By The Way
The By The Way newsletter is a great way to keep Kentucky credit unions informed of the latest updates in governmental affairs, compliance and regulations, education and training. In addition, By the Way highlights the difference credit unions are making on a daily basis.
Credit Union News
Exciting things are happening at the League, and we want to share some important news with you. It is our pleasure to inform you that we have relocated to a new, smarter business premises!
Our new address is 5111 Commerce Crossings Drive, Suite 210, Louisville, KY 40229.
The new office is conveniently located right off the Gene Snyder Freeway in the Commerce Crossings industrial park and offers a larger, more comfortable training room and better parking facilities.
Our contact information has remained the same:
- Phone: (502) 459-8023 or (800) 333-5285
- Email: www.kycul.org
If you have any questions on the relocation, please contact us. We look forward to continuing to work with you at our new address.
Volunteers build 70 beds for service project
Volunteers braved the heat on August 6th to construct beds for children who do not have their own.
Members Choice Credit Union and Ashland Credit Union conducted the Build-A-Bed Project at the MCCU parking lot, building 70 beds.
The Build-A-Bed Project is hosted annually by Morehead State University and provides beds to eastern Kentucky children from 2 to 12th grade who have to sleep on floors, couches or in beds with other children or family members.
The 70 applicants from the FIVCO area (Boyd, Lawrence, Carter, Greenup and Elliott counties) were not able to receive a bed at the original build day in April, prompting the credit unions to take action. Applicants were able to pick their beds up on Saturday and also received a brand new mattress, along with a bedtime bag containing sheets, a pillow, blanket, stuffed animal, book, alarm clock or nightlight and a hygiene kit.
CUNA Mutual Group’s Discovery Conference Available On-Demand
CUNA Mutual Group's ninth annual, day-long Discovery Conference brought together innovation experts and credit union leaders to help credit unions prepare for upcoming 2019 strategic planning sessions. The conference is now available on-demand, at no cost, until Feb. 28, 2019.
“Our Discovery Conference gave credit union leaders a tremendous opportunity to gain real insights from industry experts and learn what’s ahead. It’s just one of the ways we’re helping credit unions grow and prepare for the challenges of tomorrow,” said Robert N. Trunzo, CUNA Mutual Group’s president/CEO. “If you missed the live event, it’s not too late. You can still participate by accessing the conference content on-demand by simply registering,” he added.
The Discovery Conference, an online event, is hosted annually by CUNA Mutual Group for credit union leaders. Participants enjoy the conveniences of attending sessions and hot topic chats virtually with on-demand content available 24/7 following the conference. Discovery’s on-demand sessions are available at no cost.
Credit unions that register may leverage and share best practices and conference materials, including sessions, hot topic chats, and materials from the “inspiration stations” in the exhibit hall.
Scott Bales, global futurist, innovation and digital strategist, and managing director of Innovation Labs Asia, opened and closed the conference with keynote addresses helping credit unions uncover their competitive edge and how to serve the modern consumer.
Eight breakout sessions took place between the opening and closing keynote addresses and covered topics such as the economy, auto lending, data and analytics, lending in a rising interest rate environment, the future of payments, and what’s impacting small credit unions. View the agenda for more details.
All credit union employees are welcome to register to access conference content on-demand.
See why Heather Walter, CEO of Jefferson County Federal Credit Union, loves the Discovery Conference:
Kentucky's Credit Unions to Celebrate International Credit Union Day with GSTV
To celebrate International Credit Union Day, your League will once again partner with CU Solutions Group and Gas Station TV (GSTV) to run special credit union advertising at gas pumps across the state on October 12-18.
GSTV offers a proven and effective way to reach engaged audiences. This promotion will help share the credit union story across the state, increase awareness and engage new members in a big way.
The week-long promotion will highlight credit union benefits and will be shown at nearly 143 Kentucky gas stations with 281K weekly impressions valued at over $22,000… and we expect that to be even higher come October!
It’s Time for the Kentucky Recognition Award Nominations!
