Q3 2013 signal magazine web final

The Magazine of the League of Southeastern Credit Unions

FALL 2013

Websites

Meetings with newspaper editorial boards

Letter writing campaigns

Town Hall Meetings

Social Media

Virtual RallyElectronic/DigitalResources

Email Campaigns

Rallies

Direct Mail to CU members

THENTHENTHENTHENTHENTHENTHENTHENTHENTH

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ADVOCACY EFFORTS

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For regular readers of my president’s column in our eSignal newsletter and Signal magazine, you know that I’m a big proponent of strategic partnerships and collaboration. The credit union industry is not large enough to withstand significant fracture and still be successful and sustainable. While it’s important that credit unions, chapters, state leagues, and CUNA work closely together, it’s also very important that we continue to develop and maintain relationships with valued partners like CUNA Mutual Group and CO-OP Financial Services. Each organization has a long history with the credit union movement and is regarded by most as critical to the continued success of the system.

I know that you have many choices when it comes to finding business solutions for your credit union and its members. CUNA Mutual Group and CO-OP Financial Services are two of the strongest credit union system supports; not to mention the excellent products and services they offer. You may not know that last year, CUNA Mutual paid $45 million in claims to credit unions and members in our two states. CUNA Mutual also has a

reimbursement program that has sent back more than $17 million to Alabama and Florida credit unions. Plus, CUNA Mutual has a national marketing agreement with state leagues. This includes $2.2 million that was paid to the LSCU Service Corporation (LEVERAGE) last year alone. This reimbursement benefits our member credit unions through enhanced products and services from the LSCU & LEVERAGE, as well as helped fuel our 10-percent dues rebate earlier this year.

Additionally, CO-OP returned nearly $110,000 to LEVERAGE this year through a patronage dividend which we, in turn, passed along to credit unions participating in the CO-OP program. Over the past 17 years, CO-OP has returned $254 million in dividends. This year, many credit unions pushed their dividend back into our Cooperative Issues Campaign to help fight to maintain the credit union tax exemption. While CO-OP continues to innovate in transactional services and ATMs, it also offers a Children’s Miracle Network Miracle Charity Match program. Last year, CO-OP donated a million dollars to CMN Hospitals on behalf of its member credit unions.

These are great numbers from CUNA Mutual Group and CO-OP, but what they do is help to tell a much deeper story. These two companies take their role in the credit union industry very seriously. They are building relationships with credit unions by working alongside them and ensuring that credit unions succeed, as well as working closely with CUNA and the state leagues on federal legislative and regulatory issues of importance to the industry. The staffs of both companies regularly send messages to their lawmakers on issues such as tax reform and member business lending.

I write about these strategic partnerships because I want all of our credit unions to see the bigger picture of what these two organizations do outside the lines. Doing business with CUNA Mutual Group and CO-OP Financial Services means that we are standing strong together. They are both involved in many of our meetings at the American Association of Credit Union Leagues (AACUL). They offer thought-provoking and valuable input into the discussions. CUNA Mutual and CO-OP were two system partners that worked with CUNA on its long-term vision, Unite for Good, which will help the sustainability of credit unions and provide a clear direction for the future.

Six years ago there were 8,300 credit unions in the United States. Today there are less than 6,900. We have lost 1,400 credit unions and the list keeps shrinking. Our strategic partnerships should be very important to all of us. We need to be doing business with companies that are invested in our future.

To find more information about CUNA Mutual Group and CO-OP Financial Services, visit the LEVERAGE website (www.myleverage.com) or talk to your LEVERAGE Business Development Consultant.

LSCU

Message from the President

Patrick La Pine, CCE, CUDEPresident & CEOLeague of Southeastern Credit Unions

1 SIGNAL: Vol. 4, Issue 3 www.lscu.coop

1 President’s Message

4 Trends4 Advocacy Efforts: Then & NowIt has been 15 years since the nation’s credit unions have come together in advocacy efforts at the level of the Don’t Tax My Credit Union campaign. See how things have changed the way such efforts are being carried out.

6 Is Your Website Safe from a DDoS Attack?

8 Advocacy8 LSCU & Affiliates Refresh Brand for Greater Advocacy in State Capitals10 LSCU, Credit Unions Embrace “Don’t Tax My Credit Union” Campaign12 Compliance: Pay on Death Accounts

Congresswoman Martha Roby

Representative Matt Gaetz

Is Your Website Safe from a

DDoS Attack?

Table of ContentsEditorAmy Jowers

ContributorsBill Berg

Mike Bridges

Jay Brady

Jordan Burroughs

Natalie Edwards

Kevin Lytle

Jennifer Martin

Leonard Parkhurst

Laura Vann

Design & ProductionPerry Albrigo, Pomegranate Studio

Letters to the editor may be submitted

at [email protected].

Connect with us!

LeagueofSoutheasternCreditUnions

@LeagueofSECUs

LeagueofSECUs

www.lscu.coopWEBSITE

2 A Magazine of the League of Southeastern Credit Unions SIGNAL: Vol. 4, Issue 3

HIGHLIGHTS

8 | ADVOCACY

Find out what the league and credit unions are doing

to support the Don’t Tax My Credit Union” effort.

12 | COMPLIANCE

A credit union’s question is answered regarding an

issue with a “pay on death” account.

18 | COOPERATIVE INITIATIVES

After hosting Costa Rican interns through the

WOCCU program, interns from Alabama and Florida

visit Costa Rica.

22 | EDUCATION

Find out why it is important to keep up-to-date on

industry news.

26 | COMMUNICATIONS

Learn what “big data” really is and how a couple of

credit unions are utilizing it.

30 | INDUSTRY

Managing director of O’Rourke & Associates

provides the basics necessary for effective

succession planning.

14 LSCU Legislator Profile14 Congresswoman Martha Roby16 Representative Matt Gaetz

18 Cooperative Initiatives18 Connecting Credit Union Professionals Across Cultural & Physical Borders

21 Foundation21 SECUF’s Mobile Branch Ready for Service

22 Education22 Keeping Up to Date on Our Industry24 Upcoming Learning Opportunities25 Supervisory Committee Conference Brings Knowledge,

Best Practices, and Laughter

26 Communications26 Big Data Mining

29 League News29 Blue Angel Pilot Highlights AC&E

30 Industry30 Succession Planning - The Basics

32 LEVERAGE32 New Tagline Supports LEVERAGE’s Value Proposition33 Credit Cards - Why Now?34 Financial Strategy Planning for 2014

36 LSCU Directory

2010, 2011, & 2012


Advocacy Efforts: Then & NowBy Amy Jowers, director, Information Services, LSCU

Then: Newspaper Editorial Boards

Shortly after Mark Ivester began as vice president of communications for the Florida Credit Union League, the league formed its first committee to determine the strategy for getting as many congressmen involved in its side of the story as they could. It was decided best way to do that in Florida was to meet with the editorial boards of all the state’s major newspapers and essentially tell the credit union story to the newspapers. “We determined we would take the League member presidents and representative members of credit union communities we were in,” said Ivester. “For example in Miami, we took Greg Blount (then CEO of Tropical Financial Credit Union) to the Miami Herald.”

Ivester said what was fascinating about the meeting with the Miami Herald was Jim Hampton was editor at the time. He was legendary in the state of Florida and when he realized they were talking about credit unions, he actually said, “You guys are associated with the thing down on the second floor of this building?” The “thing” he was talking about

was the Miami Herald Knight Ridder Federal Credit Union. When they responded yes and that they were a member of the League, he said, “Well, I love my credit union, and if I’m ever late on a car payment they run up to the second floor and say ‘Mr. Hampton, your car payment is due’ and I say ok here’s the check.” He said he loved that kind of service.

The next thing they knew, four days later, the Sunday edition lead editorial is “save the credit unions.” Ivester said that was probably copied “more times on a copy machine throughout the country than almost anything we ever did.” They also received favorable editorials from most of the state’s newspapers and led the country in that type of editorial.

Now: Social MediaThe way people engage with

the Internet and social media is not like any kind of interaction we have ever seen before. It is a powerful tool that can generate awareness and inspire action overnight. What better way to reach our legislators than utilizing social media? Twice now, the DTMCU campaign has utilized social media like never before.

This credit union advocacy “blitz” had people all over the country tweeting and “facebooking” their congressmen to “don’t tax my credit union.” More than 15,000 messages to members of Congress were delivered via social media.

Then: Letter WRITING Campaigns

Letters to legislators had to be handled the “old-fashioned” way: hand-written or typed and then mailed. The writer would need to have an understanding of the issue, an address, and a stamp handy to write a letter. Without an onslaught of letters about H.R. 1151 arriving to the legislative offices, the chances were better that legislators would read the editorials.

Now: Web-based Letter Writing Programs

Web-based programs like Capwiz or the LSCU Action Center on www.lscu.coop make letter-writing easier than ever. No hand-written or typewriter-typed letter or postage necessary; nor do you need to know the legislator for your district. Fill in simple information and the program

figures it out for you. Content for the issue at hand is already provided in letter form. A few clicks and your letter is written and on its way to the legislator.

Then: Special Meetings/Town Hall Meetings Around The State

Special meetings were held around both states with credit unions to engage their support and encourage action. Gary Wolter, then president of the Alabama Credit Union League, held town hall meetings throughout Alabama. Similar meetings were held in Florida. League staff used these types of meetings to “rally” credit unions and update them on important details. They also encouraged credit union staff to speak to their local media when they had a chance, contact their legislators, and educate their members about H.R. 1151.

Now: Email CampaignsToday, the League is able to

“spread the word” through email communications to keep members informed. For example, the League now emails a monthly DTMCU newsletter to update members on pertinent details, provide resource

If you are in the land of credit unions, most likely you are aware of the “Don’t Tax My Credit Union” (DTMCU) campaign. (If you are not, refer to the “Don’t Tax My Credit Union” story on page 10.) For some of us Don’t Tax is the first of its kind, a campaign where credit unions have come together nationally in such a way to fight/defend/stand strong on an issue. However, others experienced a similar experience with H.R. 1151 more than a decade ago. But it has been 15 years since credit unions have had an issue (H.R. 1151) for which a national movement of advocacy efforts has needed to be in effect. And what a difference 15 years have made in the way we go about it.

TREND


Florida Credit Union League President Guy Hood and then CUNA President Dan Mica at the rally in D.C.

