisk pace of activity in Washington, schedules become suggestions and every meeting offers something new to the debates of the day. What is consistent is the stream of issues important to Florida. Whether in committee or on the Senate floor, Florida needs a strong voice and active representation on a great number of issues. Unlike the House of Representatives, Florida

has only two senators, just like California, Texas, North Dakota or Rhode Island. So no matter the size of a state, we only have two votes. That means we have to work extra hard to make certain Florida’s voice is heard. What do you perceive the role of credit unions to be in the financial services arena? Credit unions play an important role in the financial services arena. Not only do they enable consumer and small business lending, they also help small businesses create jobs. During these difficult economic times, credit unions provide excellent credit rates to members, especially where credit might otherwise be inaccessible. What important issues related to credit unions and the financial services industry do you see coming down the pike before Congress adjourns? The Small Business Lending Act pending before the Senate is a good measure, cutting taxes for small businesses by $12 billion dollars. This bill has the potential to help Florida’s economy and return many people to work. Included in the measure is an initiative providing grants to states like Florida that will support small business lending programs and increase small business’ access to capital. Do you belong to a credit union? If so, which one? Not at the moment, but I have worked with one in the past to secure a car loan. ■

George LeMieux is a native Floridian, who grew up in Broward County, Florida. In 2000, George was elected Chairman of the Broward County Republican Party. In 2003, he was asked by then Attorney General Charlie Crist to serve as Florida’s Deputy Attorney General and Chief of Staff to the Attorney General’s Office. LeMieux led the Executive Office of the Governor as the Governor’s Chief of Staff in 2007. On August 28, 2009, Florida Governor Charlie Crist announced LeMieux’s appointment to the U.S. Senate to fill out the remainder of Senator Mel Martinez’s unexpired term. LeMieux was sworn in to the U.S. Senate on September 10, 2009.

SIGNAL: Vol. 1, Issue 3

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COMPLIANCE

Compliance NCUA’s Aggressive Stance on the Examination Process The National Credit Union Administration (NCUA) recently announced that it will use administrative action quicker than in the past. What does this mean for credit unions during the next examination process? A contingent from the LSCU, including President/CEO Patrick La Pine and Sr. VP, Governmental Affairs Will McCarty, met with the NCUA’s Regional Director Herb Yolles and members of his staff in July. Among topics discussed was the examination process. The NCUA would like to see credit unions doing more Troubled Debt Restructuring (TDR) which, Yolles explained, is supported by the NCUA as long as it is a “good business decision.” When asked what credit unions could expect during exams, Yolles stated that, while credit unions are all under profitability stresses, the NCUA is strengthening its approach to exams. The NCUA’s primary concern is to protect depositors and the National Credit Union Share Insurance Fund. The NCUA has a number of “hot buttons” that examiners will look for during the examination process: • Repeat items in Documents of Resolution (DORs) • Adequate funding of the Allowance for Loan Loss account given the fallout from the Great Recession • Troubled Debt Restructuring (TDR) The NCUA’s emphasis on faster administrative action is nationwide and not specific to any state or region. There is a broad range of administrative tools at the NCUA’s disposal which include: Documents of Resolution (DOR); Letter of Understanding and Agreement (LUA); and Cease & Desist Order (C&D). DORs are expected to become much more common place. About three quarters of credit unions have or should expect to receive a DOR. It is normally included in each report with CAMEL components rated three or higher. In today’s regulatory environment, DORs should not be ignored. The NCUA has adopted a much tougher approach when dealing with repeat problems that appear in a DOR. The credit union must take steps to address the initial problem and progress toward resolving it before the next exam. Failure to do so may result in a Letter of Understanding and Agreement (LUA). A LUA is a contract between the NCUA and the credit union that describes steps the credit union agrees to take to remedy specific problems within a set time. LUAs are reserved for significant problems, and the items covered are non-negotiable between the credit union and the NCUA. If the credit union makes a good faith effort to address the issues and is making progress, there will likely be no further action by the NCUA. In this case, such efforts may result in the LUA being modified 16

