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The Magazine of the League of Southeastern Credit Unions & Affiliates

Living the Seven Cooperative Principles the Credit Union Way

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Message from the President This year we chose to focus on the seven cooperative principles for the theme of the Southeast Credit Union Conference and Expo, formerly known as the LSCU & Affiliates Annual Convention and Exposition. “Living the Seven Cooperative Principles the Credit Union Way” is a very important theme for credit unions, but one that is especially timely this year. Not only does it get to the core of who we are, but at the heart of what makes us unique as well as our long-term sustainability as a movement.

One of our cover stories in this issue is how credit unions have grown from the seven cooperative principles (see page 4). In the story, National Credit Union Foundation (NCUF) REAL Solutions Program Manager Lois Kitsch says that growing just to grow goes against the founding principles. She says growing to serve more members is what makes sense. The cooperative principles should play a part in the business decisions made by credit unions. Maintaining our cooperative principles is key not only to our survival, but to our collective future as a movement.

With the economy improving, many credit unions in Alabama and Florida are doing much better. They are expanding and serving more members through more branches and increased products and services. With this, we are seeing increased competition among credit unions for existing members and for new members. For some, the credit union down the street may be your primary competition. Unfortunately that is the new world we live in and credit unions need to accept it. However, competition should not diminish the need for collaboration and cooperation on issues of importance to the movement, like advocacy or chapter involvement.

As our Image Campaign message says, “60 percent of you don’t know what a credit union is.” There is a large part of Alabama and Florida consumers that aren’t credit union members, but are fed up with their financial institution. There are great opportunities in the marketplace to convert bank customers to credit unions members. Additionally, the growing under-banked and non-bank market is a natural fit for credit unions and the seven cooperative principles can be your roadmap to this segment of the population.

The elephant in the room when talking about credit union competition and long-term sustainability is the number of credit unions nationwide.

When H.R. 1151 was passed in 1998, there were more than 11,000 credit unions. Today there are less than 7,000. Cooperation among credit unions is paramount for our industry. The larger credit unions need to work closely with their respective chapters to help support the smaller credit unions. I can tell you that this cooperative spirit is noticed by our lawmakers and another way that differentiates us from other financial institutions. The success we’ve had during last year’s Don’t Tax My Credit Union Campaign and response to the NCUA’s Risk-Based Capital proposal could not have been possible without the active involvement of credit unions.

Last year I attended NCUF’s Credit Union Development Educators (CUDE) training in Madison. It was an experience that I greatly enjoyed and I highly recommend it to all credit unions. It’s not just for new credit union staff, but for anyone in the movement that needs a refresh of our core principles. What you find right away is that so many people don’t know the seven cooperative principles. That’s not being critical of them, but shows that many credit unions are pushing the cooperative principles aside and not focusing on them. That’s one of the reasons we chose the theme for this year’s conference. It’s time we get back to basics and re-learn the cooperative principles.

Let’s make a renewed effort to work cooperatively together with increased chapter involvement, Southeast Credit Union Foundation support, Cooperative Image Campaign participation, grassroots advocacy activity and PAC fundraising, and Young Professionals Group involvement. If your credit union doesn’t do a lot on the chapter level, find staff that does want to attend. It doesn’t always have to be the CEO. The same goes for attending grassroots advocacy events. We must stay true to our founding principles. It’s in the best interest of our 6.5 million members and the more than 18 million consumers in Alabama and Florida that have still not joined a credit union.

Patrick La Pine, CCE, CUDE President & CEO League of Southeastern Credit Unions & Affiliates SIGNAL: Vol. 5, Issue 2

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Table of Contents Editor Amy Jowers Contributors Jay Brady Mike Bridges Craig Dismuke John M. Floyd Teresa Gray Keith Hopkins Scott Morris Leonard Parkhurst Rob Peters Jared Ross Michelle Thornton Laura Vann Blake Westbrook

Living the Seven Cooperative Principles the Credit Union Way

Representative Jack Williams

Design & Production Perry Albrigo, Pomegranate Studio Letters to the editor may be submitted at submissions@lscu.coop.

Connect with us!

Congressman David Jolly 1

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President’s Message Trends 4 Growing from the Seven Cooperative Principles Credit unions have grown exponentially since that first credit union opened in 1909. What they have not outgrown is the need for the seven cooperative principles. Many credit unions are living out the principles in their daily business and how they work cooperatively with their chapter, state, and national peers. What credit unions need to ask themselves today is, “Am I doing enough with the seven cooperative principles? Can I do more?”

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Advocacy 8 2014 Alabama Legislative Session Overview 10 2014 Florida Legislative Session Overview 12 Risk-Based Capital Breakdown: Proposal, Impact, and Involvement 14 Q&A with Alabama Credit Union Administration Administrator Sarah Moore

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LSCU Legislator Profile 16 Representative Jack Williams 18 Congressman David Jolly Cooperative Initiatives 20 Award-Winning Credit Union Financial Education Programs Promote Financial Literacy at a Young Age Foundation 22 The Southeastern Credit Union Foundation – Who We are and What We Do

HIGHLIGHTS 4 | TRENDS The seven cooperative principles must remain true in credit unions because they are what differentiate credit unions from banks.

8 | ADVOCACY The Alabama and Florida legislative sessions end with several pieces of legislation relevant to credit unions.

20 | COOPERATIVE INITIATIVES 26

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Education 26 As Technology Propels the World Forward, Webinar Training Keeps You in the Know 27 Upcoming Learning Opportunities Communications 28 Third Wave of Cooperative Image Campaign Hits the Air League News 30 League News

Find out what several credit unions are doing to promote financial literacy to youth.

28 | COMMUNICATIONS The Cooperative Image Campaign is in its third wave of “airing.” With a heavier online media buy, it’s the longest and most robust so far.

32 | INDUSTRY Many customers still need a financial safety net.

Read why that is and how overdraft services are an important part of your offerings.

Industry 32 While Economy Improves, Many Consumers Still Need a Financial Safety Net 34 A Unique Rate Environment for Balance Sheet Managers 36 Six Steps to Improving Your Employees’ 401(k) Plan Results LEVERAGE 39 LEVERAGE Card Services – What’s in a Name?

40 Cooperation Spurs Growth in Contract Management Program 45 CO-OP Offers EMV Solution to Credit Unions 2010, 2011, & 2012

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TREND

Growing from the Seven Cooperative Principles

By Mike Bridges, vice president, Communications, LSCU

Credit unions first began sprouting up in the United States around 1909.

Massachusetts was the first state to adopt credit union state laws. Cooperatives had actually been around since 1844 when the Rochdale Equitable Pioneers store opened in England.

Around that same time, the Equitable Society of Rochdale Pioneers wrote down some “practices” for the cooperative idea.

The “practices” later became the Rochdale Principles: open membership, democratic control (one man, one vote), distribution of surplus in proportion to trade payment of limited interest on capital, political and religious neutrality, cash trading, and promotion of education The Rochdale Principles eventually became the backbone of the cooperative movement. In 1995, the International Cooperative Alliance formally adopted seven cooperative principles which are very similar: voluntary and open membership, democratic member control, members’

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economic participation, autonomy and independence, education, training and information, cooperation among cooperatives, and concern for community. The principles are just as relevant today as they were 170 years ago.

However, they may not be on the tip of credit union employees’ tongues anymore.

“I’m alarmed at the number of credit union professionals who don’t know the seven cooperative principles. Many know that credit unions were founded on them but can’t tell you what one of them are,” said National Credit Union Foundation REAL Solutions Program Manager Lois Kitsch.

Kitsch knows this first hand since she helps teach the National Credit Union Foundation’s highly successful Development Education (CUDE) program. CUDE immerses credit union people into the history of the credit union movement, the seven cooperative principles, and refocuses them on the member. She says that credit union veterans will tell her that they learned more about the cooperative principles from CUDE training than they did in their entire career.

This shows that there are credit unions that

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are pushing the cooperative principles to the back burner.

The Southeast Credit Union Conference and Expo, formerly the LSCU & Affiliates Annual Convention and Exposition, carries the theme: Living the Seven Cooperative Principles the Credit Union Way. The conference will immerse attendees into the seven cooperative principles and focus on how they can use them in their daily business. It’s something that every credit union needs to reinforce to staff.

“Credit unions should remain true to the cooperative principles because it is what differentiates us from the banks. If we lose the ‘people helping people’ philosophy and serving the underserved along with the personal touch, then we have totally lost the credit union way,” said Alabama Rural Electric Credit Union CEO Jane Boysen.

That’s precisely where Kitsch says some credit unions stray from the core principles.

Nowhere in the principles does it say that cooperatives have to remain small and boutique. Nowhere does it say that they shouldn’t have a plan for growth. What cooperatives need to remember is that any

Cooperation is Key! growth plan needs to include the elements of cooperation. Credit unions are in a period of growth in Alabama and Florida. Membership is growing incrementally every quarter while assets are at records levels. This usually leads credit unions to feel they are in a position to expand. However, the expansion needs to fall within a business plan that is based on the cooperative principles.

“When you get big for the sake of big, then you are moving away from the idea of serving people. If you grow to serve more people, then your growth makes more sense,” says Kitsch.

“As credit unions, we are truly committed to reaching out to underserved communities and assisting those who have limited access to financial products and services. Increasing active participation in the communities we

knowing that we stand united together as an industry,” said Boysen.

That unity, along with the structure, is what differentiates cooperatives from other businesses. Since the first credit union opened in Massachusetts, credit unions have worked hard to focus as much attention on their members as possible. Credit unions are really living cooperative principle number seven – concern for community. They work together to offer financial literacy to their communities. They work hard to support various charities in their communities.

JetStream FCU, based in Miami Lakes, looked hard at its membership and realized that 75 percent were low income. The credit

“I’m alarmed at the number of credit union professionals who don’t know the seven cooperative principles. Many know that credit unions were founded on them but can’t tell you what one of them are,” said National Credit Union Foundation REAL Solutions Program Manager Lois Kitsch. serve will lead to amplified membership growth thus ensuring the future health of our industry,” said JetStream Federal Credit Union CEO Jeanne Kucey.

What Kucey says makes sense on two levels. With a higher visibility in the community, credit unions differentiate themselves from the competition. Thus showing why more consumers benefit from doing their banking at a credit union.

The other part is that the future health of the credit union industry is dependent on cooperative principle number six – cooperation among cooperatives. If credit unions aren’t willing to work together, the entire industry suffers.

“By sharing information with other credit unions and knowing that your peers are willing to help if you ask, many decisions are made by using expertise and knowledge from others. The biggest advantage is

union received a low-income designation. It also took member service a step further.

“We recently decided to certify every JetStream team member as a Community Development Financial Counsellor. We feel this expense is justified as each employee should possess the tools to effectively manage their finances. Every JetStream team member, regardless of position, has the ability to positively impact their community by assisting friends, family, neighbors, classmates, and our membership with financial counselling.

We anticipate that by year-end, all JetStream full and part-time team members will be certified, a first in the credit union industry,” said Kucey.

Alabama Rural Electric Credit Union, based in Montgomery, is one of those credit unions with a SEG that is also a cooperative.

It makes it easy for the credit union staff to

Here are some ways to work cooperatively with other credit unions and the LSCU in your community and state.

■■ Chapter meetings and events ■■ Cooperative Image Campaign ■■ Grassroots Advocacy activities ■■ PAC fundraising ■■ State GAC ■■ CUNA GAC

live out the cooperative principles on a daily basis since their members also live the cooperative principles.

This also plays into cooperative principle number three – members’ economic participation. Since Alabama Rural Electric Credit Union understands its members, it can offer loans that the members want such as appliance loans, farm equipment loans, vacation clubs, and various auto loans.

“We are the credit union for one of the largest cooperatives groups in the state of Alabama. We serve 19 Alabama Rural Electric Cooperatives plus the Alabama Rural Electric Association. Our goal each day is to meet the members’ needs and make doing business with us as easy as possible,” said Boysen.

Credit unions have grown exponentially since that first credit union opened in 1909.

What they have not outgrown is the need for the seven cooperative principles. Many credit unions are living out the principles in their daily business and how they work cooperatively with their chapter, state, and national peers. What credit unions need to ask themselves today is, “Am I doing enough with the seven cooperative principles? Can I do more?” As Kucey put it, the health of the industry is dependent on the cooperative nature. While many are living out the principles, some are not. For them, it might be time for a checkup.

