Gac%20briefing%20book web

Book

LSCU Special Events Sunday, February 24, 5:00 pm - 6:30 pm

Welcome Reception Hospitality Suite | Penn Quarter Room

Grand Hyatt Washington

Tuesday, February 26, 5:30 pm – 6:30 pm Presentation of Lawmaker of the Year Awards

Hospitality Suite | Penn Quarter Room Grand Hyatt Washington

2013 GAC Briefing Book

February 24, 2013

Dear CUNA GAC Attendee:

On behalf of the League of Southeastern Credit Unions (LSCU), I would like to welcome you to the 2013 CUNA Governmental Affairs Conference (GAC). This event is our industry’s premier federal advocacy gathering, and the dedication of credit union leaders, such as you, makes this important grassroots lobbying event possible.

The 2013 CUNA GAC offers a great line-up of speakers and events. Our General Session speakers include Speaker of the House John Boehner, House Financial Services Chairman Emeritus Spencer Bachus of AL, NCUA Chair Debbie Matz, plus notable speakers including former award-winning journalist Jean Chatzky, famed newsman Tom Brokaw, and a point/counterpoint featuring former Mississippi Governor Haley Barbour and former Democratic National Committee Chairman Terry McAuliffe.

In addition to the speakers, there are numerous break-out sessions on important and timely topics. The LSCU has arranged receptions for our attendees on Sunday and Tuesday evenings in the Penn Quarter Room of the Grand Hyatt Hotel. These events are a great opportunity to catch up with friends and colleagues, meet new ones, and network among credit union and system partners from our two states. Tuesday evening’s reception will feature Congressmen Jo Bonner (AL) and Bill Posey (FL) who will be receiving the 2012 LSCU Federal Lawmaker of the Year awards for their respective states. We hope you can join us for this great event.

Of course, the main event of the CUNA GAC will be the Hill meetings with members of our Congressional delegations. We have a number of important legislative issues facing Congress, including our fight to maintain the credit union tax exemption, working toward increased MBL authority, and legislation allowing credit unions to accept secondary capital, as well as several other important issues. These Hill meetings are a critical part of our advocacy efforts so I hope everyone plans on participating.

Please take some time to look through the enclosed material. It contains a schedule of events, information on our Hill visits, legislative issues briefing materials, and other information to help you get the most out of your CUNA GAC experience. The Hill visit schedules will be available during the receptions on Sunday and Tuesday evenings. I look forward to seeing all of you in Washington, D.C. Please do not hesitate to contact me or any of the Governmental Affairs team if we can help you with your time at the CUNA GAC.

Sincerely,

Patrick La Pine President/CEO

Convention

Information

2013 CUNA GAC Schedule

NOTE: All events listed are at the Washington Convention Center unless otherwise noted.

LSCU specific events are in bold.

Sunday, February 24, 2013

Noon - 8:30 pm Conference Registration and Welcome Center Open

2:00 - 3:00 pm First-time Attendee Orientation with Bill Cheney

3:00 - 5:00 pm Small Credit Union Roundtable (for credit unions under $50 million in

assets)

5:00 – 6:30 pm LSCU Welcome Reception – Penn Quarter Room, Grand Hyatt Hotel

7:00 - 9:00 pm Exhibit Hall Grand Opening Reception

9:00 - 10:30 pm Opening Concert with Abba the Concert Tribute Band

Monday, February 25, 2013

7:00 am - 4:15 pm Conference Registration and Welcome Center Open

7:30 - 9:00 am Exhibit Hall Open (continental breakfast)

9:00 - 11:30 am

Opening General Session

CUNA's Annual General Meeting

Keynote Presentation: Jean Chatzky

11:30 am - 1:30 pm Exhibit Hall Open (lunch provided)

1:30 - 4:00 pm General Session Legislative and Political Update

Keynote Presentation: Tom Brokaw

6:30 - 9:00 pm

The National Credit Union Foundation Dinner Presenting the Herb Wegner

Memorial Awards

(Grand Hyatt separate ticketed event; Reception begins at 5:30 p.m.)

Tuesday, February 26, 2012

7:00 am - 5:00 pm Conference Registration and Welcome Center Open

7:30 - 8:30 am Exhibit Hall Open (continental breakfast)

8:15 – 8:30 am

Meeting with Congresswoman Debbie Wasserman-Schultz

BACKSTAGE, UP STAIRS, AT THE CONVENTION CENTER (staff will be on

hand to direct. Congresswoman Wasserman-Schultz is scheduled to

speak immediately after.

8:30 am - Noon

General Session

Keynote Presentation: Point/Counterpoint with Haley Barbour v. Terry

McAuliffe

Noon - 1:45 pm Exhibit Hall Open (lunch provided)

2:00 – 2:30 pm Special General Session: Speaker of the House John Boehner

2:45 – 3:45 pm Breakout Sessions Taxation: A Two-Front War

The Hot Exam Issues for 2013

Coping with Debit Cards in a Post-Durbin World

Managing the Change in Lending Rules

The Economy in the Year Ahead: Boom, Steady or Sputter?

Telling the CU Story so the Media Pays Attention

4:00 – 5:00 pm

Breakout Sessions The 2012 MBL Fight: Lessons Learned

What’s Coming from the CFPB and NCUA on Consumer Protection

Obamacare: What Does it Mean for CUs?

Regulating Liquidity Risk

Building Powerful Alliances Across Co-op Sectors

A Primer on Supplemental Capital

5:00 – 6:00 pm National Credit Union Administration Reception

5:00 - 6:30 pm Exhibit Hall Closing Session

5:30 – 6:30 pm LSCU Attendee Reception Lawmaker of the Year Awards Presentation

Penn Quarter Room, Grand Hyatt Hotel

9:00 - 10:30 pm Late Night at the GAC (Renaissance Grand Ballroom)

Wednesday, February 27, 2013

8:00 am - Noon Conference Registration and Welcome Center Open

8:00 am – 5:00 pm Capitol Hill Visits as scheduled

8:30 - 11:45 am General Session

* speakers to be announced

5:00 - 6:30 pm Dora Maxwell, Louise Herring and Alphonse Desjardins Awards Reception

(by invitation at Renaissance)

7:00 - 11:00 pm Conference Gala Reception and Dance (Renaissance)

Thursday, February 28, 2013

9:00 am – 12:00 pm Capitol Hill Visits Continue as scheduled (if needed)

Travel Home Safely

Please join the League of Southeastern Credit Unions for two receptions welcoming you to Washington, D.C. for the CUNA Governmental Affairs Conference

Sunday February 24, 2013

5:30 – 6:30 PM Penn Quarter Room

Grand Hyatt

And

Tuesday February 26, 2013

5:30 – 6:30 PM Penn Quarter Room

Grand Hyatt

Tuesday’s reception we will be honoring the 2012 Federal Lawmakers of the Year

**Hill visit schedules will be available at the receptions**

Congressman Jo Bonner (AL – 1)

Congressman Bill Posey (FL – 8)

2013 CUNA GAC On Site Contact Information

Patrick La Pine Jared Ross CEO Vice President, Governmental Affairs (850) 212-3160 (Mobile) (850) 590-6570 (Mobile) [email protected] [email protected]

Jennifer Martin Jason Cochran Director of Legislative Affairs, FL Director of Governmental Affairs, AL (850) 321-2865 (Mobile) (205) 249-4478 (Mobile) [email protected] [email protected]

Andy Gonzalez Blake Westbrook PAC & Grassroots Coordinator – FL PAC & Grassroots Coordinator – AL (850) 345-7795 (205) 834-1266 [email protected] [email protected]

Credit Union National Association Grand Hyatt Washington 601 Pennsylvania Ave NW, South Bldg 1000 H Street, NW Washington DC 20004-2601 Washington, DC 20001 Main: (202) 638-5777 Phone: (202) 582-1234 Fax: (202) 638-7734 Fax: (202) 637-4781

League of Southeastern Credit Unions & Affiliates

2013 Alabama Attendees

Alvis, Jo Assistant Manager/COO Acipco FCU Birmingham AL

Bass, Bill Director APCO ECU BIRMINGHAM AL

Bell, Kayce Chief Operations Officer Alabama CU Tuscaloosa AL

Boysen, Jane President/CEO Alabama Rural Electric CU Montgomery AL

Brackin, Chuck Supervisory Committee Army Aviation Center FCU Daleville AL

Burns, Wally Director Family Savings CU Gadsden AL

Chancellor, Billy SVP-Collections/Lending Alabama Telco CU Birmingham AL

Cochran, Jason Director-Governmental Affairs League of Southeastern CUs Birmingham AL

Cunningham, Freida Branch Manager Family Savings CU Gadsden AL

Davis, Mickey Director Army Aviation Center FCU Daleville AL

Fike, Ivan VP-Information Technology Listerhill CU Muscle Shoals AL

Forte, Linda Director DCH CU Tuscaloosa AL

Green, Brad Pres/CEO/CUNA Director Listerhill CU Sheffield AL

Hester, Larry Director Listerhill CU Muscle Shoals AL

Hill, Monte President/CEO Family Savings CU Gadsden AL

Jenkins, David Compliance Officer Family Savings FCU Gadsden AL

Jones, Gladys Board Chair Alabama CU Tuscaloosa AL

Jones, Kelley Marketing Coordinator Alabama CU Tuscaloosa AL

La Pine, Patrick President/CEO League of Southeastern CUs Tallahassee FL

Letson, Frankie Director-Branch Operations Family Savings FCU Gadsden AL

Mashburn, Kristen Director of Marketing Listerhill CU Muscle Shoals AL

McGee, Joe President/CEO Legacy Community FCU Birmingham AL

McGlaughn, Jamie AVP-Business Services Alabama Teachers CU Gadsden AL

McLeroy, Ron Director Rocket City FCU Huntsville AL

Northrup, Michael VP-Information Technology America's First FCU Birmingham AL

Ragland Jr, Derrick Vice President APCO ECU BIRMINGHAM AL

Stabler, Alan VP-Legal Counsel America's First FCU Birmingham AL

Steele, Parker Staff Attorney/General Counsel Alabama Telco CU Birmingham AL

Steensma, Bob President/CEO Five Star CU Dothan AL

Swofford, Steve President/CEO Alabama CU Tuscaloosa AL

Thomas, Michael Vice President America's First FCU Birmingham AL

Varnon, Danny Executive Vice President Family Savings FCU Gadsden AL

Walker, Linda Manager Riverdale CU Selma AL

Wilkinson, Mark Director APCO ECU BIRMINGHAM AL

Williams, Tina President Mobile Educators CU Mobile AL

Wolter, Gary Former CEO/CMG Board of Trustees League of Southeastern CUs Birmingham AL

2013 Florida Attendees

Adkins, Darrell Director Suncoast Schools FCU Tampa FL

Baldwin, Tim President San Antonio Citizens FCU San Antonio FL

Barwick, Annette Director Suncoast Schools FCU Tampa FL

Bass, Rose Marie Director GTE Financial Tampa FL

Beskovoyne, Bob President/CEO Martin FCU Orlando FL

Boyle, Bill Supervisory Committee Chair IBM Southeast EFCU Boca Raton FL

Braddock, Bill President/CEO 121 Financial CU Jacksonville FL

Brancucci, Joe President/CEO GTE Financial Tampa FL

Bresko, Aaron SVP/CLO GTE Financial Tampa FL

Brock, David CEO/President Community Credit Union of Florida Rockledge FL

Burrell, Bonnie Board Chair Dade County FCU Doral FL

Cappelli, Laurie Sr Vice President Community Credit Union of Florida Rockledge FL

Chevere, Frankie Director Pompano Beach City ECU Pompano Beach FL

Cihota, John Director Pen Air FCU Pensacola FL

Clanton, Eddie Director 121 Financial CU Jacksonville FL

Coarsey, Marsha Director Community First Credit Union Jacksonville FL

Coffey, John SVP-Risk Management Fairwinds CU Orlando FL

Darling, Linda SVP/COO Suncoast Schools FCU Tampa FL

Davis, Ken VP-Lending Pen Air FCU Pensacola FL

deLassus, Cindy Board Treasurer 121 Financial CU Jacksonville FL

Dial, Debbi SVP Technology/COO Tyndall Federal Credit Union Panama City FL

Dietz, Ashley Marketing Coordinator City County CU Margate FL

Dooley, Lesli VP-Organizational Development Community Credit Union of Florida Rockledge FL

Dougherty, Kevin Sr Vice President CFE FCU Lake Mary FL

Fisher, Bob President/CEO Grow Financial FCU Tampa FL

Flynn, Pete Supervisory Committee Suncoast Schools FCU Tampa FL

Garcia, Laida Pres/CEO/CUNA Director Floridacentral CU Tampa FL

Garcia, Mario Director Dade County FCU Doral FL

Garland, Marvin EVP/COO League of Southeastern CUs Tallahassee FL

Gipson, Bob Director 121 Financial CU Jacksonville FL

Golub, Larry Director CFE FCU Lake Mary FL

Gonzalez, Andy Grassroots/Political Action Coordinator

League of Southeastern CUs Tallahassee FL

Goodwin, Kelly Director Orlando FCU Orlando FL

Greene, Errol Board 1st Vice Chair CFE FCU Lake Mary FL

Greenlief, Billie Board Chair 121 Financial CU Jacksonville FL

Halliburton, Sherod Executive Vice President Manatee Community FCU Bradenton FL

Harvin, Moses Audit Committee Community Credit Union of Florida Rockledge FL

Hasenbeck, Margaret

VP-Accounting/Finance Community Credit Union of Florida Rockledge FL

Hennessey, Bill Director Brightstar Credit Sunrise FL

Hewitt, Ted Board Chair VyStar Credit Union Jacksonville FL

Hill, David VP-Technology Community Credit Union of Florida Rockledge FL

Hines, Brad Board Chair GTE Financial Tampa FL

Hirabayashi, John President/CEO Community First Credit Union Jacksonville FL

Howard Jr, Willie Director Space Coast Credit Union Melbourne FL

Huskey, Dr Gary Director Suncoast Schools FCU Tampa FL

Johnson, Kevin SVP-IT/CIO Suncoast Schools FCU Tampa FL

Johnson, Maurice Board Chair Pen Air FCU Pensacola FL

Joseph, George President/CEO Dade County FCU Doral FL

Kelley, Jack Board Chair Community Credit Union of Florida Rockledge FL

Lister, Brent Pres/CEO/League Board Treasurer

First Florida Credit Union Jacksonville FL

Marsh, Pat Director Suncoast Schools FCU Tampa FL

Martin, Jennifer Director-Legislative Affairs League of Southeastern CUs Tallahassee FL