Each year, your League hosts an Awards Banquet to recognize the achievements of individuals, credit unions, and chapters who have made an impact in the credit union movement. We are now accepting nominations for the following categories:
Steve Brody Outstanding Volunteer Award
The purpose of the Steve Brody Outstanding Volunteer Award is to recognize the outstanding accomplishments, time and effort in support and promotion of the credit union idea put forth by volunteers in the Commonwealth of Kentucky. Deadline is August 31st.
Frank Moore Outstanding Professional Award
The purpose of the Frank Moore Outstanding Professional Award is to recognize the outstanding accomplishments, time and effort in support and promotion of the credit union idea put forth by the credit union professionals in the Commonwealth of Kentucky. Deadline is August 31st.
Richard Zimmerman Outstanding Young Credit Union Leader Memorial Award
The Richard Zimmerman Outstanding Young Credit Union Leader Memorial Award is presented to recognize the accomplishments of young people who have made significant contributions to the support and promotion of the credit union idea. Deadline is August 31st.
Wayne R. Woodward Philosophy in Action Award
The Wayne R. Woodward Philosophy in Action Award was established to recognize an individual, group of individuals, or organization that by act or deed, above and beyond the norm, personifies the credit union philosophy of "People Helping People." Deadline is August 31st.
We are also accepting submissions for Most Effective Chapter and Chapter in Attendance awards.
For further information on these categories and to submit a nomination, please click HERE.
Nominations Open for Excellence in Lending Awards
Applications are now being accepted for the annual Excellence in Lending Awards, which recognize outstanding credit union lending results and best practices. Credit unions demonstrating innovation in lending to meet member needs are encouraged to apply by the Sept. 17 deadline.
CUNA Lending Council and CUNA Mutual Group co-sponsor the Excellence in Lending Awards program. They established the program in 2000 to identify, recognize and share examples of lending excellence within the credit union movement. The award recognizes credit unions for their ability to serve members while sustaining sound financial performance.
Awards are given to recipients for their distinction in business lending, consumer lending (including home equity), mortgage lending, and low/modest means lending for the year 2018. Credit union applications are evaluated on: strategy (40 points), programs (30 points), and performance (30 points). All CUNA-affiliated credit unions in the United States are eligible.
Winners are announced at the 24th Annual CUNA Lending Council Conference, Oct. 28-31, in Anaheim, Calif. Airfare, hotel and conference registration for one representative of each winning credit union is included with the award.
Entry forms must be received no later than Sept. 17 to be considered.
October 14-17, 2018, New Orleans
Invigorate training and reignite your passion for talent development
The success of your credit union is tied directly to the knowledge and skills of your employees, making training an integral piece of your strategy. It can be difficult when you're charged with creating training that is interesting and impactful for your staff. At CUNA Experience Learning Live! you'll discover the latest industry best practices, breakthrough ideas and thoughtful insights into credit union training.
During three days of sessions you'll gain:
- Ideas to create a more positive learning environment at your credit union
- Strategies to empower your staff to realize their true potential
- Innovative training methods from forward-thinking speaker
Who Should Attend?
This conference is beneficial for credit union professionals looking to start, build and grow training and development programs at their credit union.
The 70th annual International Credit Union Day (ICU Day) is set for October 18. This year, the day’s main theme will be to “find your platinum lining in credit unions”.
“When you join a credit union, it means you’re never truly alone,” said Michelle Kamke, marketing projects manager of blended learning at CUNA. “It’s more than just a silver lining. It’s the security of other people—real members like you, sticking with you through hard times. We wanted to give credit unions a chance to reflect on the ways in which we’re able to make genuine and meaningful change in peoples’ lives.”
Credit unions and members are encouraged to share their stories on Twitter, Instagram, LinkedIn and Facebook using the hashtag #PlatinumLiningFound. CUNA is also offering special ICU Day giveaways at their Member Celebrations Store. For more information, visit cuna.org/icuday.
September 18-19 | League Office
Educational Investment: $239 per person per day
The Only Sure Thing about IRA Rules...is Change.
Day 1: IRA Essentials
9:00 a.m. – 4:30 p.m.
IRA Essentials gives attendees a solid foundation of IRA knowledge. Exercises are included throughout the day to help participants apply information to job-related situations. Attendees will leave this session able to work with IRA owners and process basic IRA transactions with confidence. This is a beginner’s session; no previous IRA knowledge is assumed.