More than 6,500 credit union people attend the rally in D.C.

materials, and share the various ways other credit unions are supporting the campaign. Email campaigns, not only allow us to mobilize credit unions and send important information but, save time and money that can now be used toward additional advocacy efforts.

Then: Printed Collateral Mail-Out

Another effort done for the H.R. 1151 campaign was the printing and mailing of statement stuffers and other direct mailers for credit unions to use to educate their members. “It was certainly a lot more labor intensive,” said Ivester. “What I mean by that is you could do one thing now online and certainly get more impact than all the statement stuffers we printed all that year.” It was also a case of “one size fits all” with there not being a lot of variety of the collateral available; and it took time for the collateral to get to the credit union through the mail.

Now: Electronic Collateral via Website

For the DTMCU campaign, all collateral resources from web banners to print ads to buttons and more are all available electronically via the internet.

CUNA’s website and the League’s LSCU Action Center have a variety of collateral available for download. Credit unions can pick and choose which format will work best when advertising DTMCU to their members rather than a “one size fits all” piece that is mailed to every credit union. Fulfillment is also immediate.

Then: Rally in Front of the U.S. Capitol

A rally was held in Washington, D.C., in July to gain support from the U.S. Senate. Bankers were doing everything they could to defeat the bill so on July 14, close to 6,500 credit union leaders rallied on the U.S. Capitol steps in support of H.R. 1151.

LSCU Senior Director, Education, Teresa Gray remembers the day vividly. The Alabama Credit Union League and credit union staff jumped on a train and headed to D.C. to be a part of the rally. Starting in Mobile, the train picked up credit union representatives along the way. Around 200 credit union representatives from Alabama arrived at Union Station to rally for H.R. 1151.

Now: Virtual RallyFor this campaign, a national

virtual rally is being held—where credit union members and advocates from across the country will light up social media in support of the “Don’t Tax My Credit Union” campaign via Twitter and Facebook. Participants have access to various tools at www.DontTaxMyCreditUnion.org to show their support via tweets, pictures, vine videos, and e-mails to their members of Congress, all with the #DontTaxMyCU hashtag. Although there will still be a physical rally at the Credit Union House, CUNA is expecting tens of thousands of supporters to be in virtual attendance.

It is quite a difference 15 years have made in the way things are done. This case of “then versus now” is definitely one where more has been done with less effort, i.e. emails versus town hall meetings or social media versus editorial boards. Technology continues to excel and enhance our way of doing things. Who knows how such an effort will be handled in 15 more years. Remember, though, while the channels may have changed, relationships still matter more than ever. Just as it was then, the biggest impact comes from having face-to-face meetings with legislators.

H.R. 1151: A quick history lesson It was in August of 1998 when the culmination of a massive advocacy effort of credit unions from across the U.S. brought sweet success. This success: the passing of H.R. 1151, the Credit Union Membership Access Act. The Act reversed the ruling of the NCUA v. First National Bank & Trust in which the Supreme Court ruled that the NCUA went beyond its authority in allowing field-of-membership expansion and amended the 1934 Federal Credit Union Act that limited membership to groups “having a common bond of occupation or association” or to groups within limited geographic areas. H.R.1151 authorized credit unions to have multiple common bonds among their memberships.

H.R. 1151 was introduced to the 105th United States Congress by Congressman Newt Gingrich (R-GA). The Act was signed into law on August 7, 1998 by President Clinton.


TREND

Is Your Website Safe from a DDoS Attack?The premise sounds like something right

out of a Hollywood thriller — hackers targeting a financial website. However, unlike the heart-pounding movies where the hackers are stealing money from the financial institution, more times than not, real life hackers are simply trying to shut down financial institutions’ websites; and it is not just the mega banks websites that are under attack. Every financial institution is a target.

Over the past year, the FBI has warned against Distributed Denial of Service (DDoS) attacks toward banks and credit unions. The attack is fairly simple. A hacker, or hackers, sends so many communications to the financial institutions website that the server cannot keep up with the actual real website inquiries coming from legitimate sources. Think of it as having a garden hose nozzle on sprinkle and that is a regular day for your website. The sprinkle is actual inquiries into your website. However, one day the sprinkle is joined by another nozzle on jet and it is pushing so much water that your website cannot respond to everything. It shuts down or causes it to reset. DDoS hackers want that website to be unavailable to users.

At this point, you are probably reading this and thinking, “But why would anyone want to DDoS my website? What do they have to gain?” That is the million dollar question. For some, it is the satisfaction of showing they can do it. For the largest banks, it can be a way for a group to send a message. LSCU & Affiliates Director of Information Technology Tyrell Baker says that many times DDoS hackers have a simple message.

“Hackers are taking a quantity over quality approach these days. DDoS attacks are traditionally used to get someone’s attention to let them know that the hackers have the ability to overload and cripple the target’s system,” said Baker.

A couple of credit unions in Florida have felt the brunt of a DDoS attack. FAIRWINDS Credit Union, based in Orlando, recently saw its website shut down for a short period of time.

Robert Harrigan, vice president, eMarketing at FAIRWINDS, says the attack caused problems, but members’ information was safe.

“While a DDoS attack does interfere with our members being able to access their account information through our website, their financial and personal information was never at risk. We offer other channels for our members to access their accounts that were not interrupted during our recent DDoS attack,” said Harrigan.

Following the attack, Harrigan said the credit union put new services in place that will keep their website running or will restore service quickly if another attack is to happen. For Alabama and

Florida credit unions, from the largest to the smallest, website security is job one — that is a given — but, with a renewed interest in DDoS type of attacks. Website security has to be looked at again to ensure every fail-safe is put in place because proving a point is one thing, but unauthorized entry into the website is another.

“They (hackers) understand that smaller financial organizations are not paying for the higher level security that will keep them out. They are after the smaller credit unions — just as they are the large ones — for multiple account numbers, login information, or email addresses. They can use these over months or years to access funds from member accounts or sell the information to the black market or underground criminal elements to make money as they use the data to access member accounts,” says Baker.

“A DDoS attack is not ‘if’ it will happen, but ‘when’ it will happen. If you have an online presence, then you are vulnerable and the larger

Think of it as having a garden hose nozzle on sprinkle and that is a regular day for your website. The sprinkle is actual inquiries into your website. However, one day the sprinkle is

joined by another nozzle on jet and it is pushing so much water that your website cannot respond to everything. It shuts down or causes it to reset.

“A DDoS attack is not ‘if’ it will happen, but ‘when’ it will happen.”

Mike Bridges, vice president, Communications, LSCU


Is Your Website Safe from a DDoS Attack?

Think of it as having a garden hose nozzle on sprinkle and that is a regular day for your website. The sprinkle is actual inquiries into your website. However, one day the sprinkle is

joined by another nozzle on jet and it is pushing so much water that your website cannot respond to everything. It shuts down or causes it to reset.

THREE STEPS TO A SAFER WEBSITE

1Install an SSL certificate using at least 256-bit encryption so the site is secure and all communication to and from the site is encrypted. GoDaddy, Verisign/Symantec, Comodo, and Thawte are well known and respected vendors.

2Ensure host site is a reputable firm that can provide a history of secure hosting and to make sure it meets NCUA and CUNA website security guidelines.

3Be sure to use multi-factor authentication (also outlined in NCUA and CUNA guidelines) so it is more difficult to duplicate a member’s login information to hack into their online accounts.

your business gets, so does the target for such an attack.

“You must first understand the impact to your business if your website is not available to your customer for a period of time. The loss of potential business and reputation risk is usually reason enough to be prepared,” said Harrigan.

Website providers are already shifting to have the ability to withstand a DDoS attack or to mitigate the down time. ThinkCreative in Tallahassee, the LSCU & Affiliates web provider, has seen some attacks on their client websites. Mark Marsiglio, ThinkCreative owner, says that they have a failover system that keeps attacks from moving from the primary platform to the backup platform. He says the possibility of a DDoS attack is low, but credit unions should be prepared and also do some legwork before implementing a process.

“Many hosting providers will actually turn off access to your server during an attack to prevent it from impacting other clients on their network, resulting in extended down times,” says Marsiglio. “There are hosted services that provide detection and mitigation options for a fee. To determine if these costs are worthwhile, evaluate the likelihood of being attacked and the cost per hour of downtime to your credit union.”

It is always good to review your website security and the processes you have in place. No credit union is too small for an attack. Let’s make your Hollywood moment have a happy ending and not turn into a nail-biting thriller. n

7 www.lscu.coopSIGNAL: Vol. 4, Issue 3

ADVOCACY

LSCU & Affiliates Refresh Brand for Greater Advocacy in State Capitals

The League of Southeastern Credit Unions (LSCU) and Affiliates has recently refreshed its brand architecture and added two new brands to its family tree.

LSCU & Affiliates is now the parent brand for the League and its subsidiary organizations which currently include LEVERAGE and the Southeastern Credit Union Foundation.

Additionally, the Alabama Credit Union Association (ACUA) and Florida Credit Union Association (FCUA) brands have been added to the enhance the awareness and influence of credit unions in Montgomery, Ala.; Tallahassee, Fla.; and Washington, D.C. The League will begin using the new brands with lawmakers, candidates, and regulators for a greater state-specific identity and recognition.

“As the LSCU & Affiliates grows, it’s important that we constantly look at our brand positioning to ensure that it’s also evolving,” said LSCU & Affiliates President/CEO Patrick La Pine.

“State-specific ‘association’ resonates much better with lawmakers and candidates. All politics is local. Going forward, if other state leagues are interested in consolidating, this new brand positioning demonstrates our commitment for maintaining state-specific brand identity, which we know is becoming an important issue for some,” La Pine continued.

The refresh also will apply to any other organization either fully owned or managed by the LSCU--Credit Union Service Centers of Alabama (CUSC) and Credit Union Vendor Management (CUVM).

“For Alabama and Florida credit unions, the LSCU & Affiliates will be our main brand and nothing significant will change,” said La Pine. “The ACUA and FCUA brand will be laser focused on advocacy efforts only.” n

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ADVOCACY

LSCU, Credit Unions Embrace “Don’t Tax My Credit Union” CampaignJennifer Martin, director, Governmental Affairs-Tallahassee, LSCU

“Don’t Tax My Credit Union” is a national campaign dedicated to ensuring Congress does not raise taxes on 96 million credit

union members nationwide and preserving financial choice for American consumers. The League of Southeastern Credit Unions & Affiliates (LSCU) has been recognized as a national leader in CUNA’s Don’t Tax My Credit Union (DTMCU) campaign. LSCU was the first League to organize a month-by-month grassroots plan and has acted as a sounding board for the ideas of other Leagues around the country. Coupled with a cooperative

issues campaign, the League is truly making a difference in these efforts and will continue to work on this as long as comprehensive tax reform is on the table in Washington.

