/Q1_2011_LSCU_Signal_Magazine

The Magazine of the League of Southeastern Credit Unions

Turning the Tide on

INSIDE LSCU Turning Back the Tide LSCU’s Governmental Affairs Team Credit Unions & Financial Education Spring 2011

Board Governance Maximizing Financial & Operational Performance

Strategy ng

Networki

Awa

s s e n re

Con nec ted

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

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LSCU

Message from the President as the first quarter of 2011 comes to a close, I hope you know the lsCu is excited to be rolling out our first lsCu statewide Image Campaign (additional story on page 28). the idea behind a cooperative brand campaign is simple: together we can accomplish much more than we can individually. over the past several months, we’ve been out presenting the nuts and bolts of the image campaign to chapters and credit unions in both states. one of the questions we’ve heard most from credit unions during our presentations is how will we be able to track the results of the campaign. three state leagues currently have successful campaigns. the pennsylvania Credit union association has been able to track the results of its “I Belong” campaign to real membership growth.

Before the campaign, pennsylvania membership had been stagnant. after “I Belong” debuted a few years ago, pennsylvania credit unions began seeing more members and last year the membership growth was two percent, while loans and assets saw steady growth. the new Jersey Credit union league’s campaign saw membership, loan, and member business loan growth. the michigan Credit union league’s 2010 campaign Patrick La Pine, President & CEO League of Southeastern Credit Unions tracked more than 50,000 new members last year. these are real results that can be directly tied back to their awareness campaigns.

Before we debut our statewide Image Campaign in the fall, we are going to conduct a consumer awareness study so we can track consumer’s attitudes toward credit unions as well as a post-campaign study to see how much we’ve been able to move the needle. we will also have google analytics on our landing website that will show how many consumers saw or heard the ads and came looking for more information on how to join a credit union. For the first year of a campaign, it’s imperative that we show results as well as show how our collaborative nature can make a difference for all of our participating credit unions.

In this issue of signal, our professional governmental affairs team and outside contract lobbyists are profiled. we take a closer look at the advocacy work being done in montgomery, tallahassee, and washington d.C. By the time you read this, more than 130 credit union folks from alabama and Florida will have attended the Cuna gaC and met with our congressional delegations. we have state governmental affairs Conferences planned in montgomery march 30-31 and in tallahassee april 13-14. these first annual lsCu state gaCs will inform and educate credit unions about the importance of legislative, grassroots, and political advocacy as well as offer visits with state lawmakers. nothing shows the credit union difference more than credit unions hiking to our state capitals to engage key policy makers. this is critical with so many new faces on the state and federal level. we need to continue to educate lawmakers on the credit union difference and why having a not-for-profit alternative in the financial services marketplace still makes sense and provides a real benefit to consumers. this is also where the statewide Image Campaign works hand-in-hand with our advocacy efforts. these same lawmakers that we work to build relationships with will see and hear the ads. It gives them a greater understanding of the credit union difference while showing them the place credit unions have in our local and national economy. Couple this with credit union face-to-face interaction and our advocacy message is greatly enhanced. we hope your credit union will see the value in the campaign as other credit unions have seen the benefits of their leagues’ cooperative image campaigns. the economy is improving, but credit unions in alabama and Florida are still feeling pressure. the league understands this, but we need to set the foundation for a long-term, sustainable campaign. many consumers are upset with their large, for-profit financial institution, especially in light of new fees being added. let’s get our message out there to the estimated 60 percent of consumers that aren’t aware of what it means to belong to a credit union. together we can accomplish much more.

patrick la pine president & Ceo sIgnal: vol. 2, Issue 1

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Table of Contents

Editor Amy Jowers Contributer Bill Berg Mike Bridges John Brumit Mary Elicia Del Santo Will McCarty Laura Vann Lori Vary

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president’s letter

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Cu president profile

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Feature Article the regulatory environment: turning Back the tide “Credit union executives and their boards have responsibilities to the credit union, but they also have rights, specifically the right to manage the credit union without unauthorized interference from the regulator demanding the elimination of all risk.”

Production Detra White April Banta Letters to the editor may be submitted at submission@lscu.coop.

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volunteer profile

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Advocacy lsCu’s governmental affairs department: working on your Behalf

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Jim Mitchell, CEO Army Aviation Center FCU

Alabama Governmental Affairs Team

Joe Brancucci, CEO GTE FCU

Florida Governmental Affairs Team

lsCu legislator profile

Coming Soon overview of Cuna and state gaCs

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Highlights 8 | Feature Article

12 | CU Volunteer Profile

14 | Meet LSCU GA Staff

Compliance regulations have become overwhelming. The negative impact on lenders and consumers has started to be noticed.

This new section introduces two credit union volunteers and their thoughts on the responsibilities of being a volunteer.

Get to know LSCU’s Governmental Affairs staff and how they are working for credit unions.

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state gaCs

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Compliance Corner secure & Fair enforcement for mortgage licensing act

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director Financial literacy training guidance & resources

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regulatory Q&a

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Cooperative Initiatives Credit unions & Financial education

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education

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Communications Cooperation will lead to statewide Image Campaign success

According to a Gallup poll, just a fifth of Americans surveyed gave bankers ‘high’ or ‘very high’ ratings for honesty and ethics. That’s the lowest rating since Gallup began asking the question in 1977.

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league news

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Board Governance strong Board governance Can lead to a stronger Credit union

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LEVERAGE a snapshot of LEVERAGE successes in 2010

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Contract lifecycle management: maximizing Financial & operational performance

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debt protection now available to Florida Credit unions through Cuna mutual group

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Innovation through Collaboration

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lsCu staff directory

Highlights 20 | Compliance

24 | Cooperative Initiatives

33 | Industry

Learn what resources are available to help credit unions comply with SAFE Act registration.

Examples of what financial education programs credit unions have put in to place to help people take control of their financial lives.

This new section provides information on board governance and how it can lead to stronger credit unions. sIgnal: vol. 2, Issue 1

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CU PROFILE

CU President Profile JIM MITCHELL 1.

What drew you to the credit union movement?

I had been working in the banking industry in atlanta when a position opened as assistant manger of tyndall Federal Credit union in panama City. In my desire to move back to my native coast, I applied for the position and got the job. that was in 1973 and I have been working in the credit union movement ever since.

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Your credit union has had a 5-star rating for 14 consecutive years. How have you achieved this? we watch our expenses, re-negotiate contracts when up for renewal, write our budgets to operational ratios that reflect best in class, and use them as a map to achieve our goals. most importantly, we manage our cost of funds, recognizing that we can’t always match rates of every other financial institution in our market.

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As credit unions look for more members, how does having “Army Aviation Center” help in your marketing? “army aviation Center” evokes loyalty and pride throughout our southeast alabama market because of our military ties to Ft. rucker, al. In our outer areas, the emerald coast of Florida and the mobile Bay area, it still ties us to the military which has a positive impact on the communities. our name is our image and it carries the respect we have earned in the communities we serve.

Credit Union Statistics

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Jim Mitchell, CEO Army Aviation Center FCU

Company:

army aviation Center Credit union

Location:

daleville, alabama

Assets:

$ 930,243,192

Members:

104,162

Shares:

$ 800,307,249

Loans:

$ 344,667,038

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You have hosted legislative events at AACFCU. Why is it important for credit unions and credit union staff to be politically active? our vocation is all about political action. we have seen, especially in the last couple of years, how poorly written legislation can adversely affect the financial health of credit unions and their service capabilities to their members.

It is important that credit union Ceos stay engaged in the political process in order to protect the credit union and its members from the unintended consequences of so-called good intentions of politicians.

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As you look at 2011, where do you see opportunities for credit unions? even after the meltdown of 2008, or perhaps because of it, people trust their credit unions. we still wear the “white hats.” It’s an opportunity for us to continue to build on trust while working especially hard to live up to our members’ expectations. ■

JOE BRANCUCCI 1.

You’ve been in the financial services industry for more than 40 years. Would you tell us a little bit about your background?

I started as a teller while in college and have not left the financial services world since. I have been fortunate to have worked in a few thrifts (savings and loans), a national bank, Freddie mac, an investment banking firm, and sallie mae. have been involved with credit unions since 1992 when I was recruited to help a troubled credit union here in Florida. my career has always had two focuses – the members and the employees. I have found that a dogged approach does not compromise that in any way is always successful. I am also a big believer that credit unions need to focus on being relevant, and the best ways to do that are to make sure we are present when a member has a life event – their first car to get to work or school, first house to start a family. relevance is our biggest threat.

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Joe Brancucci, CEO GTE FCU

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What brought you to the credit union industry?

I was recruited to assist with a troubled credit union – I had established credentials participating in the workout of two thrifts and a national bank. I have never looked back…I love helping members realize their dreams, and am totally enamored with the cooperative model.

Since you’ve been at GTE, what has been your main focus and why? honestly, working through the major issues and restoring the institution to a well capitalized and stable condition – both already accomplished. we have a fully vetted strategic plan that focuses on creating engaged members and employees as well as differentiating ourselves by delivering a unique member experience. we are focused on home ownership, financial literacy, and environmental sustainability and are committed to the credit union movement. we have assembled a top notch leadership team that is totally committed to returning the luster of the platinum charter credit union. we are focused on helping our communities recover from the continuing recession, and being part of the solution to housing, unemployment and family stress.

What are the challenges you see for credit unions now that they’re beginning to see some recovery?

Capital is always a challenge. as we continue to get control of operating expenses (we have a target to reduce them to 2.5% of assets in 36 months, we will have a great value proposition to offer to the members and prospective members. the only constraint will be capital and how much we can grow assets each year.

In the short term, the most challenging part of the business is loan production, or lack thereof. with consumers still sitting on the sidelines it is difficult to make auto, credit card, home equity and even home loan targets.