Introduction and Establishing IRAs
- Identify the tax differences of a Traditional and Roth IRA
- Examine the process for establishing an IRA and the required documents
- Differentiate between the types of beneficiaries
- Learn about the Traditional and Roth IRA eligibility requirements
- Identify the contribution limit and deadline
- Communicate contribution reporting deadlines
- Identify federal income tax withholding requirements
- Examine IRS penalties and penalty exceptions
- Summarize the tax consequences of IRA distributions
- Communicate distribution reporting deadlines
- Differentiate between a rollover and a transfer
- Recognize rollovers between IRAs and employer- sponsored retirement plans
Who Should Attend?
You should attend this seminar if you:
- need to learn the basics of Traditional and Roth IRAs or
- want an updated, general refresher on IRA rules.
Day 2: Advance IRAs
9:00 a.m. – 4:30 p.m.
Advanced IRAs builds on the attendees’ basic knowledge to address more complex IRA issues their financial organizations may handle. This is an advanced session; previous IRA knowledge is assumed. The instructor uses real-world exercises to help participants apply information to job-related situations.
- Explain the recent changes affecting IRA owners.
- Discuss the Roth modified adjusted growth income limits.
- Recognize how recent changes may affect your financial organization.
Required Minimum Distributions
- Calculate a required minimum distribution (RMD).
- Discuss the RMD rules and reporting requirements.
- Describe beneficiary distribution options.
- Recognize the differences for spouse, nonspouse, and nonperson beneficiaries.
- Explain beneficiary payment deadlines.
- Summarize the restrictions on the movement between IRAs.
- Recognize the options available when moving from an employer-sponsored retirement plan to an IRA.
- Explain the result of violating the portability restrictions.
- Roth IRA Conversion Contributions
- Describe a conversion.
- Explain the effect of withholding on a conversion.
- Report a conversion.
- Define the consequences of an ineligible conversion.
IRA Owners Tax Forms and You
- Determine which tax forms an IRA owner must complete when certain IRA activity occurs.
- Understand which IRS penalty taxes may apply to IRA owners.
Who Should Attend?
You should attend this seminar if you:
- are an IRA administrator or member service representative who has working knowledge of basic IRA operations and wish to expand your expertise;
- are a compliance specialist with procedural oversight of IRA policies and practices; or
- are support personnel responsible for promotional materials that describe the services provided by your credit union.
September 25-26, 2018 | Nashville City Club
20th Floor, ServiceSource Building
201 4th Ave N
Nashville, TN 37219
Educational Investment: EARLY BIRD SPECIAL is $699 for TRG Members
Mark your calendar! Your League (as part of the TRGroup) and Woods Rogers Attorneys are teaming up to offer credit union professionals a two-day Human Resources Seminar in exciting Nashville, TN.
Graduate Level Courses
200 Fourth Ave N
Nashville, TN 37219
The Raiffeisen Group, LLC (TRGroup) is a collaboration of seven state leagues utilizing our collective strength to bring the best-of-class products, services and service to credit unions at the lowest possible cost. Our mission is to empower credit unions to better serve their members, build loyalty, expand market share, realize savings on certain operational functions, and grow revenue. We are committed to providing credit unions with state associations where they have the greatest level of input, ownership and control.
TRGroup was formed by the trade associations serving credit unions in Indiana, Kentucky, Louisiana, Mississippi, Tennessee, Virginia and West Virginia. Affiliated credit unions in those seven states boast a combined 10 million members, $100 billion in assets, and 25,000 employees.
Cyberattack is one of the most notable threats for credit unions and the number one concern for credit union regulators. TRGroup, a collaboration of seven credit union Leagues, has joined forces with Virginia-based Radford University’s IMPACT Lab to provide online award-winning IMPACT cybersecurity training to credit union staff responsible for keeping your data safe.
The Award-Winning Cybersecurity Training Is:
A competency-based education workforce development program focused on cybersecurity.
An online program designed for busy professionals, delivered in an asynchronous, self-paced manner and credit union professionals have up to twelve months to earn 18 credit hours.
Helping to prepare students for industry-aligned certification exams and teaches them theory, problem solving, analytical thinking and understanding computational logic.
