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2013 GAC Briefing Book

LSCU Special Events Sunday, February 24, 5:00 pm - 6:30 pm Welcome Reception Hospitality Suite | Penn Quarter Room Grand Hyatt Washington Tuesday, February 26, 5:30 pm – 6:30 pm Presentation of Lawmaker of the Year Awards Hospitality Suite | Penn Quarter Room Grand Hyatt Washington

February 24, 2013 Dear CUNA GAC Attendee: On behalf of the League of Southeastern Credit Unions (LSCU), I would like to welcome you to the 2013 CUNA Governmental Affairs Conference (GAC). This event is our industry’s premier federal advocacy gathering, and the dedication of credit union leaders, such as you, makes this important grassroots lobbying event possible.

The 2013 CUNA GAC offers a great line-up of speakers and events. Our General Session speakers include Speaker of the House John Boehner, House Financial Services Chairman Emeritus Spencer Bachus of AL, NCUA Chair Debbie Matz, plus notable speakers including former award-winning journalist Jean Chatzky, famed newsman Tom Brokaw, and a point/counterpoint featuring former Mississippi Governor Haley Barbour and former Democratic National Committee Chairman Terry McAuliffe.

In addition to the speakers, there are numerous break-out sessions on important and timely topics. The LSCU has arranged receptions for our attendees on Sunday and Tuesday evenings in the Penn Quarter Room of the Grand Hyatt Hotel. These events are a great opportunity to catch up with friends and colleagues, meet new ones, and network among credit union and system partners from our two states. Tuesday evening’s reception will feature Congressmen Jo Bonner (AL) and Bill Posey (FL) who will be receiving the 2012 LSCU Federal Lawmaker of the Year awards for their respective states. We hope you can join us for this great event.

Of course, the main event of the CUNA GAC will be the Hill meetings with members of our Congressional delegations. We have a number of important legislative issues facing Congress, including our fight to maintain the credit union tax exemption, working toward increased MBL authority, and legislation allowing credit unions to accept secondary capital, as well as several other important issues. These Hill meetings are a critical part of our advocacy efforts so I hope everyone plans on participating.

Please take some time to look through the enclosed material. It contains a schedule of events, information on our Hill visits, legislative issues briefing materials, and other information to help you get the most out of your CUNA GAC experience. The Hill visit schedules will be available during the receptions on Sunday and Tuesday evenings. I look forward to seeing all of you in Washington, D.C. Please do not hesitate to contact me or any of the Governmental Affairs team if we can help you with your time at the CUNA GAC. Sincerely,

Patrick La Pine President/CEO

Convention Information

2013 CUNA GAC Schedule NOTE: All events listed are at the Washington Convention Center unless otherwise noted.

LSCU specific events are in bold.

Sunday, February 24, 2013 Noon - 8:30 pm

Conference Registration and Welcome Center Open

2:00 - 3:00 pm

First-time Attendee Orientation with Bill Cheney Small Credit Union Roundtable (for credit unions under $50 million in

3:00 - 5:00 pm assets) 5:00 – 6:30 pm

LSCU Welcome Reception – Penn Quarter Room, Grand Hyatt Hotel

7:00 - 9:00 pm

Exhibit Hall Grand Opening Reception

9:00 - 10:30 pm

Opening Concert with Abba the Concert Tribute Band

Monday, February 25, 2013 7:00 am - 4:15 pm

Conference Registration and Welcome Center Open

7:30 - 9:00 am

Exhibit Hall Open (continental breakfast) Opening General Session

9:00 - 11:30 am

CUNA's Annual General Meeting Keynote Presentation: Jean Chatzky

11:30 am - 1:30 pm

Exhibit Hall Open (lunch provided) General Session Legislative and Political Update

1:30 - 4:00 pm Keynote Presentation: Tom Brokaw The National Credit Union Foundation Dinner Presenting the Herb Wegner Memorial Awards 6:30 - 9:00 pm (Grand Hyatt separate ticketed event; Reception begins at 5:30 p.m.)

Tuesday, February 26, 2012 7:00 am - 5:00 pm

Conference Registration and Welcome Center Open

7:30 - 8:30 am

Exhibit Hall Open (continental breakfast) Meeting with Congresswoman Debbie Wasserman-Schultz BACKSTAGE, UP STAIRS, AT THE CONVENTION CENTER (staff will be on

8:15 – 8:30 am hand to direct. Congresswoman Wasserman-Schultz is scheduled to speak immediately after.

General Session 8:30 am - Noon

Keynote Presentation: Point/Counterpoint with Haley Barbour v. Terry McAuliffe

Noon - 1:45 pm

Exhibit Hall Open (lunch provided)

2:00 – 2:30 pm

Special General Session: Speaker of the House John Boehner

2:45 – 3:45 pm

Breakout Sessions  Taxation: A Two-Front War 

The Hot Exam Issues for 2013



Coping with Debit Cards in a Post-Durbin World



Managing the Change in Lending Rules



The Economy in the Year Ahead: Boom, Steady or Sputter?



Telling the CU Story so the Media Pays Attention

Breakout Sessions

4:00 – 5:00 pm



The 2012 MBL Fight: Lessons Learned



What’s Coming from the CFPB and NCUA on Consumer Protection



Obamacare: What Does it Mean for CUs?



Regulating Liquidity Risk



Building Powerful Alliances Across Co-op Sectors



A Primer on Supplemental Capital

5:00 – 6:00 pm

National Credit Union Administration Reception

5:00 - 6:30 pm

Exhibit Hall Closing Session LSCU Attendee Reception Lawmaker of the Year Awards Presentation

5:30 – 6:30 pm Penn Quarter Room, Grand Hyatt Hotel

9:00 - 10:30 pm

Late Night at the GAC (Renaissance Grand Ballroom)

Wednesday, February 27, 2013 8:00 am - Noon

Conference Registration and Welcome Center Open

8:00 am – 5:00 pm

Capitol Hill Visits as scheduled General Session

8:30 - 11:45 am * speakers to be announced Dora Maxwell, Louise Herring and Alphonse Desjardins Awards Reception 5:00 - 6:30 pm (by invitation at Renaissance) 7:00 - 11:00 pm

Conference Gala Reception and Dance (Renaissance)

Thursday, February 28, 2013 Capitol Hill Visits Continue as scheduled (if needed) 9:00 am – 12:00 pm Travel Home Safely

Please join the League of Southeastern Credit Unions for two receptions welcoming you to Washington, D.C. for the CUNA Governmental Affairs Conference

Sunday February 24, 2013 5:30 – 6:30 PM Penn Quarter Room Grand Hyatt And

Tuesday February 26, 2013 5:30 – 6:30 PM Penn Quarter Room Grand Hyatt Tuesday’s reception we will be honoring the 2012 Federal Lawmakers of the Year

Congressman Jo Bonner (AL – 1)

Congressman Bill Posey (FL – 8)

**Hill visit schedules will be available at the receptions**

League of Southeastern Credit Unions & Affiliates

2013 CUNA GAC On Site Contact Information Patrick La Pine CEO (850) 212-3160 (Mobile) Patrick.Lapine@lscu.coop

Jared Ross Vice President, Governmental Affairs (850) 590-6570 (Mobile) Jared.Ross@lscu.coop

Jennifer Martin Director of Legislative Affairs, FL (850) 321-2865 (Mobile) Jennifer.Martin@lscu.coop

Jason Cochran Director of Governmental Affairs, AL (205) 249-4478 (Mobile) Jason.Cochran@lscu.coop

Andy Gonzalez PAC & Grassroots Coordinator – FL (850) 345-7795 Andrew.Gonzalez@lscu.coop

Blake Westbrook PAC & Grassroots Coordinator – AL (205) 834-1266 Blake.Westbrook@lscu.coop

Credit Union National Association 601 Pennsylvania Ave NW, South Bldg Washington DC 20004-2601 Main: (202) 638-5777 Fax: (202) 638-7734

Grand Hyatt Washington 1000 H Street, NW Washington, DC 20001 Phone: (202) 582-1234 Fax: (202) 637-4781

