2013 LSCU Promises Made, Promises Kept

PROMISES MADE PROMISES KEPT

PRESIDENT’S MESSAGE MESSAGE As we look back on 2012, we can see many positive signs that credit unions are starting to feel the effects of economic recovery. The past four quarters have seen nearly 200,000 new members and $3.6 billion in assets flowing into credit unions in Alabama and Florida. Loan demand is slowly starting to pickup as consumer confidence grows in the wake of the November elections. The League of Southeastern Credit Unions & Affiliates (LSCU) continues to listen to its member credit unions and is working every day to advance the issues that matter most to credit unions as well as provide them with the tools and resources needed to succeed.

Back in 2008-2009, many promises were made about consolidation of the Alabama and Florida Leagues. Today I am proud to say those promises have been met or are coming true; that’s why we themed our affiliation brochure this year “Promises Made, Promises Kept.” Inside this brochure you will see the promises the League made and how we’ve kept them. Many times these accomplishments are not only on your behalf but alongside you. The LSCU can’t succeed without the support and active involvement of our Alabama and Florida credit unions. We have made great strides in three years to become a trade association that listens and adjusts according to credit union needs and the changing landscape.

It’s important that all credit unions in Alabama and Florida work together and collaborate to push our movement forward. So much more can be accomplished through strong affiliation and involvement with CUNA and the leagues. By purchasing products and services from LEVERAGE, the LSCU Service Corporation, you are contributing to the long-term sustainability of the LSCU & Affiliates.

Let’s work together for a stronger credit union movement.

I look forward to your involvement in 2013.

Pa Patr trric ick La La P i ne ine Patrick Pine President/CEO LSCU & Affiliates

PROMISES MADE LSCU Will Generate Cost Savings

PROMISES KEPT To Date, Saved More than $1 Million through Consolidation. Much of that Reinvested Back to Credit Unions through Enhanced Service Offerings

“Being a member of the LSCU is like having 10 extra employees without their salary! With all the due diligence procedures required today, it is a great peace-of-mind to have the League to lean on.” ~ Susan Cantrell, Manager First Coast FCU

91% of credit unions feel the values and

promises of consolidation of the Alabama and Florida Leagues are being realized.

This is an increase of 22% from 2010.

Source: 2012 LSCU Member Survey

In the fall, the League announced that member credit unions are expected to receive a first-ever dues rebate in 2013.

95%

of credit unions say their satisfaction with the League has increased or stayed the same. This is an increase of 3% from 2011.

Source: 2012 LSCU Member Survey

“We consider the LSCU as our partner in success. I have managed two small credit unions and the League has always been at my side to answer questions, serve as a sounding board, and to motivate us to better serve our members.” ~ Kristin Sturges, Manager East Alabama Community FCU

PROMISES MADE LSCU Will Enhance Advocacy Efforts

PROMISES KEPT Expanded Governmental Advocacy Team to Eight, which Includes Legislative Directors for Both States, Grassroots & Political Action Coordinators for Both States, Compliance Training & Information Positions in Both States, and State & Federal Contract Lobbyists

The LSCU increased support for the federal issues agenda: • 12 House Co-Sponsors for Member Business Lending • 20 House Co-Sponsors for Exam Fairness • 2 House Co-Sponsors for Supplemental Capital • 8 House Co-Sponsors for ATM Disclosure • 4 Senate Co-Sponsors for ATM Disclosure

LSCU has made a renewed effort to build relationships with federal delegation by making bi-monthly trips to Washington, D.C. to lobby federal issues agenda. A federal lobbyist was added in Washington to maintain an LSCU presence between League visits.

Hosted Lawmaker Reception at Republican National Convention

The LSCU, along with CUNA, hosted a reception at GTE Financial FCU during the Republican National Convention in Tampa. The reception was attended by state and federal lawmakers, including Alabama Lieutenant Governor Kay Ivey, left with LSCU President/CEO Patrick La Pine.

97%

of credit unions feel the LSCU does an effective job advocating credit union issues at the state capitols.

This is an increase of 3% from 2011.

Source: 2012 LSCU Member Survey

The LSCU has been working with member credit unions to develop and put forth a proactive state legislative agenda. To that end, the League has increased its presence in Montgomery and Tallahassee. Whether it’s taxation, judicial foreclosures or public deposits, all credit unions, regardless of charter, should be concerned about what laws are passed in our state capitols.

In 2011, the League began holding State Governmental Affairs Conferences in Montgomery and Tallahassee to raise the profile of credit unions as well as build and maintain relationships with state lawmakers and their staff. A Legislative Reception is held in conjunction with the GAC to provide additional opportunities for interaction.

“Throughout 2012 LSCU continued a proactive and successful stance for its credit unions in the areas of lobbying and governmental relations. The LSCU team has their ‘fingers on the pulse’ of what’s happening in the credit union world and they are diligent and representative stewards for our credit union industry.” ~ Michael J. Welch, President/CEO University CU

95% of credit unions feel

the LSCU does an effective job advocating credit union issues to federal lawmakers.