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ADVOCACY

2014 Alabama Legislative Session Overview

By Blake Westbrook, grassroots & political action coordinator – Alabama, LSCU With it being an election year, the 2014 Legislative Session convened in January, allowing current members to be in their districts by April to begin campaigning. This year’s legislative session had many highlights.

A new law was passed dealing with the revolving door between lobbying and the legislature. Former lawmakers are now prohibited from lobbying the legislature for a period of two years after they leave the legislature.

Legislation known as Carly’s Law made headlines throughout Alabama, calling for the legalization of the marijuana-derived oil called cannabidiol. The bill, named after three-year-old Carly Chandler who uses the oil to treat seizures, was originally given little chance to pass this session. After a groundswell of support from the public, Alabama House and Senate passed SB 174 unanimously and Gov. Bentley later signed the bill into law. The legislature also passed a $1.9 billion General Fund Budget with much needed increases in funding for the Department of Corrections. A $5.9 billion Education Trust Fund Budget was passed that included an increase in funding for teachers health insurance but did not include the two percent cost of living adjustment for teachers that was asked for by the governor. The legislature adjourned before the governor could send the education budget back with an amendment. After mulling over whether to call a special session, the governor signed the Education Trust Fund Budget into law.

There were also a couple of pieces of legislation that were important to credit unions in this legislative session.

Over the past couple of years, the League, along with affiliated credit unions and the Alabama Credit Union Administration, collaborated on legislation that would update the Alabama Credit Union Act to resemble a the Model Credit Union Act as well as credit union acts in other states. While not controversial, this legislation will allow Alabama credit unions to operate more efficiently and effectively in today’s ever changing regulatory environment. HB 165 was introduced in the House of Representatives by Rep. Greg Wren

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(R-Montgomery) and SB 212 was introduced in the Senate by Sen. Slade Blackwell (R-Mountain Brook).

Included in this bill was language that will allow credit unions to provide board members with insurance protection and expense reimbursement, limit board member liability, allow boards to expel members, and modifies the Alabama Credit Union Administration’s annual operating fees to make the state charter more affordable for some asset classes. The legislation also adds protections for credit unions on accounts created by minors and increases the liability protection from $5,000 to $10,000 on accounts of deceased members.

HB 165 passed both chambers of the legislature and the bill was transmitted to Gov. Bentley on April 1, triggering the 10-day period for the governor to sign or veto the bill. Gov. Bentley signed HB 165, into law as Act No. 2014-317. This legislation became effective May 1, 2014.

SB 121: Strengthening Laws Against Patent Trolls

SB 212/HB 165: Update to the Alabama Credit Union Act

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The passed “patent troll” legislation prohibits a person from asserting a patent claim in bad faith, allows the attorney general to investigate bad faith claims, and provides targets of patent trolling to file suit in civil court for damages.

One of issues that caught the attention of many industries over the past few years this session was patent trolling. “Patent trolls,” or nonpracticing patent assertion entities, are shell companies that have reaped significant financial gains by extorting legitimate businesses with frivolous demand letters and threats of expensive patent infringement lawsuits. Patent trolls leverage ownership of low-quality patents that are difficult to defend in order to collect hefty licensing or settlement fees from industries and businesses of all sizes. In many cases, a true patent infringement has never occurred.

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SB 121 was introduced in the Senate by Sen. Arthur Orr (R-Decatur). This bill was an excellent first step at addressing the growing problem of patent trolls. The legislation prohibits a person from asserting a patent claim in bad faith, allows the attorney general to investigate bad faith claims, and permits targets of patent trolling to file suit in civil court for damages. SB 121 passed both houses and was signed by Gov. Bentley on April 2 as Act No. 2014-218.

Data Breach, Right of Redemption, and Public Deposits There were some key issues in which we did not see legislation filed. In years past, legislation has been introduced to reduce the redemption period on foreclosed properties from one year to 90 days.

That was not the case this year. Opposition from the Alabama Homebuilders Association has prevented legislation from being introduced.

Data breach legislation was also not filed during this session.

Current Alabama law does not provide a remedy to card issuers should a merchant fail to properly maintain access devices to personal information. It should be the responsibility of a retailer to ensure their access devices and systems are maintained with proper security provisions, as well as to ensure that all security protocols are followed. Changes to interchange could remove one argument

from opponents, but private rights of action as the enforcement could remain an issue for Republicans who view it as a new avenue of lawsuits for plaintiff’s attorneys.

Finally, legislation that would amend the SAFE Act to allow credit unions to accept deposits from public entities (municipalities, school boards, etc.) was not filed this year. With the legislation to update the Alabama Credit Union Act moving during the session, the League felt it was important not to give the bankers an opportunity to object to a piece of legislation that was non-controversial. However, in future legislative sessions, public deposits will remain a top priority with the League.

With the passage of the update to Alabama Credit Union Act, the 2014 Legislative Session was a successful one for credit unions. As with all of our successes, it could have not been possible without the help of our affiliated credit unions. If you have any questions about this session feel free to contact us. Our credit unions’ input is a key factor to a successful legislative agenda.

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ADVOCACY

2014 Florida Legislative Session Overview

By Jared Ross, senior vice president, Association Services, LSCU On May 2, the 2014 Florida Legislative Session came to an end as the House and Senate concluded its business and adjourned Sine Die. Each year, nearly 2,000 bills are filed and less than 15 percent of those bills actually pass. This year was no different as 1,812 bills were filed by the legislature and 258 (14 percent) passed both the House and Senate identically and headed to the governor’s desk.

Several issues made major headlines this year, including a fight between big beer distributors and small, craft beer breweries.

Nothing changed in the world of beer as the status quo on how beer is distributed in Florida remains. Additionally, gambling was a big issue again in 2014, but nothing changed there either. With no change in the gaming laws, we won’t be seeing Vegas style casinos in Florida anytime soon. Several gun issues were brought up again, though the state’s “Stand Your Ground” law remained unchanged. And of course, the state’s budget, a record $77.1 billion, passed providing an $11 million pay increase for law enforcement and $10.9 million increase for assistant state attorneys and public defenders. Also $20 billion in education funding, including $6,937.23 spending per K-12 student, $10.1 billion Department of Transportation budget and no tuition increases for university students.

Among the small amount of bills that passed were some important items for credit unions.

HB 673/SB 1012: Financial Institutions Late last year, the League was approached by the Office of Financial Regulation about working together to pass some much needed updates to the financial institutions statutes in Florida. While not overly controversial, OFR knew they would need our help, along with the Florida Bankers Association, to get this important piece of legislation through both chambers. They shared with us some draft language and allowed us to include some important items. The bills

were filed by Rep. Doug Broxson (R-Milton) and Sen. Garrett Richter (R-Naples). SB 1012 passed both chambers and heads to Gov. Scott’s desk.

Included in this bill are provisions that clarify to local governments that OFR, not cities and counties, hold regulatory authority over the banking practices of financial institutions. Additionally, credit unions operating in a safe and sound manner will no longer need prior OFR approval and examination to maintain branches in locations other than their main branch. So long as a credit union is safe and sound, it will be allowed to move and open branches, after giving OFR 30-days written notice. Further, the bill codifies as an Order of General Application from 2011 that would allow credit unions, after approval of their membership, to establish employee, officer, and director benefit plans, insurance, and investments consistent with NCUA rules for federal credit unions. Finally, a provision in the legislation updates the information a credit union must submit to OFR after electing new officers. Once this bill is signed by the governor, OFR is expected to go through the process of repealing a rule that requires statechartered credit unions to submit a full bio on each new board member, thus eliminating countless hours of needless paperwork. Finally, the bill has language that protects lending institutions from being sued solely on the basis that the institution extended a loan or a line of credit to a borrower.

HB 7085/SB 1524: Security of Confidential Personal Information Following the breach at Target in December, data security became a big issue at both the state and federal levels. Attorney General Pam Bondi made passing legislation to update Florida’s data breach notification statute a priority, and the result was HB 7085 by Rep. Larry Metz (R-Groveland) and SB 1524 by Sen. John Thrasher (R-St. Augustine). In its original form, the legislation was a good idea, but flawed. The language was shortening the length of time an entity would have to report a suspected data breach, and included provisions that strengthened what the Attorney General’s

The League was approached by the Office of Financial Regulation about working together to pass some much needed updates to the financial institutions statutes in Florida. While not overly controversial, OFR knew they would need our help, along with the Florida Bankers Association, to get this important piece of legislation through both chambers.

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ADVOCACY

office could do in the case of a breach. However, there was some language that was added to the bill early on that also would have required financial institutions to report EVERY suspected breach of information, no matter how large or small. After several discussions with the sponsors, the Attorney General’s office and other interested parties, the League was able to include a provision that notice would be required if the suspected breach affected 500 or more individuals.

Additionally, language states that if an entity complies with the notice requirements placed by their primary federal regulatory, they are in compliance so long as they send a copy of any notice of a suspected breach to the Attorney General’s office. SB 1524 was passed by both chambers and heads to the governor’s desk for signature.

HB 151/SB 242: Security of a Protected Consumers Information Another consumer protection bill that passed this session was the Keeping Identities Safe Act (KIDS Act). This legislation, filed by Rep. Heather Fitzenhagen (R-Ft. Myers) and Sen. Nancy Detert (R-Venice) would allow parents or guardians, for a small fee not to exceed $10, to freeze a child’s social security number in an effort to help protect their credit scores. The legislation was a priority of Florida Commissioner of Agriculture Adam Putnam. SB 242 passed both chambers and heads to the governor’s desk.

Foresight is 20/20.

One issue that did not pass the legislature this year but gained an awful lot of traction was HB 367/SB 212; legislation that would require high school students to take a course in financial literacy in order to graduate. The bill sponsors, Rep. Fitzenhagen and Sen. Dorothy Hukill (R-Port Orange), have vowed to bring the legislation back again next year. They’ve also asked us to continue our strong work on the issue, so expect to hear more about this during the legislative offseason. For a quick video on the issue, visit the LSCU video room on our website.

The League will also continue to work on allowing credit unions to become qualified public depositories. Legislation was passed this year that cleaned up language in chapter 280, the security of public deposits act, but it did not include provisions to allow credit unions into the program. While discussions were held about potentially amending the legislation, it was decided that other strategic actions would be more appropriate. The League will continue to keep you updated on these efforts.

While this is a snapshot of some of the major issues affecting credit unions addressed during the 2014 legislative session, it is just that, a snapshot. If you would like more information or have any questions, do not hesitate to contact us. Additionally, if you have any issues you think we should look at for the 2015 legislative session, it is never too early to begin developing next year’s legislative priorities.

If you want to know what’s next in financial services technology, look to the leader in digital banking, payments, account processing and more. fiserv.com/next

© 2014 Fiserv, Inc. or its affiliates.

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ADVOCACY

Risk-Based Capital Breakdown: Proposal, Impact, and Involvement

By Scott Morris, director, Compliance, LSCU On May 28, the NCUA closed the door on comments from credit unions and interested parties on the NCUA board’s proposal to revise the Risk-Based Capital Rule. While that particular day will likely go unnoticed by all but the most engaged credit union supporters, the specifics of the proposal have been making headlines for the past four months. In its original form, the proposal has created many questions and frustrations among those that will be expected to live by its requirements.

It generated a flurry of webinars, town hall meetings, video presentations, and comments, including those submitted by the League and its members.

The Proposal The interest in the proposal continues to grow as does the concern over its unintended consequences for credit unions.

NCUA Board Chairman Debbie Matz has stated that the new calculation is similar to the measure recently enacted for use by corporate credit unions as well as those used by other federal banking regulatory agencies such as the FDIC and the OCC (Office of the Comptroller of the Currency). From there, the board and the NCUA’s analysis apparatus has gone to great lengths to explain how the risk-based capital ratio would be calculated and the different risk weights that would be used if the proposed rule were adopted as proposed.

A review of the proposal shows the most basic change the board has put forth is how a credit union is classified for capitalization purposes. Under the proposal, credit unions

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will be classified within one of the following classifications: While there is much to be concerned about with the proposal if you’re a credit union executive or board member, a primary credit union concern is how the risk-based ratio will be calculated under the new rule? Under the proposed rule, the risk-based ratio would be determined by the percentage of a credit union’s net worth available to cover losses, divided by the credit union’s defined risk-weighted asset base. The risk-weighted asset base is determined by subtracting a credit union’s NCUSIF deposit and goodwill/other intangibles from the credit union’s risk-weighted assets. The long term effectiveness of the new calculation remains an active source of debate among industry leaders even after the comment period ended.