Maughon, Jerry President/CEO Okaloosa County Teachers FCU Crestview FL

McCall, Ann Board Secretary Pen Air FCU Pensacola FL

Melbourne Jr, Joe President/CEO CFE FCU Lake Mary FL

Metcalf, Chick Board Chair Orlando FCU Orlando FL

Miller, Kevin SVP-General Counsel CFE FCU Lake Mary FL

Moody, Penny VP-Administration Pen Air FCU Pensacola FL

Myers, Larry Director VyStar Credit Union Jacksonville FL

Neusaenger, John President/CEO Orlando FCU Orlando FL

Ode, Zamir Supervisory Committee Suncoast Schools FCU Tampa FL

Orr, Dr Dorothy Board Chair Brightstar Credit Sunrise FL

Ott Wood, Mary President/CEO Florida West Coast CU Brandon FL

Pedrero, Velia Director Suncoast Schools FCU Tampa FL

Petree, Betty Board Vice Chair Pen Air FCU Pensacola FL

Pickett Jr., Leonard Director 121 Financial CU Jacksonville FL

Prior, Henry Director City County CU Margate FL

Prosser, Anice Chief Administrative Officer Envision CU Tallahassee FL

Ramsey, Stewart President/CEO Pen Air FCU Pensacola FL

Renderos, Julie EVP/CFO Suncoast Schools FCU Tampa FL

Reyes, Jace President/CEO Miami Postal Service CU Miami FL

Ross, Jared VP-Governmental Affairs League of Southeastern CUs Tallahassee FL

Sarne, Patty SVP/COO San Antonio Citizens FCU San Antonio FL

Satchel, Tony Director Suncoast Schools FCU Tampa FL

Shutes, Aletta Director Focus Credit Union Chattahoochee FL

Sorenson, Jim Attorney Community First CU Jacksonville FL

Storck, Meghan Business Development Specialist First Florida Credit Union Jacksonville FL

Strickland, Ann Board Secretary Miami Postal Service CU Miami FL

Thompson, Vickie Director GTE Financial Tampa FL

Tischer, Phil SVP/COO Fairwinds CU Orlando FL

Tobin, Larry President/CEO Fairwinds CU Orlando FL

Trumbach, Joe Board Chair Suncoast Schools FCU Tampa FL

Turner, Dr Susan Director Suncoast Schools FCU Tampa FL

Upperco Jr, John Board Chair Martin FCU Orlando FL

Vien, Gary SVP-HR/Development Suncoast Schools FCU Tampa FL

Walz, Judy SVP-Marketing/Planning VyStar Credit Union Jacksonville FL

Webster, Tina Executive Secretary Community Credit Union of Florida Rockledge FL

West, Terry President/CEO VyStar Credit Union Jacksonville FL

Westbrook, Blake Grassroots/Political Action Coordinator

League of Southeastern CUs Tallahassee FL

Whitlock, Dr Earl Board Chair Suncoast Schools FCU Tampa FL

Wilkinson, Annie Executive Vice President Dade County FCU Doral FL

Williams, Palmer Attorney Community First CU Jacksonville FL

Wood III, Art President/CEO Railroad and Industrial FCU Tampa FL

Yatros, Michael Chief Executive Officer Florida Credit Union Shared Services Inc

Tallahassee FL

Zells, John EVP/CMO IBM Southeast EFCU Boca Raton FL

Alabama Key Congressional Staff Senator Jeff Sessions 335 Russell Senate Office Building Washington, DC 20510 (202) 224-4124

Chief of Staff: Rick Dearborn Legislative Director: Sandra Luss Financial Inst. Staffer: Graham Hixon Scheduler: Kate Hollis

Senator Richard Shelby 304 Russell Senate Office Building Washington, DC 20510 (202) 224-5744

Chief of Staff: Alan Hanson Legislative Director: Kevin Kane Financial Inst. Staffer: Andrew Newton (on Committee Staff) Scheduler: Anne Caldwell

District 1 – Congressman Jo Bonner 2236 Rayburn House Office Building Washington DC 20515 (202) 225-4931

Chief of Staff: Alan Spencer Legislative Director: Mike Sharp Financial Inst. Staffer: Mike Sharp Scheduler: Errical Bryant

District 2 – Congresswoman Martha Roby 414 Cannon House Office Building Washington, DC 20515 (202) 225-2901

Chief of Staff: Stephen Boyd Legislative Director: Jennifer Warren Financial Inst. Staffer: Frank Barnett Scheduler: Jessica Fuller

District 3 – Congressman Mike Rogers 324 Cannon Office Building Washington DC 20515 (202) 225-3261

Chief of Staff: Marshall Macomber Legislative Director: Whitney Verett Financial Inst. Staffer : Forrest McConnell Scheduler: Jessica Jennings

District 4 – Congressman Robert Aderholt 2264 Rayburn House Office Building Washington, DC 20515 (202) 225-4876

Chief of Staff: Brian Bell Legislative Director: Mark Dawson Financial Inst. Staffer: Megan Medley Scheduler: Stephanie Brown

District 5 – Congressman Mo Brooks 1641 Longworth House Office Building Washington, DC 20515 (202) 225-4801

Chief of Staff: Mark Pettitt Legislative Director: Stephen Davis Financial Inst. Staffer: Lauren Vandiver Scheduler: Kelly Zams

District 6 – Congressman Spencer Bachus 2246 Rayburn House Office Building Washington, DC 20515 (202) 225-4921

Chief of Staff: Michael Staley (Personal Office) Legislative Director: Philip Swartzfager Financial Inst. Staffer: Warren Tryon, Jim Clinger (Handled through Multiple

Committee Staff) Scheduler: Brett Williams

District 7 – Congresswoman Terri Sewell 1133 Longworth House Office Building Washington, DC 20515 (202) 225-2665

Chief of Staff: Nichole Reynolds Legislative Director: Matt Reel Financial Inst. Staffer: Cachavious English Scheduler: Amanda Barnett

Florida Key Congressional Staff Senator Marco Rubio 317 Hart Senate Office Building Washington, DC 20510 (202) 224-3041

Chief of Staff: Cesar Conda Legislative Director: Sally Canfield Financial Inst. Staffer: Scott Parkinson Scheduler: Robert Daniels

Senator Bill Nelson 716 Hart Senate Office Building Washington DC 20510 (202) 224-5274

Chief of Staff: Pete Mitchell Legislative Director: Suzie Perez-Quinn Financial Inst. Staffer: Clint Odom Scheduler: Alicia Tighe

District 1 – Congressman Jeff Miller 2416 Rayburn House Office Building Washington, DC 20515 (202) 225-4136

Chief of Staff: Dan McFaul Legislative Director: Diane Cihota Financial Inst. Staffer: Gilbert Nelson/Jim Parslow Scheduler: Jessica Sunday

District 2 – Congressman Steve Southerland 1229 Longworth House Office Building Washington, DC 20515 (202) 225-5235

Chief of Staff: Jonathan Hayes Legislative Director: Karen Williams Financial Inst. Staffer: Karen Williams Scheduler: Kathryn Whitehurst

District 3 – Congressman Ted Yoho 511 Cannon House Office Building Washington, DC 20515 (202) 225-5744 Chief of Staff: Kat Cammack Legislative Director: Omar Raschid Financial Inst. Staffer: Vacant Scheduler: Rachel King

District 4 – Congressman Ander Crenshaw 440 Cannon Washington, DC 20515 (202) 225-2501

Chief of Staff: John Ariale Legislative Director: Erika Stiebel Priest Financial Inst. Staffer: Jennifer Debes Scheduler: Lynn Miller

District 5 – Congresswoman Corrine Brown 2336 Rayburn House Office Building Washington, DC 20515 (202) 225-0123

Chief of Staff: Ronnie Simmons Legislative Director: Nick Martinelli Financial Inst. Staffer: Lee Footer Scheduler: Cathy Gass

District 6 – Congressman Ron DeSantis 427 Cannon House Office Building Washington, DC 20515 (202) 225-2706

Chief of Staff: Justin Roth Legislative Director: Rachel Dresen Financial Inst. Staffer: Vacant Scheduler: Shira Lahav

District 7 – Congressman John Mica 2187 Rayburn House Office Building Washington, DC 20515 (202) 225-4035

Chief of Staff: Wiley Deck Legislative Director: Brian Waldrip Financial Inst. Staffer: Kevan Stone Scheduler: Mary Klappa

District 8 – Congressman Bill Posey 120 Cannon House Office Building Washington, DC 20515 (202) 225-3671

Chief of Staff: Stuart Burns Legislative Director: Marcus Brubaker Financial Inst. Staffer: Nicole McCleary Scheduler: Tim Convy

District 9 – Congressman Alan Grayson 430 Cannon House Office Building District of Columbia 20515 (202) 225-9889

Chief of Staff: Julie Tagen Legislative Director: David Bagby Financial Inst. Staffer: Vacant Scheduler: Carla Coleman

District 10 – Congressman Daniel Webster 1039 Longworth House Office Building Washington, DC 20515 (202) 225-2176

Chief of Staff: Vacant Legislative Director: Frank Walker Financial Inst. Staffer: Elizabeth Kimball Scheduler: Elizabeth Tyrrell

District 11 – Congressman Richard Nugent 1727 Longworth House Office Building Washington, DC 20515 (202) 2251002

Chief of Staff: Justin Grabelle Legislative Director: Katharine Troller Financial Inst. Staffer: Laura Cooper Scheduler: Rose Myers

District 12 – Congressman Gus Bilirakis 2313 Rayburn House Office Building Washington, DC 20515 (202) 225-5755

Chief of Staff: David Peluso Legislative Director: Richard Hoar Financial Inst. Staffer: Richard Hoar Scheduler: Brian Prokes

District 13 – Congressman Bill Young 2407 Rayburn House Office Building Washington, DC 20515 (202) 225-5961

Chief of Staff: Harry Glenn Legislative Director: Brad Stine Financial Inst. Staffer: Matthew Dickerson Scheduler: Christina Burmeister

District 14 – Congresswoman Kathy Castor 205 Cannon House Office Building Washington, DC 20515 (202) 225-3376

Chief of Staff: Clay Phillips Legislative Director: Elizabeth Brown Financial Inst. Staffer: Elizabeth Brown Scheduler: Lara Hopkins

District 15 – Congressman Dennis Ross 229 Cannon House Office Building Washington, DC 20515 (202) 225-1252

Chief of Staff: Anthony Fotie Legislative Director: Amie Woeber Financial Inst. Staffer: Amie Woeber Scheduler: Courtney Clem

District 16 – Congressman Vern Buchanan 2014 Rayburn House Office Building Washington, DC 20515 (202) 225-5015

Chief of Staff: Dave Karvelas Legislative Director: Shane Lieberman Financial Inst. Staffer: TJ Tatum Scheduler: Christina Aiuto

District 17 – Congressman Tom Rooney 221 Cannon House Office Building Washington, DC 20515 (202) 225-5792

Chief of Staff: Brian Crawford Legislative Director: Jessica Moore Financial Inst. Staffer: Drew Shoemaker Scheduler: Michele Reinshuttle

District 18 – Congressman Patrick Rooney 1517 Rayburn House Office Building Washington, DC 20515 (202) 225-2536

Chief of Staff: Eric Johnson Legislative Director: Christopher Fisher Financial Inst. Staffer: Vacant Scheduler: Tia Thompson

District 19 – Congressman Trey Radel 1123 Longworth House Office Building Washington, DC 20515 (202) 225-2536

Chief of Staff: Jason Moon Legislative Director: Abby Dosoretz Financial Inst. Staffer: Greg Doaln Scheduler: Faye Powers

District 20 – Congressman Alcee Hastings 2353 Rayburn House Office Building Washington, DC 20515 (202) 225-1313

Chief of Staff: Lale Mamaux Legislative Director: Vacant Financial Inst. Staffer: Vacant Scheduler: Barbara Harper

District 21 – Congressman Ted Deutch 1024 Longworth House Office Building Washington, DC 20515 (202) 225-3001

Chief of Staff: Joshua Rogin Legislative Director: Ellen McLaren Financial Inst. Staffer: Joshua Lipman Scheduler: Alex Rocha

District 22 – Congresswoman Lois Frankel 1037 Longworth House Office Building Washington, DC 20515 (202) 225-4506

Chief of Staff: Jonathan Bray Legislative Director: James Cho Financial Inst. Staffer: Vacant Scheduler: Toby Watkins: Catherine Regan

District 23 – Congresswoman Debbie Wasserman-Shultz 118 Cannon House Office Building Washington, DC 20515 (202) 225-7931

Chief of Staff: Tracie Pough Legislative Director: Coby Dolan Financial Inst. Staffer: Ian Rayder Scheduler: Hannah Lerner

District 24 – Congresswoman Fredrica Wilson 208 Cannon House Office Building Washington, DC 20515 (202) 225-4506

Chief of Staff: Tom McDaniels Legislative Director: Justin Zorn Financial Inst. Staffer: Justin Zorn Scheduler: Toby Watkins: Toby Watkins

District 25 – Congressman Mario Diaz-Balart 436 Cannon House Office Building Washington, DC 20515 (202) 225-4211

Chief of Staff: Cesar Gonzalez Legislative Director: Miguel Mendoza Financial Inst. Staffer: Ryan Canfield Scheduler: Kelly Dernnon

District 26 – Congressman Joe Garcia 1440 Longworth House Office Building Washington, DC 20515 (202) 225-2778

Chief of Staff: Jeffrey Garcia Legislative Director: David Montes Financial Inst. Staffer: Vacant Scheduler: Vacant

District 27 – Congresswoman Ileana Ros-Lehtinen 2206 Rayburn House Office Building Washington, DC 20515 (202) 225-3931

Chief of Staff: Art Estopinan Legislative Director: Joshua Salpeter Financial Inst. Staffer: Jay O’Calahaughn Scheduler: Christine Del Portillo

Cont

act L

SCU

Dire

ctor

, Leg

isla

tive

Affa

irs (F

L) J

enni

fer M

artin

at 8

66.2

31.0

545

ext.