Aligned with industry workforce standards (e.g., NIST) and employs research-based practices from cognitive science, analytics, simulation-based learning and gamification to ensure it is highly effective and engaging.
Delivered by Radford University, who has been designated a National Center of Academic Excellence in Cyber Defense Education by the National Security Agency and Department of Homeland Security.
Now is the time to expand your knowledge and skills and help further protect your credit union’s assets! Learn more at trgroup.org/impact.
October 10-12, 2018 | Louisville Marriott Downtown
Every day, you make a positive difference in the life of a member and in your communities. Across the State, we are all working toward one shared vision in which Kentuckians choose credit unions as their financial partner. In October, let’s celebrate how credit unions make things happen and how we make it matter!
The 84th KCUL Annual Meeting and Convention features a comprehensive agenda on top-of-mind issues, the KCUL Business Meeting, a golf outing, an awards banquet, entertainment and an extensive showcase of business partners and exhibitors.
Whether you are a credit union professional or volunteer, from a small or large credit union, you will find useful information geared towards your needs.
For more information, please visit http://kycul.org/index.php/education/annual-meeting-convention.
EARLY BIRD REGISTRATION IS OPEN!
Early Bird Bundle (Expires 8/31/2018)
Includes conference registration, Exhibit Hall events, Wednesday Opening Dinner, Thursday Awards Banquet, Governmental Affairs Breakfast, and Members’ Business Meeting.
$499 PROMO CODE: EARLYBIRD
$85 REGISTER >>
Includes conference registration, Exhibit Hall events, Governmental Affairs Breakfast, and Members’ Business Meeting.
$350 REGISTER >>
Hotel (Reservation Deadline is 9/18/2018)
$169 per night
Simple ideas for increasing breadth, depth, and retention of existing banking relationships.
by Craig Sauer, Senior Editor for Credit Union Magazine
Increasing member share of wallet--the amount of business a member does with your credit union versus banks or other financial services companies--is a constant battle.
In the CUNA Councils webinar "The Alchemy of Increasing Member Share of Wallet," Michael Shallanberger, executive vice president & director of consulting services, Schneider Sales Management, offers four simple ideas for increasing breadth, depth, and retention of existing member relationships.
1. Re-board single service or low service households.
First, ask your members in face-to-face conversations or focus groups, "Why don't you do more of your business with us?"
From there, your initial focus should be to sell them more of what they already use. Then, sell "most like" products.
And when the relationship deepens, that is when you can explore more products beyond the member's initial reason for doing business with you.
2. Convert indirect loan members to "full-fledged" members.
Members generally only care about their new vehicle. It is difficult to convert these indirect relationships into full-fledged members.
"It can be done, but there is some work involved," he says.
The conversion often takes three to four contacts during the first 90 to 120 days of your indirect relationship.
The first call needs to review the loan details and thank the member. You should also seek to provide relevant added value, Shallanberger says.
You can try auto maintenance discounts, travel discounts or offers, car washes or detailing coupon book, or rate discounts for use of auto pay on the loan.
On the second call, you want to earn the right to continue talking to them by saving them money through refinancing or by other means, he says.
"If you can do something to put more money in their pocket, they're going to change the way they think about you," Shallanberger says.
The third call should be about switching the member to a deposit relationship. Activate a savings or member account and then target checking accounts, he advises.
3. Consolidate other relationships.
Focus on winning the member's next financial decision, instead of getting them to switch financial institutions right away.
If you can collect a couple of wins in a row, you're much more likely to consolidate the relationship in the future, he says.
Have your front-line employees stress:
You can protect the member against fraud and identity theft if they have all their business with you.They could be losing every year by having their business spread around through extra fees, lost interest, and wasted time on banking.
"If we can get our front-line folks talking like this, it is going to lead to the conversations that are going to take us to more consolidation," says Shallanberger.
4. Win future business.
Life moments, such as going to college, marriage, buying a home, or retirement, create the best sales opportunities.
Profile your members for upcoming life changes and then provide them relevant offers at the right time, he says.
The first business or person who has the conversation with a member about a new need generally wins the business, he says.
"If we are not the first ones talking to them, there is a good chance we're going to lose, even if our product is better," Shallanberger says.