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What is your vision for GTE over the next few years? gte FCu will be the preferred financial services provider and employer in our markets. our members will always experience the best value and service with complete confidence. we will be defined by our member experience, which is a combination of best value (not price), exceptional service and trust. we will operate as efficiently as possible in order to assure we can deliver on that promise. ■

Credit Union Statistics Company:

gte Federal Credit union

Location:

tampa, Florida

Assets:

$1,470,713,467

Members:

179,113

Shares:

$1,344,306,829

Loans:

$1,167,455,358 sIgnal: vol. 2, Issue 1

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FEATURE

The Regulatory Environment: as financial institutions, credit unions have always been required to deal with significant amounts of regulatory requirements. whether it is the alphabet soup of regulations from reg CC to reg Z, or the numerous disclosures that must be made at the right time or the accounting procedures that govern daily operations, the list of compliance requirements has always been part of operating a credit union. But something began to shift in the past five years as we saw more and more regulatory compliance requirements take effect. according to gary palmer of the alabama policy Institute: In 2009, the Code of the Federal Regulations reached a record high of 163,333 pages with over 22,000 pages added in the last ten years. A 2010 report by the Small Business Administration’s Office of Advocacy states, “The annual cost of federal regulations in the United States increased to more than $1.75 trillion in 2008.” The report points out that the $1.75 trillion is equivalent to more than half the level of the federal budget itself and is significantly more than all the 2010 federal, state, and local income tax revenues combined.

To reduce this to a personal level, if every household in the United States paid an equal share of the cost of these regulations, the bill would come to $15,586. most credit union professionals would agree that 2009 and 2010 saw the greatest increase in compliance requirements they have ever seen. while compliance might have been a part-time responsibility for one person at a credit union, it may now require

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the full-time efforts of multiple employees. a recent article in the wall street Journal noted that compliance costs for smaller financial institutions have actually tripled. worse, because the largest financial institutions in the country can better absorb the costs of internal compliance, their cost per loan is significantly less than smaller institutions. perversely, the upcoming costs of complying with dodd-Frank will actually be easier on the “too big to fail” banks—the ones that caused the problems leading to passage of the bill—and give them an advantage over everyone else.

While compliance might have been a part time responsibility for one person at a credit union, it may now require the full-time efforts of multiple employees.

Certainly the environment of late may be enough to dispirit even the most positive credit union professional, but there may be a light at the end of the tunnel. while 2011 will usher in even more requirements due largely to the dodd-Frank reform bill, all indications are that policy makers are beginning to see the problems the excessive regulatory environment is creating.

Turning Back the Tide earlier this year, president obama ordered all executive branch agencies to review existing regulations to determine if they restrict economic growth and job creation, and, if so, to change or replace them. Certainly this is a step in the right direction. however, since the nCua is an independent agency this executive order would not apply. the league and Cuna continue to work with the nCua leadership to encourage them to take the same path as other agencies and conduct a review of outdated, conflicting, and unnecessarily restrictive regulations with the goal of streamlining the environment. on February 8, the u.s. house of representatives adopted house resolution 72 by a vote of 391–28. this resolution orders all major committees, including the house Financial services Committee which oversees credit union-related issues, to inventory and review all existing and pending regulations. the goal of the inventory and review is to determine, among other things, which regulations hurt investments, limit access to credit and capital, lack specific statutory authority, result in large-scale unfunded mandates on employers without cause, or impose undue paperwork and cost burdens on small businesses. Certainly, many of the regulations facing credit unions would fit under any one or more of these headings. this alone will not stem the tide of the federal regulatory burden facing credit unions. however, it is yet another sign that policy makers are beginning to take seriously

the negative effects that years of excessive regulations have been having on the ability of credit unions and other businesses to meet the needs of their consumers.

In Florida, governor rick scott’s first order of business was to sign an executive order suspending new rule making by state agencies under his purview and creating the Florida office of Fiscal responsibility and regulatory reform. the order requires all agencies under the governor’s control to submit any new proposed rules or amendments to existing rules to the office for approval. the order requires proposed and existing rules be reviewed to determine if they create a burdensome cost on businesses and if they are justifiable when the cost effectiveness is considered. at the minimum, this creates the possibility that there will be some coordination in rule making and eliminates some of the conflicts in authority inherent in the existing system.

In addition to pulling the reins of his own agencies, governor scott’s order requested those departments not under his authority similarly submit any proposal to the Fiscal responsibility and regulatory reform office. these are agencies under the direction of attorney general pam Bondi, agriculture Commissioner adam putnam, and Chief Financial officer Jeff atwater. each of these individuals was elected in their own right and has their own responsibilities to their agencies and the industries they oversee. however, the idea that regulations should be judged on a cost-to-

Signs the Tide is Turning

• Resolution 72 • Executive Order by Governor Scott Suspending the Making of New Rules • Creation of TZ Office of Fiscal Responsibility & Regulatory Reform

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Turning Back the Tide (Continued) benefit analysis should permeate throughout all agencies regardless of what position has principle authority. the league contacted governor scott as well as these cabinet members and the legislative leadership expressing its support of this effort, the desire to see it be taken up by all levels of government within the state, and to help however possible.

A recent article in the Wall Street Journal noted that compliance costs for smaller financial institutions have actually tripled. the league understands the mounting challenges faced by credit unions and, like you, wants to see the tide turn the other way. the league is engaged in a holistic approach to reversing this trend and to making the environment as manageable as possible. we start with the legislative front where the statutory authority or requirements for many regulations have their origin. when legislation is introduced, its impact is judged not only on what it actually says, but also on how it could be construed by a regulatory authority as either the beginnings of new regulations or authority for enforcement action by examiners. any bill that creates, or could create, an additional expense or regulatory burden without an underlying showing of necessity will be challenged in the legislative process, either through amendments by the league or opposition to the bill itself if a resolution to credit union concerns cannot be reached. the league and credit unions must also engage in the existing rule making process. we will continue to review all proposed rules, ensure credit unions are aware of them and how they will work, and make our views known to the appropriate agency. while this does not always guarantee the desired outcome, withdrawal from the process guarantees an unchecked growth of the bureaucracy and intervention into the day-to-day operations of credit unions. the Federal reserve’s decision to shelve the misguided proposed reg Z disclosure requirements for credit insurance products is a great example of an informed industry engaging in the process and stopping a problem rule before it became final.

Because not all rules can be perfected or stopped, the league continues to work with agencies and their examiners to build relationships and ensure that field examiners do not go beyond their role as regulators, becoming shadow managers of individual credit unions. Credit union executives and their boards

have responsibilities to the credit union, but they also have rights, specifically the right to manage the credit union without unauthorized interference from the regulator demanding the elimination of all risk. the league will work with, and on behalf of, any credit union, whose right to fulfill their proper role has been unfairly supplanted by an examiner or regulatory agency.

Certain amounts of regulations are an accepted fact of life, especially for the financial services industry. But over-regulation, the attempt to eliminate all risk from the marketplace, and a lack of understanding of how regulations affect the ability of credit unions to effectively and safely serve their members, creates an environment in which service to the consumer and healthy growth are impeded.

Credit union executives and their boards have responsibilities to the credit union, but they also have rights, specifically the right to manage the credit union without unauthorized interference from the regulator demanding the elimination of all risk. while this is not news to anyone within the credit union industry, it is something that for too long has seemed lost on both elected and unelected policy makers. But now there is renewed attention on the negative impact on lenders and consumers. while inventories and reviews of proposed and existing regulations are a great start, they will not by themselves change the operational landscape for credit unions. Increased vigilance, greater efforts in communicating our issues and concerns, and continuing efforts to serve members and turn our economy around—when coupled with this new-found concern by policy makers—represents our best opportunity to begin the process of turning back the tide. ■

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VOLUNTEER

Volunteer Profile

Ronnie Reed, CU Volunteer, Family Savings CU 1.

2.

3.

What drew you to volunteer at a credit union?

I am a retired employee of goodyear tire and rubber Company.

Family savings FCu was started by a group of goodyear workers (chartered in 1951), and I have been a member of the credit union for many years. over the years, I became heavily involved with it, so I wanted to continue that and make sure that the credit union was there for its members for many years to come. I truly believe in the credit union way of “people helping people.”

How have you approached your position as a director at Family Savings CU? our credit union belongs to our members. as a member of the board, I always try to make sure that our members and our employees are first in our decision making. I have always been proud to be associated with Family savings FCu. How important are non-paid volunteers for credit unions?

I feel volunteers are very important because their only motivation is that they want to ensure the credit union is always sound and secure for their children and grandchildren, as well as all other members.

David “D.W.” Smith, CU Volunteer, Tyndall FCU 1.

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Ronnie Reed (r) & Shane Nobley, Family Security CU President/CEO & LSCU Director, accepting the 2009 ACULAC CU of the Year award.

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You are active with the LSCU Governmental Affairs Committee. Why should a credit union become involved in the political process? any decision made by our legislators regarding financial institutions affects credit unions. our voice must be heard so that credit unions remain what they were intended to be – an institution for our members and their needs.

As an ongoing participant of the CUNA GAC, how important is it to meet with your federal lawmakers?

It’s extremely important that our voice be heard about upcoming legislation. their decisions can adversely affect our credit union and our members. It’s not about what our credit union wants, but what our members need. ■

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Why did you become involved as a director of a credit union?

I got involved in the credit union movement when I was on active duty in the air Force. my community had always given so much to me and my family. I wanted to “give back” to my community. Being a credit union volunteer provided me the opportunity to serve.

D.W. Smith, Tyndall FCU How have you approached your position as a director at Tyndall FCU? I approach being a director at tyndall FCu by always remembering that tFCu “exists for the benefit of its members.” all my decisions are based on the questions: a) will this benefit the members of tFCu; b) how do we provide better financial services to our members; and c) how do we make a difference in the lives of our members?

How important are non-paid volunteers for credit unions?

In my opinion, volunteers are the “heart and soul” of the credit union movement. the members of credit unions are the “shareholders.” as a volunteer, credit union directors have the responsibility to represent their members with integrity, honesty and hard work. the motivation to be a volunteer director has to be a desire to serve your community by providing your membership with financial services that make a difference in their lives.