1150

or

Dire

ctor

, Gov

ernm

enta

l Affa

irs (A

L) J

ason

Coc

hran

at e

xt. 2

159.

Regi

ster

at w

ww

.lscu

.coo

p/Ed

ucat

ion/

Even

ts-C

alen

dar

CCCCoCCnt

act L

SCU

D

April

9 - 1

0, 2

013

Tues

day

- Wed

nesd

ayEm

bass

y Su

ites

Hote

l - M

ontg

omer

y, AL

Ala

ba

ma

Sta

te G

AC

Mar

ch 1

9 - 2

0, 2

013

Tues

day

- Wed

nesd

ayGo

vern

ors

Club

- Ta

llaha

ssee

, FL

Flo

rid

a S

tate

GA

C

Lea

gu

e o

f So

uth

ea

ste

rn

Cre

dit

Un

ion

s &

Aff

iliate

s

Please return this form to Jordan Burroughs at [email protected] or fax to 850-558-1109.

Key Contact Form

There are thousands of industries, advocacy groups, lobbyists, and political operatives all vying for attention from lawmakers and candidates. All make contact at some level and most contribute to their campaigns. The industries and groups that truly distinguish themselves and become of key importance to a lawmaker or candidate are the ones that have developed a relationship. There are multiple levels of the “Sphere of Influence” that individuals may have with lawmakers. It ranges from the bottom, those who don’t even vote, to the top level which is comprised of the lawmakers personal inner-circle; his family and personal friends. Within your credit union you, someone on your staff or your Board of Directors, may already have someone who has a personal relationship with an elected official. By gathering this information, the League will be able to be even more effective in our lobbying efforts.

Name:

Credit Union:

Email/Phone:

Lawmaker’s Name:

How do you know your lawmaker? (church, school, golf, etc.)

How do you contact your lawmaker? (via email, cell phone, home phone, office phone, etc.)

Are you willing to serve as a key contact person for LSCU? Y N

Hill Meeting

Briefing Materials

Prepared by CUNA Legislative Affairs

HIKE THE HILL CONGRESSIONAL MEETING OUTLINE

About Credit Unions

Credit unions are the best way for consumers to conduct their financial services, yet continue to face the crisis of

creeping complexity with regards to increasing regulatory burdens.

Credit unions benefit everyone –whether a member of a credit union or not.

Credit union members save over $6 billion each year by doing business with their credit union as opposed to

a bank, through lower fees and interest rates and higher returns on deposits. Bank customers benefit, as well,

to the tune of $2 billion because credit unions are in the marketplace. This means that as a result of credit

unions existing in the United States, consumers save over $8 billion each year.

The not-for-profit credit union governance model relies on one member, one vote. Unlike banks, credit

unions exist to serve their members, not investors.

Credit unions weathered the financial crisis well, but are now challenged by statutory restrictions, regulatory

burdens and inconsistent examination practices.

o A statutory cap on business lending means that $13 billion that could be loaned to small businesses

sits idle.

o A restrictive capital definition limits a credit union’s ability to weather an unexpected influx in

deposits and to build capital for tough times.

o 19 regulations have been transferred from various Federal agencies to the CFPB; and, the number of

rules the CFPB could promulgate may be much higher as a result of the Dodd-Frank Act and other

regulatory requirements.

o In addition, NCUA has six proposals pending which include: loan participations, troubled debt

restructurings, CUSOs, liquidity, RegFlex, and derivatives.

Credit Union Value Proposition

There is no hiding the fact that the Federal government faces a significant budget crisis and that tax reform is on the

horizon. While in your meetings you may be faced with staffers that do not understand the need for our tax

exemption status. It is important to relay these following facts.

Credit unions are exempt from Federal and most State income taxes because they are member-owned,

democratically operated, not-for-profit cooperatives, generally managed by volunteer boards of directors

with a specified mission of promoting thrift and providing access to credit for provident purposes. This

rationale for the tax-exempt status has been reaffirmed by Congress several times since 1937.

Credit unions already contribute by paying other types of taxes.

o Credit union members pay taxes on dividends (interest) that their accounts earn.

o Federal credit unions pay:

Real property taxes

Tangible personal property taxes (referred to as “ad valorem” taxes in some states)

Payroll taxes for their employees, and UBIT (unrelated business income tax).

Eliminating the credit union tax status eliminates credit unions. It is that simple.

If credit unions are taxed, there is no incentive for credit unions to remain not-for-profit; the large credit

unions would likely convert to banks; the small credit unions would likely liquidate; and our economy will

lose the only sector of the financial industry that is not driven by profit, but rather driven by a dedication to

serving its members.


Regulatory Burden

Regulatory burden is something that every financial institution faces. The burden of complying with ever-changing

and ever-increasing regulatory requirements is particularly onerous for smaller institutions like credit unions.

Most of the costs of compliance do not vary by size, and therefore proportionately are a much greater burden

for smaller as opposed to larger institutions.

Regulatory burden is of particular significance to credit unions.

o Approximately 1,000 credit unions operate with one or fewer full time equivalent employees.

o Nearly one-half of the nation’s 7,200 credit unions operate with five or fewer full-time equivalent

employees.

Every dollar a credit union spends on complying with regulation is a dollar that is not used for the benefit of

its members.

The CFPB has a number of rulemakings in progress which are mostly required by the Dodd-Frank Act.

These rules cover issues ranging from mortgage loan disclosures, fees and practices; mortgage loan

originator compensation; and international remittance transfers.

Credit unions did not cause the financial crisis and therefore should not be forced with the same crippling

burden of new regulations as the banks who did.

Examination Fairness

Credit unions strongly support fair and appropriate safety and soundness regulation and oversight to protect

the financial resources of credit unions and their members and to minimize costs to the National Credit

Union Share Insurance Fund (NCUSIF) borne by all federally insured credit unions.

Credit unions, as a whole, have concerns about the exam process. These include exam findings that are not

currently codified in law, but rather on examiner preference.

o [Please share your experiences with exams in your meetings to help members of Congress

understand how the issue affects your credit unions.]

During the 112th Congress, Representatives Shelley Moore Capito (R-WV) and Carolyn Maloney (D-NY)

introduced H.R. 346/S. 2160, the Financial Institution Examination Fairness and Reform Act. The bill

would make available to financial institutions the information used to make decisions in their examination;

codify certain examination policy guidance; establish an ombudsman at the Federal Financial Institution

Examination Council (FFIEC) to which financial institutions could raise concerns with respect to their

examination; and, establish an appeals process before an independent administrative law judge.

CUNA strongly supported H.R. 3461/S. 2160 and, while it is not a perfect piece of legislation, we viewed it

as a firm step in the right direction toward ensuring the federal financial institution regulatory agencies

(regulators) conduct fair exams which are consistent with the law and regulation and ensure safety and

soundness.

Streamlining Privacy Notifications

Every year credit unions are required to send millions of privacy notices to their members, most of which go unread

and even unopened. Streamlining this ineffective regulation will reduce the amount of diverted time and resources

that a credit union’s staff could be using for more important services to its members.

Please cosponsor the Eliminate Privacy Notice Confusion Act when it is introduced in the House, and urge

support for the introduction of a companion bill in the Senate. This legislation has passed the House

unanimously in each of the two previous Congresses.

Since 2001, credit unions have sent over 1 billion privacy notices to their members, averaging over

87,000,000 notices a year.

Credit unions must strictly follow an ever increasing number of rules and regulations. As a result,

streamlining outdated or burdensome regulations is a very important aspect in providing regulatory relief.

Eliminating unnecessary mailings reinforces the emphasis credit unions place on ensuring their members are

not bombarded with a flood of unnecessary mail – while ensuring at the same time the mail that members do

receive is given greater attention.


Housing Finance Reform

As Congress considers comprehensive housing finance reform, credit unions must continue to have access to the

secondary mortgage market.

Credit unions have traditionally been portfolio lenders, typically selling approximately 45% of their

originations. Credit unions rely on a functioning secondary mortgage market.

Over the last two years, credit unions have sold over half of their new loans to the secondary market.

The federal government has a very important role to ensure the secondary market operates efficiently,

effectively and fairly for borrowers and lenders alike.

Credit unions have serious concerns about a world in which the secondary mortgage market is occupied by a

handful of very large banks.

CUNA has testified as to principles important to consider in any comprehensive housing finance proposals and they

include:

Equal Access: The secondary market must be open to lenders of all sizes on an equitable basis.

Strong Oversight and Supervision: There should be appropriate regulatory oversight to ensure safety and

soundness, including strong capital requirements.

Durability: The new system should ensure that mortgage loans will continue to be made to qualified

borrowers even in troubled economic times.

Predictable and Affordable Payments: The new system must include consumer access to products that

provide for predictable, affordable mortgage payments to qualified borrowers.

Affordable Housing: The important role of government support for affordable housing should be a function

separate from the responsibility of secondary market entities.

Transition: The transition to the new housing finance system must be reasonable and orderly.

Supplemental Capital

Capital is king for financial institutions. As we learned in the financial crisis, it is in everyone’s interest for financial

institutions to be well capitalized and to have access to capital. For credit unions, the only type of capital that counts

is retained earnings. While credit unions remain healthy and well capitalized, the importance of having

supplemental forms of capital available to credit unions has taken on increased importance.

Supplemental capital is a safety and soundness tool that acts as a buffer to absorb operating losses and asset

write-downs during economic downturns.

Under current law, the more deposits a credit union accepts, the more its capital ratio declines. When capital

ratios decline, credit unions could face prompt corrective action by their regulator, which is set out in statute,

not regulation.

As more consumers leave other financial intuitions in favor of credit unions, some credit unions have had to

turn away depositors as a direct result of this statutory effect.

This legislation would allow well-capitalized local and community-based credit unions to receive

supplemental capital so they may continue to meet the needs of their growing membership.

Access to supplemental capital would be particularly useful as credit unions rebuild capital ratios following

the worst financial crisis and recession of the past 80 years.

Representatives Peter King (R-NY) and Brad Sherman (D-CA) introduced legislation in the 112th Congress

to allow credit unions to achieve supplemental capital in a manner that would not alter the cooperative nature

of the credit union (e.g., by providing voting rights).


Credit Union Small Business Jobs Bill

Enacting the Credit Union Small Business Jobs Bill is about helping small businesses.

Credit unions could lend up to $13 billion in the first year if the MBL cap was raised, helping America’s

small businesses create over 140,000 new jobs. This is economic stimulus that does not cost the taxpayers a

dime and does not increase the size of government.

Credit unions have been lending to their business-owning members for a century. In fact, there was no

member business lending cap prior to 1998.

Credit unions have a more sound track record when it comes to business loans.

With a national loan average of $212,000 credit unions specialize in the type of loans small businesses need.

Banks have reduced lending to small businesses while credit unions have expanded credit to businesses.

We know the banks oppose this and that Congress doesn’t want to choose between friends – but Congress

helped the banks already by making $30 billion of taxpayer funds available to help small businesses.

They’ve had their chance.

Straight tO thE POiNt

CREDIT UNIONS:

CREDIT UNIONS ARE THE BEST OPTION FOR CONSUMERS TO CONDUCT THEIR

FINANCIAL SERVICES

Members save big at credit unions because they have consumer-friendly pricing.

Ê Member owned Ê Not-for-Profit Ê Locally run Ê Earnings returned to members in the form of lower interest on loans & higher interest earned

Ê Consumer-friendly pricing Ê Money stays in the community

THE BENEFITS OFUSING A CREDIT UNION:

New Car: $30,000/5-Yr term

Source: CUNA & Informa Research Services. Annual savings calculated as the difference in total annual payments using interest rate averages at each type of institution. Data as of 12/14/10

Consumers Save Big At Credit Unions Average Annual Savings on Credit Union Loan Products

Compared to Identical Products at Banking Institutions

$276.81

$129.00

$180.95

$73.28

$31.34

Used Car: $20,000/4-Yr term

Platinum Credit Card: $10,000

Home Equity: $50,000/80% LTV/

15-Yr Term

Unsecured Personal Loan: $5,000/4-Yr.

Term

Banks

Credit Unions

5-Yr New AutoReward Credit Cards Home Equity 15 Yr

Source: Informa Research Services. Data as of Dec. 14, 2010

Credit Unions: Consumer Friendly Pricing Loan Interest Rate Averages

6.90%

6.05%5.89%

4.39%

4.27%

12.01%

4-Yr Used Auto

10.94%

6.68%

10.23%

12.25%

48 Month Personal

Credit unions were there to help consumers during the financial crisis.

