Inside - Maine Credit Union League

“We are committed to promoting the
growth of credit unions through service
excellence in the delivery of quality
products and services.”
Volume 54 Number 10
League President:
“Convenience, Technology,
Cooperative Structure All
Driving Maine CU Growth!”
For Maine Credit Union League President John
Murphy, his Annual Management Roundtable Discussion was filled with an abundance of good news for
Maine’s credit unions. Speaking to a packed audience of 110 credit union leaders at the Samoset in
Rockport on September 22, Murphy covered a wide
range of topics including the League’s role in providing impact, advocacy and involvement to and on
behalf of Maine’s credit unions.
Murphy’s presentation opened with the impressive
mid-year statistics for Maine’s credit unions, showing assets, savings and loans all growing at a healthy
pace. Perhaps, most impressive though, were the
John Murphy, President of the Maine
membership figures showing membership now at
Credit Union League, discussed both
660,000 members in Maine. “We have made an
opportunities and challenges facing
impact on consumers, especially millennials because
Maine credit unions in his discussion
the cooperative nature and structure of credit unions
at the Management Roundtable at the
align closely with their values.” According to Murphy, Samoset.
the League and credit unions’ commitment to convenience and key investments in technology have also
contributed to growth. “With the Shared
Branching Network and the SURF ATM
Network, we are able to deliver more
convenience to consumers than any other
financial institution in the state. That is a
significant advantage that positively impacts the position of credit unions longterm. Additionally, products and services
such as remote check deposit and online
account opening are proving very popuLeague Board members, Kyle Casburn, President/CEO
lar with consumers, and strengthening
of Seaboard FCU, and Joann Bisson, President/CEO of
the multi-channel delivery method that
Trademark FCU, listen to League President John
is necessary in today’s financial services
Murphy’s presentation at the Roundtable. A record
environment.”
110 credit union leaders attended this year’s event
September 22-23 in Rockland.
Management Roundtable ... Continued on page 3
October 2015
2016 Presidential
Race Questions?
Hear From 2-Time Winning
Presidential Campaign
Strategist
Karen Hughes and President Bush outside the Oval
Office at The White House. Hughes is the opening
speaker at the League’s 2015 Legislative Forum in
November.
From a former reporter to one of the most
influential women ever to serve in The White
House, Karen Hughes is no stranger to what
it takes to be successful, especially when it
comes to running a Presidential Campaign.
In her role as one of George W. Bush’s
campaign managers, strategist and advisor,
Karen Hughes... Continued on page 4
Inside
Avoiding Risk is Wrong. . . . . . . . . . . . . . . . . . . . 2
Management Roundtable. . . . . . . . . . . . . . . . . . 3
Event Calendar. . . . . . . . . . . . . . . . . . . . . . . . . . 4
Political Events . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Honor Roll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Compliance News. . . . . . . . . . . . . . . . . . . . . . . . 6
CU Leaders:
“Business Lending
Offers Great
Opportunities”
A panel of credit union CEOs share their business lending expertise at the Management
Roundtable. Pictured l-r: John Reed, President/
CEO of Maine Savings FCU and Chair of Business
Lending Solutions (BLS); Roger Sirois, President/
CEO of Atlantic Regional FCU; and Ryan Poulin,
President/CEO of New Dimensions FCU and New
Dimensions Business Services (NDBS).
“Business loans today are where mortgages
were for credit unions in the 1980s. Now,
mortgages are an important part of our
business; the same can happen for business
lending,” explained Ryan Poulin, President/
CEO of New Dimensions FCU and NDBS,
LLC., as part of a panel discussion by three
Maine CU leaders who have extensive experience with business loans in Maine. While
the panel had different backgrounds, they
were all in agreement that credit unions are
well-positioned to do more small business
loans, and offer tremendous potential for
growth.
John Reed, President/CEO of Maine Savings FCU and President of Business Lending Solutions, a subsidiary of CUSO Home
Lending, said, “Small businesses are the lifeblood of communities across Maine, much
like credit unions. Communities prosper
if small businesses prosper so commercial
lending is a great way for credit unions to
support our communities. It’s a natural fit.”
For Roger Sirois, President/CEO of Atlantic
Regional FCU, the expansion into small
business lending is “filling a void because
banks don’t want small money loans. It’s
also another way to serve our members because we all have members that have small
businesses.”
The panel encouraged credit unions to
consider doing more business lending but
cautioned that the decision should be “deliberate and takes time. It’s a process but
one worth exploring.”
