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The Magazine of the League of Southeastern Credit Unions

Drafting the Future of the Credit Union Movement

INSIDE LSCU Future of Credit Union Movement Importance of PAC Fundraising Final Debit Interchange Rule Collaboration & Cooperation through AfďŹ liation Fall 2011

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LSCU

Message from the President The third-quarter issue of Signal magazine hits your mailboxes around the time many of you are crafting your 2012 budgets and putting together your strategic plans for next year. At the League, we are in the same process. However, we took a different approach to our strategic plan this year. Instead of only planning for the next 12 months, we are preparing a long-term strategic plan for the League and LEVERAGE using scenario planning and the Blue Ocean strategy.

Our scenario planning for the LSCU consisted of looking at four different worlds, how the credit union industry fit into each, and how well the League is positioned to react to succeed in each. It’s been a great exercise for our management team and board and really validated for us why the credit union movement needs a long-range strategic vision and plan. This is something I’ve talked to CUNA and my fellow league presidents about. I was happy to see that CUNA President/CEO Bill Cheney has begun such a process working with other industry leaders.

Our cover story, Drafting the Future of the Credit Union Movement, looks at the need for a mutually agreed upon long-term vision, as well as the steps needed to make it happen. CUNA board Chairman Harriet May tells us in the cover story that, “ultimately, a new vision will put our movement on the path of long-term growth in membership, assets – maybe even the number of credit unions.” May says that she’s heard from many credit unions that they are excited about the possibility of this vision.

The cover story also looks at how credit unions in Alabama and Florida are mapping their own future path to success. Expanded collaboration will be a major piece of the puzzle if we hope to have an industry that not only survives, but flourishes. Grow Financial Credit Union, headquartered in Tampa, talked about how “…collaboration is essential. We collaborate on several different levels including legislative committees, HR credit union collaboration, and League chapter meetings.” As the economy continues to put pressure on credit unions, working together and sharing ideas will be paramount.

Alabama Telco is thinking long term by focusing on what it does best. They tell us that “by having distinct internal brand pillars, we are able to direct all of our strategic planning around it.” How can credit unions grow if they don’t know where their sweet spot is? How can the movement prosper if we aren’t looking further down the road? We have many competitors, and the landscape is only getting more crowded. Non-traditional players like Wal-Mart and Target have entered the game and will become a force in the next decade, and we need to be prepared to respond.

From a credit union movement standpoint, we need to get back to what made us great and the best alternative for consumers financial service needs; this is unity and cooperation. CUNA and the leagues are only the tip of the spear. The true power and influence of our movement lies in the credit unions. By working together, I believe we can accomplish almost anything.

To this point, we take a closer look at our Statewide Image Campaign which kicked off in September. The $1.3 million campaign is the largest “voluntary” statewide cooperative brand campaign put on by credit unions. We feature a short story about the two newest members of our Cooperative Initiatives team on page 26. April Ales and Judy Scott will be very visible with many of you. Both have hit the ground running, and they’re already making credit union visits. Plus, attracting and retaining talent is difficult. We have a story in our education section about professional development and how the League’s educational offerings can help with this.

I hope you enjoy the third-quarter edition of Signal magazine.

The cover story will hopefully leave you thinking more strategically about your credit union, the movement, and our future.

Patrick La Pine President & CEO League of Southeastern Credit Unions

Table of Contents

Editor Amy Jowers Contributor Mike Bridges Mary Elicia Del Santo Cassandra Grayson Keith Hopkins Will McCarty Amber Tynan Laura Vann Adena Whitman

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

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President’s Message

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CU President Profile

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Feature Article Drafting the Future of the Credit Union Movement “Imagine the power that we would have if we all rallied behind a vision ion of ‘what credit unions want to be.’ A compelling vision for the credit dit union movement—one that can offer a sense of common direction ion and motivate us toward industry-wide goals—will be a unifying force orce at a time when there is so much trying to pull us apart.”

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CU Volunteer Profile

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Advocacy PAC Fundraising: An Important Part of Advocacy

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LSCU Legislator Profile

Coming Soon Pre- & Post-Research Results for the LSCU Image Campaign

Clay Ingram

Highlights 10 | Feature Article

Credit unions by nature are cooperatives. Yet, there are times when the cooperative spirit is not as strong as it could be. The credit union movement is ripe for a long-term strategic vision.

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16 | Advocacy

While advocacy and grassroots efforts help people hear our voice, political fundraising is the other half and is becoming more important every year.

21 | Compliance

While nobody is completely happy with the final interchange rule issued by the Fed, the final rule is a vast improvement over what the Fed proposed at the beginning of the year.

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Compliance The Final Debit Interchange Rule

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Cooperative Initiatives Tornado Tragedy brings the Credit Union “People Helping People” Philosophy to Life in Tuscaloosa Cooperative Initiatives Welcomes New Staff Members Collaboration & Cooperation Through Affiliation

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Foundation Southeastern Credit Union Foundation Debuts New Logo

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Education Put Together A Professional Development Plan & Retain Your Staff Tune in for the LSCU Council Fall Webinars LSCU Council Advisory Committee Members

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Communications Statewide Image Campaign plays in 14 Media Markets

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League News LSCU AC&E Defines Future Through Collaboration

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Industry Succession Planning – The Basics

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LEVERAGE Business Development Consultants – Your LEVERAGE Connection Merchant Lending Prepare for Fast-Changing Lending Compliance

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LSCU President/CEO Patrick La Pine as he is pulled up on stage for a little dancing d and singing entertainment with VOX during the song LSCU Is So Cool, Patrick’s Gotta Wear Shades.

Michael Baswell

Anita Fumaria

Steve Pullara

Scott Rosenthal

LSCU Staff Directory

Highlights 24 | Cooperative Initiatives

38 | Industry

42 | LEVERAGE

An Alabama CEO puts an idea into action for a family adoption program, providing furnishings and household items for families living in one of the hardest hit housing projects in Tuscaloosa.

Succession planning is a key responsibility boards should continuously drive to assure members continue to receive an uninterrupted flow of valuedriven services in the event of a leadership transition.

Meet LEVERAGE’s business development consultants who provide invaluable resources to credit unions throughout Alabama and Florida.

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CU PROFILE

CU President Profile JOE NEWBERRY 1.

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What drew you to credit unions?

After graduating from Auburn University in 1975, I immediately joined First American Federal in Huntsville, AL. At that time, First American was a mutual savings cooperative and later transitioned to a publicly held company. So I understood the cooperative concept, as well as, the stockholder-owned corporation structure. And, to be honest, as a banker, I pilloried and railed against credit unions. Then I met Jerry Toland, then President/CEO of Redstone Federal Credit Union. Also, around that time, Colonial Bank was buying First American Federal with plans to lay off many of the staff – including me. There is nothing quite like a corporate buyout and layoff to illustrate the single-minded pursuit of profit and corporate greed that drives stock-held banks.

I joined the team at Redstone almost 19 years ago, and I have been a credit union person in my heart and soul ever since. I’ve come to believe that people end up in careers that match their perspectives and values. I suspect that, like many people, I was a credit union kind of person prior to joining Redstone; it just took the dedicated servant leadership of Redstone and a bank takeover to show me the path.

You are getting a new website and new technologies. How important is technology for the future of credit unions?

Technology is very important for credit unions. I know it’s difficult for younger people to imagine, but a lot of us remember a world without PCs, email, or the Internet. Technology has changed our world and business model dramatically.

In 1994, I was invited to a Chamber of Commerce meeting in Huntsville where they demonstrated a new technology they called the World Wide Web – the Internet. They showed us how it worked and suggested some ideas on where the technology might lead. And, honestly, at the time, I couldn’t see a lot of value in it.

Obviously today the internet is integral to the financial services market. Our goal with our new website is to make it so that everything a member can do in a branch, they can do online – with the exception, of course, of getting immediate cash.

In the short term, at Redstone we want our website to allow members to not only be able to access and aggregate all their accounts, from any financial institution, but also know how

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much they’re pre-approved for any Redstone loan or other product. Just imagine, no more applying for loans; members will know they are approved and ready to close on any loan they want – online at any time day or night.

Credit unions that Joe Newberry, CEO Redstone FCU survive in the future will be serving and communicating wherever, whenever, and however members want…and that simple statement shows the power and importance of technology.

Your credit union branches experienced power outages after the tornadoes hit in April. How did you continue to provide services to your members?

Each year Redstone FCU goes through disaster scenario planning to ensure that we are ready for the type of severe weather and power outages we experienced this past April. In spite of our planning, we were still not entirely ready for what hit us. Of course, we did immediately implement our emergency plans, performed damage assessments, and strategically identified ATM locations that would reach the most members.

After the storms, we were notified by the Tennessee Valley Authority and the Huntsville Utilities that we would possibly be without power for 7-10 days due to main feeder lines being damaged coming from the Browns Ferry Nuclear Plant. These power lines provided power to 80 percent of the North Central Alabama area and the loss of the lines impacted almost all of our branches as well as every business and residential neighborhood throughout the area. We were able to use our main office generator, burning 400 gallons of diesel a day, and a well-designed series of backup generators to operate our main office and computer center. This, coupled with the roundthe-clock hard work of our dedicated staff, allowed all online channels and our computer operations to continue as normal.

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We purchased portable generators and, with the careful coordination of our Facilities Department, ATM Services, Infrastructure Services and Communication Departments, we were able to install the portable generators at the various locations and run several of the branch drive thru ATMs. Our automated operations team worked around the clock ensuring ACH clearing and end-of-day closing throughout the disaster.

I never thought I would see it, but northern Alabama became a cash-only area. Our members, and the entire area, wanted cash – cash for groceries and cash for gasoline, what little was even available. Within 48 hours we were able to get 15 of our ATM units operational. I believe we were the first and only ATMs to reopen for days and the lines showed it – often two hour waits. We were also able to take our mobile ATM to several areas that were in critical need.

One thing that struck me at the time, and still does, is that it’s at times like disasters when staff show their true colors. The dedication and commitment of the Redstone staff to serving our members—and the entire community— was inspirational and I will be forever proud of the work our team did in those critical days following the devastation.

Credit unions are seeing more regulation than ever before.

What has Redstone done to comply with the regulations and continue to innovate for the membership?

At Redstone, we are implementing a robust enterprise risk management (ERM) program that allows us to continue to innovate for the membership, while maintaining compliance in this volatile time of regulatory change. ERM helps us define regulatory and other risks proactively at the earliest stages of a new idea. By understanding the risks upfront, Redstone is in a position to determine what we can do to mitigate those risks so we can implement new innovative products and services for the members.

Credit Union Statistics Company:

Redstone FCU

Location:

Huntsville, Alabama

Assets:

$2,992,833,199

Members:

333,167

Shares:

$2,631,021,664

Loans:

$1,211,765,981

Joe Newberry (r) with CUNA President Bill Cheney

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We have many important projects ongoing throughout the organization that vie for priority, and we have decided that any project that concerns regulatory issues is immediately a top priority. And this speaks directly to our commitment, as an organization, to safety and soundness.

As you look to 2012, what is your vision for Redstone FCU? Serving the best interests of our members is paramount to Redstone and, I believe, to every other credit union. And while I may not have fully understood the future of the internet back in 1994, I do know that technology will be the foundation for serving members in the decades to come.

As technology advances, so will the ability to reach out and touch our members. While people may not always remember the business (service or product) side of an encounter, they will remember the emotion – how did it make them feel? Moving forward, in order to harvest the most from technology we must strive to find ways to serve members electronically and at the same time touch them positively in an emotional way.

For Redstone, I see this as the fruition of a larger plan that is online and branch based, which we call our Trusted Financial Adviser program. Still in development, this program will strive to make Redstone the sought after “expert” on all things financial.

There are certain times in all of our lives, when we need trusted advice – the birth of a child, a marriage, a divorce, a retirement, a death… and many other life events that compel us to change our financial circumstances. It is at such times that a credit union should be a trusted advisor for its membership. ■

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CU President Profile JOHN NEUSAENGER 1.

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How did you become involved in the credit union industry?

