Signal magazine

The Magazine of the League of Southeastern Credit Unions

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INSIDE LSCU 2011 Legislative Outlook Regulatory Q&A with Herb Yolles 2011 Education Calendar of Events LSCU Member Survey Results Winter 2010 Volume 1: Issue 4

Riding the Economic Roller Coaster

ies and it n u rt o p p o n io n it u We identify cred industry r u o e g ra e v le d challenges, an e credit v ti a v o n in t c e n n co relationships to credit unions. h it w rs e id v ro p union service

Call us at 866.231.0545 x1144 or visit us online at www.myleverage.com.

Table of Contents

Editor Amy Jowers

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Message from the President

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CU President Profile

Contributors: Bill Berg Joy Breedlove Mike Bridges Mary Elicia Del Santo Will McCarty Laura Vann Production: April Banta Detra White

Heath Harrell | Guardian Credit Union Heath answers questions about his credit union history, their recent merger, 2011 credit union opportunities, and more.

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Feature Article Credit Unions: Operating in the New Norm

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

Unemployment, foreclosures, and corporate assessments are among the factors forcing credit unions to rethink their old business model. The credit union movement’s future depends on increased cooperation.

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COMING SOON LSCU Councils Launch New Look and Format

Advocacy CUNA’s Bill Cheney Meets Alabama and Florida Credit Unions 2011 Legislative Outlook Meet Newly-Elected Legislators

HIGHLIGHTS 14 | Meet New Legislators

21 | Compliance Q&A

29 | Communications

The 2010 elections brought in sweeping changes in Florida, Alabama, and Washington D.C. Get to know the new members of Congress.

Herb Yolles spoke at the 2010 LSCU Development Conference and answers a few questions regarding current regulatory issues.

LSCU Image Campaign set to debut in spring 2011. LSCU is in the process of raising funds to collectively advertise the credit union message.

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Table of Contents 20

Compliance Corner

21

Regulatory Q&A

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Cooperative Initiatives Member Survey Results Consolidation of the Three LSCU Foundations

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League Education 2011 Calendar of Events The educational offerings range from convenient, cost-effective webinars that cover a variety of relevant topics to regulatory compliance workshops, state governmental affairs conferences, and the education-packed AC&E and Development Conference.

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Communications Image Campaign Set to Launch in Spring 2011 The creative for the campaign utilizes a landing website, TV, radio, online ads, billboards, and public relations. This allows the creative to be flexible for the 14 different media markets in Alabama and Florida.

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League News 2010 LSCU Development Conference Highlights Credit Unions Meet Costa Rican President

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LEVERAGE

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Directory

Group with Laura Chinchilla Miranda, president of Costa Rica.

HIGHLIGHTS

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22 | Cooperative Initiatives

23 | Education Calendar

28 | LEVERAGE

LSCU member survey results reflect positive feedback on what the LSCU has done for its credit union members.

LSCU has constructed a solid education calendar for 2011. These offerings will help members build and enhance the necessary skills needed to work efficiently and effectively.

Preparing for 2011: Riding the Economic Roller Coaster.

A Magazine of the League of Southeastern Credit Unions

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LSCU

Message from the President The fourth-quarter edition of Signal magazine focuses on how credit unions are coping with increased regulatory and compliance issues. In light of these changes, we are also highlighting how continued strong affiliation with the LSCU and CUNA has never been more important.

The LSCU has put a major emphasis on expanding and reconstituting the Governmental Affairs Department. We are working hard to meet with new members of our federal delegation to begin laying the groundwork for the 112th Congress. The CUNA GAC and the LSCU State GACs are vitally important next year for increasing awareness of credit unions and our political strength.

We have been conducting Town Hall meetings around Alabama and Florida with new CUNA President/CEO Bill Cheney. The meetings have given credit unions a great opportunity to get to know Bill and hear his vision for the credit union industry at the national level. The first four meetings were held in early December. The discussions were very good with credit unions hearing how CUNA is continuing to work on member business lending and capital reform. Cheney also spoke about how Patrick La Pine, president & CEO CUNA is working with the NCUA on the more aggressive supervision by the NCUA League of Southeastern Credit Unions and the corresponding increase in Documents of Resolution (DORs) and Letters of Understanding and Agreement (LUAs). CUNA has established a Supervisory Issues Working Group which is creating an Examination Bill of Rights for credit unions so that they can understand their rights and responsibilities and those of the examiner as well as know the appropriate procedures if there is a dispute.

During the meetings, Cheney laid out his vision for CUNA. He wants them to have a broader view and to align more with credit unions’ vision of the future. Cheney would also like to change the conversation with lawmakers. When they are asked if it’s important to have cooperative financial institutions, lawmakers emphatically say yes. Cheney says it’s now vital that CUNA gets those lawmakers to understand the credit union position and how a heavy regulatory burden is detrimental to credit union members.

This year we have made great strides at the LSCU. Some of the highlights include our Annual Convention and Exposition (AC&E) that had more than 1,100 attendees. It quickly became one of the premier credit union events in the country. Our Governmental Affairs staff, along with member credit unions, met with federal lawmakers twice in Washington D.C. and also many times back in their districts. We put together federal and state voter’s guides to help credit unions make informed decisions on Election Day in November. Credit unions were sent Custom Performance Reports each quarter, giving members a greater understanding of their financial picture. We are working on a 2011 Statewide Image Campaign, and we instituted a $400 initiatives program for Small Asset Size (SAS) credit unions to assist them in securing a product or service from the LSCU or CUNA. The accomplishments of the new league, the reconstituted and expanded Governmental Affairs Department, and the Cheney Town Hall meetings are examples of how the LSCU is working on your behalf. In our cover story, Operating in the New Norm, a credit union told us that “the League is partnering with credit unions for the first time in years.” That’s high praise for us because it shows us that credit unions understand the new mission and vision of the LSCU. As we look ahead to 2011, there will continue to be rough patches in the economy and assessments from the NCUA. But a strong, collective credit union voice from Alabama and Florida will give us solid footing as we re-engage lawmakers in Montgomery, Tallahassee, and Washington D.C. However, we can only do this through strong affiliation. We hope you will continue to see the increased value of the League as we operate in the new norm together.

Patrick La Pine President & CEO SIGNAL: Vol. 1, Issue 4

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CU PROFILE

CU President Profile Heath Harrell 1.

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Most of your family worked for the credit union industry.

You might say it’s in your blood. What has the credit union movement meant to you in your life?

I can remember being excused from school so that I could attend the CUNA GAC for the first time. Little did I know then but this was the year of the landmark legislation known as HR 1151. I can remember hiking the hill to meet our representatives and listening to distinguished credit union representatives speak about the importance of the bill. Just a few of the other memories that shaped my perspective of the industry were listening to my parents discuss credit unions every evening, sitting in (former Alabama Credit Union League President) Gary Wolter’s office while a few managers discussed credit union issues, and listening to Patrick Adams facilitate one of my father’s (Mike Harrell, CEO at ACIPCO FCU) planning sessions. I also had the opportunity to work for Thomas Bonds at Corporate America CU for a couple of years. I gained a tremendous amount of knowledge of just how the system works. Credit unions play such an important role in the lives of individuals. I’m looking forward to carrying on the traditions of the past with ideas of the future.

You are active on the LSCU Governmental Affairs Committee, why should credit unions be active with their legislators?

It is extremely important that credit unions be active with their legislators. If we want the credit union industry to continue to prosper, we’ve got to be active. We need to be informing our membership of the issues and the candidates that support credit unions. If we can make an impact on our membership, then we’ve made an impact to the legislator. The LSCU PAC put out a scorecard for each candidate. Credit unions need to provide this information to their membership so they know where the candidates stand on the issues. Even credit unions are uncomfortable endorsing a candidate; we need to publish who is standing with credit unions on the issues. We need to get the membership behind the legislators that are behind the credit union. Bankers fight with large sums of money; we’ve got to take a different route. I’ve never seen bankers gather thousands of ‘customers’ to support their causes.

Credit unions are under a lot of pressure right now, how do you keep your day-to-day operations in perspective?

The one constant is things are not getting easier. With all of the moving parts in today’s environment, it’s imperative that we have good people in management. I also believe that a well trained staff is a major factor in our success. When the staff is well A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 1, Issue 4

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trained, they understand the role they play in achieving management’s goals. Everyone needs to be equipped with as much knowledge as they can comprehend about the credit union. Once that happens, a sense of ownership is achieved and the credit union Heath Harrell, CEO Guardian Credit Union prospers from better results. A well trained staff significantly helps to reduce employee turnover.

Where do you see opportunities for credit unions in 2011?

I think credit unions have potential in SEG growth, MBS, eServices, etc. Credit unions should be seen as the way of the future. Sometimes this isn’t the case because we don’t make it obvious that we are moving into the future. We’re reluctant to invest in our processors, website, and marketing materials. If it looks outdated, then a potential member will keep on moving to the new, flashy bank that just put up a new sign on the corner.