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 1, Issue 3

during its term (extension of time, alteration of actions, etc.). If the NCUA does not see this type of action, it may take administrative actions such as a preliminary warning letter or other actions. Finally, a Cease and Desist Order (C&D) is an administrative action taken if the NCUA believes a credit union is or has engaged in an unsafe or unsound practice, or when the credit union has or is about to violate a law, regulation, or a condition imposed in writing. Credit unions that receive a C&D have a right to a formal hearing before an administrative law judge. Violating the terms a C&D can trigger additional administrative actions, such as civil money penalties, removal of credit union officials, and conservatorship to name a few. In many instances, the NCUA is flexible and can work with the officials to develop timelines and action plans that will work for both parties. Some timelines for resolution, however, may allow less flexibility on the examiner’s part such as Prompt Corrective Action. The examiner should talk openly with credit union officials and staff about why and when deficiencies must be addressed. From the credit union perspective, the NCUA’s new stance has created more disagreements between credit unions and examiners. The NCUA’s more aggressive stance very likely will lead to inconsistent examinations. No matter how much training is received, employees will react differently to the same situation. Some employees are more seasoned and may be better prepared than others. The decision regarding how to respond to an NCUA examination is the responsibility of each individual credit union and depends on the particular circumstances. These suggestions are intended to be preventive – to assist credit unions in avoiding a serious dispute when alternative means of resolution are available. More resources may be found under the Governmental Affairs tab of the LSCU website. Click on www.lscu.coop, Governmental Affairs, and Regulatory Advocacy. The Regulatory Links page includes a new CUNA website covering exam issues. ■

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INITIATIVES

Cooperative Initiatives LSCU Membership Value Defined by LSCU Members On January 4, 2010, the Alabama Credit Union League and the Florida Credit Union League became one, debuting as the League of Southeastern Credit Unions. The consolidation of the two leagues was not just about a new organization but about a new way of doing business with new ways to serve and engage members. According to LSCU CEO and President Patrick La Pine, “every program we propose needs to answer the questions: ‘How does this program positively impact our members? Does it show the value that their league dues dollars bring to the table?’” Eager to demonstrate how the LSCU would provide a defined value of membership and show the importance of each credit union’s membership, LSCU staff set out to understand credit unions’ challenges and goals so they could create the best membership value. Credit unions recognized the value right away. If we are going to implement a new product or service, need training, auditing, or most anything else, we always begin by calling the league. We know that we will get quality information, products, and services which will benefit our members, volunteers, and staff. Mark Johnson, CEO, NAHEOLA CU Representing 309 credit unions with $55 billion in assets and 6.5 million members who are also voters, the LSCU is able to command the attention of elected officials and regulators which allows credit unions in Alabama and Florida to tell their story with a stronger, larger collective voice. In addition to the wide array of training and networking opportunities, league affiliation also gives our credit union a powerful legislative voice at both the state and national levels to address issues important to our members. Shane Nobbley, CEO, Family Security CU LSCU’s Cooperative Initiatives department was created to maintain strong member relations with credit unions and chapters. Having league representatives “out in the field” ensures credit unions are aware of available LSCU programs, products, and services and that the LSCU is aware of the credit unions’ needs. The newly formed league has done a great job getting reps out to talk to us about what we truly need. Being President of Northeast Florida Chapter, I look forward to contributing to the success of this new league and will start by sharing all the new products and service information I have learned about. Dan Jones, President/CEO, Metro North FCU 18

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 1, Issue 3

The Small Asset Size program has helped smaller credit unions create a better environment by ensuring their unique needs are met through tailored products and services to help fine-tune operations and facilitate growth. One new feature of the program is the SAS Credit Union Initiative Account. The LSCU has created an account in each credit union’s name in the amount of $400 toward the purchase of any LSCU or LEVERAGE product or service. I am extremely happy with the merger of both leagues. We are a small asset size credit union and I feel this league truly cares about the small credit unions, our needs, and our survival. LSCU has led me to many tools, support systems, and services that I did not know existed and are free or affordable. I now feel there is value to our credit union to be affiliated with LSCU. Debbie Woodson, CEO, Financial Educators FCU Communication is key with this year’s many regulatory and legislative issues. Audio podcasts, videos, webinars, weekly electronic newsletter (eSignal), a quarterly magazine (Signal), and a multimedia website provide members with important information and access to valuable resources to assist in credit union advocacy, compliance, operations, and more. I have been very impressed with the new communication channels implemented by LSCU. I find the information very relevant and timely! Lary McCants, President/CEO, IBM Southeast EFCU

As the LSCU approaches its one year anniversary, La Pine and his staff continue to develop and enhance programs, products, and services that provide, not only the features and benefits members need and want but, an added value to membership. If you are interested in learning more about how the LSCU may assist you as a member, contact a Cooperative Initiatives team member. ■

