LSCU%20BOARD%20MINUTES%2010-5-2011

LEAGUE OF SOUTHEASTERN CREDIT UNIONS BOARD OF DIRECTORS MEETING RITZ CARLTON HOTEL AMELIA ISLAND, FLORIDA October 5, 2011

ABRIDGED MINUTES

CALL TO ORDER

The Board of Directors meeting of the League of Southeastern Credit Unions was called to order on October 5, 2011 at 4:20 p.m. by Chairman Joe McGee.

APPOINTMENTS AND ROLL CALL

Mr. McGee appointed Ms. Teresa Gray as recording secretary and asked her to call roll.

The following Directors were in attendance:

Mr. Alvin Cowans, McCoy FCU, Orlando, FL Mrs. Sharon Downing, Alabama River CU, Perdue Hill, AL Mr. Brent Lister, First Florida CU, Jacksonville, FL Mr. Pat Mason, Sun CU, Hollywood, FL Mr. Joe McGee, Legacy Community FCU, Birmingham, AL Mr. Greg Olmsted, North Alabama Educators CU, Huntsville, AL Mrs. Anice Prosser, Envision CU, Tallahassee, FL Mrs. Deby Seymour, Darden FCU, Orlando, FL Mr. Bob Steensma, Five Star CU, Dothan, AL Mr. Ron Summerall, Alabama Teachers CU, Gadsden, AL Mr. Steve Swofford, Alabama CU, Tuscaloosa, AL Mrs. Linda Walker, Riverdale CU, Selma, AL Ms. Tina Williams, Mobile Educators CU, Mobile, AL Mrs. Mary Wood, Florida West Coast CU, Brandon, FL

Mr. Rich Helber, Tropical Financial CU, Miramar, FL and Mr. John Hirabayashi, Community First CU of Jacksonville, Jacksonville, FL were unavailable to attend the meeting.

Mr. McGee welcomed everyone to the meeting and thanked them for taking the time to participate.

ADOPTION AND APPROVAL OF CONSENT AGENDA

The consent agenda contained minutes from the August 17, 2011 LSCU Board meeting, the Treasurer’s report and the 3rd Quarter Strategic update.

Mr. McGee said since there were no changes to the Consent Agenda it would be approved as written and distributed.

REPORTS

Chairman’s Report Mr. McGee welcomed everyone to the meeting and said he had no formal report. He did provide an update on LSCU Committees as a result of two new Directors being seated in June. He noted that the LSCU Service Corporation Board would remain the same.

He stated that Mrs. Sharon Downing filled the vacancy on the Audit Committee; Mr. Bob Steensma filled the vacancy on the CEO Review Committee, moving from the Elections Committee; Mrs. Anice Prosser filled the vacancy on the Elections Committee; and the Awards Committee and Governance Task Force Committee remained the same.

He reported that three new persons were appointed to the Board of Trustees of the Southeastern Credit Union Foundation, Jan Bias, Redstone Federal CU (AL); Kevin Johnson, Suncoast Schools FCU (FL) and Derrick Ragland, APCO CU (AL).

He stated that the SECUF Board of Trustees had met the previous day, along with staff, to develop a vision and mission statement for the Foundation. He said good progress was made with good input from all of the Trustees. He also commended Ms. Tynan for a very good job.

President’s Report Mr. La Pine thanked everyone for their participation during the planning process.

He highlighted the LSCU Supervisory Committee Conference held in July, noting 101 attendees for this year’s conference compared to 86 in 2010.

He also discussed the League webinars and reported as of September 29th revenue of $39,309 had been generated compared to $9,563 in 2010. He said we had changed providers which obviously was the right decision.

He discussed the partnership with CUES, in which the purpose was to develop high level curriculum for our member credit unions. He said he hoped to be able to utilize their staff to assist our staff in areas of speaker and curriculum development. He said this

partnership was on a contractual basis. He stated we would perhaps work with them on joint events.

He talked about the CUES Symposium 2012, a CEO/Chairman Exchange. He said we were working on a joint venture between LSCU and CUES, a Credit Union Executive Dialogue, noting that this event would be primarily for large‐asset size credit unions and senior management staff.

He reported on the Cooperative Brand Campaign and noted that through the first three weeks of the Campaign, there had been 47,000 visitors to the website, with 65% typing in www.betternameforbanking.com; He said it was the 3rd most visited page, behind the home page and checking out the difference on loan products.

There was discussion regarding the campaign and whether or not credit unions could still contribute.

Mr. Lister asked what amount of monies would have been available to the Campaign if all credit unions had contributed.

Mr. La Pine said approximately $700,000. He also said there were 100 credit unions participating in the Campaign.

He stated that we had received calls from several leagues wishing to discuss the purchase of our creative. He said he would report on that as it occurred.

He said the Florida CUES Council Conference was scheduled for September 6‐9 and there was preliminary discussions regarding the possible integration of the LSCU Councils.

He reported the largest attendance for “Hike‐the‐Hill” with 49 attendees, noting the attendance was actually larger as some of the NAFCU CUs did not register through the League. He said we have 7 MBL co‐sponsors and a commitment from Rooney.

There was discussion related to the Hill event and the NAFCU caucus with opinions being offered as to the combined event. There were both positive and negative views related to the various activities and visits.

He provided an update on potential credit union‐to‐bank conversions.

He said discussions were on‐going with John McKechnie and perhaps bringing him on board as a consultant on a contract basis, and he commented on his background with CUNA and NCUA.

He reported that Jim Smith, a contract lobbyist in Florida, was now working with Southern Strategy Group. He said that this group had a long‐time client, Wells Fargo that created a conflict of interest for us. We said that while we worked with Jim and Southern Strategy to resolve this conflict, it could not be accomplished to everyone’s satisfaction. We will continue to maintain a contract with Mercer Smith to assist our lobbying efforts in Florida.

He reported that working groups would begin looking at the 2012 legislative and regulatory issues agenda/state act modernization.

He provided an overview of meetings scheduled for the remainder of 2011.

BUSINESS

Proposed Changes to CU‐Vote Defense Fund Bylaws

Mr. La Pine stated that the CU‐Vote Defense Fund was established in 2010 by the Board and was dedicated to protecting credit union interests in the event of unbudgeted extraordinary legislative, legal, or regulatory issues. He said there was over $500,000 in the fund and it was primarily controlled by the LSCU Fed PAC Board of Trustees. He stated the proposed amendment to the fund had a two‐fold purpose, 1) broaden the types of activities that the fund can be used for, including defending the credit union charter during proposed credit union to bank conversion attempts; and 2) having the LSCU Board of Directors act as the Trustees of the fund.

He said it was management’s recommendation to make changes to the CU‐Vote Defense Fund Bylaws to broaden its scope as well as make the LSCU Board of Directors the Trustees of the Fund.

He said that discussions had been held with Fed PAC Chairman Linda Cencula and Vice Chairman Mary Wood, and both agreed to the changes.

Motion was made by Mr. Pat Mason and seconded by Mr. Bob Steensma to approve management’s recommendation to change the CU‐Vote Defense Fund Bylaws to broaden its scope and have the LSCU Board of Directors act as Trustees of the Fund.

INFORMATIONAL ITEMS

A. December Board Meeting

It was reported that the December Board meeting would be held on the 7th in the LSCU Birmingham office.

Mr. McGee thanked everyone for their participation and stated it was a very good session.

ADJOURNMENT

Motion made by Ms. Tina Williams and seconded by Mrs. Linda Walker to adjourn the meeting.

The meeting adjourned at 5:20 p.m.

Respectfully submitted,

Tina Williams, Secretary

Teresa Gray, Recording Secretary