J. Marvin Hawk, Chairman of the Board of Directors for Fort Knox Federal Credit Union, was chosen as Volunteer of the Year by the National Association of Federally-Insured Credit Unions (NAFCU). Hawk and other winners in NAFCU’s 2018 Annual Awards Competition were honored during NAFCU’s 51st Annual Conference and Solutions Expo in Seattle, Wash., June 19-22, 2018.
"Marvin’s dedication as a volunteer since 1978 is reflected in the continued success of Fort Knox Federal. His exceptional leadership has contributed to the credit union's growth from $52 million in assets to over $1.5 billion," said Ray Springsteen, CEO of Fort Knox Federal Credit Union. “This award reflects his exemplary volunteer service to the credit union on behalf of our members.”
Hawk won the award based on his dedication to representing the credit union members' interests, commitment to professional development, and participation in the credit union community and community values. As current chairman of the board, Hawk is an adamant believer in the credit union philosophy of “People Helping People” and continually encourages his fellow board members to advance their training.
Annual Awards Competition winners were celebrated during the conference’s general session and breakfast on June 20 and will be profiled in the July-August edition of The NAFCU Journal magazine.
Pictured: (Left to Right) Otto Tennant, Jr., Board Member; Jo Exler, Board Treasurer; Richard L. Ardisson, Board Secretary; Wanda Parker, Board Member; Dan Berger, NAFCU CEO; J. Marvin Hawk, Board Chairman & NAFCU Volunteer of the Year Award Winner; George Pennington, Board Member; Anthony Demangone, NAFCU Executive Vice President
Lynn Pleasant of Fort Knox Federal Credit Union earned the Certified Credit Union Executive (CCUE) designation as a member of the graduating class of CUNA Management School, which was held in Madison, Wis. from July 15-25, 2018.
“On behalf of Credit Union National Association, I want to congratulate Lynn Pleasant on completing the substantial undertaking that is CUNA Management School,” said Kristin Ryan, director of learning events at CUNA. “Over the last three years, she has mastered the art of credit union leadership, proven her capacities as an executive and developed a unique, clear vision for success. I look forward to seeing how she will transform the movement.”
Pleasant has been serving Fort Knox Federal members since 1999. She initially joined the credit union as a teller and has worked her way up throughout the organization, serving as Member Service Specialist before managing several different branches and the call center. She was promoted to Regional Manager earlier this year and now has the opportunity to encourage others to do the same.
“I have been very fortunate in my career to have mentors within our organization who took a personal interest in helping me with my career development,” says Pleasant. “It’s so rewarding to now be in a position to help others succeed and share my passion for the credit union movement!”
Pleasant is active in several community organizations, including the Hardin County Chamber, Toys for Tots, Rotary International and Big Brothers/Big Sisters. She attended Elizabethtown Community & Technical College in addition to graduating from CUNA Executive Management School, University of Wisconsin in July of 2018.
Fort Knox Federal Credit Union’s Board Vice Chairman, Reba Watson, was inducted into the Defense Credit Union Council (DCUC) Hall of Honor earlier this week at the council’s 55th Annual Conference in Williamsburg, Virginia.
Watson began her credit union service 33 years ago as a member of Fort Knox Federal’s Planning Committee and later served on the Supervisory Committee until 1990, when she was first elected to the Board of Directors. Her leadership abilities were recognized by her fellow Board members prompting her election to multiple terms as Vice Chairman and Chairman.
She completed serving a second term as Chairman from 2008 through 2009. When many financial institutions struggled to provide basic services due to the recession, Fort Knox Federal set asset growth records, expanded into new service areas and became the largest Kentucky-based credit union. Fort Knox Federal also underwent a substantial advancement in its governance structure during this same timeframe. While serving as Chairman of the Board, Watson was instrumental in initiating the Board Governance Policy.
“Reba has served – and continues to serve – Fort Knox Federal and the entire defense credit union community tirelessly,” said Fort Knox Federal President and CEO Ray Springsteen. “Her leadership has been vital to the credit union’s continued growth and ability to serve more than 100,000 members today. She embodies the people helping people philosophy and is always seeking new ways to assist members, local organizations and our broader military community.”