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EDUCATION

League Education LSCU’s Education & Training: Developed with Adult Education Principles in Mind With ever changing regulations and increasing competition, there is a need now more than ever for credit unions to educate and train their employees and volunteers. The League of Southeastern Credit Unions (LSCU) provides a multitude of educational resources for our affiliated credit unions in an effort to keep our credit unions compliant, connected, and informed. All of the education programs are designed and developed with adult education in mind, both in principle and in style. Adult education, also known as “androgogy,” can be defined as the set of specific skills and associated knowledge geared towards the educational development of adults. It emphasizes the fact that adults are selfdirected and make their own decisions. When the LSCU designs curriculum, chooses topics, speakers, content, etc. for our educational programming, we consider the principles of adult education: • Adults will only learn what they want to. They will not learn under pressure and they must be motivated to acquire new knowledge. • Adults will only learn when they feel they need to. Any attained new knowledge must be immediately applicable to work and/or everyday life. • Adults learn by doing and prefer a hands-on approach. They like to take an active role in the learning process. • Adults prefer an informal learning environment. • Experience will interfere with adult education; based on values, opinions, and beliefs. Adults need to be able to validate the information being presented. • Adults need feedback. • Adults require a variety of teaching methods. In addition to the principles of adult education, we also recognize that there are three basic learning styles for adults including visual, verbal, and kinesthetic. These styles influence an adult understands, retains, and recalls new information. Individuals predominantly one type of learner, but usually can adapt to other styles. Visual learners can quickly understand and retain information that they see. They learn best when the course material, webinar, or virtual classroom environment includes a flow chart, diagram, picture,

powerpoint presentation, demonstration, concept map, graph, or video. LSCU education events that would appeal to visual learners include the LSCU Annual Convention, Conferences, Workshops, and Distance Learning. Verbal learners are also referred to as auditory learners and prefer a course that is presented in the form of a lecture or class discussion. Verbal learners have the tendency to read out loud, repeat information, and ask a variety of questions for clarification. They learn best through face-to-face events, on-line forums, verbal instructions, webinar lecture, and email. LSCU education events that would appeal to verbal learners include the LSCU Annual Convention, Conferences, Workshops, Distance Learning, and Leadership Councils. Kinesthetic learners prefer to learn through experience and hands-on activities. They are tactile individuals who prefer to have something in their hands when learning new material or sitting for a long period of time. Kinesthetic learners enjoy variety in the learning process and learn best when information is facilitated using a variety of methods including short lectures, group discussion, videos, and assignments. LSCU education events that would appeal to kinesthetic learners include the LSCU Annual Convention, Workshops, and Distance Learning. Educating and training credit union employees and volunteers are crucial for the success of today’s credit unions. Recognizing the principles of adult education and learning styles, the LSCU strives to provide high quality education and training solutions in a variety of learning formats. Visit www.lscu.coop for more information about LSCU Education and a calendar of upcoming events. For questions or comments, contact Joy Breedlove, LSCU VP, Education at joy.breedlove@lscu.coop or 866.231.0545 ext. 2162. ■

SIGNAL: Vol. 1, Issue 3

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EDUCATION

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

Envision an exclusive conference where the main focus is you. With an intimate setting and a casual atmosphere, this conference provides you with exceptional education sessions and outstanding networking events. It’s a conference that includes a select group of exhibitors for you to peruse products and services, expert session speakers to provide you with top-level industry knowledge, keynote speakers to engage, inspire, and entertain you, and the uniqueness of a conference designed just for you. Join the LSCU as we kick off our shoes and get down to business, focusing on you. The Grand Hotel Marriott Resort, Golf, & Spa, in Point Clear, Alabama, provides the perfect setting for a casual learning environment. The conference is a great opportunity for you to sit back, relax, and learn - from the education sessions and from your peers. For more information including session topics and registration, visit www.lscu.coop.

Opening General Session

Afternoon General Session

Closing General Session

Patrick La Pine, LSCU President & CEO, will present the results of LSCU’s member survey and give an overview of the LSCU’s priorities and initiatives for 2011, as well as details of the cooperative image campaign to be launched in both states in 2011. Herb Yolles, Region III Director for NCUA, will provide an update on the state of the credit union industry, specifically on Region III, corporate stabilization assessments, as well as regulatory/compliance changes that are on the horizon and the focus of examiners in 2011.