Source: 2012 LSCU Member Survey

PROMISES MADE More Regulatory Advocacy/Compliance Support & Training

PROMISES KEPT Presented 26 Regulatory & Compliance Training Sessions Across Alabama & Florida

“Through our affiliation with LSCU, we are better able to conquer the ever-growing challenges with compliance.” ~ Christi Thompson, CEO Wolverine CU

Engaging the CFPB

The LSCU understands the growing concern credit unions have with the Consumer Financial Protection Bureau (CFPB). That is why the League has made it a priority to actively engage the agency. In 2012 the LSCU and member credit unions met with the CFPB in Birmingham, Miami and Washington, D.C. CFPB Director Richard Cordray was present at two of the meetings to discuss issues of importance to Alabama and Florida credit unions.

“As a small credit union, we rely solely on the league to work with state and federal regulators on the issues facing credit unions.

I know if there is an issue with compliance, I have a peace of mind that their compliance team is only a phone call away.” ~ Stacey Hand, CEO Chattahoochee FCU

96%

of credit unions feel the LSCU is helpful in answering my compliance and/or operational questions.

This is an increase of 3% from 2011.

Source: 2012 LSCU Member Survey

Meetings with NCUA & State Regulators

The League puts credit unions in front of their state and federal regulators throughout the year. In 2012, NCUA Chairman Debbie Matz spoke at the AC&E. NCUA Region III Director Herb Yolles regularly speaks at the AC&E, the Leadership Development Conference, and the State GACs. Alabama and Florida state regulators speak at the AC&E and the State GACs, as well as facilitate meetings in the ACUA and OFR offices. This has opened up the line of communication between credit unions and their regulators.

Added Value of Affiliation

As part of the value of affiliation, the League is offering member credit unions RateMap and CU Policy Pro through League InfoSight. These free tools help credit unions monitor rates in their area as well as have access to more than 200 model policies written specifically for credit unions.

PROMISES MADE The League Will Enhance Outreach on Behalf of Credit Unions

PROMISES KEPT 27% Increase in Awareness of Alabama & Florida Credit Unions in One Year Source: 2012 Southeastern Institute of Research

23% Pre-Image Campaign (08/11) 31% Post Wave 1 Media Buy (10/11) 50% Post Wave 2 Media Buy (08/12) = 27% Increase in Awareness

113

Number of credit unions contributing to 2012 Cooperative Image Campaign. This is 12 more than 2011

$2.55M

Amount raised by credit unions for two waves of the Cooperative Image Campaign

195,000

Number of new members for Alabama and Florida credit unions since Cooperative Image Campaign began in the third quarter of 2011. This is a 118,000 increase from previous four quarters

Source: 2012 Call Report Data

$3.6B Source: 2012 Call Report Data

82%

Source: LSCU Member Survey

Amount of assets added by Alabama and Florida credit unions since the Cooperative Image Campaign began in third quarter of 2011. This is a $1.4 billion increase from previous four quarters Credit unions agree that credit unions should fund a Cooperative Image Campaign. That’s a 19% increase from 2010

94%

of credit unions feel the LSCU understands credit unions’ needs.

Source: 2012 LSCU Member Survey

The LSCU sponsored the U.S. Senate debate in Florida. The credit union message was put in front of more than 1.7 million print readers and 4.4 million viewers. The debate, and the Image Campaign TV ad, was shown in all 11 Florida TV markets and on C-SPAN twice.

$300,000

Raised by the Southeastern Credit Union Foundation from credit unions in Alabama, Florida, and across the country for a therapeutic playground at All Children’s Hospital in St. Petersburg, Florida. The project was in conjunction with the Republican National Convention to illustrate the credit union difference.

400,000

Consumers saw or read a story about the credit union involvement in the therapeutic playground. This included the Tampa Bay Times, Tampa Tribune, local TV stations, as well as CBS News and CNN.

Ann Romney, the wife of Republican presidential candidate Mitt Romney, helped cut the ribbon on the new playground and spoke at the event.

“For me to see my son laugh, scream, and play like any other child means so much to me and my husband.” ~ Jennifer Morano, mother of Seth, a patient at All Children’s Hospital and one of the first kids to use the playground

PROMISES MADE The League Will Enhance Outreach for Credit Unions

PROMISES KEPT Increased the Number of Educational Events & Secured Industry Experts from Across the United States for Training

LSCU Annual Convention & Exposition

The AC&E is the LSCU’s signature educational event. Participation from both states is averaging more than 1,000 attendees including credit union officials, sponsors, and exhibitors.

The Exhibit Hall averages 130 companies, making it one of the largest shows among state leagues.