2013 Alabama Attendees Alvis, Jo

Assistant Manager/COO

Acipco FCU

Birmingham

AL

Bass, Bill

Director

APCO ECU

BIRMINGHAM

AL

Bell, Kayce

Chief Operations Officer

Alabama CU

Tuscaloosa

AL

Boysen, Jane

President/CEO

Alabama Rural Electric CU

Montgomery

AL

Brackin, Chuck

Supervisory Committee

Army Aviation Center FCU

Daleville

AL

Burns, Wally

Director

Family Savings CU

Gadsden

AL

Chancellor, Billy

SVP-Collections/Lending

Alabama Telco CU

Birmingham

AL

Cochran, Jason

Director-Governmental Affairs

League of Southeastern CUs Birmingham

AL

Cunningham, Freida Branch Manager

Family Savings CU

Gadsden

AL

Davis, Mickey

Director

Army Aviation Center FCU

Daleville

AL

Fike, Ivan

VP-Information Technology

Listerhill CU

Muscle Shoals

AL

Forte, Linda

Director

DCH CU

Tuscaloosa

AL

Green, Brad

Pres/CEO/CUNA Director

Listerhill CU

Sheffield

AL

Hester, Larry

Director

Listerhill CU

Muscle Shoals

AL

Hill, Monte

President/CEO

Family Savings CU

Gadsden

AL

Jenkins, David

Compliance Officer

Family Savings FCU

Gadsden

AL

Jones, Gladys

Board Chair

Alabama CU

Tuscaloosa

AL

Jones, Kelley

Marketing Coordinator

Alabama CU

Tuscaloosa

AL

La Pine, Patrick

President/CEO

League of Southeastern CUs Tallahassee

FL

Letson, Frankie

Director-Branch Operations

Family Savings FCU

Gadsden

AL

Mashburn, Kristen

Director of Marketing

Listerhill CU

Muscle Shoals

AL

McGee, Joe

President/CEO

Legacy Community FCU

Birmingham

AL

McGlaughn, Jamie

AVP-Business Services

Alabama Teachers CU

Gadsden

AL

McLeroy, Ron

Director

Rocket City FCU

Huntsville

AL

Northrup, Michael

VP-Information Technology

America's First FCU

Birmingham

AL

Ragland Jr, Derrick

Vice President

APCO ECU

BIRMINGHAM

AL

Stabler, Alan

VP-Legal Counsel

America's First FCU

Birmingham

AL

Steele, Parker

Staff Attorney/General Counsel

Alabama Telco CU

Birmingham

AL

Steensma, Bob

President/CEO

Five Star CU

Dothan

AL

Swofford, Steve

President/CEO

Alabama CU

Tuscaloosa

AL

Thomas, Michael

Vice President

America's First FCU

Birmingham

AL

Varnon, Danny

Executive Vice President

Family Savings FCU

Gadsden

AL

Walker, Linda

Manager

Riverdale CU

Selma

AL

Wilkinson, Mark

Director

APCO ECU

BIRMINGHAM

AL

Williams, Tina

President

Mobile Educators CU

Mobile

AL

Wolter, Gary

Former CEO/CMG Board of Trustees League of Southeastern CUs Birmingham

AL

2013 Florida Attendees Adkins, Darrell

Director

Suncoast Schools FCU

Tampa

FL

Baldwin, Tim

President

San Antonio Citizens FCU

San Antonio

FL

Barwick, Annette

Director

Suncoast Schools FCU

Tampa

FL

Bass, Rose Marie

Director

GTE Financial

Tampa

FL

Beskovoyne, Bob

President/CEO

Martin FCU

Orlando

FL

Boyle, Bill

Supervisory Committee Chair

IBM Southeast EFCU

Boca Raton

FL

Braddock, Bill

President/CEO

121 Financial CU

Jacksonville

FL

Brancucci, Joe

President/CEO

GTE Financial

Tampa

FL

Bresko, Aaron

SVP/CLO

GTE Financial

Tampa

FL

Brock, David

CEO/President

Community Credit Union of Florida

Rockledge

FL

Burrell, Bonnie

Board Chair

Dade County FCU

Doral

FL

Cappelli, Laurie

Sr Vice President

Community Credit Union of Florida

Rockledge

FL

Chevere, Frankie

Director

Pompano Beach City ECU

Pompano Beach

FL

Cihota, John

Director

Pen Air FCU

Pensacola

FL

Clanton, Eddie

Director

121 Financial CU

Jacksonville

FL

Coarsey, Marsha

Director

Community First Credit Union

Jacksonville

FL

Coffey, John

SVP-Risk Management

Fairwinds CU

Orlando

FL

Darling, Linda

SVP/COO

Suncoast Schools FCU

Tampa

FL

Davis, Ken

VP-Lending

Pen Air FCU

Pensacola

FL

deLassus, Cindy

Board Treasurer

121 Financial CU

Jacksonville

FL

Dial, Debbi

SVP Technology/COO

Tyndall Federal Credit Union

Panama City

FL

Dietz, Ashley

Marketing Coordinator

City County CU

Margate

FL

Dooley, Lesli

VP-Organizational Development

Community Credit Union of Florida

Rockledge

FL

Dougherty, Kevin

Sr Vice President

CFE FCU

Lake Mary

FL

Fisher, Bob

President/CEO

Grow Financial FCU

Tampa

FL

Flynn, Pete

Supervisory Committee

Suncoast Schools FCU

Tampa

FL

Garcia, Laida

Pres/CEO/CUNA Director

Floridacentral CU

Tampa

FL

Garcia, Mario

Director

Dade County FCU

Doral

FL

Garland, Marvin

EVP/COO

League of Southeastern CUs

Tallahassee

FL

Gipson, Bob

Director

121 Financial CU

Jacksonville

FL

Golub, Larry

Director

CFE FCU

Lake Mary

FL

Gonzalez, Andy

League of Southeastern CUs

Tallahassee

FL

Goodwin, Kelly

Grassroots/Political Action Coordinator Director

Orlando FCU

Orlando

FL

Greene, Errol

Board 1st Vice Chair

CFE FCU

Lake Mary

FL

Greenlief, Billie

Board Chair

121 Financial CU

Jacksonville

FL

Halliburton, Sherod

Executive Vice President

Manatee Community FCU

Bradenton

FL

Harvin, Moses

Audit Committee

Community Credit Union of Florida

Rockledge

FL

Hasenbeck, Margaret Hennessey, Bill

VP-Accounting/Finance

Community Credit Union of Florida

Rockledge

FL

Director

Brightstar Credit

Sunrise

FL

Hewitt, Ted

Board Chair

VyStar Credit Union

Jacksonville

FL

Hill, David

VP-Technology

Community Credit Union of Florida

Rockledge

FL

Hines, Brad

Board Chair

GTE Financial

Tampa

FL

Hirabayashi, John

President/CEO

Community First Credit Union

Jacksonville

FL

Howard Jr, Willie

Director

Space Coast Credit Union

Melbourne

FL

Huskey, Dr Gary

Director

Suncoast Schools FCU

Tampa

FL

Johnson, Kevin

SVP-IT/CIO

Suncoast Schools FCU

Tampa

FL

Johnson, Maurice

Board Chair

Pen Air FCU

Pensacola

FL

Joseph, George

President/CEO

Dade County FCU

Doral

FL

Kelley, Jack

Board Chair

Community Credit Union of Florida

Rockledge

FL

Lister, Brent

First Florida Credit Union

Jacksonville

FL

Marsh, Pat

Pres/CEO/League Board Treasurer Director

Suncoast Schools FCU

Tampa

FL

Martin, Jennifer

Director-Legislative Affairs

League of Southeastern CUs

Tallahassee

FL

Maughon, Jerry

President/CEO

Okaloosa County Teachers FCU

Crestview

FL

McCall, Ann

Board Secretary

Pen Air FCU

Pensacola

FL

Melbourne Jr, Joe

President/CEO

CFE FCU

Lake Mary

FL

Metcalf, Chick

Board Chair

Orlando FCU

Orlando

FL

Miller, Kevin

SVP-General Counsel

CFE FCU

Lake Mary

FL

Moody, Penny

VP-Administration

Pen Air FCU

Pensacola

FL

Myers, Larry

Director

VyStar Credit Union

Jacksonville

FL

Neusaenger, John

President/CEO

Orlando FCU

Orlando

FL

Ode, Zamir

Supervisory Committee

Suncoast Schools FCU

Tampa

FL

Orr, Dr Dorothy

Board Chair

Brightstar Credit

Sunrise

FL

Ott Wood, Mary

President/CEO

Florida West Coast CU

Brandon

FL

Pedrero, Velia

Director

Suncoast Schools FCU

Tampa

FL

Petree, Betty

Board Vice Chair

Pen Air FCU

Pensacola

FL

Pickett Jr., Leonard

Director

121 Financial CU

Jacksonville

FL

Prior, Henry

Director

City County CU

Margate

FL

Prosser, Anice

Chief Administrative Officer

Envision CU

Tallahassee

FL

Ramsey, Stewart

President/CEO

Pen Air FCU

Pensacola

FL

Renderos, Julie

EVP/CFO

Suncoast Schools FCU

Tampa

FL

Reyes, Jace

President/CEO

Miami Postal Service CU

Miami

FL

Ross, Jared

VP-Governmental Affairs

League of Southeastern CUs

Tallahassee

FL

Sarne, Patty

SVP/COO

San Antonio Citizens FCU

San Antonio

FL

Satchel, Tony

Director

Suncoast Schools FCU

Tampa

FL

Shutes, Aletta

Director

Focus Credit Union

Chattahoochee

FL

Sorenson, Jim

Attorney

Community First CU

Jacksonville

FL

Storck, Meghan

Business Development Specialist

First Florida Credit Union

Jacksonville

FL

Strickland, Ann

Board Secretary

Miami Postal Service CU

Miami

FL

Thompson, Vickie

Director

GTE Financial

Tampa

FL

Tischer, Phil

SVP/COO

Fairwinds CU

Orlando

FL

Tobin, Larry

President/CEO

Fairwinds CU

Orlando

FL

Trumbach, Joe

Board Chair

Suncoast Schools FCU

Tampa

FL

Turner, Dr Susan

Director

Suncoast Schools FCU

Tampa

FL

Upperco Jr, John

Board Chair

Martin FCU

Orlando

FL

Vien, Gary

SVP-HR/Development

Suncoast Schools FCU

Tampa

FL

Walz, Judy

SVP-Marketing/Planning

VyStar Credit Union

Jacksonville

FL

Webster, Tina

Executive Secretary

Community Credit Union of Florida

Rockledge

FL

West, Terry

President/CEO

VyStar Credit Union

Jacksonville

FL

Westbrook, Blake

League of Southeastern CUs

Tallahassee

FL

Whitlock, Dr Earl

Grassroots/Political Action Coordinator Board Chair

Suncoast Schools FCU

Tampa

FL

Wilkinson, Annie

Executive Vice President

Dade County FCU

Doral

FL

Williams, Palmer

Attorney

Community First CU

Jacksonville

FL

Wood III, Art

President/CEO

Railroad and Industrial FCU

Tampa

FL

Yatros, Michael

Chief Executive Officer

Tallahassee

FL

Zells, John

EVP/CMO

Florida Credit Union Shared Services Inc IBM Southeast EFCU

Boca Raton

FL

Alabama Key Congressional Staff Senator Jeff Sessions 335 Russell Senate Office Building Washington, DC 20510 (202) 224-4124 Chief of Staff: Legislative Director: Financial Inst. Staffer: Scheduler:

Rick Dearborn Sandra Luss Graham Hixon Kate Hollis

Senator Richard Shelby 304 Russell Senate Office Building Washington, DC 20510 (202) 224-5744 Chief of Staff: Legislative Director: Financial Inst. Staffer: Scheduler:

Alan Hanson Kevin Kane Andrew Newton (on Committee Staff) Anne Caldwell

District 1 – Congressman Jo Bonner 2236 Rayburn House Office Building Washington DC 20515 (202) 225-4931 Chief of Staff: Alan Spencer Legislative Director: Mike Sharp Financial Inst. Staffer: Mike Sharp Scheduler: Errical Bryant District 2 – Congresswoman Martha Roby 414 Cannon House Office Building Washington, DC 20515 (202) 225-2901 Chief of Staff: Stephen Boyd Legislative Director: Jennifer Warren Financial Inst. Staffer: Frank Barnett Scheduler: Jessica Fuller District 3 – Congressman Mike Rogers 324 Cannon Office Building Washington DC 20515 (202) 225-3261 Chief of Staff: Marshall Macomber Legislative Director: Whitney Verett Financial Inst. Staffer : Forrest McConnell Scheduler: Jessica Jennings

District 4 – Congressman Robert Aderholt 2264 Rayburn House Office Building Washington, DC 20515 (202) 225-4876 Chief of Staff: Brian Bell Legislative Director: Mark Dawson Financial Inst. Staffer: Megan Medley Scheduler: Stephanie Brown District 5 – Congressman Mo Brooks 1641 Longworth House Office Building Washington, DC 20515 (202) 225-4801 Chief of Staff: Mark Pettitt Legislative Director: Stephen Davis Financial Inst. Staffer: Lauren Vandiver Scheduler: Kelly Zams District 6 – Congressman Spencer Bachus 2246 Rayburn House Office Building Washington, DC 20515 (202) 225-4921 Chief of Staff: Michael Staley (Personal Office) Legislative Director: Philip Swartzfager Financial Inst. Staffer: Warren Tryon, Jim Clinger (Handled through Multiple Committee Staff) Scheduler: Brett Williams District 7 – Congresswoman Terri Sewell 1133 Longworth House Office Building Washington, DC 20515 (202) 225-2665 Chief of Staff: Nichole Reynolds Legislative Director: Matt Reel Financial Inst. Staffer: Cachavious English Scheduler: Amanda Barnett

Florida Key Congressional Staff Senator Marco Rubio 317 Hart Senate Office Building Washington, DC 20510 (202) 224-3041 Chief of Staff: Legislative Director: Financial Inst. Staffer: Scheduler:

Cesar Conda Sally Canfield Scott Parkinson Robert Daniels

Senator Bill Nelson 716 Hart Senate Office Building Washington DC 20510 (202) 224-5274 Chief of Staff: Legislative Director: Financial Inst. Staffer: Scheduler:

Pete Mitchell Suzie Perez-Quinn Clint Odom Alicia Tighe

District 1 – Congressman Jeff Miller 2416 Rayburn House Office Building Washington, DC 20515 (202) 225-4136 Chief of Staff: Dan McFaul Legislative Director: Diane Cihota Financial Inst. Staffer: Gilbert Nelson/Jim Parslow Scheduler: Jessica Sunday District 2 – Congressman Steve Southerland 1229 Longworth House Office Building Washington, DC 20515 (202) 225-5235 Chief of Staff: Jonathan Hayes Legislative Director: Karen Williams Financial Inst. Staffer: Karen Williams Scheduler: Kathryn Whitehurst District 3 – Congressman Ted Yoho 511 Cannon House Office Building Washington, DC 20515 (202) 225-5744 Chief of Staff: Kat Cammack Legislative Director: Omar Raschid Financial Inst. Staffer: Vacant Scheduler: Rachel King

District 4 – Congressman Ander Crenshaw 440 Cannon Washington, DC 20515 (202) 225-2501 Chief of Staff: John Ariale Legislative Director: Erika Stiebel Priest Financial Inst. Staffer: Jennifer Debes Scheduler: Lynn Miller District 5 – Congresswoman Corrine Brown 2336 Rayburn House Office Building Washington, DC 20515 (202) 225-0123 Chief of Staff: Ronnie Simmons Legislative Director: Nick Martinelli Financial Inst. Staffer: Lee Footer Scheduler: Cathy Gass District 6 – Congressman Ron DeSantis 427 Cannon House Office Building Washington, DC 20515 (202) 225-2706 Chief of Staff: Justin Roth Legislative Director: Rachel Dresen Financial Inst. Staffer: Vacant Scheduler: Shira Lahav District 7 – Congressman John Mica 2187 Rayburn House Office Building Washington, DC 20515 (202) 225-4035 Chief of Staff: Wiley Deck Legislative Director: Brian Waldrip Financial Inst. Staffer: Kevan Stone Scheduler: Mary Klappa District 8 – Congressman Bill Posey 120 Cannon House Office Building Washington, DC 20515 (202) 225-3671 Chief of Staff: Stuart Burns Legislative Director: Marcus Brubaker Financial Inst. Staffer: Nicole McCleary Scheduler: Tim Convy District 9 – Congressman Alan Grayson 430 Cannon House Office Building District of Columbia 20515 (202) 225-9889 Chief of Staff: Julie Tagen Legislative Director: David Bagby Financial Inst. Staffer: Vacant Scheduler: Carla Coleman

District 10 – Congressman Daniel Webster 1039 Longworth House Office Building Washington, DC 20515 (202) 225-2176 Chief of Staff: Vacant Legislative Director: Frank Walker Financial Inst. Staffer: Elizabeth Kimball Scheduler: Elizabeth Tyrrell District 11 – Congressman Richard Nugent 1727 Longworth House Office Building Washington, DC 20515 (202) 2251002 Chief of Staff: Justin Grabelle Legislative Director: Katharine Troller Financial Inst. Staffer: Laura Cooper Scheduler: Rose Myers District 12 – Congressman Gus Bilirakis 2313 Rayburn House Office Building Washington, DC 20515 (202) 225-5755 Chief of Staff: David Peluso Legislative Director: Richard Hoar Financial Inst. Staffer: Richard Hoar Scheduler: Brian Prokes District 13 – Congressman Bill Young 2407 Rayburn House Office Building Washington, DC 20515 (202) 225-5961 Chief of Staff: Harry Glenn Legislative Director: Brad Stine Financial Inst. Staffer: Matthew Dickerson Scheduler: Christina Burmeister District 14 – Congresswoman Kathy Castor 205 Cannon House Office Building Washington, DC 20515 (202) 225-3376 Chief of Staff: Clay Phillips Legislative Director: Elizabeth Brown Financial Inst. Staffer: Elizabeth Brown Scheduler: Lara Hopkins District 15 – Congressman Dennis Ross 229 Cannon House Office Building Washington, DC 20515 (202) 225-1252 Chief of Staff: Anthony Fotie Legislative Director: Amie Woeber Financial Inst. Staffer: Amie Woeber Scheduler: Courtney Clem

District 16 – Congressman Vern Buchanan 2014 Rayburn House Office Building Washington, DC 20515 (202) 225-5015 Chief of Staff: Dave Karvelas Legislative Director: Shane Lieberman Financial Inst. Staffer: TJ Tatum Scheduler: Christina Aiuto District 17 – Congressman Tom Rooney 221 Cannon House Office Building Washington, DC 20515 (202) 225-5792 Chief of Staff: Brian Crawford Legislative Director: Jessica Moore Financial Inst. Staffer: Drew Shoemaker Scheduler: Michele Reinshuttle District 18 – Congressman Patrick Rooney 1517 Rayburn House Office Building Washington, DC 20515 (202) 225-2536 Chief of Staff: Eric Johnson Legislative Director: Christopher Fisher Financial Inst. Staffer: Vacant Scheduler: Tia Thompson District 19 – Congressman Trey Radel 1123 Longworth House Office Building Washington, DC 20515 (202) 225-2536 Chief of Staff: Jason Moon Legislative Director: Abby Dosoretz Financial Inst. Staffer: Greg Doaln Scheduler: Faye Powers District 20 – Congressman Alcee Hastings 2353 Rayburn House Office Building Washington, DC 20515 (202) 225-1313 Chief of Staff: Lale Mamaux Legislative Director: Vacant Financial Inst. Staffer: Vacant Scheduler: Barbara Harper District 21 – Congressman Ted Deutch 1024 Longworth House Office Building Washington, DC 20515 (202) 225-3001 Chief of Staff: Joshua Rogin Legislative Director: Ellen McLaren Financial Inst. Staffer: Joshua Lipman Scheduler: Alex Rocha

District 22 – Congresswoman Lois Frankel 1037 Longworth House Office Building Washington, DC 20515 (202) 225-4506 Chief of Staff: Jonathan Bray Legislative Director: James Cho Financial Inst. Staffer: Vacant Scheduler: Toby Watkins: Catherine Regan District 23 – Congresswoman Debbie Wasserman-Shultz 118 Cannon House Office Building Washington, DC 20515 (202) 225-7931 Chief of Staff: Tracie Pough Legislative Director: Coby Dolan Financial Inst. Staffer: Ian Rayder Scheduler: Hannah Lerner District 24 – Congresswoman Fredrica Wilson 208 Cannon House Office Building Washington, DC 20515 (202) 225-4506 Chief of Staff: Tom McDaniels Legislative Director: Justin Zorn Financial Inst. Staffer: Justin Zorn Scheduler: Toby Watkins: Toby Watkins District 25 – Congressman Mario Diaz-Balart 436 Cannon House Office Building Washington, DC 20515 (202) 225-4211 Chief of Staff: Cesar Gonzalez Legislative Director: Miguel Mendoza Financial Inst. Staffer: Ryan Canfield Scheduler: Kelly Dernnon District 26 – Congressman Joe Garcia 1440 Longworth House Office Building Washington, DC 20515 (202) 225-2778 Chief of Staff: Jeffrey Garcia Legislative Director: David Montes Financial Inst. Staffer: Vacant Scheduler: Vacant District 27 – Congresswoman Ileana Ros-Lehtinen 2206 Rayburn House Office Building Washington, DC 20515 (202) 225-3931 Chief of Staff: Art Estopinan Legislative Director: Joshua Salpeter Financial Inst. Staffer: Jay O’Calahaughn Scheduler: Christine Del Portillo

Contact C ontact LSCU D Director, Legislative Affairs (FL) Jennifer Martin at 866.231.0545 ext. 1150 or Director, Governmental Affairs (AL) Jason Cochran at ext. 2159.