Another aspect of the proposal creating much discussion among credit unions are the revised risk weights for items considered current assets. Revised risk weights are aimed at lowering minimum risk-based capital requirements for low-risk credit unions. High-risk credit unions, on the other hand, require a higher minimum capital amount. Unless revised, credit unions

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considered high risk will be those with significant loan delinquencies, real estate loan concentrations or a large member business loan portfolio. See table on next page for a summary of the new risk weights.

Impact on Credit Unions During the comment period and even prior to the proposals release by the NCUA Board there were rumblings among industry observers about the rules potential impact on credit unions and not every rumbling was positive. The NCUA, for its part, released its analysis of the revisions showing limited negative impact. It was later announced that data from mid-2013 was used in the effort. This has since been changed and optimistic expectations were subsequently downgraded, slightly. Presently, as many as 189 well capitalized credit unions are likely to be downgraded upon adoption of the proposal and 10 or more could be faced with raising millions to avoid being classified as undercapitalized. Credit unions that aren’t facing a classification demotion must watch closely to determine how much, if any, of their margin or buffer (amount in excess of the threshold for being adequately or well capitalized) may shrink. One industry insider

commented recently when questioned about the possibility, “For many credit unions it’s not whether they will continue to have a buffer but how much will it change? For some, the change will be both a huge disappointment and an immense challenge.”

The adoption of the proposal, without substantial changes to ease the effect on credit unions, will surely motivate many management teams to reassess their current model. The NCUA has stated that revisions to the rule needed to be made in order for the risk-based capital requirements for natural person credit unions to be more “in line” with those requirements of FDIC, Federal Reserve, and OCC-regulated institutions, as well as more closely resembling the requirements for corporate credit unions. If that is true, is it not reasonable to mirror other aspects of the rule as well. In comments to the NCUA in January, NAFCU CEO Dan Berger questioned whether the risk weighting in the proposal actually matches real risk present in the system. Berger went on to point out that “The proposed rule assigns rigid risk-weights to many investments that when properly examined represent much less risk than the assigned risk-weights.” Many credit union leaders and members are now calling on the NCUA to join in supporting a congressional review aimed at giving the agency a revamped framework for the supervision of credit unions and effectively protecting its members.

League & Credit Union Involvement The League hosted numerous town hall style meetings throughout Alabama and Florida for credit union leaders and board members to discuss the proposal, provide detailed analysis, promote dialog among institutions and concerned parties, and encourage those commenting to contact their elected officials in Washington DC and make their voices heard.

The League has submitted comments on the proposal to NCUA leadership, elected officials in both Alabama and Florida, and to the Senate Banking Committee outlining serious concerns with the new rule among credit unions. LSCU Director of Legislative Affairs - Alabama Jason Cochran commented about the industry’s response to the proposal, “This is the type of advocacy effort that will guarantee the rule is amended before final adoption. Getting the attention of Congress is the best way to highlight this proposal’s questionable benefit to credit unions and move many of the more negative provisions front and center.”

The Process of Crafting an Effective Rule Continues The League is continuing to follow the progress of this proposal as it works its way through the NCUA’s comment review procedures and as Congress, hopefully, begins to question the issues raised by leagues and credit unions across the country.

It is time for lawmakers to step forward and act to ensure the credit union industry isn’t placed at a disadvantage in the marketplace by a well-meaning but misguided agency proposal.

Summary of Risk-Weights ASSET

PROPOSED RISK-WEIGHT

MBLs

<15% Assets – 100% 15% to 25% – 150% >25% Assets – 200%

Current 1st mortgage

<25% Assets – 50% 25% to 35% – 75% >35% Assets – 100%

Junior real estate and delinquent 1st

<10% Assets – 100% 10% to 20% – 125% >20% Assets –150%

Mortgage servicing

250%

CUSO equity investment

250%

Other assets

100%

Cash on hand

0%

NCUA-issued guaranteed notes

0%

Direct, unconditional U.S. government obligations

0%

Cash on deposit

20%

Cash on equivalents

20%

Investments

WAL 0-1 yr 20% WAL 1-3 yr 50% WAL 3-5 yr 75% WAL 5-10 yr 150% WAS 10+ yr

Corporate credit union perpetual capital

200%

Consumer loans

75%

Non-government student loans

100%

Delinquent consumer loans

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200%

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13

ADVOCACY

Q&A with Alabama Credit Union Administration Administrator Sarah Moore In April, Sarah Moore was selected by Alabama Gov. Robert Bentley to replace former Alabama Credit Union Administration (ACUA) administrator Larry Morgan. Moore was previously EVP and CFO of Colonial Bank based in Montgomery, AL., and Colonial BancGroup.

What drew your interest in becoming the administrator for the Alabama Credit Union Administration?

The administrator position specifically interested me because I believe that I can use my prior experiences to make a difference. I am honored that Gov. Bentley appointed me to serve in this capacity.

Credit unions will be skeptical since you worked previously at a bank. How does this past experience translate to credit unions?

Credit unions serve vital roles in our communities by granting loans and providing financial services to their members. The walls separating banks and credit unions have been chipped away as personnel have moved from one to the other. The knowledge and experience gained in my previous careers as an auditor, bank executive, and as a consultant to financial institutions and real estate professionals all contribute to my understanding of the business of credit unions. I recognize and embrace the differences in business models and regulations governing credit unions as compared to banks.

future viability of credit unions. As part of carrying out the mission statement, I will strive to communicate effectively with management and boards of credit unions and provide information on risks, new regulatory proposals, and other items that will be beneficial to state chartered credit unions. Likewise, I hope that the credit unions will communicate proactively with the ACUA. Where do you see opportunities for credit unions in serving Alabama consumers?

Alabama’s 2012 population was approximately 4.8 million with just over one million counted as state charted credit union members, according to the 2012 Alabama Credit Union Administration’s Annual Report. Alabama has many consumers that do not use financial institutions but rather use more expensive alternative providers of financial services. I would like to see innovation and expansion of credit unions to provide much needed financial services to the taxpayers of the state of Alabama.

“Credit unions serve vital roles in our communities by granting loans and providing financial services to their members.”

How do you see the administrator’s role in working closely with Alabama’s state-chartered credit unions?

The role of the administrator is to ensure that the ACUA carries out its mission statement. The core of the mission statement is to provide effective supervision and regulation in order to affirm the

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A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 2

Upcoming Hike the Hill & Governmental Affairs Conference Dates Join the League in meeting with legislators face-to-face LSCU Hike the Hill September 16-17, 2014 Washington, D.C.

CUNA GAC March 8-12, 2015 Washington, D.C.

For more information, visit www.lscu.coop or contact LSCU SVP, Association Services Jared Ross at 866.231.0545, x1012.

LSCU Legislator Profile

Representative Jack Williams Representative Jack Williams was first elected to the Alabama House of Representatives in a 2004 special election. Prior to being elected to the House, he served for over eight years as Jefferson County Tax Collector.

Rep. Williams is chairman of the House Commerce and Small Business Committee, and vice chairman of the House Financial Services Committee. He also chairs the ADECA Oversight Committee and co-chairs the Alabama Sports Agents Commission.

How and why did you become interested in public service and politics in particular, and what led you to run for the Alabama House of Representatives?

I developed an interest in politics while I was in college.

I started volunteering on campaigns and got involved in the public policy side of things while helping some friends get elected to the legislature. My predecessor died in 2004 and several friends and neighbors asked me to run to replace him.

What are the most important issues you see facing the Alabama today?

Staying the course. Since 2011 our legislature has been very reform minded, we have some tremendous victories under our belt â&#x20AC;&#x201C; but there is so much more to do and we have to be diligent to continue pushing for the reforms needed to improve our state. It is critical that we continue the push for economic development, new job creation and the expansion of existing businesses and industries.

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With the 2014 Legislative Session wrapped up, what pieces of legislation that passed the Alabama House of Representatives are you most proud of? What pieces disappointed you the most?

The welfare reform package was very important on two fronts; our reform efforts will help make certain recipients benefits are going toward needed expenses and not being misused and this gives greater confidence to the taxpayers who are paying into the system. They need to know their tax dollars are being spent wisely.

I was disappointed that our reforms to our human trafficking legislation did not pass this session. Human trafficking is the second largest criminal enterprise in the world today and is growing at an alarming rate â&#x20AC;&#x201C; we need to continue to stay ahead of the issue in Alabama.

Credit unions are seeing an alarming increase in regulatory burden throughout Alabama. In your opinion, what can the Alabama Legislature do to help decrease over-regulation seen in the financial services industry?

Over regulation is a problem across the country. In his first term in office Pres. Obama’s administration administered nearly 70 new regulations per day – for four years. That was almost 70,000 pages of new regulations.

That kind of insanity must stop. We passed legislation in Alabama in 2013 that required new regulations be examined to make certain they did not negatively impact small business. We need to make certain this law is working and do all that we can as a state to minimize our interference with business and financial institutions.

What role do you see for credit unions in serving the people of Alabama and how do you see them as part of the continuing economic recovery?

Credit unions provide access to capital for families for purchases and emergency situations. Our economy would be even more sluggish were it not for the efforts of credit unions to help their members buy, remodel. and travel.

Continuing to operate in fiscally sound ways and opening doors for members to be able to spend money will help drive the Alabama economy.

How important is grassroots advocacy in the legislative process? If you could give one piece of advice to credit union advocates, what would it be?

Grassroots advocacy is critical to the process. Stay in touch with your legislator, especially on your critical issue.

Build relationships and learn how the process works. That makes you valuable to your organization and to the elected official. ■

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LSCU Legislator Profile

Congressman David Jolly Congressman David Jolly was elected to represent Florida’s 13th Congressional District during a special election to finish the term of the late Congressman C.W. Bill Young in the 113th Congress. Before his successful bid to represent Florida’s 13th Congressional District, Congressman Jolly served as a vice president of the Clearwaterbased Boston Finance Group, as well as chief executive officer of Olympus Foundation Management. Congressman Jolly serves on the House Committee on Veteran’s Affairs and the House Committee on Transportation & Infrastructure.

Why did you become interested in public service and politics?

I’ve always been interested in history, civics, and government since I was a young man. Shortly out of college I had never been north of Tennessee, but I knew I wanted to work in the U.S. Congress in one capacity or another. I thought it would be a remarkable opportunity if I could do it. I didn’t know a soul when I drove up to D.C. and begged people that believed I could answer a phone and say “yes sir.” In 1995, I went to work for Rep. Bill Young.

What are important issues you see facing Congress today?

We clearly need to address our long-term fiscal situation. I think we have to change the way we look at it. It can’t simply be a matter of how much are we spending and how much debt is ok. Six years ago our national debt was at $10 trillion. By the time Pres. Obama leaves office it will be $20 trillion. Everybody bears responsibility, not just the president. In eight years we will have doubled what it took 226 years to accumulate. We know we have to address fiscal issues.

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A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 2

We have to look at long-term mandatory spending.

In the past 50 years it’s doubled. To me it’s a matter of national security. It’s a matter of whether we remain the world’s super power by having an economy that is the envy of the rest of the world. I also believe incremental progress is still progress. In some small area where we can effectuate change, we should be doing so.

For my district it includes flood insurance which is a major issue. We need to do a better job of creating a more sound system that is also more affordable. We also have local law enforcement issues; human trafficking and veteran’s homeless programs. We have a district that is comprised of mostly beaches, so we have to address some beach nourishment issues to protect our economy and make sure we remain a destination for people in the U.S. and around the world.

What role do you see credit unions playing in Florida’s economy?

As a young staffer, I worked many of the credit union issues that exist today. We need to ensure that credit unions are healthy, strong, and available to consumers because we know they provide a product that is attractive to members. That’s why I’ve been a member for 20 years.

I think there is some cooperative spirit between credit unions and banks, and I don’t think we’ll see any major reforms on the horizon. We should continue to see the growth of credit unions.

If you could give credit unions one piece of advice in being active in grassroots advocacy, what would it be?