With fall just around the corner, the new season brings with it many potential challenges and opportunities for credit unions and the League. The DTMCU campaign continues in full force and these collective efforts are being noticed on Capitol Hill. The engagement of member credit unions has been incredible, and ongoing commitment is essential to the end goal.

LSCU has distributed at least 110,000 DTMCU postcards to credit unions across both states with the hope that as

many of those completed postcards as possible would be hand-delivered during the September Hike the Hill. Delivering the DTMCU message from thousands of their

constituents will make a major impact on the lawmakers and their staff and is exactly the kind of effect LSCU aims to make. However, the postcards will continue to be collected at the League even after the Hike the Hill event and will be sent to the appropriate representative in DC.

In addition to the League’s efforts, credit unions across Alabama and Florida are going above and beyond to ensure the success of the campaign. Suncoast Schools FCU in Tampa formed a small team to help increase campaign awareness through social media and traditional methods. They came up with a three-phase plan that includes the use of social media and employee engagement.

Some of their ideas include: pitching an executive employee as a “credit union tax exemption expert” to local media; adding DTMCU screens to the ATM network; reaching out the Young Professionals group to get involved; hosting a lunchtime chat on Facebook; and, utilizing the Youth Advisory Board to make one minute videos to share on social media outlets.

eCO CU in Birmingham organized a plan to connect with lawmakers and encourage credit union staff participation. The credit union delivered employee-written letters to U.S. Senators and key representatives’ offices, informed branch employees of the campaign through the monthly marketing

Alive Credit Union has DTMCU ads on lobby monitors.

Suncoast Schools Federal Credit Union branches have a DTMCU table asking members to fill out DTMCU postcards that will be delivered to their legislators.

Looking ahead, LSCU encourages credit union officials and members to engage through in-person D.C. lawmaker visits, statement stuffers, and branch materials.


memo, and they even created a Don’t Tax My Credit Union Quiz to increase awareness.

In Miami, University Credit Union came up with their own internal month-to-month plan of action for the DTMCU campaign to stay on track. Employee email signatures include a DTMCU banner in addition to the DTMCU banner their website, which they move to different locations every so often to keep the website looking fresh and attractive. The credit union created handouts for the teller line and for inserting into mailed items to members. They also made a point to send a

representative to the September Hike the Hill in Washington, D.C.

Creating different ways to get members and employees engaged with the DTMCU campaign was the main focus of Alive Credit Union in Jacksonville. The credit union utilized custom messaging on digital TVs in each office and made the DTMCU website as the homepage on Internet Café PCs so that members were encouraged to send their letters on the spot. The credit union also encouraged all employees to submit their

letter to Congress asked them to reach out to family members as well.

Alabama Telco Credit Union came up with a great DTMCU page on their website that explains the campaign and shows members how to get involved. In particular, the website includes The Facts: simple bullet points that break down the issue and show why the credit union tax exemption is a benefit not only to members, but to the economy as a whole.

Central Credit Union in Pensacola put together a list of ways to spread the word

about DTMCU. The credit union hands out DTMCU pens to members and the staff wear DTMCU t-shirts and buttons every Friday. They also have placed DTMCU banners outside each branch, posters on easels in all lobbies and sent an email blast to members that included a president’s message.

These innovative and meaningful ideas are just some of the ways credit unions are getting involved with the campaign. Looking ahead, LSCU encourages credit union officials and members to engage through

in-person D.C. lawmaker visits, statement stuffers, and branch materials. Send back completed postcards and a photocopy of each to LSCU, utilize the statement stuffer materials available through CUNA and the League to send out to membership, and have materials in your branches highlighting the Don’t Tax My Credit Union efforts. The League encourages credit unions to continue their social media presence and find new ways to engage the membership.

Look for the monthly DTMCU e-newsletter for the most recent DTMCU updates. The League appreciates the commitment credit unions have shown the campaign and asks for continued support and energy as tax reform forges on. n

RIGHT: Alabama Telco Credit Union created a page on its website to educate its members.

LEFT: Central Credit Union of FL President Carolyn Dwelle’s letter to members is posted on its website.


Florida has long had a law partially revoking a will upon divorce. If someone has a will, naming a spouse as beneficiary, and they get divorced,

Florida treats the ex-spouse as though they died before the other spouse. Florida has a similar law regarding revocable trusts which cuts the ex-spouse out of the trust. Otherwise, if someone forgets to revise his/her will and trusts after they get divorced, the ex-spouse would inherit the property.

Up until July 1, 2012, Florida did not have such a law for “pay on death” accountswhere the ex-spouse was named as beneficiary. Because of the increased number of couples who divorce, this happens more frequently than you might think. Someone gets divorced and changes their will, but they forget they named the ex-spouse on an account or, frequently, a life insurance policy. Then, after they die, the children or the new spouse are outraged that the ex-spouse receives the money. Now, Florida Statute 732.703 fixes that by stating that payment or transfer at death of an interest in asset to or for the benefit of the decedent’s former spouse is void when the divorce was officially final and that this void applies to a payable-on-death account.

However, this only allows the bank or the insurance company or the investment company to say “no” to the ex-spouse; it does NOT impose any liability on the company if they pay the money over to the ex-spouse. In other words, it is up to the surviving family to contact the company and let them know that the person named as beneficiary is now an ‘ex’ spouse. Otherwise, the family would have to sue the ex-spouse.

This statute does not apply to “joint” accounts. If the spouses have set up an account in both their names and then divorced or if one of them dies, the account will go to the survivor, even if they were not married at the time. This also does not apply to any court-ordered accounts or policies or accounts governed by the laws of another state, only those specific types set out in the statute. And, it only applies to people who passed after July 1, 2012.

Due to the protections against liability for payment to the ex-spouse, even if a credit union is aware of the divorce, the credit union has two options:

(1) Make no inquiries regarding any marital relationship between the deceased member and the pay-on-death (“POD”) beneficiary and pay the POD beneficiary as usual (following an OFAC search) or

(2) Adopt inquiry procedures to help prevent improper payment to an ex-spouse POD beneficiary.

The advantage of Option 1 is that no time or effort is devoted to a marital status inquiry or process. The disadvantage is that payment to an ex-spouse POD beneficiary is likely to incur the wrath of the deceased member’s heirs and probably involve the credit union in litigation between the ex-spouse and the heirs. While the credit union has strong protection under Florida Statutes Section 732.703(6) in such litigation, the credit union still takes the risk of the time and expense of litigation along with the bad will of the heirs.

The advantage of Option 2 is that the credit union can largely avoid involvement in a POD beneficiary dispute by preventing the dispute in the first place. The disadvantage is the time and expense of developing and implementing a POD beneficiary process that will require enhanced review of POD beneficiary designations and the member’s death certificate, the questioning of potential POD beneficiaries in certain circumstances, and the likely need for an affidavit in some cases.

Ultimately, credit unions must make a “pay me now or pay me later” business decision about the relative risks and benefits of Options 1 and 2.

Thank you to John DeLoach of Williams, Gautier, Gwynn, DeLoach & Sorenson, P.A. for his assistance in developing the two options.

From a credit union:Recently, we had a member who passed away. Our records show his ex-wife from a number of years ago as a beneficiary.

After the divorce, the member never removed the wife as the beneficiary. The lawyer stated that since the member divorced, it basically eliminates the ex-spouse from remaining as beneficiary, and the funds go to the estate. We have always heard that you can live or die by the account card. However, if what the lawyer said is true, would it mean that, upon death and before we issue funds to the beneficiary (assuming it is a spouse), the spouse would have to show proof they have not been divorced, or that they were even married? And to take it a step further, how do we know if the person was not their sibling?

The last thing I want is to end up in court over this situation; nor do I want to pay out the funds from the credit union and potentially have to pay them a second time. What would be your advice on how to handle this situation?

Pay on Death AccountsBill Berg, vice president, Compliance & Training/Information, LSCU

ADVOCACY


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LSCU Legislator ProfileCongresswoman Martha Roby

How and why did you become interested in public service and politics in particular; and what led you to run for Congress?

It’s kind of a long story (http://leanin.org/stories/martha-roby/). In short, my husband, Riley and I had always sought ways to get involved locally and help build up the community. When our local city council member announced her retirement, even though I was just 26 years old, we both knew God had opened a door and it was up to us to walk through it.

I got interested in running for Congress because I became troubled with the direction our country was heading after the 2008 election. The cascade of overreaching federal mandates and the government-knows-best approach to our way of life went against everything that has made America great. After some prayerful consideration, Riley and I felt that this was a chance to make a difference toward changing this country’s direction so it can remain great for our children.

As you enter the August recess, what are the most pressing issues for the 113th Congress when you reconvene?

Rep. Martha Roby is currently in her second term serving the people of Alabama’s Second Congressional District in the U.S. House of Representatives. Prior to being elected to Congress, Rep. Roby worked as an attorney and served as a city councilman in her hometown of Montgomery, Alabama.

Rep. Roby as one of only four freshman members to serve on the Majority Transition Team, a 22-member panel tasked with reforming House rules to provide greater efficiency, transparency, and accountability. Rep. Roby was also named chairman of the Armed Services Subcommittee on Military Oversight and Investigations, a rare honor for a second term member of Congress.

Rep. Roby has been a forceful advocate for cutting wasteful spending to balance the budget, reducing the national debt, and eliminating bureaucratic red tape that limits the private sector’s ability to get Americans back to work.

The fiscal year is almost over, and several appropriations bills remain unfinished. Also, the Treasury Secretary has now informed Congress that we’ll be dealing with another debt ceiling negotiation this October. Those are front-burner issues, and I believe also opportunities to push for meaningful reforms to spending programs.

However, the ensuing “train wreck” that is ObamaCare is still coming down the tracks, and that continues to dominate discussion in the halls of Congress. The Senate has run out of excuses for why it won’t act on House-passed common sense proposals to remove or even just delay some of the costly and burdensome mandates of the President’s health care law. For instance, we passed a bill giving every American the same one-year reprieve from the ObamaCare mandate that the White House is offering big businesses and health insurance companies, but the Senate leadership refuses to take up the bill.