Of course we need to be financially strong; but we don’t need to forget the importance of creating a persona of strength by our appearance. Most members do not ask for the credit union’s financial statements because they determine our financial strength by the image we portray.

You recently completed the merger of Guardian and COMALA. How will this merger help your membership?

The merger of Guardian and COMALA Credit Union was completed on October 1. Guardian Credit Union now has twice as many branches to better serve our 27,000 members. We’re in the process of evaluating vendors and services to make sure we’re providing the best options to our membership. The opportunities are endless and we’re looking forward to each turn and twist along the way. ■

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

Guardian Credit Union Montgomery, Alabama $139,987,395 15,746 $115,023,814 $72,692,794

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FEATURE

Credit Unions: Operating in the The Power of Affiliation & Cooperation Will Determine the Future When the financial crisis hit in 2007, credit unions were caught in the middle. While they didn’t cause the problems on Wall Street, they certainly have been included in the fall out. Unemployment, foreclosures, and corporate assessments are among the factors forcing credit unions to rethink their old business model. Affiliation with the League and CUNA is now vitally important so credit unions in Alabama and Florida can speak with a unified voice to help lawmakers understand how more regulations adversely affect members. The credit union movement’s future depends on increased cooperation.

Credit unions were not immune to the massive rise in unemployment. Alabama was already experiencing record low unemployment when the meltdown occurred. According to the Bureau of Labor and Statistics, the unemployment rate rose from a historical low of 3.3 percent in 2007 to the current 8.9 percent. In Florida, according to the Bureau, the state set its record high earlier this year at 12.3 percent and has recently decreased slightly to 12 percent in November.

The housing market continues to lag in both states. While Alabama has one of the lowest foreclosure rates, the Florida foreclosure rate continues to drag down the economy. According to RealtyTrac, the Florida foreclosure rate in October was still one of the highest in the country at one in every 155 households. With high unemployment and high foreclosures, credit unions are seeing members struggle, requiring a new way of looking at core operations.

“In many ways, we’ve gotten back to basics,” says Gerri Sexsion, president/CEO of Jax Federal Credit Union in Jacksonville, Florida. She says they are tightening their belts with little light at the end of the economic tunnel.

“We’re doing more with less like everyone else and getting the most out of our investment in branches. We’re learning to ‘pull the plug’ on those products and services that are not being used by members but in the past may have been thought to be sacred cows.”

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Alabama credit unions have not been hit as hard by foreclosures, but they have seen their share of member struggles. As the members struggle to make ends meet, the demand for loans continues to decrease. More members are saving money and paying off debt. This is causing credit unions, like Tuscaloosa Credit Union, to reconfigure their core operations because the old business model will likely not return.

“Tuscaloosa Credit Union aggressively manages dividend costs and operating expenses. However, in managing dividend costs, the credit union made a decision to not make the savers bear any more cost than necessary,” said Tommy Cobb, president/CEO of Tuscaloosa Credit Union, Tuscaloosa, Alabama.

He says doing more with less is quickly becoming the new norm. “Operating costs have been the primary focus of reduction.

Beginning in mid 2008, we began contacting all our vendors and asked them to re-negotiate contracts. In most cases, TCU exchanged longer terms for lower pricing. We also began leveraging the talent of staff to lower cost or increase efficiency in every job.”

When the NCUA took two corporate credit unions into conservatorship in March 2009, it threw the natural person credit unions’ long-range forecasts into disarray. When three more were taken into conservatorship this past September, yearly assessments suddenly became a part of credit union’s future and a new budget line item.

The NCUA is attacking the corporate credit union problems with a three-pronged approach of stabilize, reform, and resolve.

The NCUA says it has stabilized the situation by owning more than 90 percent of the legacy assets of the corporates and 98 percent of the losses to the industry. The NCUA has a resolution plan that includes new corporate rules that establish bridge corporates for four of the five seized institutions for two years and selling some of the legacy assets as guaranteed notes.

The latest addition to the corporate rule includes limiting natural person credit unions to joining one corporate, setting up a systemwide risk mitigation committee, and requiring each corporate to form a risk management committee. Credit unions have until Jan. 28 to comment on the latest proposals.

The U.S. Treasury has given the NCUA until 2021 to pay back a loan to help shore up the corporate credit union system. This means credit unions will be levied assessments from the NCUA for the next 11 years. Needless to say, this is yet another burden that takes the focus off the member.

New Norm “Absolutely,” says Brent Lister, president/CEO of First Florida Credit Union, based in Jacksonville, Florida. “Instead of focusing on our growth and other strategic initiatives, we have been focusing on NCUA directives. The assessment is a new cost with no value to our members. We are trying to stay ahead of the curve on it, but it’s so easy for the board to get focused on NCUA initiatives that we get away from the job of strategic planning. It’s part of the process, so we just have to manage it effectively and not let it stifle our success.”

Mark Johnson, president/CEO of Naheola Credit Union in Pennington, Alabama cuts to the chase on the NCUA assessments. He says the member suffers. “The assessments have decreased our ability to pay bonus dividends and interest rebates,” he says.

While the economic storm and NCUA assessments have rocked the credit union industry, more and more regulations are choking it. Lawmakers made sweeping changes to credit cards (Credit Card Act of 2009) and the Dodd-Frank bill reforms the financial industry as a whole including potentially damaging interchange fees and limiting the debit card program for credit unions. This means credit unions now have a mountain of legislative regulations to assess and eventually be in compliance.

“We spend way too much time reading about proposed regulatory changes, trying to fight those that are absolutely off base, and writing policies for those that become law,” says Sue Massa, president/CEO of Flag Credit Union in Tallahassee, Florida. “This is the first time in the history of being in the credit union industry we have made extensive software changes to address a regulation that was changed just a few weeks after its implementation and we created a policy for a new requirement that isn’t even able to be put into place (the S.A.F.E Act).”

Jax FCU’s Sexsion says it’s getting more and more difficult to operate the credit union amid all of the regulations. “We’ve seen our expenses rise as we attempt to comply with the new regulations while our fee income has been significantly reduced by other

regulations. It’s become harder to produce a positive bottom line which means that we can’t increase the size of the credit union without putting pressure on net worth.”

So how does the credit union movement operate within this new norm and still serve its membership? Affiliation with the League and CUNA is as important now as it’s ever been. At the LSCU Town Hall meetings in December

“Instead of focusing on our growth and other strategic initiatives, we have been focusing on NCUA directives.

The assessment is a new cost with no value to our members. We are trying to stay ahead of the curve on it, but it’s so easy for the board to get focused on NCUA initiatives that we get away from the job of strategic planning. It’s part of the process, so we just have to manage it effectively and not let it stifle our success.” with CUNA President/CEO Bill Cheney, the discussion turned to the corporate credit union problems and the assessments. Cheney said CUNA is working with the NCUA to look at the assessments and that there may be some wiggle room in how long credit unions need to be assessed. The LSCU has also met a number of times CONTINUED ON PAGE 10

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FEATURE

Credit Unions: Operating in the New Norm (Continued) with NCUA Region III Director Herb Yolles to talk about the examination process and opening the lines of communication between credit unions and their regulators. These are examples of how the LSCU and CUNA are working to help ease the burden for credit unions.

“I think the League, for the first time in years, is really trying to be a partner for credit unions. I hope they continue to understand that times are changing, and they need to listen to what we (credit unions) need,” says Flag’s Massa.

Every quarter, the LSCU distributes Custom Performance Reports to member credit unions to show how their credit union is doing financially in each state. The LSCU also prepares and distributes state-specific economic profiles for Alabama and Florida on a quarterly basis. This is a tremendous benefit to credit unions.

The November elections brought more than 100 new members to Congress and Alabama and Florida state legislatures will see many new members in 2011. Member credit unions have three lobby opportunities with these lawmakers in 2011 at the CUNA GAC Feb. 27 – Mar. 3 in Washington D.C., while the League has State Governmental Affairs Conferences on the schedule for Montgomery

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March 30-31 and Tallahassee April 13-14. Lawmakers need to hear directly from credit unions on how these regulations affect members.

These visits with federal and state lawmakers are an invaluable benefit to credit unions given the current regulatory environment.

“The League has much more expertise dealing with the political issues and most CEOs deal better with the financial health of the credit union. Therefore, we can concentrate on what we do best and let the League concentrate on the political environment,” says Naheola’s Johnson.

The new norm for credit unions is changing. The old way of doing business is likely gone forever. Credit unions have grown from the back rooms of factories, schools, and churches: they provide a much needed service to members; a personal touch that is lacking in today’s fast-paced world. Operating within this new norm will take the collective powers of credit unions, the LSCU, and CUNA. The power of affiliation, increased advocacy, and the credit union cooperative nature will steer the movement through these uncertain times. ■

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ADVOCACY

Advocacy CUNA’s Bill Cheney Meets Alabama and Florida Credit Unions Credit unions discussed the more aggressive supervision by the NCUA and the corresponding increase in Documents of Resolution and Letters of Understanding and Agreement. CUNA has established a Supervisory Issues Working Group. Cheney says they are creating an Examination Bill of Rights for Credit Unions so that credit unions can understand their rights and responsibilities and those of the examiner as well as know the appropriate procedures if there is a dispute.