Personally, I virtually put all of my staff in the district and have a limited staff in D.C. It’s vital that credit unions members and leagues keep Congress educated on the importance of credit unions, as well as the challenges that lie ahead. Make sure we have an educated Congress that can make informed decisions. I said earlier I’ve worked on credit union issues for 20 years; that’s not true of very many other members on the Hill. More than half of Congress has been here less than six years. Unless they come from a financial services background, they probably don’t appreciate some of the issues that credit unions face.

I always think that healthy dialogue is important and those unwilling to do so I’m suspicious of.

Mary Wood, president/CEO, Florida West Coast Credit Union, and Art Wood, president, Railroad & Industrial Federal Credit Union, with Rep. David Jolly (center).

What should credit unions know about you as you begin your term?

I’m a credit union member. I understand the policy issues that credit unions have been working on for quite some time. My door is always open. I believe in the institution of the United States Congress. For all of the concern about the Congress, much of which is earned, when it operates appropriately it can really do good work for the country. It can effectuate change that reflects the will of the people. ■

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19

INITIATIVES

Award-Winning Credit Union Financial Education Programs Promote Financial Literacy at a Young Age

By Laura Vann, vice president, Cooperative Initiatives, LSCU Just over a year ago, the President’s Advisory Council on Financial Capability was issued its final report and offered recommendations designed to assist the American people in better understanding financial matters and making informed financial decisions. The Council’s four top recommendations focused on the consistent and continuing integration of financial education into Americans’ lives: in families and schools; in workplaces; in local communities; and through an appropriate balance of research-based education, regulation, and product design to benefit consumers.

A report on financial capability wasn’t necessary for credit unions throughout Alabama and Florida to know the importance of ongoing financial education for consumers of all ages.

Two financial education programs recently won Diamond Awards from CUNA’s Marketing & Business Development Council. Family Savings Credit Union in Gadsden, AL won in the Financial Literacy for Credit Unions with assets of $250 million to $500 million for its Money Island Financial Literacy Program. CFE Federal Credit Union in Lake Mary, FL won in the Financial Education for Credit Unions with assets of greater than $1 billion for CFE’s Robust Financial Education Outreach.

“The Diamond Award competition is the most prestigious competition for excellence in marketing and business development in the credit union industry,’ said Michelle Hunter, chair of the CUNA Marketing & Business Development Council, and SVP of marketing & development

20

Forty percent of adults gave themselves a grade of C, D, or F on their knowledge of personal finance. Fifty-seven percent indicated they are worried over a lack of savings, including 43 percent who are concerned about not having enough “rainy day” savings for an emergency, and 38 percent concerned about retiring without enough money set aside. These sobering statistics are from the Seventh Annual Financial Literacy Survey of U.S. adults, conducted in 2013 on behalf of the National Foundation for Credit Counseling, Inc.

at Credit Union of Southern California. “Credit unions that receive these awards should be very proud of their accomplishments and know that their work represents the very best examples of creativity, innovation, relevance, and execution.”

Family Savings Credit Union launched Money Island in April, 2012. The program is designed for kids ages 8 to 14 and is a multi-level online game. It teaches valuable financial skills and real-life rewards are built into the game. Money Island is aligned with the Jump$tart Coalition for Personal Financial Literacy’s national standards for financial education, according to Lesli Bishop, the credit union’s marketing director.

The credit union hired a financial literacy liaison to oversee the program and take it into the schools. The financial literacy liaison, Debbie Landers-Scott, is a retired middle school teacher with 35 years of experience. LandersScott met with the superintendents of the three school systems in Etowah County, the home office location of Family Savings Credit Union.

The superintendents were pleased to have a

A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 2

turn-key program for the teachers implementing the new financial education standards adopted by the Alabama Department of Education.

“As the school year is ending, we have reached a total of 3,215 students in Etowah County with our Money Island Program. We have confirmation from the superintendents in our county to continue the program in all schools,” she said. “During the 2012-2013 school year, our program was used in the seventh and eighth grade, but during the 2013-2014 school year our program has been incorporated into the ninth and tenth grade levels because of the new standards required for graduation.”

CFE Federal Credit Union received a Diamond Award for its “Robust Financial Education Outreach.” According to Michael Ferreer, director, marketing, CFE has customized dozens of financial literacy programs for all ages. “CFE is founded in education, and as result, we attempt to cater our financial literacy programs to our members and neighbors along each step in their financial path. From early childhood

to seniors, we have developed presentations from ‘Money Basics’ to ‘Estate Planning.’ Our programs are extended to schools, low-income housing projects, correctional facilities, and retirement communities,” Ferreer said.

Additional financial education programs include a high school branch program, providing real-life financial training for students as they run the daily operations of the branch and member webinars on topics such as 10 Steps to Financial Success, Road to Financial Independence, Repaying Student Loans, Building a Better Budget, Identity Theft, and Breezing through the Holidays. Each webinar averaged 110 enrollments in 2013. In 2013, CFE provided nearly 90 financial literacy presentations, reaching more than 2,500 people in the Central Florida area.

“CFE also encourages young members to start saving early with its Fun Bucks program,” Ferreer said. “The program includes customized statement messages and direct mail encouraging savings for our youth members.

Those who participate in the program will earn five percent of the total amount of deposits up to $100 per quarter. In 2013, nearly $73,000 was distributed to more than 1,700 youth accounts,” Ferreer said.

Financial education is a critical need for members of all ages. If your credit union does not have the resources to create your own programs, your can look to customizable programs available from CUNA, the National Endowment for Financial Education, the National Credit Union Foundation, or other sources.

West Coast Federal Credit Union in Clearwater utilizes CUNA’s Seminars in a Box. “We offer six seminars: CreditAbility, Basic Budgeting, Money Mastery, ID Theft, Buying a Car, and Power over Debt,” said Billie Blanchard, CEO of West Coast Federal Credit Union. “These are great for small credit unions because it comes with premade flyers, handouts, and PowerPoint presentations.”

Blanchard said the credit union offered 39 classes in 2013 and has 90 classes scheduled for 2014. The 30-minute classes are provided at the credit union’s five hospital locations and

CFE FCU Marketing Specialists Holly Handley and Cassie Roach with some of the kids that are learning about finances.

Seventy-six percent of teens reported that the best time to learn about money management is in kindergarten through high school, but only 29 percent reported participating in programs related to money management, according to the 2013 Junior Achievement/ Allstate Foundation “Teens and Personal Finance” Survey. each class is offered three times during lunch time. Feedback from the members has been positive and the credit union has received requests for additional classes at other sponsor locations as well as night classes for hospital employees who work night shifts.

“Financial education is so critically important,’ said Blanchard. “So many people of small and middle incomes are struggling with their budgets and spending. Talking about spending leaks and giving examples has opened the eyes of many of our attendees.”

Additional information on financial education

resources and best practices is available in the financial education section of the LSCU website.

Credit unions are asked to provide information on their financial education programs to the League using the online reporting form so that we can continue to share best practices and also compile data on the impact of financial education programs in communities throughout Alabama and Florida.

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FOUNDATION

The Southeastern Credit Union Foundation – Who We are and What We Do.

By Leonard Parkhurst, director, Southeastern Credit Union Foundation

The mission of the Southeastern Credit Union Foundation (SECUF) is to serve as a catalyst for credit unions to collectively effect change through charitable giving with the vision of enriching and elevating our communities by applying the credit union philosophy of “People Helping People.” A non-profit organization, the SECUF was formed through the combination of the existing three foundations of the former Alabama and Florida leagues.

The SECUF focuses on the following five pillars: 1. Financial education 2. Professional development 3. Disaster relief 4. Fundraising 5. Credit union philosophy

Financial Education

Professional Development

One of the priorities of the SECUF and the League of Southeastern Credit Unions & Affiliates is to provide financial education to as many people as possible. Financial literacy empowers people with the information they need, providing answers to every day questions. Programs include FiCEP - a certified financial counselor program; NEFE – National Endowment for Financial Education that teaches financial responsibility to high school students; and JumpStart Coalitions – nonprofit organizations made up of members and community partners who work together to promote financial literacy focused on kindergarten through young adults. In 2014, SECUF donated one box set of Biz Kid$ DVDs to all nine Children’s Miracle Network Hospitals in Alabama and Florida. Biz Kid$ is an Emmy Award-winning public television program from the creators of Bill Nye the Science Guy that teaches financial literacy to young people.

The vision is for Biz Kid$ to do for financial education what Bill Nye did for science.

Each year, the SECUF awards professional development scholarships for credit union staff, board members, and supervisory committee members to attend LSCU and CUNA educational events. Scholarships are available for governmental affairs conferences such as the CUNA GAC, State GACs, and Hike the Hill as well as the Southeast Credit Union Conference and Expo, Southeast Leadership Development Conference, and many others. Scholarships are also offered specifically for the LSCU Young Professional Group members. Scholarships are awarded to those individuals who best exemplify the credit union philosophy and whose attendance at approved programs would be beneficial in the perpetuation of credit union goals and ideas on an as-needed basis. Scholarship guidelines and applications, as well as a complete list of events can be found on the SECUF website www.supportourCUcommunity.org.

Acquired a mobile branch, which was donated by Pen Air FCU, that is available during times of disaster.

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SIGNAL: Vol. 5, Issue 2

There is no better way to live the credit union philosophy than working to help those affected by everyday life.

Disaster Relief In times of natural disaster, concern for our credit unions and the communities they serve is a top priority of the SECUF and the LSCU & Affiliates. When disaster does occur, the SECUF offers financial relief grants to credit unions, their employees, and members through a disaster relief fund established for this purpose.

Grants can be used for a broad range of disaster-related needs that include, but are not limited to, critical needs, longer-term recovery needs and reasonable operational needs.

Definitions of these needs as well as the grant application and additional information can be found on the SECUF website.

The SECUF now has a mobile branch that can be deployed to assist credit unions following a natural disaster. The 40-foot mobile branch is handicap accessible with a wheelchair lift for access to the branch. It has an ATM, a secure teller window, and an enclosed private office where members can meet with credit union personnel confidentially.

Fundraising

efforts through an annual fair share contribution based on each credit union’s membership size.

A letter explaining the Fair Share Contribution and indicating each credit union’s fair share amount was included in the 2014 dues packet. A successful Fair Share program will significantly impact the Southeastern Credit Union Foundation and allow us to focus on our mission of serving as a catalyst for credit unions to collectively effect change through charitable giving and education. Additional fundraising activities include golf tournaments at the Southeast Credit Union Conference & Expo and the Southeast Leadership Development Conference. Proceeds from these events benefit the SECUF. Select chapter golf tournaments also donate portions of their proceeds to the SECUF. The SECUF also raises money for Children’s Miracle Network Hospitals and provides assistance and guidance to credit unions for their CMNH fundraising efforts. Miracle Jeans Day is one of the many ways to raise money for CMNH. CO-OP offers a Miracle Match Program that will match a credit union’s fundraising income up to $10,000 for qualified events.

The Foundation encourages credit unions to participate in fundraising for CMNH as the money raised stays with the local CMN hospital.

There is no better way to live the credit union philosophy than working to help those affected by everyday life.

Credit Union Philosophy The credit union philosophy of “People Helping People” speaks to the core of the credit union movement, and the SECUF works to promote this important philosophy. The SECUF and Cooperative Initiatives team hold annual Philosophy in Action workshops to help new and experienced credit union staff understand the principles the credit union movement was founded on. The workshop is modeled after the successful National Credit Union Foundation’s DE program. Attendees come away with a sense of pride for credit unions and a new outlook on serving their members.

To learn more about the Southeastern Credit Union Foundation, visit www.supportourCUcommunity.org or contact Leonard Parkhurst, director, at Leonard.parkhurst@lscu.coop.

In order to support its ongoing activities, the SECUF holds fundraising programs throughout the year. One of the most successful ways for credit unions to provide support to the Foundation is through a Fair Share Contribution.

This option allows credit unions the opportunity to participate in the Foundation’s ongoing

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23

2014 Southeast Credit U Be sure to visit the exhibit hall if you are attending the 2014 Southeast Credit Union Conference & Expo. This year the exhibit hall is sold out with a total of 136 exhibitors with 49 of them NEW to the conference. This is the perfect opportunity to have a one-on-one conversation with companies that specialize in serving credit unions. If you would like to find out more details on the companies listed here, visit the SCUCE Virtual Exhibit Hall located on the SCUCE website at www.southeastCUconference.com.