My father was on the Board of Orlando Postal Service Credit Union for most of my life and I had a four digit account number, so I was connected to the industry very early in my life. Via my father’s connection to local credit unions, he let me know of an opening at ORMC FCU for an assistant manager in 1985. I came to credit unions from an administrative background with Sears where I had worked as a cashier, personnel interviewer, collector, and wage analyst.

This was a great opportunity to bring my background with detailed policies and procedures from Sears to a small credit union that had few written policies and procedures.

Orlando FCU is part of the Florida Credit Union Shared Services network. Why is it important for a credit union to be part of the shared branching network? How has it benefitted your credit union and your members?

As a smaller credit union, branching has always been an expensive delivery channel for OFCU but we realize that branching convenience is a key to member satisfaction and growth opportunities. We have eight branches now, which is a lot to support for a $160 million credit union, but, due to our affiliation with FCUSS, our members have a lot of other options locally and nationally to walk into a credit union office and conduct their OFCU business. My daughter is a petty officer in the Navy, stationed in Pearl Harbor, Hawaii and is able to transact on her OFCU account by walking into Hickam FCU, in Pearl Harbor. The greatest challenge is making our members aware of this opportunity, as it doesn’t seem to register with them from newsletter articles, web site information, or other marketing materials.

Orlando FCU was one of the first credit unions in the Orlando area to contribute to the LSCU image campaign.

Why do you feel it is important to participate in such a campaign?

We support the cooperative and collaborative efforts of LSCU to enlighten Floridians about credit unions through the image campaign. This is a win-win for OFCU and all credit unions when a professional message that highlights what credit unions do for consumers to lower their cost of financial services is broadcast in mass media. It is great timing and a great message!

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Your board chairman and you are very politically active and regularly attend various legislative events, including CUNA’s GAC. Why is it so important for credit unions to be involved in the political aspect?

Chick (yes, that’s my board John Neusaenger, CEO chairman’s nickname) Orlando FCU and I have been attending the GAC and other political events for more than 10 years.

The opportunity to sit down with our Federal lawmakers and explain the credit union message is crucial when taxation, lending reform, debit card rules, and other issues come before Congress. The banks and merchants spend a tremendous amount of time and money to influence legislation so our message needs to be heard. Developing a rapport with our Congressional representatives has opened doors to being able to sit down in one-on-one situations with a representative and to know him or her well enough to come prepared to respond to their questions. I met with Congressman Grayson at a coffee shop in south Orlando to discuss the open-end lending problem with the Credit Card Act. Because I had met with him on several occasions

The opportunity to sit down with our Federal lawmakers and explain the credit union message is crucial when taxation, lending reform, debit card rules, and other issues come before Congress.

previously, specifically at GAC, I knew that he would ask specific questions and would have read the legislation so I was prepared with copies of the particular section that was a

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concern, and I had thoroughly reviewed the issue. At the end of the meeting, Congressman Grayson understood the credit union’s unique concerns with the issue and agreed to support legislation for correcting the language that caused the issue.

Credit unions are seeing more regulation than ever before. What has Orlando FCU done to comply with the regulations and continue to innovate for the membership?

The regulatory environment continues to challenge the credit union Industry but smaller credit unions even more than larger.

Our executive team is active with the various credit union organizations to keep in touch with the regulatory changes. We meet weekly and keep each other current with the changes.

We are very conscious of our members’ wants and needs and that drives our decisions for changes to products and fees.

Our board is also very sensitive to our members’ desire for low cost financial services and low loan rates.

Orlando FCU is celebrating its 75th year in business this year. What is your vision for the credit union in the next few years that will help the credit union to continue for 75 more years?

The credit union has managed a conservative path of controlled growth and high loan-to-share ratios. This positioned OFCU to start the recession with over 11 percent capital and 102 percent loan-to-share ratio. So far, we have been able to weather the economic storm and keep our capital over 9 percent and remain 10 percent above our peers’ loan-to-share ratios. My vision is to continue the path of controlled growth, with conservative lending that is well distributed but relatively short duration. We are an auto lending shop with only 25 percent of our loan portfolio in real estate, which means that 65 percent of our portfolio re-prices every 18 to 24 months (the average duration of

John Neusaenger (l) with Deby Seymour and Bob Beskovoyne at CUNA’s GAC

an auto loan). This is a huge challenge to compete with manufacturers financing but provides a hedge on interest rate risk. OFCU has been on the forefront of technological services and that is a major strategic edge for our ability to provide a full range of financial services to our members.

The ultimate vision is to remember that the people walking through our doors, calling on the phone, or connecting electronically are member/owners and are the best marketing instruments when they are treated with exceptional service. ■

Credit Union Statistics Company:

Orlando Federal Credit Union

Location:

Orlando, FL

Assets:

$159,609,466

Members:

21,062

Shares:

$143,574,099

Loans:

$113,932,749

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FEATURE

Drafting the Future of the Credit The first blueprint for the credit union movement came from a CEO Bill Cheney told Alabama and Florida credit unions on his visits cooperatively owned German mill that provided bread to its members to both states earlier this year that CUNA has been working on at significant savings. The year was 1846 and Germany was in MBLs and capital reform as well as reducing the regulatory burden. the midst of a severe crop failure and famine.

However, those are just incremental steps for the Franz Hermann Schulze-Delitzsch took this movement. What Cheney and May want credit In 1976, there were unions to know is that, while these are vital to cooperative model and began a “people’s the movement, more needs to be done to ensure bank” a few years later. This cooperative model lasting success. allowed “subscribers” to make deposits, have access to credit and dividends, while being credit unions. supported by a board made up of “subscribers.”

The idea was so successful in Germany, that 25 in 2011, there are “people’s banks” had opened within ten years.

Within 50 years, the “cooperative financial model” had been refined into a credit union and credit unions. hit the United States. Like Germany, the idea of members coming together to provide access to credit for their communities, while owning a piece of the credit union, spread like wildfire in the U.S. By 1976 there were 22,000 active credit unions. Over the next 35 years, twoMay thirds of those credit unions closed or merged. Why? There are various reasons why so many credit unions shuttered their windows, but one can easily point to the lack of a commonly shared strategic vision for the movement. Credit unions by their very says May. nature are cooperatives. Yet, there are times when the cooperative spirit is not as strong as it could be. The credit union movement is ripe An example of those forces that are trying to erode financial for a long-term strategic vision. LSCU President/CEO Patrick La Pine institutions, not just credit unions, is non-traditional. According to the says it’s time to come together and look beyond the next 12 months.

FDIC, there are 17 million unbanked residents in the United States.

22,000

“Imagine the power that we would have if we all rallied behind a vision of ‘what credit unions want to be.’ A compelling vision for the credit union movement—one that can offer a sense of common direction and motivate us toward industry-wide goals—will be a unifying force at a time when there is so much trying to pull us apart,”

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“Credit unions have been reactionary the past few years. We need to look to where we want to be. What are the forces that stand in our way? Credit unions need to project out more than one year at a time. We need to talk about it now before the marketplace becomes even more crowded.”

The Credit Union National Association (CUNA) board Chairman Harriet May announced this summer that CUNA will begin to put a framework together for a long-term strategic plan. CUNA President/ 10

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Big box retailers like Wal-Mart and Target have begun courting this demographic. Wal-Mart has a successful check cashing service for quite some time. At $3 to cash a $1,000 check and $6 for a $3,000 check, it’s a substantial savings for the unbanked to cash their check at Wal-Mart than a check cashing service. Plus, Target, like Wal-Mart, offers a reloadable debit card so the unbanked can have the rest of their money on one card. This could be Target’s and Wal-Mart’s first push to gain more market share, but to also push the limits on how many financial services they can provide.

“The reloadable debit card is the fastest growing card on the market. Wal-Mart and Target understand the demographic, most of which live paycheck to paycheck, and actively court them. If credit unions don’t find solutions for this demographic, we’re giving away a huge segment of the population,” says La Pine.

Union Movement The world is changing and now credit unions must show the flexibility to adjust with the times. Individual credit unions are putting more emphasis on their brand, which at times expands beyondd the reach of the membership they have traditionally served. This doesn’t oesn’t mean scrapping the segment of the community that is the creditit union base, but many are taking a hard look at their membershipp to find the areas of growth. For $480 million Alabama Telco, based in Birmingham, growing the credit union means finding the sweet spot. pot.

Telco Vice President of Marketing Stanton Davis says that starts with ith what the credit union stands for.

“Our long-term vision centers on our brand pillars that we have developed internally. By having distinct internal brand pillars, we are able to direct all of our strategic planning around it. We also center er everything on our external mission statement: ent: Excellent Service, Excellent People, Excellent nt Products,” says Davis.

Davis

CONTINUED ON PAGE 13

nion

d C klan c i ral r g e t n d S i e t Wes Marke ncial F , a VP w Fin Gro

it U red

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More protection,

More connections.

Knowing your members better builds relationships. And knowing how they prefer to communicate, and when they need increased protection, not only builds relationships, it builds connections that will last into the future.

WE ARE COMMITTED TO YOU. As of 2010, more than 10 million credit union members have relied on MemberCONNECT products to protect their financial futures.**

MemberCONNECT® offers your credit union access to valuable insurance products* and invaluable information about your members.

Products available through the channels your members prefer.

Information that helps ensure you can make the right protection available at the moment in their lives they need it most. So while you’re

Contact your CUNA Mutual sales executive today to find out how your credit union can build more member connections.

Call 800.356.2644 or visit www.cunamutual.com for details.

building non-interest income for your credit union, you’re also building life-long connections. That’s what MemberCONNECT is all about.

* Life & AD&D insurance sold through CUNA Mutual Insurance Society. MEMBERS Auto & Home Coverage made available by CUNA Mutual Insurance Agency, Inc. and underwritten by leading insurance companies. Medicare Suite is sold through Humana. These insurance products are not deposits and are not federally insured or guaranteed by credit unions. ** Source: 2009 policyholder data.

10001970-1110 © CUNA Mutual Group, 2011 All Rights Reserved.

Common Purpose. Uncommon Commitment.

Drafting the Future of the Credit Union Movement (Continued) Telco’s long-term vision centers on many innovative programs that are communicated to its membership through many channels like Kids Savings School, social media, and its website.

Grow Financial Federal Credit Union, based in Tampa, launched a new brand in 2007. The $1.7 billion credit union’s long-term plan includes periodically refining the brand while looking for ways to expand it through new products and services. The credit union doesn’t take strategic planning lightly. It’s a process that is cultivated throughout the year. Grow Financial Senior Vice President of Marketing Wes Strickland refers back to a favorite quote of his, “Vision without implementation was hallucination.”

“We have plans for growth and expansion, but keeping those plans flexible enough to allow for some opportunities to work and move forward is key,” says Strickland.

Strickland

Some of the programs that emerged from the brand are the Bugg Club, student services (loans, eChecking), and business solutions.

However, that doesn’t mean every idea finds the membership.

“Not everything we plan for will or can be done simply due to the many variables in the marketplace,” says Strickland.

That’s where the leagues and CUNA can chart the future. It’s imperative that the variables in the marketplace are identified and planned for. While banks will always be competition, how can credit unions compete with the Wal-Marts and Targets? What’s the next player to enter the market, Google or Apple? As CUNA begins the process of looking long-term, these new variables will be front and center. May says credit unions have told her they are excited about a long-term strategic vision. However, the individual goals of credit unions should also reflect this new strategy.

“What concerns me is too much fragmentation within our credit union movement. It is a mindset in which people do not look beyond their own individual institution and consider what is best for the movement as a whole,” says May.

“Remember how we got here and work together to sustain the movement” As La Pine puts it, credit unions need to go back to basics and “remember how we got here and work together to sustain the movement.” The $1.3 million LSCU Statewide Image Campaign is an example of where credit unions are looking to the future and working together to make it happen. More credit unions could consider collaboration in a number of different areas, such as the back office where costs can be lowered or physically shared branch location. The idea is to identify these now, before it’s too late.

CUNA has just begun the process of putting together the longterm vision. It will take time to formulate and then discuss with credit unions across the country. A mutually agreed upon vision will have a more long-lasting effect. May says “ultimately, a new vision will put our movement on the path of long-term growth in membership, assets –maybe even the number of credit unions.”