Among other initiatives, Watson has been a major proponent of Military Saves Week, the credit union’s support of USA Cares, Operation Veteran 2 Entrepreneur, and a special memorial sponsored by Fort Knox Federal that today stands in the Kentucky Veterans Cemetery Central in Radcliff, KY.
KIT Federal CU is passionate about making a difference in the community. Whether it’s volunteering at a non-profit organization or donating to a cause, KIT is ready to take it on. This August, it was helping some local kids get ready to go back to school.
“We learned of a family of five that were in need of some back-to-school items and we wanted to help. We put together a list of the items needed and each employee and board member took it upon themselves to purchase what they could off the list. Once we received all of the supplies, we filled up backpacks and delivered them to the family,” said Andrea Trujillo, VP.
KIT Federal CU also helped another family with a much-needed back-to-school: Shoes. On August 14th, KIT picked up the teens and took them to Shoe Carnival where they both picked out two new pairs of shoes. The teens were ecstatic.
Bellarmine University announced on August 20th that Park Community Credit Union has become the school's "Official Credit Union" as well as an "Official Partner" of Bellarmine men's basketball and Bellarmine athletics.
The sponsorship includes co-branded spaces on Bellarmine's campus, a Bellarmine University ATM debit card, sponsored events and access to a full suite of financial services.
Among the co-branded spaces is the basketball court, which will be known as "Park Community Credit Union Court at Knights Hall." Other considerations of the partnership include Park Community serving as the official sponsor of several popular campus events such as the Alumni Trivia Night and the Basketball Season Ticket Kickoff Event among others.
Sandy Gogan, Senior Vice President of Retail Services for Park Community Credit Union, said the partnership with Bellarmine is a significant community relationship for Park Community as it continues to expand its presence in the Louisville region.
"Bellarmine University is recognized as one of the top educators in the region," Gogan said. "We've always had a close relationship with them, and this new sponsorship reflects Park Community's continuing support of outstanding local Louisville institutions."
Jim Spradlin, CEO of Park Community, added, "Our mission is to make our local communities more successful. Partnering with Bellarmine helps us deliver quality financial services to the local community and invest in local philanthropic initiatives."
Bellarmine Director of Athletics Scott Wiegandt said the new partnership will help the Knights athletic programs continue to thrive and improve on a national and conference-wide scale. Last academic year, Bellarmine ranked 32nd in the nation—its highest in school history—in the Learfield Cup, which awards points to NCAA institutions based on athletic performance in all sports at a national level.
"We couldn't be more excited to strengthen our relationship with Park Community Credit Union," Wiegandt said. "Park Community Credit Union is one of the most respected financial institutions in the area and their mission to give back to the local community aligns perfectly with our goals of overall excellence and community service."
Park Community Credit Union is pleased to announce that their risk managers Drew McGarvey and Don Browning have earned the prestigious designation of Certified Risk Manager (NCRM) by the National Association of Federally-Insured Credit Unions (NAFCU).
The new credentials were earned by attending the annual NAFCU Risk Management Seminar and passing the associated exam covering Enterprise Risk Management (ERM) methodology and NCUA regulatory risk requirements.
“The difficulties of the ever evolving risk and regulatory landscapes make these conferences and certifications very important. We want to be certain our members are safe and Park Community Credit Union makes sure we have the training to protect them the best way possible.” Drew and Don said in a joint statement.
Credit union certifications like these continue to be a focus for Park Community Credit Union as they prepare their staff to thwart the constant onslaught of threats to their membership.
Anthony Spitz has been named as Chief Technology and Operations Officer at Service One Credit Union.
“I am delighted to welcome Anthony to Service One Credit Union and am looking forward to working alongside him. I am confident that our credit union will benefit immensely from Anthony’s extensive experience and impressive track record,” said Rebecca Stone, President/CEO.
Spitz comes to Service One Credit Union from Heritage Federal Credit Union, where he served as Chief Information and Technology Officer for two years. Prior to his time there, Spitz worked for United Companies, most recently in the role as Senior Director of Information Technology. During his career, Spitz has held numerous technical roles, and has amassed over 20 years of experience in the field of IT. Spitz has a Bachelor’s
Degree in Information Technology with Programming and Operating Systems, and a Master’s Degree in Management Information Systems, from the University of Phoenix, inPhoenix, Arizona.