COMPANY

BOOTH

COMPANY

BOOTH

COMPANY

BOOTH

2nd Node, LLC

905

CU Solutions Group

502

GrooveCar, Inc.

111

AaSys Group

302

CU24

707

Harland Clarke

910

Absolute Financial

711

CUNA Mutual Group

503

Hutto & Carver, P.A.

405

212

IWS

Accolade Asset/Liability Advisory

1135

CUNA Strategic Services

Advisors Plus

803

CUtopia

Advanced Fraud Solutions

911

D+H

406

Agility Recovery

713

Datacard Group

807

Allied Solutions

101

DEI Inc.

815

American Share Insurance/Excess Share Insurance

605

Amherst Securities Group, LP

1012

ARS - American Recovery Service

402

Auto Exam, Inc./Vision Warranty Corporation

906

Automotive Credit Union Services

1014

Axis Data Solutions, Inc.

1002

Blue Water Promotions

214

Bradford Scott Data Corp.

712

BreakAway Incentives LLC

113

Burns-Fazzi, Brock

206

Buzz Points, Inc.

204

Calyx Software

403

Card Services for Credit Unions

613

Cash Connect

907

CastleGarde, Inc.

514

Catalyst Corporate FCU

1004

1123

Diebold Inc.

1000

Digital Benefit Advisors

600

Digital Insight

914

Ding Guard

1137

DiRecManagement Inc.

1107

Dodgen Security Consulting

307

Doeren Mayhew

301

Eclipse Brand Builders

714

Elan Financial Services

805

Embrace Home Loans

912

Employment Technologies Corporation

500

Enterprise Car Sales

1121

John M. Floyd & Associates

615

LCS Financial Services Corporation

205

Legacy Member Services

311

LendKey Technologies, Inc.

1119

Level5, LLC

700

LEVERAGE

505

MaggieMae

1005

Maple Street, Inc.

1003

Mark H. Smith, Inc.

1010

MEMBERS Trust Company MeridianLink, Inc.

207 1117

Morgan Stanley

201

myCUmortgage

1011

MVi

901

NADA Used Car Guide

404

115

National Cooperative Bank

813

EPL

315

Nearman, Maynard, Vallez, CPAs

515

Evans, Simpson & Associates, Inc.

703

NELSON/BrandPoint Design

Executive Benefits Solutions

1006

1129

Nitro Mobile Solutions

215

BOOTH 410

Route 66 Extended Warranty

411

Seibold Security of Florida, Inc.

105

Scherer Construction

706

Share One, Inc.

915

South Carolina Financial Solutions, LLC

812

Southwest Direct

213

FEDCorp

701

Office Depot

504

FEMBi Mortgage

804

OM Financial Group

414

FI Compliance Solutions

614

Oâ&#x20AC;&#x2122;Rourke & Associates

810

FI-MOBILE

103

702

State National Companies

1007

Financial Facilities, Inc.

412

Orth Chakler Murnane & Company, CPAs

First Empire Securities

801

Palmetto Cooperative Services

913

Strategic Resource Management, Inc.

1105

Fiserv Solutions, Inc.

607

PDP Group, Inc.

900

PIVOT Group, LLC

811

Porter Keadle Moore, LLC

401

Print Resources

413

CFS, Inc.

313

CliftonLarsonAllen LLP

715

Compass IT Compliance

305

Consultants & Builders, Inc.

710

CO-OP Financial Services

510

Corporate America Credit Union

513

Corporate One FCU

601

Credit Union Executives Society

N/A

Florida Credit Union Shared Services

Credit Union Service Centers of AL

506

GE Capital Remarketing

501

PSCU

304

CRIF Lending Solutions

814

Glory

202

PULSE

CU Direct

203

Great American Insurance Group

306

CU Members Mortgage

512

GreenPath Inc.

407

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COMPANY Raymond James

Florida Concepts, Inc.

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STS Group

415

SWBC

400

Symitar

903

TCI

210

902

The Credit Union Loan Source, LLC

303

Q2

1131

The Delta Consulting Group, Inc.

1127

R.C. Stevens Construction Co.

1109

The Omnia Group

704

Union Conference Exhibitors Nearman Maynard Vallez

Works 24

CU Members Mortgage

Card Services for CUs

Fiserv Solutions

Office Depot

CU24

Elan Financial Vernis & Services Bowling

ASI/ESI Orth Chakler Murnane & Co

The Sheeter Group

Florida CU Shared Services

BOOTH

COMPANY

BOOTH

705

Vining Sparks

611

Travelers Insurance Company

107

Visa, Inc.

300

True North Custom

211

Williams, Gautier, Gwynn, DeLoach & Sorenson, P.A.

312

Works24 Corporation

314

van Wagenen

Axis Data Solutions

GE Capital Remarketing

Doeren Mayhew

COMPANY

AutoExam/ Vision Warranty

1125

Vantiv

802

Vernis & Bowling

904

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EDUCATION

As Technology Propels the World Forward, Webinar Training Keeps You in the Know Why Webinars Make Sense for Your Credit Union

By Teresa Gray, senior director, Education, LSCU

More than any time in history, the business world is changing.

We live in a world where yesterday’s supercomputers are today’s smartphones, where complex filing systems fill networks instead of warehouses, where encyclopedic knowledge is a few keystrokes away.

It’s a brave new business world, where the need to maximize both budget and efficiency is at an all-time high. Today’s world demands that we do more with less, especially in keeping employees not only up-to-date, but ahead of changing regulations and technologies. It’s a business world where, more than ever, webinar training just makes sense.

What is a webinar?

A webinar is an online, virtual training session. Attendees view presentations on their computer or tablet device and listen to audio via computer speakers or their tablet, smartphone, or telephone. The interactive capabilities allow for communication between the presenter and the audience for questions, polling surveys, etc.

What are the benefits for your credit union, training department, and staff?

Webinars are cost effective and create economies of scale.

The cost of attending a webinar is much lower than in-person training. Your staff can view the webinar together from one location for the cost of one registration fee, eliminating travel costs that can include gas, meals, hotel expenses, and overtime. This can result in a very low per-person viewing cost, with the option to revisit the material in an on-demand form.

Webinars increase productivity and convenience.

When you choose webinar training, your computer or mobile device is the conference room. Participants can view the meeting from their desk without the travel or downtime that comes with attending a live meeting. Webinars are typically 60 to 90 minutes, scheduled during normal work hours, making them the perfect fit for tight schedules. The webinars take place in a comfortable, relaxed environment, with the materials needed close at hand.

The convenience of webinar training also reduces the need for evening or earlymorning training sessions that take staff away from home and family.

Webinars hold long-term value.

Many webinars allow access to the program for a specific period of time after it has been presented. This allows your staff to review the information and access the handouts and tools as often as necessary.

Webinars lower administrative planning, scheduling, and cost.

Registering for and communicating a scheduled webinar to your staff can cost 75 percent less than organizing and presenting a face-to-face meeting. When you weigh the benefits versus the costs, webinars are ideal for leveraging your time and resources to keep staff at the leading edge of today’s business world.

The LSCU & Affiliates partners with the Credit Union Webinar Network to offer more than 100 webinars annually. For more information, visit www.lscu.coop, click on the education tab, then webinars at the top of the calendar for a list of all the webinars. You may also call Becki Payne at 866.231.0545, ext. 2129, visit https://lscu. fed.cuwebtraining.com/store/webinar, or call Financial Education & Development, Inc., at 406.442.2585 for more information.

Today’s world demands that we do more with less, especially in keeping employees not only up-to-date, but ahead of changing regulations and technologies. It’s a business world where, more than ever, webinar training just makes sense.

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A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 2

EDUCATION

Upcoming Learning Opportunities Check out the learning opportunities for 2014 and mark your calendars. More details on each event can be found online at www.lscu.coop.

Click the Education tab then Events Calendar.

June 2014

September 2014

21-22

LSCU OFAC & Bank Secrecy Act Basic & Advanced School, Tallahassee, FL

9

LSCU Fall Regulatory Compliance Update Seminar, Tallahassee, FL

11

LSCU Fall Regulatory Compliance Update Seminar, Birmingham, AL

28-29

LSCU Lending School, Birmingham, AL

28-2

America’s Credit Union Conference, San Francisco, CA

16-17

LSCU Hike the Hill, Washington, D.C.

October 2014

July 2014

7-8

LSCU Collections & Bankruptcy School, Birmingham, AL

13-16

Southeast Regional Director’s Conference | Savannah, GA

21-22

LSCU Lending School, Birmingham, AL

16

LSCU Bank Secrecy Act Workshops, Mobile, AL

TBD

NFCDCUs Community Development Workshop, Location TBD

16

LSCU Bank Secrecy Act Workshops, Huntsville, AL

16-17

November 2014

LSCU Credit Union Philosophy in Action Workshop, Orlando, FL

4-7

August 2014 3-6

Southeast Supervisory Committee Conference, Point Clear, AL

20-22

Southeastern Credit Union Managers Association (SCUMA) Annual Meeting, Destin, FL

Southeast Leadership Development Conference, Destin, FL

*Bolded listings denote workshops and conferences. Nonbolded listings denote webinars.

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27

COMMUNICATIONS

Third Wave of Cooperative Image Campaign Hits the Air

By Mike Bridges, vice president, Communications, LSCU

Consumers in Alabama and Florida will once again see the Cooperative Image Campaign message of “Credit Unions: We’re giving banking a better name.” The third wave of the campaign began on May 28 and will run through July in 14 media markets across both states. This will be the longest and most robust media buy that the League and the Cooperative Image Campaign Task Force have put together. The $1 million media buy targets Gen X and reflects some of the new ways to market online and puts credit unions in spaces they haven’t traditionally been in online.

The foundation of the campaign will be television ads across many of the markets. The TV ad is the same one used in 2012.

The ad, named “Coffee,” illustrates how people not knowing what a credit union is, is like not knowing what coffee tastes like, what a car wash is, and what pants are. It’s a humorous way for consumers to ask themselves why they don’t know what a credit union is. The ad ends with the actor saying that being a member of a credit union is “like finding money every day.” The ad ends with how much money credit unions save members in Alabama and Florida just by being a member. Plus, it pushes consumers to the www.betternameforbanking.com website.

The online media buy is the most ever purchased for the LSCU Cooperative Image Campaign. More than 50 percent of the money contributed by the 115 credit unions is going toward online media.

This allows the campaign to run longer across both states. Here is a closer look at the online elements the campaign will utilize: ■ Search engine marketing (SEM) ■ Facebook ■ Site links through SEM ■ Twitter ■ YouTube ■ Email marketing (banner ■ Pre-roll video on Yahoo accounts) ■ Pandora ■ Mobile location targeting Advertising on Pandora has really been successful for credit unions over the past two years. The campaign will utilize Pandora video ads, as well as banner ads. Twitter advertising is new to the campaign as the social media site continues to skyrocket. The Facebook ads will now use timeline ads and not just ads to the right of the user’s timeline. This will be noticed by many more consumers.

The email marketing will put a Better Name for Banking banner on

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A Magazine of the League of Southeastern Credit Unions & Affiliates

Yahoo mail user’s accounts. Yahoo is the only web-based email that allows banner advertising. Mobile location targeting will put a web banner on the mobile device of a person searching any of the more than 30 keywords the League has identified for the campaign.

The first two waves of the LSCU Cooperative Image Campaign have been highly successful. Research shows that before the first campaign in 2011, only 23 percent of consumers noticed credit union advertising. After the first wave, research showed that 31 percent noticed credit union advertising. Following the second wave, the research showed that the number jumped to 50 percent as being aware of credit union advertising. These are phenomenal results. The Southeast Institute of Research, who conducts the research, was so impressed with the results that they had a colleague look at them to ensure the accuracy. Plus, you can clearly see membership and asset growth take off once the first campaign aired.

When the campaign runs, it gets measurable results. Since the campaign last aired in 2012, membership growth, while still positive, is 25-percent less than when the campaign was running.

The more credit unions that participate, the more consumers will see the collective credit union message. This benefits credit unions of all sizes, especially the smaller ones that don’t have very large advertising budgets or access to top flight creative materials. The Cooperative Image Campaign truly is a cooperative effort. Exactly what has made credit unions successful for nearly 100 years.