CREDIT UNIONS:A WHOLE NEW WAY TO 'BANK'

Ê Financially safe & sound Ê History of careful lending Ê Continued to serve their communities and lend money when other financial institutions would not

Ê Reflect strong capital ratios Ê Economically sound

Banks

Credit Unions

Real Estate Loans Business Loans Total Loans

Source: FDIC, NCUA & CUNA E&S

Credit Unions Have Continued to Serve Borrowers As Other Lenders Pulled Back

Growth Since Beginning of Recession: 12/07 to 9/10

-10.0%

-18.4%

-6.5%

14.4%

39.2%

7.6%

Banks

Credit Unions

Mortgage Loans

Business Loans

Total Loans

Source: FDIC, NCUA & CUNA E&S

Credit Unions Are Careful Lenders Annualized Loan Losses as of September 2010

1.83%

0.64%

1.15%

0.65%

1.76%

2.59%

Consumer Loans

1.92%

6.42%

4 'BANK' SMARTER!

Membership - Nearly 92 million U.S. consumers are member-owners of, and receive all or part of their financial services from the nation's 7,598 credit unions.

Consumers trust credit unions because they know credit unions are the real deal!

Structure - Credit unions are democratically owned and controlled institutions that have no outside stock-holders. After reserves are set aside, earnings are returned to members in the form of dividends on sav-ings, lower loan rates and fees, or additional services.

Credit Unions are insured - Consumer deposits at nearly all credit unions are federally insured by NCUA and credit unions have their own share-insurance fund.

Source: Datatrac, NCUA, and CUNA.(1)Assumes 1.9 credit union members per household.

3.55 3.53

10.05

3.23 3.363.86

4.23

11.58

10.16

5.045.73

11.32

3.513.13

3.78

4.86

13.83

11.84

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

60-month newcar (A paper)

48-month usedcar (A paper)

Unsecured loan(A paper)

5-yearadjustable rate1st mortgage, 0

pts

15-year fixedrate 1st

mortgage, 0 pts


mortgage, 0 pts

Home equity /2nd mtg, 80%

LTV 0 pts

Credit card -classic

Credit card -gold

Rate

sRecent Comparative Interest Rates for Loan Products

Credit Unions vs. Banking Institutions

Credit Unions Banking Institutions

0.16

0.10

0.17

0.48

0.32

0.40

0.18

0.34

0.73

0.54

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80

Regular savings, $1,000 balance

Share draft checking, $5,000 balance

Money market accounts

1 Year certificate $10,000 balance

Retirement (IRA) accounts

Rates

Type

of S

avin

gs P

rodu

ctRecent Comparative Interest Rates for Savings Products



$27.20 $24.56

$1,151.00

$29.51 $34.18

$1,361.00

$0.00

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

$1,600.00

Share draft checking, NSF fee Credit cards, late fee Mortgages, closing costs

Selected September 2012 FeesCredit Unions vs Banking Institutions


Average Rate at Average Rate Rate DifferenceLoan Products Credit Unions (%) at Banks (%) vs. Banks (%)60-month new car (A paper) 3.55 5.04 -1.49

48-month used car (A paper) 3.53 5.73 -2.21

Unsecured loan (A paper) 10.05 11.32 -1.27

5-year adjustable rate 1st mortgage, 0 pts 3.23 3.51 -0.27

15-year fixed rate 1st mortgage, 0 pts 3.36 3.13 0.23


Home equity / 2nd mtg, 80% LTV 0 pts 4.23 4.86 -0.63

Credit card - classic 11.58 13.83 -2.25

Credit card - gold 10.16 11.84 -1.69

Savings ProductsRegular savings, $1,000 balance 0.40 0.16 0.24

Share draft checking, $5,000 balance 0.18 0.10 0.08

Money market accounts 0.34 0.17 0.18

1 Year certificate $10,000 balance 0.73 0.48 0.26

Retirement (IRA) accounts 0.54 0.32 0.22

Fee IncomeShare draft checking, NSF fee $27.20 $29.51 -$2.31

Credit cards, late fee $24.56 $34.18 -$9.62

Mortgages, closing costs $1,151.00 $1,361.00 -$210.00

Source: Datatrac

Alabama

Third-Quarter 2012 Average Interest Rates and FeesCredit Union and Banking Instituion

$10,749,437

$45,986,412

$5,904,277

$3,463,722

-$2,351,065-$402,094

$3,384,187

$9,636,200

-$10,000,000

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

New car loans Used car loans Personalunsecured loans

5-year adjustablerate 1st mortgage

15-year fixed rate1st mortgage


Home equity /2nd mortgage

loans

Credit cards

Types of Loan Products

Estimated Total Loan Rate BenefitCredit Unions vs Banking Institutions

$14,271,960

$1,262,488

$4,083,145

$8,226,309

$3,745,672

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

Regular shares Share draft checking Money market accounts Certificate accounts Retirement (IRA) accountsType of Savings Product

Estimated Total Savings Dividend BenefitCredit Unions vs. Banking Institutions

Rate Total Avg. Balance Difference Financial Benefit

at vs. Alabama to YourLoans Credit Unions (1) Banks (%) (2) MembersNew car loans 721,438,706 -1.49 $10,749,437

Used car loans 2,085,551,544 -2.21 $45,986,412

Personal unsecured loans 464,903,669 -1.27 $5,904,277

5-year adjustable rate 1st mortgage 1,259,535,235 -0.27 $3,463,722

15-year fixed rate 1st mortgage 1,022,202,199 0.23 -$2,351,065

30-year fixed rate 1st mortgage 502,616,891 0.08 -$402,094

Home equity / 2nd mortgage loans 541,469,904 -0.63 $3,384,187

Credit cards 457,776,738 -2.25 $9,636,200

Interest rebates in period $105,629

Total CU member benefits arising from lower interest rates on loan products: $76,476,704

SavingsRegular shares 5,946,649,918 0.24 $14,271,960

Share draft checking 1,578,109,463 0.08 $1,262,488

Money market accounts 2,333,225,822 0.18 $4,083,145

Certificate accounts 3,226,003,572 0.26 $8,226,309

Retirement (IRA) accounts 1,742,172,816 0.22 $3,745,672

Bonus dividends in period $0

Total CU member benefit arising from higher interest rates on saving products: $31,589,573

Fee IncomeTotal CU member benefit arising from fewer/lower fees: $22,034,443

Total CU member benefit arising from interest rates on loan and savings products and lower fees: $130,100,720

Total CU member benefit / member: $72

Total CU member benefit / member household: $137

Source: Datatrac, NCUA, and CUNA

Estimated Alabama Credit Unions Financial BenefitsThird-Quarter 2012

(1) Average balance as of September 2012 and September 2011, according to the NCUA call report.; (2) Source for rates and fees: Datatrac;

Demographic Information Sep 12 Sep 11Number of branches 423 413

Total assets ($ mil) 17,635 16,557

Total loans ($ mil) 7,657 7,457

Total surplus funds ($ mil) 9,177 8,379

Total savings ($ mil) 15,411 14,519

Total members (thousands) 1,831 1,775

Growth Rates (Trailing 12 months) *Total assets 6.5 % 8.7 %

Total loans 2.7 % -2.7 %

Total surplus funds 9.5 % 21.4 %

Total savings 6.2 % 8.8 %

Total members 3.2 % 1.4 %

Earnings - Basis Pts. *Yield on total assets 334 381

Dividend/interest cost of assets 77 101

Fee & other income 147 147

Operating expense 301 340

Loss Provisions 27 29

Net Income (ROA) after stabilization exp 77 58

Capital adequancyNet worth / assets 11.0 10.9

Asset quality *Delinquencies / loans 1.3 1.3

Net chargeoffs / average loans 0.7 0.7

Total borrower-bankruptcies 33 35

Bankruptcies per 1000 members 2.2 2.5

Asset/Liability ManagementLoans / savings 49.7 51.4

Loans / assets 43.4 45.0

Long-term assets / assets 32.6 32.0

Core deposits/shares & borrowings 51.3 49.0

ProductivityMembers/potentional members 7.7 7.4

Borrowers/members 44.1 45.2

Members/FTE 411 410

Average shares/members ($) 8,415 8,181

Average loan balances ($) 9,482 9,302

Salary & Benefits/FTE 55,087 53,658

AlabamaPerformance Profile

* Earnings, net chargeoffs, and bankruptcies are year-to-date numbers annualized. Due to significant seasonal variation, balance sheet growth rates are for the trailing 12 months.

Source: Datatrac, NCUA, and CUNA.(1)Assumes 1.9 credit union members per household.

3.25 3.50

10.42

2.743.23

3.904.34

12.55

11.27

4.474.94

11.66

3.32 3.173.88

4.97

14.06

11.72

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

60-month newcar (A paper)

48-month usedcar (A paper)

Unsecured loan(A paper)

5-yearadjustable rate1st mortgage, 0

pts


mortgage, 0 pts


mortgage, 0 pts

Home equity /2nd mtg, 80%

LTV 0 pts

Credit card -classic

Credit card -gold

Rate

sRecent Comparative Interest Rates for Loan Products



0.15

0.11

0.16

0.43

0.29

0.19

0.15

0.23

0.49

0.36

0.00 0.10 0.20 0.30 0.40 0.50 0.60

Regular savings, $1,000 balance

Share draft checking, $5,000 balance

Money market accounts

1 Year certificate $10,000 balance

Retirement (IRA) accounts

Rates

Type

of S

avin

gs P

rodu

ctRecent Comparative Interest Rates for Savings Products



$27.20 $24.56

$1,151.00

$29.51 $34.18

$1,361.00

$0.00

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

$1,600.00

Share draft checking, NSF fee Credit cards, late fee Mortgages, closing costs

Selected September 2012 FeesCredit Unions vs Banking Institutions


Average Rate at Average Rate Rate DifferenceLoan Products Credit Unions (%) at Banks (%) vs. Banks (%)60-month new car (A paper) 3.25 4.47 -1.22

48-month used car (A paper) 3.50 4.94 -1.44

Unsecured loan (A paper) 10.42 11.66 -1.24

5-year adjustable rate 1st mortgage, 0 pts 2.74 3.32 -0.58



Home equity / 2nd mtg, 80% LTV 0 pts 4.34 4.97 -0.63

Credit card - classic 12.55 14.06 -1.51

Credit card - gold 11.27 11.72 -0.45

Savings ProductsRegular savings, $1,000 balance 0.19 0.15 0.04

Share draft checking, $5,000 balance 0.15 0.11 0.04

Money market accounts 0.23 0.16 0.07

1 Year certificate $10,000 balance 0.49 0.43 0.06

Retirement (IRA) accounts 0.36 0.29 0.07

Fee IncomeShare draft checking, NSF fee $27.20 $29.51 -$2.31

Credit cards, late fee $24.56 $34.18 -$9.62

Mortgages, closing costs $1,151.00 $1,361.00 -$210.00

Source: Datatrac

Florida

Third-Quarter 2012 Average Interest Rates and FeesCredit Union and Banking Instituion

$39,013,637

$66,961,358

$11,578,418

$18,390,219

-$1,631,454 -$1,070,475

$20,857,497

$28,809,573

-$10,000,000

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

New car loans Used car loans Personalunsecured loans

5-year adjustablerate 1st mortgage



Home equity /2nd mortgage

loans

Credit cards

Types of Loan Products

Estimated Total Loan Rate BenefitCredit Unions vs Banking Institutions

$4,297,972

$1,991,848

$5,666,463

$5,063,535

$2,504,997

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Regular shares Share draft checking Money market accounts Certificate accounts Retirement (IRA) accountsType of Savings Product

Estimated Total Savings Dividend BenefitCredit Unions vs. Banking Institutions

Rate Total Avg. Balance Difference Financial Benefit

at vs. Florida to YourLoans Credit Unions (1) Banks (%) (2) MembersNew car loans 3,210,998,889 -1.22 $39,013,637

Used car loans 4,650,094,316 -1.44 $66,961,358

Personal unsecured loans 937,523,719 -1.24 $11,578,418

5-year adjustable rate 1st mortgage 3,170,727,430 -0.58 $18,390,219



Home equity / 2nd mortgage loans 3,310,713,875 -0.63 $20,857,497

Credit cards 2,311,700,959 -1.51 $28,809,573

Interest rebates in period $8,146

Total CU member benefits arising from lower interest rates on loan products: $182,916,919

SavingsRegular shares 12,279,918,853 0.04 $4,297,972

Share draft checking 4,979,619,608 0.04 $1,991,848

Money market accounts 8,094,946,931 0.07 $5,666,463

Certificate accounts 8,439,225,609 0.06 $5,063,535

Retirement (IRA) accounts 3,853,841,331 0.07 $2,504,997

Bonus dividends in period $0

Total CU member benefit arising from higher interest rates on saving products: $19,524,815

Fee IncomeTotal CU member benefit arising from fewer/lower fees: $60,843,346

Total CU member benefit arising from interest rates on loan and savings products and lower fees: $263,285,080

Total CU member benefit / member: $57

Total CU member benefit / member household: $108

Source: Datatrac, NCUA, and CUNA

Estimated Florida Credit Unions Financial BenefitsThird-Quarter 2012

(1) Average balance as of September 2012 and September 2011, according to the NCUA call report.; (2) Source for rates and fees: Datatrac;

Demographic Information Sep 12 Sep 11Number of branches 916 933

Total assets ($ mil) 45,466 43,174

Total loans ($ mil) 26,027 25,489

Total surplus funds ($ mil) 17,615 15,958

Total savings ($ mil) 39,194 37,383

Total members (thousands) 4,724 4,567

Growth Rates (Trailing 12 months) *Total assets 5.3 % 1.9 %

Total loans 2.1 % -4.9 %

Total surplus funds 10.4 % 14.7 %

Total savings 4.8 % 2.2 %

Total members 3.4 % -0.4 %

Earnings - Basis Pts. *Yield on total assets 369 413

Dividend/interest cost of assets 62 81

Fee & other income 189 173

Operating expense 357 386

Loss Provisions 60 92

Net Income (ROA) after stabilization exp 79 27

Capital adequancyNet worth / assets 10.0 9.8

Asset quality *Delinquencies / loans 2.3 2.8

Net chargeoffs / average loans 1.3 1.8

Total borrower-bankruptcies 55 73

Bankruptcies per 1000 members 1.9 2.7

Asset/Liability ManagementLoans / savings 66.4 68.2

Loans / assets 57.2 59.0

Long-term assets / assets 33.1 31.6

Core deposits/shares & borrowings 46.4 43.8

ProductivityMembers/potentional members 3.4 3.5

Borrowers/members 46.1 45.8

Members/FTE 376 369

Average shares/members ($) 8,297 8,185

Average loan balances ($) 11,956 12,174

Salary & Benefits/FTE 58,917 56,449

FloridaPerformance Profile

* Earnings, net chargeoffs, and bankruptcies are year-to-date numbers annualized. Due to significant seasonal variation, balance sheet growth rates are for the trailing 12 months.