La Pine says he knows that credit unions will operate differently in 20 years and “without a long-term vision, credit unions will become dinosaurs.” And, we all know how that story turned out. ■

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VOLUNTEER

CU Volunteer Profile Mike Kitchens, CU Volunteer, ACIPCO FCU 1.

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What brought you to become a member of ACIPCO FCU and later a volunteer? Provide us with some of your background and how that brought you to become a member of the credit union and a volunteer, now chairman, on the board of directors.

I knew little about credit unions and their philosophy when I came to work for ACIPCO. I needed two hundred dollars to buy a set of tires for my car. Someone suggested that I check with the credit union and see if they could help me. I took their advice and found that the credit union would loan me the money. I joined that day, and have never forgotten the customer service I received. I was a member for ten years when I was asked if I would serve on the credit union board. I agreed, and have been on the board since that time. I was on the board for two years when I was elected to be chairman. I served as chairman of the Supervisory Committee for one of my first two years.

How have you approached your position as a chairman at ACIPCO FCU? I take my fiduciary responsibility very seriously, and try to make sure that the credit union philosophy is applied in our business daily. We want to treat people as we would want to be treated.

We also want to make sure that we follow sound financial policy, and provide excellent customer service.

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As chairman for more than 20 years, how has the credit union industry changed in your opinion?

Technology has changed the industry the most. You have to change with the technology or get run over. The economic challenges are much greater than in the past.

Mike Kitchens As chairman, you are very active in ACIPCO FCU the political and member advocacy for credit unions. From a director’s point of view, why is it so important to be involved?

In today’s changing environment you have to be aware of the things that will affect your business. You must be sober and vigilant about the financial and political changes that take place on a daily basis. You have to be willing to stand up and get involved, or someone else will help decide your fate.

How important do you think non-paid volunteers are for credit unions?

Non-paid volunteers are essential for the success of credit unions. These volunteers bring a personal commitment that compliments the staff. ■

Mack MacVicar, City County CU 1.

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Why did you become involved as a director of a credit union? Provide us with some background about how you became involved with the credit union?

In 1964 during the first month of starting a full time job, an employee in the break room asked if I had joined the credit union. He shared all of the advantages of joining, i.e. “memberowned” and the excellent rates. A week later he gave me an application and I joined. I have belonged to credit unions ever since that time. Nineteen years ago the president of our local labor union and credit union director asked if I would be interested in being a candidate for the credit union board of directors. I was elected and that started my volunteer credit union work which I have really enjoyed.

How have you approached your position as a director at City County CU? I very much believe in the credit union movement and what it represents. I have worked to represent our members’ desires for a secure, progressive organization based upon sound financial principles and ethical behavior.

How important are non-paid volunteers for credit unions?

Non-paid volunteers are a key and distinguishing element of our member-owned cooperative organization structure. As a notfor-profit, volunteers should be motivated to donate their time for this work and responsibility and not be compensated.

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In the years you’ve been involved with credit unions, how has the credit union industry changed?

When I joined the credit union the only products offered were: share and Christmas club accounts, as well as auto loans. The quarterly statements were sent to the work locations via the company mail service. Many Mack MacVicar changes have occurred since that City County CU time. The number of credit unions has decreased substantially, many new product offerings have been implemented for our members, and the amount of credit union staff time and resources devoted to government regulation has increased substantially.

City County CU has always been active in governmental affairs. Why is that important from a volunteer’s point of view?

It is crucial to our survival as an industry that we regularly meet with and educate our elected representatives on the credit union role in our society. Many do not understand and, therefore, do not appreciate the member orientation and caring that we have as an industry. This needs to be continually reinforced or we will be viewed as just another financial institution versus a unique one. ■

LSCU Director’s Resource Sign up now to receive the LSCU Director’s Resource newsletter, created specifically for credit union volunteers!

• Each quarterly issue contains information relevant to credit union board members.

• Upcoming events specifically for volunteers, stories that give volunteers a greater understanding of what the League and CUNA are doing for credit unions, and stories that will enrich their job as a volunteer.

Sign up to receive this newsletter by sending a request to submissions@lscu.coop.

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ADVOCACY

Advocacy PAC Fundraising: An Important Part of Advocacy

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Contributions to LSCU PACs give credit unions an opportunity to define their own message at the Capitol, both on the state and federal levels. These contributions afford us the opportunity to educate our lawmakers on the issues that are important to the credit union industry so that we may proactively push legislative changes that positively affect credit unions.

There are many ways that legislation can positively affect credit unions. While legislative changes cannot be guaranteed, advocacy and fundraising are two essential parts of staying relevant and progressing. “Credit unions are political creatures and are perpetually susceptible to legislative outcomes. This undeniable truth demands that we participate vigorously in the political process.

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(l to r) Rep. Will Weatherford (R-Wesley Chapel), SpeakerDesignate of the Florida House of Representatives, Mary Wood, President/CEO, Florida West Coast CU, & Art Wood, President/ CEO Railroad & Industrial FCU

We do so by lobbying our legislators and energizing grass roots efforts to support our legislative causes or positions. However, our political response is grossly inept without abundant funding to support and defend causes and candidates that preserve and enhance the value and availability of credit unions’ service to its members.

Therefore, we must place greater priority on political fund raising if we are to protect and prosper the credit unions’ strong position on the legislative front.” Brad Green, CEO, Listerhill Credit Union Supporting our credit unions is more important now than ever. At both the state and federal level, it is imperative that credit unions are able to stay engaged in legislative action. While advocacy is important and it is the medium through which credit union voices are heard, successful PAC fundraising plays an equally large part. Participation in fundraising is a vital and necessary part of credit unions being able to continue to serve their members. “We need to make contributions to our Credit Union PAC because those opposed to us make contributions to their own political action committees.

Wearing the “white hat” is not enough to prevent harmful laws and regulations. Aggregating individual and credit union contributions provide an opportunity to make a more impactful donation. PAC funds build relationships and create access opportunities to elected officials in ways that can’t be done by small individual campaign contributions alone.” Mary Ott Wood, CEO, Florida West Coast Credit Union.

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This past year reminded us how important advocacy is for credit unions, having faced battles in both the state legislature and in Congress. While advocacy and grassroots efforts help people hear our voice, unfortunately, that is only half the battle. Political fundraising is the other half and is becoming more important every year.

Already this year, LSCU PACs have contributed to the campaigns of several credit union-friendly candidates for the upcoming election cycle. LSCU is confident that its proven track record of success in selecting candidates to support will continue, and we need your support.

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Consider contributing to the LSCU FEDPAC, ACULAC, or CUPAC today and help effectively communicate the credit union message. Contact Jason Cochran (Alabama) jason.cochran@lscu.coop x2159 or Andrew Gonzalez (Florida) andrew.gonzalez@lscu.coop, x1010 for more information. ■

2012 Important Dates CUNA GAC March 18-22, 2012 Sunday – Thursday Washington, D.C.

Alabama State Governmental Affairs Conference April 4-5, 2012 Wednesday – Thursday Renaissance Montgomery Hotel & Spa

Florida State Governmental Affairs Conference January 24-25, 2012 Tuesday – Wednesday Hotel Duval Tallahassee, FL Contact Co C ontac acct LSCU SVP, G Governmental Affairs Will McCarty at 866.231.0545 x2137 or will.mccarty@lscu.coop for more information.

LSCU Legislator Profile

Clay Ingram

Clay Ingram, a Pensacola native, currently represents the 2nd District in the Florida House of Representatives. A 2000 graduate of The Florida State University, Representative Ingram was a four-year starter for Coach Bobby Bowden’s Seminoles and a member of the 1999 National Championship winning team. While excelling on the football field, Clay also excelled in the classroom earning a place on the ACC All-Academic team. He was elected chairman of the Escambia County Republican Executive Committee in 2005 and served in that capacity until December 2008. He was elected chairman of the First Congressional District Caucus of the Republican Party of Florida (RPOF) in 2007 and led the Caucus during the 2008 Presidential Election. Clay is currently teaching and coaching football at Tate High School in Pensacola.

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What it is about politics that interested you enough to help guide your decision to run for the Florida House of Representatives?

As far back as I can remember, even in early childhood, I was interested in current events and politics. As I grew older and came to understand the problems that we face a state and as a nation, I found myself searching for solutions to those problems. I quickly came to the realization that government interference in the affairs of the private sector was the cause of many of our problems. This realization is what led me to conservatism. I began volunteering for the Republican Party and for conservative Republican candidates. Running for a seat in the Florida House of Representatives was an outgrowth of that early political involvement.

In your eyes, what are some of the biggest issues facing Floridians as we move toward the 2012 Legislative Session?

Creating a positive climate for business must still be our top priority. We must do this because getting Floridians back to work and the positive effects of doing so affects everything from healthcare to education. Of course, government doesn’t create jobs, but government can do so much to allow the private sector to thrive; namely limiting its own reach, keeping taxes low, and reducing regulations. We made large strides toward this goal in the last legislative session but we can always go further.

Last session, you sponsored HB 999 which would have given credit unions the ability to become qualified public depositories. What were your thoughts behind filing this bill and why was it an important issue to you?

Allowing credit unions to become qualified public depositories is a way to reduce costs for governmental entities which should translate into less burden on the taxpayers. Credit unions are already providing their services to businesses in Florida and allowing the public sector to participate is the next logical step.

These factors along with the record of financial safety and stability of Florida’s credit unions are the reasons that I filed this bill.

What role do you see credit unions playing in the financial services industry and in particular, Florida’s economy?

Credit unions play a very important role in Florida’s economy.

Real estate values and housing are such important parts of the economy in our state and so providing an affordable path to home ownership for members is one valuable way that credit unions contribute.

How important do you feel the role of grassroots advocacy is in the legislative process? What advice would you give to grassroots advocates when contacting their elected officials?

Political involvement at the grassroots level is how my involvement began and so I know from firsthand experience how important it is. Grassroots advocacy is genuine and heartfelt and elected officials can sense this when they are visiting with advocates.

My advice would be to make sure that when visiting with elected officials as a grassroots advocate, abandon the canned talking points that the elected officials constantly hear and talk about how the issue at hand affects you personally as a Floridian.

What three things do you believe the Legislature should accomplish during the 2012 Legislative Session?

In order to further foster a positive business climate in our state we need to reduce regulation, continue to reduce the tax burden

on Floridians, and enact tort reform. In the last session the House passed a large de-regulation bill but it failed in the Senate.

Passing that bill or a similar one in the upcoming session would show that Florida is serious about making it easier to do business here. Gov. Scott has vowed to eliminate the corporate income tax in Florida and that would be a signal to businesses around the globe that we want them to come here. Lastly, taking away the constant worry about frivolous lawsuits in our state is a must and the time is right to pass legislation to do just that.

Can you describe your experience working with the LSCU Government Affairs team during your time in the Legislature?

Working with the LSCU Government Affairs Team during the last legislative session was a real pleasure. The team was professional, friendly, and extremely knowledgeable about issues affecting credit unions and the financial industry. The LSCU team was one of the first to reach out to me as a candidate to make sure that I was informed on credit union related issues. I’ve always appreciated, that and I think it is a good illustration of how proactive and effective the LSCU Government Affairs team is. ■

(l to r) Patrick La Pine, Rep. Ingram, Rep. Ingram’s Aide, & Jared Ross at LSCU’s State GAC

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Compliance Corner The Final Debit Interchange Rule Will McCarty, SVP, Governmental Affairs

Despite a tremendous outpouring of effort on both the legislative and the regulatory front by credit unions, the League, and CUNA the Federal Reserve has issued a final rule to regulate debit interchange fee income and debit card routing, which was required by the Durbin amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act. While nobody is completely happy with the final rule issued by the Fed, and certainly we would have preferred no regulation of fees and routing and exclusivity at all, the final rule is a vast improvement over what the Fed proposed at the beginning of the year. The Fed’s original proposal limited debit interchange fees to 12 cents per transaction, and there was little in the way of enforcement of the small issuer exemption. For credit unions, CUNA estimates that debit interchange income would have dropped from 30 basis points to about 9. Under the final rule, the Fed increased the limit on income from the proposed 12 cents to 21 cents, plus 5 basis points of the value of the transaction (plus 1 cent per transaction for fraud prevention if issuers meet certain standards). This means that for those issuers over $10 billion in assets, the reduction in interchange income would be from the existing 30 basis points to 24. In addition, they added some enforcement to the small issuer exemption that applies to all but three credit unions in the country, making the loss of income hopefully inapplicable to credit unions. Credit for the improvements must be given to the credit union industry that led the charge in Congress to require the Fed to “stop, study, and start over” in developing the regulation, as well as generating a massive amount of comment letters to the Fed, which are credited with much of the improvements in the final rule.