2
ManagementRoundtable
“Avoiding risk is wrong,”
Argues Former NCUA
Board Chair
Few in the credit union movement have the
perspective of Dennis Dollar, who, before
serving as Chair of the National Credit Union
Administration (NCUA), the federal regulator,
was a credit union CEO of a small CU in Mississippi. That’s why when Dollar speaks he
offers a point of view that considers both the
position of the regulated and the regulator.
He said that today’s regulatory environment
has made many credit unions “risk-averse
for fear of upsetting the NCUA. Don’t make
decisions based on what the regulator might
think. A credit union’s job is not to avoid risk;
it is to manage it.”
Former NCUA Board Chair, Dennis Dollar,
addresses Maine CUs.
Dollar also called on credit unions to do more collaborating. “You have something that
banks do not – a long-history of collaborating and cooperating. Shared branching has
become a great differentiator for credit unions and, believe me, you will not see Bank
of America welcoming Wells Fargo customers or vice versa to conduct fee-free transactions.”
He concluded his remarks by urging credit unions to view members as consumers, first.
“The process of bringing them from consumers to members does not happen overnight.
If credit unions can meet consumer needs, as we build them into members, they will
come and stay.”
Cybersecurity Assessment Tool
Designed To Help CUs
In June, the NCUA was part of a joint effort with
the FDIC and other federal agencies in introducing a
new Cybersecurity Assessment Tool to help financial
institutions better identify and mitigate fraud. In a
presentation at the Maine CU League’s Management
Roundtable last month, Patrick Truett, Information
Systems Officer at NCUA, said the new tool aims to
“help measure preparedness and build awareness.”
Truett said that the NCUA and the other members
involved understand that “fraud and risk are realities in
today’s environment. By developing a tool that is used
by all financial institutions, we hope to create a centralized database of information, respond and distribPatrick Truett, Information Systems
ute information in a more timely manner, and increase Officer with NCUA, gives an overview
of the Cybersecurity Assessment Tool
communication among all parties.”
to CUs at the Roundtable.
Examiners will begin to utilize the new tool in 2016
and, according to Truett, will be most focused on
whether credit unions conduct regular testing, respond with timely patches to vulnerabilities, and have a formal program in place. “Threats are dynamic so this is an on-going
process,” he added.
ManagementRoundtable
Engagement Key To
Long-Term Members
What is member engagement? “It often determines
the type of relationship and penetration a credit
union has with a member,” stated Lee Wetherington, Director of Strategic Insight for ProfitStars, a
division of Jack Henry, at the League’s Management
Roundtable. According to Wetherington, member
engagement is about whether you have a member
who has a $25 share account or a member who
utilizes multiple services. “Member engagement is
repeated, satisfying transactions that strengthen the
emotional connection a member has with a credit
union. Checking a balance is not engagement.”
Wetherington said that in order for credit unions
to achieve member engagement, you have to get
the user experience right. “If you get the user
experience right, you get engagement. If you get
engagement, you get trust and all of the benefits
that goes with it,” he explained.
Research and trends as presented by wellknown strategist, Lee Wetherington.
Because today’s member interacts much differently, the methods of engaging a member
are different. Wetherington said that technology has changed the way in which members
interact with their credit union. “Credit unions should not be all things to all members
through all channels and all devices. What matters is that credit unions are the right things
to all members through the channels and devices they need and want.”
While branch usage is down, branches are still an important part of the equation. “The
biggest drivers of consumer satisfaction with a financial institution are quality of mobile/
online experience, staff, and proximity to branches, even though consumers don’t use them
much. Your mission is to find the balance that is right for your members. How do you do
that? You ask them,” he concluded.
Patrick Adams Discusses
‘Hmm’ Moments
Rather than ignoring those moments that make you go
‘hmm’, Patrick Adams, President/CEO of St. Louis Community
CU and a veteran of nearly four decades in the CU system,
called on credit union leaders to “think about them before
dismissing them. Sometimes, those ‘hmm’ moments are the
transformative thoughts that must be acted upon in order to
be transformative.”
In his presentation titled, “Thrive in the Shift,” Adams told his
Roundtable audience that credit unions must be bold, innovative and planning for the future on a regular basis. “Stability is
not the goal…continuous change is the goal. The marketplace is changing all of the time,
and if you are not willing to change with it, you do so at your own risk.”
Patrick Adams
Adams said that all of the components for credit unions to “thrive,” are in place, beginning
with millennials. “Millennials can’t stand banks but what are you doing to attract them.