Cheney’s vision for CUNA is one that is more steeped in a broad sense. He says that credit unions need to change the conversation in Washington about credit unions. He says when lawmakers are asked if they think a cooperative financial institution should exist, they all say yes. With a broader view of the future, Cheney says credit unions can see the incremental steps that CUNA is taking and how it is working. He also added that CUNA is Bill Cheney, CUNA CEO, spoke at CFE Federal building quite a bit of political capital Credit Union town hall meeting in December. right now because they are talking to lawmakers about ideas that will help consumers and not using the opportunity to bash banks. Cheney CEOs and senior management attended the town says that lawmakers continue to see value of credit unions. hall meeting at GTE Federal Credit Union.

Cheney will speak to credit unions in the Pensacola, Tallahassee, and South Florida areas January 13-14, 2011. To learn seven Town Hall meetings in December and January featuring more about those meetings or to sign up to attend, visit the LSCU Cheney. The meetings are designed to let credit unions hear Educational Calendar at www.lscu.coop. ■ Cheney’s vision for the national credit union movement and also the new direction at CUNA. In early December, Town Hall meetings were held in Huntsville and Birmingham and in Tampa and Orlando. Cheney talked about the elections and how credit union-backed candidates did very well. The CUNA Governmental Affairs team supported 310 winning candidates of 358 House races and 27 of 31 Senate races. Cheney said that the Washington Post named CUNA the most bipartisan organization in Washington. He has strong ties to many lawmakers, but he explained that Mica has been helping to introduce him to more key lawmakers. Recent meetings with new House Speaker John Boehner (R-OH) and Sen. Dick Durbin (D-IL) went very well.

He says Boehner was open to listening to credit union needs, but Joe Newberry of Redstone Federal Credit Union greets Bill Cheney. that he may not always agree with them.

This past July, CUNA saw its first leadership transition in 14 years. Former California and Nevada Credit Union League President/CEO Bill Cheney was chosen to succeed CUNA CEO Dan Mica, who was retiring. Mica had been with CUNA since 1996.

Cheney moved to Washington, D.C. and hit the ground running.

Member business lending and interchange fees were heating up on Capitol Hill. Cheney says his first order of business was to make the transition as seamless as possible and pick up where Mica left off.

Mica has stayed on through the end of the year in a consulting role.

With the new direction at CUNA, the LSCU President/CEO Patrick La Pine felt it was a good time to bring Cheney to Alabama and Florida to let credit unions get a chance to meet Cheney. The League is holding

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2011 Legislative Outlook Will McCarty, SVP, Governmental Affairs With the 2010 election season in the history books, the LSCU Governmental Affairs team begins to look toward the 2011 legislative sessions. In Washington, D.C., Congress will be split between a Republican House of Representatives and a Democrat Senate, in Montgomery the Republicans have taken control of the Legislature for the first time in more than 130 years, and in Tallahassee the Republican Party strengthened its majority to a new high. In all three capitals, our elected representatives will be focused on budget problems, addressing the national debt in Washington, and projected budget shortfalls in both Florida and Alabama. As the country and our states continue to recover from the financial uncertainty of the last two years, numerous ideas purporting to address both the causes and the symptoms of the recession will be floated and debated.

In Washington, the split in the control of Congress likely means no controversial legislation of substance will pass. This is a mixedblessing. Less likely to pass will be legislation such as damaging limits on the ability of credit unions to offer overdraft protection programs, or placing credit unions under the Community Reinvestment Act. On the other hand, any attempts to amend some of the existing regulatory burden, especially those created by the Dodd/Frank Financial Regulatory Reform bill, will be able to make it through both chambers and gain the President’s signature. While “big-ticket” controversial legislation is less likely to pass, some positive changes could be possible for credit unions, such as capital reform. There are a number of options here for credit unions, including adjustments to PCA to allow for risk-based capital considerations, as well as possible avenues for alternative capital. CUNA and the League are working with our Congressional delegations already to begin building support for changes that will improve the bottom line for credit unions.

In the state capitals, the League is looking at a number of legislative issues affecting credit unions. We will be proactively addressing the ability of credit unions to accept public deposits. These are funds held by state, county, and

municipal government and other agencies such as local school boards.

Under current state law, these funds may only be deposited in institutions that are FDIC insured. Since credit unions are federally insured, although by the NCUSIF instead of the FDIC, there would be no greater risk to the funds than under current law. In fact, giving public depositors greater flexibility in where to place their deposits, and making such an option a locally owned institution such as credit unions, will be of significant benefit to the agencies.

These deposits are something that banks have come to view as “theirs” alone, and we can expect a serious fight over this issue.

However, it is a matter of fairness for credit unions and good public policy for the agencies and an issue that we will be addressing during the upcoming sessions.

The League will also be looking at a number of bills that may carry over from last session that concern us. As the mortgage and foreclosure issue continues to receive attention in the press, we expect to again see different bills that limit the ability of lenders to best address loans in default. Also in past sessions, we have seen legislation that would place additional unnecessary regulatory burdens and potential civil liability on credit unions and other financial institutions. While we know what some of these bills may be, based on previous legislation we fought, there are any number of other bills that may contain these kinds of harmful provisions. We will either amend the bills when possible, or fight their passage if necessary, depending on the nature of the issue involved.

Like any legislative session, we know some of the bills that are likely to be introduced and know some of the changes we will want to make to the environment for credit unions.

However, as with any session, there will be some unexpected issues that will be introduced which the League will address for the

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ADVOCACY

2011 Legislative Update (Continued) benefit of credit unions. With new majorities in Washington and Montgomery, and with a lot of new faces in both of our state capitals and in Washington, the need for credit union advocacy is as great as ever. While the League Governmental Affairs staff will continue to work to best position credit unions in all three arenas, it is not something we can do alone. The strength of the credit union advocacy efforts has always been the willingness and ability of credit union professionals and volunteers to get involved. Whether it is coming to the CUNA GAC, or to either of our State Governmental Affairs Conferences in Montgomery and Tallahassee, involving your staff and even members in responding to Action Alerts on legislative issues, or hosting elected officials to further educate them about credit unions, 2011 will be an important year for every credit union to take some part in the process. ■

Meet the Newest Members of Congress The 2010 elections brought in sweeping changes in Florida, Alabama, and Washington, D.C. In Florida, the Republican Party captured the elected cabinet positions including Governor, Lt. Governor, Attorney General, CFO, and Agriculture Commissioner, all of which have an impact on credit unions. In addition, the Republicans increased their margin of control over both the State House and the State Senate. In Alabama, Republicans took control over both chambers of the Alabama Legislature for the first time in more than 130 years and held the Governor’s office while capturing the office of Lt. Governor, and all major Constitutional offices. And in Washington, the Republicans took back control of the House of Representatives while the Democrats were able to hold the Senate, albeit by a decreased margin.

In Alabama, out of seven members of the House of Representatives in Congress, three will be new members. In Florida, eight of the 27 members of the delegation (House and Senate) will be new members, meaning that the League and credit unions will have to work hard to establish new relationships with both the new members and their staff. While most are already familiar with general credit union philosophy and issues, due to the League’s work in the campaign, significant efforts will be made to educate them on specific issues that credit unions face in Washington.

The newest members of Congress come from a wide variety of backgrounds and have very different perspectives on legislative issues. The League encourages everyone to get to know your member of Congress and help begin the process of forging great working relationships with them.

Alabama Martha Roby (Alabama’s 2nd Congressional District) Martha Roby (R) defeated one-term Democrat Bobby Bright to win back control of the 2nd Congressional District, which was a historically Republican district. Martha is a native of Montgomery, where she was elected to the City Council in 2003, defeating five other candidates without a runoff. Representing the most socially and economically diverse council district in the city, she was re-elected in 2007 with more than 82 percent of the vote. During her time on the City Council, she made a reputation of fighting against tax increases and to fight against businesses hiring illegal aliens. Martha obtained a bachelor’s degree from NYU in 1998 and a degree from Cumberland School of Law in 2001.

Mo Brooks (Alabama’s 5th Congressional District) Mo Brooks (R) defeated one-term incumbent Parker Griffith in the primary and won the general election race against Steve Raby (D) by a comfortable margin. Mo received a BA from Duke University in 1975 and his law degree from the University of Alabama in 1978. He then worked as a prosecutor in the Tuscaloosa District Attorney’s office, before returning to Huntsville. In 1982, he was elected to the Alabama House of Representatives and was re-elected three times, serving until 1991. In the Alabama House, he was chairman of the Republican House Caucus, ranked number one of 140 state legislators by the Alabama Taxpayers’ Defense Fund, and ranked in the top 20 percent by the Alabama Alliance of Business and Industry. Since 1996, Mo has served on the Madison County Commission.