You have been an avid proponent of a state-wide image campaign for credit unions. Why so? And, why should other credit union volunteers be “on board” with their credit union’s participation? the recent financial crisis has highlighted the need to differentiate credit unions from banks. For the most part, credit unions did not participate in the “sub prime” mortgage debacle that has plagued many banks and “for profit” financial institutions. In my opinion, credit unions are the solution to providing our members with affordable credit and financial products on reasonable terms. It is time to “educate” america that the best financial solutions lie in being a member of a credit union. “If not now, when?” that is my motto when it comes to lsCu’s image campaign. we must “get the word’ out now to insure the viability of the credit union movement. ■

LSCU State Governmental Affairs Conference Join the league of southeastern Credit unions, national and state regulators, Cuna, and state legislators at the lsCu state governmental affair Conferences for alabama and Florida.

Alabama State GAC – March 30-31, 2011, Montgomery, AL Florida State GAC – April 13-14, 2011, Tallahassee, FL the state gaCs are the perfect opportunities for attendees to learn about important national and state legislative issues affecting credit unions. the legislator receptions and Capitol visits provide the opportunity to network with key policy makers, in turn, building and maintaining strong relationships with local leaders. visit the event calendar at www.lscu.coop for conference agenda and speaker details.

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ADVOCACY

Advocacy LSCU’s Governmental Affairs Department: Working on Your Behalf and spokesman for the house Banking subcommittee on oversight the lsCu governmental affairs department advocates on behalf and Investigations. mcCarty is an attorney with a law degree from the of credit unions in montgomery, tallahassee, and washington d.C. university of alabama school of law. the department is now complete with eight full-time professionals, as well as two outside contract lobbyists, dedicated to the legislative, Legislative Affairs regulatory, and political issues that are important to credit unions.

In 2011, the league hired two new full-time directors of In 2011, we have been working hard to educate federal lawmakers legislative affairs. the main focus of these positions is to advocate in on the impact of the Federal reserve’s proposed rule on interchange montgomery and tallahassee for alabama and Florida credit unions fees and the effect it will have on credit unions. at the Cuna gaC as well as back in the legislative districts. in march, lsCu member credit unions talked with more than 30 as directors of legislative affairs, Jason Cochran (alabama) and lawmakers and staff, along with staff from all four senate offices. the Jared ross (Florida) will focus their time and energy working with their message is working as more lawmakers are pushing for a delay in the state’s respective legislatures on the league’s proactive legislative implementation of the durbin amendment. agenda and work with their state’s Congressional delegation. Both the foundation is also being set for an increase to the member bring established relationships with state lawmakers. business lending cap for credit unions, by staying in contact with the offices of the federal lawmakers in alabama and Florida. sen. mark udall (d-Co) introduced a bill in mid-march to raise the cap from 12.25 percent to 27.5 percent. the opportunity for credit unions to accept municipal deposits in the state of Florida is gaining traction. the ga department has been working with house and senate members who understand the value of municipalities having a choice of where to deposit their money. as the law is currently written, credit unions cannot accept these deposits. at press time, a house bill (h.B. 999) had been sent to two committees, while a senate bill is expected to be introduced. heading up the governmental affairs team are lsCu Alabama’s Governmental Affairs team (l to r): Robbie Gordon, Grassroots & Political Action Coordinator; Jason Cochran, Director of Legislative Affairs; Will McCarty, Sr. VP, Governmental president & Ceo, patrick la pine and svp, governmental Affairs; and Scott Morris, Director of Compliance. affairs, will mcCarty. la pine has been with the lsCu since august, 2009 prior to Jason comes to the league from the alabama state employees joining the league, patrick was evp, association services with the association where he worked for seven years, serving as its director michigan Credit union league (mCul), which included overseeing of governmental affairs. Jason understands the trade association the governmental affairs function of the mCul. la pine has a strong dynamics and brings a record of legislative success, as well as governmental affairs background working previously for the michigan significant experience in political and grassroots advocacy. legislature and the u.s. senate for former senate Banking Committee Jared joins the league from the american Cancer society, Chair, don riegle (d-mI). where he was the director of public policy since 2006. he is an as svp, governmental affairs, mcCarty, who joined the league in attorney with a law degree from Florida state university. Jared has 2000, directs the operations of the ga department. the department experience lobbying in tallahassee and has developed a great working focuses on legislative advocacy, regulatory advocacy and compliance, relationship with state lawmakers and staff. paC fundraising, and grassroots action. mcCarty spent three years working for rep. spencer Bachus (r-al), serving as press secretary

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Regulatory Affairs with two full-time professionals in regulatory affairs, the league is well positioned to assist credit unions with their growing compliance burden and to become a greater advocate on credit unions’ behalf with state and federal regulators. the league offers a number of tools for credit unions to assist with the regulatory and compliance burden. league Infosight is an excellent online resource with model policies and a weekly newsletter highlighting various tools for credit unions. the league has a Compliance helpline (866.231.0545) where credit unions can call with questions and our staff will work with them to gain the answers. we also facilitate opportunities for credit unions to speak directly with their regulators, including the state gaCs and the aC&e in June. the regulatory staff also helped develop a Credit union examination rights manual. It can be found on the regulatory advocacy page of the lsCu website. lsCu vp, regulatory affairs & Compliance training, Bill Berg, has more than 20 years experience in training credit union executives, staff, and board members on the numerous compliance issues they face. Based in tallahassee, Berg offers compliance training to credit unions and chapters on a variety of timely issues. so far this year he has kicked off the first of several Bsa events, Ira/hsa trainings,

and most recently the league compliance call. Berg also develops the quarterly credit union Custom performance reports. scott morris, based in Birmingham, is the league’s director of compliance, and is the point person for all regulatory advocacy efforts. scott has 25 years of experience in financial regulatory matters and is concentrating his efforts on developing relationships with regulators, examiners, and credit unions represented before different agencies. scott develops and maintains relationships with key regulatory personnel on the state and federal level, he assists credit unions with compliance issues, and develops regulatory alerts to credit unions and comment letters to various agencies.

Grassroots & Political Action a greater concentration of resources allows the lsCu to strengthen its localized grassroots advocacy efforts, by providing more opportunities for credit union officials and legislators to build relationships. lsCu grassroots & political action Coordinators robbie gordon (alabama) and Justin thames (Florida) ensure such opportunities are available by developing and promoting credit union grassroots advocacy programs throughout each state. this includes promoting and coordinating the involvement of credit unions in the campaign and legislative process, enhancing relationships between candidates and credit unions through legislative breakfasts and Chapter meetings. the league also developed a credit union voter guide for the 2010 elections.

Florida’s Governmental Affairs team (l to r): Justin Thames, Grassroots & Political Action Coordinator; Jared Ross, Director of Legislative Affairs; Patrick La Pine, President/CEO; and Bill Berg, VP, Regulatory Affairs & Compliance Training. sIgnal: vol. 2, Issue 1

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Advocacy (Continued) In addition to grassroots advocacy, Justin and robbie oversee the lsCu’s political action Committee (paC) fundraising efforts. paCs are a vital part of maintaining a credit union friendly political atmosphere

through the support of pro-credit union candidates, promotion of good government, and support of advocacy efforts for pro-credit union legislation. Both Justin and robbie provide credit unions with resources and training to conduct paC fundraising to provide financial support for both federal and state candidates in their respective states. they have worked to develop the paC Fundraising guide which provides credit unions with various ideas on ways to fundraise including payroll deduction, jeans days and deduct a buck. the guide can be found on the lsCu website under lsCu paCs. also part of the governmental affairs department is tracy schimansky. as the association support specialist, tracy assists in all areas of the governmental affairs department, coordinates distribution of materials for the governmental affairs Committee, paC meetings, and assists in the day-to-day operations of the department. the advocacy efforts of the lsCu ga department are to help improve the operating environment for credit unions, while working to create new opportunities. with the combined experience and collective knowledge of the expanded department, the lsCu is able put forth a proactive legislative and regulatory issues agenda. ■

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LSCU’s Multi-Client Lobbyists the lsCu’s multi-client lobbyists offer additional access to lawmakers due to their efforts working on multiple issues each year. their government relations experience helps to strategize the league’s legislative and grassroots efforts in order to affect the most change to benefit credit unions. the institutional knowledge they possess is invaluable in helping the league’s efforts at the Capitol.

Jim smith, smith & Ballard, is one of two of the lsCu’s multiclient lobbyists. since 2003, Jim smith has partnered with Brian Ballard as one of the most powerful lobbying/law firms in tallahassee. prior to forming smith Ballard, he served as Florida’s interim secretary of state as it transitioned from a Cabinet level position to an executive agency under gov. Jeb Bush. In 1978, smith was elected Florida’s attorney general as a democrat, then in 1987, as a republican, was appointed secretary of state and was later reelected. he served the maximum two terms in each position. through its lobbying agreement with Jim smith, the lsCu has access to the half dozen members of the smith Ballard lobbying team. mercer Fearington, Fearington, smith, & ralston, also represents the lsCu as a multi-client lobbyist. he has been representing clients before the executive and legislative branches of Florida government since the mid-1990s. he is the past Chairman of the Florida agricultural Coalition and is a graduate of the wedgworth leadership Institute for agriculture – an affiliate of the Institute of Food and agriculture and sciences at the university of Florida. he is a graduate of mercer university and resides in tallahassee. ■

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ADVOCACY

LSCU Legislator Profile

Steve Clouse

one of the most important committees for credit unions is the house Financial services Committee, formerly the house Banking and Insurance Committee. the old committee was split, with jurisdiction over insurance issues now being held by the new house Insurance Committee, chaired by representative mike hill. Financial institution issues, such as those concerning credit unions, will be handled by the house Financial services Committee, chaired by representative steve Clouse.

How did you decide to get into politics and run for the Alabama Legislature?

I had always been interested in politics from an early age. I majored in political science in college, but I wasn’t sure if I would ever run. But as a small businessman in 1994, my frustration level got pretty high with state government; so I decided to run. I was fortunate to win; and I hope I have made a difference.

For the first time, the House of Representatives has broken up the House Banking and Insurance Committee into two committees; the House Financial Services Committee and the House Insurance Committee. What prompted the change and what are the advantages of the new structure? the name change came about because we consider a lot of legislation concerning small lenders, title loans and mortgage companies that would not be considered banks or credit unions. this is more in line with washington.

What big issues do you see coming before the House Financial Services Committee / Legislature during the next session?

I’m not sure what issues we will face with the Financial services Committee, but the legislature as a whole will be concerned with the dire situation with the education and general fund budgets.