Register at www.lscu.coop/Education/Events-Calendar

Alabama State GAC April 9 - 10, 2013 Tuesday - Wednesday Embassy Suites Hotel - Montgomery, AL

Florida State GAC March 19 - 20, 2013 Tuesday - Wednesday Governors Club - Tallahassee, FL

League of Southeastern Credit Unions & Affiliates

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Key Contact Form

There are thousands of industries, advocacy groups, lobbyists, and political operatives all vying for attention from lawmakers and candidates. All make contact at some level and most contribute to their campaigns. The industries and groups that truly distinguish themselves and become of key importance to a lawmaker or candidate are the ones that have developed a relationship. There are multiple levels of the “Sphere of Influence” that individuals may have with lawmakers. It ranges from the bottom, those who don’t even vote, to the top level which is comprised of the lawmakers personal inner-circle; his family and personal friends. Within your credit union you, someone on your staff or your Board of Directors, may already have someone who has a personal relationship with an elected official. By gathering this information, the League will be able to be even more effective in our lobbying efforts.

Name: Credit Union: Email/Phone: Lawmaker’s Name:

How do you know your lawmaker? (church, school, golf, etc.)

How do you contact your lawmaker? (via email, cell phone, home phone, office phone, etc.)

Are you willing to serve as a key contact person for LSCU?

Y

N

Please return this form to Jordan Burroughs at jordan.burroughs@lscu.coop or fax to 850-558-1109.

Hill Meeting Briefing Materials

HIKE THE HILL CONGRESSIONAL MEETING OUTLINE About Credit Unions Credit unions are the best way for consumers to conduct their financial services, yet continue to face the crisis of creeping complexity with regards to increasing regulatory burdens.  Credit unions benefit everyone –whether a member of a credit union or not.  Credit union members save over $6 billion each year by doing business with their credit union as opposed to a bank, through lower fees and interest rates and higher returns on deposits. Bank customers benefit, as well, to the tune of $2 billion because credit unions are in the marketplace. This means that as a result of credit unions existing in the United States, consumers save over $8 billion each year.  The not-for-profit credit union governance model relies on one member, one vote. Unlike banks, credit unions exist to serve their members, not investors.  Credit unions weathered the financial crisis well, but are now challenged by statutory restrictions, regulatory burdens and inconsistent examination practices. o A statutory cap on business lending means that $13 billion that could be loaned to small businesses sits idle. o A restrictive capital definition limits a credit union’s ability to weather an unexpected influx in deposits and to build capital for tough times. o 19 regulations have been transferred from various Federal agencies to the CFPB; and, the number of rules the CFPB could promulgate may be much higher as a result of the Dodd-Frank Act and other regulatory requirements. o In addition, NCUA has six proposals pending which include: loan participations, troubled debt restructurings, CUSOs, liquidity, RegFlex, and derivatives.

Credit Union Value Proposition There is no hiding the fact that the Federal government faces a significant budget crisis and that tax reform is on the horizon. While in your meetings you may be faced with staffers that do not understand the need for our tax exemption status. It is important to relay these following facts.  Credit unions are exempt from Federal and most State income taxes because they are member-owned, democratically operated, not-for-profit cooperatives, generally managed by volunteer boards of directors with a specified mission of promoting thrift and providing access to credit for provident purposes. This rationale for the tax-exempt status has been reaffirmed by Congress several times since 1937.  Credit unions already contribute by paying other types of taxes. o Credit union members pay taxes on dividends (interest) that their accounts earn. o Federal credit unions pay:  Real property taxes  Tangible personal property taxes (referred to as “ad valorem” taxes in some states)  Payroll taxes for their employees, and UBIT (unrelated business income tax).  Eliminating the credit union tax status eliminates credit unions. It is that simple.  If credit unions are taxed, there is no incentive for credit unions to remain not-for-profit; the large credit unions would likely convert to banks; the small credit unions would likely liquidate; and our economy will lose the only sector of the financial industry that is not driven by profit, but rather driven by a dedication to serving its members.

Prepared by CUNA Legislative Affairs

Regulatory Burden Regulatory burden is something that every financial institution faces. The burden of complying with ever-changing and ever-increasing regulatory requirements is particularly onerous for smaller institutions like credit unions.  Most of the costs of compliance do not vary by size, and therefore proportionately are a much greater burden for smaller as opposed to larger institutions.  Regulatory burden is of particular significance to credit unions. o Approximately 1,000 credit unions operate with one or fewer full time equivalent employees. o Nearly one-half of the nation’s 7,200 credit unions operate with five or fewer full-time equivalent employees.  Every dollar a credit union spends on complying with regulation is a dollar that is not used for the benefit of its members.  The CFPB has a number of rulemakings in progress which are mostly required by the Dodd-Frank Act. These rules cover issues ranging from mortgage loan disclosures, fees and practices; mortgage loan originator compensation; and international remittance transfers.  Credit unions did not cause the financial crisis and therefore should not be forced with the same crippling burden of new regulations as the banks who did.

Examination Fairness  





Credit unions strongly support fair and appropriate safety and soundness regulation and oversight to protect the financial resources of credit unions and their members and to minimize costs to the National Credit Union Share Insurance Fund (NCUSIF) borne by all federally insured credit unions.

Credit unions, as a whole, have concerns about the exam process. These include exam findings that are not currently codified in law, but rather on examiner preference. o [Please share your experiences with exams in your meetings to help members of Congress understand how the issue affects your credit unions.]

During the 112th Congress, Representatives Shelley Moore Capito (R-WV) and Carolyn Maloney (D-NY) introduced H.R. 346/S. 2160, the Financial Institution Examination Fairness and Reform Act. The bill would make available to financial institutions the information used to make decisions in their examination; codify certain examination policy guidance; establish an ombudsman at the Federal Financial Institution Examination Council (FFIEC) to which financial institutions could raise concerns with respect to their examination; and, establish an appeals process before an independent administrative law judge.

CUNA strongly supported H.R. 3461/S. 2160 and, while it is not a perfect piece of legislation, we viewed it as a firm step in the right direction toward ensuring the federal financial institution regulatory agencies (regulators) conduct fair exams which are consistent with the law and regulation and ensure safety and soundness.

Streamlining Privacy Notifications Every year credit unions are required to send millions of privacy notices to their members, most of which go unread and even unopened. Streamlining this ineffective regulation will reduce the amount of diverted time and resources that a credit union’s staff could be using for more important services to its members.  Please cosponsor the Eliminate Privacy Notice Confusion Act when it is introduced in the House, and urge support for the introduction of a companion bill in the Senate. This legislation has passed the House unanimously in each of the two previous Congresses.  Since 2001, credit unions have sent over 1 billion privacy notices to their members, averaging over 87,000,000 notices a year.  Credit unions must strictly follow an ever increasing number of rules and regulations. As a result, streamlining outdated or burdensome regulations is a very important aspect in providing regulatory relief.  Eliminating unnecessary mailings reinforces the emphasis credit unions place on ensuring their members are not bombarded with a flood of unnecessary mail – while ensuring at the same time the mail that members do receive is given greater attention.

Prepared by CUNA Legislative Affairs

Housing Finance Reform As Congress considers comprehensive housing finance reform, credit unions must continue to have access to the secondary mortgage market.  Credit unions have traditionally been portfolio lenders, typically selling approximately 45% of their originations. Credit unions rely on a functioning secondary mortgage market.  Over the last two years, credit unions have sold over half of their new loans to the secondary market.  The federal government has a very important role to ensure the secondary market operates efficiently, effectively and fairly for borrowers and lenders alike.  Credit unions have serious concerns about a world in which the secondary mortgage market is occupied by a handful of very large banks.

CUNA has testified as to principles important to consider in any comprehensive housing finance proposals and they include:  Equal Access: The secondary market must be open to lenders of all sizes on an equitable basis.  Strong Oversight and Supervision: There should be appropriate regulatory oversight to ensure safety and soundness, including strong capital requirements.  Durability: The new system should ensure that mortgage loans will continue to be made to qualified borrowers even in troubled economic times.  Predictable and Affordable Payments: The new system must include consumer access to products that provide for predictable, affordable mortgage payments to qualified borrowers.  Affordable Housing: The important role of government support for affordable housing should be a function separate from the responsibility of secondary market entities.  Transition: The transition to the new housing finance system must be reasonable and orderly.

Supplemental Capital Capital is king for financial institutions. As we learned in the financial crisis, it is in everyone’s interest for financial institutions to be well capitalized and to have access to capital. For credit unions, the only type of capital that counts is retained earnings. While credit unions remain healthy and well capitalized, the importance of having supplemental forms of capital available to credit unions has taken on increased importance.  Supplemental capital is a safety and soundness tool that acts as a buffer to absorb operating losses and asset write-downs during economic downturns.  Under current law, the more deposits a credit union accepts, the more its capital ratio declines. When capital ratios decline, credit unions could face prompt corrective action by their regulator, which is set out in statute, not regulation.  As more consumers leave other financial intuitions in favor of credit unions, some credit unions have had to turn away depositors as a direct result of this statutory effect.  This legislation would allow well-capitalized local and community-based credit unions to receive supplemental capital so they may continue to meet the needs of their growing membership.  Access to supplemental capital would be particularly useful as credit unions rebuild capital ratios following the worst financial crisis and recession of the past 80 years.  Representatives Peter King (R-NY) and Brad Sherman (D-CA) introduced legislation in the 112th Congress to allow credit unions to achieve supplemental capital in a manner that would not alter the cooperative nature of the credit union (e.g., by providing voting rights).

Prepared by CUNA Legislative Affairs

Credit Union Small Business Jobs Bill       

Enacting the Credit Union Small Business Jobs Bill is about helping small businesses.

Credit unions could lend up to $13 billion in the first year if the MBL cap was raised, helping America’s small businesses create over 140,000 new jobs. This is economic stimulus that does not cost the taxpayers a dime and does not increase the size of government.

Credit unions have been lending to their business-owning members for a century. In fact, there was no member business lending cap prior to 1998.

Credit unions have a more sound track record when it comes to business loans.

With a national loan average of $212,000 credit unions specialize in the type of loans small businesses need.

Banks have reduced lending to small businesses while credit unions have expanded credit to businesses.

We know the banks oppose this and that Congress doesn’t want to choose between friends – but Congress helped the banks already by making $30 billion of taxpayer funds available to help small businesses.

They’ve had their chance.

Prepared by CUNA Legislative Affairs

Straight TO THE POINT CREDIT UNIONS ARE THE BEST OPTION FOR CONSUMERS TO CONDUCT THEIR FINANCIAL SERVICES

CREDIT UNIONS:

THE BENEFITS OF USING A CREDIT UNION: ÊÊ Member owned ÊÊ Not-for-Profit ÊÊ Locally run ÊÊ Earnings returned to members in the form of lower interest on loans & higher interest earned ÊÊ Consumer-friendly pricing ÊÊ Money stays in the community Consumers Save Big At Credit Unions Average Annual Savings on Credit Union Loan Products Compared to Identical Products at Banking Institutions

$276.81

$180.95 $129.00

$73.28

$31.34

New Car: $30,000/ 5-Yr term

Used Car: $20,000/ 4-Yr term

Platinum Credit Card: $10,000

Home Equity: $50,000/80% LTV/ 15-Yr Term

Unsecured Personal Loan: $5,000/4-Yr. Term

Source: CUNA & Informa Research Services. Annual savings calculated as the difference in total annual payments using interest rate averages at each type of institution. Data as of 12/14/10

Members save big at credit unions because they have consumer-friendly pricing.

Credit Unions: Consumer Friendly Pricing Loan Interest Rate Averages

Credit Unions 12.25%

Banks

12.01% 10.94%

10.23%

6.68%

6.90%

6.05% 5.89% 4.27% 4.39%

Reward Credit Cards

4-Yr Used Auto

Source: Informa Research Services. Data as of Dec. 14, 2010

5-Yr New Auto

48 Month Personal

Home Equity 15 Yr

CREDIT UNIONS:

A WHOLE NEW WAY TO 'BANK' ÊÊ Financially safe & sound ÊÊ History of careful lending ÊÊ Continued to serve their communities and lend money when other financial institutions would not ÊÊ Reflect strong capital ratios ÊÊ Economically sound Credit Unions Are Careful Lenders Annualized Loan Losses as of September 2010

Business Loans

0.65%

Credit Unions

1.83%

Mortgage Loans

Banks

0.64% 1.92%

1.76%

Consumer Loans

6.42%

Total Loans

1.15% 2.59%

Source: FDIC, NCUA & CUNA E&S

Credit unions were there to help consumers during the financial crisis.