CONTINUED ON PAGE 16

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ADVOCACY

Terri Sewell (Alabama’s 7th Congressional District) Terri Sewell was raised in Selma, Alabama. She graduated with honors from Princeton University, then Harvard Law School in 1992. During summers in college, she worked in Washington for Alabama Senators Howell Heflin and Richard Shelby. After graduating from law school, Terri clerked for Judge U.W. Clemon of the US District Court, before moving to New York where she worked as a securities lawyer for more than a decade, gaining an understanding of finance and capital markets.

Since returning home to Birmingham, she has worked as a partner at Birmingham firm of Maynard Cooper and Gale. Her practice has focused on education finance, representing Alabama State University, Stillman College, and Jefferson State Community College, among others.

Florida Steve Southerland (Florida’s 2nd Congressional District) Steve Southerland (R) was raised in Panama City. He graduated from Troy State University and received an A.A. degree in Mortuary Science from Jefferson State Community College. Southerland is current co-owner/president of Southerland Family Funeral Homes and was appointed by Governor Jeb Bush to the Florida Board of Funeral Directors, and had the distinct honor of serving as chairman during his second term. He also served as chairman of the Bay County Chamber of Commerce and chairman of the Salvation Army Advisory Board as well as such community boards including the Florida State University Panama City Development Board and the Covenant Hospice Foundation Board. He is a member of the National Rifle Association.

Rich Nugent (Florida’s 5th Congressional District) Congressman-elect Rich Nugent served in our Armed Forces and as Sheriff of Hernando County.

He is a strong fiscal conservative who returned to Hernando County more than $2 million in 2009.

In 1969, he joined the Illinois Air National Guard where he served until being honorably discharged in 1975. During that time, he began his career in law enforcement. In 1984, he joined the Hernando County Sheriff’s Office where he rose through the ranks and was elected sheriff in 2000, 2004, and 2008. Around Hernando County, he is known as a dedicated community volunteer serving as a charter member of the Spring Hill Rotary Club and chairman of the YMCA’s Capital Campaign.

Dan Webster (Florida’s 8th Congressional District) As the state House Republican Leader in the 1990s, Webster engineered the successful Republican takeover of 1996, ending 122 years of Democrat control. He was the first GOP Speaker of the House in more than a century. Webster worked to reform the way the Legislature did business, and his sweeping reforms earned him widespread praise across Florida. As speaker, Webster required each proposed law to meet specific criteria that would determine its effectiveness in advancing conservative principles. He was elected to the Florida Senate in 1998 and served as Majority Leader his final three years.

Dennis Ross (Florida’s 12th Congressional District) Dennis Ross was born in Lakeland, Florida. Raised on modest means, Dennis graduated from Lakeland Senior High in 1977. Throughout school, Dennis was active in student government. He graduated from Auburn University in 1981 and went on to work as a legislative aide for State Representative Dennis Jones. In 1983, Dennis and Cindy were married and, within a year, he went to law school at the Cumberland School of Law at Samford University in Birmingham. He started his own law practice in 1989 and served as President of the Lakeland Bar Association. He has also served as a Board member of the Lakeland Chamber and on various charity and community boards. In 2000, he ran for the Florida House of Representatives and served until he was term limited in 2008.

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Freddie Wilson (Florida’s 17th Congressional District) State Senator Frederica (Freddie) Wilson was elected to succeed Congressman Meek after following him in the Florida House of Representatives and then the Florida Senate. In more than a decade of service in the Florida State Legislature, she also served the community as a teacher, principal, and school board member. While others have merely spoken about bipartisanship, she has practiced it. She worked with then-Governor Jeb Bush to remove the Confederate flag from the state capitol, to start HIV/AIDS testing in prisons, and to reform the implementation of the FCAT. She joined with then-Governor Charlie Crist to achieve the restoration of voting rights for felons. Her legislative career has been one of significant accomplishments.

Mario Diaz-Balart (Florida’s 21st Congressional District) For a decade, Mario Diaz-Balart served the residents of Florida’s 25th District in Congress. Now, he is moving to the 21st to succeed his brother, Lincoln. He has helped lower taxes for families and small businesses and has fought attempts to raise taxes on Americans. In addition, he successfully delivered millions of dollars in funding for key local projects. Prior to serving in Congress, he served in the Florida State Legislature for 14 years where he became the youngest person ever elected to the Florida Senate in 1992 and was named “Most Effective Legislator” by the Miami Herald in 1996.

Sandy Adams (Florida’s 24th Congressional District) A former deputy sheriff, Sandy Adams built a reputation as a tough, no nonsense leader. She is a proponent of “zero-based” budgeting in Washington to ensure bureaucrats justify their spending.

She supports a balanced budget amendment to the Constitution and will vote against any legislation increasing spending until we’ve balanced the budget. Raised in a military family, she joined the Air Force at 17. Once a single parent, working two jobs seven days a week, she decided to pursue a career in law enforcement. In 1985, she joined the Orange County Sheriff’s Department where she served for 17 years until being elected to the state legislature in 2002. She was termed out in 2010.

David Rivera (Florida’s 25th Congressional District) Born in New York, David Rivera has lived in Miami nearly 40 years. He is a member of several civic, community, and professional organizations, including the Association of Hispanic Public Administrators. He was elected to the Florida House of Representatives in 2002 and served as chairman of the House Appropriations Committee which oversees development of Florida’s budget.

Rivera also served as Miami-Dade Political Director during Senator Connie Mack’s 1988 campaign.

He also served as South Florida Political Director for Jack Kemp’s 1988 presidential campaign. In 1996, he served as Dole-Kemp campaign manager for South Florida. He is currently the chairman of the Republican Party of Miami-Dade County.

Allen West (Florida’s 22nd Congressional District) Congressman-elect Allen West, a retired Army Lt. Colonel, was born and raised in Atlanta.

Retiring in 2004, he moved to Broward County and taught high school for a year. He then returned to Afghanistan as an advisor to their army, where he served for two years. He received his B.A. from Tennessee and M.A. from Kansas State, both in political science and holds a Master of Military Arts and Sciences from the US Army Command & General Staff College. He served in Operation Desert Storm, in Operation Iraqi Freedom as a battalion commander, and in Afghanistan. He was honored many times, earning a Bronze Star, three Meritorious Service Medals, three Army Commendation Medals (one with Valor), and a Valorous Unit Award. He proudly wears the Army Master Parachutist badge, Air Assault badge, and Navy/Marine Corps parachutist insignia. ■

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ADVOCACY

Election Q&A with Richard Gose, CUNA SVP, Political Affairs

Q:

The general election was held Nov. 2. How did credit unions fare in that election?

A: For credit unions, this election was important because we have been active more than ever before. Credit unions were involved in 358 races in the House and 31 of 34 open races in the Senate. We were quite active and our involvement was at the highest level of all times. This new Congress is a new opportunity and, for credit unions, it’s not really about if it’s a Republican or Democrat, it’s about where people stand on credit unions and we feel there’s a number of people coming into this Congress that have a good understanding of credit unions and they will be there for credit unions.

Q:

What do credit unions need to do now that there are so many new faces in Washington D.C.?

A: First and foremost, credit unions need to get with those members of Congress between now and the time they’re sworn in. They need to explain all of the credit union issues, what’s before them, what’s facing credit unions and how credit unions are helping their constituents back in the districts. I think it’s imperative we meet with those folks early and often between now and the next election.

It’s a constant drum beat because if you aren’t talking to them someone else is going to be.

Richard Gose, CUNA Senior Vice President, Political Affairs speaks to attendees at the LSCU Development Conference about what credit unions can and should do to create the most positive political environment.

Q:

What is on the 2011 legislative agenda for CUNA?

A: You’re going to have a Republican House, a Democratic Senate and a Democratic Administration, so there will be some gridlock. But, that doesn’t mean everything is off the table. I think we keep advocating for our issues, talk about why member business lending, additional capital reform is important to credit unions and how it can benefit their constituents. Again, I don’t think these issues are Republican or Democrat. I think they’re issues important to the consumer and their constituents. I think we can form a consensus. So, I would say stay the course and keep fighting and I believe we can have some success.

Richard Gose is the senior vice president of political affairs for the Credit Union National Association. Gose has been with CUNA for 12 years. He uses partnerships with state leagues to develop a number of programs and services to help credit unions and their members improve their legislative and political standing. You can see a video conversation with Gose by going to the LSCU Video center at www.lscu.coop. ■

Richard Gose, at the LSCU Development Conference, discusses the different communications sent out to members.

LSCU Governmental Affairs Conferences Date: March 30-31, 2011 City: Montgomery, AL

Date: April 13-14, 2011 City: Tallahassee, FL

Contact: Justin Thames, Grassroots & Political Action Coordinator Phone: 866.231.0545 x1010 | Email: justin.thames@lscu.coop For more information, visit www.lscu.coop.

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COMPLIANCE

Compliance Corner Corporate Credit Union legacy asset resolution outlined at the Atlanta and Orlando Town Hall Meetings Bill Berg, MBA, CCUE, CUCE, BSACS, VP, Regulatory Affairs The National Credit Union Administration (NCUA) reported that over the past 24 months several corporate credit unions have suffered alarming losses due to a decline in the value of the mortgage backed securities they held. These losses threatened to destabilize the entire credit union system and interrupt payment transactions for millions of credit union consumers. The Atlanta and Orlando Town Hall meetings were started off and moderated

by NCUA Board Member Gigi Hyland with presentations by NCUA Counsel Robert Fenner and Examination Director Melinda Love.