What role do you see credit unions playing in the economic recovery?

I think credit unions now and in the future will play a significant role in the economic recovery by helping small businesses and families secure credit to move the country forward.

What needs to happen in Alabama both to recover from the recession and to move the state forward? What are our strengths we should capitalize on? the state of alabama needs to capitalize on our natural resources and our hard working workforce to continue to pull us out of the recession.

How does grassroots activism help in the legislative process? grassroots activism helps legislation stay in touch with the thoughts and sentiments of constituents in their districts. there is no better way to stay in touch. â–

representative steve Clouse was elected in 1994. he is vice president of the Clouse marketing Company. he has served as past president of the ozark rotary Club, is currently a member of the Board of directors for the ozark Boys and girls Club. representative Clouse is the former chairman of the dale County united way and is also a member of the regional revolving loan Committee.

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LSCU Legislator Profile

Marco Antonio Rubio What do you think the biggest challenges facing the new Congress will be? the biggest challenge facing the new Congress today will be creating a pro-jobs economic environment by helping the men and women in Florida and across our country who are looking to start a business or expand an existing business. we need to make it easier for them by reining in runaway and excessive government regulations. we need to get a hold of the debt crisis facing our country. and we need to give people a simple, sane, fair and affordable tax code. If we do these things, we can confront the out-of-control spending in washington, address our debt crisis and empower job creators across Florida and america.

What major legislation do you see being addressed by the Senate? the upcoming Congress is in the midst of a debate over the fiscal crisis confronting our country. the president’s recent budget proposal will only add trillions to our national debt. In the upcoming months, we will have several opportunities to cut spending and finally deal with our growing national debt. as Florida’s senator, I have also been working to repeal the president’s new health care law which is hurting small businesses and seniors in our state. From debating the budget to enacting common-sense health care reforms, I will be working on the legislation necessary to rein in out-of-control regulations, confront our debt crisis and make our tax code simpler for all americans.

What major issues should financial institutions like credit unions be watching? all businesses should be concerned with washington’s overbearing regulatory agenda. president obama’s own small Business administration estimates that the annual cost of federal regulation is more than $1.75 trillion a year, with small entities bearing much of the burden. I am hopeful that Congress will work diligently to lower the hurdles for job creators and foster an environment conducive to economic growth and prosperity for all americans.

Where do you see credit unions fitting into the nation’s economic recovery picture? the ability to obtain credit is essential to our economic recovery. unfortunately, policies coming of out of washington are increasing costs, stifling investment, and holding back everyday people from all walks of life that want to start a new business or expand an existing business. we can spur economic growth by taking the threat of tax increases in 2013 off of the table, abandoning the failed ideology of “stimulus” spending, and by injecting more accountability and transparency into our outdated regulatory process. this will help all financial institutions including credit unions.

What should credit union management, staff, and volunteers do to stay on top of new developments, both legislatively and politically?

I encourage all Floridians to visit my website at http://rubio. senate.gov to learn about my positions on legislation and to follow the important issues facing the united states senate. also, it’s important that credit unions throughout Florida take the time to communicate with me and my staff. I always enjoy hearing from businesses to get a perspective of what they are facing in this tough economy. we all must stay engaged politically and together we can navigate through this economy. ■

marco antonio rubio (born may 28, 1971) is the junior united states senator from Florida and member of the republican party. at the age of 39, he is the second youngest current u.s. senator, being only one week older than mike lee of utah. rubio was the speaker of the Florida house of representatives during the 2007 and 2008 legislative sessions. he was first elected to the Florida house on January 25, 2000, from the 111th district.

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COMPLIANCE

Compliance Corner Secure & Fair Enforcement for Mortgage Licensing Act Bill Berg, MBA, CCUE, CUCE, BSACS, VP, Regulatory Affairs & Compliance Training In July 2010, the national Credit union association (nCua) and the federal banking agencies published secure and Fair enforcement for mortgage licensing (saFe) act regulations. the rules apply to federal credit unions, federally insured state-chartered credit unions, and privately insured state-chartered credit unions. under the saFe act and the agencies’ final rules, residential mortgage loan originators employed by banks, savings associations, credit unions, or farm credit system institutions must register on the nationwide mortgage licensing system & registry (nmls). the nmls is an Internet-based system developed and maintained by the Conference of state-Bank supervisors (CsBs). the CsBs has a page on its “nmls resource Center” website which provides public information about the federal registration process, which is where it will post the forms and answer FaQs. CsBs says this page will serve as the gateway to the registration system. the law provides that credit union employees who are “mortgage loan originators” (mlos) as defined by the saFe regulations and approve a certain number of mortgage loans a year will have until July 31, 2011 to become registered in order to continue to be authorized to make residential mortgage loans, including home equity loans.

Following expiration (July 29, 2011) of the 180-day initial registration period, any employee of an agency-regulated institution who is subject to the registration requirements will be prohibited from originating residential mortgage loans without first meeting these requirements. the rules include an exception for mortgage loan originators that originated five or fewer mortgage loans during the previous 12 months and who have never been registered; they would not be required to complete the federal registration process. each credit union will have a research statistics supervision discount (rssd) number, assigned by the Federal reserve Board to initially access the registry and register the credit union into the system. the registry will then provide each credit union with a number to be used for all future saFe purposes. ■

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Resources to Help Credit Unions Comply with SAFE Act Registration Model SAFE Act Policy the Credit union national association (Cuna), in response to inquiries, has written a sample policy that credit unions may find useful to review in developing their own saFe act policy that should have been adopted by october 1, 2010. the policy is available on www.lscu.coop. (see “lsCu resources for saFe act.”)

10 Steps toward SAFE Act Registration these steps were developed by Cuna to help credit unions prepare for compliance with the act’s nationwide mortgage licensing system and registry requirements. a link to this article is included in other resource links on www.lscu.coop. (see “lsCu resources for saFe act.”)

Further information regarding the registry and the registration process may be found under other resource links on www.lscu. coop. (see “lsCu resources for saFe act.”)

LSCU Resources for SAFE Act these resources are located on www.lscu.coop under governmental affairs tab. Click on Compliance & operational support and then saFe aCt resources.

• 2011 Q1 Compliance Call recording featuring val moss, Cuna’s director of Compliance saFe act requirements.

• Q&as from the 2011 Q1 Compliance Conference Call • Cuna’s model saFe act policy (adopted last october 1, 2010), • Cuna’s top 10 FaQs • “other resource links” to regulatory websites and other pertinent information. these resources are located in the member-only section. you must log in to view the information. ■

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EXBEN-0210-5218 Rev. 1210 © CUNA Mutual Group, 2010 All Rights Reserved. sIgnal: vol. 2, Issue 1

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Director Financial Literacy Training Guidance & Resources the national Credit union association (nCua) board approved a policy that requires all directors to have or gain an understanding of basic finance and accounting principles with six months after election or appointment, or by July 27, 2011. the nCua letter to Federal Credit unions 11-FCu-02 was published by the agency detailing the financial literacy requirements of federal credit union (FCu) directors. the nCua Board approved a final rule at its december meeting that prescribes certain requirements of FCu directors, including requirements on financial literacy. the letter provides guidance on the following “base financial literacy requirements.”

• • • •

Financial statements – a director should know what each line item means and its potential effect on the FCu; various risks to the FCu – such as credit, transactional, and reputational risks; and Internal control mechanisms to control such risks.

In the letter, the nCua reiterates that directors should have the ability to examine their credit union’s balance sheet and understand specific financial activities that their credit union takes part in. “In particular, a director must understand not only how these activities generate revenue for the credit union but also, and perhaps most importantly, the various risks associated with these activities that could lead to financial loss.”

the link to the nCua letter is http://www.ncua.gov/letters/2011/ FCu/11-FCu-02.pdf. the agency’s goal is not to “increase examiner scrutiny of the financial skills of particular directors. rather, examiners will evaluate whether the credit union has a policy in place to make available the appropriate training to enhance the financial knowledge of the directors.” the nCua examiners will look for evidence of comprehensive financial training during their inspections and evaluate whether a given credit union has the policies needed to offer appropriate training to its directors. directors will not be required to take a test and completion of the course will provide “safe harbor.” without “safe harbor,” it is possible that a director might be asked about their familiarity with the balance sheet and income and expense sheets and how they interact together.

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the lsCu will offer training sessions during the lsCu state governmental affairs Conferences (gaC) in both states: state gaC in alabama, march 31, 9:45am – noon Ct; state gaC in Florida, april 12, 9:30am – 11:30am et. training will also be available in June during the lsCu annual Convention & exposition in orlando. nCua’s office of small Credit union Initiatives (osCuI) will be offering free training workshops around the country and will make a training dvd available in may. Because the level of necessary financial literacy depends on the size and complexity of the FCu, this training should suffice for small non-complex FCus. ■

a magazine of the League of Southeastern Credit Unions

sIgnal: vol. 2, Issue 1

Regulatory Q&A Bruce Ricca, Bureau Chief

Q:

What role do you see credit unions playing for members in this economy?

A: the current economy presents an opportunity for credit unions to step up and provide their products and services to new clientele. during these difficult financial times, our credit unions are uniquely positioned to provide members with needed and added value services like financial counseling and consulting. In addition, with the uncertainty in the residential mortgage market, such as issues with the Federal national mortgage association (Fannie mae) and Federal home loan mortgage Corporation (Freddie mac) along with the loss of some large residential mortgage lenders, credit unions have an opportunity to obtain a greater share of this valuable market.

Q:

Communication has been a hot topic with the NCUA. How are you ensuring that OFR has good communications with credit unions?

A: our examination staff regularly makes contact with our credit unions through personal visits, telephone calls, and email correspondence. the office has an open door policy and encourages financial institutions to call anyone in the organization with any questions or issues. I believe our open door policy is extremely beneficial to both the credit unions and regulator, allowing for continuous, open, and honest dialogue.

Bruce Ricca, Bureau Chief

Q:

If a credit union has an issue that might come up, how do you handle the resolution of the problem?

A: Consistency and fairness are paramount to good regulatory practices. over the past 23 years, I have found financial institutions strongly desire and greatly appreciate a quick and well-reasoned response to their issue; even when the result is not necessarily the one they wanted. having a relatively quick response allows the credit union to regroup, re-strategize, and move forward as quickly as possible.