Now, with the individual mandate set to go into effect January 1, ordinary Americans and small businesses are getting the short end of the stick. The more people learn about this law, the more unpopular it becomes. I think you’re going to see more political pressure on the Senate


than ever before to take up some of our “repeal and replace” measures in the coming months.

Credit unions are facing an alarming increase in regulatory burden throughout Alabama and across the United States. What do you feel is Congress’ role in helping alleviate the regulatory burden decrease the red tape of credit unions in Alabama?

Credit unions are like a great number of industries getting caught up in this administration’s ever-growing web of red tape. The reach of the executive branch has grown at an alarming rate of the last several years, and Congress has the responsibility to rein it in. Oversight of executive agencies is an important role of Congress, and I’m proud of the work this House majority has done to expose and root out instances of executive overreach, from labor relations issues to financial services, and of course the debacle at the IRS. It can be frustrating, though, because some of the worst offenses will take time to correct. One encouraging development is the increased willingness of the courts to strike down unconstitutional actions of Obama administration. With the legislative branch still divided, any help we can get from the judicial branch to keep this aggressive White House in check is certainly welcome.

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

Credit unions provide a valuable service, whether it is the employer and organization-based credit unions or the community credit unions. A credit union is more than a place to keep your money. It is a member-owned, community-focused resource for financial support and education, which is important these days more than ever.

If you could give one piece of advice to grassroots advocates for credit unions, what would it be?

I always say that politics is about relationships. Building and maintaining relationships with lawmakers, agency heads, and key staff will increase any organization’s likelihood of success. The better we know you the more we understand what’s important to you and why.

Rep. Martha Roby meets with credit union representatives during Hike the Hill in Washington, D.C.

LSCU Legislator ProfileCongresswoman Martha Roby

Earlier this year you successfully passed the “Working Families Flexibility Act” through the U.S. House of Representatives. First, how difficult of an endeavor was this legislation, and second, how significant is this piece of legislation for Alabama families?

It was difficult, particularly given the climate in Washington. That’s one of the reasons I was so proud to have passed this bill through the House.

I believe the Working Families Flexibility Act can be a tremendous benefit for Alabama families in terms of quality of life.

Should a working dad be forced to use up all of his vacation time in order to be involved in his child’s school? Should a military mom with her husband deployed have to dip into sick leave at work to make sure her kids have the parental support they need? Should someone with aging parents who require extra care have no option allowing them to devote more time and attention to their parents when they need it most?

The workplace has changed over the years, and so has the worker. We have different demands on our time, so it only makes sense that our laws governing the workplace catch up to the realities of today’s families.

The Working Families Flexibility Act allows employers to offer their employees the choice of paid time off, or comp time, in lieu of cash wages for overtime. A working mom or dad could use the “time and a half” overtime he or she earned as actual paid “time and a half” off work instead of cash, if that’s what they’d rather have.

No worker could ever be forced to take paid time off, just like no business owner would be forced to offer it. This bill does not change the 40-hour work week or how overtime pay is calculated. The same protections that have been a part of labor law for decades remain. But, for some workers and businesses, comp time could be a valuable option to include in a benefits package, just like it currently is for the public sector. n


LSCU Legislator ProfileRepresentative Matt Gaetz

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

Soon after I bought my first home, our city council considered a proposal to raise property taxes. I was incensed. So, along with friends and neighbors, we organized a petition drive and ultimately prevailed. Later, as an attorney, I worked on a lawsuit pro-bono to stop the imposition of a pet tax in my county. The local newspaper started calling me the “Tax Killer.”

As fees and taxes kept creeping up in Tallahassee, folks in my community started talking to me about running for the legislature. My district must have a great sense of humor; they have now elected me three times.

In your eyes, what are some of the biggest issues facing Floridians as we move toward the 2014 Legislative Session?

Nationally there is great uncertainty in the economy. Nobody knows what regulations are just around the corner. This supercharges the importance of making Florida a safe harbor for free enterprise and predictable rules.

Matt Gaetz is a Republican member of the Florida House of Representatives, representing the Fourth District, which includes most of Okaloosa County, since 2010.

While serving in the Florida House of Representatives, Gaetz joined with State Sen. Joe Negron to propose legislation that is “designed to accelerate the execution of many of the 404 inmates on Florida’s death row” by requiring the governor to sign a death warrant for those inmates who have exhausted their appeals. He also joined forces with State Sen. Greg Evers to repeal legislation that requires that 10 percent of gasoline sold in Florida contain ethanol.

He is chair of the Criminal Justice Subcommittee and a member of various committees that include: Collective Bargaining, Health Care Appropriations Subcommittee, Judiciary, Regulatory Affairs, Rulemaking Oversight & Repeal Subcommittee, and Select Committee on Gaming.

Currently our states pension system and the present state of Citizens Insurance are the greatest risks to stable economic activity. Both need serious reform.

For the last few sessions, bills have been filed to amend Florida’s public deposits law and allow credit unions to serve as qualified public depositories. Why do you feel this is important legislation?

Confession: I am a conservative Republican. My party must be the vanguard of fair economic competition - because if we aren’t, who will be?

Credit unions should be empowered to compete for public depository business. It will make everyone in the industry stronger by necessitating innovation and even better service for customers.

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

Credit unions play an important role in our economy both nationally and locally. As member-owned institutions, they are always making decisions for the betterment of the


people and communities they serve. I think it’s important that credit unions continue to offer their products and services to our communities and expand those services when necessary and appropriate. I am lucky to live in a community with such great credit unions that do such great work.

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

No legislator would rather talk to a lobbyist than folks from their district. Any who disagree probably are not that effective in the first place. The truth is, when we are in Tallahassee, we miss home. Seeing people from our communities rejuvenates us and reminds us why the work we do is important.

My advice: build a network of supporters for legislators who support your cause. Be willing to knock on doors, make phone calls and stuff envelopes. These experiences create great bonding opportunities. Less informed legislators will take notice. They will wonder who these hard

Rep. Matt Gaetz debates an amendment to a bill on the House floor.

LSCU Legislator ProfileRepresentative Matt Gaetz

working credit union people are who seem to always be helpful.

Grassroots fundraising is also really important. After all, money is the mother’s milk of politics — and we all get thirsty.

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

This is really an unfair question. Jared Ross has been one of my best friends since college. He was a few years ahead of me and always took time to mentor me. Now it is a joy to work with him to expand economic freedom.

Andy Gonzalez was my número uno campaign volunteer. After I got elected he refused to leave, so I went ahead and hired him to serve as my chief legislative aide in Tallahassee. I don’t think I know a harder working person in the lobbying profession. Andy has developed a reputation as a determined researcher and a tireless advocate.

If my livelihood depended on a result in the Florida Legislature, these are the guys I’d hire. n


INITIATIVES

Cooperative Initiatives

This past June, I had the opportunity to participate in the International Credit Union Leadership Program as an intern for two weeks in San

José, Costa Rica. The program, sponsored by the World Council of Credit Unions (WOCCU) and the U.S. State Department, is designed to facilitate idea exchanges, promote foreign language development, enhance cultural diversity, and improve problem-solving skills as they relate to global credit union development and management.

The program’s application process involved two written essays as well as a phone interview to assess Spanish language skills and discuss applicants’ goals to be able to place them in the most beneficial credit union assignment while in Costa Rica. After WOCCU chose the 12 interns that would participate, and the State Department approved, the program directors hosted an informational webinar before the trip and then facilitated a program orientation during the first few days in Costa Rica. The orientation included activities like a walking tour of the city and a trip to the U.S. Embassy where we heard from a government economist about the financial climate in Costa Rica. From there, the interns met their host families that they would be living with for the remainder of the trip and went to their assigned credit unions to get to work.

Since I am a League employee and I do not work for an actual credit union, my host was FEDEAC, which is one of the national credit union leagues in Costa Rica. During my time there, I lived with a FEDEAC

employee, Marlen, who took me to work with her every day, and showed me the sights and culture of Costa Rica in the evenings. While I was at FEDEAC, I spent time learning about the organization and what it does for credit unions; I attended board meetings and roundtables, toured the Costa Rican Congress building, and shadowed the employees during their daily activities. I also had the opportunity to see a few fellow American participants during some visits to credit unions.

The experience taught me about Costa Rican credit unions, but I also learned a lot about the credit union movement in general. I learned that “people helping people” is truly a universal concept. It was very interesting to speak with Costa Rican credit union employees and the other American interns on the trip and hear them tell me essentially the same thing; they believe in the credit union movement and they participated in this program to be able to offer the best possible products and service to their members. It was interesting for me to observe credit union employees from

multiple backgrounds and cultures that all genuinely care about their work and the well-being of their members.

Benson Bolling, vice president of lending for Alabama CU, who was also a participant of the program, spent his time with host credit union COOPENAE. “I found the exchange program to be a great learning experience. Credit Unions in Costa Rica are very similar to those in the U.S. in that they are committed to helping their members achieve their financial goals and improve quality of life. COOPENAE has a truly outstanding team. They went out of their way to make us feel welcome and to help us learn about their philosophy of serving members and the community. I was particularly impressed with their in-school initiatives to bring credit union services to students and parents. Observing and learning about such programs provides many ideas which I hope to put to use in my position with Alabama Credit Union,” said Bolling. “I would highly recommend the exchange program to credit union employees. The time spent working with

Connecting credit union professionals across cultural and physical bordersJordan Burroughs, governmental affairs specialist, LSCU

The experience taught me about Costa Rican credit unions, but I also learned a lot about the credit union movement in general. I learned that “people helping people” is truly a universal concept. It was very interesting to speak with Costa Rican credit union employees and the other American interns on the trip and hear them tell me essentially the same thing; they believe in the credit union movement and they participated in this program to be able to offer the best possible products and service to their members.


credit union professionals in another country is a great learning opportunity.”

Susan Wise, financial service representative for Innovations FCU, spent her internship with Coopeande #1. “My experience in Costa Rica was amazing! I learned that cultural differences are not an obstacle but an opportunity to learn and grow. This program provides a great opportunity for emerging CU leaders to develop a stronger understanding of a growing diverse culture,” said Wise.

Emily Thomasee, financial service representative II for Innovations FCU was hosted by Coopeorotina. “I am very grateful for my internship experience with WOCCU in Costa Rica. I met an amazing group of interns from all over the United States and the experience has taught me much more about credit unions and the services they offer their members. While in Costa Rica, I had the chance to learn about the daily functions of local credit unions and how they compare and contrast to the credit union setting I am accustomed to. I was also able to connect with the other American interns and discuss the different products and services we each offer our members.