CUNA Legislative Affairs January 2013

The Credit Union Value Proposition

What are the Policy Implications? There is no hiding the fact that the Federal government faces a significant budget crisis and that tax

reform is on the horizon. However, taxing of credit unions would be poor public policy, resulting

in negative consequences for millions of savers and borrowers.

The credit union tax status still serves the purpose for which it was created:

o Today, 96 million Americans use credit unions to conduct financial services – building

savings and accessing credit.

o During and following the financial crisis, Americans saw credit unions as a safe haven in

the financial services sector -- more than 2 million Americans joined credit unions in 2012!

There is no doubt that consumers find tremendous value in credit unions, and that credit

unions are filling the role Congress intended as an alternative to the for-profit banking

sector.

The credit union tax status is good public policy:

o Credit unions employ the preference to the benefit of all Americans -- credit union

members and those who are not credit union members. While the Joint Committee on

Taxation estimates that the credit union tax expenditure “costs” the federal government of

$500 million annually, consumers benefit to the tune of $8 billion annually because credit

unions are tax-exempt.

o Credit union members see this benefit in terms of lower rates on loans, lower fees on

services, and higher returns on deposits.

o Non-members benefit as well because credit union competition helps keep bank savings

rates higher and loan prices lower. For example, credit unions offering credit cards now

charge lower interest rates than most other lenders (on average by two or three percentage

points). Imagine how expensive other lenders would make credit cards or auto loans, if

credit union competition did not exist!

What are the Implications for Credit Unions?

Eliminating the credit union tax status eliminates credit unions. It is that simple.

o Even though credit unions were affected by the financial crisis, none of the problems that

precipitated the crisis were caused by credit unions. This is because the motives of credit

unions and the incentive structures are different from for-profit financial institutions.

o If credit unions are taxed, there is no incentive for credit unions to remain not-for-profit;

the large credit unions would likely convert to banks; the small credit unions would likely

liquidate; and our economy will lose the only sector of the financial industry that is not

driven by profit, but rather driven by a dedication to serve its members.

o Credit unions are people helping people; unlike the banks, they are not using people to

generate profits.

Credit unions are the best way for consumers to conduct their financial services. Taxing credit unions

takes this option away from consumers, and will drive up the cost of financial services for all.

Did You Know?

Credit unions are exempt from Federal and most State income taxes because they are member-

owned, democratically operated, not-for-profit cooperatives, generally managed by volunteer

boards of directors with a specified mission of promoting thrift and providing access to credit for

provident purposes. This rationale for the tax-exempt status has been reaffirmed by Congress

several times since it was first enacted in 1937.

Even though credit unions are exempt from Federal income tax, they do pay other types of taxes.

Credit union members pay taxes on dividends (interest) that their accounts earn. Federal credit

unions pay real property taxes, tangible personal property taxes (referred to as “ad valorem” taxes

in some states), payroll taxes for their employees, and UBIT (unrelated business income tax).

Our Ask:

Members of Congress should be outspoken in their support for the credit union tax status, and

should not use the tax status as a mechanism to prevent improvements to the Federal Credit Union

Act.

Number of CUs 124 Number of Banks 141 Federally chartered 60 State chartered 64

Credit union market share of CU/Bank assets 6.9% Bank market share of CU/Bank assets 93.1%Average size $134.7 Average size $1,586.8Total assets $16,701.5 Total assets $223,737.3

Subchapter S assets $7,734.1Members 1,783,943Membership/Population 37.1%

Estimated Sub S foregone federal tax revenue $5.3Estimated federal income tax $35.0 Estimated federal income tax $239.9

Stockholder dividends $71.4Estimated directors fees $20.0

Average Interest Rates Average Interest Rates One-year certificate 0.75% One-year certificate 0.51% Money market accounts 0.37% Money market accounts 0.17% Auto loans 3.38% Auto loans 5.09% Classic credit card 11.43% Classic credit card 13.77%

Alternative market share calculation Alternative market share calculationTotal deposits $14,649 Total deposits in institutions w/ branches in state $84,218Market share of deposits 14.8% Market share of deposits 85.2%

Number of CUs 7,140 Number of Banks 7,353 Federally chartered 4,377 State chartered 2,763

Credit union market share of CU/Bank assets 6.6% Bank market share of CU/Bank assets 93.4%Average size $136.1 Average size $1,884.4Total assets $972,019.7 Total assets $13,855,817.3


Estimated Sub S foregone federal tax revenue $676.8Estimated federal income tax $1,707.2 Estimated federal income tax $47,806.0

Stockholder dividends $77,780.9Estimated directors fees $1,117.3


Source: All financial data is December 2011. Average interest rates are as of December 31, 2011 source: Datatrac. Population taken from Census Bureau Estimates for July 2011. Credit union data is from NCUA; Bank data is from FDIC, directors fees were estimated using the America's Community Bankers Compensation Survey Results.

Produced by CUNA's Economics & Statistics Department.

AlabamaCredit Union Fact Sheet

Subchapter S 43

Institutions Chartered in AlabamaCredit Unions Banks/S&Ls/Savings Banks

($ in Millions)

National

Subchapter S 2,310

Credit Unions Banks/S&Ls/Savings Banks

Number of CUs 165 Number of Banks 227 Federally chartered 91 State chartered 74

Credit union market share of CU/Bank assets 23.9% Bank market share of CU/Bank assets 76.1%Average size $262.9 Average size $608.6Total assets $43,378.9 Total assets $138,150.9


Estimated Sub S foregone federal tax revenue $0.2Estimated federal income tax $45.5 Estimated federal income tax $256.1

Stockholder dividends $168.7Estimated directors fees $38.4


Alternative market share calculation Alternative market share calculationTotal deposits $37,503 Total deposits in institutions w/ branches in state $411,526Market share of deposits 8.4% Market share of deposits 91.6%

Number of CUs 7,140 Number of Banks 7,353 Federally chartered 4,377 State chartered 2,763

Credit union market share of CU/Bank assets 6.6% Bank market share of CU/Bank assets 93.4%Average size $136.1 Average size $1,884.4Total assets $972,019.7 Total assets $13,855,817.3


Estimated Sub S foregone federal tax revenue $676.8Estimated federal income tax $1,707.2 Estimated federal income tax $47,806.0

Stockholder dividends $77,780.9Estimated directors fees $1,117.3


Source: All financial data is December 2011. Average interest rates are as of December 31, 2011 source: Datatrac. Population taken from Census Bureau Estimates for July 2011. Credit union data is from NCUA; Bank data is from FDIC, directors fees were estimated using the America's Community Bankers Compensation Survey Results.

Produced by CUNA's Economics & Statistics Department.

FloridaCredit Union Fact Sheet

Subchapter S 43

Institutions Chartered in FloridaCredit Unions Banks/S&Ls/Savings Banks

($ in Millions)

National

Subchapter S 2,310

Credit Unions Banks/S&Ls/Savings Banks

2/14/13 Credit Unions Excluded from Ross Tax Reform Bill

www.cutimes.com/2013/01/15/credit-unions-excluded-from-ross-tax-reform-bill 1/1

This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, click the "Reprints"

link at the top of any article.

Credit Unions Excluded from Ross Tax Reform Bill

After insisting credit unions had been accidentally included in his tax reform bill last year, Rep. Dennis

Ross (R-Fla.) introduced a revised version Monday that is true to his word.

H.R. 243, the Bowles-Simpson Plan of Lowering America’s Debt Act, targets seven reforms recommended

by the National Commission on Fiscal Responsibility and Reform to reduce spending, but credit unions

are not among them.

“Representative Ross is a long-time supporter of credit unions," Brad Thaler, NAFCU’s vice president of

legislative affairs said. "We appreciate his and his staff’s openness in discussing our concerns and

following through on their commitment to not include the credit union tax exemption in this bill.”

Ross, a member of the House Financial Services Committee, was a co-sponsor last congress of member

business lending and exam reform legislation, signing on early on both bills.

CUNA Senior Vice President of Legislative Affairs Ryan Donovan said Ross has a strong relationship with

Florida credit unions, and is beginning his second term in the House. He’s a lawyer, Donovan said, and

has served on the House Judiciary Committee.

© 2013 Credit Union Times. A Summit Business Media publication. All Rights Reserved.

BY HEATHER ANDERSON

January 15, 2013 • Reprints

Sign up for our free newsletter today! All the

breaking credit union news and information you

need to make the right decision for your credit

union delivered to your inbox. For free!

SIGN UP TODAY

Your Name

Your Email

SIGN ME UP

Trusted News for Credit Union Leaders • February 14, 2013

Credit Union Times

http://www.cutimes.com/2012/11/21/tax-exemption-excision-added-by-mistake-to-house-b

http://www.cutimes.com/2012/12/21/2013-watch-credit-union-taxation-in-the-year-ahead

http://www.summitbusinessmedia.com/

http://www.summitbusinessmedia.com/

http://www.cutimes.com/woops/

http://www.cutimes.com/author/heather-anderson

http://sbmediareprints.com/reprint-products-quote-request/?cf2_field_18=&cf2_field_17=CUTimes.com&cf2_field_19=January%2015%2C%202013

http://www.cutimes.com/


Regulatory Burden: The Crisis of Creeping Complexity

What are the Policy Issues?

The CFPB currently has a number of rulemakings in progress, including the remittance rule

that was recently delayed.

These rulemakings, most of which are required under the Dodd-Frank Act, cover issues

ranging from mortgage loan disclosures, fees and practices; mortgage loan originator

compensation; and international remittance transfers. The agency is reviewing other areas

such as prepaid cards, student loans, and overdraft protection plans.

A number of the Bureau’s rules will change regulations that have been revised just in the

last four years. This means that the resources credit unions put towards complying with the

previous changes will be lost as they dedicate resources to comply with the new changes.


Every time a rule is changed, there are certain upfront costs that must be incurred: staff

time and credit union resources must be applied in determining what is necessary in order

to comply with the change; forms and disclosures must be changed; data processing

systems must be reprogrammed; and staff must be retrained.

The burden of complying with ever-changing and ever-increasing regulatory requirements

is particularly onerous for smaller institutions, like credit unions, because most of the costs

of compliance do not vary by size, and therefore proportionately are a much greater burden

for smaller as opposed to larger institutions.

Every dollar a credit union spends on complying with regulation is a dollar that is not used

for the benefit of its members.

Credit unions did not cause the financial crisis; they did not engage in abusive activity.

They should be provided accommodation to continue to offer products as they have been

for years, without the crippling burden of new regulations designed to reign in the abusers.

Did You Know?

The frequency with which new and revised regulations have been promulgated in recent years and

the complexity of these requirements is staggering.

o Credit unions were subjected to more than 120 regulatory changes from at least 15

different federal agencies between 2008 and 2012.

o All of this before the Consumer Financial Protection Bureau (CFPB) completed its first

rule.

While the pace of new rules is slowing in some areas, the CFPB has been very busy implementing

Dodd-Frank Act requirements.

Regulatory burden is of particular significance to credit unions.

o Approximately 1,000 credit unions operate with one or fewer fulltime equivalent

employees.

o Nearly one-half of the nation’s 7,200 credit unions operate with five or fewer full-time

equivalent employees.

Our Ask:

Congress should continue to exercise diligent oversight over the CFPB to ensure that its

rulemakings do not burden credit unions, which are already very well regulated.

Congress should encourage the CFPB to aggressively use its authority to exempt credit unions

from its rules when appropriate.


Streamlining Privacy Notifications

What are the policy issues?

Under current law, financial institutions are required to send an annual privacy notification

on information sharing practices to its members or customers.

The Eliminate Privacy Notice Confusion Act would require a privacy notification be sent to

a member or customer when the policy changes, rather than a redundant annual notice that

is often overlooked.

The Eliminate Privacy Notice Confusion Act is a common sense regulatory relief measure

that would make privacy notifications more meaningful for consumers.

What are the implications for credit unions and their members?

Credit unions must strictly follow an ever increasing number of rules and regulations. As a

result, streamlining outdated or burdensome regulations is a very important aspect in

providing regulatory relief.

Credit unions strive to provide the most effective and efficient services to their members,

which include ensuring their members are aware of their privacy rights.

The Eliminate Privacy Notice Confusion Act would provide benefits for both credit unions

and their members, by streamlining compliance burden and enhancing greater member

awareness of the credit union’s privacy policies.

Streamlining this ineffective regulation will reduce the amount of diverted time and

resources that a credit union’s staff could be using for more important services to its

members.

Eliminating unnecessary mailings reinforces the emphasis credit unions place on ensuring

their members are not bombarded with a flood of unnecessary mail – while ensuring at the

same time the mail that members do receive is given greater attention.