The final rule has three major provisions that affect credit unions to different degrees. The rule basically consists of a cap on interchange fees that can be received by card issuers with assets over $10 billion; network exclusivity requirements; and network routing requirements.

Fee Cap & the Small Issuer Exemption Of greatest concern for credit unions throughout the entire legislative and regulatory process has been the potential for the loss of debit interchange income. While the bill and the proposed regulation contained an exemption from the fee limitation for card issuers under $10 billion in assets, we were very concerned about how a two-tiered payment system might work, and how it might be enforced. Early on, even before the final rule was published, VISA announced that they would create and maintain a two-tiered system.

In mid-August, MasterCard followed suit and announced that they too would utilize a two-tiered system, keeping their existing rate structure in place for credit unions and other exempt issuers.

The new, limited rates for larger issuers go into effect on October 1, 2011. While credit unions are not subject to this rate, the concern remains how to enforce this exemption. The Fed partially addressed this by agreeing to publish annually a list of institutions that fall below the $10 billion threshold. This is to assist card networks in determining which institutions are to be exempt. In addition, the Fed will survey payment card networks annually and publish a list of the average interchange transactions fee that the networks provide to both exempt and non-exempt issuers. This is to enable issuers, Congress to monitor the rule’s impact, and to ensure that the exemption is working.

Credit for the improvements must be given to the credit union industry that led the charge in Congress to require the Fed to “stop, study, and start over” in developing the regulation, as well as generating a massive amount of comment letters to the Fed, which are credited with much of the improvements in the final rule.

The remaining fear for exempt issuers like credit unions is the threat of “steering” by merchants, away from exempt cards and to lower cost (for them) cards from big issuers. While merchants can still encourage PIN vs. signature, and credit vs. debit transactions, Visa and MasterCard rules prohibit merchants from discriminating based on the issuer. CUNA, Visa, the Fed, and the card networks will all have reporting systems in place, for card issuers getting reports from consumers about instances of merchant steering based on card issuer. The Fed and Congress both considered this issue, and concerned about the possibility of discrimination. Both the Fed and Congress gave assurances that, if there is steering by merchants, the exemption would be revisited for greater enforcement. Both networks have provisions allowing for fines and loss of the right to accept any card for violation of the “accept all cards” rule. This will be something the League, CUNA, credit unions, and the government, will all be monitoring very carefully.

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The Final Debit Interchange Rule (Continued) Network Exclusivity The network exclusivity provision, which goes into effect on April 1, 2012, applies to all issuers, regardless of size and requires an issuer to provide a debit card that can be processed on at least two unaffiliated card networks. This means that a credit union could issue a card that can be processed on one signature network, and one unaffiliated PIN network, or a card that can be processed on two unaffiliated PIN networks but not a signature network, or a card that can be processed on two unaffiliated signature networks but not on a PIN network. Also, an affiliated network is permitted if the debit card can be processed on at least two unaffiliated card networks, so a PIN network that is affiliated with the signature network on the same card is permitted as long as an unaffiliated network is present. This does give the issuer some flexibility, and is a marked improvement over the proposal that would have required at least two unaffiliated networks for each type of authorization. While the effective date of the rule for debit cards is April 1, 2012, general use prepaid cards will have until April 1, 2013 to comply with the exclusivity requirement.

Routing Requirements Like the exclusivity requirements, the routing provisions in the final rule apply to all card issuers regardless of size. Under the routing provisions, which go into effect on October 1, 2011 issuers and payment card networks are prohibited from limiting merchants’ ability to choose the network on which the transaction is routed, with respect to those networks on which the debit card is enabled to be used. Prohibited routing restrictions include prohibiting a merchant from encouraging a particular method of debit authorization, or establishing network rules or issuer priorities that direct debit transactions. A payment network may offer incentives to encourage use of its network, and a merchant and its acquirer may agree to a pre-determined set of routing choices that apply to all debit transactions.

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The final rule as issued by the Fed, is far from perfect or even preferable, but certainly far better than what was originally proposed.

During the final vote on the rule, the members of the Board of Governors of the Federal Reserve gave significant attention to the concern of smaller issuers, and how to ensure they are protected.

While some credit union concerns were addressed, and certainly the fee limit applicable to larger issuers was greatly improved, how this rule is implemented, enforced, and responded to by all participants in the market will be critical. Already, Regions Bank has announced that it will charge a $4 monthly debit card fee on some customers’ checking accounts, and Wells Fargo has announced a $3 monthly fee for debit and ATM cards in several states as part of a pilot program to see how their customers respond. Even though credit unions are almost all exempt from the fee limitation, how this exemption is enforced moving forward, how the routing and exclusivity provisions affect credit unions, and how merchants react will require careful review and analysis as the industry enters new waters on debit cards. â–

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INITIATIVES

Cooperative Initiatives Tornado Tragedy brings the Credit Union “People Helping People” Philosophy to Life in Tuscaloosa Adena Whitman, director, Member Relations On April 27, an EF4 tornado ripped through Tuscaloosa County along with 61 others across Alabama in a historic outbreak that killed at least 47 in the county and 247 across the state. When the dust had cleared and the dazed citizens of Tuscaloosa began the process to restore their lives, everyone was looking for ways to help kick start the healing process. But as the days passed and the enormity of the devastation set in, survivors were left to deal with the aftermath and discover whatever the new normal would mean for them.

Out of a discussion with a credit union member came an idea from Tuscaloosa Credit Union CEO Tommy Cobb, which blossomed into a family adoption program providing furnishings and household items for families living in Rosedale Courts, one of the hardest hit housing projects in Tuscaloosa.

“I reached out to Cavalry Baptist Church, which had already been working with the Tuscaloosa Housing Authority and just asked what we could do,” said Cobb. “Through additional talks with Jim Phillips at Alabama One Credit Union, Perry Baggett, a board member at Tuscaloosa VA Federal Credit Union, Bill Hatmaker with Cavalry Baptist Church and the Tuscaloosa Housing Authority, we were able to create a family adoption program to meet the needs of these families who had nothing besides four walls. We wanted to get as much done as quickly as possible.

Bill Hatmaker, himself a former credit union executive with Southeast Financial Credit Union in Nashville, had already been working with the Tuscaloosa Mayor’s Hope Initiative mentoring and bringing programs to the Rosedale Court residents prior to the April storms.

“Because of the work we were doing in Rosedale Court, we already knew the families there and we contacted the housing authority and pledged to help 25 families on faith alone,” Hallmark said. “We were able to actually fund 31 families and when Tuscaloosa Credit Union came on board, we were able to provide for even more and have funded supplies for 65 families to date.”

“It was like the church had a spiritual vision,” said Willie Fort, assistant executive director for the Tuscaloosa Housing Authority.

“Being in place to help us, bringing the credit union family to us, it was divine intervention.”

Cobb reached out to his fellow credit union managers and asked for donations. What he received ranged from $100 to $50,000, raising more than $92,000 in all. In addition, he has been selling Heart of Dixie t-shirts to help bring in more money for the program.

“When the credit unions stepped up with folks who wanted to help with the recovery, they provided more than just funds,” stressed Hallmark. “They came out and helped with delivery and setting up households in addition to ministering the recipient families. The credit union volunteers were a tremendous help in reaching out to these families who needed their support.”

“You have to understand that a lot of these families had never had a new TV, let alone two new things like appliances or furniture at a time.

We made sure that nothing we distributed to our families would be something we wouldn’t have in our own homes,” Hatmaker continued.

Fort explained, “Every family served by the credit unions and the church have a common thread – all are better off after the storm, due to the love and compassion shown to them. These partnerships provided more than money. Every volunteer was a part of the whole – they cared enough to come out and work and provide the human touch.”

“Some of these families had never been treated so well,” Fort continued. “They had their lives put back whole and got more than they needed. It is truly a blessing to have played a part in the recovery. But the work isn’t over yet. We still have 24 families who need to be rehoused. With the help of the church and the credit unions, we are confident we will get the donations to help those families get their new start.”

“Credit unions don’t have the corner on compassion, but it was incredible to see so many credit unions and members come together

Work efforts included delivery, setup, and a new home for those affected by the tornadoes.

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Tornado Tragedy (Continued) to provide aid to the families who needed a hand up,” Cobb stated.

“This is a truly noble cause and I was thankful to be part of something so much bigger than we are.”

“Banking is a verb,” said Hallmark. “It doesn’t define a building.

You can ‘bank’ at a credit union. But these kinds of trying times which bring the communities together shows that we are much more than customers at the credit unions, we are members.”

Participants in the adoption program: Alabama Credit Union Alabama Teachers Credit Union Central Florida Chapter of Credit Unions City Credit Union

Cliff Rosenthal (National Federation of Community Development Credit Unions) Corporate America Credit Union EBSCO Federal Credit Union Family Security Credit Union Federal Employees Credit Union Five Star Credit Union Montgomery VA Federal Credit Union New Horizons Credit Union Riverdale Credit Union Southeastern Credit Union Foundation Tuscaloosa Chapter of Credit Unions Tuscaloosa Credit Union ■

Cooperative Initiatives Welcomes New Staff Members The Cooperative Initiatives Department welcomes Member Relations Specialists April Ales and Judy Scott to the team.

“Both Judy and April have extensive credit union experience as well as operational and compliance knowledge,” said Laura Vann, VP, Cooperative Initiatives. “We think they will be very effective in supporting our overall member relations efforts, particularly our small asset size credit union program and our chapter development program.”

April Ales is based in Tallahassee and serves as the liaison to the Wiregrass (AL), Gulf Coast (FL), Tallahassee, and Northeast FL chapters and will work with the credit unions in those chapter areas. April comes to the League from Florida A&M University Federal Credit Union, where she worked for seven years. As April Ales the Vice President of Administration, April managed administrative functions for the credit union, including automation, training, human resources, BSA/OFAC issues, purchasing, and, also, worked on marketing campaigns.

Before joining the credit union industry, April held positions with Florida Children’s Forum and The Florida Department of Juvenile Justice. April holds Bachelor’s degrees in Criminology and Sociology from Florida State University.

April N Ales 866.231.0545 x1038 Cell: 850.212.9059 | Fax 850.558.1039 april.ales@lscu.coop

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Judy Scott is based in Orlando and will serve as the liaison to the North Central (FL), Central FL, Tampa (FL), Pinellas (FL), and Sara-Mana (FL) chapters. She will work with the credit unions in the chapter areas listed above. Most recently, Judy was the VP of Operations at Central Florida Postal Credit Union, where she has Judy Scott worked nearly seven years. Judy has a great deal of experience in fraud, member service, management, and operations. In her role she established numerous policies and procedures to make her credit union more compliant and efficient.

Before her tenure at Central Florida Postal, Judy was a client representative with Fiserv Credit Processing, and spent six years as the credit/debit card supervisor for Orlando Federal Credit Union.

Prior to joining the credit union family, Judy spent eight years with First Union/Wachovia, where she worked in a variety of branchbased positions.

Judy Scott 866.231.0545 x1062 Cell: 850.212.2594 | Fax 850.558.1063 judy.scott@lscu.coop.

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Collaboration & Cooperation Through Affiliation Laura Vann, VP, Cooperative Initiatives Throughout the first two years as the League of Southeastern Credit Unions (LSCU), the league has shown member credit unions the value of membership. By asking your opinion, the LSCU has focused its resources in the areas that you have identified as most important—advocacy and information. In our most recent member survey, 92 percent of the responding members said they are satisfied with the LSCU and 93 percent said that the LSCU understands credit union needs.