I believe this program is a very enriching experience for all who were involved and I am so thankful I was able to bring back the knowledge and information I acquired in Costa Rica to my fellow coworkers at Innovations Federal Credit Union,” said Thomasee.

My participation in the International Credit Union Leadership Program was an enormous benefit to my personal and professional development. I was able to bring many ideas that I learned back to the League to try to better our organization. The program also gave me a better understanding of the credit union movement from a global perspective. Now, I have the ability to think about credit union policies and procedures, and how they may affect people from a multitude of backgrounds. On a personal level, I built a great network of new friends with whom I will remain in contact and continue to exchange ideas and information. I am grateful for WOCCU and LSCU for their support and organization of this program for I truly believe that I am a better credit union advocate and person because of this experience. n

Jordan with her host credit union, FEDEAC: Marlen Naranjo; Manuel Bolaños, CEO; Jordan; Silvia Chinchilla; and Milagro Vargas.

Susan (second from left) attends a school event put on by her host credit union.

The American interns in front of the embassy.


SECUF’s Mobile Branch Ready for Service

At the core of credit union philosophy is the concept of “people helping people.” Never is this more evident than in the wake of a natural disaster. Alabama and Florida are particularity vulnerable to both tornadoes and hurricanes, as several Alabama credit unions learned in 2011, and again in 2012, when a series of

tornadoes devastated the state. Credit unions in Florida have also been ravaged by hurricanes. Although we hope to never again be faced with a natural disaster, we live in an area where they can occur at any time, and we must stay prepared. Providing assistance to our credit unions and the communities they serve is a top priority for the Southeastern Credit Union Foundation (SECUF), and now the Foundation has a new asset to help in our efforts to provide disaster relief.

Thanks to the generosity of Pen Air Federal Credit Union, based in Pensacola, the SECUF now has a mobile branch that can be deployed to assist credit unions following a natural disaster. The mobile branch, which was donated to the SECUF by Pen Air earlier this year, is the same one that was deployed to WinSouth Credit Union and Secure First Credit Union when their buildings were damaged in the 2011 and 2012 Alabama tornadoes. The vehicle has recently been re-wrapped and includes the web address www.asmarterchoice.org to help consumers locate credit unions in their community. The newly wrapped mobile branch was displayed in Orlando at the League of Southeastern Credit Unions’ Annual Convention and Exhibition.

The 40- foot mobile facility 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.

“Let me personally thank Pen Air FCU for their generosity,” said Mary Ott Wood, president/CEO of Florida West Coast Credit Union, and chair of the LSCU board of directors.

“Their over-the-top donation of a mobile branch is extraordinary and tells that our spirit of cooperation is alive and well! I am certain that many credit unions will benefit in the years to come.”

The mobile branch will be housed and maintained at the Tallahassee office and although it may be used for some promotional events, the primary purpose of the mobile branch is for deployment to credit unions that need assistance in the aftermath of a natural disaster. Credit unions seeking additional information on the mobile branch should contact Leonard Parkhurst at [email protected]. n

FOUNDATION

“Their over-the-top donation of a mobile branch is extraordinary and tells that our spirit of cooperation is alive and well! I am certain that many credit unions will benefit in the years to come.”

Leonard Parkhurst, director, Southeastern Credit Union Foundation


League Education

EDUCATION

■n Competitive edge: Trite but true, knowledge is power. The more information you have the better decisions you will likely make. You will spot both threats and opportunities early on. This is especially important if you contribute to shaping your credit union’s strategy.

■n Expert power: By developing expertise in your job and the industry as a whole, you will earn the trust and respect of the people around you. From a leadership perspective, this is invaluable.

■n Foresight: If you are watching the radar you are more likely to see future storms and other forecast changes on the horizon. Knowing what is coming before it hits gives your credit union time to prepare and best position itself for what lies ahead. This is the type of information that will keep you in the know and allow you to be proactive in adapting to coming regulations and trends.

Once you decide that keeping up with industry news and developments is a priority for you and your credit union, you will need to identify the best sources to use. To get you started there are some traditional and online sources listed below. Keep in mind that industry news sources are seldom one –size fits all, so be sure to choose the most

appropriate source for you by considering your role and the type of work you do.

Traditional Sources

Find a Mentor: A great starting point is to find a mentor within your organization. Not only can mentors help you solve career issues and develop your career, they can provide you with a wealth of insider knowledge, as well as with the insight needed to understand it.

Trade Organizations: Trade Organizations such as LSCU & Affiliates are also very useful, because they can keep you informed with newsletters and publications. Plus, they provide networking and educational opportunities with meetings and conferences.

Trade Shows and Conferences: Trade shows and conferences such as the LSCU Annual Convention & Exposition, LSCU Leadership Development Conference, and LSCU Supervisory Committee Conference are great source for learning about new services, new products, and industry trends; and they can provide ample networking opportunities with your peers.

Face-to-Face Networking and Education: Face-to-face networking and education can be one of the most rewarding ways to stay on top of industry news and trends. Often, professional relationships can

develop into deep friendships, especially when you meet on a regular basis.

Keep in mind that you have a wide pool of people you can network with. People directly related to the credit union industry are an obvious choice, but so are industry suppliers, members, and people working in related fields.

Online SourcesBlogs: Blogs are not just for personal

journaling anymore. Many bloggers are respected for their high quality work and honest opinion. Do a Web search for keywords that are commonly used in the credit union industry - it might take a bit of time, but you may find some high quality blogs relevant to your job.

Twitter: Twitter can be a great place to find industry leaders and organizations, and to stay on top of relevant news and trends.

Use it to find people in the industry who are in-the-know, by searching Twitter for relevant keywords.

LinkedIn: Using LinkedIn is a wonderful way to connect with colleagues, trade groups, and industry leaders. You can join industry-specific groups, and get the latest updates from individuals and organizations.

Forums: Membership sites and discussion forums such as the CUNA Councils Connect network can be full of insider-information tailored around specific topics; and talking with other professionals in your area of expertise can help you network and grow your skills, especially if you are in a technology field such as IT.

Keeping Up to Date on Our Industry

With all the things on your plate, it is easy to bump and re-bump the task of keeping up with industry news to the bottom (low priority, probably will not happen) section of your lengthy to-do list. But before keeping up with industry news is demoted yet again, perhaps you should consider the following important benefits this act can provide:


Other tips:■n Schedule time daily or weekly to devote

to reading and networking. Staying up-to-date requires a regular commitment if it is to pay off, so work time into your schedule whenever you can.

■n If you are unsure of which forums to use, do not hesitate to ask colleagues, browse online, or ask your Twitter or LinkedIn connections for recommendations.

■n Once you have identified sources and use them regularly, decide if they are worth your time. If a publication or source does not provide real value to you, then

do not be afraid to cut it from your list.■n Keep in mind that you do not need to

know everything, from every source, about the industry. Get on overview of what is happening and learn more about topics that will affect your credit union directly. Do not be afraid to re-visit a topic if needed. As it has been said, an educated person does not know all the answers, but does know where to find them.

Overall, keeping-up-to-date on the credit union industry is only useful if you use the

information learned. So, do not just “store” the knowledge you gain: use it to take advantage of opportunities, minimize threats, and make better decisions. n

© Mind Tools Ltd, 1996-2013. All rights reserved. Reproduced with permission. Article location: http://www.mindtools.com/pages/article/keeping-up-to-date.htm

Keep in mind that you have a wide pool of people you can network with. People directly related to the credit union industry are an obvious choice, but so are industry suppliers, members, and people working in related fields.


EDUCATION

Download the complete 2013 LSCU Events Calendar at www.lscu.coop.

Upcoming Learning Opportunities

*Bolded listings denote workshops and conferences. Non-bolded listings denote webinars.

October 2013 1 Consumer Debt Resolution Series:

Advanced Bankruptcy Issues

2 From Prospect to Member: Skills & Tools for Successful Business Development

8 Director Series: Documenting Your Strategic Plan Years 1, 3 & 5: Meeting Examiner Expectations

9 Electronic & Hard-Copy Records: What to Keep, What to Destroy, What Holds Up in Court

8-9 LSCU Collections & Bankruptcy School – Orlando, FL

15-16 LSCU IRA Essentials & Beyond Essentials Training –Jacksonville, FL

16 LSCU BSA Training Workshop – Muscle Shoals, AL

16 Conducting an HR Audit: Compliance Risks, Audit Areas & Best Practices

16-17 LSCU CU Philosophy in Action Workshop & CUNA/LSCU Orientation –Orlando, FL

23 Dealing with Adverse Action: What to Do & When to Do It

24 HMDA Solutions: Achieving Data Integrity for Effective Fair Lending Analysis

29 Critical Risk Factors in Loan Portfolio Management

30 Simplifying the Compliance Function: Tools, Checklists & Reporting to Keep You on Track

November 2013 5 UDAAP: Civil Money Penalties &

Examiners’ Findings on Unfair, Deceptive, or Abusive Acts or Practices

6 - 8 LSCU Leadership Development Conference – Point Clear, AL

7 Frontline Excellence Series: Advanced Endorsement Issues: POAs, Businesses, Trusts & More

13 Mobile Payments for Credit Unions: Impacts, Choices & What to Do Next

14 Indirect Lending: Risks, Rewards, Controls & Common Mistakes

19 Fair Labor Standards Act: Sorting the Dos & Don’ts of Exempt & Non-Exempt Pay Issues

21 Form 1099 Reporting: Third-Party Vendors, Foreclosures, Debt Forgiveness & More

26 Compliance Update on Nonresident Alien Accounts: Opening, Tax ID Numbers, IRS Issues & More

December 2013 3 Consumer Debt Resolution Series:

Avoiding Liability in the Collection Process

4 Mandatory Compliance Series: A Fresh Look at Robbery Preparedness

5 Cracking the Code on Risk-Based Examinations: 10 Techniques to Ace Your Next Exam

10 Managing Day-to-Day ACH Risk

11 Documenting Your Required Information Security Program

12 12 Steps to Effective Expense Control: Practical Techniques for Cutting Costs & Increasing Profits

17 Regulation E vs. ACH Rules: Which One Prevails?

18 Director Series: Top 10 Questions Board Members Need to Ask Now!

November 6-8, 2013 | Point Clear, AL | www.lsculeadership.com


EDUCATION

Supervisory Committee Conference Brings Knowledge, Best Practices, and Laughter

TOP: Mid-size credit unions meet to reveal and discuss concerns while facilitator David LeNoir assists in expanding on those concerns encouraging peers share best practices. Pictured L to R: Marvin Dailey of Valley CU and Robert Davis, Alice Haley, and Sandy Battles of WinSouth. MIDDLE: L to R: Joey Cantrell of Listerhill CU, Mike King of Champion Community CU, and Willie Jones of Listerhill CU networking as they prepare to take the director’s institute course, putting them one step closer to achieving their CCUV designation.