While the campaign is running right now, work is already being done for the 2015 campaign. Fundraising will start this fall when the creative direction and the results of the 2014 campaign are presented to credit unions. Visit www.lscu.coop for more information on the Cooperative Image Campaign. The League would like to thank the members of the Cooperative Image Task Force for their dedication to the campaign and for giving of their time to ensure every contributing credit union is covered by the media buys.

SIGNAL: Vol. 5, Issue 2

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NEWS

League News Florida Credit Union Association State GAC The Florida Credit Union Association State Governmental Affairs Conference in Tallahassee offered a little bit everything for this year’s attendees. In addition to lawmaker visits, the conference featured regulators, senators, cabinet members, the media, and awards.

The first day of the conference focused on lawmaker visits which centered on public deposits, data security, financial literacy, and regulatory relief. Forty-seven attendees made 27 visits to lawmakers including meetings with Sen. President Don Gaetz and House Speaker Will Weatherford.

Prior to the visits, Former Sen. Bob McKnight led a session on meeting with lawmakers. He stressed three things when meeting with lawmakers: tell your story, play to your strengths, and direct contact. He also said it is important to follow up.

Many attendees followed up with lawmakers at the event’s lawmaker reception later that evening. It was a wonderful opportunity for attendees to build relationships with their lawmakers in a relaxed atmosphere.

The final day of the Florida Credit Union Association State GAC featured regulators,

League SVP of Association Services Jared Ross presents Sen. Garcia with the LSCU Lawmaker of the Year award. Sen. Garcia was a sponsor of public deposits bill in 2013 and partnered with two credit unions this year to offer financial literacy to Spanish speaking citizens.

30

senators, cabinet members, the media, and awards.

Sen. Rene Garcia (R-Hialeah) was honored as the LSCU Lawmaker of the Year.

Sen. Garcia was a sponsor of public deposits bill in 2013 and partnered with two credit unions this year to offer financial literacy to Spanish speaking citizens. The next Senate President Andy Gardiner (R-Orlando) gave an overview of this year’s legislation and applauded credit unions for what they do in their communities.

NCUA Region III Director Myra Toeppe and Florida Office of Financial Regulation Credit Unions Chief Bruce Ricca said that the NCUA continues to look at interest rate risk and cybersecurity as the agency’s top priorities this year. She also spent considerable time talking about risk based capital and encouraged credit unions to comment before the May 28 deadline. Ricca showed how credit unions were performing and showed that 75 percent of Florida’s credit unions were capitalized over 10 percent, while zero were under seven percent.

Commissioner of Agriculture Adam Putnam spoke about his office’s top priorities. He explained that water is a major issue in the state and cited an example of Orlando needing to find two million gallons of new water per day to handle the influx of people. Putman said the best way to find new water is for everyone to conserve more.

He also sited that 80 percent of Florida residents live within 20 miles of a coast so keeping water safe is a main priority for the state and his office.

This year’s conference concluded with the presentation of PAC fundraising awards which were handed out during lunch.

Suncoast Credit Union won the President’s Award for raising the most money; more than $54,000. The Tallahassee Chapter won the Chapter Award by raising more than 200 percent of its goal.

A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 2

LSCU Director of Compliance Scott Morris talks with Shirley Senn from Corporate America Federal Credit Union at the RBC meeting in Birmingham.

LSCU & Affiliates Provides Risk-Based Capital Sessions The LSCU & Affiliates held 15 riskbased capital informational meetings across Alabama and Florida. Each meeting helped credit unions to better understand the NCUA’s proposal to revise PCA – RiskBased Capital rules. LSCU Vice President of Compliance Information and Training Bill Berg and Director of Regulatory Advocacy Scott Morris moderated the meetings, with additional credit union executives and industry leaders participating in the discussions. Each meeting also included ideas on how credit unions could write a comment letter. Credit unions were directed to the LSCU Risk-Based Capital Resource webpage for more information, sample comment letters, and a video presentation.

These informational meetings and resources helped the exchange of information allowing many credit unions to draft and submit their own comments to the NCUA ahead of the May 28 comment letter due date. Credit unions were also encouraged to attend one of the NCUA’s listening sessions this summer. The League will be attending the July 10 meeting in Chicago and the July 17 meeting in Alexandria, VA. Credit unions are encouraged to join the League at the meetings in Chicago or Alexandria.

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INDUSTRY

While Economy Improves, Many Consumers Still Need a Financial Safety Net If your credit union isn’t providing overdraft services, members will likely look elsewhere

By John M. Floyd, chairman/ CEO

Encouraged by improvements in the housing market, falling energy prices and a low inflation rate, economists are becoming more optimistic that 2014 will be a breakout year.

But as many consumers remain concerned about unemployment and financial issues – ranging from meeting everyday financial obligations to paying off additional expenses due to holiday purchases and covering upcoming income tax responsibilities – personal economic issues can weigh heavily on the mind and the pocketbook.

According to a survey by Bankrate.com, nearly three-quarters of Americans are living paycheck-to-paycheck, with little to no emergency savings. Fewer than one in four surveyed had enough of a cushion to cover unexpected medical expenses or other emergencies. To highlight the effect this has on personal finances, the Center for Financial Services Innovation found that an estimated

15 million people access small-dollar credit products to meet their financial needs every year.

Whether as a result of unplanned expenses or an error in reconciling a checkbook, financial shortfalls can happen to anyone. Without a financial safety net, many consumers often experience difficulty paying their bills and face costly merchant check return fees when their account has insufficient funds to cover a check. By providing a user-friendly overdraft program, your credit union can help members avoid these difficult situations.

A fully disclosed overdraft program reassures account holders that their items will be covered and their ATM and/or debit transactions won’t be denied. When this translates into the ability to pay one’s mortgage or rent on time, or cover the cost of medical needs and other essentials, it can make a tremendous difference in a member’s life. Plus, access to overdraft services can help members avoid more

According to a survey by Bankrate.com, nearly threequarters of Americans are living paycheck-to-paycheck, with little to no emergency savings. Fewer than one in four surveyed had enough of a cushion to cover unexpected medical expenses or other emergencies.

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A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 2

costly, often unregulated, alternative financial services.

Taking a closer look at fully disclosed overdraft programs As an advocate of completely transparent, fully disclosed overdraft programs, JMFA – in partnership with Washington D.C.based Morrison Foerster LLP – gathered information about overdraft program processes and procedures used by 50 financial institutions across the country. The goal was to get a detailed look at the impact disclosed programs have on consumers.

According to the study results, there appear to be two distinct patterns of overdraft use: consumers who use the program occasionally – and in many cases inadvertently (15 percent) – and those who regularly rely on overdrafts to meet their near-term liquidity needs (85 percent).

Understanding patterns of overdraft usage Occasional users generally do not plan to incur overdrafts. Many do so because they have not kept track of their account balances or have made mistakes reconciling their account. Or, they intentionally overdraw their account in order to make payments that they consider important and that they expect to cover with a deposit in the near future.

Because they do not incur frequent overdrafts, occasional users are less likely to understand their financial institution’s

overdraft practices. This includes individuals who have incurred significant overdraft fees for debit card and ATM transactions because they were relying on their financial institution to reject these transactions if they would result in an overdraft. On the other hand, consumers who regularly overdraw their accounts do not appear to have a liquidity cushion and use overdrafts to help them cover their expenses on a regular basis.

Whether a member only uses overdraft services occasionally or on a more regular basis to meet his or her near-term liquidity needs, it is essential that financial institutions provide easy-to-understand information about how their overdraft program works.

Members should know from the outset the costs associated with using the service and the importance of returning an account to a positive balance. This, along with counseling regarding alternative strategies and services that might be better suited for a member’s individual needs, will encourage responsible program use and demonstrates a commitment to maintaining full compliance with all regulatory expectations.

Informed members can rest assured that purchases will be paid With established limits, a fully disclosed overdraft program clearly defines the rules for how a member may access the service. Moreover, a consumer-focused, disclosed program provides a thorough explanation of the terms and processes used in its implementation and offers overdraft limits that are set with the member’s full knowledge.

When necessary, this limit can be adjusted, eliminated or re-instated, depending on the situation. As long as the

member is in good standing, an overdraft will be paid to that established limit. As a result, informed members can avoid the extra expense of merchant fees and penalties for a returned check, they won’t worry that an ATM or debit card transaction might be declined, and they can rest assured that important purchases will be paid in the event of a financial shortfall.

Changing regulations necessitate program changes With the implementation of new consumer protection regulations and restrictions on charging fees for overdrafts resulting from ATM withdrawals and one-time debit card transactions, many existing overdraft programs are outdated or obsolete. To provide your members with the most up-to-date overdraft solution, your overdraft program should include the following: ■ Updated communications materials and recommendations for helping members understand the benefits of a fully communicated overdraft program and how to use it responsibly; ■ Improved analytics and more robust data monitoring/analysis to support better program management, as well as enhanced reporting and tracking capabilities to measure results; and ■ Expanded recommendations for how to gauge on-going program performance and implement any necessary improvements.

In today’s highly regulated environment, credit unions must strike a balance of compliance and good member service to thrive. With the proper policies and procedures in place to educate overdraft users about the importance of responsible use, your institution can alleviate compliance concerns and better serve your members.

Plus, by providing your members with an up-to-date, fully communicated and reasonably priced overdraft program, you can strengthen your position as their preferred provider of financial services and increase your competitive advantage in the market.

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INDUSTRY

A Unique Rate Environment for Balance Sheet Managers

By Craig Dismuke, chief executive strategist, Vining Sparks Historically, when the markets move from a period of low interest rates to one of higher rates, there has been a simultaneous – not parallel – increase in yields across the curve. This was evident in 2003 and 2004.

The first example occurred on June 14, 2003. Yields were very low after the Fed made its final rate cut in response to the 2001 recession. After the final rate cut, yields bounced higher over the course of the next two-and-a-half months. The two-year Treasury yield rose 95 bps and the 10-year yield rose 148 bps. A similar experience occurred in March 2004. Federal Reserve Chairman Greenspan signaled to the market that rates would rise and another two-and-ahalf month period of rising rates ensued. The two-year yield rose 147 bps and the 10-year yield rose 119 bps during that period.

The movement of both the shortand long-ends of the yield curve was simultaneous during both of those periods.

Fast-forward to today and the environment is very different. The Fed has effectively made use of a new tool called “forward guidance” to convince the markets that it will be a longer period of time before they raise the overnight target rate. This has the effect of keeping short yields anchored while longer yields are free to fluctuate based on the economic environment.

Because of the Fed’s forward guidance, different parts of the yield curve are diverging. Ever since former Fed Chairman Bernanke said in testimony to Congress in May 2013 that the Fed was considering slowing asset purchases, yields have trended

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higher. However, long-term interest rates have moved much higher than have shortterm rates. Since that time, the two-year Treasury yield has risen from 0.20 percent to 0.30 percent, just a 10 bps increase.

Meanwhile, the 10-year Treasury yield has risen from 1.66 percent to 2.73 percent, a 107 bps increase. This is the new reality, for a certain period of time at least.

The net result to balance sheet managers is that this cycle is bringing higher rates for longer assets and liabilities while shorter rates remain anchored near-zero. This is affecting investment portfolio management in several ways. Certain investments are not participating in the higher rate environment, such as cash and cash-alternatives, investments in securities shorter than two years and securities whose yield adjusts to short-term indices. Conversely, certain investments can take advantage of short-

A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 2

term rates being anchored. As an example, three-year Treasuries today yield 45 basis points more than two-year Treasuries, an unusually wide spread. If the Fed is successful in keeping short-term yields anchored, a three-year investment would also have less price risk than during a more normal scenario.

So long as the Fed continues to affect market expectations with its forward guidance, the rate environment will be different than it has been historically during periods of rising rates. This unique environment has pros and cons for balance sheet managers. They will do well to recognize the environment and take advantage of what if offers.

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Visit us at the Southeast Credit Union Conference, booth #803.

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INDUSTRY

Six Steps to Improving Your Employees’ 401(k) Plan Results

By Rob Peters, senior manager of marketing, asset management marketing, CUNA Mutual Group In a 2013 survey of U.S. workers1, a defined contribution retirement plan such as a 401(k) was the second most important employee benefit, behind only health insurance. Survey participants ranked the importance of various employee benefits on a scale of one to 10, with 10 being very important. Two thirds of the employees ranked defined contribution retirement plans as 8, 9, or 10.