Collaboration and cooperation can strengthen credit unions, both individually and as an industry. As we continue to face economic challenges and an increased regulatory burden, now is the most important time in our history to speak with a unified voice.

Cooperating through Advocacy LSCU represents 298 credit unions with $57.4 billion in assets and 6.3 million members in Washington, DC, Tallahassee, and Montgomery. Our numbers help us command attention and convey a powerful, collective message to lawmakers. The Governmental Affairs team has focused on the issues important to you: interchange, public deposits, and building better relationships with regulators.

Merrill Mann, president/CEO of APCO Employees Credit Union in Birmingham, AL also emphasized the need for a strong advocacy program.

“While we may not win every skirmish with bankers, retailers, etc., I have a high degree of confidence that our interests are being represented and our collective voices heard at both the state and national level. As individual credit unions, we must have an advocate that can respond at all times when deliberation or procrastination is not an option and that is what the League and CUNA provide. Cooperatives only work when participants cooperate. I am glad we are able to do our fair share by supporting the two associations [LSCU, CUNA] that do so much to improve and ensure a sound operating environment for credit unions now and in the future.”

Collaborating through Communications On September 7, the largest “voluntary” image campaign waged by credit unions hit the media markets in Alabama and Florida. The 2011 image campaign is just the first wave of a multi-year approach to enhancing the image of credit unions in Alabama and Florida. The ongoing success depends on the continued collaboration of our member credit unions.

The LSCU website is continually updated and features multi-media components such as videos and podcasts. Special reports from major events such as the CUNA GAC and the Annual Convention & Exposition keep members informed and engaged. Traditional forms of media such as our quarterly magazine, Signal, and our weekly newsletter, eSignal, and the Director’s Resource, a newsletter for volunteers, are valued information sources.

Expediting Educational Opportunities LSCU’s educational programming strives to deliver tools ready for implementation. Members can choose the educational format that works best for their learning style. Educational opportunities include workshops, distance learning, LSCU councils, and major events such as the Annual Convention & Exposition and Development Conference.

Distance learning is a favorite of our member credit unions with 132 credit unions participating in one or more of the 70 webinars offered

by LSCU in 2011. For others, conferences and workshops meet your education needs. More than 450 credit union employees and volunteers attended a conference or workshop in 2011.

Facilitating Best Practices through Cooperative Initiatives Collaboration is the keystone of all activities of the Cooperative Initiatives department. Member relations, small asset size credit union development and support, chapter development, promotion of financial education, the Southeastern Credit Union Foundation (SECUF), and the international partnership all require collaboration and cooperation to succeed.

Planning session facilitation is one area of assistance provided by the Cooperative Initiatives team. Planning is critically important for credit unions, but each credit union has different outcomes. For Florida Hospital Credit Union, the focus was internal. “Our facilitators led us through an analysis of our member survey, our employee survey and trends in the financial services industry. The discussion helped us hone in on key issues that have an impact on our operations,” said Rob Hatefi, CEO of Florida Hospital Credit Union. “The board stated that this was the best planning session to date. They also stated that the facilitators were well prepared and organized. We are looking forward to working with you again at our next planning session.”

When 62 tornadoes ravished Alabama on April 27, the SECUF and the LSCU stepped into action. With the support of the National Credit Union Foundation and CU-AID, their online disaster relief system, $157,500 was raised to support tornado relief efforts in Alabama. The SECUF dispersed $56,500 in grants to credit union employees affected by the tornadoes.

Additionally, $50,000 in funding was provided to the American Red Cross for disaster assistance in central and north Alabama. Grants of $12,500 were provided to local projects through the chapter match program.

The credit union movement is only as strong as our credit unions are collectively. Now is the time to work together to promote the credit union difference, and let our members and potential members know we are unique and a better alternative than a bank. The best way to improve the operating environment for credit unions is by us working together. Your active participation as a member of LSCU and CUNA gives us that unified voice needed to secure our place within the financial services industry. ■ SIGNAL: Vol. 2, Issue 3

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FOUNDATION

Foundation Southeastern Credit Union Foundation Debuts New Logo Amber Tynan, executive director, Southeastern Credit Union Foundation The Southeastern Credit Union Foundation (SECUF) debuted its new logo at the 2nd LSCU Annual Convention & Exposition. The logo and tagline (see below) represent SECUF’s mission which is more than the services offered; the mission is something credit unions will want to be a part of and share in, by enriching the lives of those we encounter today, through charity, community, and cooperation.

Following the consolidation of the pre-existing foundations, the SECUF announced three new at-large directors that will join the LSCU Executive Committee in making key decisions affecting the Foundation and the communities in which our credit unions serve.

The new trustees are: • Kevin Johnson, chief information officer Suncoast Schools FCU • Jan Bias, vice president of human resources Redstone FCU • Derrick Ragland, chief operating officer APCO Employees Credit Union “This is a tremendous opportunity to be involved in the charitable arm of our League, and I am delighted to be a bigger part of it,” said Jan Bias. “Being so involved on a local front, I am excited to work with other credit union markets in gaining their involvement for the greater good,” said Bias.

To date, the SECUF has contributed more than $87,000 in relief grants to disaster victims, including credit union employees and members) following the Alabama tornadoes in April. Through a $100,000 match to the CUAid funds raised, the SECUF contributed $50,000 to the American Red Cross of Central Alabama to help in their relief efforts, while also awarding $12,500 in matched funds to both the Tuscaloosa Chapter of Credit Unions and the Northeast Alabama Chapter of Credit Unions for Rebuilding Alabama projects in their local communities.

Two $5,000 requests were granted to the Tuscaloosa Chapter of Credit Unions to assist with two separate projects. The first project

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was an initiative spearheaded by Tommy Cobb, president/CEO of Tuscaloosa Credit Union that sponsored families who lost all of their belongings in the storm. m. The other program, led by Alabama Credit Union, was the Forget Us Not Tuscaloosa Calendar project to assist with soliciting and maintaining volunteerism in their community throughout the rebuilding process. s.

“Volunteerism and support for our community has been immensely sely impressive during the weeks following the storms, however the level of volunteer help and donations is sure to subside long before our city is whole again,” said Steve Swofford, president/CEO of Alabama Credit Union. “This project was created to help sustain long-term volunteer efforts for a city that will need it for many, many months to come.”

The Northeast Alabama Chapter of Credit Unions received a $2,500 match from the SECUF to work in cooperation with the United Way to create a “Debris Removal Assistance Fund.” The fund is designed to assist qualifying homeowners with the removal of heavy debris from their homes or yards.

“There is a huge issue in our area with some homeowners not having the financial resources to have their debris from the April 27, 2011 tornadoes,” said Greg Olmsted, CEO of North Alabama Educators Credit Union and chapter president. He added that in some instances the debris included entire homes. “By partnering with a local agency like the United Way, our chapter will be able to give back to our communities on a much larger scale,” said Olmsted.

SECUF Executive Director Amber R. Tynan participated in a podcast highlighting the successful collaborations of the foundation as well as how credit unions can partner with the SECUF to make a positive impact on the communities we serve. It can be heard on www.lscu.coop. ■

EDUCATION

League Education Put Together A Professional Development Plan & Retain Your Staff Cassandra Grayson, chief of staff, Association Services Professional and development are two interesting words in the business world. For driven employees, professional development is a must. However, many companies use professional development as a caveat for employees, but don’t follow through on the development part. To retain the best and the brightest, companies need to have a professional development plan.

Employees can help their companies with the professional development plan by researching opportunities and getting a good handle on the cost and the time commitment. First, employees need to identify a few factors: • What are my professional goals?

• What area of my job description should I develop?

• How will development affect my performance AND the performance of the company?

Some employees might find the third bullet interesting. The purpose of the professional development is for you to continue to grow in your job, but it’s also to improve the efficiencies and productivity of the company. Any attempt to attend a conference that interests you and does not specifically fit your job description

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will usually result in not being able to attend future development opportunities. Also, remember that it’s great to attend a four-day conference at the beach, but the purpose of the development is not for an employer-paid vacation.

For employers, there are also factors to consider when putting together a professional development plan. Those include: • Identify cost-effective training opportunities.

• How can a number of employees with similar job descriptions be trained?

• Can a plan be put together with a mix of travel and distance learning opportunities?

The League of Southeastern Credit Unions can help credit unions and staff put together a professional development plan. The LSCU has a number of cost-effective opportunities for credit unions to be trained in person and through webinars. The first place for a credit union to start is the Events Calendar at www.lscu.coop. The calendar lists all of the development opportunities with the League.

This includes distance learning, conferences and workshops, and the LSCU Councils.

Put Together A Professional Development Plan & Retain Your Staff (Continued) Each year the League puts together its education calendar with two things in mind, identifying the most relevant topics and containing costs.

This approach helps credit unions and their staff when thinking about professional development. Here are a couple of examples: • The LSCU Annual Convention and Exposition in June offers credit unions more than 15 educational opportunities, plus the LSCU Councils meet offering even more development at one venue • Many of the LSCU workshops are held at credit unions or the League to keep costs down and allow for credit unions to send more staff • The League offers more than 80 webinars, which includes an on demand feature, to keep travel costs down and allow for more staff to take part The idea of implementing a professional development plan can be daunting, especially for those credit unions with smaller staffs. However, the credit union will benefit in the long run and staff retention will grow. Look to the League for help in putting together this plan. Consult a Cooperative Initiatives staff member to get started. ■

LSCU Councils Tune in for the LSCU Council Fall Webinars Join your peers for the LSCU Council Fall meeting via webinar! Webinars are fast becoming an accepted method for delivering education, and they are a convenient and cost-effective training method for credit unions. Just like in face-to-face classes, LSCU Council webinars allow you to see and hear a presentation, ask questions of the instructor, and refer to handouts. You need only a speakerphone and computer with Internet connection. Each council discipline will have its own webinar session and speaker at individual times. The cost of participating in a webinar is $99 or in multiple webinars for just $149.

The councils are designed to provide credit union professional opportunities to network with their peers, discuss timely issues concerning their professions, share best practices, and hear from industry experts. Save the dates! (All times are in Eastern Time zone.)

October 11, 2011 • Lending Council Noon – 2pm Speaker: Ed Swanson, VP/consultant, Lending Solutions Consulting, Inc.

October 12, 2011 • CFO Council 9:30am – 11:30am Speaker: Robin D. Hoag, CPA, CMC, director, Financial Institutions Group, Doeren Mayhew

October 13, 2011 • Operations Sales & Service Council 9:30am – 11:30am Speaker: Lori A. Vary, director of ePurchasing, LEVERAGE

• HR/Training & Development Council Noon - 2pm Speaker: Barbara Bauer, senior sales consultant, Omnia Group

• Marketing & Business Development Council 2:30pm – 4:30pm Speaker: Eduardo Alvarez, managing director, brand & retail strategy, NewGround

• Technology Council 2:30pm – 4:30pm Speaker: Jim Soenksen, CEO, PIVOTGROUP Visit the Event Calendar on www.lscu.coop for topic, speaker, and registration details. For questions contact Lisa Hammock at 866.231.0545 x1146. ■

Sponsored By:

“Like” us on Facebook LSCU Councils

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LSCU Council Advisory Committee Members

A special thank you to the following credit union staff for accepting the role as a member of the LSCU Council Advisory Committee.

CFO Brad Baker, GTE FCU (Florida) Clay Morgan, Listerhill Employees CU (Alabama) Eleanor Brown, Alabama CU Sam Inman, Community First CU of Florida Suzanne Weinstein, Orlando FCU (Florida)

HR/Training & Development David Lyons, IBM Southeast Employees FCU (Florida) Gretchen Quisenberry, 1-2-1 Financial CU (Florida) Jan Bias, Redstone FCU (Alabama) Maria O’Shea, PHR, Central Florida Postal CU Richard Baldwin, SunState FCU (Florida)

Lending Cole Sharp, Family Security CU (Alabama) Jason Doerr, Achieva CU (Florida) Laurie Capelli, Community CU (Florida) Rick Higgins, Coosa Pines FCU (Alabama) Todd Mellenberndt, Insight CU (Florida)

Marketing & Business Development Justin Watson, Naheola Employees CU (Alabama) Kim Deppe, Community First CU of Florida Phil Boozer, America’s First FCU (Alabama) Sara Stern, Community CU of Florida Amy Price, DCH CU (Alabama)

Operations Sales & Service Gina Turner, Alabama Teachers CU Jim Perry, USF FCU (Florida) Nancy Smith, Tampa Bay FCU (Florida) Randy Swift, VyStar CU (Florida)

Technology James Stock, Grow Financial FCU (Florida) Jimmy Smith, Army Aviation Center FCU (Alabama) Tim Simpson, Community First CU of Florida

Compliance Execution: On Time & On Task Find Out About & Analyze New Regulations How is your credit union keeping up?