BOTTOM: Frank Garrett of IAM FCU, left, and speaker Barry Thompson, right, interact as Barry shows how elder fraud is becoming the biggest growing segment for crime in our country.

More than 135 officials representing 45 credit unions across Alabama, Florida, and Tennessee joined the LSCU & Affiliates at the 2013 LSCU Supervisory Committee Conference, held August 4-7, in Destin, Florida. Participants received a wealth of information on their role in the credit union, what their job entails, and when action is called for.

Attendees heard from Barry Thompson of Thompson Consulting Group, LLC on The Culture of Ethics as he provided practical training techniques to help ensure that credit unions consistently behave in accordance with ethical standards. Barry also presented on elder fraud, reviewing how fraud attacks work, as well as how to get help. This information packed session gave participants a whole new perspective on elder fraud. In addition to the Economic Update presented by Roger Tutterow, Ph.D. and the NCUA Update presented by Region III Supervisory Examiners Robert Parrish and Ricky Crews, there were several informative, in-depth, sessions covering topics from BSA for officials, fraud, building credit union audits, supervisory committee basics, and credit union advocacy.

Arguably, the most valuable sessions at the conference were the roundtable discussions. Broken down by asset size these roundtable discussions provided a casual open dialogue for participants to share best practices, challenges, success stories and lessons learned. The conference closed with a room full of laughter, motivation, and inspiration as Dr. Dale Henry presented Do You Sizzle or Fizzle? A Recipe for Leadership Country Style, proving that the future belongs to the listeners, the communicators, and those passionate and dedicated leaders who not only have an enormous amount of energy, but who can energize those around them. n


The terms big data and data mining have recently propelled from industry-specific jargon to full-fledged mainstream buzz words. Unfortunately,

like many of the buzzwords that came before them, the terms big data and data mining are often used but seldom fully explained, leaving many people in the dark as to what these terms actually mean. If your understanding of big data and data mining is a bit shady perhaps the following will help shine some light on the matter – from what these terms mean, to the realities and possibilities they hold for your credit union.

The terms big data and data mining, at their most primitive, are actually quite self-explanatory. Big data refers to sets of data that are too “big” to capture, curate, manage, and process with commonly used software. Data mining consists of “mining” through the big data extracting information previously unknown, and transforming it into an understandable structure for further use.

To visualize big data and data mining consider the following example from Jason Frand at UCLA: One Midwest grocery chain used the data mining capacity of Oracle software to analyze local buying patterns. They discovered that when men bought diapers on Thursdays and Saturdays, they also tended to buy beer. Further analysis showed that these shoppers typically did

their weekly grocery shopping on Saturdays. On Thursdays, however, they only bought a few items. The retailer concluded that they purchased the beer to have it available for the upcoming weekend. The grocery chain could use this newly discovered information

in various ways to increase revenue. For example, they could move the beer display closer to the diaper display. And, they could make sure beer and diapers were sold at full price on Thursdays.

Retail giants such as Amazon, Google,

and Walmart have been data mining for years and are using big data in similar ways, gaining customer insights that might lead to a greater market share and ideas to serve consumers better. Credit unions are typically using big data to predict the next best product for their members and to improve their targeting with lending offers.

For example, according to Filene’s report “Big Data and Credit Unions: Machine Learning in Member Transactions ” by

Philipp Kallerhoff, PhD., credit union members typically move from simple

products such as demand and savings accounts to revolving lines of credit and mortgages. Additionally, these correlations appear to be stronger when you factor in a member’s specific transactional and account history. Generally speaking, before someone adds new financial products, their balance-to-income ratio increases or their

income drops suddenly. These types of changes are very

reliable indicators of which kinds of products will interest your members in

the future. With this data you can present the right information, to the right member, at the right time, leading to maximized product sales at a minimum marketing cost. Not to mention, you can do this all without the guesswork, subjectivity, and substantial cost of a matrix direct marketing communications plan.

As far as lending goes, according to the Filene report, data mining can add another dimension to credit scores,

COMMUNICATIONS

Natalie Edwards, communications coordinator, LSCU

Big Data Mining – How It Can Work For Your Credit Union


allowing lenders to improve underwriting and use transactional information to take different risks on members than a standard credit score would allow. By mining data on consumer behavior, such as which restaurants, grocery stores, and coffee shops a member frequents, a credit union can usually predict the member’s credit score. For example, a member that frequents a gourmet cheese store or gourmet deli is likely to have a credit score around 800 where as a member who shops at a discount grocery chain is likely to have a credit score of around 600.

With this data your credit union has numerous possibilities. Just think if you wanted to target qualified buyers with a specific lending product, you would not have to pull a single credit report; you could simply comb your transactional data base for consumers who shop at the type of stores that correlate with higher credit scores. This should easily lead to an increase in approved and funded loans, which could possibly triple what your credit union typically sees when blindly targeting members.

Tallahassee-Leon Federal Credit Union dove into big data a year ago and has been mining data regarding pay down rates on auto loans, recent loan payoffs, and other account types the member may have that fit the profiles of other borrowers. Externally they enlisted the credit bureau to provide information such as credit scores,

delinquency information, and overall loan balances.

“Like everyone else, we were just trying to look under every rock for an effective way to target members that may have a need – like an impending vehicle purchase or potential to save money by transferring a credit card balance,” said Michael Akers, VP, sales and service at Tallahassee-Leon Credit Union. “We also didn’t have the means to just arbitrarily send large, glossy postcards to our entire membership so we had to go about it in a more cost-effective way,” Akers continued.

But is data mining really practical and accessible for all credit unions, particularly the smaller credit unions? Well the answer is no…and yes. Currently, when it comes to data analytics many credit unions, and banks for that matter, are described best by the Filene report as “still learning to walk and chew gum at the same time.” This is not a jab at financial institutions, just an acknowledgement of reality. The fact is that financial institutions, particularly smaller financial institutions, are hindered with whatever IT limitations their core system has. Additionally, many credit unions have tangled web of systems and third-party solutions, such as lending systems acquired in a merger, stand-alone credit card systems, etc., which make it very difficult to harness their existing data, much less mine big data.

However, according to Filene, it is too

early for anyone to dismiss big data. While individual credit unions may not have the resources of corporate giants, advances in data storage and software tools will make it more of a reality for smaller credit unions to start using similar technology to derive insights from big data.

Tallahassee-Leon can attest that setting up data mining is a process and that it does take time to build reports and profiles, as well as making sure that your credit union is getting the data that it needs. However, the investment pays off. Akers explains that Tallahassee-Leon’s marketing is significantly more targeted and more personal. “We hope our members see that we are only trying to offer products or services that will save them time or money,” said Akers.

Akers would advise any credit unions considering data mining to do their homework and take stock of the information they have on hand before engaging an outside agency, especially a credit bureau. He warns that if you wait to get credit profile information back in-house before building your reports or scheduling your marketing, you may end up working with stale data by the time it hits the member’s hand.

For credit unions that currently use big data, Akers recommends tracking your results and periodically sharing them with your teammates. He explains that this will keep you and the program accountable for results or let you know that it might need some adjustment. Also, Akers encourages credit unions to constantly look for ways to get the front-line staff to capture more information on the system. Akers says, “If there is a blank spot on the system, fill it! Whether it is just an email address or even salary information, the more good info you have the more targeted and effective your approach can become.” n

Big data refers to sets of data that are too “big” to capture,

curate, manage, and process with commonly used software.

Data mining consists of “mining” through the big data extracting

information previously unknown, and transforming it into an

understandable structure for further use.


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NEWS

League NewsBlue Angel Pilot Highlights AC&E

The LSCU hosted more than 1,000 credit union officials and exhibitors in Orlando at the Annual Convention and Exposition (AC&E). More than 110 credit unions from Alabama and Florida were represented, while the exhibit hall housed 120 vendors, 28 of which were new this year. The LSCU AC&E is one of the largest credit unions conventions in the country. This year a new app was unveiled and downloaded by more than 300 attendees.

Some of the highlights included John Foley, former Blue Angel lead solo pilot, giving a rousing keynote address. He took credit unions inside the cockpit of F-18s, as well as the briefing and de-briefing rooms. He showed attendees how they could challenge themselves and their employees to think differently and with more clarity. He gave examples of the level of detail needed, such as how the Blue Angels pilots see a two-story white house with green shutters in the upper left window as a marker on the ground when doing maneuvers, all while going 400 mph. This level of detail will set credit unions apart.

LSCU & Affiliates handed out seven awards during the General Session. Pen Air FCU Director Betty Petree was named the Distinguished Service Award winner, and she did not know until the video announcing the award was played. Her comment to her co-workers after receiving the award, “I’ll get you for not telling me beforehand.” Petree’s picture will hang in the Credit Union House Hall of Fame in Washington, D.C.

There were more than 18 educational breakout sessions over two days. Most of the rooms were standing room only. Alive CU Director Mel Maycole, a second time attendee, said, “The BSA training was very interesting and informative. I picked up many things to take back to my credit union.” The CEO and Director’s Roundtable, new sessions in 2013, were very well attended and many points of discussion were brought up including tax reform, secondary capital, and loan participation.

The makeup of the LSCU board did not change much following the Annual Business Meeting. Tropical Financial CEO Rich Helber stepped down from the board and Suncoast Schools EVP Kevin Johnson was elected and seated. The executive committee remained the same.

To view more pictures from the AC&E, visit the AC&E Photo Gallery on www.lscuconvention.com. n

TOP: LSCU President/CEO Patrick La Pine and LSCU Awards Committee Chairman Brent Lister present Betty Petree with Distinguished Service Award.

MIDDLE LEFT: CFE FCU’s Eddie Sanabria and Sun CU’s Pat Mason stop to talk to one of the exhibitors in the exhibit hall. The LSCU AC&E is

one of the best in the country because of the support of our exhibitors and sponsors.

MIDDLE RIGHT: Pompano Beach City ECU Manager Nanette Collette picks up her item she won at the silent auction on Friday night. Proceeds of the auction went to the LSCU PAC.