When asked about his new position, Anthony stated, “I am honored to have been offered this opportunity at such a great organization and am very much looking forward to meeting the rest of the team and getting started serving the Service One membership.”
Service One Credit Union is pleased to announce the following promotions of its associates:
Michelle Dyer was recently promoted to Vice President, HR and Organizational Development. Michelle joined Service One Credit Union in 2017 as Director of Education. She has 13 years of Human Resources and training and development experience with 10 years in a leadership role. Dyer currently holds a part time faculty position at Western Kentucky University teaching HR Management and Leadership courses. Michelle is a graduate of Western Kentucky University, Bowling Green, KY with a Bachelor of Science degree in HR management and is a graduate of University of Louisville with a Master of Science degree in HR and Organizational Development. She has earned her Professional in Human Resources and SHRM Certified Professional certifications. Michelle is currently on the board of the Training Consortium of South Central Kentucky at the Bowling Green Area Chamber of Commerce. As VP, HR and Organizational Development, she will lead the HR/training and development department.
Justin Morris has been promoted to Vice President of Enterprise Risk Management and Member Support. He joined the Credit Union team as a part-time teller in 2005 after graduating from Barren County High School, Glasgow, KY. He has served in many roles in his tenure, six years in the Credit Union’s Accounting Department as Administrative Assistant to the CFO, Accountant, and finally Senior Accountant. Most recently, Justin served four years as the Credit Union’s Assistant Vice President of Compliance and Security. Justin is a two-time graduate of Western Kentucky University with a Bachelor of Science degree in Accounting and Finance and a Master of Business Administration. He was designated a Credit Union Compliance Expert in April 2014 and became a Certified Public Accountant in September 2014. Justin serves as Treasurer for the Bowling Green/Warren County Habitat for Humanity Affiliate. As Vice President of Enterprise Risk Management and Member Support, Justin will champion the organization’s risk management efforts while providing exceptional member service through his Member Support team.
Mark Floyd has been appointed as Service One’s Chief Credit Officer. Previously, Mark took on the role of Vice President of Lending where he helped grow the loan portfolio by simplifying some of our loan offerings. Mark moved to Bowling Green in 2016 from Meridian, MS. Floyd graduated from Delta State University, Cleveland, MS with a Bachelor of Business Management Degree. He has over 19 years of financial institution experience in branch management, consumer lending, mortgage lending, commercial lending and loan portfolio management. Floyd’s passion for lending continues to empower the Service One team to think above and beyond with our lending products.
“It is a great honor to have these individuals as part of Service One’s Leadership Team,” said Service One CEO/President Rebecca Stone. “Their dedication to providing a better life experience to our members and associates is outstanding.”
Town Hall Webinar Details:
Thursday, September 6, 2018 at 11:00 a.m. PT / 12:00 p.m. MT / 1:00 p.m. CT / 2:00 p.m. ET
During this webinar, we will discuss two recently issued final rules from the NCUA:
- Voluntary Mergers - This rule was issued with the intent of providing members of federally-insured credit unions with greater transparency when those credit unions seek voluntary mergers. While the original proposed rule applied only to federal credit unions (FCUs), the final rule applies to both state- and federally-chartered credit unions. Learn what the new requirements will be if your credit union is considering a future merger before the rule goes into effect on October 1, 2018.
- Field of Membership - The NCUA has amended its regulations governing the chartering and field of membership (FOM) rules under Part 701. FCUs can learn how these changes will provide additional flexibility to establish their own well-defined communities prior to the effective date of September 1, 2018.
Fill out the form to register.
*Town Halls are brought to you as a part of your League membership.
The Financial Accounting Standards Board (FASB) agreed to propose a CUNA-advocated for change to its current expected credit losses (CECL) standard at its Wednesday board meeting. CUNA wrote to FASB in May urging it to clarify CECL’s effective date for credit unions. During the meeting, FASB Chairman Russell Golden agreed with comments in our letter that FASB originally intended to provide credit unions and similar types of entities additional time to implement the standard.