Bruce Ricca was recently named the Bureau Chief, Bureau of Credit Union Regulation for the Florida Office of Financial Regulation. He replaced Robert Hayes in December, 2010. Ricca can be contacted at 850.410.9800. â–

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INITIATIVES

Cooperative Initiatives Credit Unions & Financial Education Laura Vann, VP, Cooperative Initiatives In today’s world, financial education is fundamental, especially with the current economic landscape. It’s a foundational issue that needs to be taught in schools, at home, and in the workplace in order for people to take control of their financial lives. “while many people have been given the opportunity to pursue academic or professional degrees, they have not been given access to the resources necessary to acquire a strong financial education,” said amber tynan, executive director, southeastern Credit union Foundation for the lsCu. tynan serves as the team leader for the lsCu’s financial education initiatives. “this huge gap continues to show in our credit union members’ financial choices, as evidenced through an increase in bankruptcies and foreclosures,” tynan added. understanding the growing need for this type of education, credit unions in both alabama and Florida are finding cost-effective ways to offer financial education services to members of all ages. according to tynan, the goal is to enable members to better understand their financial position and take control of their finances. “the lsCu wants to make sure that credit unions are the first place consumers turn to for reliable and comprehensive financial management information, advice, and education,” she said.

It is the lsCu’s commitment to provide credit unions in alabama and Florida with the resources to implement a financial education program that meets the needs of varied memberships. If members are given the tools to make wise financial decisions, the end result can be a positive impact on the credit union’s bottom line.

Innovative and effective programs are offered by credit unions of all sizes in both states. In this article, six successful credit union financial education programs are highlighted.

“Got Green?” Program south Florida educational Federal Credit union (sFeFCu) in miami, Fl with $724 million in assets is a select employee group (seg) based credit union that understands their niche market. as a direct benefit of adding students into their field of membership, the credit union created a financial literacy program to educate students and build their knowledge of financial success. their “got green?” program was recognized in 2010 with the 23rd annual Commissioner’s Business recognition award through the department of education. this unique program is available at no cost to all miami-dade County public schools and miami-dade college students, reaching more than 30,000 students to date, according to steve webb, sFeFCu vice president of Communications & public relations.

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topics included in this program include money management, budgeting, the importance of savings and checking accounts, building and maintaining good credit, the true cost of a college education, trends in identity theft, and resume writing and interviewing skills. as part of their financial enrichment program, sFeFCu even offers occupational experience through internships to build upon their knowledge they learned through the got green curriculum. “we’ve made it a commitment to the educational community to help our youth take charge of their finances,” said webb. the program has grown to include in-school credit union branches; credit union scholarship programs; and mad City money, a reality exercise where participants receive an occupation and salary, student loan and/or debt owed, credit card debt owed and cost of medical insurance. some participants have spouses, others are single, and some will be single parents. Based on this information, they are tasked with creating a monthly budget on their incomes, visiting nine merchants in mad City to purchase housing, transportation, food, day care, and other needs. there’s a mall for wants and, of course, sFeFCu for financial services. participants will get a dose of reality if they have a brush with the “Fickle Finger of Fate” who randomly visits each student with a “life happens” card for unexpected expenses or windfalls (www.sfefcu.org).

In-School Branches suncoast schools Federal Credit union (sFeFCu) in tampa, Fl is one of several alabama and Florida credit unions with inschool branches. suncoast schools Federal Credit union in tampa leads the way with 32 in-school branches. according to Cuna, about 246 credit unions nationwide maintain branch offices in 936

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Cooperative Initiatives (Continued) schools. “serving members in the workplace is a long-standing credit union specialty,” said Cuna president/Ceo Bill Cheney. “and serving youth in the k-12 ‘workplace’ is a sterling example of credit union uniqueness.” to help more alabama and Florida credit unions establish in-school branches, suncoast schools Federal Credit union will present a breakout session at the annual Convention & exposition in June.

National Endowment for Financial Education For a number of years, the lsCu and Cuna have partnered with the national endowment for Financial education (neFe) to provide resources for delivering financial education in the classroom. since 2001, more than 380,000 neFe high school Financial planning program (neFe hsFpp) student guides have been distributed at schools in alabama and Florida. all materials in the neFe hsFpp are available at no cost. to view the comprehensive program materials, visit hsfpp.nefe.org. despite the efforts of credit unions regionally and the availability of free resources, many public schools have other priorities that prohibit them from offering a financial education course. according to the neFe hsFpp, nearly 33 percent of teens owe money to either a person or company, with an average debt of $230. about 26 percent of teens ages 16-18 already have more than $1,000 in debt. students are graduating from college with more debt than ever; they are financially burdened even before their careers begin. to help eliminate the amount of debt students accumulate before graduation, credit unions are partnering with local colleges and universities to help reverse negative habits.

Center for Financial Literacy at UNA listerhill Credit union (www.listerhill.com) in muscle shoals, al has $497 million in assets and is a community-based credit union. listerhill has developed a partnership with the university of north alabama (una) in Florence, al to create the Center for Financial literacy on the una campus. the center includes a studentoperated branch (the hill) which offers a variety of financial products and services for students, faculty, alumni, staff, and the community. It’s designed to encourage students and young people from the community to come and receive sound financial advice in a peer-to-peer environment.

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their partnership with una included a $625,000 gift to the university’s new academic center and student commons, where the Center for Financial literacy and the hill is housed. “we are delighted to join una in this effort to equip young people with knowledge and concepts needed for sound financial futures,” said Brad green, president/Ceo of listerhill Credit union. “we hope the knowledge shared there will greatly impact and transform the financial futures of students and others across this community.” reaching an age milestone, graduating from college, or any of the other traditional signs of “adulthood” does not mean that the need for financial education ends. adults are confronted by increasingly complicated choices and have increasing responsibility for financial well-being. as former chairman of the Federal reserve Bank alan greenspan has said, “today’s financial world is highly complex when compared with that of a generation ago.”

BALANCE Financial Fitness Program Credit unions are looking at a variety of solutions to meet the financial needs of adult members. alabama Credit union (www.alabamacu.com) in tuscaloosa, al with $387 million in assets offers its members a cost-effective alternative for financial education through their BalanCe Financial Fitness program. this program offers an array of financial education materials that members can access on BalanCe’s website, coupled with options for personal

financial counseling. these services are offered at no cost to the members and the credit union found it to be a win-win situation. alabama Credit union leverages their partnership with the BalanCe program to assist with adding potential sponsor groups. It shows that the credit union is committed to improving the employee’s standard of living, a critical component to penetrating new markets. “our partnership with BalanCe continues to prove itself as invaluable. even if the services help to prevent even a small percentage of our members from bankruptcy, or assists them with learning to budget so they can continue to make their loan payments with us, it saves money for alabama Credit union,” said steve swofford, president of alabama Credit union.

Financial Education in Prison System regardless of asset size, credit unions can have an impact in their local communities. tree Capital Credit union (www.treecapitalcu.com) in perry, Fl with $17 million in assets works locally within the prison system to offer financial education tools and skills to inmates set to be released. the goal is to give the inmates the skills they need to live in the community and thrive financially. “It’s a development program that’s necessary in our community where the majority of the population is low-income and crime is on the rise,” said kay green, Ceo of tree Capital Credit union.

Free Financial Education Seminars nrs Community development Federal Credit union (www.nrsfcu.org), $900,000 in assets and located in Birmingham, al and north dade Community development Federal Credit union (www.northdadecdfcu.net), $4 million in assets located in miami gardens, Fl, offer free seminars on topics such as budgeting, understanding your credit report, and identity theft. the lsCu wants to empower its member credit unions to offer information and knowledge to members so credit union members will make smart choices and take charge of their financial lives. the programs mentioned in this article represent only a small portion of the great works of credit unions in communities throughout alabama and Florida. tell us what your credit union is doing to ensure that your members will have a secure financial future. the lsCu includes best practices on the Cooperative Initiatives page on www.lscu.coop and on its Financial literacy outreach program Facebook page. our Communications department can also help your credit union gain enhanced media coverage on your successful financial education efforts. Contact amber tynan at amber.tynan@lscu.coop or visit our Facebook page, search: lsCu Financial literacy outreach program.

Credit unions are also encouraged to submit entries for the 2011 desjardins youth and adult Financial education awards. Cuna’s

Center for personal Finance created the desjardins program to recognize leadership within the credit union movement on behalf of financial literacy for all ages. the recognition program considers all activities supporting the personal finance education of members and nonmembers, including, but not limited to, face-to-face teaching using proprietary materials and curricula such as the neFe high school Financial planning program® (hsFpp) as well as financial literacy leadership efforts. For more information, visit www.lscu.coop/ Cooperative-Initiatives/Cu-award-programs. ■

New Standard Chapter Bylaws Developed for LSCU Chapters the lsCu Board of directors has approved new standard chapter bylaws for the 20 chapters of credit unions in alabama and Florida. during the first quarter, each chapter will be asking their membership to approve these bylaws. “the 12 Florida chapters were operating under a uniform set of bylaws,” said patrick la pine, president and Ceo of the lsCu, “but the eight alabama chapters were operating under eight different bylaws and some had not been updated since the 1970s.” “the need for consistency in the basic operating procedures of the chapters was identified as a priority at the first annual lsCu Chapter leaders’ retreat,” said laura vann, vice presidentCooperative Initiatives. a Chapter Bylaws working group was appointed and conducted a line-by-line comparison of the nine different sets of bylaws. the group then developed the lsCu standard Chapter Bylaws, incorporating some opportunities for flexibility in chapter operations. the Chapter Bylaws working group members included paul numbers (Ceo, state employees Credit union, Jacksonville) – northeast Fl Chapter; June landrum (area Branch manager, alabama Credit union, huntsville) – northeast (al) Chapter; pamela griffiths (vp-marketing, railroad & Industrial Credit union, tampa) – tampa Chapter; Joe alicea (senior vp-technology, pBC Credit union, palm Beach) – palm Beach Chapter; deborah mcrae (vp-member service, Five star Credit union, dothan) – wiregrass Chapter; and michele willis (vp-marketing & Business development, legacy Community Federal Credit union, Birmingham) – Birmingham Chapter. ■ sIgnal: vol. 2, Issue 1

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2011 LSCU Annual Convention & Exposition In the spirit of unity and cooperation, the LSCU continues to work with Alabama and Florida credit unions and industry partners to help define our future as movement. It is in this spirit of teamwork that we invite you to join us for the LSCU’s 2nd Annual Convention & Exposition (AC&E).