BOTTOM LEFT: Attendees during one of the more popular education sessions: Key Lending Strategies for Growth. BOTTOM RIGHT: Keynote speaker John Foley took a moment after his “high performance” address to pose with attendees.


INDUSTRY

A Corporate Governance Responsibility

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

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

Strategy is the FoundationThe foundation upon which an effective

succession plan is built is agreeing upon the credit union’s strategic imperatives; not only the present strategic imperatives but also asking what changes can be seen coming down the road in the next 3-5 years that could impact the credit union’s business model. Looking down the strategic path three to five years for possible significant changes

will help sharpen the board’s focus on the successor profile.

Chances are that your next CEO will face an entirely different environment than your current CEO had to face at his/her hire date and, consequently, your measuring tool, the CEO candidate profile, will need to be adjusted. Drafting and periodically revising the candidate profile based on the credit union’s changing strategic imperatives and the changing business environment is an important deliverable for the succession committee to discuss with the board annually.

From Where is the Candidate Pool Drawn?

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

It is interesting to note that studies indicate that CEOs of the largest American corporations come from the senior ranks inside of the organization a large percentage of the time – up to 75 percent according

to Brendan Sheehan of the international recruiting firm of Korn/Ferry. This is understandable because these organizations often have tens of thousands of employees and senior executive ranks. Their internal candidate pool is very deep. Our experience is that within credit unions, CEOs are drawn from the senior ranks about 40 percent of the time and from a national pool of external candidates about 60 percent of the time.

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

Timing of Leadership TransitionThe succession committee should

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

Succession Planning – The BasicsEugene O’Rourke, managing director, O’Rourke & Associates

Succession planning has long been recognized as a component of the board’s responsibility, yet in reality this aspect of corporate governance has been given more lip-service than action. While there are certainly exceptions, credit unions as a whole are not shining examples of conscientious succession planning.


The Two Candidate PoolsCredit union succession committees

should focus on understanding which candidate options are most appropriate for their succession strategy, given that the transition could occur at various points in time. The other piece of the succession puzzle is to gain an understanding of when

the CEO leadership transition is most likely to occur.

The availability of qualified external candidates is usually not an issue. At almost any time there are candidates who can fulfill the basic criteria for a credit union CEO search. Boards would do well to track high performing credit unions in their market who have similar business models or those who have business models the credit union aspires to emulate. Monitoring websites and tracking financial performance through peer credit union benchmarking are two tactics that can be employed when keeping boards aware of high-performing credit unions. This approach positions the board well for knowing where to begin looking for external candidates when CEO transition is imminent.

The availability of the internal candidate pool can present challenges. In a perfect

world, internal candidates would be ready, willing, and able to compete for succession at the time the transition is to take place. More often, either the internal candidate is not yet ready to succeed, needing more experience; or the internal candidate is ready well before the transition is to take place. In the latter case, the internal candidate often

senses that the opportunity to succeed the present CEO is too far down the road for their career path and consequently leaves the credit union for another opportunity.

However, we believe that under most circumstances it is in the credit union’s best interest to continuously invest in grooming their high potential executives for CEO leadership. All along the continuum of the grooming process – cross-training, leadership coaching, mentoring – the credit union benefits from its investment in these individuals because they are, or should be, improving their execution, collaboration, and strategic skills. Even if the high potential executive departs the credit union for another leadership opportunity, their contributions remain. An unintended consequence of these efforts is that as the management team increases their capabilities, some

CEOs realize that their stress is significantly relieved and this increases the likelihood that the CEO will adjust their retirement date to a later point in time. Keep in mind there are solutions that create incentives for the internal candidate to stay and incentives that encourage the retiring CEOs to retire as planned.

Culture vs. ChangeInternal candidates typically bring the

advantage of maintaining consistency of the credit union’s culture, member service philosophy, and business model; while external candidates bring the promise of new ideas, diversification of experience and success, and perhaps a greater willingness to consider change. If culture is integral to the success of your credit union in serving its members, then a qualified internal candidate presents a significant advantage to the credit union. When interviewing some credit union leadership teams and boards we have heard that the greatest risk to the credit union in the CEO succession transition is that the culture may suffer.

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

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


Now that LEVERAGE has firmly established its own identity within Alabama and Florida, we felt it was time to change its tagline from “The LSCU Service Corporation” to something that better represents its value proposition to credit unions. We started the process by researching other successful taglines.

According to Heidi Losleben with www.goeastdesign.com, there are five traits of a successful tagline. She defines a tagline as “a short, distinctive, easily recognizable phrase that accompanies a brand, conveying its promise in a few very memorable words,” and gives the “Got milk?” tagline as an example.

Losleben states the most successful taglines share the following common traits:1. They make sense. 2. They are simple and succinct, e.g. Nike’s “Just do it,” and

7-Up’s “The uncola.” Get your point across in as few words as possible.

3. They are original. Your brand is one of a kind; your tagline should be, too. A tagline should point out what makes you different from your competition. UPS’ “What can Brown do for you?” is a good example.

4. They are memorable. The most successful taglines stick in your head, long after you have read them. “Got milk?” was created in 1993 for the California Milk Processor Board and it is still making impressions.

5. They are funny or clever. This last trait is optional but Losleben thinks it goes a long way to support #4. Plus, if you can entertain someone and sell your brand or product at the same time, everyone wins. Some of her favorites include: John Deere’s “Nothing runs like a Deere,” Taco Bell’s “Think outside the bun.”

Now, rather than “The LSCU Service Corporation,” the LEVERAGE tagline is “Your Advantage.”

“Your Advantage” lets credit unions know that working with LEVERAGE gives them an advantage over their competition. The LEVERAGE brand also received a slight makeover. LEVERAGE is selling more products and services in other states so the new tagline is not state/league specific, and, instead, shows more of what LEVERAGE means to its clients across the country.

LEVERAGE is a complex company that customizes products and/or services to fit each individual credit union’s needs and goals. We believe our new tagline (Your Advantage) subtly articulates LEVERAGE’s overall value proposition. With the addition of a single comma, it’s two taglines in one:

LEVERAGE, Your Advantage.LEVERAGE Your Advantage.

The tagline is personal, just like LEVERAGE. For one credit union, Your Advantage might be LEVERAGE Audit and Consulting Services, or Ventelligence; for another, it could be ComplyTrac or HR Services; and yet for another credit union, it may be CO-OP Debit Services. LEVERAGE provides your credit union an advantage in transaction services, regulatory compliance, vendor management, strategic purchasing, and competitive pricing through key strategic partners. Regardless of the product or service LEVERAGE represents, the overall promise of value to your credit union is the same – we, LEVERAGE, are working for your advantage.

“Your Advantage” is easy to remember and concise. In two words, it captures the essence of LEVERAGE and its diversity with all we have to offer credit unions. We hope it will be recognizable with the LEVERAGE brand and that you will think of us regularly when looking for your advantage. n

New Tagline Supports LEVERAGE’s Value Proposition Kevin Lytle, vice president, Innovation & Business Development, LEVERAGE

LEVERAGE

Your Advantage


LEVERAGE

It is conversation that occurs on almost a daily basis with regards to credit cards. Why should credit unions, and in particular smaller credit unions, issue credit cards? There are two prominent, and frequently cited, answers. First, by issuing credit cards, credit unions maintain and often grow the relationship they

have with their members. Second, credit cards often have the highest return on investment (ROI) of any loan product.

Despite these two reasons many credit unions do not issue a card period, much less their own card. Often credit unions believe they lack the resources necessary and/or the expertise needed to effectively manage a credit card program. As a result, credit unions often chose to either enter into an agent relationship or opt out of issuing cards altogether.

While this reasoning certainly deserves consideration, the answer may not be to get out of the issuing business, but rather to get into issuing credit cards and/or expanding your existing credit card program.Credit unions should also consider the recent court ruling, impacting debit interchange, before making a decision to not issue cards. While this ruling may not directly impact most credit union, the indirect impact may potentially result in reduced interchange income for all debit issuers. As a result, credit unions looking to generate

additional revenues need not look any further than their own credit card program.

If a credit union is interested in issuing credit cards but is concerned about not having enough resources or the right expertise, it could consider an agent relationship. Though, if a credit union chooses this route, it needs to be aware that agent relationships often leave credit unions at the issuer’s mercy when the initial contract comes up for renewal. Another possible solution for a credit union with these concerns is to partner with someone who can provide the resources necessary to offer a successful card program.

LEVERAGE has been partnering with credit unions for more than 20 years to provide sought after services to credit unions. As with any issuer, LEVERAGE has been reviewing its support structure and how it can adapt to the ever-changing environment that is the credit card world. As LEVERAGE completes this review and begins to implement some new support processes, its goal is to be better positioned to support the changing needs of the credit unions it supports.As part of this goal, LEVERAGE hopes to not only support issuers from a processing perspective, but also, to support credit unions with the necessary expertise to drive growth and profitability within their card programs. n

Credit Cards – Why Now?By Jay Brady, vice president, Transactional Services, LEVERAGE

Eliminate Manual Compliance Processes & Reduce Labor Expenses

LEVERAGE, in partnership with Continuity Control, offers ComplyTrac, the only complete compliance execution platform exclusively offered to credit unions, with a standardized regulatory compliance process housed in one easy-to-manage system.

The platform was built specifically with the rate-of-change in mind, so credit unions can efficiently keep up with Washington, because solving one change at a time simply doesn’t work.

Gone are the days of missing a new regulation or rule. Controlling compliance costs is no longer wishful thinking. And, with day-to-day compliance being managed by the platform, pertinent regulatory updates are distributed as they occur. ComplyTrac clients are able to save time, lower risk, and focus on serving members!

To request a demonstration, email [email protected]. Automated Compliance Execution Powered By:


The challenges facing financial institutions today are similar to the challenges faced over the last few years. Among these challenges, regulatory compliance pressures continue to force credit unions to look at more effective ways of managing and keeping up with this ever-changing landscape. Decreased loan demand also continues to compel credit unions to find new forms of non-interest income to offset earnings. Additionally, staffing cutbacks and salary freezes make it difficult to

motivate employees, potentially causing lower productivity, talent loss, and (ultimately) poor member service.

Developing more comprehensive strategies through a variety of services is necessary to succeed in the upcoming year. LEVERAGE is committed to helping credit unions find the right services to help enhance existing efforts, implement new efforts, and support future efforts. As you begin to plan for next year and define new strategies, consider the following

programs that have helped many of your peers overcome these challenges in the marketplace and more.