Where do you go for information?

Plan& Execute What processes exist to determine application and execution?

How effective is your existing response plan?

How frequently do you modify existing procedures?

How do you implement new procedures?

How do you communicate changes to staff?

Document & Exam Preparation How do you currently track your compliance efforts?

What management-ready, user-friendly reports do you receive on a regular basis?

How do you stay updated and ready to change?

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• Complete & effective execution of compliance policies & procedures • One system for organization of all policies & procedures • Quicker adoption of new products with improved compliance agility • Reduction in costs on compliance consulting • Increase in back office productivity • Peace-of-mind during audit time To learn more about this new program, email us at consult@myleverage.com.

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Why join Weemba as a Lender?

In today’s market, there is NO easier way to find a variety of projects in need of funding than through Weemba. People posting projects are actively looking to borrow money - why shouldn’t they

get it from you? 60% of people who qualify for a Credit Union don’t even know it – grow your CU’s membership through Borrowers in Weemba! Search for Borrowers by a wide range of variables: credit score, location, income and more - for free. Pay only for access to the Borrowers you want – no minimums, no down payment, no software installation required!

Every project in Weemba is created by the business or person in need of a loan, not generated through a third-party or collected from somewhere else.

The newest projects with the most information show at the top of every search, letting you see the best and freshest projects first! Each Borrower’s identity is carefully validated and they can attach a credit score to their project if they choose to, at no cost. Weemba is changing the way that Lenders generate business forever. The Borrowers will be there - waiting for you.

CREATE NEW RELATIONSHIPS WITH THE BORROWERS THAT YOU’RE LOOKING FOR AND GROW YOUR CU MEMBERSHIP.

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COMMUNICATIONS

Communications Statewide Image Campaign plays in 14 Media Markets Mike Bridges, VP, Communications & Marketing September 7, 2011 was a big day for credit unions across Alabama and Florida. The much anticipated LSCU Statewide Image Campaign debuted across 14 media markets in two states. The campaign, which utilizes the tag line “Credit Unions: We’re giving banking a better name,” is geared toward Gen. X. What makes the campaign unique is the number of avenues the message will travel to find the target audience: TV, radio, online, social media, a landing website, and public relations.

Before the campaign even hit the air, it was already one of the largest cooperative advertising campaigns ever for credit unions.

With $1.3 million raised, it became the largest voluntary credit union cooperative advertising campaign. At June’s LSCU AC&E, the television ad debuted during the annual business meeting. Credit unions had a very favorable reaction. The TV ads were uploaded to the LSCU website and both ads have generated more than 2,000 views. This created quite a bit of buzz among credit unions.

When Gen X was identified as the main focus of the campaign, it was clear the ads had to find them. Many cooperative advertising campaigns revolve strictly around a television ad and media time is bought for that demographic. In today’s fast-paced, multimedia and social media world, Gen X can be found by a number of outlets, not just in front of a television. Research shows that Gen X is a heavy online media user. The campaign bought TV time in most markets, but the ad also runs online through a number of ad networks. This means that when Gen X is on the internet, the ad will “pop up” as preroll on some online videos and as web banners on popular websites like local media companies, the New York Times, The Washington Post, The Weather Channel, People, and Bloomberg, to name a few.

This will be very different than most cooperative brand campaigns in regards to media usage.

Gen X is also heavily exposed to outdoor media. The campaign has more than 150 billboards across both states. This gives potential members a visual look across multiple markets. Imagine travelers from Huntsville to Birmingham or Jacksonville to Orlando seeing the same billboard two or three times in various locations. Many markets

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also have radio ads that mirror the television ads. The billboards and radio ads have a shared branching component to show that the convenience of your branch is always near. The shared branching networks in Alabama and Florida each contributed $25,000 toward the campaign.

This entire campaign creative (ads) is driving consumers to the website – www.betternameforbanking.com. The credit union difference is illustrated on the front page of the website with a mortgage loan, auto loan and credit card rate button where the consumer can see what they would save by having one of those products at a credit union. There is a page showing the comparison of a number of rates between banks and credit unions. The credit union search function is powered by www.findacreditunion.com.

However, only the credit unions that participate in the campaign will show up in the search function with all of their information for the consumer to make a decision to join.

The 2011 campaign is the foundation for what the League hopes is a sustainable long-term cooperative advertising campaign. The next set of media buys will come in the spring of 2012.

Pre- and post-campaign research is being conducted by SIR out of Richmond, Virginia. SIR provided the preliminary market research to the Florida Credit Union League’s Image Campaign Task Force. The LSCU Statewide Image Campaign Task Force asked SIR to update the research for this year’s campaign. SIR is very familiar with credit unions and consumer banking trends.

The research, along with campaign analytics, will be presented to credit unions later this year as part of the fundraising efforts for the 2012 campaign. The League thanks all of the members of the Image Campaign Task Force who voluntarily gave of their time and helped set the direction for this campaign. ■

Tha n k You

Thank you for your part in building a foundation for a campaign that, we hope, will run for years to come. A total of $1.3 million was raised by 101 participating credit unions across Alabama and Florida, making this the largest amount raised voluntarily for this type of campaign among state leagues. Your support, monetarily and cooperatively, has allowed us a huge first step in educating consumers in Alabama and Florida about credit unions.

1-2-1 Financial CU Achieva CU Alabama CU Alabama River ECU Alabama Rural Electric FCU Alabama State Employees CU Alabama Teachers CU Alabama Telco CU America’s First FCU APCO Employees CU Army Aviation Center FCU Azalea City CU Blue Flame CU Brassies CU Buckeye Community FCU Campus USA CU Central Florida Postal CU CFE FCU Chattahoochee FCU City CU City County CU Coastline FCU Community Credit Union Community First CU of Florida Darden Employees FCU East Alabama Community FCU Envision CU Fairwinds CU Family Savings FCU Family Security CU Federal Employees CU Financial FCU First Educators CU First Florida CU

Five Star CU Flag CU Florida Commerce CU Florida CU Florida Hospital CU Florida State Employees FCU Florida West Coast CU Fort McClellan CU GTE FCU Guardian CU Healthcare’s Cooperative CU IBM Southeast Employees FCU Indian River FCU Insight CU Jacksonville Firemen’s CU Jax FCU Jefferson County Employees CU JM Associates FCU Legacy Community FCU Manatee Community FCU Martin FCU McCoy FCU Mead Coated Board FCU Members First CU of Florida Metro North FCU Milestone CU Mobile Educators CU Mobile Postal Employees CU Naheola CU Navigator CU North Alabama Educators CU NRS Community Development FCU Okaloosa County Teachers FCU Orlando FCU

Partners FCU PBC CU Pen Air FCU Pinellas FCU Priority One CU of Florida Railroad & Industrial FCU Redstone FCU Riverdale CU Rocket City FCU San Antonio Citizens FCU Sarasota Municipal Employees CU Shoreline CU South Florida Educational FCU State Employees CU Suncoast Schools FCU SunState FCU Tallahassee-Leon FCU The Infirmary FCU Tri-Rivers FCU Tropical Financial CU Tuscaloosa Teachers TVA CU Tyndall FCU UCF FCU University of South AL FCU Velocity Community FCU VyStar CU West Coast FCU West Coast Federal Employees CU Wiregrass FCU

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NEWS

League News LSCU AC&E Defines Future Through Collaboration The 2011 LSCU Annual Convention & Exposition (AC&E) carried the theme “Defining Our Future.” The League took credit unions down a path that showed what the future model might look like including building relationships and investing in technology. LSCU President/CEO Patrick La Pine took the concept one step further in his remarks during the Annual Business meeting. He challenged the nearly 900 attendees to define their future through collaboration.

La Pine also debuted the Statewide Image Campaign television commercial. As a cooperative campaign, collaboration in each of the 14 media markets across both states will help the message reach as many non-members as possible.

The collaborative theme was carried through the Annual Business meeting as NCUA General Counsel Bob Fenner talked about credit unions working together during the corporate credit union crisis, CUNA Mutual Group (CMG) COO Bob Trunzo introduced a video that showed how CMG was working side-by-side with credit unions, and National Credit Union Foundation Executive Director Bucky Sebastian updated credit unions on the CUAid program and how credit unions from across the country came together to help the victims of the Alabama tornadoes.

The AC&E keynote speaker for the General Closing session was MSNBC’s Morning Joe anchor Joe Scarborough. He talked about his run in politics and how the first house he campaigned at was split on him as a candidate. It was his parents’ house. He also painted a picture of the climate in Washington D.C. and what to expect in the 2012 presidential elections. Scarborough, who received an undergraduate degree from Alabama and a law degree from Florida, was a crowd favorite as he sprinkled in football references throughout his speech.

Attendees had access to 18 different educational breakout sessions which included a topic for everyone.

Many were standing room only including the 2011 Economic Forecast, Regulator Roundtable, Trends in Financial Services, Credit Union Marketing roundtable, and Financial Literacy training. The League had its own channel on the house cable to update credit unions on the educational topics, as well as any last minute changes.

This was also conveyed through the AC&E’s mobile website.

The AC&E Exhibit Hall was sold out for the second straight year. Sticking with the theme, attendees walked through a galactic “wormhole” to the future of their business in the exhibit hall. Credit unions had six hours of quality time with vendors. Something new in 2011 was a room where credit unions and vendors could meet to talk about business in a more personal setting. The LEVERAGE booth saw very good traffic with many credit unions signing up, on the spot, for the Sprint discounts through the LEVEAGE iPad kiosk.

The LSCU Council Workshops included sessions on CFO development, HR/training development, lending, marketing and business development, operations, sales and service, and technology. Attendees came away from Ken Gronbach’s “Charting the Course through Demographic Change” with many ideas of how their marketing strategy can be enhanced through demographics.

Julie Ferguson’s “Maximizing Relationships” session had attendees singing, dancing, and collaborating on how to utilize relationships to their fullest. ■

Roundtable

Morning Joe

Make plans now for the 2012 LSCU AC&E June 13-16 at the JW Marriott in Orlando.

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Awards The League awards were presented with the late Bill Marquardt of City County CU of Ft. Lauderdale being awarded the Distinguished Service Award.

Pictured above is Patrick La Pine (left) and Tina Williams presenting the Distinguished Service Award to Mack MacVicar and Sandra Spence (right), both of City Count CU, on behalf of this year’s recipient of the award, Bill Marquardt.

His picture will also hang in the Credit Union House in Washington, D.C. Legacy Community FCU CEO Joe McGee was awarded the Professional of the Year; Pen Air FCU Chairman Maurice Johnson received the Volunteer of the Year award; and three credit unions received the Credit Union of the Year award: Naheola CU, Alabama CU, and CFE FCU.

Golf The AC&E Annual Golf Tournament was held at the beautiful JW Marriott Orlando Grande Lakes at the Ritz Carlton Golf Course. The team of Danny Snider, Michael Wood, A.C. Cowans, and Tom Kellgren won with a gross score of 60, while the team (pictured above from left to right) of Jack Hamer, Tom Dorety, Rich Helber, and Darrell Adkins won with the lowest net score of 62. The tournament, along with the silent auction, raised more than $12,000 for Children’s Miracle Network.

Dinner Vox Audio was a big hit as the entertainment for the AC&E dinner/ show, which wrapped up the convention. The five-person group provided all of the music vocally with their voices. Pictured above is LSCU President/ CEO Patrick La Pine as he is pulled up on stage for a little dancing and singing entertainment with VOX during the song LSCU Is So Cool, Patrick’s Gotta Wear Shades. Their unique show included one song that was written especially for credit unions and the League. The crowd gave them a standing ovation after their final number.