Kenneth W. Gronbach, President, KGC Direct, LLC, is a nationally recognized expert in the field of demography and generational marketing. He makes the science of shifting demography come alive with real life examples that make it relevant to today’s culture, business climate, and economy. Author of The Age Curve, How to Profit from the Coming Demographic Storm, he will take you through a fascinating, common sense understanding of shifting demography and the related opportunities and challenges.

Richard Hadden, is a Certified Speaking Professional with a focus on creating a great place to work. He is co-author of Contented Cows Give Better Milk: The Plain Truth About Employee Relations and Your Bottom Line and Contented Cows MOOve Faster: How Good Leaders Get People to Put More OOMPH! Into Their Work. He will speak on “Rebooting Leadership” and will tackle the tough issues of leading in the new world and provide leaders with practical advice on connecting with workers at all levels to produce value under a rapidly changing set of rules and expectations.

Additional Conference Events •

•

Exhibit Hall The Exhibit Hall will feature more than 40 exhibitors that offer products and services to assist in optimizing your credit union’s operations. Enjoy a little entertainment, drinks from the bar (two free drink tickets), and hors d’ oeuvres during the Exhibit Hall Grand Opening. Thursday night head to the Exhibit Hall for a Fiesta! You won’t want to miss this event featuring a Mariachi duet, games and prizes, a bar, and margaritas. We’ll even provide the sombreros and the shakers!

SIGNAL: Vol. 1, Issue 3

Governmental Affairs Luncheon: CUNA SVP of Political Affairs, Richard Gose, will share what credit unions can and should do to create the most positive political and legislative environment. LEVERAGE Golf Tournament: SCRAMBLE format with a shotgun start at the property’s Lakewood Golf Club. Registration begins at 7:45 a.m. with a continental breakfast. Lunch will conclude the tournament with an awards ceremony. Sunrise Sailboat Tour: 1.5 hour cruise complete with a continental breakfast on a classic 72’ wooden schooner sailing on Mobile Bay, Alabama, with up to 49 passengers. Historic Fairhope Tour & Luncheon: A beautiful Deep South setting on Mobile Bay, the area became a popular summer resort with the construction of the Grand Hotel in 1847. Tour includes tour of a private antebellum home, lunch, a tour of the Village of Fairhope, and more.

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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 Making Social Media Work for Your Credit Union Social media. These two words elicit excitement and trepidation among credit unions. Many credit unions in Alabama and Florida are currently using social media, many are exploring social media options, and a few are still determining if it is an avenue to pursue. Social media can be a wonderful tool to help credit unions interact with members; but there is a fine line between facilitating quality interactions and turning off the very members credit unions are trying to reach. Facebook and Twitter are current social media tools. However, each reaches different audiences and should be used in different ways. One aspect they have in common is both tools are best served as a way to engage their audience-not make cold sales. Users of Facebook and Twitter see this as a violation of trust. The best way to showcase a product on social media is to first form a relationship and then include the product in the conversation. Flat sales pitches do not work. Creating a business page on Facebook is effective for businesses as it helps companies begin conversations with members, while also informing them of the services available. This allows the business to shine through conversation, photos, videos and giveaways. Facebook can be a perfect tie-in for a credit union that has a large marketing campaign in place or is planning one. When the marketing plan is put in place, credit unions need to understand the parameters of incorporating Facebook into the plan.

“We drive usage and interaction through contests, discussion topics, video, and photos. We are very proud of what Pen Air has accomplished,” says Patty Veal, vice president of marketing at Pen Air. “But this has taken time to develop and a person familiar with social media to maintain the elements to keep things fresh.” Veal’s advice to a credit union just getting started with Facebook is that “you don’t want to just casually move in this direction – you need to make the commitment to do it and do it right for social media to be effective.” Businesses that use Twitter see it more as an extension of a conversation, much like texting, on which the Twitter concept is based. In 140 characters or less, businesses can interact with followers as well as incorporate pictures and video links. The fine line here is that a credit union should monitor its followers to make sure enough members are following and the conversation is engaging. Just putting out a “tweet” about low auto loan rates is not effective and can actually turn off followers. Twitter is one big conversation that credit unions can engage in by helping followers understand the complexities of their finances, point them to tools for budgeting, and make them aware of products. The key to making social media effective for your credit union is many of the old marketing adages: know your audience, engage your audience, and call them to action.