Improve Regulatory Compliance According to CUNA’s 2012-2013 eScan,

the growing regulatory burden is the second largest issue concerning credit union CEOs. While expanding financial and staff resources to understand and implement regulatory changes may seem like the only option, there are many programs that help credit union leaders design strategic initiatives that allow them to manage exposures in accordance with risk tolerance in a more streamlined manner.

FAMU Federal Credit Union reduced unnecessary expenses and risk by implementing the LEVERAGE automated compliance solution, ComplyTrac. The credit union decided to utilize ComplyTrac because it provided easy access to the latest regulatory changes and allowed staff to promptly initiate the required changes in policy for review and approval by the board. It allowed the credit union to be more cost-effective and in compliance. Secondly, ComplyTrac allowed staff to be more diligent in addressing policies and meet the deadlines required from regulatory agencies.

Increase Non-Interest IncomeFinding new ways to generate non-interest

income remains a priority with special attention dedicated to avoiding overreliance on one source. LEVERAGE offers several programs that require little or no initial investment and provide

Financial Strategy Planning for 2014

“I am definitely a believer in the benefits and effectiveness of the ePurchasing process. Achieva has used ePurchasing events to buy hardware, software, and operational services, and we have saved more than 30 percent on operational costs. I won’t purchase another contract without it.”

LEVERAGE


Financial Strategy Planning for 2014

credit unions with an easy source for fee-based income.

Credit unions in Alabama and Florida earned more than $868,000 in additional non-interest income from the Sprint Member Discount Program. While many credit unions use their earned incentive check to increase their bottom line, others give it back to their community by donating it to their charity of choice. Either way, it’s a win all around. “The Sprint Program has become an added value on our list of additional services for our membership. This program has proven to be self-sufficient and hassle free.” Lyn Gills, VP of marketing, First Choice Credit Union.

Reduce ExpensesPressures to reduce costs and improve

spending continues to remain top-of-mind for credit unions. LEVERAGE helps credit unions gain operational cost efficiencies and achieve significant savings through a variety of programs.

For more than four years, LEVERAGE has offered ePurchasing services to credit unions that have collectively saved almost $2M. Members of the LEVERAGE ePurchasing Consortium consistently see an average of 20 percent savings on commodities from computer equipment to janitorial services to armored car services and more. Currently, there are 70 credit unions that have taken advantage of these time-and money-saving activities.

“I am definitely a believer in the benefits and effectiveness of the ePurchasing process. Achieva has used ePurchasing events to buy hardware, software, and operational services, and we have saved more than 30 percent on operational costs. I won’t purchase another contract without it.” Dennis Holthaus, CFO, Achieva Credit Union.

Be More Efficient“Credit unions must strive to be as efficient

and effective in their operations as possible. Evaluating work processes to add value and reduce inefficiencies will help credit unions improve performance and reduce operating costs” (2012-2013 CUNA eScan).

Attract and retain motivated, qualified employees; gain access to best-in-industry strategies to grow membership; and have all of the resources you need at your fingertips. LEVERAGE offers a variety of programs that help credit unions realize greater ROI and result in higher efficiency.

LEVERAGE continually monitors multiple industries for products and services that, if offered to our members, will help them be more efficient, grow, and reduce costs. Visit www.myleverage.com for a complete list of proven business solutions. Contact a LEVERAGE Business Development Representative for any questions about these solutions, [email protected]. n

Improve Regulatory Compliance n Automated Compliance Execution | Powered by ComplyTrac n Risk Assessment & Due Diligence | Powered by Ventelligence n Audit & Consulting | Powered by LEVERAGE Audit & Consulting

Increase Non-Interest Income n Member Discount Plan | Powered by Sprint n Gift Card Program | Powered by LEVERAGE Card Services n Member Auto Club | Powered by CU AutoClub n Member Protection Services | Powered by CUNA Mutual Group n Overdraft Privilege Program | Powered by John M. Floyd & Associates

Reduce Expenses n Strategic Buying Services | Powered by Ventelligence n Everyday Office Supplies & More | Powered by Office Depot n Remarketing | Powered by GE

Be More Efficient n Staffing Resources | Powered by LEVERAGE HR Services n Fixed Income Securities | Powered by Vining Sparks n Mobile Banking | Powered by CO-OP Financial Services n Mobile Lending | Powered by CUNA Mutual Group

LEVERAGE Products to Help Credit Unions:


DIRECTORY

LSCU DirectoryLEAGUE

22 Inverness Center Pkwy, Ste 200Birmingham, Alabama, 35242

3773 Commonwealth BlvdTallahassee, Florida 32303866.231.0545

AdministrationPatrick La Pine, x1002President & [email protected]

Jared Ross, x1012SVP, Association [email protected]

Kate Brady, x1060Executive Assistant to President/[email protected]

CommunicationsMike Bridges, x1022VP, [email protected]

Amy Jowers, x1020Director, Information [email protected]

Natalie Edwards, x1014Communications [email protected]

ComplianceBill Berg, x1028VP, Compliance Training & [email protected]

Scott Morris, x2165Director, Regulatory [email protected]

Cooperative InitiativesLaura Vann, x2181VP, Cooperative [email protected]

Adena Whitman, x2134Director, Member [email protected]

David LeNoir, x2158Member Relations [email protected]

April N. Ales, x1038Member Relations [email protected]

Judy Scott, x1062Member Relations [email protected]

Leonard Parkhurst, Jr., x1154Director, Southeastern CreditUnion [email protected]

EducationTeresa Gray, x2110Sr. Director, [email protected]

Julianne Talley, x1148Director, [email protected]

Brandy Norvell, x2172Events [email protected]

Becki Payne, x2129Association Services Support [email protected]

Governmental AffairsJennifer Martin, x1150Director, Legislative Affairs (FL)[email protected]

Andrew Gonzalez, x1010Grassroots & Political Action Coordinator (FL)[email protected]

Jordan Burroughs, x1008Governmental Affairs [email protected]

Jason Cochran, x2159Director, Governmental Affairs (AL)[email protected]

Blake Westbrook, x2164Grassroots & Political Action Coordinator (AL)[email protected]

Finance & AdministrationScott Morgan, x1110SVP, Finance & [email protected]

Tyrell Baker, x1136Director, Information [email protected]

David Hairston, x1132Network [email protected]

Debbie Caruthers, x1116Director, [email protected]

Angie Meisenheimer, x1114Senior [email protected]

Josh Booth, x1118Staff [email protected]

Mike Couey, x2136Accounting [email protected]

Susan Sungelo, x2153Staff [email protected]

Jason Neifield, x1142Director, Human [email protected]

Di Troch, x1054Operations [email protected]

David Todd, x1124Administrative Services [email protected]

CUSC of AlabamaTameka Dukes, x2178Director, Shared [email protected]

LEVERAGE

Marvin Garland, x1102EVP & [email protected]

Transactional ServicesJay Brady, x1106VP, Transactional [email protected]

Larry Rodriguez, x2169Sr. Director, Transactional [email protected]

Janice Jordan, x2176Director, Transactional [email protected]

Win Cooper, x2115Sr. Transactional Services [email protected]

Chris Dirmann, x1182Director, Card [email protected]

Robert Plant, x1194Member Services [email protected]

Linda Medina, x1200P/T Member Services [email protected]

Angela Harris, x1190Card Services [email protected]

Amy Bryant, x1196Sr. Member Services [email protected]

Gwen Davis, x1186Member Services [email protected]

Olu Dawodu, x1198P/T Member Services [email protected]

Audit & ConsultingKeith McMurtrie, x2133VP, Audit & Consulting [email protected]


Shani Montford-Smith, x2127LEVERAGE Support [email protected]

Melissa Hamner, x2139Senior [email protected]

Kathy Reynolds, [email protected]

Bonique Turner, [email protected]

Product Management Keith Hopkins, x1170VP, Product [email protected]

Brandt Vinson, x1044ePurchasing [email protected]

Kelli Silvernale, 866.949.6220Director, Vendor [email protected]

Karen Moran, 866.949.6220Sr. Contract Management [email protected]

Julie McCue, 866.949.6220Contract Management [email protected]

Jean Noel, x1188Due Diligence [email protected]

Rhea Oaks, x1146Contract Management [email protected]

Tori Shamy, x1172Product Manager, Merchant [email protected]

Deirdre Rhodes, x1104Product Support [email protected]

Anita Fumaria, x1140Director, HR [email protected]

Innovation & Business Development Kevin Lytle, x1120VP, Innovation & Business [email protected]

Brooke Collins, x1050LEVERAGE Support Services [email protected]

Jordan Sullivan, x2137Business [email protected]

Mary Elicia Del Santo, x1144Business Development [email protected]

Steve Pullara, x1164Business Development [email protected]

Michael Baswell, x2151Business Development [email protected]

April Banta, x1162Director, [email protected]

Detra White, x1156Production [email protected]

LEVERAGE PARTNERS

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

ComplyTracAutomated compliance solution that streamlines compliance procedures and reduces costs through procedural controls to meet compliance requirements on a single platform and helps effectively execute regulations through automated software.

Corporate Business SolutionsStreamline and enhance your payroll, benefits administration, and employee legal compliance processes by outsourcing to Corporate Business Solutions, a Professional Employer (PEO) and Administrative Services Organization (ASO)

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

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

CUNA Mutual GroupInsurance 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.

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

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

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

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

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

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

OneMain FinancialSolve out-of-area repossession needs with experts dedicated to providing the most up-to-date information including state laws, FDCPA laws and regulations, and the newest tracking software.

O’Rourke & AssociatesAn exclusive credit union focus on executive and management recruiting.

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

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

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

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

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

VINtekComplete 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 [email protected] or visit www.myleverage.com.

For information on partnership with LEVERAGE, contact a Product Development Consultant at [email protected].


SIGNAL MAGAZINE RETURN ADDRESS3773 COMMONWEALTH BOULEVARD TALLAHASSEE FL 32303

22 INVERNESS CENTER PARKWAY, #200BIRMINGHAM AL 35242

November 6-8, 2013 | Point Clear, AL | www.lsculeadership.com

2013 Leadership

LEADERSHIP:Guide people toward great

accomplishments

EDUCATION:Better your knowledge

to positively affect your operations

ACHIEVEMENT:Realize your goals

by expanding your expertise

DEVELOPMENT:Build your industry

relationships to cultivatehigher development

Development Conference

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Q3 2013 signal magazine web final

Documents