NCUA Board Member Gigi Hyland speaks at Orlando meeting.

One key take-a-way was the need for successful stabilization of the system and the “Corporate System Resolution” designed to address individual problem institutions and reform the regulatory framework for corporate credit unions were discussed with credit union leaders from across the region.

The “Corporate System Resolution” is based on a comprehensive analysis of the entire corporate system and a commitment to “protect the interests of consumers.” This involves the NCUA assuming control of five corporate credit unions and using bridge corporates to facilitate an orderly transition of the operations of these five institutions to other entities. The NCUA is committed to ensuring there is no disruption in corporate payment system processing, preserving confidence in the credit union system, managing the least long-term cost possible, and facilitating the orderly transition to a new regulatory environment based on natural person credit union choice.

To accomplish these goals, an immediate bridge funding arrangement has been established to finance the isolation of the 20

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“distressed” assets while the process of establishing permanent funding is finalized. This immediate “short-term” funding will be achieved through a Stabilization Fund. The U.S. Treasury has approved the extension of the Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund) through June, 2021. This means that credit union assessments can be made over a longer period of time. At this time the assessment amount for each credit union is uncertain, however, it is certain that annual assessments can be expected over the next five years. Also, the amounts of the assessments will vary based on changes to the actual amounts of the write downs. You shouldn’t expect to see the same 13.4 bp assessment each year. It is also likely that this amount will be higher in the near future.

Board Member Hyland also suggested that credit unions show the DVDs that the NCUA has provided to all federally insured credit unions so management can help explain to their boards how this crisis developed and why the credit union system is paying for this.

These videos are also available at www.ncua.gov.

NCUA will isolate and fund, long-term, approximately $50 billion in troubled (legacy) assets through the sale of guaranteed notes backed by the full faith and credit of the United States. With the legacy assets isolated and funded, the NCUA will work with Barclays Capital, New York, New York, to facilitate the sale of these legacy assets in the markets at the least long-term cost consistent with sound public policy.

Isolating legacy assets prevents the need to sell them at distressed prices. Securitizing and giving them a U.S. government guarantee and then selling them to investors on the open market, a market that will include credit unions, financial resolution can be achieved. The proceeds raised by their sale will provide continued funding for the legacy assets. This key component of the resolution will help ensure NCUA resolve the situation at the lowest possible cost, consistent with sound public policy.

The credit union system remains strong. Credit unions will fund all costs associated with the corporate credit union system resolution, not taxpayers. Prior to taking steps to stabilize the corporate credit union system, NCUA sought input from the Treasury, Federal Reserve, and other federal financial regulators about the plan and continues to work closely with these agencies to ensure the orderly resolution of troubled corporates. ■

Regulatory Q&A with Herb Yolles, NCUA Director, Region III

Q:

The NCUA held Town Hall meetings across the country to explain the corporate credit union plan, how has the message been received by credit unions?

A: The Town Hall meetings and the DVDs helped. I think credit unions need to understand what’s going on, the significant issues affecting them, and that they understand what we’re doing to minimize the losses to the insurance fund and to resolve the corporate credit union crisis. It’s all about communication.

Q:

Now that the NCUA has communicated to credit unions the corporate plan, do you think credit unions understand the plan?

A: I’ve seen a tremendous evolution in understanding. Two years ago there was a lot of anger and a lack of understanding. We held three Town Hall meetings in my region (Region III) and I can tell you that, by and large, all of the people there were well informed, and they understood what we were doing. Just by the nature of their questions, they had become more well informed over a two-year period about what happened and what needed to be done. I am very pleased at how well the plan has been accepted that we unfolded.

Q:

Herb Yolles speaks to attendees at LSCU Development Conference.

Q:

How effective do you think more communications will be for credit unions during the exam process?

The NCUA would like to see more communication from its examiners. What are you doing to help your examiners become better communicators with credit unions?

A: That’s an area where I always believe there will be room for improvement. We have 1,100 employees at the NCUA and some are great communicators and some are not. Hopefully, as an overall group, we can move forward. They (examiners) do their analysis, they’re very

good at their jobs and their work, but that work is not really that valuable unless they can communicate it and reach a meeting of the minds with their credit unions. I’m always pushing that issue, I’m always finding ways to encourage them to become better communicators, we’re always looking for training opportunities and I think it’s something we will always have to work on.

A: We’re pushing our examiners to act more quickly on problems and to act more aggressively on repeat issues, so absolutely they are going to have to be better at communicating why, whatever it is, they want a credit union to do is important, why it has to be done and perhaps there’s a better way to get there. That’s what communications is all about.

Herb Yolles was named NCUA Region III director in June. He has been with the NCUA for 32 years in a variety of roles including CFO, deputy director of Examination and Insurance, president of the Central Liquidity Facility, and Inspector General. Most recently he was associate regional director of Operations in Region II. You can see a video conversation with Yolles at the LSCU Video center at www.lscu.coop. ■

Bank Secrecy Act Training Workshop Date: February 16, 2011 Time: 9:00am - 11:30am EST City: Jacksonville, FL

Date: February 16, 2011 Time: 1:00pm - 3:30pm EST City: Jacksonville, FL

This BSA Training class is appropriate for frontline staff, lenders, officials, managers and compliance officers. The two and one half hour class incorporates a Currency Transaction Report workshop in which we study completed forms based on several common scenarios as well as a Suspicious Activity Report workshop. Just a few of the topics discussed include: Bank Secrecy Act Program Oversight, Creation and Maintenance, Risk Assessment, Review of Currency Transaction Reports, Currency Transaction Report Exemptions, Filing Requirements, Technology and the Bank Secrecy Act plus many more areas.

Contact: Becki Payne, Association Services Support Specialist Phone: 866.231.0545 x2129 | Email: becki.payne@lscu.coop For more information, visit www.lscu.coop.

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INITIATIVES

Cooperative Initiatives And the LSCU Member Survey Says...

Laura, Vann, VP, Cooperative Initiatives Throughout 2010, the LSCU has focused on learning about its members’ challenges in successfully operating a credit union in today’s competitive marketplace and economic climate. The LSCU’s goal is to develop solutions for credit union challenges and help them build a stronger, more vibrant credit union. Along with the League’s renewed commitment to member relations is a new commitment to always demonstrate the value of LSCU membership.

“Our recent member survey demonstrates that credit unions like the direction of the new “The League’s emphasis on advocacy League,” said LSCU President & CEO Patrick La Pine. “Eighty-seven percent responded that they efforts of late has been greatly appreciated. like what we are doing and 88 percent told us that the League understands credit union needs.”

First, I appreciate the free flow of information Moving into 2011, the LSCU will continue to demonstrate the value of membership on a daily related to important legislative issues. There basis. Credit unions have told us that our governmental affairs efforts are the most important has been a freedom to share abundant reason for affiliation. The CUNA GAC, state GACs, Hike-the-Hills, and the League’s grassroots information about the status of important efforts will focus on building a better operational climate for its members in 2011 and beyond. issues that would impact our credit union. That For the small asset size (SAS) credit unions, those under $35 million in assets, the League information has been very beneficial in helping recognizes they need ongoing assistance in meeting regulatory and operational challenges. us to decide upon the appropriate action to take The Cooperative Initiatives team is available to assist SAS credit unions with an operational toward our desired outcomes. I also appreciate assessment and help develop a plan of action. The team is continuing to develop resources the organized hikes to Washington, D.C. on a targeted to the needs of SAS credit unions and want both League InfoSight and the SAS Toolkit more frequent basis than the annual GAC hike. to be the most trusted information sources.

I believe that in legislative environments like “Our relationship and confidence with the League of Southeastern Credit Unions only the current one, our frequent presence helps continues to grow stronger as we work together to ensure Tree Capital Credit Union’s unique maintain the needed rapport to garner the needs are met. Through their leadership and resources, our credit union gets the information legislators’ attention.” — Brad Green, President, and suggestions we need to help fine-tune our operations as we plan for our future.” — Kay Listerhill Credit Union, Muscle Shoals, AL Green, president/CEO, Tree Capital CU, Perry, FL With the most up-to-date credit union information anywhere, www.lscu.coop has seen more than 70,000 visitors with more than 225,000 pages viewed. The League’s proactive media relations efforts have put Alabama and Florida credit unions in front of nearly two million readers and viewers by placing more than 60 stories in the mainstream and credit union press. As a further value of membership, the League will launch a credit union image campaign in 2011 centering on the tagline, “We’re giving banking a better name.”