The beautiful JW Marriott Orlando Grande Lakes Resort will once again provide the backdrop for this event, to be held June 16-19, 2011. This year’s AC&E will occur Thursday through Saturday, a change in rotation from our traditional Wednesday through Friday dates. We have made modifications to the schedule to accommodate the change in rotation, and credit union officials and staff will participate in three days of relevant and informative activities that can be utilized for optimal performance and success.

Be sure to register and make travel arrangements early, as the hotel has regularly sold out weeks prior to the conference. Here is a glimpse of some of the scheduled events: • General Closing Session Keynote Speaker MSNBC’s Joe Scarborough • One Full Day of Pre-Conference Workshops • Two Full Days of Concurrent Educational Sessions • Six Exclusive Exhibit Hall Hours • Offsite Guest Tours & Specialty Classes • Annual Golf Tournament Benefiting Children’s Miracle Network (CMN) • Gala Dinner, Entertainment, & Silent Auction (Benefiting CMN) • Annual Business Meeting Guest Speakers Include NCUA Chairman Debbie Matz

Debbie Matz

Visit www.lscuconvention.com to review the detailed agenda as it becomes available, register online, and check out the events surrounding Convention.

EDUCATION

League Education New Webinar Training Program a Hit with LSCU Credit Unions the lsCu’s partnership with Financial education & development Inc. to offer webinar training to member credit unions has been a great success. since the start of the partnership in January of this year, more than 265 registrations have been received to date (mid February). why so popular? webinars are a convenient and cost effective training method for credit unions today. the synergy of this webinar “network” allows successful delivery of more than 80 webinars annually covering critical issues for every credit union employee. the lineup of dynamic webinar topics is designed for every staff member in the credit union. each webinar may serve as training for as many people as needed for one price in the comfort of the credit union’s office or training room. there are no travel expenses or time away from the office. and, if you are unable to attend the live event, archived versions of the webinars, as well as other options, are available for purchase. to view upcoming webinars, visit April 2011 www.lscu.coop, click on the events calendar, and check 5 when a loan member dies the “distance learning” box. ■ 6 alternatives to Collateral Foreclosure 6 Bank Secrecy Act Training Workshop Mobile, AL 12 Firewalls: Compliance guidelines & authentication rules 13 Impaired loans & the alll 13-14 LSCU Governmental Affairs Conference Tallahassee, FL 19 unauthorized, revocation & stop payment: which one do I use?

20 mandatory Compliance training series: regulation CC & Funds availability rules June 16, 2011 | 4pm – 7pm 26-27 LSCU Chapter Leaders Conference June 17, 2011 | 3pm – 6pm Pensacola, FL The wormhole awaits, stationed 27 the supervisory Committee’s role & responsibilities to connect participants from the 28 Imaged documents: what to keep, what to shred & what present to a future of proven holds up in Court business solutions. In a world filled May 2011 with unknown parallels and opportunities, the Exhibit Hall provides innovative discoveries for a revolutionized future 4 Consumer lending series: the truth about Credit scores with more than 130 exhibitors. for lenders 5 managing e-sign, e-statements, & e-disclosure Thursday features an exclusive CEO Invitation Only event with an open bar and hors d’oeuvres for invited participants 10 Improving your delinquency numbers with Cost-effective from 4pm – 5:30pm. The Exhibit Hall will open for all Collection techniques conference participants from 5:30pm – 7pm. Friday features 11 line-by-line loan review: what you need to know a three-hour Happy Hour for all participants with snacks, a 18 Bank Secrecy Act Training Workshop cash bar, and entertainment.

Birmingham, AL NEW THIS YEAR: ONE-ON-ONE MEETINGS 18 proper repossession, notice & sale of non-real Meet one-on-one with a chosen exhibitor of your choice from estate Collateral 10am – 3pm on Friday. This is a great way to review a contract, 19 respa now: gFe & hud-1 Compliance discuss goals, participate in a product demonstration, or 25 Connecting the dots: regulations e & dd Compliance conduct other business during the Convention!

Upcoming Events

Transport into

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COMMUNICATIONS

Communications Cooperation Will Lead to Statewide Image Campaign Success Mike Bridges, VP, Communications & Marketing In February, the move your money project Facebook page had an interesting post by a person saying they were closing their account from Chase because of excessive fees. the teller at the bank told this person that they were seeing an average of 10 people per day closing accounts because the number of account fees was rising. what does this say about the opportunity right now for credit unions? Consumers continue to be upset with the larger, for-profit financial institutions.

In 2007, the research company sIr, contracted by the Florida Credit union league, found some amazing statistics. sixty percent of consumers in the southeast don’t know what a credit union is or know if they can join one. dennis dollar, Ceo of dollar and associates, llC, recently said in an lsCu audio podcast that among his credit union clients, the average number of members that have their main checking account with another financial institution is 42 percent. Credit unions have a large number of consumers to go after. But, how can they bring them into the credit union and begin building a relationship? a cooperative image campaign is the first step for credit unions. a few years ago, pennsylvania credit unions were not seeing any membership growth. the pennsylvania Credit union association (pCua) embarked on the “I Belong” campaign. Immediately credit unions began seeing membership numbers increase. In 2010, pennsylvania credit unions saw a two percent growth in membership while experiencing significant growth in assets and loans. the pCua reports that those numbers can be directly traced back to a greater awareness of credit unions among potential members. similar results can be traced back to image campaigns in new Jersey and michigan. the lsCu is currently fundraising for the alabama and Florida statewide Image Campaign that will take place in the fall. the league began talking to credit unions about the campaign in the fourth quarter of 2010 and throughout the first quarter of 2011. the message has been that, through a cooperative image campaign, the participating credit unions in alabama and Florida will see the benefit. the plan for the campaign is to get people familiar with what credit unions do and how they contrast with banks. according to a gallup poll, just a fifth of americans surveyed gave bankers ‘high’ or ‘very high’ ratings for honesty and ethics. that’s the lowest rating since gallup began asking the question in 1977. stating this

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statistic doesn’t mean that the lsCu Image Campaign will target banks; it only reinforces that the opportunity is there to persuade new members.

Before the campaign is rolled out, the league will conduct consumer research to gauge the awareness of credit unions before the campaign and then conduct research again after the campaign. this will give good, hard data that will reflect the effectiveness of the campaign. Because 2012 is an election year, the plan is to turn around and roll out the 2012 campaign in the spring. this will put the cooperative credit union message in media markets across alabama and Florida twice in eight months.

According to a Gallup poll, just a fifth of Americans surveyed gave bankers ‘high’ or ‘very high’ ratings for honesty and ethics.

That’s the lowest rating since Gallup began asking the question in 1977.

Credit unions have thrived for nearly 100 years because of their cooperative nature. Collectively credit unions can speak louder with one voice rather than as a number of smaller voices. the lsCu statewide Image Campaign will only be as successful as the cooperative spirit of member credit unions. so far the campaign has seen a number of billion dollar credit unions from both states submit their “fair share” all the way down to credit unions with less than $10 million in assets. Credit unions have always been different in the way they operate; it’s time more consumers understand why members feel the credit union difference every day.

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

You’re focused on your bottom line.

So are we.

Contact Credit Union 24 today to learn how we can help grow your membership.

(877) 570-2824 | www.cu24.com

NEWS

League News CUNA’s Cheney Meets with Member Credit Unions Credit unions in pensacola, tallahassee, and south Florida met with Cuna president/Ceo Bill Cheney at town hall meetings in January. the meetings gave credit unions a chance to meet the new Cuna Ceo and hear about Cuna’s regulatory and legislative priorities for 2011.

Cheney cited examples of credit unions making an impression on legislators. several members of Congress approached him to point out the great work credit unions are doing and that they were aware that credit unions didn’t cause the financial crisis. with 107 new legislators, Cheney says the attitude of the 112th Congress is “what can we do to help people be better and successful.” on nCua’s proposed regulations, Cheney said they supported a provision to count section 208 assistance as net worth; questioned the provision that would allow nCua to borrow money from the treasury to help pay for corporate credit union losses; and opposed reviving expired legal claims, allowing nCua to bring action on any claim on which the statute of limitations has expired.

In closing, Cheney said they will be making stronger grassroots efforts by determining how every one of the 535 lawmakers stands on credit unions. Credit unions must collectively show legislators how important credit unions are to members across the country. ■

Credit Unions Visit the Hill During the CUNA GAC more than 130 credit union officials, along with lsCu staff, attended the Cuna gaC in washington d.C. February 27 – march 3. this was 11 more than last year and included 33 first timers. during the lsCu’s hospitality events, including a welcome reception, credit unions had the opportunity to network about their day and receive the latest information before hill visits later in the week. that wednesday, the lsCu contingent began hill visits, starting with a gathering backstage at the Cuna gaC with house Financial services Committee Chairman spencer Bachus (r-al). Bachus, a featured speaker at the gaC, met with officials from alabama and Florida. also backstage, many Florida credit unions met with rep. debbie wasserman-schultz (d-Fl). rep. wassermanschultz, also a featured speaker at the gaC, told the group that there are lawmakers in washington willing to fight for credit unions. she said the durbin amendment was flawed and needed work and that the interchange issue may have left the station, but there was still time to get it right.

In all, the lsCu contingent met with 30 federal lawmakers and staff on wednesday and four senate staff thursday. the hill visit messages centered on preserving the tax exemption, interchange fees, member business lending, and supplemental capital. the lawmakers were receptive to the visits and many asked pointed questions about each topic. look for a complete recap of the Cuna gaC in the second-quarter edition of signal magazine. visit the lsCu video Center at www.lscu.coop to see daily videos from the Cuna gaC that featured the convention, hill visits, nCua Chairman debbie matz, and credit union officials from alabama and Florida. ■

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Rep. Alcee Hastings Hill Visit

Terry West (2nd from the left) on a Corporate Stabilization Panel

LSCU’s Robbie Gordon & Justin Thames greet guests in the League’s hospitality suite at CUNA GAC

INDUSTRY

Board Governance Strong Board Governance Can Lead to a Stronger Credit Union Credit unions are under pressure from many sources right now. the regulatory burden is increasing while the nCua is asking all credit union directors to become compliant by taking a financial literacy training course.