Follow the LSCU through Social Media LSCU Twitter | www.twitter.com/LeagueofSECUs Patrick La Pine, LSCU CEO | www.twitter.com/patricklapine LSCU Financial Literacy | http://www.lscu.coop/Cooperative-Initiatives/Financial-Education-Coordination Alabama Teachers Credit Union, based in Gadsden, AL, began using social media 18 months ago. The credit union’s Facebook page has more than 400 people that “like” the page. “The page needs to be up-to-date with regular postings, but not overdone. Nobody wants to get three or four items a day from their financial institution,” says Emily Bogle, Alabama Teachers Credit Union. “I try to monitor our Facebook page twice a day, once in the morning and then later in the afternoon for comments, questions, or feedback.” Pen Air Federal Credit Union, based in Pensacola, FL, uses a variety of social media tools and makes its more than 1,200 Facebook users aware of the credit union’s services.

“Florida Commerce uses social media as a way to keep a dialogue going in our community regarding financial fitness,” says Samantha Strickland, vice president of growth and brand management at Florida Commerce Credit Union in Tallahassee. “Through Facebook, Twitter, and weLiveFITchallenge.com, we interact with thousands of fans, friends, and followers.” Credit unions that would like help with starting a social media campaign, contact LSCU VP, Communication Mike Bridges at mike.bridges@lscu.coop or 866.231.0545. ■

SIGNAL: Vol. 1, Issue 3

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NEWS

League News The 1st LSCU AC&E: A Path of Success The 1st LSCU AC&E had more than 1,100 attendees representing more than 100 credit unions. The exhibit hall was sold out with 150 vendor booths and six hours of exhibit hall time. The Annual Business Meeting featured remarks by LSCU Board Chairman Rich Helber, LSCU President/CEO Patrick La Pine, CUNA CEO Dan Mica, CUNA Mutual Group CEO Jeff Post, WOCCU CEO Pete Crear, and NCUF Chairman Allan McMorris. The closing General Session was highlighted by keynote speakers Tucker Carlson and Paul Begala. NASCUS President Mary Martha Fortney also spoke and the LSCU Awards were handed out with longtime Guardian Credit Union CEO Landel Casey of Alabama being honored with the Distinguished Service Award and VyStar CU CEO Terry West of Florida being named Professional of the Year. First Florida Credit Union and Alabama’s Family Security CU were honored as co-Credit Unions of the Year. ■

LSCU staff Julianne Talley and Joy Breedlove (right) pose with Paul Begall (left) and Tucker Carlson before they speak at the General Session.

Former CUNA CEO Dan Mica speaks to attendees during Annual Business Meeting.

LSCU President Patrick La Pine (left) and Board Chair Rich Helber (right) pose with Distinguished Service Award recipient Landel Casey.

Ad Agency Chosen for 2011 Image Campaign The LSCU Statewide Image Campaign Task Force chose Scout Branding Company out of Birmingham, AL to help lead the creative direction of the 2011 campaign. Scout was chosen over two other agencies that made formal presentations in Birmingham in August. The 2011 campaign will target Generation X through a variety of avenues including television, online, digital, and social media. Over the next few months, credit unions can expect to hear more about the campaign at chapter meetings and town hall-style meetings. If your credit union is interested in hosting a credit union event where the 2011 Image Campaign can be discussed or if you would like more information on the campaign, contact LSCU VP, Communications Mike Bridges at 866.231.0545, ext. 1022. ■

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 1, Issue 3

LEVERAGE Financial Strategies for 2011 As the credit union industry continues to adjust to the volatile financial marketplace, finding solutions that streamline processes and reduce expenditures is more critical than ever before. As you begin planning for your 2011 budget, consider the following opportunities to assist with the development of your plan:

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

Additional Revenue Generation • Credit unions are improving their bottom line by adding member value-added services. Sprint offers a win/win program for credit unions and their members. With no time intensive training required, this easy-to-implement program allows you to sit back while the additional revenue sprints through the door. • Enhance the services provided to your members. The Gift Card Program has low implementation costs and creates additional income earning opportunities. • Generate non-interest income and help protect your members through a variety of member protection insurances services, including: Credit Insurance, Debt Protection, Guaranteed Asset Protection, and Mechanical Repair Coverage. Group Purchasing for Increased Savings • Credit unions are saving thousands of dollars on commodity purchases by collectively participating in group ePurchasing events. Purchase specifications are unique to each credit union with flexible decision making on the final purchase. • Office supplies, toner, paper, furniture, break room products, and other everyday business equipment can have a significant impact on a credit union’s bottom line. Save up to 70% off retail pricing through volume discounts on our program with Office Depot. Streamlined Processes for Increased Productivity • Liquidating repossessed and off-lease vehicles in a quick and efficient manner means more money recovered. Our Remarketing Program partners are national companies that not only secure a maximum average return, but also automate and streamline the liquidation process • Enhance services to your members by expanding your ATM service delivery channels to more than 28,000 surcharge-free ATMs in all 50 states and 10 countries through the CO-OP Financial Services Network. • Credit unions are under increased pressures to find ways to better manage third-party vendor relationships and expenses. The Ventelligence automated system provides solutions and tools for organizing, assessing risk, tracking, monitoring third-party agreements, and ensuring critical document retrieval. Risk Management & Compliance • With stricter NCUA guidelines, protecting assets and managing the risk for third party agreements are critical in the financial services industry. • Regulations and compliance guidelines have never been more extensive and complicated than they are today. Our Audit and Compliance Solutions provide a variety of professional and cost-effective ways to stay in compliance and ensure the safety and soundness of the credit union. Visit www.myleverage.com for a complete list of solutions, or contact a Business Development Representative for any questions at consult@myleverage.com. ■

A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 1, Issue 3

New Product Profiles LEVERAGE Partners with CitiFinancial Auto for Out-of-Network Remarketing Services While credit unions typically have relationships to handle repossessed vehicles locally, it can often be a time consuming and extremely inefficient to have a vehicle repossessed that is out of your local area. How can a car effectively be secured if it is located in Seattle and your credit union is headquartered in Florida or Alabama? LEVERAGE has developed a partnership with CitiFinancial Auto to help solve your out-of-area reposession needs. Credit unions can now plug into a network of more than 160 fully licensed and insured agents to handle repossessions throughout the United States. Additionally, the vehicles can be marketed and sold through the CitiFinancial Auto auction network. This network helps avoid costly transportation and storage charges and most importantly allows you to sell a vehicle that may be thousands of miles away with confidence. Remarketing will now be handling true end-to-end solutions including repossessions, remarketing, skip tracing, and collections. CitiFinancial Auto has experts dedicated to provide credit unions with the most up-to-date information including, state laws, FDCPA laws and regulations, and the newest tracking software. They have more than 12 years of skip tracing experience and strive to provide the highest net return on vehicle sales while reducing costs associated with repossessions.

Debt Collection for Non-Sufficient Funded Accounts Green Flag Profit Recovery is a national program that assists credit unions with debt collection on non-sufficient funded accounts. Their system has proven industry-leading results including, $2.4 billion recovered over the last five years for 60,000 clients and a 45% recovery rate at a cost of less than four cents per dollar recovered. With proven results and their dedicated service, Green Flag has gained the trust and confidence from their diverse set of clients. The diversity in their clientele has proven Green Flag’s ability to create services specifically to the clients needs. Credit unions will find this service essential to saving them time and money.

Partner FYI Employee Notification Requirements for Health Care Reform Provisions The first Health Care Reform provisions are upon us. But changes to your plans aren’t the only things that are required. Employers must also provide their workforces with several important notices regarding the reform law’s mandates and coverage changes. The following notices need to be provided to employees prior to the first plan year beginning on or after September 23, 2010 (unless another deadline is noted). 1. Notice of grandfathered status - If your plan will maintain its grandfathered status, you’re required to tell that to plan participants. 2. Notice of special enrollment for those who’ve hit their lifetime limit - The law bans health plans from putting lifetime limits on the dollar amount of health care coverage participants receive. Therefore, those who have reached their limits must now be given a special enrollment notice indicating that they are eligible for coverage again. 3. Primary care designation and OB/GYN notice - You must communicate that each employee has the right to designate a primary care physician who will coordinate his or her health care. You must also inform your female employees that they can obtain OB/GYN care without prior authorization. 4. Notice of new dependent eligibility rules - Health plans must now offer coverage to participant’s dependent children under the age of 26, and participants must be notified that their dependent children are now eligible for enrollment. It is ultimately the employer’s responsibility to make sure plan participants receive these notices. The notices were provided by the U.S. Department of Labor. These documents are available for download at www.cunamutual.com/heathcarereform.

www.myleverage.com SIGNAL: Vol. 1, Issue 3

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