This bill is a straightforward, common sense solution that reduces regulatory burden for

credit unions. This legislation was supported by both Republican and Democratic

leadership, and it was passed by voice vote in the House in both the 111th

and the 112th

Congress.

Did you know?

Every year credit unions are required to send millions of privacy notices to their members, most of

which go unread and even unopened.

Since 2001, credit unions have sent over 1 billion privacy notices to their members, averaging over


Our Ask:

Please cosponsor the Eliminate Privacy Notice Confusion Act when it is introduced in the House,

and urge support for the introduction of a companion bill in the Senate. This legislation has passed

the House unanimously in each of the two previous Congresses.

November 29, 2012

The Honorable Blaine Luetkemeyer The Honorable Brad Sherman

Member of Congress Member of Congress

1740 Longworth House Office Building 2242 Rayburn House Office Building

Washington, D.C. 20515 Washington, D.C. 20515

Dear Representatives Luetkemeyer and Sherman:

On behalf of the Credit Union National Association (CUNA), I am writing in support

of H.R. 5817, the Eliminate Privacy Notice Confusion Act. CUNA is the largest credit

union advocacy organization in the United States, representing nearly 90% of

America’s 7,300 state and federally chartered credit unions and their 94 million

members. CUNA strongly supports H.R. 5817 and appreciates your leadership on this

issue.

H.R. 5817 will eliminate a costly and unnecessary compliance burden for credit

unions. The legislation provides an exception to the Gramm-Leach-Bliley annual

privacy notification requirements if the financial institution’s privacy policy has not

changed since it was last disseminated.

If this legislation becomes law, consumers currently receiving redundant annual

privacy notices regardless of whether a policy has changed, will instead receive their

notices when actual changes were made to their policies. The bill eliminates repetitive

notices that are often ignored by consumers, and enhances consumer protection by

ensuring that when a consumer receives a privacy notification, it has significance and

is not redundant. The legislation also reduces future compliance burden for credit

unions and other financial institutions.

On behalf of America’s credit unions, we appreciate your effort to eliminate

unnecessary regulatory burdens for credit unions. We strongly support this legislation

and look forward to its enactment.

Best regards,

Bill Cheney

President & CEO


1.10%

51.05%

Community Banks (< $1 Billion) Credit Unions

2012Business Loan Growth(Source: FDIC & NCUA)

The Credit Union Small Business Jobs Act


America’s small businesses are the engine of growth of our nation’s economy. The recent financial

crisis has affected all types of lending, resulting in a reduction in the availability of business credit.

America’s small businesses could create more jobs, if they are given access to more capital. Credit

unions can provide them with $13 billion in additional capital.

Credit unions have demonstrated that they can do small business lending safely, and they stayed in

the game when other lenders pulled back.

o Credit union loan losses (net charge off rates) for business loans are much lower than

those for business loans made by banks.

o At a time when banks are withdrawing credit from America’s small businesses, credit

unions have actually been expanding credit to small businesses. The credit unions with

the most business lending experience are approaching the cap, threatening this growth.

Credit unions hold just 6.1% of all small business loans at depository institutions. It took CUs 100

years to reach this share of market. Even if CUs were to double their market share in the future that

would still leave banks with an overwhelming 88% share.

What are the Implications for Small Businesses?

The average credit union business loan is approximately

$212,000, meaning that credit unions are generally going to the

underserved market of smaller-small businesses. Therefore,

when a credit union lends to one of its business-owning

members, the capital can be used to keep the business

competitive and hire additional employees – up to 140,000

people nationally.

Credit unions have a strong history of better lending, and will do

better than the banks’ failed efforts to help small businesses, all

without any cost to the taxpayer.

Currently, 500 credit unions are constrained by or actively managing the cap. The cap restricts

some credit unions from helping small businesses participate in the economic recovery, it means

turning away small businesses they have served through the crisis instead of providing additional

lending to be a part of the recovery.

Did You Know?

Credit unions have been making member-business loans (MBLs) since their inception in the early

1900s. In the first 90 years of their existence, there was no cap on business lending.

The current cap was imposed by Congress in the Credit Union Membership Access Act of 1998

(CUMAA) and limits most credit unions to lending no more than 12.25% of their assets to small

businesses without any economic, safety and soundness or historical rationale.

Credit unions could lend an additional $13 billion to small businesses, helping them create over

140,000 new jobs in the first year after enactment if Congress increases the statutory cap on credit

union business lending. This can be done without costing the taxpayers a dime and without

increasing the size of government. Credit unions do not need taxpayer assistance to encourage

them to do more business lending; credit unions only need authority from Congress.

Our Ask:

Congress should enact the Credit Union Small Business Jobs Act which would allow well-

capitalized credit unions operating near the business lending cap to increase their business loan

offerings to 27.5% of total assets, if they receive approval by the NCUA. This approach has been

endorsed by the Obama administration.

Credit unions have been

lending to small businesses for

over 100 years.

Multiple studies suggest this is not

the case.*

This issue is not new and it should not be controversial. Legislation to reform the cap has been introduced in each of the last four Congresses. It is only controversial because the banks don’t like it. Everyone else thinks it’s a no-brainer.

Hearings have been held:

Senate Banking 6/16/11 and

House FSC 10/12/11

Over 500 credit unions are or will be bumping up

against the cap in < 3 years.

* See: U.S. Department of Treasury, Credit Union Member Business Lending, January 2001. p 5. and Basset, William F., Chosak Mary Beth, Discoll, John C., Egon Zakrajsek (All of the Division of Monetary Affairs, Federal Reserve Board.) Identifying the Macroeconomic Effects of Bank Lending Supply Shocks, December 2010. p. 18. Available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1758832.

STARVE? Banks control 95% of the

market. Even if credit unions

doubled lending, banks would still

have 90%.

Fact Checking the ABA Propaganda…

CU lending ↑ 45% bank lending ↓15%

during crisis.

Because of the low cap, 2/3 of credit

unions (those < $50M in assets)

can’t currently justify investment

in business lending.

The banks miss the point. The legislation is

purposely focused on allowing credit unions

with the most experience to continue to lend.

Average CU business loan = $219,000

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1758832

Setting the Record Straight… again.

Big Commercial Loans? The average size of a credit union business loan is less than $219k.

Wouldn’t the fiscal condition of the country be better today if 2,310 community banks weren’t

using Subchapter S status to dramatically cut the tax obligations of a for-profit corporation?

More importantly, wouldn’t the economy be better off if more credit was available to small

businesses?

Harm community banks? They control 95% of the small business

lending market! Haven’t the banks been saying this would only affect a

handful of credit unions?

Credit unions have a mandate

to serve their members and

businesses at all income levels.

A vote against S. 2231 is a vote against job creation.

Like credit unions, community banks provide important services to small businesses and consumers across the country. On Main Street, banks want to help create jobs just as much as

credit unions do. But on K Street, banks are blocking the 140,000 jobs this bill could create.

It’s time to say NO to the ABA, and YES to job creation.

Morph? They must mean “succeed.” When banks succeed, shareholders get rich. When a credit union succeeds, it grows and continues to fully serve its

members.

Fair Share? The banks that needed a $700

billion taxpayer bailout four years ago want to talk about fair share?

Credit unions did not need a bailout, and they use their tax

status to benefit consumers and small businesses to the tune of $10 billion each year, in lower rates and fees, higher returns on deposit and

better service. Even bank customers benefit from having

credit unions in the market.

U.S. Credit Union OverviewMember-Owned, Not-For-Profit, Financial CooperativesAs of September 2012. Sources: NCUA, CUNA.

Number of U.S. Credit Unions: 7,029Consumer Member-Owners: 95 millionAssets: $1,026 billionLoans: $603 billionConsumer Savings: $881 billionCapital to Assets: 10%

Source: FDIC, NCUA, and CUNA E&S. 2010 results are annualized

$219.43

$174.59$161.50

$26.00

New Car: $30,000/5 YrTerm

Platinum Credit Card:$10,000

Used Car: $20,000/4 YrTerm

Home Equity:$50,000/80%LTV/15 Yr Term

Consumers Save Big at Credit Unions Average Annual Savings on Credit Union Loan Products(Source: Informa, calculated as the difference in total payments using average interest rates)

5.37%

1.82%

4.87%

1.76%

4.09%

1.60%

3.85%

1.18%

Banks Credit Unions

Much Smaller Delinquency Increases at Credit Unions

Loan Delinquency Rates(Source: FDIC, NCUA, CUNA Policy Analysis)

2009 2010 2011 Sep 2012 2.57%

1.08%

0.55%

1.15%

0.91%

0.52%

0.57%

0.72%

Consumer Loans

Real Estate Loans

Commerical Loans

Total Loans

Credit Unions: A Record of Safe LendingLoan Charge-Offs - September 2012 (Annualized)

(Source: FDIC, NCUA, CUNA Policy Analysis)

Credit Unions Banks

1.10%

-16.41%

51.05%

Bank Commercial Loans Bank Small Business Loans Credit Union MBLs

Business Loan GrowthFrom Start of Crisis to September 2012

(Sources: NCUA, FDIC, CUNA)

Growth is for period 12/07 to 9/12 excepting bank small business loan growth which is for 6/08 to 9/12. Prior to 2010 banks reported small business loans outstanding only at mid-year.

Credit Union Member Business Lending OverviewAs of September 2012. Sources: FDIC, NCUA, CUNA.

National Overview AlabamaNumber of CUs with MBLs 2,261 Number of CUs with MBLs 44Total CU MBLs outstanding $42,212,823,164 Total CU MBLs outstanding $457,343,789Average size of CU MBLs $212,335 Average size of CU MBLs $159,187MBLs: % of Assets at offering CUs 5% MBLs: % of Assets at offering CUs 3%

12 Month Loan Growth:Credit union MBLs* 6%Community bank business loans -3%*MBLs are the fastest-growing segment of CU loan portfolios

Excludes Grandfathered and Non Federally Insured and/or Low Income Designated CUs

Commercial Bank MBLs as a Number Average Unused Capacity Unused CapacityCredit Union Commercial & % of Assets of CUs Asset Size Under Current Cap If Cap = 27.5%

MBLs Industrial Loans >0.0% to 5.0% 1,331 $394,584,590 $55,944,747,235 $136,036,601,8461997 0.18% 0.28% 5.0% to 7.5% 239 $495,607,020 $7,208,383,635 $25,272,020,4881998 0.08% 0.43% 7.5% to 10.0% 170 $558,532,433 $3,331,791,948 $17,811,745,2731999 0.12% 0.57% 10.0% to 12.5% 103 $463,407,954 $572,352,138 $7,851,332,5752000 0.05% 0.01% 12.5%+ 23 $551,489,411 $1,234,714,7202001 0.10% 1.43% Source: NCUA, and CUNA E&S.

2002 0.09% 1.76%2003 0.08% 1.26% Many credit unions have not entered the MBL arena because the 12.25% cap prevents2004 0.10% 0.50% them from earning sufficient income to cover start-up and ongoing program costs.2005 0.05% 0.27%2006 0.08% 0.30%2007 0.09% 0.52%2008 0.33% 1.01%2009 0.57% 2.62% * Will produce an estimated $14.5 billion in new MBLs in the first year2010 0.66% 1.75% New MBLs in the first year in your state:2011 0.89% 0.89%

Q3 2012 0.57% 0.55%

Avg. since '97 0.25% 0.88% * Will produce an estimated 158,000 new jobs using CEA job multiplier Number of new jobs in your state:

Business Loan Asset Quality ComparisonsCU Business Lending: Safe & Sound

Removing MBL 12.25% cap:

Average Asset Size of MBL CUsThose Near Cap Tend to be Larger CUs

No cost to taxpayers

$137,729,672

1,497Source: FDIC, NCUA, and CUNA E&S.

Net Chargeoffs

U.S. Credit Union OverviewMember-Owned, Not-For-Profit, Financial CooperativesAs of September 2012. Sources: NCUA, CUNA.

Number of U.S. Credit Unions: 7,029Consumer Member-Owners: 95 millionAssets: $1,026 billionLoans: $603 billionConsumer Savings: $881 billionCapital to Assets: 10%

Source: FDIC, NCUA, and CUNA E&S. 2010 results are annualized

$219.43

$174.59$161.50

$26.00

New Car: $30,000/5 YrTerm

Platinum Credit Card:$10,000

Used Car: $20,000/4 YrTerm

Home Equity:$50,000/80%LTV/15 Yr Term

Consumers Save Big at Credit Unions Average Annual Savings on Credit Union Loan Products(Source: Informa, calculated as the difference in total payments using average interest rates)

5.37%

1.82%

4.87%

1.76%

4.09%

1.60%

3.85%

1.18%

Banks Credit Unions

Much Smaller Delinquency Increases at Credit Unions

Loan Delinquency Rates(Source: FDIC, NCUA, CUNA Policy Analysis)

2009 2010 2011 Sep 2012 2.57%

1.08%

0.55%

1.15%

0.91%

0.52%

0.57%

0.72%

Consumer Loans

Real Estate Loans

Commerical Loans

Total Loans

Credit Unions: A Record of Safe LendingLoan Charge-Offs - September 2012 (Annualized)

(Source: FDIC, NCUA, CUNA Policy Analysis)

Credit Unions Banks

1.10%

-16.41%

51.05%

Bank Commercial Loans Bank Small Business Loans Credit Union MBLs

Business Loan GrowthFrom Start of Crisis to September 2012

(Sources: NCUA, FDIC, CUNA)

Growth is for period 12/07 to 9/12 excepting bank small business loan growth which is for 6/08 to 9/12. Prior to 2010 banks reported small business loans outstanding only at mid-year.

Credit Union Member Business Lending OverviewAs of September 2012. Sources: FDIC, NCUA, CUNA.