Credit Unions Have Continued to Serve Borrowers As Other Lenders Pulled Back Growth Since Beginning of Recession: 12/07 to 9/10

Banks Credit Unions 39.2%

14.4% 7.6%

-6.5% -10.0%

-18.4%

Real Estate Loans

Source: FDIC, NCUA & CUNA E&S

Business Loans

Total Loans

Consumers trust credit unions because they know credit unions are the real deal!

Membership - Nearly 92 million U.S. consumers are member-owners of, and receive all or part of their financial services from the nation's 7,598 credit unions.

Credit Unions are Insured Consumer deposits at nearly all credit unions are federally insured

by NCUA and credit unions have their own share-insurance fund.

Structure - Credit unions are democratically owned and controlled institutions that have no outside stockholders. After reserves are set aside, earnings are returned to members in the form of dividends on savings, lower loan rates and fees, or additional services.

4

'BANK' SMARTER!

Source: Datatrac, NCUA, and CUNA. (1)Assumes 1.9 credit union members per household.

Recent Comparative Interest Rates for Loan Products Credit Unions vs. Banking Institutions 16.00

13.83

14.00

12.00

11.58

11.32

11.84

10.16

10.05

Rates

10.00

8.00

5.73

6.00 5.04 4.00

3.55

4.86 3.53

3.23

3.51

3.36

3.86 3.78

4.23

3.13

2.00

0.00 60-month new 48-month used Unsecured loan 5-year 15-year fixed 30-year fixed Home equity / car (A paper) car (A paper) (A paper) adjustable rate rate 1st rate 1st 2nd mtg, 80% 1st mortgage, 0 mortgage, 0 pts mortgage, 0 pts LTV 0 pts pts Credit Unions

Banking Institutions

Credit card classic

Credit card gold

Recent Comparative Interest Rates for Savings Products Credit Unions vs. Banking Institutions 0.54

Retirement (IRA) accounts 0.32

0.73

1 Year certificate $10,000 balance Type of Savings Product

0.48

0.34

Money market accounts 0.17

0.18

Share draft checking, $5,000 balance 0.10

0.40

Regular savings, $1,000 balance 0.16

0.00

0.10

0.20

0.30

0.40 Rates

Credit Unions

Banking Institutions

0.50

0.60

0.70

0.80

Selected September 2012 Fees Credit Unions vs Banking Institutions $1,600.00

$1,361.00

$1,400.00

$1,200.00

$1,151.00

$1,000.00

$800.00

$600.00

$400.00

$200.00 $27.20

$29.51

$0.00 Share draft checking, NSF fee

$24.56

$34.18

Credit Banking Institutions CreditUnions cards, late fee

Mortgages, closing costs

Alabama Credit Union and Banking Instituion Third-Quarter 2012 Average Interest Rates and Fees Loan Products 60-month new car (A paper) 48-month used car (A paper) Unsecured loan (A paper) 5-year adjustable rate 1st mortgage, 0 pts 15-year fixed rate 1st mortgage, 0 pts 30-year fixed rate 1st mortgage, 0 pts Home equity / 2nd mtg, 80% LTV 0 pts Credit card - classic Credit card - gold

Average Rate at Credit Unions (%)

Average Rate at Banks (%)

Rate Difference vs. Banks (%)

3.55 3.53 10.05 3.23 3.36 3.86 4.23 11.58 10.16

5.04 5.73 11.32 3.51 3.13 3.78 4.86 13.83 11.84

-1.49 -2.21 -1.27 -0.27 0.23 0.08 -0.63 -2.25 -1.69

0.40 0.18 0.34 0.73 0.54

0.16 0.10 0.17 0.48 0.32

0.24 0.08 0.18 0.26 0.22

$27.20 $24.56 $1,151.00

$29.51 $34.18 $1,361.00

-$2.31 -$9.62 -$210.00

Savings Products Regular savings, $1,000 balance Share draft checking, $5,000 balance Money market accounts 1 Year certificate $10,000 balance Retirement (IRA) accounts

Fee Income Share draft checking, NSF fee Credit cards, late fee Mortgages, closing costs Source: Datatrac

Estimated Total Loan Rate Benefit Credit Unions vs Banking Institutions $50,000,000 $45,986,412

$40,000,000

$30,000,000

$20,000,000

$10,749,437

$9,636,200

$10,000,000 $5,904,277 $3,463,722

$3,384,187

$0 New car loans

-$10,000,000

Used car loans

-$402,094 Personal 5-year adjustable 15-year fixed rate 30-year fixed rate Home equity / -$2,351,065 unsecured loans rate 1st mortgage 1st mortgage 1st mortgage 2nd mortgage loans

Types of Loan Products

Credit cards

Estimated Total Savings Dividend Benefit Credit Unions vs. Banking Institutions $16,000,000 $14,271,960 $14,000,000

$12,000,000

$10,000,000 $8,226,309 $8,000,000

$6,000,000

$4,083,145

$3,745,672

$4,000,000

$2,000,000

$1,262,488

$0 Regular shares

Share draft checking

Money market accounts Type of Savings Product

Certificate accounts

Retirement (IRA) accounts

Estimated Alabama Credit Unions Financial Benefits Third-Quarter 2012

Loans

Avg. Balance at

Rate Difference vs. Alabama

Total Financial Benefit to Your

Credit Unions (1)

Banks (%) (2)

Members

New car loans 721,438,706 Used car loans 2,085,551,544 Personal unsecured loans 464,903,669 5-year adjustable rate 1st mortgage 1,259,535,235 15-year fixed rate 1st mortgage 1,022,202,199 30-year fixed rate 1st mortgage 502,616,891 Home equity / 2nd mortgage loans 541,469,904 Credit cards 457,776,738 Interest rebates in period Total CU member benefits arising from lower interest rates on loan products:

-1.49 -2.21 -1.27 -0.27 0.23 0.08 -0.63 -2.25

$10,749,437 $45,986,412 $5,904,277 $3,463,722 -$2,351,065 -$402,094 $3,384,187 $9,636,200 $105,629 $76,476,704

0.24 0.08 0.18 0.26 0.22

$14,271,960 $1,262,488 $4,083,145 $8,226,309 $3,745,672

Savings Regular shares Share draft checking Money market accounts Certificate accounts Retirement (IRA) accounts

5,946,649,918 1,578,109,463 2,333,225,822 3,226,003,572 1,742,172,816

Bonus dividends in period Total CU member benefit arising from higher interest rates on saving products:

$0 $31,589,573

Fee Income Total CU member benefit arising from fewer/lower fees:

$22,034,443

Total CU member benefit arising from interest rates on loan and savings products and lower fees:

$130,100,720

Total CU member benefit / member: Total CU member benefit / member household:

Source: Datatrac, NCUA, and CUNA (1) Average balance as of September 2012 and September 2011, according to the NCUA call report.; (2) Source for rates and fees: Datatrac;

$72 $137

Alabama Performance Profile Demographic Information Number of branches Total assets ($ mil) Total loans ($ mil) Total surplus funds ($ mil) Total savings ($ mil) Total members (thousands)

Sep 12 423 17,635 7,657 9,177 15,411 1,831

Sep 11 413 16,557 7,457 8,379 14,519 1,775

Growth Rates (Trailing 12 months) * Total assets Total loans Total surplus funds Total savings Total members

6.5 2.7 9.5 6.2 3.2

Earnings - Basis Pts. * Yield on total assets Dividend/interest cost of assets Fee & other income Operating expense Loss Provisions Net Income (ROA) after stabilization exp

334 77 147 301 27 77

381 101 147 340 29 58

Capital adequancy Net worth / assets

11.0

10.9

1.3 0.7 33 2.2

1.3 0.7 35 2.5

49.7 43.4 32.6 51.3

51.4 45.0 32.0 49.0

7.7 44.1 411 8,415 9,482 55,087

7.4 45.2 410 8,181 9,302 53,658

Asset quality * Delinquencies / loans Net chargeoffs / average loans Total borrower-bankruptcies Bankruptcies per 1000 members Asset/Liability Management Loans / savings Loans / assets Long-term assets / assets Core deposits/shares & borrowings Productivity Members/potentional members Borrowers/members Members/FTE Average shares/members ($) Average loan balances ($) Salary & Benefits/FTE

% % % % %

8.7 -2.7 21.4 8.8 1.4

% % % % %

* Earnings, net chargeoffs, and bankruptcies are year-to-date numbers annualized. Due to significant seasonal variation, balance sheet growth rates are for the trailing 12 months.

Source: Datatrac, NCUA, and CUNA. (1)Assumes 1.9 credit union members per household.

Recent Comparative Interest Rates for Loan Products Credit Unions vs. Banking Institutions 16.00 14.06 14.00 12.55 11.72 11.27

11.66

12.00

10.42

Rates

10.00

8.00

6.00 4.97

4.94 4.47 4.00

3.25

3.90 3.88

3.50

3.32 2.74

4.34

3.23 3.17

2.00

0.00 60-month new 48-month used Unsecured loan 5-year 15-year fixed 30-year fixed Home equity / car (A paper) car (A paper) (A paper) adjustable rate rate 1st rate 1st 2nd mtg, 80% 1st mortgage, 0 mortgage, 0 pts mortgage, 0 pts LTV 0 pts pts Credit Unions

Banking Institutions

Credit card classic

Credit card gold

Recent Comparative Interest Rates for Savings Products Credit Unions vs. Banking Institutions 0.36

Retirement (IRA) accounts 0.29

0.49

1 Year certificate $10,000 balance Type of Savings Product

0.43

0.23

Money market accounts 0.16

0.15

Share draft checking, $5,000 balance 0.11

0.19

Regular savings, $1,000 balance 0.15

0.00

0.10

0.20

0.30 Rates

Credit Unions

Banking Institutions

0.40

0.50

0.60

Selected September 2012 Fees Credit Unions vs Banking Institutions $1,600.00

$1,361.00

$1,400.00

$1,200.00

$1,151.00

$1,000.00

$800.00

$600.00

$400.00

$200.00 $27.20

$29.51

$0.00 Share draft checking, NSF fee

$24.56

$34.18

Credit Banking Institutions CreditUnions cards, late fee

Mortgages, closing costs

Florida Credit Union and Banking Instituion Third-Quarter 2012 Average Interest Rates and Fees Loan Products 60-month new car (A paper) 48-month used car (A paper) Unsecured loan (A paper) 5-year adjustable rate 1st mortgage, 0 pts 15-year fixed rate 1st mortgage, 0 pts 30-year fixed rate 1st mortgage, 0 pts Home equity / 2nd mtg, 80% LTV 0 pts Credit card - classic Credit card - gold

Average Rate at Credit Unions (%)

Average Rate at Banks (%)

Rate Difference vs. Banks (%)

3.25 3.50 10.42 2.74 3.23 3.90 4.34 12.55 11.27

4.47 4.94 11.66 3.32 3.17 3.88 4.97 14.06 11.72

-1.22 -1.44 -1.24 -0.58 0.06 0.02 -0.63 -1.51 -0.45

0.19 0.15 0.23 0.49 0.36

0.15 0.11 0.16 0.43 0.29

0.04 0.04 0.07 0.06 0.07

$27.20 $24.56 $1,151.00

$29.51 $34.18 $1,361.00

-$2.31 -$9.62 -$210.00

Savings Products Regular savings, $1,000 balance Share draft checking, $5,000 balance Money market accounts 1 Year certificate $10,000 balance Retirement (IRA) accounts

Fee Income Share draft checking, NSF fee Credit cards, late fee Mortgages, closing costs Source: Datatrac

Estimated Total Loan Rate Benefit Credit Unions vs Banking Institutions $80,000,000

$70,000,000

$66,961,358

$60,000,000

$50,000,000

$40,000,000

$39,013,637

$28,809,573

$30,000,000 $20,857,497 $18,390,219

$20,000,000 $11,578,418 $10,000,000

$0 New car loans -$10,000,000

Used car loans

Personal 5-year adjustable 15-year fixed rate 30-year fixed rate Home equity / -$1,070,475 -$1,631,454 unsecured loans rate 1st mortgage 1st mortgage 1st mortgage 2nd mortgage loans Types of Loan Products

Credit cards

Estimated Total Savings Dividend Benefit Credit Unions vs. Banking Institutions $6,000,000 $5,666,463

$5,063,535 $5,000,000

$4,297,972 $4,000,000

$3,000,000 $2,504,997 $1,991,848

$2,000,000

$1,000,000

$0 Regular shares

Share draft checking

Money market accounts Type of Savings Product

Certificate accounts

Retirement (IRA) accounts

Estimated Florida Credit Unions Financial Benefits Third-Quarter 2012

Loans

Avg. Balance at

Rate Difference vs. Florida

Total Financial Benefit to Your

Credit Unions (1)

Banks (%) (2)

Members

New car loans 3,210,998,889 Used car loans 4,650,094,316 Personal unsecured loans 937,523,719 5-year adjustable rate 1st mortgage 3,170,727,430 15-year fixed rate 1st mortgage 2,719,090,035 30-year fixed rate 1st mortgage 4,281,900,394 Home equity / 2nd mortgage loans 3,310,713,875 Credit cards 2,311,700,959 Interest rebates in period Total CU member benefits arising from lower interest rates on loan products:

-1.22 -1.44 -1.24 -0.58 0.06 0.02 -0.63 -1.51

$39,013,637 $66,961,358 $11,578,418 $18,390,219 -$1,631,454 -$1,070,475 $20,857,497 $28,809,573 $8,146 $182,916,919

0.04 0.04 0.07 0.06 0.07

$4,297,972 $1,991,848 $5,666,463 $5,063,535 $2,504,997

Savings Regular shares Share draft checking Money market accounts Certificate accounts Retirement (IRA) accounts