The market is there for the taking – are you taking it?”
While ‘things that make you go hmm’ can be uncomfortable, Adams said success is not
about being comfortable. “It’s about being dynamic and thriving in a shifting marketplace.
Listen to your members, and leverage what they tell you with additional research and planning. Your success and future depends on it.”
3
Management Roundtable... Continued from front
The advocacy role of the League and
Maine’s credit unions also merited focus,
especially the successful passage of the bill
to provide an expedited foreclosure option
during the last legislative session, as well
as the passage of IOLTA legislation in Congress and leadership roles on cybersecurity,
member business lending, elder financial
abuse and regulatory relief. The advocacy
efforts also relate to a strong statewide
awareness campaign that further promotes
credit unions, being a regular contributor
to media stories on a variety of topics, and
raising funds for ending hunger in Maine,
an effort that has raised more than $5.9
million to help end hunger since 1990.
While opportunities and successes highlighted much of the presentation, Murphy
also noted some of the challenges facing
Maine’s credit unions, including changes
in the way payments are done, EMV integration and staffing. “The competition is
changing from traditional banks to nontraditional institutions that are working to
attract consumers. We are also concerned
with increasing regulations and the impact
that has on serving our members, as well
as fraud and a changing payment systems
environment. Apple Pay and other mobile
payment systems are here to stay, and our
ability to integrate these into our operations is crucial.”
The overall tone of Murphy’s presentation
and the subsequent discussion among
Maine’s credit union leaders was one of
“hope, momentum, and the future.” “By
working together, we are making great
progress on our goal to have Maine credit
unions be the primary financial institution
for the majority of Maine consumers,”
added Murphy.
October 11–17 is International
Credit Union Week 660,000
Mainers are celebrating.
Karen Hughes... Continued from front
Hughes helped Bush get elected to the
Presidency twice.
Although the 2016 Presidential election
is still a year away, the intensity of the
race, especially on the Republican side, is
already quite high. Why is Donald Trump’s
message appealing to so many people?
Who is best positioned to overtake Trump’s
standing at the top of the polls – Carly
Fiorina, Ben Carson or someone else?
Does President George W. Bush’s brother,
Jeb, have what it takes to become the
third Bush nominated for the Presidency?
On the Democratic side, Hughes will discuss Hilary Clinton’s electability, and the
opposition she faces from Senator Bernie
Sanders and, potentially, Vice President Joe
Biden. Hughes’ experience and knowledge of presidential politics and campaign
strategy will provide a perspective few
others have this early in the Presidential
campaign. On Wednesday, November 4,
Hughes will share her thoughts and observations with attendees to the Maine Credit
Union League’s Annual Legislative Forum
at the Harraseeket Inn in Freeport.
While Hughes is the opening speaker at
the Forum, she is by no means the only
speaker that audiences will enjoy. Trey
Hawkins, VP of Political Affairs for the
Credit Union National Association, will talk
advocacy and the role that the new Member Activation Program (MAP) can have
in political engagement and advocacy. In
the afternoon, a panel of Maine legislators including House Minority Leader,
Ken Fredette, who serves on the Board of
Sebasticook Valley FCU; Assistant House
Majority Leader, Sara Gideon; Rep. Barry
Hobbins, House Chair of the Judiciary
Committee; and Sen. David Burns, Senate
Chair of the Judiciary Committee. The
panel will shed light on the past Legislative Session, specifically on the successful
passage of the League’s bill to provide an
option for expedited foreclosures, and give
an early preview on what the next Legislative Session might look like.
Registration for the Forum is off to a
strong start but there is still plenty of time
to register. Go to the Event Calendar
under the CU Portal area of the League’s
website at www.mainecul.org; email
[email protected]; or call Member
Services at 800.442.6715.
4
EventCalendar
October
1
Maine CUs’ Ending Hunger Coordinator Rally & Information Event, Good Shepherd Food
Bank, Auburn
5-7
Hike the Hill, Washington, D.C.