“I would have to say that any credit union that does not stop and look at www.lscu.coop is missing the boat. There is a lot of good information and services that might just save a credit union a lot of money toward their bottom line.” — Dan Jones, president/CEO, Metro North FCU, Jacksonville, FL

“Our collective voice is so much stronger than the voice of the individual credit union. There is a quote I love that goes: ‘You can’t whistle a symphony. It takes an orchestra to play it.’ It takes all credit unions working together to make it happen. The League of Southeastern Credit Unions and CUNA give us that avenue for cooperation.” — Jan Page, president/CEO, Community South Credit Union, Chipley, FL “As credit unions face an increasing number of challenges, it is more important than ever that we speak with a unified voice through cooperation and affiliation,” said La Pine. “Active participation as a League member is vital to the long-term success and strength of the credit union movement. Together, we can ensure an optimum operating environment for credit unions.” ■

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Moving Forward with Consolidation of Three League Foundations During the third quarter of 2010, the LSCU conducted an analysis of the future structure, philanthropic priorities, and fundraising for the three LSCU Foundations: the Alabama Credit Union League Educational Foundation, the CU Charitable Foundation, Inc. (Alabama), and the Florida Credit Union Foundation. The foundations have combined assets of more than $2.6 million. According to LSCU President & CEO Patrick La Pine, the overall goal is to improve operational efficiencies and to expand the reach and effectiveness of the foundations.

A summary of the research was presented to the LSCU Board of Directors in October. The foundations’ Board of Trustees approved the following steps: • Combine the three foundations into one foundation and name it the “Southeastern Credit Union Foundation.

• Consider using one of the current foundations as the legal structure for a new foundation; re-craft the bylaws and articles of incorporation.

• Develop a strategic plan for the foundation, which includes a comprehensive fundraising and marketing strategy.

• Create an executive director position for the foundation and hire a seasoned professional that would be accountable to the fundraising and grant-making priorities.

• Develop a focused mission with projects that will appeal to credit unions, members, staff, vendors, corporations, LSCU, and the communities in Alabama and Florida.

• Reconstitute the foundation Board of Trustees to include outside directors.

• Develop a foundation governance manual.

“Throughout the project, the research, interviews, and meetings articulated several major themes that are relevant and important to the mission of the new Foundation,” said La Pine. The strategic focus of the new foundation will be: • Disaster assistance and relief; • Need-based education scholarships for credit unions; • Financial literacy/education outreach; • Children’s Miracle Network (CMN) fundraising; • Grants to credit unions to develop and implement programs aimed at serving the under served/unbanked; and • Credit union industry-specific research.

“As we move forward with the development of the new Southeastern Credit Union Foundation, our goal is to always remain responsive to the needs and priorities of credit unions in Alabama and Florida,” said La Pine. “The Foundation can have a significant positive impact on the communities we serve.” ■

LSCU Small Credit Union Workshops Date: March 22, 2011 Time: 8:30am - 4:00pm EST City: Orlando, FL

Date: March 24, 2011 Time: 9:30am - 5:00pm EST City: Birmingham, AL

Contact: Adena Whitman, Director of Member Relations Phone: 866.231.0545 x2134 | Email: adena.whitman@lscu.coop For more information, visit www.lscu.coop.

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EDUCATION

League Education The LSCU has constructed a solid education calendar for 2011. The educational offerings range from convenient, cost-effective webinars that cover a variety of relevant topics to regulatory compliance workshops and State Governmental Affairs Conferences. These offerings will help members build and enhance the necessary skills needed to work efficiently and effectively.

The 2011 calendar was developed based on the results of the 2010 LSCU member and education surveys sent out earlier this year. And, at the top of the list, was the need for compliance training. The LSCUâ&#x20AC;&#x2122;s two signature conferences, AC&E and Development Conference, are scheduled along with the new additions of two state governmental affairs conferences and two Small Credit Union Workshops. Look for more information regarding each event coming soon on www.lscu.coop.

Listed below is the entire schedule of webinars and events. Events are listed in bold.

January 2011 5 Form 1099 Reporting: Third-Party Vendors Foreclosures, Debt Forgiveness & More 6 Business Continuity Planning for Credit Unions Under the NCUA Guidelines 11 Fundamentals of SBA Lending: Documenting, Closing & Funding the SBA Loan 12 IRA & HSA Annual Review & Update: 2010 Tax Year 18 SPECIAL EDITION: FinCEN New Chapter X BSA Rules Simplification: Effective March 1, 2011 19 12 Rules for Effective Social Media Policy 25 Asset Liability Management for Credit Unions 26 Mandatory Compliance Training Series: Red Flags for Identity Theft February 2011 2 Denied Loan Requirements: Consumer, Commercial & Residential 3 Replacing Lost Fee Income: New Revenue Alternatives 8 ACH Rules Update 10 Interpreting the Four Most Misunderstood Tax Forms: D, E, 4797, 6252 16 Bank Secrecy Act Training Workshop Jacksonville, FL 16 Mandatory Compliance Training Series: JobSpecific BSA Training for Frontline Staff 17 Preparing for SAFE Mortgage Act Registration & Compliance 23 Advanced Issues in Dormant Accounts & Unclaimed Property 27 CUNAâ&#x20AC;&#x2122;s Governmental Affairs Conference, Washington, D.C.

March 2011 2 When a Deposit Member Dies 8 Implementing Mortgage Reform & Anti-Predatory Lending: Effective July 21, 2011 9 Essential HR Record Keeping from Hiring to Firing 15-16 IRA Training Essentials & Advanced Birmingham, AL 16 Flood Compliance Update & Review: Including Interagency FAQs 22 LSCU Small Credit Union Workshop Orlando, FL 22 SafeCatch Robbery Suppression & Apprehension 23 Consumer Lending Series: Trust Documents in Lending 23-24 LSCU Council Workshop Birmingham, AL 24 LSCU Small Credit Union Workshop Birmingham, AL 30 Required Compliance Training for the Board & Senior Management 30-31 LSCU Governmental Affairs Conference Montgomery, AL April 2011 TBD Bank Secrecy Act Training Workshop Mobile, AL TBD Bank Secrecy Act Training Workshop Tampa, FL 5 When a Loan Member Dies 12 Firewalls: Compliance Guidelines & Authentication Rules 13 Impaired Loans & the ALLL 13-14 LSCU Governmental Affairs Conference Tallahassee, FL SIGNAL: Vol. 1, Issue 4

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EDUCATION

19 20 26-27 27 28

Unauthorized, Revocation & Stop Payment: Which One Do I Use? Mandatory Compliance Training Series: Regulation CC & Funds Availability Rules LSCU Chapter Leaders Conference Pensacola, FL The Supervisory Committee’s Role & Responsibilities Imaged Documents: What to Keep, What to Shred & What Holds Up in Court

May 2011 4 Consumer Lending Series: The Truth about Credit Scores for Lenders 5 Managing E-Sign, E-Statements & E-Disclosure 10 Improving Your Delinquency Numbers with Cost-Effective Collection Techniques 11 Line-by-Line Loan Review: What You Need to Know 18 Bank Secrecy Act Training Workshop Birmingham, AL 18 Proper Repossession, Notice & Sale of Non-Real Estate Collateral 19 RESPA Now: GFE & HUD-1 Compliance 25 Connecting the Dots: Regulations E & DD Compliance June 2011 2 Cash Flow on Commercial Loans: Emphasis on Small Businesses 7 Five Secrets to Successful Online Account Opening & Online Lending 8 Mandatory Compliance Training Series: Job-Specific BSA Training for Operations Staff 10-17 Southeast CUNA Management School Athens, GA 15 How to be a Notary without Being Sued 16 LSCU Council Workshops Orlando, FL 16-19 LSCU Annual Convention & Exposition Orlando, FL 21 Understanding the Differences Between Corporation & S Corporation Tax Returns 22 Resolving Debit Card Errors 29 Directors & Credit Risk July 2011 TBD Bank Secrecy Act Training Workshop Tuscaloosa, AL 6 High Yield Lending: Methods to Grow Your Loans & Increase Your Loan Yield 26

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LSCU Disaster Recovery Conference Pensacola, FL The Credit Committee’s Role & Responsibilities Completing & E-Filing the Currency Transaction Report Form: Line-by-Line Southeast Regional Director’s Conference Nashville, TN Payment System Convergence: What Type of Transaction is This?