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INDUSTRY

Succession Planning – The Basics Eugene O’Rourke, managing director, O’Rourke & Associates Warren Buffett’s age and Steve Jobs medical concerns have propelled succession planning to the forefront of corporate governance discussions throughout corporate America. Succession planning has long been recognized as a component of the board’s responsibility, yet in reality this aspect of corporate governance has been given more lip-service than action, as we witness the unimpressive state of succession planning in two of America’s most valued enterprises – Berkshire Hathaway and Apple. While there are certainly exceptions, credit unions as a whole are not shining examples of conscientious succession planning.

A Corporate Governance Responsibility Corporate governance experts recommend that the board address the issue of CEO succession at least annually, assess the likelihood of experiencing a transition in the short term, and plan for succession, regardless of when it is likely to occur. This approach will maximize the chances for continued success of the credit union.

Typically, there are two types of succession triggers the board needs to be prepared for; one is the planned CEO’s retirement, the other is unplanned transition. Unplanned departures of the CEO are typically the result of health issues, recruitment by another organization, and termination for performance issues. It is the unplanned departures that serve as the underlying reason for succession planning to be an ongoing actionable responsibility of the board.

Succession planning begins with fixing responsibility for leading the process. Boards have delegated this responsibility to one of a variety of board committees - the executive committee, the compensation committee, or a specifically established succession committee. Under normal circumstances the CEO is asked to be a resource to the committee and his / her input is important information which the committee impounds into their process.

Strategy is the Foundation The foundation upon which an effective succession plan is built is agreeing upon the credit union’s strategic imperatives; not only the present strategic imperatives but also asking what changes can be seen coming down the road in the next three to five years that could impact the credit union’s business model. What changes does the committee foresee in the economy, the retail

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financial industry, the credit union system, and technology that are likely to be expressed in the next three to five years? For example, in working with our clients on succession we have encountered credit unions that plan to make seismic shifts in their strategies, such as changing from a TIP charter or a SEG dominated charter to a community charter. Looking down the strategic path three to five years for possible significant changes will help sharpen the board’s focus on the successor profile. Other boards have concluded that the impact of technology on future generations will profoundly impact how their credit union will communicate with and deliver products and services to the membership.

Chances are that your next CEO will face an entirely different environment than your current CEO had to face at his/her hire date and consequently your measuring tool, the CEO candidate profile, will need to be adjusted. Agreeing upon strategic imperatives and determining the skill sets, education, and experience that is required to execute those agreed upon strategies, along with the leadership and communication style, form the substance from which the candidate profile is constructed. Drafting and periodically revising the candidate profile based on the credit union’s changing strategic imperatives and the changing business environment is an important deliverable for the succession committee to discuss with the board annually.

From where is the Candidate Pool Drawn?

Armed with a CEO candidate profile, the succession committee is prepared to begin addressing the sources from which CEOs are drawn. Successor CEOs are drawn from two primary sources - internal candidates who have been groomed as possible CEO successors, and external candidates who are recruited from a national pool of talented professionals. Smart organizations keep both options alive and well in order to maximize the success of CEO succession planning.

It is interesting to note that studies indicate that CEOs of the largest American corporations come from the senior ranks inside of the organization a large percentage of the time – up to 75 percent according to Brendan Sheehan of the international recruiting firm of Korn / Ferry. This is understandable, because these organizations often have tens of thousands of employees and senior executive ranks. Their internal candidate pool is very deep. Our experience is that within credit unions, CEOs are drawn from the senior ranks about 40 percent of the time, and from a national pool of external candidates about 60 percent of the time.

The internal candidate pool is typically comprised of “C” level members of the management team at the senior vice president

or vice president level. The national pool of external candidates is typically comprised of “retail banking/credit union professionals (95 percent drawn from the credit union system and 10 percent drawn from banks, primarily community banks). Candidate pools for many credit unions include at least one internal candidate.

Timing of Leadership Transition The succession committee should assess the likely timing of CEO transition for their credit union. Once this assessment is made the committee should focus their efforts on determining which candidate options, internal, external or both, are most appropriate for the estimated transition timing. It is important for the committee to position their estimation of the likely timing of CEO transition as a planning tool only and not a means of signaling to the CEO that there is building pressure for him/her to depart.

Armed with this information the committee should then determine which of the two candidate pools, internal or external candidates, or both, should be utilized.

The Two Candidate Pools Credit union succession committees should focus their energy and resources on understanding which candidate options are most appropriate for their succession strategy, given that the transition could occur at various points in time. The other piece of the succession puzzle is to gain an understanding of when the CEO leadership transition is most likely to occur. Collecting this invaluable information is admittedly a delicate issue and care should be taken to communicate this information is only for planning purposes, and is contingent upon the occurrence of an unplanned transition which, by definition, implies that a transition is not expected to occur.

The availability of qualified candidates in the external national pool is usually not an issue. At almost any time there are candidates who can fulfill the basic criteria for a credit union CEO search.

Boards would do well to track high performing credit unions, particularly those in their market who have similar business models or those who have business models the credit union aspires to emulate, and attempt to understand their strategies and success in executing those strategies. Monitoring websites and tracking financial performance through peer credit union benchmarking are two tactics that can be employed when keeping boards aware of high-performing credit unions. This approach positions the board well for knowing where to begin looking for external candidates when CEO transition is imminent.

The availability of the internal candidate pool can present challenges. In a perfect world, internal candidates would be ready,

Notes 

Address CEO Succession Annually



Agree on Strategic Imperatives



Address Sources of CEO Candidates



Assess Timing of CEO Transition



Understand Candidate Options



Assess Leadership Team



Evaluate Culture vs. Change

      

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Succession Planning (Continued) willing and able to compete for succession at the time the transition is to take place. It is no mean trick for an internal candidate to be ready at the same time as the transition. More often, either the internal candidate is not yet ready to succeed, needing more experience; or the internal candidate is ready well before the transition is to take place. In the later case, the internal candidate often senses that the opportunity to succeed the present CEO is too far down the road for their career path and consequently leaves the credit union for another opportunity. This is the price the credit union pays for the fickleness of timing.

However, we believe that under most circumstances it is in the credit union’s best interest to continuously invest in grooming their high potential executives for CEO leadership. All along the continuum of the grooming process – cross-training, leadership coaching, mentoring – the credit union benefits from their investment in these individuals because they are, or should be, improving their execution, collaboration and strategic skills. Even if the high potential executive departs the credit union for another leadership opportunity, their contributions remain. An unintended consequence of these well intentioned efforts is that as the management team increases their capabilities, some CEOs realize that their stress is significantly relieved and this increases the likelihood that the CEO will adjust their retirement date to a later point in time. If the money’s good and stress has been lowered, and the credit union is performing well, it is understandable why CEOs would extend their stay. Keep in mind there are solutions that create incentives for the internal candidate to stay and incentives that encourage the retiring CEOs to retire as planned.

The foundation upon which an effective succession plan is built is agreeing upon the credit union’s strategic imperatives; not only the present strategic imperatives but also asking what changes can be seen coming down the road in the next 3-5 years that could impact the credit union’s business model.

Gary Hourian, in a recent article in NACD Directorship, points out that the current CEO’s compensation can be tied in part to their efforts in the internal candidate grooming role they are asked to play. There is even talk in corporate America of paying a post-employment bonus to the retired CEO if the organization

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meets certain performance measurements in the three years after his / her departure. While we have not noticed credit unions linking the CEO’s compensation to succession planning, the idea is worthy of consideration.

Leadership Team Assessment We at O’Rourke and Associates have been helping large credit unions gain an independent, fact-based understanding of their options to continue their credit union’s success through the next generation of leadership. We believe an assessment of your leadership team, as a component of the board’s responsibility for long term succession planning, is fundamental to sustaining your credit union’s success. Our services will help the board and the CEO understand the capabilities of potential successor CEOs on your leadership team. We assess their technical and leadership capability to execute the credit union’s strategic imperatives and we assess their relative competitiveness against a pool of external candidates who would likely vie for the successor CEO position when the present CEO departs.

Culture vs. Change Internal candidates typically bring the advantage of maintaining consistency of the credit union’s culture, member service philosophy, and business model; while external candidates bring the promise of new ideas, diversification of experience and success, and perhaps a greater willingness to consider change. Determining which succession option is the appropriate one can turn on the question of culture vs. change If culture is integral to the success of your credit union in serving its members, then a qualified internal candidate presents a significant advantage to the credit union.

When interviewing some credit union leadership teams and boards we have heard that the greatest risk to the credit union in the CEO succession transition is that the culture may suffer.

Alternatively, we have heard from leadership teams and boards of stressed credit unions or credit unions that plan to execute a significant change in strategy, that change is essential to the success of the credit union. In those cases an external candidate with experience in turning around a stressed credit union, or experience in executing the strategic change the credit union is contemplating, would present a significant advantage over an internal candidate.

Succession planning is a key responsibility that boards should continuously drive in order to assure that credit union members continue to receive an uninterrupted and undiminished flow of valuedriven products and services in the event of a leadership transition. ■

LEVERAGE

Business Development Consultants – Your LEVERAGE Connection Over the past year Alabama and Florida credit unions have seen the emergence of our team of business development consultants (BDCs) throughout both states. These BDCs are your exclusive connection to the League’s service group. We’ve chosen this type of business model to ensure our credit unions have information about and access to any and all things LEVERAGE, in turn, proving a valuable resource to your credit union.

One of LEVERAGE’s objectives is to have a BDC who lives and breathes closer to credit unions in their area. Many of our consultants are remote and have virtual offices so they can be closer to our credit union clients, and, in some cases, only a few hours away. They live in the communities they serve, giving them a more intimate understanding of your credit union, community, and the members you serve.

How Does A BDC Benefit You & Your Credit Union’s Operations?

• They are the primary contact between your credit union and LEVERAGE. If you need assistance, your BDC is just a phone call away.

• They consult with credit unions to uncover strategies to assist them in meet their goals and objectives. In many cases to increase revenue and decrease expenses.

• They will visit on site and demonstrate product and service solutions.

• They can coordinate on site consultation with product experts.

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

Why Consult with the BDC? The BDC plays an important role in leveraging industry knowledge, resources, and buying power. They are the first point of contact when you are looking for solutions to the ever the increasing demand on your credit union. For instance, if a credit union is look for solutions for additional non-interest income, they may recommend the Sprint marketing incentive program. If a credit union needs to reduce costs, they may recommend a credit union take part in an ePurchasing event or participate in the Office Depot purchasing program. If business continuity is a concern, the BDC may offer shared branching, surcharge free ATM’s, or contract lifecycle management. If your credit union is struggling with compliance requirements, maybe ComplyTrac, LEVERAGE’s Automated Compliance Execution platform, can be the perfect solution. Whatever the need, LEVERAGE BDCs can work with your credit union to build a solution.

Meet the LEVERAGE BDC for Your Area: Pictured below are the BDCs for LEVERAGE. Refer to the Regional Consultant Map on the next page to view the areas each BDC covers.

Michael Baswell Resides in Birmingham 205.598.0391 cell mike.baswell@myleverage.com

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Anita Fumaria Resides in Gulf Coast area 850.519.0692 cell anita.fumaria@myleverage.com

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SIGNAL: Vol. 2, Issue 3

Steve Pullara Resides in Tampa area 850.212.4771 cell steve.pullara@myleverage.com

Scott Rosenthal Resides in South Florida 850.264.0621 cell scott.rosenthal@myleverage.com

LEVERAGE Business Development Consultants 866.231.0545

Alabama Region 7

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1.

Muscle Shoals Chapter BDC: Mike Baswell, x2151 Lauderdale, Colbert, Franklin, Lawrence

2.

Tuscaloosa Chapter BDC: Mike Baswell, x2151 Marion, Winston, Fayette, Lamar, Walker, Pickens, Tuscaloosa, Greene, Hale, Sumter

5.