12,279,918,853 4,979,619,608 8,094,946,931 8,439,225,609 3,853,841,331

Bonus dividends in period Total CU member benefit arising from higher interest rates on saving products:

$0 $19,524,815

Fee Income Total CU member benefit arising from fewer/lower fees:

$60,843,346

Total CU member benefit arising from interest rates on loan and savings products and lower fees:

$263,285,080

Total CU member benefit / member: Total CU member benefit / member household:

Source: Datatrac, NCUA, and CUNA (1) Average balance as of September 2012 and September 2011, according to the NCUA call report.; (2) Source for rates and fees: Datatrac;

$57 $108

Florida Performance Profile Demographic Information Number of branches Total assets ($ mil) Total loans ($ mil) Total surplus funds ($ mil) Total savings ($ mil) Total members (thousands)

Sep 12 916 45,466 26,027 17,615 39,194 4,724

Sep 11 933 43,174 25,489 15,958 37,383 4,567

Growth Rates (Trailing 12 months) * Total assets Total loans Total surplus funds Total savings Total members

5.3 2.1 10.4 4.8 3.4

Earnings - Basis Pts. * Yield on total assets Dividend/interest cost of assets Fee & other income Operating expense Loss Provisions Net Income (ROA) after stabilization exp

369 62 189 357 60 79

413 81 173 386 92 27

Capital adequancy Net worth / assets

10.0

9.8

2.3 1.3 55 1.9

2.8 1.8 73 2.7

66.4 57.2 33.1 46.4

68.2 59.0 31.6 43.8

3.4 46.1 376 8,297 11,956 58,917

3.5 45.8 369 8,185 12,174 56,449

Asset quality * Delinquencies / loans Net chargeoffs / average loans Total borrower-bankruptcies Bankruptcies per 1000 members Asset/Liability Management Loans / savings Loans / assets Long-term assets / assets Core deposits/shares & borrowings Productivity Members/potentional members Borrowers/members Members/FTE Average shares/members ($) Average loan balances ($) Salary & Benefits/FTE

% % % % %

1.9 -4.9 14.7 2.2 -0.4

% % % % %

* Earnings, net chargeoffs, and bankruptcies are year-to-date numbers annualized. Due to significant seasonal variation, balance sheet growth rates are for the trailing 12 months.

The Credit Union Value Proposition Did You Know? 



Credit unions are exempt from Federal and most State income taxes because they are memberowned, democratically operated, not-for-profit cooperatives, generally managed by volunteer boards of directors with a specified mission of promoting thrift and providing access to credit for provident purposes. This rationale for the tax-exempt status has been reaffirmed by Congress several times since it was first enacted in 1937.

Even though credit unions are exempt from Federal income tax, they do pay other types of taxes.

Credit union members pay taxes on dividends (interest) that their accounts earn. Federal credit unions pay real property taxes, tangible personal property taxes (referred to as “ad valorem” taxes in some states), payroll taxes for their employees, and UBIT (unrelated business income tax).

Our Ask: 

Members of Congress should be outspoken in their support for the credit union tax status, and should not use the tax status as a mechanism to prevent improvements to the Federal Credit Union Act.

What are the Policy Implications?  



There is no hiding the fact that the Federal government faces a significant budget crisis and that tax reform is on the horizon. However, taxing of credit unions would be poor public policy, resulting in negative consequences for millions of savers and borrowers.

The credit union tax status still serves the purpose for which it was created: o Today, 96 million Americans use credit unions to conduct financial services – building savings and accessing credit. o During and following the financial crisis, Americans saw credit unions as a safe haven in the financial services sector -- more than 2 million Americans joined credit unions in 2012!

There is no doubt that consumers find tremendous value in credit unions, and that credit unions are filling the role Congress intended as an alternative to the for-profit banking sector.

The credit union tax status is good public policy: o Credit unions employ the preference to the benefit of all Americans -- credit union members and those who are not credit union members. While the Joint Committee on Taxation estimates that the credit union tax expenditure “costs” the federal government of $500 million annually, consumers benefit to the tune of $8 billion annually because credit unions are tax-exempt. o Credit union members see this benefit in terms of lower rates on loans, lower fees on services, and higher returns on deposits. o Non-members benefit as well because credit union competition helps keep bank savings rates higher and loan prices lower. For example, credit unions offering credit cards now charge lower interest rates than most other lenders (on average by two or three percentage points). Imagine how expensive other lenders would make credit cards or auto loans, if credit union competition did not exist!

What are the Implications for Credit Unions? 

Eliminating the credit union tax status eliminates credit unions. It is that simple. o Even though credit unions were affected by the financial crisis, none of the problems that precipitated the crisis were caused by credit unions. This is because the motives of credit unions and the incentive structures are different from for-profit financial institutions. o If credit unions are taxed, there is no incentive for credit unions to remain not-for-profit; the large credit unions would likely convert to banks; the small credit unions would likely liquidate; and our economy will lose the only sector of the financial industry that is not driven by profit, but rather driven by a dedication to serve its members. o Credit unions are people helping people; unlike the banks, they are not using people to generate profits.

Credit unions are the best way for consumers to conduct their financial services. Taxing credit unions takes this option away from consumers, and will drive up the cost of financial services for all.

CUNA Legislative Affairs

January 2013

Alabama Credit Union Fact Sheet ($ in Millions)

Institutions Chartered in Alabama Credit Unions Number of CUs Federally chartered State chartered

Banks/S&Ls/Savings Banks 124 60 64

Credit union market share of CU/Bank assets Average size Total assets

6.9% $134.7 $16,701.5

Members Membership/Population

1,783,943 37.1%

Estimated federal income tax

$35.0

Number of Banks

141

Subchapter S

43

Bank market share of CU/Bank assets Average size Total assets Subchapter S assets

93.1% $1,586.8 $223,737.3 $7,734.1

$5.3 $239.9 $71.4 $20.0

Estimated Sub S foregone federal tax revenue Estimated federal income tax Stockholder dividends Estimated directors fees

Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

0.75% 0.37% 3.38% 11.43%

Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

0.51% 0.17% 5.09% 13.77%

Alternative market share calculation Total deposits Market share of deposits

$14,649 14.8%

Alternative market share calculation Total deposits in institutions w/ branches in state Market share of deposits

$84,218 85.2%

National Credit Unions Number of CUs Federally chartered State chartered

Banks/S&Ls/Savings Banks 7,140 4,377 2,763

Credit union market share of CU/Bank assets Average size Total assets

6.6% $136.1 $972,019.7

Members Membership/Population

92,765,923 29.8%

Estimated federal income tax

Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

$1,707.2

0.62% 0.25% 3.43% 11.59%

Number of Banks

7,353

Subchapter S

2,310

Bank market share of CU/Bank assets Average size Total assets Subchapter S assets

Estimated Sub S foregone federal tax revenue Estimated federal income tax Stockholder dividends Estimated directors fees Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

Source: All financial data is December 2011. Average interest rates are as of December 31, 2011 source: Datatrac. Population taken from Census Bureau Estimates for July 2011.

Credit union data is from NCUA; Bank data is from FDIC, directors fees were estimated using the America's Community Bankers Compensation Survey Results.

Produced by CUNA's Economics & Statistics Department.

93.4% $1,884.4 $13,855,817.3 $509,916.0

$676.8 $47,806.0 $77,780.9 $1,117.3

0.45% 0.16% 4.89% 13.59%

Florida Credit Union Fact Sheet ($ in Millions)

Institutions Chartered in Florida Credit Unions Number of CUs Federally chartered State chartered

Banks/S&Ls/Savings Banks 165 91 74

Credit union market share of CU/Bank assets Average size Total assets

23.9% $262.9 $43,378.9

Members Membership/Population

4,606,873 24.2%

Estimated federal income tax

$45.5

Number of Banks

227

Subchapter S

43

Bank market share of CU/Bank assets Average size Total assets Subchapter S assets

76.1% $608.6 $138,150.9 $9,646.6

$0.2 $256.1 $168.7 $38.4

Estimated Sub S foregone federal tax revenue Estimated federal income tax Stockholder dividends Estimated directors fees

Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

0.51% 0.23% 3.15% 12.79%

Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

Alternative market share calculation Total deposits Market share of deposits

$37,503 8.4%

Alternative market share calculation Total deposits in institutions w/ branches in state Market share of deposits

0.45% 0.15% 4.11% 14.25%

$411,526 91.6%

National Credit Unions Number of CUs Federally chartered State chartered

Banks/S&Ls/Savings Banks 7,140 4,377 2,763

Credit union market share of CU/Bank assets Average size Total assets

6.6% $136.1 $972,019.7

Members Membership/Population

92,765,923 29.8%

Estimated federal income tax

Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

$1,707.2

0.62% 0.25% 3.43% 11.59%

Number of Banks

7,353

Subchapter S

2,310

Bank market share of CU/Bank assets Average size Total assets Subchapter S assets

Estimated Sub S foregone federal tax revenue Estimated federal income tax Stockholder dividends Estimated directors fees Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

Source: All financial data is December 2011. Average interest rates are as of December 31, 2011 source: Datatrac. Population taken from Census Bureau Estimates for July 2011.

Credit union data is from NCUA; Bank data is from FDIC, directors fees were estimated using the America's Community Bankers Compensation Survey Results.

Produced by CUNA's Economics & Statistics Department.

93.4% $1,884.4 $13,855,817.3 $509,916.0

$676.8 $47,806.0 $77,780.9 $1,117.3

0.45% 0.16% 4.89% 13.59%

2/14/13

Credit Unions Excluded from Ross Tax Reform Bill

Trusted News for Credit Union Leaders • February 14, 2013

Credit Union Times

This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, click the "Reprints" link at the top of any article.

Credit Unions Excluded from Ross Tax Reform Bill

BY HEATHER ANDERSON

January 15, 2013 • Reprints

After insisting credit unions had been accidentally included in his tax reform bill last year, Rep. Dennis Ross (R-Fla.) introduced a revised version Monday that is true to his word.

H.R. 243, the Bowles-Simpson Plan of Lowering America’s Debt Act, targets seven reforms recommended by the National Commission on Fiscal Responsibility and Reform to reduce spending, but credit unions are not among them.

“Representative Ross is a long-time supporter of credit unions," Brad Thaler, NAFCU’s vice president of legislative affairs said. "We appreciate his and his staff’s openness in discussing our concerns and following through on their commitment to not include the credit union tax exemption in this bill.”

Ross, a member of the House Financial Services Committee, was a co-sponsor last congress of member business lending and exam reform legislation, signing on early on both bills.

CUNA Senior Vice President of Legislative Affairs Ryan Donovan said Ross has a strong relationship with Florida credit unions, and is beginning his second term in the House. He’s a lawyer, Donovan said, and has served on the House Judiciary Committee.

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1/1

Regulatory Burden: The Crisis of Creeping Complexity Did You Know? 

 

The frequency with which new and revised regulations have been promulgated in recent years and the complexity of these requirements is staggering. o Credit unions were subjected to more than 120 regulatory changes from at least 15 different federal agencies between 2008 and 2012. o All of this before the Consumer Financial Protection Bureau (CFPB) completed its first rule.

While the pace of new rules is slowing in some areas, the CFPB has been very busy implementing Dodd-Frank Act requirements.

Regulatory burden is of particular significance to credit unions. o Approximately 1,000 credit unions operate with one or fewer fulltime equivalent employees. o Nearly one-half of the nation’s 7,200 credit unions operate with five or fewer full-time equivalent employees.

Our Ask:  Congress should continue to exercise diligent oversight over the CFPB to ensure that its rulemakings do not burden credit unions, which are already very well regulated. 

Congress should encourage the CFPB to aggressively use its authority to exempt credit unions from its rules when appropriate.

What are the Policy Issues?  The CFPB currently has a number of rulemakings in progress, including the remittance rule that was recently delayed.  These rulemakings, most of which are required under the Dodd-Frank Act, cover issues ranging from mortgage loan disclosures, fees and practices; mortgage loan originator compensation; and international remittance transfers. The agency is reviewing other areas such as prepaid cards, student loans, and overdraft protection plans.  A number of the Bureau’s rules will change regulations that have been revised just in the last four years. This means that the resources credit unions put towards complying with the previous changes will be lost as they dedicate resources to comply with the new changes.

What are the Implications for Credit Unions?  Every time a rule is changed, there are certain upfront costs that must be incurred: staff time and credit union resources must be applied in determining what is necessary in order to comply with the change; forms and disclosures must be changed; data processing systems must be reprogrammed; and staff must be retrained.  The burden of complying with ever-changing and ever-increasing regulatory requirements is particularly onerous for smaller institutions, like credit unions, because most of the costs of compliance do not vary by size, and therefore proportionately are a much greater burden for smaller as opposed to larger institutions.  Every dollar a credit union spends on complying with regulation is a dollar that is not used for the benefit of its members.  Credit unions did not cause the financial crisis; they did not engage in abusive activity.

They should be provided accommodation to continue to offer products as they have been for years, without the crippling burden of new regulations designed to reign in the abusers.

CUNA Legislative Affairs

January 2013

Streamlining Privacy Notifications Did you know?  

Every year credit unions are required to send millions of privacy notices to their members, most of which go unread and even unopened.

Since 2001, credit unions have sent over 1 billion privacy notices to their members, averaging over 87,000,000 notices a year.

Our Ask: 

Please cosponsor the Eliminate Privacy Notice Confusion Act when it is introduced in the House, and urge support for the introduction of a companion bill in the Senate. This legislation has passed the House unanimously in each of the two previous Congresses.

What are the policy issues?  Under current law, financial institutions are required to send an annual privacy notification on information sharing practices to its members or customers.  The Eliminate Privacy Notice Confusion Act would require a privacy notification be sent to a member or customer when the policy changes, rather than a redundant annual notice that is often overlooked.  The Eliminate Privacy Notice Confusion Act is a common sense regulatory relief measure that would make privacy notifications more meaningful for consumers.