However, knowing the importance of a retirement savings plan doesn’t mean employees will manage them well and get the results they’ll need.

If your credit union has already taken the crucial step of having a retirement plan in place, consider these additional steps to help employees make good decisions about their plans:

Initiate automatic enrollment.

A 2013 survey report2 by WorldatWork in association with the American Benefits Institute shows the difference it can make when employees must opt out of a 401(k) plan rather than opt in. Of the companies surveyed, 37 percent of those with auto enrollment had 80-89 percent of employees enrolled, compared with 21 percent for companies without auto enrollment. It’s similar for the companies with 90 percent or greater participation: 36 percent had auto enrollment and 19 percent didn’t.

Set a higher automatic enrollment contribution rate.

Enrolling employees at a three percent contribution rate may underfund their retirement needs. Try enrolling them at six percent minimum and chances are you’ll see little difference in take rates.

Offer automatic increases.

Give employees the option to have their contributions automatically increased by, say, one percent per year until they reach 10 percent. The gradual increase is painless.

Include target date funds (TDFs) or managed accounts.

These options give your employees easy access to long-term professional management of their investment. This is especially helpful to employees who feel under-educated or overwhelmed about choosing investments.

Use TDFs or managed accounts as your plan’s Qualified Default Investment Alternative (QDIA).

When participants don’t elect a fund for their contributions, the plan’s fiduciaries must have a prudent default investment in place.

JP Morgan analyzed a sample of 401(k) plan participants’ returns for 2010 through 2012 and found that TDFs and managed accounts yielded far less volatile returns and higher average returns than do-it-yourself investors.3 This demonstrates the value of professional management and funds with increasingly conservative risk/ return profiles.

Stretch your match.

In the WorldatWork/American Benefits Institute survey mentioned above, 66 percent of the companies reported that more than half of their employees contributed at least the employer matching contribution. Set your matching percentage higher and encourage more employees to take advantage. And you can do it without increasing your cost. For example, rather than a dollar-for-dollar match up to three percent, match 50 cents for every dollar up to six percent.

Whichever steps you take to improve your employees’ participation, work with your plan provider to communicate the plan’s features to employees clearly and often.

1

2

3

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A Magazine of the League of Southeastern Credit Unions & Affiliates

“The Principal Financial Well Being IndexSM: American Workers (4th Quarter 2013),” ©Principal Financial Services, Inc. “Trends in 401(k) Plans and Retirement Rewards: A report by WorldatWork and the American Benefits Institute, March 2013,” ©2013 WorldatWork.

“Understanding re-enrollment benefits for participants and plan sponsors,” ©JPMorgan Chase & Co., March 2013.

SIGNAL: Vol. 5, Issue 2

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Executive Benefits solutions put top talent in your chairs and keep them there.

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Retaining strong leaders is as important as attracting them. To be sure your credit union is going in the right direction, CUNA Mutual Group designs Executive Benefits packages to attract talent and ensure they stay with you. And we don’t stop once you’ve landed your top-tier executives—our ongoing consultation and support helps keep them satisfied and your credit union competitive.

CUNA Mutual Group is an industry leader with an extensive breadth of solutions. We’ll help you create a plan and back it up with our knowledge and experience, so your Executive Benefits package meets the needs of your credit union and helps you attract and retain executives you want.

Whether you’re protecting or planning to replace your corner office, CUNA Mutual Group provides the options and ongoing services so you can keep the executives you’ve earned. Welcome to your new Executive Benefits program.

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* Source: CUNA’s 2013-2014 Senior Executive Total Compensation Survey at credit unions with $100 million or more in assets Proprietary insurance is underwritten by CMFG Life Insurance Company. Proprietary and brokered insurance is sold by CUNA Mutual Insurance Agency, Inc., a wholly owned subsidiary. This insuranceis not a deposit and is not federally insured or guaranteed by your credit union.

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A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 2

LEVERAGE

LEVERAGE Card Services – What’s in a Name?

By Jay Brady, vice president, Transactional Services, LEVERAGE

Recently I was visiting a credit union for the first time and before I sat down to talk with the CEO, I handed him a business card.

After a few minutes of conversation, he looked at my card and asked, “What exactly is ‘transactional services?’” It’s a valid question. My answer: Anything associated with a card or a plastic - debit, credit, gift cards, chargeback processing, etc. - are all things that fall under my role with LEVERAGE. This was not the first time that I have been asked this question during a credit union visit. It shows that, just because we know what we do, it does not necessarily mean the credit union understands what we do. LEVERAGE SVP, Strategy & Business Operations Lisa Burroughs and I have been talking about ways to communicate to our credit unions so they can become more

familiar with transactional services. The question we keep coming back to: “Who are we?” The answer isn’t quite as simple as you would think.

It is hard to find one word or name to encompass the variety of services we offer.

We are more than “plastics services” or “portfolio development.” And “transactional services” seems to leave more questions like the question above. So, ultimately we decided on LEVERAGE Card Services as the brand we will use going forward.

We believe that this new branding is a blend which recognizes the past and current state of the environment (Card Services) while also looking toward the future (LEVERAGE). Four years ago when the LEVERAGE brand was introduced, our President/CEO Patrick La Pine stated, “Everything we do for our credit unions and our business partners is to create an edge for them. The LEVERAGE brand will be a powerful resource for credit unions to

maximize their future growth.” In choosing “Card Services,” we feel it creates a brand that is immediately recognizable of the services we provide.

As someone that doesn’t work in marketing on a daily basis, my conversation with the credit union CEO reminded me how important a brand name was and also how critical it is to the success of a business.

Businesses take for granted that everyone will recognize their brand and understand what they offer. It is actually ironic because “Card Services” was one of the first names we considered. It was dismissed because it was too simple. Vincent van Gogh once said, “How difficult it is to be simple.”

In light of recent events (Target data breach), there has been much speculation and discussion about the future of credit and debit cards and how they will be delivered.

Will it be on a plastic? Will it be a chip card? What about mobile or virtual wallets?

Whatever way this discussion shakes out, the need to access funds in a quick and simple manner will always exist. LEVERAGE Card Services will be right in the middle with a product that is competitive and backed by our more than 30 years of service to credit unions. So the next time I hand out a business card, with the name “LEVERAGE Card Services,” the CEO will understand what it is I do and that I can help with card services.

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LEVERAGE

Cooperation Spurs Growth in Contract Management Program

Invest in America by the Numbers

By Keith Hopkins, vice president, Product Support, LEVERAGE Over the past 18 months LEVERAGE has made significant changes to the vendor management program we offer to credit unions. These changes began in November of 2012 when we entered into a partnership with CU Solutions Group and Strategic Partners, the service corporation for the Mountain West Credit Union Association. This partnership combined to form an LLC resulting in the purchase of Credit Union Vendor Management (CUVM). CUVM was a Colorado-based, full service vendor management program with more than 60 credit union clients nationwide.

At the same time, LEVERAGE was offering a Ventelligence vendor management, primarily to credit unions in Florida and Alabama. The Ventelligence vendor management program has been in service since 2008. In October 2013, LEVERAGE merged the Ventelligence contract management solution into the new CUVM partnership with CU Solutions Group and Strategic Partners. By combining CUVM and Ventelligence, we are able to expand our service offering and improve the resources we have dedicated to these programs. LEVERAGE is responsible for the overall management of Ventelligence-CUVM, while CU Solutions Group and Strategic Partners handle sales and marketing support.

The cooperation with the additional service corporation partners has allowed us to grow more efficiently, providing best-in-class service at affordable rates. This was evident in the growth weâ&#x20AC;&#x2122;ve experienced in the first quarter of 2014. Ventelligence-CUVM added 22 new credit unions to the program during that timeframe. Today, we provide vendor management solutions to more than 150 clients, proudly serving credit unions from Maine to Hawaii. With credit union participants ranging from $5 million in assets to more than $4 billion in assets, Ventelligence-CUVM has solutions that are customized to fit the needs of any credit union.

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SIGNAL: Vol. 5, Issue 2

Thereâ&#x20AC;&#x2122;s no doubt, Invest in America is working.

You can tell from tangible results like credit union involvement and the encouraging sales figures. Is your credit union a part of these remarkable statistics?

Supporting Credit Unions Total .................................................................. 3,638 Sprint ................................................................ 1,924 Auto .................................................................. 2,845 TurboTax............................................................ 1,364

Activations/Sales/Returns Total ........................................................... 3,559,804 Sprint Activations ........................................ 1,191,932 Auto Sales ..................................................... 625,095 TurboTax Returns ........................................ 1,756,496

Member Savings Total ..................................... More than $858 million Sprint ................................... More than $472 million Auto ..................................... More than $499 million TurboTax.......................................Nearly $9.5 million

Auto Loans* Auto Loans Closed ........................More than 318,000 Loan Value.............................. More than $6.9 billion *Numbers are estimates based on survey results.

Visit lovemycreditunion.org to find out how you can be a part of these remarkable statistics!

Visit us at Booth 900

VehiCle eleCtroniC lien anD title stop FrauD, saVe time, saVe money, Go Green

Call today at 800-666-3008 to sign up. www.simplyelt.Com @simplyelt @pDpGroupinc

dit Union e r C t s a e h Sout d Expo n A e c n e r e da Conf rlando, Flori June 11-13,

2014 | o

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Out-of-the-box solutions your business needs

Our SOlutiOnS. YOur S ucceSS .

Visit South Carolina Financial SolutionsTM (SCFS) for practical answers to the unique administrative challenges faced by small credit unions. Stop by to see our suite of services designed to help credit union leaders successfully manage their organization. SCFS offers a wide range of valuable solutions, including talent and HR management, employer-sponsored benefit plans, colocation data center facility storage, and an indirect lending program with local auto dealerships.

Find us at Booth 812 at the Southeast Credit Union Conference to discover all the ways SCFS can help your business.

42

A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 2

SouthCarolinaFinancialSolutions.org

(800) 845-0432 x5099

90 78 10 40

Is your regulator requesting a

Third Party Review?

The third party review is frequently requested by regulators who would like to see a third party assessment as to the quality of the credit union’s IRR management process.

This review also meets the requirement of the recent IRR regulation for the board of directors to make or cause to be made a review of this same process.

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For more information, call us at (800)268-7795 Visit www.markhsmith.com/review Outsourced IRR and Liquidity Risk Solutions for Credit Unions

to learn more and to get IRR insights for your credit union.

Mark H. Smith, Inc. 2860 West 4700 South, Suite D SLC, UT 84129 ©Copyright 2014 Mark H. Smith, Inc. All rights reserved.

Go Higher.

Rocky growth. Compliance cliffs. Steep risks.

You don’t have to make the ascent toward your credit union’s goals alone.

At Doeren Mayhew, our highly specialized Financial Institutions Group has helped more than 200 institutions like yours find opportunities to drive growth – from climbing toward enterprise risk management, to overcoming steep compliance challenges, to harnessing technology to stay relevant on new delivery systems.

Simply put, we know the ropes. So whether your vision is to achieve new heights, or you need a rescue mission, you can always work in tandem with us. Call 954.928.3340 to start the climb.

954.928.3340 | doeren.com

44

A Magazine of the League of Southeastern Credit Unions & Affiliates

Insight. Oversight. Foresight.®

SIGNAL: Vol. 5, Issue 2

LEVERAGE

CO-OP Offers EMV Solution to Credit Unions

By Michelle Thornton, senior product manager, Core Products, CO-OP Financial Services Now that CO-OP Financial Services will use the Visa U.S. Common Debit AID (application identifier), CO-OP now has a Durbin-compliant EMV solution for debit issuers. The solution will use the Visa EMV application and two AIDs, the Visa global AID and the Visa U.S. Common AID, for Visa debit cards and ATMs. The Visa AID denotes the networks, parameters, card verification methods (CVM) such as Signature, Online PIN, and Offline PIN, and encryption keys that are available on the card or terminal. CO-OP is negotiating a similar agreement with MasterCard.

In other areas of the world, EMV was implemented with one payment network. However, in the U.S., the Durbin Amendment requires that issuers enable at least two unaffiliated network routing options on all debit cards. The industry has been working on a solution for the past 18 months, with the Debit Network Alliance (DNA) being a strong voice for a common solution that can be implemented by all. CO-OP’s agreement with Visa accomplishes this for Visa issuers. Transactions from cards that have the Visa U.S. Common Debit AID will be able to be routed to any network associated with that common AID. All PIN debit networks are expected to eventually sign; however, STAR, Pulse, Accel, CU 24, NYCE, CO-OP, Shazam and NETS have signed on to this solution to date. What this means is that if the credit union participates in any of these networks, transactions will be able to be routed to those networks. For example, if a credit union participates in NYCE, CO-OP, and STAR, transactions can be routed to any of those networks, just like it works in the magstripe world today.