While FASB staff has not yet released the details of the proposed change, based on discussion during the meeting, CUNA expects the clarification will fully remedy the issue.
CECL was adopted in June 2016, and uses an “expected loss” measurement for the recognition of credit losses.
FASB intended to create tiered effective dates to provide implementation flexibility for smaller and less complex financial institutions, a move CUNA supported.
While FASB appears to have sought to provide additional implementation time for non-public business entities (PBE), the standard as originally issued effectively required non-PBEs to adopt the standard at the same time. State and federal chartered credit unions are considered non-PBEs.
CUNA’s letter supported a recommendation from the American Institute of Certified Public Accountants, who called for clarity regarding non-PBEs.
The board will accept public comment for 30 days on its proposal.
The NCUA has issued a proposed rule to provide clarification to current regulations under Part 701 regarding loans and lines of credit to members. The proposed rule would apply to federal credit unions (FCUs), and would make the following changes:
- Identify loan maturity limits by grouping them together in one section;
- Clarify the maturity for a new loan under GAAP is calculated from the new date of origination; and
- Express clearly the limits for loans to a single borrower or group of associated borrowers.
In addition, the NCUA is seeking comment on whether it should provide for longer, more flexible maturity limits on certain loans, such as 1-4 family real estate loans, home improvement loans, mobile home loans, and second mortgages.
Comments are due on October 9, 2018.
Click here to view the proposed rule.
Last May, FinCEN issued an administrative ruling to provide a 90-day limited exceptive relief to covered financial institutions from the obligations of its Customer Due Diligence (CDD)/Beneficial Ownership rule with respect to certain financial products that automatically rollover and renew and were established before the rule’s effective date of May 11, 2018. The 90-day relief period was set to expire on August 9, 2018. However, FinCEN has announced an additional 30-day extension, which will extend the limited exception up to and including September 8, 2018.
Click here for additional information.
The CFPB has created a File Format Verification Tool for HMDA data collected in 2018 and submitted in 2019. Credit unions can use the new tool to test their HMDA files to see if they meet certain formatting requirements specified in the HMDA Filing Instructions Guide.
In addition, the CFPB has announced the availability of some new HMDA reports:
- The Dynamic National Loan-Level Dataset report is updated weekly to include late submissions and resubmissions. Loan/Application Register (LAR) and Transmittal Sheet (TS) records are recorded separately.
- The National Aggregate reports summarize lending nationwide.
- The Aggregate reports summarize lending by Metropolitan Statistical Area (MSA).
- The Disclosure reports summarize lending by institution, both nationwide and by MSA.
Click here for additional information.
Q1. I’ve heard rumors that we have to start deleting copies of driver’s licenses or other ID cards after using them to verify a person’s identity. Can you provide clarification?
A1. Last May, the Economic Growth, Regulatory Relief, & Consumer Protection Act (SB 2155) was signed into law. SB 2155 contained several provisions, including numerous changes to the Dodd-Frank Act. One of those provisions was Section 213, which states that financial institutions can copy or scan a person’s driver’s license or personal identification card for the purpose of verifying the person’s identity, but must delete the copy or image after use.
Since the new law conflicts with existing regulatory requirements under the Bank Secrecy Act (BSA), and guidance has yet to be issued to provide clarifications on any changes to the requirements, there is no need to change your existing processes at this time. That being said, it may be a good idea to have some preliminary conversations within your credit union on the possible impacts to your current processes, in case the regulators issue some form of guidance that states these IDs are not able to be retained.
NCUA issued Supervisory Letter (SL No. 18-01) to address credit union's compliance with the new BSA Customer Due Diligence and Beneficial Ownership Rules. NCUA states that once the BSA Questionnaire and Consumer Compliance Violations citations have been added to AIRES, which is expected next month (September 2018), field staff will begin evaluating credit unions' compliance with the new CDD rules.
However, the agency notes that, for now, field staff will not identity non-compliance as a significant BSA violation, provided the credit union is making a good faith effort to comply with the new rules.
With this Supervisory Letter, the agency included the updated Customer Due Diligence section from the FFIEC BSA Examination Manual, as well as the new section: Beneficial Ownership Requirement for Legal Entity Customers.