What are the implications for credit unions and their members?  Credit unions must strictly follow an ever increasing number of rules and regulations. As a result, streamlining outdated or burdensome regulations is a very important aspect in providing regulatory relief.  Credit unions strive to provide the most effective and efficient services to their members, which include ensuring their members are aware of their privacy rights.  The Eliminate Privacy Notice Confusion Act would provide benefits for both credit unions and their members, by streamlining compliance burden and enhancing greater member awareness of the credit union’s privacy policies.  Streamlining this ineffective regulation will reduce the amount of diverted time and resources that a credit union’s staff could be using for more important services to its members.  Eliminating unnecessary mailings reinforces the emphasis credit unions place on ensuring their members are not bombarded with a flood of unnecessary mail – while ensuring at the same time the mail that members do receive is given greater attention.  This bill is a straightforward, common sense solution that reduces regulatory burden for credit unions. This legislation was supported by both Republican and Democratic leadership, and it was passed by voice vote in the House in both the 111th and the 112th Congress.

CUNA Legislative Affairs

January 2013

November 29, 2012 The Honorable Blaine Luetkemeyer Member of Congress 1740 Longworth House Office Building Washington, D.C. 20515

The Honorable Brad Sherman Member of Congress 2242 Rayburn House Office Building Washington, D.C. 20515

Dear Representatives Luetkemeyer and Sherman: On behalf of the Credit Union National Association (CUNA), I am writing in support of H.R. 5817, the Eliminate Privacy Notice Confusion Act. CUNA is the largest credit union advocacy organization in the United States, representing nearly 90% of America’s 7,300 state and federally chartered credit unions and their 94 million members. CUNA strongly supports H.R. 5817 and appreciates your leadership on this issue.

H.R. 5817 will eliminate a costly and unnecessary compliance burden for credit unions. The legislation provides an exception to the Gramm-Leach-Bliley annual privacy notification requirements if the financial institution’s privacy policy has not changed since it was last disseminated.

If this legislation becomes law, consumers currently receiving redundant annual privacy notices regardless of whether a policy has changed, will instead receive their notices when actual changes were made to their policies. The bill eliminates repetitive notices that are often ignored by consumers, and enhances consumer protection by ensuring that when a consumer receives a privacy notification, it has significance and is not redundant. The legislation also reduces future compliance burden for credit unions and other financial institutions.

On behalf of America’s credit unions, we appreciate your effort to eliminate unnecessary regulatory burdens for credit unions. We strongly support this legislation and look forward to its enactment.

Best regards,

Bill Cheney President & CEO

The Credit Union Small Business Jobs Act Did You Know?   

Credit unions have been making member-business loans (MBLs) since their inception in the early 1900s. In the first 90 years of their existence, there was no cap on business lending.

The current cap was imposed by Congress in the Credit Union Membership Access Act of 1998 (CUMAA) and limits most credit unions to lending no more than 12.25% of their assets to small businesses without any economic, safety and soundness or historical rationale.

Credit unions could lend an additional $13 billion to small businesses, helping them create over 140,000 new jobs in the first year after enactment if Congress increases the statutory cap on credit union business lending. This can be done without costing the taxpayers a dime and without increasing the size of government. Credit unions do not need taxpayer assistance to encourage them to do more business lending; credit unions only need authority from Congress.

Our Ask: 



Congress should enact the Credit Union Small Business Jobs Act which would allow wellcapitalized credit unions operating near the business lending cap to increase their business loan offerings to 27.5% of total assets, if they receive approval by the NCUA. This approach has been endorsed by the Obama administration.

What are the Policy Issues?   



America’s small businesses are the engine of growth of our nation’s economy. The recent financial crisis has affected all types of lending, resulting in a reduction in the availability of business credit.

America’s small businesses could create more jobs, if they are given access to more capital. Credit unions can provide them with $13 billion in additional capital.

Credit unions have demonstrated that they can do small business lending safely, and they stayed in the game when other lenders pulled back. o Credit union loan losses (net charge off rates) for business loans are much lower than those for business loans made by banks. o At a time when banks are withdrawing credit from America’s small businesses, credit unions have actually been expanding credit to small businesses. The credit unions with the most business lending experience are approaching the cap, threatening this growth.

Credit unions hold just 6.1% of all small business loans at depository institutions. It took CUs 100 years to reach this share of market. Even if CUs were to double their market share in the future that would still leave banks with an overwhelming 88% share.

What are the Implications for Small Businesses? 





The average credit union business loan is approximately 2012Business Loan Growth $212,000, meaning that credit unions are generally going to the (Source: FDIC & NCUA) underserved market of smaller-small businesses. Therefore, 51.05% when a credit union lends to one of its business-owning members, the capital can be used to keep the business competitive and hire additional employees – up to 140,000 people nationally.

1.10% Credit unions have a strong history of better lending, and will do better than the banks’ failed efforts to help small businesses, all Community Banks (< $1 Billion) Credit Unions without any cost to the taxpayer.

Currently, 500 credit unions are constrained by or actively managing the cap. The cap restricts some credit unions from helping small businesses participate in the economic recovery, it means turning away small businesses they have served through the crisis instead of providing additional lending to be a part of the recovery.

CUNA Legislative Affairs

January 2013

Over 500 credit unions are or will be bumping up against the cap in < 3 years.

CU lending ↑ 45% bank lending ↓15% during crisis.

Fact Checking the ABA Propaganda…

The banks miss the point.

The legislation is purposely focused on allowing credit unions with the most experience to continue to lend.

Because of the low cap, 2/3 of credit unions (those < $50M in assets) can’t currently justify investment in business lending.

STARVE? Banks control 95% of the market. Even if credit unions doubled lending, banks would still have 90%.

Multiple studies suggest this is not the case.*

Credit unions have been lending to small businesses for over 100 years.

Hearings have been held: Senate Banking 6/16/11 and House FSC 10/12/11

* See: U.S. Department of Treasury, Credit Union Member Business Lending, January 2001. p 5. and Basset, William F., Chosak Mary Beth, Discoll, John C., Egon Zakrajsek (All of the Division of Monetary Affairs, Federal Reserve Board.) Identifying the Macroeconomic Effects of Bank Lending Supply Shocks, December 2010. p. 18. Available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1758832.

Average CU business loan = $219,000

This issue is not new and it should not be controversial. Legislation to reform the cap has been introduced in each of the last four Congresses. It is only controversial because the banks don’t like it. Everyone else thinks it’s a no-brainer.

Setting the Record Straight… again.

Morph? They must mean “succeed.”

When banks succeed, shareholders get rich. When a credit union succeeds, it grows and continues to fully serve its members.

Credit unions have a mandate to serve their members and businesses at all income levels.

Big Commercial Loans? The average size of a credit union business loan is less than $219k.

Harm community banks? They control 95% of the small business lending market! Haven’t the banks been saying this would only affect a handful of credit unions?

A vote against S. 2231 is a vote against job creation.

Fair Share?

The banks that needed a $700 billion taxpayer bailout four years ago want to talk about fair share?

Credit unions did not need a bailout, and they use their tax status to benefit consumers and small businesses to the tune of $10 billion each year, in lower rates and fees, higher returns on deposit and better service. Even bank customers benefit from having credit unions in the market.

Wouldn’t the fiscal condition of the country be better today if 2,310 community banks weren’t using Subchapter S status to dramatically cut the tax obligations of a for-profit corporation?

More importantly, wouldn’t the economy be better off if more credit was available to small businesses?

Like credit unions, community banks provide important services to small businesses and consumers across the country. On Main Street, banks want to help create jobs just as much as credit unions do. But on K Street, banks are blocking the 140,000 jobs this bill could create.

It’s time to say NO to the ABA, and YES to job creation.

U.S. Credit Union Overview Member-Owned, Not-For-Profit, Financial Cooperatives As of September 2012. Sources: NCUA, CUNA.

Number of U.S. Credit Unions: Consumer Member-Owners: Assets: Loans: Consumer Savings: Capital to Assets:

7,029 95 million $1,026 billion $603 billion $881 billion 10%

Consumers Save Big at Credit Unions Business Loan Growth

Average Annual Savings on Credit Union Loan Products (Source: Informa, calculated as the difference in total payments using average interest rates)

From Start of Crisis to September 2012 (Sources: NCUA, FDIC, CUNA)

51.05% $219.43 $174.59

$161.50

1.10%

$26.00 -16.41% Bank Commercial Loans

Bank Small Business Loans

Credit Union MBLs

Growth is for period 12/07 to 9/12 excepting bank small business loan growth which is for 6/08 to 9/12. Prior to 2010 banks reported small business loans outstanding only at mid-year.

Much Smaller Delinquency Increases at Credit Unions Loan Delinquency Rates

New Car: $30,000/5 Yr Term

Platinum Credit Card: $10,000

Used Car: $20,000/4 Yr Term

Home Equity:$50,000/80% LTV/15 Yr Term

Credit Unions: A Record of Safe Lending Loan Charge-Offs - September 2012 (Annualized) (Source: FDIC, NCUA, CUNA Policy Analysis)

(Source: FDIC, NCUA, CUNA Policy Analysis) Source: FDIC, NCUA, and CUNA E&S. 2010 results are annualized 5.37% 4.87%

4.09%

0.72% Total Loans

1.15%

3.85% 0.57% Commerical Loans

0.55%

1.82%

1.76%

Credit Unions

1.60%

Banks

0.52%

1.18% Real Estate Loans

1.08%

Banks 2009

Credit Unions 2010

2011

Sep 2012

0.91% Consumer Loans

2.57%

Credit Union Member Business Lending Overview As of September 2012. Sources: FDIC, NCUA, CUNA.

National Overview Number of CUs with MBLs Total CU MBLs outstanding Average size of CU MBLs MBLs: % of Assets at offering CUs

2,261 $42,212,823,164 $212,335 5%

12 Month Loan Growth: Credit union MBLs* Community bank business loans

Alabama Number of CUs with MBLs Total CU MBLs outstanding Average size of CU MBLs MBLs: % of Assets at offering CUs

44 $457,343,789 $159,187 3%

6% -3%

*MBLs are the fastest-growing segment of CU loan portfolios

CU Business Lending: Safe & Sound

Average Asset Size of MBL CUs

Business Loan Asset Quality Comparisons

Those Near Cap Tend to be Larger CUs Excludes Grandfathered and Non Federally Insured and/or Low Income Designated CUs

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q3 2012 Avg. since '97

Net Chargeoffs Commercial Bank Credit Union Commercial & MBLs Industrial Loans 0.18% 0.28% 0.08% 0.43% 0.12% 0.57% 0.05% 0.01% 0.10% 1.43% 0.09% 1.76% 0.08% 1.26% 0.10% 0.50% 0.05% 0.27% 0.08% 0.30% 0.09% 0.52% 0.33% 1.01% 0.57% 2.62% 0.66% 1.75% 0.89% 0.89% 0.57% 0.55% 0.25%

Source: FDIC, NCUA, and CUNA E&S.

0.88%

MBLs as a % of Assets >0.0% to 5.0% 5.0% to 7.5% 7.5% to 10.0% 10.0% to 12.5% 12.5%+

Number of CUs 1,331 239 170 103 23

Average Asset Size $394,584,590 $495,607,020 $558,532,433 $463,407,954 $551,489,411

Unused Capacity Unused Capacity Under Current Cap If Cap = 27.5% $55,944,747,235 $136,036,601,846 $7,208,383,635 $25,272,020,488 $3,331,791,948 $17,811,745,273 $572,352,138 $7,851,332,575 $1,234,714,720

Source: NCUA, and CUNA E&S.

Many credit unions have not entered the MBL arena because the 12.25% cap prevents them from earning sufficient income to cover start-up and ongoing program costs.

Removing MBL 12.25% cap: * Will produce an estimated $14.5 billion in new MBLs in the first year New MBLs in the first year in your state: $137,729,672

* Will produce an estimated 158,000 new jobs using CEA job multiplier Number of new jobs in your state: 1,497 No cost to taxpayers

U.S. Credit Union Overview Member-Owned, Not-For-Profit, Financial Cooperatives As of September 2012. Sources: NCUA, CUNA.

Number of U.S. Credit Unions: Consumer Member-Owners: Assets: Loans: Consumer Savings: Capital to Assets:

7,029 95 million $1,026 billion $603 billion $881 billion 10%

Consumers Save Big at Credit Unions Business Loan Growth

Average Annual Savings on Credit Union Loan Products (Source: Informa, calculated as the difference in total payments using average interest rates)

From Start of Crisis to September 2012 (Sources: NCUA, FDIC, CUNA)

51.05% $219.43 $174.59

$161.50

1.10%

$26.00 -16.41% Bank Commercial Loans

Bank Small Business Loans

Credit Union MBLs

Growth is for period 12/07 to 9/12 excepting bank small business loan growth which is for 6/08 to 9/12. Prior to 2010 banks reported small business loans outstanding only at mid-year.

Much Smaller Delinquency Increases at Credit Unions Loan Delinquency Rates

New Car: $30,000/5 Yr Term

Platinum Credit Card: $10,000

Used Car: $20,000/4 Yr Term

Home Equity:$50,000/80% LTV/15 Yr Term

Credit Unions: A Record of Safe Lending Loan Charge-Offs - September 2012 (Annualized) (Source: FDIC, NCUA, CUNA Policy Analysis)

(Source: FDIC, NCUA, CUNA Policy Analysis) Source: FDIC, NCUA, and CUNA E&S. 2010 results are annualized 5.37% 4.87%

4.09%

0.72% Total Loans

1.15%

3.85% 0.57% Commerical Loans

0.55%

1.82%

1.76%

Credit Unions

1.60%

Banks

0.52%

1.18% Real Estate Loans

1.08%

Banks 2009

Credit Unions 2010

2011

Sep 2012

0.91% Consumer Loans

2.57%

Credit Union Member Business Lending Overview As of September 2012. Sources: FDIC, NCUA, CUNA.