It’s critically important that credit unions have a strong board of directors in place. as unpaid volunteers, credit union directors are charged with setting the policy for the financial institution, as well as being part of the public face of the credit union.

Credit union Ceos work with their boards trying to refine the process of helping them to be as successful as possible. here are a few reminders of what boards should be doing: 1. setting the policy for the organization 2. monitoring the organization’s operations 3. serving as a public figure for the organization 4. Fulfilling other board responsibilities a board of directors also has certain legal obligations, known as duties. the details may vary from state to state, but here are some common legal responsibilities for members of non-profit boards to: • take reasonable care when making decisions for the organization (called “duty of care”) • act in the best interest of the organization (called “duty of loyalty”) • act in accordance with the organization’s mission (called “duty of obedience”) • stand aside when there is a conflict of interest (called “recusal”) Board members should avoid being over- or under-involved. the board should not concern itself with the day-to-day management of the organization. that is the Ceo’s job. the board needs to be an independent decision-making body. here’s a look at a specific example of how a board of directors worked together to improve the organization. this example comes from dennis C. miller and associates.

Problem tom is president/Ceo of one of the largest chapters of make-awish Foundation of america. he’s a passionate and inspirational leader who runs an efficient chapter in new Jersey. under his leadership, his chapter has been able to ensure that every child with a life-threatening medical condition in new Jersey has their “wish” come true.

In order to fund the granting of these wishes, the chapter raises $6 million a year ranking them in the top five chapters nationally. while other Ceos may be happy with this success, tom’s passion drives him to constantly seek new levels of achievement to ensure that more children can have their “wish” granted.

tom and his board chair knew that to reach a new level of success, they needed to further motivate and engage their board members in the strategic and philanthropic initiatives of the chapter. tom contacted dennis miller to perform a comprehensive board performance assessment.

Solution dennis used a two-pronged approach for the performance assessment. First, he requested a list of informational items to review. this included board plans, actions and discussions related to vision and goal setting, board minutes for the past year, strategic plans, recruitment plans, current board committee structure and purpose, by-laws and board leadership succession planning. second, he confidentially interviewed all board members as well as the chapter’s executive team. the interviews are an extremely important tool in assessing the board’s performance because they measure the level of the board’s passion, engagement and connection to the organization. dennis’ recommendations highlighted the strengths of the board while offering a list of enhancements for improving the work of the board and increasing their level of engagement. they included: 1. Improve the use of their executive committee.

2. have the executive board meet only when emergency issues arise 3. Create a governance committee to replace the current board nominating committee 4. develop a process for board recruitment and reappointment 5. utilize the talents and skills of the board members on other committees as well as the appropriate use of advisory and honorary boards

Results the recommendations dennis provided were unanimously approved by the board. It guided them in developing a priority list of goals to implement. In addition, a steering committee was appointed to ensure the successful implementation of all recommendations.

Based on follow-up meetings with tom and the board leadership team, the chapter is on track to reach the next level of success and grant more “wishes.” as a credit union board, having a vision, a plan and working with the Ceo will spell success. take your position as a board director serious and the outside influences like the economy or regulatory burdens will not undermine the strength of your credit union. ■

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LEVERAGE

A Snapshot of LEVERAGE Successes in 2010

exactly one year ago LEVERAGE was launched to credit unions throughout alabama, Florida, and beyond. we promised to provide “access to best-in-class solutions, helping credit unions leverage buying power, utilize industry knowledge to increase credit union performance, reduce operating costs, and promote future growth.” not only have credit union clients found our services to surpass their expectations, but we have successfully stayed true to our promises and look forward to delivering the same high standard in 2011. our credit union clients have experienced significant gains based on our commitment to the industry and our promises to help them buckle down on expenditures as well as streamline mary elicia del santo processes to gain performance efficiencies. vp Business development In 2010, LEVERAGE chargeback services managed more than 350,000 outstanding cards and handled disputes and fraud cases against 14,360 transactions. In the last six months, $218,509 in 866.231.0545 me.delsanto@myleverage.com fraud losses for credit unions were recovered. www.myleverage.com the gift card program reached an all-time high and earned credit unions more than $25,000 in additional fee-based income. the program offers a simple web-based application to load cards, a variety of card designs, and low implementation costs.

Credit unions generated more than $442,000 in non-interest income through their participation in the sprint member discount program. as checks were delivered in early december 2010, many found their unexpected revenue surprising considering the no cost, easy-to-implement steps required to get their credit union on the program. as more credit unions utilize LEVERAGE’s strategic purchasing program, they are seeing significant savings. the september 2010 armored Car services event created a collective 36.3 percent savings on an almost $1 million purchase from prior year costs. a second armored car services event was held in december 2010 created a collective 58 percent savings. an enterprise risk management software event was held in november 2010 and produced a total savings of 12.1 percent. the ventelligence epurchasing platform held several purchasing events in the first quarter 2011 and will share results in future communications. we will be expanding our commodity portfolio to include teller cash dispensers and maintenance services for our credit unions in april and may of 2011. the products and services we provide help streamline processes and maximize savings for our credit union clients. the LEVERAGE team would like to thank everyone for their continued support as our services continue to grow. what was presented here is only a snapshot of the success credit unions experienced in 2010. we plan to increase our recognition in 2011 on a national level to increase the spend volume of our local alabama and Florida credit unions to maximize potential savings. ■

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Contract Lifecycle Management: Maximizing Financial & Operational Performance Lori Vary, Director, ePurchasing Continued pressures to reduce costs and improve spending visibility and control are fueling a strategic buying revolution among credit unions, according to the aberdeen group’s latest benchmark study of more than 130 mid-size companies. traditional and uninformed buying practices will not deliver bottom line savings or the performance required to survive in today’s economy.

It is because of these pressures that Contract lifecycle management (Clm) is becoming a beneficial process in maximizing performances, both financially and operationally. Clm is the management of contract creation, execution, and analysis as a systematic and connected process for the purpose of maximizing financial and operational performance and minimizing risks.

Clm consists of contract management; risk assessment and due diligence; and strategic purchasing.

Contract Management this is the first step in overcoming the struggle of properly managing a contract’s lifecycle. Credit unions need to know what contracts they have…every contract, from your lawn maintenance company to your debit processing company. many organizations have multiple people managing multiple contracts through various methods and have a difficult time determining where contracts are stored and when they are coming up for renewal.

Finding an automated contract management system that streamlines your vendor management process can reduce the amount of time and energy when identifying the key information that you want to view and track. It’s also important to set up notifications to ensure contract review happens in a timely manner to avoid a lapse in service, a commitment to a service that may not be needed, and automatic renewals which can lead to increased pricing.

Risk Assessment & Due Diligence with stricter nCua guidelines, it is essential for credit unions to assess the risk for each third party agreement. this part of Clm groups third-party vendor relationships into three categories; high, moderate, and low. Categories are determined based upon the complexity of each relationship, with consideration given to the level of exposure, threat likelihood, impact, and more. all risk assessments should be developed in accordance with nCua-identified risk areas.

Based on the results from each third party vendor risk assessment, the appropriate level of due diligence needs to be identified by your management team. sample due diligence templates include:

• due diligence Checklist: helps credit unions facilitate the due diligence process and organize critical information pertaining to each vendor relationship.

• due diligence Questionnaire: requests information directly from third party vendors on their products or services.

• monitoring Checklist: helps credit unions determine the level of due diligence follow-up and periodic reviews that will be required throughout the lifecycle of an existing contract.

• legal review Checklist: utilized as a credit union’s area to review for key contract clauses. upon completion of the due diligence, notifications should be implemented within the contract management system which will monitor the process throughout the life cycle of the contract in an efficient and timely manner.

Strategic Purchasing another important part of this lifecycle management is strategic purchasing. outdated or ineffective buying procedures can create insufficient spending volumes. By redefining the traditional purchasing process with new strategies, credit unions can leverage their buying power through innovative epurchasing platforms. an example of such a platform is LEVERAGE’s ventelligence epurchasing platform. purchasing processes are facilitated in an automated environment, concluding with a live bidding event which encourages vendors to aggressively bid against their competitors, resulting in unparalleled savings over traditional purchasing methods. this epurchasing platform has a number of features including an effectively managed rFp process, enhanced vendor communication and response management, selective vendor analysis and discovery, and ongoing comprehensive support services. with purchasing categories ranging from janitorial services to armored cars services, sealed bid and live bidding event options help credit unions achieve significant bottom-line results on products and services, with an average immediate savings of more than 20 percent in the first year.

For more information on how better contract lifecycle management can save your credit union staff time and money, contact lori vary, director of epurchasing, at lori.vary@myleverage.com or call 941.747.9646. ■

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LEVERAGE

Debt Protection Now Available to Florida Credit Unions through CUNA Mutual Group as of late december, Cuna mutual group (Cmg) is the first company to have debt protection rates approved in Florida for credit unions. this was no easy fete. For many years including three legislative terms, Cuna mutual has been working with the lsCu and lobbying for this product to be available. this makes Florida the last state to approve.

What Does Debt Protection Provide?

• helps protect member finances and credit rating if the unexpected happens • available for consumer and home equity loans • Cancels a member’s loan balance or reduces repayment of a loan debt when specified life events occur • easy enrollment and simple eligibility requirements • safeguards credit union loan portfolio • prevents loan defaults in the event of specific life events • no insurance licensing required • provides non-interest income for credit union although debt protection is not for every credit union, it does afford additional benefits such as involuntary unemployment protection for members, the ability for credit unions to design program benefits with Cuna mutual, and set the retail price, avoid staff licensing, and extending the credit union brand (debt protection can be private-labeled from Cmg).