Reg Z Requirements for Non-Mortgage Loans Best Practices for Board Package Preparation Consumer Lending Series: Identifying & Avoiding Lender Liability Pitfalls LSCU Supervisory Committee Conference Point Clear, AL

August 2011 TBD Bank Secrecy Act Training Workshop Palm Beach, FL 3 Safe Deposit Legal Issues 10 Reg Z Credit Card Act: It’s Not Just for Credit Cards 11 Opening Trust Accounts: Documentation, Authority, Liability 17 Consumer Lending Series: Hot Regulatory Issues in Consumer Lending 23 New Rules for Credit Union Websites: What to Do Now, Soon & Later 24 Mandatory Compliance Training Series: Bank Bribery Act & Regulation P – Consumer Privacy 30 New Security Officer Training

September 2011 TBD Regulatory Compliance Update Tallahassee, FL TBD LSCU Hike The Hill Washington DC TBD Southeast Credit Union Manager’s Association Annual Meeting Destin, FL 7 Wild Card: Hot Topic 8 Consumer Lending Series: Developing Global Cash Flow from Personal Tax Returns 13 Conducting Your Annual ACH Risk Assessment 14 Regulatory Compliance Update Birmingham, AL 14 Strategic Planning for the Board & Senior Management 21 Surviving Your FACTA Risk-Based Pricing Audit 27 Identifying & Managing Data Leakage & Hacking Threats 28 Mandatory Compliance Training Series: Fair Lending: Top Issues & Examiners’ Focus October 2011 TBD Bank Secrecy Act Training Workshop Muscle Shoals, AL TBD Bank Secrecy Act Training Workshop Tallahassee, FL 4 Responding to Official Demands for Member Funds 5 Problematic Practices in BSA Audits 12 Employee Leave: What You Need to Know about Vacation, Sick, Jury Duty, FMLA, Military & More 13 Mandatory Compliance Training Series: JobSpecific BSA Training for Lenders 18 Compliance from a Distance: Managing Risk of Third Parties & Outsourced Processes

25 Lending to Members of Modest Means (Including Payday Lending) 26 Opening Personal Accounts: Documentation, Compliance, Liability November 2011 1-4 LSCU Development Conference Point Clear, AL 2 Small Business Banking at Your Credit Union 9 Year-End Compliance Checklist 10 Mandatory Compliance Training Series: Bank Protection Act & Robbery Training for All Staff 15 Your Credit Union’s IRS Information Returns: What to Report & Ways to Ensure Accuracy 16 IRA Basics 29 Conducting Your 2011 ACH Audit 30 Consumer Lending Series: Legal Issues in Collections December 2011 6 Identifying Problem Assets 7 Auditing for SAFE Act Compliance 8 Critical IRA Year-End Issues 13 Protecting Your Credit Union When a Member Files Bankruptcy: Advanced Issues 14 The New Business Account Interview: Meeting Regulator & Credit Union Requirements 20 Paper Checks, Remote Capture, ACH & Electronic Transfers: Who is Liable? ■

DEFINING OUR FUTURE Save-the-Date!

June 16-19, 2011 JW Marriott Orlando Grand Lakes Hotel Orlando, FL In the spirit of unity and cooperation, LSCU continues to work with our member credit unions and industry leaders to help define what our future will be within this uncertain economic atmosphere. We are working together to create an environment where our credit unions will be successful in future endeavors. It is in this spirit of teamwork that we invite you to join us for the 2nd Annual LSCU Convention & Exposition. Visit www.lscuconvention.com for the most up-to-date information for this event. ■ SIGNAL: Vol. 1, Issue 4

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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 Fundraising Goal

Image Campaign Set to Debut in Spring 2011

After extensive media research, the Statewide Image Campaign will need $2.1 million across the 14 media markets in Alabama and Florida to reach the most potential members. To raise this money, the League is asking credit unions for a “fair share” contribution of $42 per million in assets. This is not an all or nothing contribution.

Credit unions are asked to consider contributing to the campaign what they feel they can afford.

The LSCU is currently in the process of putting creative together for a spring 2011 credit union image campaign. The need for such a campaign for credit unions in Alabama and Florida was no more evident than during the LSCU’s Development Conference in November.

Demographer Ken Gronbach, one of the general session speakers, talked about generations and how credit unions needed to market heavily to them. He said, “Don’t cut your marketing budgets, but add to them. This generation falls right in line with what credit unions stand for.”

To kick off the fundraising, the LSCU, through LEVERAGE, the League Service Corporation, is contributing $100,000. Also, contributing to the campaign is the Alabama Credit Union Service Centers (CUSC). CUSC and FCUSS will also contribute $25,000 each. This will take care of most of the creative so nearly all of the money raised by participating credit unions will stay in their respective media markets. The dues packet, mailed out in December, contains a line item for 2011 Voluntary Statewide Image Campaign Contribution which

In August, the LSCU, with the recommendation from the Statewide Image Campaign Task Force, retained Scout Branding Company of Birmingham as the ad agency for this project. Scout developed the logo/tagline “Credit Unions: We’re giving banking a better name” around which the campaign creative will be centered.

The logo incorporates silhouettes of people within “credit union” to represent that credit unions are memberowned. The term “banking” in the tagline is used as a generic term for “doing business” in a financial institution and not as an attack on banks.

In 2007, the Florida Image Task Force commissioned research to find the best way to reach potential members.

After updating the research in 2010, the use of “banking” is a means to let prospective members know that credit unions are an alternative to banks. With that in mind, the goals of the campaign are to grow membership, explain the credit union difference, and show that credit unions are modern, unique, and virtually anyone can join.

The creative for the campaign utilizes a landing website, TV, radio, online ads, billboards, and public relations, allowing the creative to be flexible for the 14 different media markets in both states. A campaign across this many media markets (with five in the Top 40 in the country) will be daunting. However, the money raised in each chapter will stay and be spent in each chapter’s respective media markets. Therefore, credit unions know their money is reaching their potential members.

includes a suggested contribution amount. The amount is based on a “fair share” formula of $42 per million in assets for each credit union and is strictly voluntary. The money will be collected in January and February with plans to launch the campaign in late March or early April.

This is a large undertaking, considering the economic climate, and it continues to be the best time for credit unions to collectively advertise that they are a better financial institution than their competitors. At the Development Conference, Richard Gronbach, general session speaker and demographer, told attendees, “the sentiment toward banks is still very negative and consumers want to find a financial institution they believe in.” Now is the right time for credit unions to stand up and During the Development Conference, Kenneth Gronbach let potential members know that a states that now is the time for credit unions to stand up financial institution exists with their and let potential members know they operate with their best interest in mind. best interest in mind.

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

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NEWS

League News 2010 LSCU Development Conference The LSCU Development Conference was held on November 3-5. More than 170 credit union staff and volunteers attended at the Grand Hotel Marriott Resort, Golf, & Spa in Point Clear, AL. The conference featured a number of thought-provoking speakers, relevant education sessions, over 30 exhibitors in the exhibit hall, and plenty of networking time for credit unions.

Among the speakers were LSCU President/CEO Patrick La Pine, NCUA Region III Director Herb Yolles, demographer Ken Gronbach, author Richard Hadden, and CUNA SVP, Political Affairs Richard Gose.

The education sessions were standing room only in many cases. Among the most talked about sessions were Risk Loan Net Income, Brand Camp for SAS CUs, and Protecting Member Information and Your Money.

The 2011 LSCU Development Conference will return to Point Clear, AL. Mark your calendars to attend next year November 1-4. ■

Keynote Speaker Kenneth Gronbach during afternoon general session.

LSCU Development Conference exhibit hall networking.

Keynote Speaker Richard Hadden signed books after the closing general session.

Credit Unions Meet with Costa Rican President The LSCU, along with five credit unions, spent a few days in Costa Rica during November addressing the government, working with credit unions to improve operations and addressing areas where the credit union movement can improve in the country. The League (initially as the Alabama Credit Union League) has been partnered with Costa Rica since 2005 through the World Council of Credit Union’s International Partnerships Program.

The LSCU contingent met with members of the government including Costa Rican President Laura Chinchilla Miranda and the equivalent of the Speaker of the House. Chinchilla, who addressed the group in English, thanked credit unions for their place in the economy.

Group with Laura Chinchilla Miranda, Costa Rica has 76 credit unions with 600,000 members, however only 31 are regulated. Credit unions president of Costa Rica. with $1 million in assets are the only ones regulated. Credit unions also are the only “banking” component without government deposit backing. State banks are backed by the government while private banks have a fund of roughly $600,000.

The credit union participants included Joe Melbourne, CEO of CFE FCU in Lake Mary, FL; Andy Price, general counsel for Florida Commerce CU in Tallahassee; David Southall, CEO of Innovations FCU in Panama City; Gina Turner, AVP of Operations and Branch Administration at Alabama Teachers CU Gadsden; Peter Alvarez, Hispanic Program Manager for Redstone FCU in Huntsville; and LSCU VP, Cooperative Initiatives Laura Vann. ■ 30

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LEVERAGE Preparing for 2011: Riding the Economic Roller Coaster Day-to-day it seems that there is an everlasting roller coaster in the market place. The economy begins to show signs of turning around, then a loop comes along and it drops again. As the roller coaster ride takes a steady course, more jobs are created, and then suddenly, it veers to the left with two twists and unemployment drops again.

As contradicting as it may be, the only thing to focus on is how to ride the roller coaster, as well as Mary Elicia Del Santo how to persevere and succeed during 2011.

VP, Business Development LEVERAGE understands the roller coaster in todayâ&#x20AC;&#x2122;s marketplace. Truth is, we are all on the 866.231.0545 same ride. There are no promises of when things will improve, but with products and services that me.delsanto@myleverage.com streamline processes and save money around every turn, credit unions will have the tools they need to www.myleverage.com perform well in any economic state.