National Overview FloridaNumber of CUs with MBLs 2,261 Number of CUs with MBLs 71Total CU MBLs outstanding $42,212,823,164 Total CU MBLs outstanding $1,265,108,714Average size of CU MBLs $212,335 Average size of CU MBLs $283,085MBLs: % of Assets at offering CUs 5% MBLs: % of Assets at offering CUs 3%

12 Month Loan Growth:Credit union MBLs* 6%Community bank business loans -3%*MBLs are the fastest-growing segment of CU loan portfolios

Excludes Grandfathered and Non Federally Insured and/or Low Income Designated CUs

Commercial Bank MBLs as a Number Average Unused Capacity Unused CapacityCredit Union Commercial & % of Assets of CUs Asset Size Under Current Cap If Cap = 27.5%

MBLs Industrial Loans >0.0% to 5.0% 1,331 $394,584,590 $55,944,747,235 $136,036,601,8461997 0.18% 0.28% 5.0% to 7.5% 239 $495,607,020 $7,208,383,635 $25,272,020,4881998 0.08% 0.43% 7.5% to 10.0% 170 $558,532,433 $3,331,791,948 $17,811,745,2731999 0.12% 0.57% 10.0% to 12.5% 103 $463,407,954 $572,352,138 $7,851,332,5752000 0.05% 0.01% 12.5%+ 23 $551,489,411 $1,234,714,7202001 0.10% 1.43% Source: NCUA, and CUNA E&S.

2002 0.09% 1.76%2003 0.08% 1.26% Many credit unions have not entered the MBL arena because the 12.25% cap prevents2004 0.10% 0.50% them from earning sufficient income to cover start-up and ongoing program costs.2005 0.05% 0.27%2006 0.08% 0.30%2007 0.09% 0.52%2008 0.33% 1.01%2009 0.57% 2.62% * Will produce an estimated $14.5 billion in new MBLs in the first year2010 0.66% 1.75% New MBLs in the first year in your state:2011 0.89% 0.89%

Q3 2012 0.57% 0.55%

Avg. since '97 0.25% 0.88% * Will produce an estimated 158,000 new jobs using CEA job multiplier Number of new jobs in your state:

No cost to taxpayers

$640,800,838

6,965Source: FDIC, NCUA, and CUNA E&S.

Removing MBL 12.25% cap:

Average Asset Size of MBL CUsThose Near Cap Tend to be Larger CUs

Net Chargeoffs

Business Loan Asset Quality ComparisonsCU Business Lending: Safe & Sound

February 9, 2012

The Honorable Peter King Member of Congress United States House of Representatives Washington, DC 20515

The Honorable Brad Sherman Member of Congress United States House of Representatives Washington, DC 20515

Dear Representatives King and Sherman:

On behalf of the Credit Union National Association (CUNA), I am writing in support of your legislation to clarify the National Credit Union Administration (NCUA) authority to improve credit union safety and soundness. CUNA is the largest credit union advocacy organization in the United States, representing nearly 90% of America’s 7,300 state and federally chartered credit unions and their 94 million members.

The lesson of the most recent financial crisis for financial institutions is that capital is king. Capital is also the first line of defense in protecting taxpayers from deposit insurance losses. It is in everyone’s best interest to have financial institutions that are well capitalized and able to weather whatever difficulties may occur.

Credit unions are the only financial institutions in the United States with capital requirements written into statute, and no ability to raise capital other than through retained earnings. While credit unions as a whole remain well capitalized, a number of credit unions are close to or past the prompt corrective action (PCA) triggers as a result of the financial crisis. For these credit unions and others, rebuilding capital ratios will be paramount in the coming years.

Your legislation would permit the NCUA Board to allow credit unions to accept other forms of capital, provided that it does not alter the cooperative ownership structure of credit unions. The legislation requires that this capital be uninsured and subordinate to other claims against the credit union. Further, the bill authorizes the NCUA to set maturity limits on this capital and restrict the ability to raise supplemental capital to credit unions which are sufficiently capitalized and well managed.

We believe your legislation would provide credit unions with appropriate ability to raise capital from sources other than retained earnings without putting in jeopardy the “one member, one vote” principle that is the bedrock of the credit union ownership structure. As credit unions emerge from the financial crisis, this legislation would improve the safety and soundness of credit unions by allowing them to develop a supplemental cushion to reduce risk to the National Credit Union Share Insurance Fund.

The Honorable Peter King The Honorable Brad Sherman February 9, 2012 Page Two

On behalf of America’s credit unions and their 94 million members, thank you very much for introduced this legislation. We look forward to working with you to secure its enactment.

Best regards,

Bill Cheney President & CEO


The Need For Capital Reform

What are the Policy Implications? Capital is king for all financial institutions. As credit unions battered by the financial crisis recover

in the coming few years, rebuilding capital ratios will be paramount.

The recent financial crisis led to a substantial drop in the average credit union capital ratio – from

11.4% at the end of 2007 to 10.3% as of September 2012. At the beginning of the downturn, 90%

of credit unions had net worth ratios of 9% or greater compared with approximately 75.4% of credit

unions as of September 2012.

While the credit union movement as a whole remains very well capitalized, a number of credit

unions are close to or past the PCA triggers as a result of the financial crisis. These credit unions

will need to raise capital at a time when the outlook for credit union net income – the source of

retained earnings – is not particularly strong.


Long term influences on credit union net income are not promising. Net interest income,

essentially the difference between what credit unions earn in interest on loans and investments and

what they pay in interest and dividends on savings has been on a long-term downtrend caused by

intense competition on both sides of the balance sheet. This pressure is unlikely to abate

significantly going forward. In addition, interchange income, an important source of non-interest

revenue, is under political pressure and is likely to diminish.

Without access to supplemental capital, and with earnings power facing headwinds, credit

unions and their members will face a protracted period of reduced member service,

disadvantageous member pricing, and very slow growth, unless Congress allows credit unions

to access supplemental forms of capital.

Supplemental credit union capital will reinforce and strengthen the regulatory incentive for credit

unions to remain exceptionally safe and sound, and, will allow credit unions to do even more to

serve all their members. This would benefit all credit unions whether they use the authority or not.

Did You Know?

Credit unions remain the most highly regulated and restricted of all insured financial institutions.

By law – not regulation, as is the case for other insured depositories – credit unions must maintain

a 7% net worth (or leverage) ratio in order to be considered “well capitalized.” The law also

specifies that only retained earnings constitute net worth for credit unions.

Credit unions historically have had the lowest default/delinquency rates in virtually all categories

of loans and have maintained average net worth ratios well in excess of those held by banks.

All other U.S. depository institutions and most credit unions in other countries are permitted

various forms of alternate or supplemental capital.

The National Credit Union Administration supports allowing credit unions to access additional

capital.

Our Ask:

Congress should modify the definition of credit union net worth to include supplemental forms of

capital for credit unions and allow the regulator to develop risk based capital standards for the

purposes of prompt corrective action (PCA)


Financial Institution Examination Fairness


Credit unions support strong but fair and appropriate safety and soundness regulation and

supervision to protect the financial resources of credit unions and their members and to minimize

costs to the National Credit Union Share Insurance Fund (NCUSIF) borne by all federal insured

credit unions.

Examinations should be based on the laws Congress enacts and the regulations that the NCUA

promulgates, and the appeals process should protect from examiner retaliation.

The Financial Institutions Examination Fairness and Reform Act (FIEFRA) would make available to

financial institutions the information used by examiners to make decisions in their examination;

codify certain examination policy guidance; establish an ombudsman at the Federal Financial

Institution Examination Council (FFIEC) to which financial institutions could raise concerns with

respect to their examination; and, establish an appeals process before an independent administrative

law judge.


Credit unions face a crisis of creeping complexity with respect to regulatory burden which is made

all the more challenging by current examination practices.

Many credit unions are uncertain about how their next examination will differ from the last. This

uncertainty leads to widespread fear among credit unions of retaliation, should they make attempts to

challenge inconsistencies in the process.

o In a recent CUNA survey, 25% of credit unions felt the need to appeal their most recent

supervisory decision; however, only 5% of credit unions followed through with an appeal,

the remainder citing a fear of retaliation.

Credit unions have the right to manage risk without being directed to eliminate it by examiners. In

that regard, regulators should address the supervision and examination of credit unions in a

professional manner, taking into full account legal requirements credit unions must meet as well as

the need for credit unions to have reasonable flexibility to serve their members well.

The Financial Institutions Examination Fairness and Reform Act (FIEFRA) takes firm steps in the

right direction toward making the examination process fairer and more consistent.

Did You Know? Concerns regarding credit union and small bank examinations increase during difficult economic

times. In a recent survey conducted by CUNA, 28% of credit unions reported dissatisfaction with their

most recent exam.

One of the more common concerns among credit unions is that examiners tended to focus too much on

their own view of best practices rather than on legal and regulatory requirements.

In testimony before Congress, the National Credit Union Administration (NCUA) admitted that they

do not document each examination finding with a specific reference to NCUA rules and regulations,

and expressed concern with legislation that would require them to do so.

Our Ask:

Support the Financial Institutions Examination Fairness and Reform Act (FIEFRA).


About Credit Unions

Credit unions are the best way for consumers to conduct their

financial services.

Credit unions benefit everyone-whether a member or

not.

Credit union members save over $6 billion each year

by doing business with their credit union as opposed to

a bank.

Bank customers benefit about $2 billion because credit

unions are in the marketplace.

The not-for-profit credit union governance model

relies on one member, one vote. Unlike banks, credit

unions exist to serve their members, not investors.

Credit unions weathered the financial crisis well, but

are now challenged by statutory restrictions, regulatory

burdens and inconsistent examination practices

including:

o A statutory cap on business lending,

o A restrictive capital definition,

o 19 transferred regulations from various

Federal agencies to the CFPB,

o New regulatory requirements due to the Dodd-

Frank Act,

o Six proposals pending at NCUA which

include: loan participations, troubled debt

restructurings, CUSOs, liquidity, RegFlex,

and derivatives.

The Credit Union Value Proposition

Today, 96 million Americans use credit unions to

conduct financial services – building savings and

accessing credit.

During and following the financial crisis, Americans

saw credit unions as a safe haven in the financial

services sector -- more than 2 million Americans

joined credit unions in 2012.

The credit union tax status is good public policy.

o Credit unions are exempt from federal income

tax because they are not-for-profit financial

cooperatives with a mission of providing

access to credit and promoting thrift to their

members.

While the Joint Committee on Taxation estimates that

the credit union tax expenditure “costs” the federal

government of $500 million annually, consumers

benefit to the tune of $8 billion annually because credit

unions are tax-exempt. Credit union members see this

benefit in terms of lower rates on loans, lower fees on

services, and higher returns on deposits.

Non-members benefit as well because credit union

competition helps keep bank savings rates higher and

loan prices lower. For example, credit unions offering

credit cards now charge lower interest rates than most

other lenders who, on average charge two or three

percentage points higher.

Regulatory Burden

Every dollar a credit union spends on complying with

regulation is a dollar that is not used for the benefit of its

members.

Credit unions were subjected to more than 120

regulatory changes from at least 15 different federal

agencies between 2008 and 2012.

These rulemakings, most of which are required under

the Dodd-Frank Act, cover issues ranging from

mortgage loan disclosures, fees and practices;

mortgage loan originator compensation; and

international remittance transfers.

Regulatory burden is of particular significance to credit

unions.

o Approximately 1,000 credit unions operate

with one or fewer fulltime equivalent

employees.

o Nearly one-half of the nation’s 7,200 credit

unions operate with five or fewer full-time

equivalent employees.

Every dollar a credit union spends on complying with

regulation is a dollar that is not used for the benefit of

its members.

Privacy Notifications

Every year credit unions send millions of privacy notices to

their members. Most consumers ignore or pay little or no

attention to these mailings.

The Eliminate Privacy Notice Confusion Act would

require a privacy notification be sent to a member or

customer only when the policy changes.

Since 2001, credit unions have sent over 1 billion

privacy notices to their members, averaging over


This legislation gained bipartisan support in the House

in both the 111th and the 112th Congress and passed

unanimously.

Examination Fairness

The Financial Institution Examination Fairness

Reform Act would make the information examiners

use to make decisions in their examination available to

credit unions; codify certain examination policy

guidance; establish an ombudsman at the FFIEC to

which financial institutions could raise concerns with

respect to their examination; and, establish an appeals

process before an independent law judge.

In a recent CUNA survey, 25% of credit unions felt

the need to appeal their most recent supervisory

decision; however, only 5% of credit unions followed

through with an appeal, the remainder citing a fear of

retaliation.


Housing Finance Reform

Credit unions must continue to have access to the secondary

mortgage market.

Credit unions have traditionally been portfolio lenders,

typically selling approximately 53% of their

originations.

Credit unions rely on a functioning secondary

mortgage market.

Over the last two years, credit unions have sold over

half of their new loans to the secondary market.

The federal government has a very important role to

ensure the secondary market operates efficiently,

effectively and fairly for borrowers and lenders alike.

CUNA believes these are the top principles that must

be considered in any comprehensive housing finance

reform:

o Equal Access to the secondary market;

o Strong oversight and supervision to ensure

safety and soundness;

o Durability to lend to qualified borrowers even

in troubled times;

o Predictable and affordable payments;

o Affordable housing should function separately

from the secondary market;

o Transition to the new housing finance system

should be reasonable and orderly.

Supplemental Capital

Capital is king for financial institutions. For credit unions, the

only type of capital that counts is retained earnings. Credit

unions remain healthy and well capitalized, but the importance

of having supplemental forms of capital available to credit

unions has taken on increased importance.

Under current law, the more deposits a credit union

accepts, the more its capital ratio declines. When

capital ratios decline, credit unions could face prompt

statute regulated corrective action by their regulator.

This legislation allows well-capitalized local and

community-based credit unions to receive

supplemental capital so they may continue to meet the

needs of their growing membership.