National Overview Number of CUs with MBLs Total CU MBLs outstanding Average size of CU MBLs MBLs: % of Assets at offering CUs

2,261 $42,212,823,164 $212,335 5%

12 Month Loan Growth: Credit union MBLs* Community bank business loans

Florida Number of CUs with MBLs Total CU MBLs outstanding Average size of CU MBLs MBLs: % of Assets at offering CUs

71 $1,265,108,714 $283,085 3%

6% -3%

*MBLs are the fastest-growing segment of CU loan portfolios

CU Business Lending: Safe & Sound

Average Asset Size of MBL CUs

Business Loan Asset Quality Comparisons

Those Near Cap Tend to be Larger CUs Excludes Grandfathered and Non Federally Insured and/or Low Income Designated CUs

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q3 2012 Avg. since '97

Net Chargeoffs Commercial Bank Credit Union Commercial & MBLs Industrial Loans 0.18% 0.28% 0.08% 0.43% 0.12% 0.57% 0.05% 0.01% 0.10% 1.43% 0.09% 1.76% 0.08% 1.26% 0.10% 0.50% 0.05% 0.27% 0.08% 0.30% 0.09% 0.52% 0.33% 1.01% 0.57% 2.62% 0.66% 1.75% 0.89% 0.89% 0.57% 0.55% 0.25%

Source: FDIC, NCUA, and CUNA E&S.

0.88%

MBLs as a % of Assets >0.0% to 5.0% 5.0% to 7.5% 7.5% to 10.0% 10.0% to 12.5% 12.5%+

Number of CUs 1,331 239 170 103 23

Average Asset Size $394,584,590 $495,607,020 $558,532,433 $463,407,954 $551,489,411

Unused Capacity Unused Capacity Under Current Cap If Cap = 27.5% $55,944,747,235 $136,036,601,846 $7,208,383,635 $25,272,020,488 $3,331,791,948 $17,811,745,273 $572,352,138 $7,851,332,575 $1,234,714,720

Source: NCUA, and CUNA E&S.

Many credit unions have not entered the MBL arena because the 12.25% cap prevents them from earning sufficient income to cover start-up and ongoing program costs.

Removing MBL 12.25% cap: * Will produce an estimated $14.5 billion in new MBLs in the first year $640,800,838 New MBLs in the first year in your state:

* Will produce an estimated 158,000 new jobs using CEA job multiplier Number of new jobs in your state: 6,965 No cost to taxpayers

February 9, 2012 The Honorable Peter King Member of Congress United States House of Representatives Washington, DC 20515

The Honorable Brad Sherman Member of Congress United States House of Representatives Washington, DC 20515

Dear Representatives King and Sherman: On behalf of the Credit Union National Association (CUNA), I am writing in support of your legislation to clarify the National Credit Union Administration (NCUA) authority to improve credit union safety and soundness. CUNA is the largest credit union advocacy organization in the United States, representing nearly 90% of America’s 7,300 state and federally chartered credit unions and their 94 million members.

The lesson of the most recent financial crisis for financial institutions is that capital is king. Capital is also the first line of defense in protecting taxpayers from deposit insurance losses. It is in everyone’s best interest to have financial institutions that are well capitalized and able to weather whatever difficulties may occur.

Credit unions are the only financial institutions in the United States with capital requirements written into statute, and no ability to raise capital other than through retained earnings. While credit unions as a whole remain well capitalized, a number of credit unions are close to or past the prompt corrective action (PCA) triggers as a result of the financial crisis. For these credit unions and others, rebuilding capital ratios will be paramount in the coming years.

Your legislation would permit the NCUA Board to allow credit unions to accept other forms of capital, provided that it does not alter the cooperative ownership structure of credit unions. The legislation requires that this capital be uninsured and subordinate to other claims against the credit union. Further, the bill authorizes the NCUA to set maturity limits on this capital and restrict the ability to raise supplemental capital to credit unions which are sufficiently capitalized and well managed.

We believe your legislation would provide credit unions with appropriate ability to raise capital from sources other than retained earnings without putting in jeopardy the “one member, one vote” principle that is the bedrock of the credit union ownership structure. As credit unions emerge from the financial crisis, this legislation would improve the safety and soundness of credit unions by allowing them to develop a supplemental cushion to reduce risk to the National Credit Union Share Insurance Fund.

The Honorable Peter King The Honorable Brad Sherman February 9, 2012 Page Two On behalf of Americaâ&#x20AC;&#x2122;s credit unions and their 94 million members, thank you very much for introduced this legislation. We look forward to working with you to secure its enactment.

Best regards,

Bill Cheney President & CEO

The Need For Capital Reform Did You Know? 

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Credit unions remain the most highly regulated and restricted of all insured financial institutions.

By law – not regulation, as is the case for other insured depositories – credit unions must maintain a 7% net worth (or leverage) ratio in order to be considered “well capitalized.” The law also specifies that only retained earnings constitute net worth for credit unions.

Credit unions historically have had the lowest default/delinquency rates in virtually all categories of loans and have maintained average net worth ratios well in excess of those held by banks.

All other U.S. depository institutions and most credit unions in other countries are permitted various forms of alternate or supplemental capital.

The National Credit Union Administration supports allowing credit unions to access additional capital.

Our Ask: 

Congress should modify the definition of credit union net worth to include supplemental forms of capital for credit unions and allow the regulator to develop risk based capital standards for the purposes of prompt corrective action (PCA)

What are the Policy Implications? 

Capital is king for all financial institutions. As credit unions battered by the financial crisis recover in the coming few years, rebuilding capital ratios will be paramount.

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The recent financial crisis led to a substantial drop in the average credit union capital ratio – from 11.4% at the end of 2007 to 10.3% as of September 2012. At the beginning of the downturn, 90% of credit unions had net worth ratios of 9% or greater compared with approximately 75.4% of credit unions as of September 2012.

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While the credit union movement as a whole remains very well capitalized, a number of credit unions are close to or past the PCA triggers as a result of the financial crisis. These credit unions will need to raise capital at a time when the outlook for credit union net income – the source of retained earnings – is not particularly strong.

What are the Implications for Credit Unions? 

Long term influences on credit union net income are not promising. Net interest income, essentially the difference between what credit unions earn in interest on loans and investments and what they pay in interest and dividends on savings has been on a long-term downtrend caused by intense competition on both sides of the balance sheet. This pressure is unlikely to abate significantly going forward. In addition, interchange income, an important source of non-interest revenue, is under political pressure and is likely to diminish.

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Without access to supplemental capital, and with earnings power facing headwinds, credit unions and their members will face a protracted period of reduced member service, disadvantageous member pricing, and very slow growth, unless Congress allows credit unions to access supplemental forms of capital.

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Supplemental credit union capital will reinforce and strengthen the regulatory incentive for credit unions to remain exceptionally safe and sound, and, will allow credit unions to do even more to serve all their members. This would benefit all credit unions whether they use the authority or not.

CUNA Legislative Affairs

January 2013

Financial Institution Examination Fairness Did You Know?   

Concerns regarding credit union and small bank examinations increase during difficult economic times. In a recent survey conducted by CUNA, 28% of credit unions reported dissatisfaction with their most recent exam.

One of the more common concerns among credit unions is that examiners tended to focus too much on their own view of best practices rather than on legal and regulatory requirements.

In testimony before Congress, the National Credit Union Administration (NCUA) admitted that they do not document each examination finding with a specific reference to NCUA rules and regulations, and expressed concern with legislation that would require them to do so.

Our Ask:  Support the Financial Institutions Examination Fairness and Reform Act (FIEFRA).

What are the Policy Issues?  Credit unions support strong but fair and appropriate safety and soundness regulation and supervision to protect the financial resources of credit unions and their members and to minimize costs to the National Credit Union Share Insurance Fund (NCUSIF) borne by all federal insured credit unions.  Examinations should be based on the laws Congress enacts and the regulations that the NCUA promulgates, and the appeals process should protect from examiner retaliation.  The Financial Institutions Examination Fairness and Reform Act (FIEFRA) would make available to financial institutions the information used by examiners to make decisions in their examination; codify certain examination policy guidance; establish an ombudsman at the Federal Financial Institution Examination Council (FFIEC) to which financial institutions could raise concerns with respect to their examination; and, establish an appeals process before an independent administrative law judge.

What are the Implications for Credit Unions?  Credit unions face a crisis of creeping complexity with respect to regulatory burden which is made all the more challenging by current examination practices.  Many credit unions are uncertain about how their next examination will differ from the last. This uncertainty leads to widespread fear among credit unions of retaliation, should they make attempts to challenge inconsistencies in the process. o In a recent CUNA survey, 25% of credit unions felt the need to appeal their most recent supervisory decision; however, only 5% of credit unions followed through with an appeal, the remainder citing a fear of retaliation.  Credit unions have the right to manage risk without being directed to eliminate it by examiners. In that regard, regulators should address the supervision and examination of credit unions in a professional manner, taking into full account legal requirements credit unions must meet as well as the need for credit unions to have reasonable flexibility to serve their members well.  The Financial Institutions Examination Fairness and Reform Act (FIEFRA) takes firm steps in the right direction toward making the examination process fairer and more consistent.

CUNA Legislative Affairs

January 2013

About Credit Unions Credit unions are the best way for consumers to conduct their financial services.  Credit unions benefit everyone-whether a member or not.  Credit union members save over $6 billion each year by doing business with their credit union as opposed to a bank.  Bank customers benefit about $2 billion because credit unions are in the marketplace.  The not-for-profit credit union governance model relies on one member, one vote. Unlike banks, credit unions exist to serve their members, not investors.  Credit unions weathered the financial crisis well, but are now challenged by statutory restrictions, regulatory burdens and inconsistent examination practices including: o A statutory cap on business lending, o A restrictive capital definition, o 19 transferred regulations from various Federal agencies to the CFPB, o New regulatory requirements due to the DoddFrank Act, o Six proposals pending at NCUA which include: loan participations, troubled debt restructurings, CUSOs, liquidity, RegFlex, and derivatives.

The Credit Union Value Proposition  

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Today, 96 million Americans use credit unions to conduct financial services – building savings and accessing credit.

During and following the financial crisis, Americans saw credit unions as a safe haven in the financial services sector -- more than 2 million Americans joined credit unions in 2012.

The credit union tax status is good public policy. o Credit unions are exempt from federal income tax because they are not-for-profit financial cooperatives with a mission of providing access to credit and promoting thrift to their members.

While the Joint Committee on Taxation estimates that the credit union tax expenditure “costs” the federal government of $500 million annually, consumers benefit to the tune of $8 billion annually because credit unions are tax-exempt. Credit union members see this benefit in terms of lower rates on loans, lower fees on services, and higher returns on deposits.

Non-members benefit as well because credit union competition helps keep bank savings rates higher and loan prices lower. For example, credit unions offering credit cards now charge lower interest rates than most other lenders who, on average charge two or three percentage points higher.

Regulatory Burden

Privacy Notifications

Every dollar a credit union spends on complying with regulation is a dollar that is not used for the benefit of its members.  Credit unions were subjected to more than 120 regulatory changes from at least 15 different federal agencies between 2008 and 2012.  These rulemakings, most of which are required under the Dodd-Frank Act, cover issues ranging from mortgage loan disclosures, fees and practices; mortgage loan originator compensation; and international remittance transfers.  Regulatory burden is of particular significance to credit unions. o Approximately 1,000 credit unions operate with one or fewer fulltime equivalent employees. o Nearly one-half of the nation’s 7,200 credit unions operate with five or fewer full-time equivalent employees.  Every dollar a credit union spends on complying with regulation is a dollar that is not used for the benefit of its members.

Every year credit unions send millions of privacy notices to their members. Most consumers ignore or pay little or no attention to these mailings.  The Eliminate Privacy Notice Confusion Act would require a privacy notification be sent to a member or customer only when the policy changes.  Since 2001, credit unions have sent over 1 billion privacy notices to their members, averaging over 87,000,000 notices a year.  This legislation gained bipartisan support in the House in both the 111th and the 112th Congress and passed unanimously.

Examination Fairness

Prepared by CUNA Legislative Affairs

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The Financial Institution Examination Fairness Reform Act would make the information examiners use to make decisions in their examination available to credit unions; codify certain examination policy guidance; establish an ombudsman at the FFIEC to which financial institutions could raise concerns with respect to their examination; and, establish an appeals process before an independent law judge.

In a recent CUNA survey, 25% of credit unions felt the need to appeal their most recent supervisory decision; however, only 5% of credit unions followed through with an appeal, the remainder citing a fear of retaliation.

Housing Finance Reform Credit unions must continue to have access to the secondary mortgage market.     

Credit unions have traditionally been portfolio lenders, typically selling approximately 53% of their originations.

Credit unions rely on a functioning secondary mortgage market.

Over the last two years, credit unions have sold over half of their new loans to the secondary market.

The federal government has a very important role to ensure the secondary market operates efficiently, effectively and fairly for borrowers and lenders alike.

CUNA believes these are the top principles that must be considered in any comprehensive housing finance reform: o Equal Access to the secondary market; o Strong oversight and supervision to ensure safety and soundness; o Durability to lend to qualified borrowers even in troubled times; o Predictable and affordable payments; o Affordable housing should function separately from the secondary market; o Transition to the new housing finance system should be reasonable and orderly.

Supplemental Capital Capital is king for financial institutions. For credit unions, the only type of capital that counts is retained earnings. Credit unions remain healthy and well capitalized, but the importance of having supplemental forms of capital available to credit unions has taken on increased importance. 

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Under current law, the more deposits a credit union accepts, the more its capital ratio declines. When capital ratios decline, credit unions could face prompt statute regulated corrective action by their regulator.

This legislation allows well-capitalized local and community-based credit unions to receive supplemental capital so they may continue to meet the needs of their growing membership.

Access to supplemental capital is useful as credit unions rebuild capital ratios following the financial crisis and recession.

The NCUA will ultimately determine what forms of supplemental capital can be offered, consistent with the parameters established by H.R. 3993 and subject to appropriate suitability requirements and consumer disclosure protections.

Credit Union Small Business Jobs Bill Raising the Member Business Lending Cap is about helping small businesses.     

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Credit unions could lend up to $13 billion in the first year if the MBL cap was raised creating over 140,000 new jobs at no cost to taxpayers.