As you are preparing to conduct business in 2011, look closely at the bottom line. Are you taking advantage of every opportunity to save money? Is your bottom line where you want it to be? The roller coaster has been twisting and turning for a while and members expect more from their financial institutions. To exceed expectations, credit unions need to be in the best financial position to serve their members, strengthening the bottom line by keeping costs down, maximizing revenues, and streamlining operations..

LEVERAGE offers several products and services designed to strengthen the bottom line. Strategic buying programs allow credit unions to collaborate on purchases and encourage bidding amongst vendors that result in unparalleled savings on commodities such as ATMs, armored car services, janitorial services, and more. Additional revenue-generating programs put dollars in your pocket while offering valuable discounts to members. And, a streamlined remarketing process program gets the most return on repossessions in the industry.

Credit union members did not join a credit union for a roller coaster ride. Members want to bank with confidence, and LEVERAGE products and services allow credit union staff to focus on member needs, listen to their concerns, and better serve them for the future.

To learn more about LEVERAGE products and services, visit www.myleverage.com or contact a Business Development Consultant consult@myleverage.com. â&#x2013;

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Product News Purchasing Strategies Save Credit Unions 21 to 80 Percent through LEVERAGE ePurchasing Event The September ePurchasing event highlighted one of the most successful and strategic events to date for the LEVERAGE ePurchasing service. The event lasted 30 minutes past the scheduled 15 minutes as five armored car vendors aggressively competed for the business of seven different credit unions in a live “reverse auction” environment. Achieva, Georgia’s Own, Community First Credit Union of Florida, Ocala Community, City County Employees, Innovations, and GTE received bids ranging from 21 to 80 percent lower than their current cost for the upcoming contract year on their armored car services.

Through ePurchasing live auctions, vendors have to show the true value of their service if they want to have a chance to win a contract with a credit union. ePurchasing has become an ideal platform to automate the purchasing process and provide credit union management with the functionality to collect and analyze vendor information, including a vendor comparison on pricing and commodity functionality.

Contact Lori Vary, Director of ePurchasing, at lori.vary@myleverage.com for more information and/or to participate in an upcoming auction.

LEVERAGE’s HRx Recruits New CEO for a Tampa-Based Credit Union With the retirement of Dr. Tom Ness, long-time president & CEO of USF Federal Credit Union, HRx, the executive recruiting firm for LEVERAGE, worked with the credit union’s board of directors to recruit their new CEO, Rick Skaggs.

HRx uses a unique relationship-based recruiting process to determine whether a candidate is the right fit for the job, as well as the organization. Credit unions not only experience a positive return-on-investment, but also from hiring the right person.

At the end of September, the board hired Skaggs to successfully serve as the new face of the credit union. Rick previously served as the regional president of Consumer Credit Counseling Services where he contributed to growing the agency to a national provider, successfully making it the second largest non-profit credit counseling service in the nation. Prior to Consumer Credit Counseling Services, Rick was the EVP of Vista Federal Credit Union (now Partners FCU).

Chairman of the search committee for USF Federal Credit Union Willie Stokes said, “It has been great working with HRx and the professional approach brought to a very difficult time for those of us that entered this process as novices and will finalize it with a sense of confidence. The guidance, coaching, and calm analytical view of expectations and goals we received from HRx helped us make the right decision for our credit union.”

For more information on recruiting services, visit www.HRx.net.

More than $442,000 Additional Revenue for CUs on Sprint Program; Revenue Checks Presented In 2010, the Sprint Member Discount program generated more than $442,000 in non-interest income for the 56 participating credit unions from Alabama and Florida.

Leslie Norush, national business consultant with CU Solutions Group who manages the Sprint program, along with LEVERAGE’s Keith Hopkins and Scott Rosenthal recently presented Grow Financial CU and CFE FCU revenue checks generated through the Sprint program.

Since the program’s inception, there have been more than one million new Sprint activations from credit union members while they have saved more than $74 million. “The Sprint program is a great tool to help us grow and retain membership. The savings that our members can enjoy through this program adds additional value to their credit union membership,” said Allen Milliron, AVP, Business Development for Grow Financial FCU. The Sprint Member Discount program offers tremendous benefits to members and credit unions. The program is easy to set up and saves Sprint customers 10 percent on their monthly recurring cell phone charges as well as provides special equipment discounts and waved activations.

For more information, contact a 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 the 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 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

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

Finance & Administration Scott Morgan, x1110 SVP, Finance & Accounting scott.morgan@lscu.coop Angie Moyer, x1116 Director, Accounting angie.moyer@lscu.coop Susan Sungelo, x2153 CUSC Accountant susan.sungelo@lscu.coop

LEVERAGE Toll Free Number 866.231.0545 Marvin Garland, x1102 EVP & COO marvin.garland@myleverage.com Brooke Collins, x1050 Service Corporation Support Specialist brooke.collins@myleverage.com

Education Joy Breedlove, x2162 VP, Education joy.breedlove@lscu.coop

Mike Couey, x2136 Accounting Manager mike.couey@lscu.coop

Transactional Services Larry Rodriguez, x2169 VP, Transactional Services larry.rodriguez@myleverage.com

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

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

Janice Jordan, x2176 Director, Transactional Services janice.jordan@myleverage.com

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

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

Win Cooper, x2115 Sr. Transactional Services Specialist win.cooper@myleverage.com

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

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

Tameka Dukes, x2178 Shared Branching Manager tameka.dukes@lscu.coop

Cathy Cameron, x1054 Operations Assistant cathy.cameron@lscu.coop

Chris Dirmann, x1182 Director, Card Services chris.dirmann@myleverage.com

Sue McKenzie, x1124 Operations Assistant sue.mckenzie@lscu.coop

David Todd, x1198 Member Service Representative david.todd@myleverage.com

Liz Aperauch, x1142 Director, Human Resources liz.aperauch@lscu.coop

Robert Plant, x1194 Member Services Representative robert.plant@myleverage.com

Phillip Tyre, x1132 Director, Information Technology phillip.tyre@lscu.coop

Giles Paul, x1200 P/T File Clerk giles.paul@myleverage.com

William Ross, x1134 Information Technology Specialist william.ross@lscu.coop

Angela Harris, x1190 Card Services Manager angela.harris@myleverage.com

Governmental Affairs Will McCarty, x2137 SVP, Governmental Affairs 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 Shimansky, x1008 Association Services Support Specialist tracy.shimanski@lscu.coop

Adena Whitman, x2134 Director, Member Relations adena.whitman@lscu.coop

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

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

Product Development John Brumit, 1120 Director, Product Development john.brumit@myleverage.com

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

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

Melissa Hamner, x2132 Auditor melissa.hamner@myleverage.com Lynda Knox, x2135 Service Corporation Support Specialist lynda.knox@myleverage.com Kathy Reynolds, x2121 Auditor kathy.reynolds@myleverage.com Product Support Keith Hopkins, x1170 VP, Product Support keith.hopkins@myleverage.com Deirdre Rhodes, x1104 Product Support Manager deirdre.rhodes@myleverage.com Lisa Hammock, x1146 Director, HR Services/Executive Recruiter lisa.hammock@myleverage.com Jean Noel, x1188 Product Support Specialist jean.noel@myleverage.com Lori Vary, 941.747.9646 Director, ePurchasing lori.vary@myleverage.com Marketing April Banta, x1162 Director, Marketing april.brown@myleverage.com Detra White, x1156 Production Artist detra.white@myleverage.com Ashley Hanania, x1030 Marketing Coordinator ashley.hanania@myleverage.com

Dale Goode, x2177 Business Development Consultant dale.goode@myleverage.com Scott Rosenthall, x1160 Business Development Consultant scott.rosenthall@myleverage.com Anita Stoumbelis, x1140 Business Development Consultant anita.stoumbelis@lmyleverage.com Richard Abt, x1152 Account Manager richard.abt@myleverage.com

PARTNERS CitiFinancial Auto Solve out-of-area repossession needs with experts dedicated to providing credit unions with the most up-to-date information including, state laws, FDCPA laws and regulations, and the newest tracking software.

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.

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.

Transworld Systems Across-the-board collections solutions with an emphasis on collecting negative share draft accounts.

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.

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

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.

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SIGNAL MAGAZINE 3773 COMMONWEALTH BOULEVARD TALLAHASSEE FL 32303

Upcoming Conferences CUNA Governmental Affairs Conference February 27 - March 3, 2011 Washington, D.C.

LSCU Small Credit Union Workshop March 24, 2011 Birmingham, AL

LSCU Governmental Affairs Conference April 13-14, 2011 Tallahassee, FL

IRA Training Essentials & Advanced March 15-16, 2011 Birmingham, AL

LSCU Governmental Affairs Conference March 30-31, 2011 Montgomery, AL

LSCU Chapter Leaders Conference April 26-27, 2011 Pensacola, FL

LSCU Small Credit Union Workshop March 22, 2011 Orlando, FL

Bank Secrecy Act Training Workshop April TBD Mobile, AL

Bank Secrecy Act Training Workshop May 18, 2011 Birmingham, AL

LSCU Councils Workshop March 23-24, 2011 Orlando, FL

Bank Secrecy Act Training Workshop April TBD Tampa, FL