Access to supplemental capital is useful as credit

unions rebuild capital ratios following the financial

crisis and recession.

The NCUA will ultimately determine what forms of

supplemental capital can be offered, consistent with

the parameters established by H.R. 3993 and subject to

appropriate suitability requirements and consumer

disclosure protections.

Credit Union Small Business Jobs Bill

Raising the Member Business Lending Cap is about helping

small businesses.

Credit unions could lend up to $13 billion in the first

year if the MBL cap was raised creating over 140,000

new jobs at no cost to taxpayers.

Credit unions have been lending to their business-

owning members for a century. There was no member

business lending cap prior to 1998.

Credit unions have a sound track record when it comes

to business loans, specializing in lower loan amounts

with a national average of $212,000.

Banks have reduced lending to small businesses while

credit unions have expanded credit to them.

We know banks oppose this and that Congress doesn’t

want to choose between friends – but Congress helped

the banks already by making $30 billion of taxpayer

funds available to help small businesses.

Credit unions have a strong history of better lending,

and will do better than the banks’ failed efforts to help

small businesses, all without any cost to the taxpayer.

Credit Union National Association, Inc.

601 Pennsylvania Avenue, NW

South Building, Suite 600

Washington, DC 20004

Phone: (202) 638-5777

Fax: (202) 638-7734

Web: www.cuna.org

Bill Cheney

John Magill

Ryan Donovan Richard Gose

Sam Whitfield Trey Hawkins

Michele Johnson Joann Sordellini

Phil Drager Kristen Prather

John Hildreth Jamie Bell

Jeremy Dalpiaz Adam Engelman

Zachary Pfister Meredith Hurt

Ellen Devine Joe Joiner

Jillian Hitt

http://www.cuna.org/

Alabama Delegation Report Card House of Representatives

U.S. Senate

Member Co Sponsor S 575

(Interchange)

Vote S 575

(Interchange)

Co Sponsor S 2231 (MBL)

Co Sponsor S 1600 w/o S 2231

CoSponsor S.2160 (Exam

Fairness)

Co Sponsor S. 3204 (ATM

Disclosure)

CoSponsor S. 3394 (ATM

Disclosure Combined)

Vote H.R. 4367

(ATM Disclosure)

Vote S. 3637 (TAG

Budget Point)

Senator Richard Shelby N Y N N N Y Y Y N

Senator Jeff Sessions Y Y N N N Y N Y N

Member (District) Co Sponsor HR 1081

(Interchange)

Co Sponsor

HR 1418 (MBL)

Co Sponsor

HR 1697 w/o HR

1418

Co Sponsor HR 3461

Exam Fairness

Co Sponsor HR 3993

CU Capital

Co Sponsor HR 4367

ATM Disclosure

Vote HR 4367

ATM Disclosure

Co Sponsor HR 5817 Privacy Notices

Vote HR

5817 Privacy Notices

Jo Bonner (1) Y Y N Y N N N/A N Y

Martha Roby (2) N N N N N N Y N Y

Mike Rogers (3) N N N N N N Y N Y

Robert Aderholt (4) N N Y N N N Y N Y

Mo Brooks (5) N N Y N N N N/A N Y

Spencer Bachus (6) N N Y Y N N Y N Y

Terri Sewell (7) N N N N N N Y N Y

Florida Delegation Report Card House of Representatives

Member (District) Co

Sponsor HR 1081

(Interchange)

Co Sponsor HR 1418

(MBL)

Co Sponsor HR 1697 w/o 1418

Co Sponsor HR 3461

Exam Fairness

Co Sponsor HR 3993

CU Capital

Co Sponsor HR 4367

ATM Disclosure

Vote HR 4367

ATM Disclosure

Co Sponsor

HR 5817

Privacy Notices

Vote HR


Jeff Miller (1) Y Y N Y Y N Y Y Y

Steve Southerland (2) N N N Y N N Y N Y

Corrine Brown (3) N Y N Y N N Y N Y

Ander Crenshaw (4) N N Y Y N Y Y N Y

Richard Nugent (5) N N N Y N Y Y Y Y

Cliff Stearns (6) Y N N Y N N Y N Y

John Mica (7) N N N N N N Y N Y

Daniel Webster (8) N N N N N Y Y N Y

Gus Bilirakis (9) N Y N Y N Y Y N Y

Bill Young (10) N Y N N N N Y N Y

Kathy Castor (11) N Y N Y N N Y N Y

Dennis Ross (12) N Y N Y N Y Y N Y

Vern Buchanan (13) N N N Y N N Y N Y

Connie Mack (14) N N N N N N Y N Y

Member (District) Co

Sponsor HR 1081

(Interchange)

Co Sponsor HR 1418

(MBL)

Co Sponsor HR 1697 w/o 1418

Co Sponsor HR 3461

Exam Fairness

Co Sponsor HR 3993

CU Capital

Co Sponsor HR 4367

ATM Disclosure

Vote HR 4367

ATM Disclosure

Co Sponsor

HR 5817

Privacy Notices

Vote HR


Bill Posey (15) N Y N Y Y Y Y Y Y

Tom Rooney (16) N N N Y N Y Y N Y

Frederica Wilson (17) N Y N N N N Y N Y

Ileana Ros-Lehtinen (18) N N N Y N N Y N Y

Ted Deutch (19) N N N N N N N/A N Y

Debbie Wasserman-Schultz(20) Y N N Y N N Y N Y

Mario Diaz-Balart (21)

N N N Y N Y Y N Y

Allen West (22) Y Y N Y N N Y N Y

Alcee Hasting (23) Y Y N N N N Y Y Y

Sandy Adams (24) N N N Y N N Y N Y

David Rivera (25) Y N N Y N N Y N Y

U.S. Senate

Member Co Sponsor S 575

(Interchange)

Vote S 575

(Interchange)

Co Sponsor SB 509 (MBL)

Co Sponsor S 1600 w/o S 509

CoSponsor S.2160 (Exam

Fairness)

Co Sponsor S. 3204 (ATM

Disclosure)

CoSponsor S. 3394 (ATM

Disclosure Combined)

Vote H.R. 4367

(ATM Disclosure)

Vote S. 3637 (TAG

Budget Point)

Senator Bill Nelson Y Y Y N N Y Y Y Y

Senator Marco Rubio N Y N N N Y Y Y N

KEY

Explanation of Issues Reported:

Cosponsor HR 1081/SB 575 – HR 1081 and S 575 are legislative remedies to the Interchange Provision of the Dodd-Frank Act. Both of these bills would place a moratorium on the Federal Reserve Issuing final Interchange Regulations and require a study of the impact. The League strongly supports this legislation. A Y on co-sponsorship is support of the credit union position.

Vote on SB 575 – A Y vote in favor of HR 1081 / S 575 will be a vote to delay implementation and study the impact of the Interchange Regulations of Dodd-Frank, a and is a vote in support of the credit union position. The bill did not come to the House, so there was not an opportunity for House members to vote for or against it.

Cosponsor HR 1418/S509 – Under current law, the ability of credit unions to make small business loans to their members (Member Business Loans) is limited to 12.25% of the assets of the credit union. This unnecessarily and artificially limits the ability of credit unions to serve the loan needs of many small businesses within their fields of membership and their geographic areas. Allowing credit unions to double their current legal limit would inject $14 billion in new small business capital, creating over 100,000 new jobs, in the first year of having increased lending authority. HR 1418 and S509 increase the current limit from 12.25% to 27.5% of assets. This legislation is supported by credit unions and numerous small business groups. A Y on co-sponsorship indicates support of the credit union position.

Cosponsor HR 1697/S1600 Without HR 1418/S509 – HR 1697 / S 1600 gives banks significant regulatory relief to banks, including an expansion of Subchapter S status, which gives certain banks greater tax advantages, and reduces the aggregate tax for other banks. In addition it gives banks

Y/N - Voted with or took action requested in support of the credit union position

Y/N - Either voted against the credit union position or has not cosponsored requested legislation

- The issue has not gone before the lawmaker and available for the lawmaker to support or fail to support the credit union position

relief from numerous reporting and accounting requirements. While credit unions do not oppose this legislation for banks, we do oppose members of Congress supporting greater powers and regulatory relief for banks without also supporting the ability of credit unions to serve their members, including small business owners, under the provisions of HR 1418. Y indicates that a member of Congress co-sponsored regulatory relief for banks but not for credit unions.

Cosponsor HR 3461/S 2160 – HR 3461, the Financial Institution Exam Fairness Act, helps ensure a fair examination process by regulators. The bill gives financial institutions like credit unions the right to see the information that regulators use to make decisions, establish an appeals process before an independent Administrative Law Judge, and establishes an ombudsman to which financial institutions could raise concerns with respect to their examinations. Credit Unions strongly support this bill, and a Y indicates that the member of Congress has signed on as a co-sponsor of the bill. This House bill was introduced on 2/1/2012 and the Senate bill was introduced on 3/6/2012.

Cosponsor HR 3993 – Credit unions are the most heavily regulated of all deposit taking institutions. Unlike banks, the required net worth of credit unions is set by law, not regulations, and is higher than for other types of institutions to be considered “well capitalized.” Under current law, only HR 3993, the Capital Access for Small Business and Jobs Act, will allow credit unions to raise additional forms of capital, while still maintain the unique structure and nature of credit unions. While credit unions generally remain well capitalized, economic downturns can lead to some credit unions falling below the required amount and triggering regulatory action. HR 3993 will ensure that credit unions have options and maintain the ability to grow and serve their members. Credit unions strongly support this bill and a Y indicates that the member of Congress has co-sponsored the bill. This bill was introduced on 2/9/2012 and has not received as much of a co-sponsorship push as older bills.

Cosponsor HR 4367/S3204/S3394 – This legislation would amend the Electronic Funds Transfer Act by removing the requirement that a physical sign be placed on an ATM by the owner/operator that informs the user of the machine that he/she may be charged a fee. An on-screen disclosure requiring the user to affirmatively accept or decline the charge is still necessary, and thus the consumer is still protected. By removing this duplicative disclosure requirement, frivolous class action lawsuits due to removal of the physical sign will be eliminated. Credit unions strongly support this bill and a Y indicates the member of Congress has co-sponsored the bill. Credit unions strongly support this bill and a Y indicates that the member of Congress has co-sponsored the bill. The House bill was introduced on 4/26/12 and the Senate bill was introduced on 5/17/12. The House bill passed the floor by a 371-0 vote on 7/10/12.

Cosponsor HR 5817 – This legislation would remove a requirement that financial institutions send out annual privacy notice statements if their policy has not changed from the previous year. Currently, when you open an account, you are given the institutions privacy notice and then receive an annual notice, regardless of any changes that have occurred. If this legislation passes, credit unions will no longer have to spend money to send their members duplicative notices. Should a credit union change their policy, even in a slight manner, they will be required to send the updated policy to their members. Credit unions strongly support this bill and a Y indicates the member of Congress has co-sponsored the bill. Further, all notices will still be available on the website, as well as available at physical locations. This bill was introduced 5/17/12. There is currently no Senate companion.

Vote S. 3637 – This legislation would extend the Transaction Account Guarantee (TAG) program for 2 years. During the TARP era, the FDIC used emergency powers to extend unlimited deposit insurance coverage to noninterest bearing accounts at banks. This was necessary to maintain confidence in the banking sector which was in crisis. During the Dodd-Frank Act, Congress temporarily authorized the FDIC to continue this coverage, and expanded the program to include credit unions as well through the NCUSIF. It expires Dec. 31st if not reauthorized. A N indicates the member of Congress voted against allowing this bill to proceed to the floor, a position advocated for by the LSCU. This bill was introduced on 11/26/12.


Capitol Hill Meeting Etiquette

Remember: Timeliness matters – Lawmakers’ and staff’s time is constantly in flux, and if you are late it could

result in reduced face-to-face time.

One of Many –Lawmakers and staff hold dozens of meetings a week on a wide range of policy issues.

There are few credit union “experts” on the Hill. Be patient, clear, and concise when discussing the

issues. Some offices may need more explanation than others.

Show Appreciation – Be sure to thank lawmakers’ for past support of credit unions, and be sure to

thank lawmakers who pledge to support credit unions going forward.

Take turns speaking – Identify a point person for each topic to speak on behalf of the group. This

approach is a confirmation that the group stands as one on the issue. Try to reinforce, not repeat,

information and stay on point.

It’s OK to disagree sometimes – It’s great to have a lawmaker on your side on every issue. But that’s

not commonplace. Expect to disagree sometimes, but don’t let disagreements define relationships.

Exchange business cards – Even someone who is good with names may not remember who stopped by

on any given day based on the number of people that visit. Exchange business cards. If you do not have

a card, ask for a card and be sure to email your contact information to them afterwards.

Deliver the ‘leave behind’ document to reinforce the things discussed at the meeting.

Follow up and let CUNA know how your meeting went- About a week after the meeting, follow up

with the staffer – thank them for their time and if there are any lingering questions. Let CUNA know if

there are any outstanding issues that need their attention or you’d like their assistance in following-up.

Avoid: Expressing disappointment for meeting with staff only or commenting on their age – While many

staffers are young, many are very well-educated and were hand-picked by their boss to represent them

on the issues about which you are meeting.

Expressing disappointment or concern about a meeting’s location – Space in Hill offices is very

limited. Be respectful of the space and other staffers in the office. A meeting is a meeting regardless of

where it’s held.

Confusing issues – Act as a credit union ambassador, not a political partisan. Credit union issues are

not partisan; express your personal opinions about other issues at another time.

Holding a grudge or having low expectations – Someone who might not have been on our side on an

issue last session, might be our champion this session.

Lobbying is a process, not an event.

Use your Hill meetings to build or renew the credit union relationship with your elected officials and their staff.

Documents

Gac%20briefing%20book web