Credit unions have been lending to their businessowning members for a century. There was no member business lending cap prior to 1998.

Credit unions have a sound track record when it comes to business loans, specializing in lower loan amounts with a national average of $212,000.

Banks have reduced lending to small businesses while credit unions have expanded credit to them.

We know banks oppose this and that Congress doesn’t want to choose between friends – but Congress helped the banks already by making $30 billion of taxpayer funds available to help small businesses.

Credit unions have a strong history of better lending, and will do better than the banks’ failed efforts to help small businesses, all without any cost to the taxpayer.

Prepared by CUNA Legislative Affairs

Credit Union National Association, Inc. 601 Pennsylvania Avenue, NW South Building, Suite 600 Washington, DC 20004 Phone: (202) 638-5777 Fax: (202) 638-7734 Web: www.cuna.org Bill Cheney John Magill Ryan Donovan Sam Whitfield Michele Johnson Phil Drager John Hildreth Jeremy Dalpiaz Zachary Pfister Ellen Devine Jillian Hitt

Richard Gose Trey Hawkins Joann Sordellini Kristen Prather Jamie Bell Adam Engelman Meredith Hurt Joe Joiner

Alabama Delegation Report Card House of Representatives Member (District)

Co Sponsor HR 1081 (Interchange)

Co Sponsor HR 1418 (MBL)

Co Sponsor HR 1697 w/o HR 1418

Co Sponsor HR 3461 Exam Fairness

Co Sponsor HR 3993 CU Capital

Co Sponsor HR 4367 ATM Disclosure

Vote HR 4367 ATM Disclosure

Co Sponsor HR 5817 Privacy Notices

Vote HR 5817 Privacy Notices

Jo Bonner (1)

Y

Y

N

Y

N

N

N/A

N

Y

Martha Roby (2)

N

N

N

N

N

N

Y

N

Y

Mike Rogers (3)

N

N

N

N

N

N

Y

N

Y

Robert Aderholt (4)

N

N

Y

N

N

N

Y

N

Y

Mo Brooks (5)

N

N

Y

N

N

N

N/A

N

Y

Spencer Bachus (6)

N

N

Y

Y

N

N

Y

N

Y

Terri Sewell (7)

N

N

N

N

N

N

Y

N

Y

U.S. Senate Member

Co Sponsor Vote S 575 S 575 (Interchange) (Interchange)

Co Sponsor S 2231 (MBL)

Senator Richard Shelby

N

Y

N

Co Sponsor S 1600 w/o S 2231 N

Senator Jeff Sessions

Y

Y

N

N

CoSponsor S.2160 (Exam Fairness)

CoSponsor S. 3394 (ATM Disclosure Combined) Y

Vote H.R. 4367 (ATM Disclosure)

N

Co Sponsor S. 3204 (ATM Disclosure) Y

Y

Vote S. 3637 (TAG Budget Point) N

N

Y

N

Y

N

Florida Delegation Report Card House of Representatives Co Sponsor HR 1697 w/o 1418

Co Sponsor HR 3461 Exam Fairness

Co Sponsor HR 3993 CU Capital

(Interchange)

Co Sponsor HR 1418 (MBL)

Co Sponsor HR 4367 ATM Disclosure

Vote HR 4367 ATM Disclosure

Co Sponsor HR 5817 Privacy Notices

Vote HR 5817 Privacy Notices

Jeff Miller (1)

Y

Y

N

Y

Y

N

Y

Y

Y

Steve Southerland (2)

N

N

N

Y

N

N

Y

N

Y

Corrine Brown (3)

N

Y

N

Y

N

N

Y

N

Y

Ander Crenshaw (4)

N

N

Y

Y

N

Y

Y

N

Y

Richard Nugent (5)

N

N

N

Y

N

Y

Y

Y

Y

Cliff Stearns (6)

Y

N

N

Y

N

N

Y

N

Y

John Mica (7)

N

N

N

N

N

N

Y

N

Y

Daniel Webster (8)

N

N

N

N

N

Y

Y

N

Y

Gus Bilirakis (9)

N

Y

N

Y

N

Y

Y

N

Y

Bill Young (10)

N

Y

N

N

N

N

Y

N

Y

Kathy Castor (11)

N

Y

N

Y

N

N

Y

N

Y

Dennis Ross (12)

N

Y

N

Y

N

Y

Y

N

Y

Vern Buchanan (13)

N

N

N

Y

N

N

Y

N

Y

Connie Mack (14)

N

N

N

N

N

N

Y

N

Y

Member (District)

Co Sponsor HR 1081

Co Sponsor HR 1081 (Interchang e)

Co Sponsor HR 1418 (MBL)

Co Sponsor HR 1697 w/o 1418

Co Sponsor HR 3461 Exam Fairness

Co Sponsor HR 3993 CU Capital

Co Sponsor HR 4367 ATM Disclosure

Vote HR 4367 ATM Disclosure

Co Sponsor HR 5817 Privacy Notices

Vote HR 5817 Privacy Notices

Bill Posey (15)

N

Y

N

Y

Y

Y

Y

Y

Y

Tom Rooney (16)

N

N

N

Y

N

Y

Y

N

Y

Frederica Wilson (17)

N

Y

N

N

N

N

Y

N

Y

Ileana Ros-Lehtinen (18)

N

N

N

Y

N

N

Y

N

Ted Deutch (19)

N

N

N

N

N

N

N/A

N

Debbie WassermanSchultz(20)

Y

N

N

Y

N

N

Y

N

Mario Diaz-Balart (21)

N

N

N

Y

N

Y

Y

N

Y

Allen West (22)

Y

Y

N

Y

N

N

Y

N

Y

Alcee Hasting (23)

Y

Y

N

N

N

N

Y

Y

Y

Sandy Adams (24)

N

N

N

Y

N

N

Y

N

Y

David Rivera (25)

Y

N

N

Y

N

N

Y

N

Y

Member (District)

Y

Y Y

U.S. Senate Co Sponsor S 575 (Interchange )

Vote S 575 (Interchange )

Co Sponsor SB 509 (MBL)

Senator Bill Nelson

Y

Y

Senator Marco Rubio

N

Y

Member

CoSponsor S.2160 (Exam Fairness)

Co Sponsor S. 3204 (ATM Disclosure)

Y

Co Sponsor S 1600 w/o S 509 N

Vote H.R. 4367 (ATM Disclosure)

Y

CoSponsor S. 3394 (ATM Disclosure Combined) Y

Y

Vote S. 3637 (TAG Budget Point) Y

N

N

N

N

Y

Y

Y

N

KEY Y/N - Voted with or took action requested in support of the credit union position Y/N - Either voted against the credit union position or has not cosponsored requested legislation - The issue has not gone before the lawmaker and available for the lawmaker to support or fail to support the credit union position Explanation of Issues Reported: Cosponsor HR 1081/SB 575 – HR 1081 and S 575 are legislative remedies to the Interchange Provision of the Dodd-Frank Act. Both of these bills would place a moratorium on the Federal Reserve Issuing final Interchange Regulations and require a study of the impact. The League strongly supports this legislation. A Y on co-sponsorship is support of the credit union position.

Vote on SB 575 – A Y vote in favor of HR 1081 / S 575 will be a vote to delay implementation and study the impact of the Interchange Regulations of Dodd-Frank, a and is a vote in support of the credit union position. The bill did not come to the House, so there was not an opportunity for House members to vote for or against it.

Cosponsor HR 1418/S509 – Under current law, the ability of credit unions to make small business loans to their members (Member Business Loans) is limited to 12.25% of the assets of the credit union. This unnecessarily and artificially limits the ability of credit unions to serve the loan needs of many small businesses within their fields of membership and their geographic areas. Allowing credit unions to double their current legal limit would inject $14 billion in new small business capital, creating over 100,000 new jobs, in the first year of having increased lending authority.

HR 1418 and S509 increase the current limit from 12.25% to 27.5% of assets. This legislation is supported by credit unions and numerous small business groups. A Y on co-sponsorship indicates support of the credit union position.

Cosponsor HR 1697/S1600 Without HR 1418/S509 – HR 1697 / S 1600 gives banks significant regulatory relief to banks, including an expansion of Subchapter S status, which gives certain banks greater tax advantages, and reduces the aggregate tax for other banks. In addition it gives banks

relief from numerous reporting and accounting requirements. While credit unions do not oppose this legislation for banks, we do oppose members of Congress supporting greater powers and regulatory relief for banks without also supporting the ability of credit unions to serve their members, including small business owners, under the provisions of HR 1418. Y indicates that a member of Congress co-sponsored regulatory relief for banks but not for credit unions.

Cosponsor HR 3461/S 2160 – HR 3461, the Financial Institution Exam Fairness Act, helps ensure a fair examination process by regulators. The bill gives financial institutions like credit unions the right to see the information that regulators use to make decisions, establish an appeals process before an independent Administrative Law Judge, and establishes an ombudsman to which financial institutions could raise concerns with respect to their examinations. Credit Unions strongly support this bill, and a Y indicates that the member of Congress has signed on as a co-sponsor of the bill.

This House bill was introduced on 2/1/2012 and the Senate bill was introduced on 3/6/2012.

Cosponsor HR 3993 – Credit unions are the most heavily regulated of all deposit taking institutions. Unlike banks, the required net worth of credit unions is set by law, not regulations, and is higher than for other types of institutions to be considered “well capitalized.” Under current law, only HR 3993, the Capital Access for Small Business and Jobs Act, will allow credit unions to raise additional forms of capital, while still maintain the unique structure and nature of credit unions. While credit unions generally remain well capitalized, economic downturns can lead to some credit unions falling below the required amount and triggering regulatory action. HR 3993 will ensure that credit unions have options and maintain the ability to grow and serve their members. Credit unions strongly support this bill and a Y indicates that the member of Congress has co-sponsored the bill.

This bill was introduced on 2/9/2012 and has not received as much of a co-sponsorship push as older bills.

Cosponsor HR 4367/S3204/S3394 – This legislation would amend the Electronic Funds Transfer Act by removing the requirement that a physical sign be placed on an ATM by the owner/operator that informs the user of the machine that he/she may be charged a fee. An on-screen disclosure requiring the user to affirmatively accept or decline the charge is still necessary, and thus the consumer is still protected. By removing this duplicative disclosure requirement, frivolous class action lawsuits due to removal of the physical sign will be eliminated. Credit unions strongly support this bill and a Y indicates the member of Congress has co-sponsored the bill. Credit unions strongly support this bill and a Y indicates that the member of Congress has co-sponsored the bill. The House bill was introduced on 4/26/12 and the Senate bill was introduced on 5/17/12. The House bill passed the floor by a 371-0 vote on 7/10/12.

Cosponsor HR 5817 – This legislation would remove a requirement that financial institutions send out annual privacy notice statements if their policy has not changed from the previous year. Currently, when you open an account, you are given the institutions privacy notice and then receive an annual notice, regardless of any changes that have occurred. If this legislation passes, credit unions will no longer have to spend money to send their members duplicative notices. Should a credit union change their policy, even in a slight manner, they will be required to send the updated policy to their members. Credit unions strongly support this bill and a Y indicates the member of Congress has co-sponsored the bill. Further, all notices will still be available on the website, as well as available at physical locations. This bill was introduced 5/17/12. There is currently no Senate companion.

Vote S. 3637 – This legislation would extend the Transaction Account Guarantee (TAG) program for 2 years. During the TARP era, the FDIC used emergency powers to extend unlimited deposit insurance coverage to noninterest bearing accounts at banks. This was necessary to maintain confidence in the banking sector which was in crisis. During the Dodd-Frank Act, Congress temporarily authorized the FDIC to continue this coverage, and expanded the program to include credit unions as well through the NCUSIF. It expires Dec. 31st if not reauthorized. A N indicates the member of Congress voted against allowing this bill to proceed to the floor, a position advocated for by the LSCU. This bill was introduced on 11/26/12.

Capitol Hill Meeting Etiquette Remember: 

Timeliness matters – Lawmakers’ and staff’s time is constantly in flux, and if you are late it could result in reduced face-to-face time.

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One of Many –Lawmakers and staff hold dozens of meetings a week on a wide range of policy issues.

There are few credit union “experts” on the Hill. Be patient, clear, and concise when discussing the issues. Some offices may need more explanation than others.

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Show Appreciation – Be sure to thank lawmakers’ for past support of credit unions, and be sure to thank lawmakers who pledge to support credit unions going forward.

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Take turns speaking – Identify a point person for each topic to speak on behalf of the group. This approach is a confirmation that the group stands as one on the issue. Try to reinforce, not repeat, information and stay on point.

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It’s OK to disagree sometimes – It’s great to have a lawmaker on your side on every issue. But that’s not commonplace. Expect to disagree sometimes, but don’t let disagreements define relationships.

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Exchange business cards – Even someone who is good with names may not remember who stopped by on any given day based on the number of people that visit. Exchange business cards. If you do not have a card, ask for a card and be sure to email your contact information to them afterwards.

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Deliver the ‘leave behind’ document to reinforce the things discussed at the meeting.

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Follow up and let CUNA know how your meeting went- About a week after the meeting, follow up with the staffer – thank them for their time and if there are any lingering questions. Let CUNA know if there are any outstanding issues that need their attention or you’d like their assistance in following-up.

Avoid: 

Expressing disappointment for meeting with staff only or commenting on their age – While many staffers are young, many are very well-educated and were hand-picked by their boss to represent them on the issues about which you are meeting.

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Expressing disappointment or concern about a meeting’s location – Space in Hill offices is very limited. Be respectful of the space and other staffers in the office. A meeting is a meeting regardless of where it’s held.

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Confusing issues – Act as a credit union ambassador, not a political partisan. Credit union issues are not partisan; express your personal opinions about other issues at another time.

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Holding a grudge or having low expectations – Someone who might not have been on our side on an issue last session, might be our champion this session.

Lobbying is a process, not an event.

Use your Hill meetings to build or renew the credit union relationship with your elected officials and their staff.

Prepared by CUNA Legislative Affairs