Networks that have not signed on to this solution will not be able to have transactions routed to them. This also means that credit unions can move between networks that participate in the common AID and their cards will continue to work, again similar to how it works in the magstripe world.

The parameters included in this AID support both POS and ATM, contact or contactless, and, again, all CVMs available in debit.

While this is great news and a big step forward for the industry and credit unions, card vendors and ATM and POS terminal manufacturers still have some development to complete. Standard EMV does not allow the terminal to “choose” whichever AID the merchant or ATM owner chooses, so ATM and POS terminal manufacturers and providers will need to develop a way to enable their terminal. Additionally, card vendors will need to complete the

development to include the two AIDs, and processors may need to complete development to recognize multiple AIDs on the same link.

What that means for credit unions is that they will need to wait until those entities have completed their development work before moving ahead with EMV for their cards or ATMs. Credit unions that move forward now on EMV debit will likely have to wait for the industry to “catch up” in implementing this solution, or they will need to reissue their cards. In the case of terminals, credit unions will need to adjust their ATMs to load and enable choice of the common AID. Helping the industry get this completed quickly is a key priority for the DNA, of which CO-OP Financial Services is a charter member.

In the meantime, credit unions can start looking at their budgets and resources to determine the best time to move forward. It will be important for the industry to finish its development work and streamline implementation processes in 2014, particularly in the debit world with its many complexities.

Information and education on EMV is available to credit unions at CO-OP Financial Services’ EMV Resource Center at www.co-opfs.org.

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COMP E TITIVE P R ODUCTS A ND P R ICING FOR PAY MENT SYSTE MS AN D E LE CTR ONIC SE R VICE S

L I QUIDITY A ND INVE STME NT P R ODUCTS INCLUDING MA R KE TA B LE SE CUR ITIE S

NO CA P ITA L INVE STME NT R EQUIR E D FOR M E MB E R SHIP

DE DICATE D ME MB E R A DVISOR

WE B DE SIGN AND HOSTING CUSO

YOUR FUTURE. OUR PRIORITY.

4365 C re sc e n t R o a d Iro nda le , AL 3 5 2 1 0 (800) 292-6242 ww w.corpam.org

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A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 2

2014 SOUTHEAST SUPERVISORY COMMITTEE CONFERENCE

August 3-6, 2014 Grand Hotel Marriott Resort, Golf Club & Spa Point Clear, Alabama Who Should Attend: • Supervisory committee members • Board members • Credit union managers • Internal auditors • Compliance officers

Join us for the 2014 Southeast Supervisory Committee Conference, formerly the LSCU Supervisory Committee Conference, located at the beautiful Grand Hotel Marriott Resort, Golf Club & Spa, in Point Clear, Alabama, August 3–6!

Whether you are a new supervisory committee or board member or you are a ‘seasoned’ volunteer attendance at this group-live event will most definitely enrich your contributions to your credit union. We have a full agenda of the latest information and updates regarding credit union auditing, compliance, and fraud. With a wide variety of speakers and topics, you’ll increase your knowledge to help keep your credit union secure and strong.

Registration & Hotel Information: Early Bird Attendee: $495/Guest: $195 Regular Attendee: $525/Guest: $225 (Early Bird Registration ends July 1, 2014) Room Rate: $169 Room Rate Cut Off: Thursday, July 3, 2014 Reservation Code: LSCLSCA

Cred it

Unio

Law s&R

Frau d BSA roles

n Au

egul

dits

ation

Prev entio n

& ex

ams

Com p

lianc e

Train in

g

& Re

latio

nshi

ps

For more information: www.lscu.coop

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DIRECTORY

LSCU Directory Offices 22 Inverness Center Pkwy, Ste 200 Birmingham, Alabama, 35242 3692 Coolidge Court Tallahassee, FL 32311 866.231.0545

OFFICE OF PRESIDENT/CEO Patrick La Pine, x1002 President & CEO patrick.lapine@lscu.coop Kate Brady, x1060 Executive Assistant to President/CEO kate.brady@lscu.coop

Adena Whitman, x2134 Senior Member Relations Consultant adena.whitman@lscu.coop April N. Ales, x1038 Member Relations Consultant april.ales@lscu.coop David LeNoir, x2158 Member Relations Consultant david.lenoir@lscu.coop Judy Scott, x1062 Member Relations Consultant judy.scott@lscu.coop Leonard Parkhurst, Jr., x1154 Director, Southeastern Credit Union Foundation leonard.parkhurst@lscu.coop

ASSOCIATION SERVICES Education Administration Jared Ross, x1012 SVP, Association Services jared.ross@lscu.coop

Teresa Gray, x2110 Sr. Director, Education teresa.gray@lscu.coop

Mike Bridges, x1022 VP, Communications mike.bridges@lscu.coop

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

Amy Jowers, x1020 Director, Communications amy.jowers@lscu.coop

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

Bill Berg, x1028 VP, Compliance Training & Information bill.berg@lscu.coop Scott Morris, x2165 Director, Regulatory Advocacy scott.morris@lscu.coop

Tyrell Baker, x1136 Director, Information Technology tyrell.baker@lscu.coop David Hairston, x1132 Network Administrator david.hairston@lscu.coop Debbie Caruthers, x1116 Director, Accounting debbie.caruthers@lscu.coop

Susan Sungelo, x2153 Staff Accountant susan.sungelo@lscu.coop Jason Neifield, x1142 Director, Human Resources jason.neifield@lscu.coop

Governmental Affairs

David Todd, x1124 Facilities & Operations Manager david.todd@lscu.coop

Jason Cochran, x2159 Director, Governmental Affairs (AL) jason.cochran@lscu.coop

Di Troch, x1054 Operations Assistant diana.troch@lscu.coop

Jennifer Martin, x1150 Director, Legislative Affairs (FL) jennifer.martin@lscu.coop

Cooperative Initiatives

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

Laura Vann, x2181 VP, Cooperative Initiatives laura.vann@lscu.coop

Blake Westbrook, x2164 Grassroots & Political Action Coordinator (AL) blake.westbrook@lscu.coop

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Marvin Garland, x1102 EVP/CFO marvin.garland@myleverage.com

Josh Booth, x1118 Staff Accountant josh.booth@lscu.coop

Communications

A Magazine of the League of Southeastern Credit Unions & Affiliates

SIGNAL: Vol. 5, Issue 2

LEVERAGE Administration

Finance & Administration

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

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

Natalie Edwards, x1014 Communications Coordinator natalie.edwards@lscu.coop Compliance

Jordan Burroughs, x1008 Governmental Affairs Specialist jordan.burroughs@lscu.coop

CUSC of Alabama Tameka Dukes, x2178 Director, Shared Branching tameka.dukes@lscu.coop

Lisa Burroughs, x1004 SVP, Strategy & Business Operations lisa.burroughs@myleverage.com

Transactional Services Jay Brady, x1106 VP, Transactional Services jay.brady@myleverage.com Janice Jordan, x2176 Director, Debit Operations & Training janice.jordan@myleverage.com Win Cooper, x2115 Sr. Transactional Services Specialist win.cooper@myleverage.com Chris Dirmann, x1182 Director, Card Services chris.dirmann@myleverage.com Angela Harris, x1190 Card Services Manager angela.harris@myleverage.com Amy Bryant, x1196 Sr. Member Services Representative amy.bryant@myleverage.com Gwen Davis, x1186 Member Services Representative gwen.davis@myleverage.com Robert Plant, x1194 Member Services Representative robert.plant@myleverage.com Jackie Singleton, x1184 Member Service Representative jacqueline.singleton@myleverage.com Linda Medina, x1200 P/T Member Services Representative linda.medina@myleverage.com Kia Albert, x1192 P/T Member Service Representative kia.albert@myleverage.com Kim James, x1198 P/T Member Service Representative kim.james@myleverage.com

Audit & Compliance Consulting Keith McMurtrie, x2133 VP, Audit & Consulting keith.mcmurtrie@myleverage.com Kathy Hollifield, x2140 Senior Auditor/Office Manager kathy.hollifield@cuacg.com Michael Hemminger, x1096 Staff Auditor michael.hemminger@myleverage.com Marcus King, x2141 Staff Auditor marcus.king@cuacg.com Kathy Reynolds, x2121 Staff Auditor kathy.reynolds@myleverage.com Shawna Southerland, x2144 Senior Auditor shawna.southerland@cuacg.com Vickie Taylor, x2145 Senior Auditor vicki.taylor@cuacg.com Bonique Turner, x2124 Staff Auditor bonique.turner@myleverage.com Arden Ward, x2132 Staff Auditor arden.ward@myLEVERAGE.com

Kelli Silvernale, 866.949.6220 Director, Vendor Management kelli@cuvm.org Karen Moran, 866.949.6220 Sr. Contract Management Analyst karen@cuvm.org Kim McCallum, 866.949.6220 Contract Management Analyst kim@cuvm.org

Marketing April Banta, x1162 Director, Marketing april.banta@myleverage.com

LEVERAGE PARTNERS

Rhea Oaks, x1146 Product Manager rhea.oaks@myleverage.com

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

Cody Zinker, x1188 Due Diligence Coordinator cody@cuvm.com

Product Developement Jordan Sullivan, x2137 Business Analytics Manager jordan.sullivan@myleverage.com

Mark Wilsie, x2142 Senior Auditor mark.wilsie@cuacg.com

Business Development Consultants

Brett Carpenter, x2135 Staff Auditor brett.carpenter@myleverage.com

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

ComplyTrac Automated compliance solution that streamlines compliance procedures and reduces costs.

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

CU Solutions Group CU Solutions Group provides credit unions with marketing, membership enhancements, technology, and performance management solutions.

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

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

Bradley Kerr, x2143 Audit & Compliance Support Specialist bradley.kerr@cuacg.com

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

Shani Montford-Smith, x2127 Audit & Compliance Support Specialist shani.montford-smith@myleverage.com

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

Full-service solution working to reduce the burden associated with collecting vendor due diligence and managing vendor relationships that helps credit unions minimize vendor risk.

Brooke Collins, x1050 LEVERAGE Support Services Specialist brooke.collins@myleverage.com

John M. Floyd & Associates

Product Management Keith Hopkins, x1170 VP, Product Support keith.hopkins@myleverage.com Deirdre Rhodes, x1104 Product Support Manager deirdre.rhodes@myleverage.com

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

O’Rourke & Associates

CO-OP Financial Services

Alicia Haskew, x1044 ePurchasing Coordinator alicia.haskew@myleverage.com

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

Office Depot Detra White, x1156 Production Artist detra.white@myleverage.com

Julie McCue, 866.949.6220 Contract Management Analyst julie@cuvm.org

Robert Williams, x1030 Contract Management Analyst robert@cuvm.org

NADA

CUVM

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

An exclusive credit union focus on executive and management recruiting.

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

STRATEGIC BUYING Leverage credit union buying power to reduce capital expenditures and provide real savings on almost anything you need.

That’s Life LEVERAGE’s merchant lending platform links credit unions with businesses in their communities to provide point-of-sale financing to consumers.

VERAFIN Detect BSA/AML fraud with leading-edge compliance and fraud detection software.

VERI-TAX Leader in loan verification to meet the raised compliance and fraud detection standards in the mortgage and consumer credit industries.

Vining Sparks Combining strategic support services with broad trading capabilities to execute fixed income securities transactions.

VINtek Complete collateral management solutions help increase operational efficiencies by streamlining processes, reducing user errors, and managing expenses every day.

For more information on any of these solutions, contact a Business Development Consultant at consult@myLEVERAGE.com or visit www.myLEVERAGE.com.

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

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

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SIGNAL MAGAZINE RETURN ADDRESS 3692 COOLIDGE COURT TALLAHASSEE, FL 32311 22 INVERNESS CENTER PARKWAY, #200 BIRMINGHAM AL 35242

New Location!

Southeast Leadership Development Conference

November 4-7, 2014 Hilton Sandestin Beach Golf Resort & Spa Destin, Florida