“The AC&E is a great venue which enables our credit union to interact with others in our industry. The LSCU brings in wonderful and informative speakers on timely topics. The exhibit hall allows us to speak with a variety of vendors in one location, making comparisons for services much easier.” ~ Billie Blanchard, CEO West Coast FCU “If I did not receive the scholarship, I would not be able to attend the Annual Convention & Exposition. The breakout sessions were very good but the small credit union roundtable was most beneficial. I came back from the annual conference pumped up and ready to start new and better ways of making loans.” ~ Diane Long, CEO Calhoun Liberty Employees CU

88%

of credit unions feel the LSCU is meeting their training needs.

Source: 2012 LSCU Member Survey

The LSCU has provided 500 educational, compliance, and operational training opportunities for credit unions since 2010. This includes BSA training, supervisory committee training, ALM, IRA, regulatory compliance, webinars, and custom staff training.

More than 10,000 credit union CEOs, executives, staff, and volunteers have attended educational training sessions from the LSCU since 2010.

“The fact that we know we have someone to call on at a time of need is very important to our credit union when dealing with the overwhelming demand of policy and regulation changes.

The education and training that we receive from LSCU is outstanding and appreciated very much.” ~ Helen M. Barefield, President/CEO Walton County Teachers’ FCU

PROMISES MADE The League Will Provide a Greater Level of Member Support Through Enhanced Outreach

PROMISES KEPT The LSCU & Affiliates Has Dedicated Staff Specifically to Assist Credit Unions & Chapters with Their Needs

“The League has helped MEFCU in so many ways; volunteer and director training, staff training, compliance resources, human resource consulting, and sometimes, most importantly, lending an ear! We are proud to be members.” ~ George Glasser, CEO Memorial Employees FCU

600 average number of face-

to-face visits with credit unions since 2011.

The LSCU worked with the World Council of Credit Unions to secure a State Department grant to enhance the partnership with Costa Rican credit unions. The grant allows young credit union professionals from Alabama, Florida and Costa Rica to have an international internship in economic empowerment in 2013.

“Our affiliation with the LSCU has always been a key to our success, especially this last year. The LSCU has provided onsite training for our staff on member service and sales skills. As an added perk, we were also able to participate in this year’s new college internship program. All I can say is that our affiliation with the LSCU is priceless!” ~ Mike Akers, Vice President of Marketing & Business Development Tallahassee-Leon FCU

97%

of credit unions feel the LSCU staff is knowledgeable and responsive.

Source: 2012 LSCU Member Survey

$60K

Awarded in professional development grants to credit union employees and volunteer leaders since 2011

$60K

Offered to small asset-sized credit unions for LSCU & CUNA events or services; a $15,000 increase from 2011

Developed college internship program and placed interns at small asset-sized credit unions. “After our main office was damaged by a tornado in January 2012, the League was there to support not only my staff, but our members as well, providing a mobile branch and offering grants to those affected by the storm. The League is an extremely vital part of the overall credit union experience and movement.� ~Jordan Sullivan, President Secure First CU, Birmingham

PROMISES MADE The LSCU & Affiliates Will Generate Additional Revenue

PROMISES KEPT From 2010-2012, the League & LEVERAGE E Have Met or Exceeded Revenue Goals which Have Helped to Underwrite Strategic Priorities

$264K

Contributed to the Cooperative Image Campaign for creative costs and research since 2011

$210K

Sponsored credit union and chapter events since 2010

$147K

Funded Small Asset Size Credit Union Voucher Program since 2010

$30K

Contributed to the Southeastern Credit Union Foundation’s “leave behind” project

“It’s important that our credit unions in Alabama and Florida know that the LSCU & Affiliates is not only working for them to advance our industry, but we understand the challenges they are still facing back at home.” ~ Mary Ott Wood, LSCU & Affiliates Chairman

90%

of credit unions believe LEVERAGE is a trusted business partner.

Source: 2012 LSCU Member Survey

LEVERAGE Acquires Vendor Management Provider LEVERAGE, along with two partners, purchased Credit Union Vendor Management (CUVM). This full-service contract management tool helps credit unions comply with vendor due diligence and minimize vendor risk. It will save credit unions significant time and money.

More than $3.5M Saved

by credit unions on office and machine supplies, furniture, technology, custom stationery, digital printing, promotional products, breakroom supplies, and much more through our partnership with Office Depot since 2010.

More than $1M Earned

by credit unions in non-interest income through participation in the Sprint Member Discount Program.

More than $1.7M Saved

by credit unions on operational expenses through improved buying strategies and ePurchasing events since 2010.

“Time is of the essence in successfully running a credit union. By utilizing the LEVERAGE contract management system, I am able to alleviate valuable time spent on managing vendor contracts and focus on business development and areas of operation. As an added bonus to being a full service member, the Ventelligence staff went beyond our expectations by reducing our armored car expenses by 23.8%.� ~ Dan Walker, President/CEO Broward HealthCare FCU

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