Montgomery Chapter BDC: Mike Baswell, x2151 BDC: Anita Fumaria, x1140 Bibb, Perry, Dallas, Chilton, Autauga, Lowndes, Coosa, Elmore, Tallapoosa, Lee, Montgomery, Russell, Bullock, Macon, Chambers

6.

Mobile Chapter BDC: Anita Fumaria, x1140 Choctaw, Marengo, Wilcox, Monroe, Clarke, Conecuh, Washington, Escambia, Mobile, Baldwin

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Birmingham Chapter BDC: Mike Baswell, x2151 Jefferson, Shelby

7.

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Cheaha Chapter BDC: Mike Baswell, x2151 DeKalb, Cherokee, Etowah, Blount, St. Clair, Calhoun, Cleburne, Talladega, Randolph, Clay

Northeast Chapter BDC: Mike Baswell, x2151 Limestone, Jackson, Madison, Marshall, Morgan, Cullman

8.

Wiregrass Chapter BDC: Anita Fumaria, x1140 Butler, Pike, Barbour, Crenshaw, Covington, Coffee, Geneva, Houston, Henry, Dale

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9 Florida Region 9.

Northwest Chapter BDC: Anita Fumaria, x1140 Escambia, Santa Rosa, Okaloosa

10. Gulf Coast Chapter BDC: Anita Fumaria, x1140 Walton, Holmes, Washington, Bay, Jackson, Calhoun, Gulf, Liberty, Franklin 11. Tallahassee Chapter BDC: Steve Pullara, x1164 Gadsden, Leon, Wakulla, Jefferson, Taylor 12. North Central Chapter BDC: Steve Pullara, x1164 Madison, Lafayette, Dixie, Hamilton, Suwannee, Gilchrist, Levy, Columbia, Union, Bradford, Alachua, Clay, Putnam, Flagler, Marion 13. Northeast Florida Chapter BDC: Steve Pullara, x1164 Baker, Nassau, Duval, St. John’s 14. Tampa Chapter BDC: Steve Pullara, x1164 Citrus, Hernando, Pasco, Hillsborough

BDC: LEVERAGE Business Development Consultant

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15. Pinellas Chapter BDC: Scott Rosenthal, x1160 Pinellas 16. Sara-Mana Chapter BDC: Scott Rosenthal, x1160 Manatee, Hardee, Sarasota, DeSoto, Charlotte, Lee, Collier

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17. Central Florida Chapter BDC: Scott Rosenthal, x1160 Volusia, Lake, Sumter, Seminole, Orange, Brevard, Osceola, Polk, Highlands

18. Palm Beach Chapter BDC: Scott Rosenthal, x1160 Indian River, Okeechobee, St. Lucie, Martin, Glades, Hendry, Palm Beach

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19. Broward Chapter BDC: Scott Rosenthal, x1160 Broward

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20. Southernmost Chapter BDC: Scott Rosenthal, x1160 Miami-Dade, Monroe

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Product Development New Point-of-Sale Lending Platform to Launch Early 2012 Keith Hopkins, VP, Product Support Credit unions are faced with an increasingly challenging economic environment. This has led to a decline in loan volumes, which is significantly impacting interest income. The end result is that credit unions have to rely on increasing fee income just to provide the vital financial services that are needed to meet the demands of today’s member. Finding new channels for lending and new ways to reach consumers is the key to boosting loan volumes and generating more loan interest income. Developing those new channels may be as easy as reaching consumers at the point. More specifically, you’ve got to meet consumers at the point-of-sale.

The potential of point-of-sale lending is largely untapped by credit unions today. While behemoths like GE, Chase, and Citi developed programs to reach medical service providers, veterinary clinics, or cosmetic dentists; credit unions haven’t had the platforms to compete in this arena. If you look at what is going on with healthcare alone, there is a tremendous growth opportunity for consumer finance in the coming years. According to a report from consulting firm McKinsey & Co., out-of-pocket healthcare costs were estimated to be around $45 billion in 2010. By 2015, that amount is projected to be around $150 billion annually. GE’s CareCredit and Chase’s HealthAdvance have programs that provide consumers a solution to covering the needs that everyday life presents.

According to a recent Wall Street Journal article*, GE’s CareCredit is accepted at nearly 140,000 healthcare providers nationwide. That represents a 40 percent increase over the past three years. Consumers are utilizing CareCredit to finance services ranging from Botox to emergency veterinary surgery. It’s a matter of a solution being available at a time consumers need to consider alternatives in order to pay for costly procedures. These companies are able to reach the consumer at the point-of-sale, which is a significant advantage.

Credit unions could be significant players in this market space. One thing that credit unions can bring to the table is a deep connection to the communities they are currently serving. It’s a potential win-win-win scenario that is not present today. Healthcare providers can connect their customers, many of whom may be credit union members today, with a local source of financing that fits their lifestyle. Credit unions are able to establish new business relationships with businesses in their communities by providing sources of finance that aren’t readily available today. To accomplish this, credit unions have to establish a presence at the point-of-sale.

LEVERAGE has been exploring a solution to help you connect with consumers at the point of sale. Over the next few months we will be launching an automated platform that links credit unions with businesses in their communities. This platform will allow credit unions to partner with the businesses and service providers to offer a solution to finance the needs of their customers. These customers may be members today, or they can become members as part of the point-of-sale lending process. Our goal at LEVERAGE is to promote credit unions as the better choice for consumer financial services. The LEVERAGE point-of-sale lending platform will provide a link that helps credit unions with a way to add new loans and generate more loan interest income. *Silver-Greenberg, Jessica (2011, July 16). When Your Doctor Sells Credit Cards. The Wall Street Journal, Retrieved July 16, 2011, from www.wsj.com. ■

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A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 2, Issue 3

Prepare for Fast-Changing Lending Compliance Make the Most of Every Lending Opportunity Bill Klewin, director, regulatory compliance, CUNA Mutual Group The dramatic increase in the pace of lending-related regulatory change doesn’t appear to be slowing down anytime soon. Credit unions need to make lending compliance a serious focus of strategic planning, and be ready to adapt lending operations to counteract increasing compliance costs and potential revenue losses.

If you surveyed the attendees at compliance-related conferences over the last year or so, you’d likely find that credit union CEOs, CFOs, and COOs are more often accompanying their top compliance officers than in years past.

That’s a good trend that needs to continue. Simply put, the credit union industry cannot afford to wait and react only when new rules are implemented. New lending policies, procedures, and marketing must be informed by compliance expertise throughout the planning process.

While our industry is already coping with new rules spawned by the CARD Act and Regulation E overdraft reform, the Dodd-Frank financial reforms and Regulation Z disclosure revisions loom. And the Consumer Financial Protection Bureau will soon add a layer of regulation with an impact we can only guess at now.

To prepare for the compliance challenges ahead, here are some steps credit unions can take now:

Find Qualified Compliance Experts This is becoming more difficult. Demand for this specialized skill is rapidly increasing. Even so, do not cut corners when hiring and developing compliance staff. Be sure that your compliance staff and/ or outside advisors have solid experience in your operating area.

Budget for Additional Resources Compliance costs tend to hit smaller financial institutions harder than larger institutions. An analysis in winter 2011 by Raddon Financial Group measured the full-time employees (FTE) devoted to compliance per $100 million in assets. For institutions with $100 million in assets or less, the average compliance FTEs were 1.25 per $100 million in assets. This dropped to 0.77 FTEs for institutions with assets of $100 million to $200 million, and 0.29 for those of asset size $1 billion or larger.

In addition to that expense, credit union budgets should account for extra work that lending compliance issues may create for other employees. For example, if proposed changes in Regulation Z disclosures for payment protection products are adopted, your lending staff may need additional, ongoing training in how to present these products to members and answer questions about the disclosures.

Establish an Independent Reporting Structure for Compliance If a credit union’s top compliance officer reports to the lending VP, it’s more likely that compliant practices will be sacrificed to gain loan volume. It’s better for compliance to report directly to the CEO or COO. And more is at stake now because of the new rules regarding the fiduciary duties of credit union directors and officers.

Beyond these measures, credit unions must continue band together to work with legislators, the Federal Reserve Board, and other agencies to advocate for prudent lending rules and regulations. ■

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To learn more about this new program, email us at consult@myleverage.com.

SIGNAL: Vol. 2, Issue 3

www.lscu.coop

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DIRECTORY

LSCU Directory LEAGUE 22 Inverness Center Pkwy, Ste 200 Birmingham, Alabama, 35242 3773 Commonwealth Blvd Tallahassee, Florida 32303 866.231.0545

Administration Patrick La Pine, x1002 President & CEO patrick.lapine@lscu.coop

LEVERAGE April N. Ales, x1038 Member Relations Specialist april.ales@lscu.coop David Lenoir, x2158 Member Relations Specialist david.lenoir@lscu.coop Judy Scott, x1062 Member Relations Specialist judy.scott@lscu.coop

Cassandra Grayson, x1004 Association Services Chief of Staff cassandra.grayson@lscu.coop

Amber Tynan, x1154 Executive Director, Southeastern Credit Union Foundation amber.tynan@lscu.coop

Teresa Gray, x2110 Executive Assistant to the President teresa.gray@lscu.coop

Education

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

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 Andrew Gonzalez, x1010 Grassroots & Political Action Coordinator (FL) andrew.gonzalez@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

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

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

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

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

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

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

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

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

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

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

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

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

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

Jason Neifield, x1142 Human Resources Manager jason.neifield@lscu.coop

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

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

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

David Khoury, x1136 Network Administrator david.khoury@lscu.coop

Amy Bryant, x1196 Sr. Member Services Representative amy.bryant@myleverage.com

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

Nicholas Hoffman, x1192 Member Services Representative CRS & Card Services nicholas.hoffman@myleverage.com Barbara Parsont, x1186 Member Services Representative barbara.parsont@myleverage.com

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A Magazine of the League of Southeastern Credit Unions

SIGNAL: Vol. 2, Issue 3

Audit & Compliance

Product Development

Corporate Business Solutions

NewGround

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

John Brumit, x1120 Director, Product Development john.brumit@myleverage.com

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

Business Development

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)

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

Melissa Hamner, x2132 Auditor melissa.hamner@myleverage.com Bonique Turner, x2124 Auditor bonique.turner@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 Brandt Vinson, x1044 ePurchasing Coordinator brandt.vinson@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

CU Members Mortgage

Scott Rosenthal, x1160 Business Development Consultant scott.rosenthal@myleverage.com

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

Anita Fumaria, x1140 Business Development Consultant anita.fumaria@myleverage.com

CUNA Mutual Group

OfďŹ ce Depot Save money on office supplies, breakroom supplies, promotional products, print-ondemand materials, furniture, computers, and more.

Telecom Recovery

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.

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 Baswell, x2151 Business Development Consultant michael.baswell@myleverage.com

CUNA Strategic Services, Inc.

Transworld Systems

Access for credit unions to products, services, and technologies.

Richard Abt, x1152 Account Manager, Card Services richard.abt@myleverage.com

CU Solutions Group

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

Steve Pullara, x1164 Business Development Consultant steve.pullara@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.

Member enhancement solutions with Invest in America, Sprint, Turbotax, and others; website design, content, security, and applications solutions; full-service marketing support; and HRN performance solutions such as Performance Pro, Compease, and Policy Pro.

VERAFIN

GE

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

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

CO-OP Financial Services

John M. Floyd & Associates

Enhance services to your members by expanding your ATM service delivery channels through more than 28,000 surcharge-free ATMs.

Earn non-interest income and provide an overdraft protection program to your members.

ComplyTrac

Outsource most of your daily human resources functions with Landrum Professional, a full-service PEO.

Automated Compliance Solution, not just an information resource, it streamlines compliance procedures and reduces costs for credit unions through procedural controls to meet compliance requirements on a single platform and helps credit unions effectively execute regulations through an automated software.

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.

Landrum Professional

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

Ron Dod, x1030 Marketing Coordinator ronald.dod@myleverage.com

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SIGNAL MAGAZINE RETURN ADDRESS 3773 COMMONWEALTH BOULEVARD TALLAHASSEE FL 32303 22 INVERNESS CENTER PARKWAY, #200 BIRMINGHAM AL 35242