Cmg provides an excellent solution to meet member and credit union needs and the company has more credit union clients on debt protection than any other provider in the credit union industry. Cmg works with the credit union to assess its needs and find the right solution – which may include debt protection.

Cmg will be holding town hall meetings to help credit unions understand this product. an invitation will be sent to credit unions with the dates and times of these meetings that will be held within the next few weeks.

For more information, visit Cuna mutual group’s website, www.cunamutual.com, or contact a Cuna mutual sales executive. ■

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Product Development Profile Innovation through Collaboration John Brumit, LEVERAGE Product Development Manager LEVERAGE, the lsCu service Corporation, understands the pressures that credit unions are facing given a weak economy and a rapidly changing regulatory environment. Credit unions have been forced to operate more efficiently, reduce operational costs, and seek out new sources of revenue. our approach to new product development focuses on innovation through collaboration to provide our credit unions access to research, development, and delivery of superior, high-value products and services. we are engaged in developing new solutions that will help credit unions reduce costs, increase revenue, as well as attract and retain members.

LEVERAGE has an active number of products in our development pipeline. one of our current initiatives involves developing a solution that will help credit unions combat mounting compliance costs. we are currently in the assessment phase of this project and we are actively interviewing credit unions to determine needs.

LEVERAGE also has an ownership interest in members development Company (mdC), a partnership between credit unions, corporates, leagues, and Cuna mutual. as a member of this dynamic organization, we have gained access to a variety of top consulting firms as well as research on cutting-edge products and services which will help us serve you better. a few notable mdC projects currently in the works include mobile payments, predictive analytics, and massive back office collaboration. we receive ideas from a number of different sources but the most important input comes from our credit unions. we’d like to hear more about your challenges and determine if there is a way we can work together to develop a collaborative solution.

If you would like to discuss a challenge that your credit union is currently facing to determine if LEVERAGE can help, contact John at john.brumit@myleverage.com or 866.231.0545, x1120. ■

CO-OP THINK 11 Conference Created to foster a more progressive credit union movement, Co-op presents the 11th annual thInk Conference. hear experts from brands like microsoft and Cnn, along with skateboard legend and entrepreneur tony hawk, and take home visionary ideas you can implement at your own credit union.

May 14-18, 2011 Disney’s Grand Californian Hotel & Spa Anaheim, CA For more information, visit www.co-opthink.org.

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DIRECTORY

LSCU Directory LEAGUE 22 Inverness Center pkwy, ste 200 Birmingham, alabama, 35242 3773 Commonwealth Blvd tallahassee, Florida 32303

Administration patrick la pine, x2113(al) x1002(Fl) president & Ceo patrick.lapine@lscu.coop Cassandra grayson, x1004 association services Chief of staff cassandra.grayson@lscu.coop teresa gray, x2110 executive assistant to the president teresa.gray@lscu.coop

Communications mike Bridges, x1022 vp, Communications & marketing mike.bridges@lscu.coop amy Jowers, x1020 director, Information services amy.jowers@lscu.coop Joseph davis, x1014 Communications Coordinator joseph.davis@lscu.coop

Compliance Bill Berg, x1028 vp, regulatory affairs & Compliance training bill.berg@lscu.coop scott morris, x2165 director, Compliance scott.morris@lscu.coop

Cooperative Initiatives laura vann, x2181 vp, Cooperative Initiatives laura.vann@lscu.coop adena whitman, x2134 director, member relations adena.whitman@lscu.coop

LEVERAGE david lenoir, x2158 member relations specialist david.lenoir@lscu.coop Jeanie henson, x1038 member relations specialist jeanie.henson@lscu.coop amber tynan, x1154 executive director, southeastern Credit union Foundation amber.tynan@lscu.coop

Education Joy service, x2162 director, education & training joy.service@lscu.coop Julianne talley, x1148 director, events julianne.talley@lscu.coop Brandy norvell, x2172 events Coordinator brandy.norvell@lscu.coop Becki payne, x2129 association services support specialist becki.payne@lscu.coop

Governmental Affairs will mcCarty, x2137 svp, governmental affairs will.mccarty@lscu.coop Jason Cochran, x2159 director, legislative affairs (al) jason.cochran@lscu.coop Jared ross, x1012 director, legislative affairs (Fl) jared.ross@lscu.coop robbie gordon, x2164 grassroots & political action Coordinator (al) robbie.gordon@lscu.coop Justin thames, x1010 grassroots & political action Coordinator (Fl) justin.thames@lscu.coop tracy schimansky, x1008 association services support specialist tracy.schimansky@lscu.coop

Finance & Administration scott morgan, x1110 svp, Finance & administration scott.morgan@lscu.coop angie moyer, x1116 director, accounting angie.moyer@lscu.coop susan sungelo, x2153 CusC accountant susan.sungelo@lscu.coop mike Couey, x2136 accounting manager mike.couey@lscu.coop Chris staggs, x2127 staff accountant chris.staggs@lscu.coop angie meisenheimer, x1114 staff accountant angie.meisenheimer@lscu.coop mary kirkham, x1118 staff accountant mary.kirkham@lscu.coop Cathy Cameron, x1054 operations assistant cathy.cameron@lscu.coop sue mckenzie, x1124 operations assistant sue.mckenzie@lscu.coop phillip tyre, x1132 director, Information technology phillip.tyre@lscu.coop david khoury, x1136 network administrator david.khoury@lscu.coop william ross, x1134 Information technology specialist william.ross@lscu.coop

LEVERAGE toll Free number 866.231.0545 marvin garland, x1102 evp & Coo marvin.garland@myleverage.com Brooke Collins, x1050 service Corporation support specialist brooke.collins@myleverage.com

Transactional Services larry rodriguez, x2169 vp, transactional services larry.rodriguez@myleverage.com Janice Jordan, x2176 director, transactional services janice.jordan@myleverage.com win Cooper, x2115 sr. transactional services specialist win.cooper@myleverage.com tameka dukes, x2178 shared Branching manager tameka.dukes@lscu.coop Chris dirmann, x1182 director, Card services chris.dirmann@myleverage.com david todd, x1198 member services representative david.todd@myleverage.com robert plant, x1194 p/t member services representative robert.plant@myleverage.com giles paul, x1200 p/t File Clerk giles.paul@myleverage.com angela harris, x1190 Card services manager angela.harris@myleverage.com amy Bryant, x1196 sr. member services representative amy.bryant@myleverage.com nikki anderson, x1184 member services representative nikki.anderson@myleverage.com Barbara parsont, x1186 p/t member services representative barbara.parsont@myleverage.com

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Audit & Compliance

Product Development

CU Members Mortgage

Telecom Recovery

angelic pritchett, x2133 director, audit & Consulting angelic.pritchett@myleverage.com

John Brumit, 1120 director, product development john.brumit@myleverage.com

mallory pennington, x2138 senior auditor mallory.pennington@myleverage.com

Business Development

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

Quickly recover communications in the event of a disruption in telephone service through an affordable protection service that enables callers to get through to a credit union’s main phone or fax number, through rerouting technology and recover inbound calls to mass notification.

michael Bryson, x2124 auditor michael.bryson@myleverage.com melissa hamner, x2132 auditor melissa.hamner@myleverage.com lynda knox, x2135 service Corporation support specialist lynda.knox@myleverage.com kathy reynolds, x2121 auditor kathy.reynolds@myleverage.com

Product Support keith hopkins, x1170 vp, product services keith.hopkins@myleverage.com lisa hammock, x1146 director, hr services/executive recruiter lisa.hammock@myleverage.com deirdre rhodes, x1104 product support manager deirdre.rhodes@myleverage.com Jean noel, x1188 product support specialist jean.noel@myleverage.com lori vary, 941.747.9646 director, epurchasing lori.vary@myleverage.com

Marketing april Banta, x1162 director, marketing aprilb@myleverage.com detra white, x1156 production artist detra.white@myleverage.com

mary elicia del santo, x1144 vp, Business development me.delsanto@myleverage.com scott rosenthall, x1160 Business development Consultant scott.rosenthall@myleverage.com anita Fumaria, x1140 Business development Consultant anita.fumaria@myleverage.com steve pullara, x1164 Business development Consultant steve.pullara@myleverage.com richard abt, x1152 account manager, Card services richard.abt@myleverage.com

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

CO-OP Financial Services enhance services to your members by expanding your atm service delivery channels through more than 28,000 surcharge-free atms.

Corporate Business Solutions streamline and enhance your payroll, benefits administration, and employee legal compliance processes by outsourcing to Corporate Business solutions, a professional employer (peo) and administrative services organization (aso).

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

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

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

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

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

VERAFIN detect Bsa/aml fraud with leading-edge compliance and fraud detection software.

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

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

Landrum Professional outsource most of your daily human resources functions with landrum professional, a full-service peo.

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

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

Office Depot save money on office supplies, breakroom supplies, promotional products, print-ondemand materials, furniture, computers, and more.

ashley hanania, x1030 marketing Coordinator ashley.hanania@myleverage.com

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SIGNAL MAGAZINE RETURN ADDRESS 3773 Commonwealth Boulevard Tallahassee FL 32303 22 Inverness center parkway, #200 Birmingham al 35242

LSCU & CUNA Awards Entries Due April 15 Each year, the LSCU recognizes individuals and credit unions that are making significant contributions to the credit union industry. The time to submit an entry or nomination for an LSCU or CUNA award is now.

The LSCU is proud to recognize those professionals, volunteers, and credit unions that have made outstanding contributions through the following awards: • CEO of the Year • Volunteer of the Year • Distinguished Service Award • CU of the Year Award • Brother’s Keeper Award In addition, the LSCU and CUNA sponsor three recognition programs for credit unions based on asset size: • Dora Maxwell Social Responsibility Community Service Award • Louise Herring Philosophy-in-Action Member Service Award • Desjardins Youth Financial Education Award For more information, visit www.lscu.coop. Awards information may be found under the Cooperative Initiatives tab. Entries and nominations are due by April 15 and should be sent to: LSCU, Attn: Awards Nomination, 3773 Commonwealth Boulevard, Tallahassee FL 32303.

Questions? Contact LSCU Director, Information Services, Amy Jowers at amy.jowers@lscu.coop or 866.231.0545 x1020.