6
Bankruptcy and Collections Conference, Hilton Garden Inn, Freeport
8
Maine CU YPN, YP Institute, Maine State CU, Augusta
9
Maine CU YPN, YP Institute, CUSC
9
Member Services Webinar, Understanding the Credit Report, Online
11-17 International Credit Union Week, Statewide
13
Synergent Learning Center, Business Continuity: From BIA to BCP, CUSC
14
Synergent Technology Services Webinar, Making Collections Work for You, Online
15
Credit Union Day, Statewide
19
Member Services Webinar, Understanding the New Integrated Disclosures, Online
20
Credit Union Orientation, CUSC
21
Member Services, Certified Teller Specialist – Part Three, Bangor FCU, Bangor
22
Synergent Learning Center Webinar, Understanding ACH Posting, Online
23
Synergent’s 2015 Technology Workshop, Portland Regency Hotel & Spa, Portland
29
Synergent Payment Systems Webinar, Visa Chargeback Updates, Online
Register online at www.mainecul.org and click on Event Calendar.
Congressman Bruce Poliquin Reception
The Maine CU League held a Fundraising Reception at the Samoset for Maine’s first
member of the House Financial Services Committee in nearly 50 years, Congressman
Bruce Poliquin.
“As a credit union member, I appreciate what you do for your
members and for your communities,” remarked Congressman
Poliquin, pictured here with Joe Gervais (l), President/CEO of Midcoast FCU, where the Congressman is a member.
York County FCU’s President/CEO Scott
Chretien, who is also a member of the League’s
Board and Chair of the Political Involvement
Committee, exchanges greetings with
Congressman Poliquin.
Rep. Barry Hobbins Luncheon
To thank him for his sponsorship, leadership and support of legislation to provide for an
option to have expedited foreclosures, which takes effect on October 15th, the League held
a Luncheon for Rep. Barry Hobbins, House Chair of the Judiciary Committee, in his district.
Rep. Hobbins, Maine CU League President, John Murphy, and Judy Morin,
President/CEO of Ocean Communities
FCU, visit at a Luncheon held in appreciation of Rep. Hobbins’ sponsorship of the
foreclosure legislation. Craig Pendleton,
Board Chair at PeoplesChoice CU, is
pictured in the background.
HonorRoll
5
MaineCUNews
Recognized for their educational achievements in August:
STAR
Advanced Lending Certificate
Donna Bernier, York County FCU
Sales
Donna Bernier, York County FCU
Colleen McGuiggan, Midcoast FCU
Dorian Jacobs, Seaboard FCU
Consumer Lending Certificate
Donna Bernier, York County FCU
Marissa Trudeau, Saco Valley CU
Dorian Jacobs, Seaboard FCU
Member Services
Marissa Trudeau, Saco Valley CU
Dorian Jacobs, Seaboard FCU
Accounting
Dorian Jacobs, Seaboard FCU
Marissa Trudeau, Saco Valley CU
Financial Management
Elaine Jandreau, Acadia FCU
Washington Award
Elaine Jandreau, Acadia FCU
Colleen McGuiggan, Midcoast FCU
Member Services Level II
Colleen McGuiggan, Midcoast FCU
Technology
Colleen McGuiggan, Midcoast FCU
Professional Development
Colleen McGuiggan, Midcoast FCU
Lincoln Award
Colleen McGuiggan, Midcoast FCU
CUA
Business Communication Skills
Tamara Benson, Rainbow FCU
Deb Cote, Rainbow FCU
Denise Foss, Rainbow FCU
Penny Lacasse, Rainbow FCU
Amy Fox, Rainbow FCU
Tenisha Parise, Rainbow FCU
Peggy Polley, Rainbow FCU
Melissa Thurlow, Rainbow FCU
Velora Tuominen, Rainbow FCU
Introduction to Credit Unions
Gloria Ruede, Rainbow FCU
Peggy Polley, Rainbow FCU
Velora Tuominen, Rainbow FCU
Denise Foss, Rainbow FCU
Deb Cote, Rainbow FCU
Tammy Foster, Rainbow FCU
Sherri Llewllyn, Rainbow FCU
Darlene Lurvey, Rainbow FCU
Amy Fox, Rainbow FCU
Managing Member Accounts
Wanda Charest, Rainbow FCU
Bankruptcy
Jamie Myshrall, Rainbow FCU
CU Sales
Jamie Myshrall, Rainbow FCU
CUs ‘In Step’ With
Their Community
Spirit
Part of enjoying summer in Maine is the
host of parades and outdoor events happening in communities across the state.
True to their local feel, Maine CUs were
marching in many of them.
Business Math: Lending and Credit
Jamie Myshrall, Rainbow FCU
Business Math: Share and Deposit
Accounts
Maggie Oliver, Rainbow FCU
MERIT
CU Management
Constance Thompson, York County FCU
Anne-Marie Train, cPort CU
Crystal Burnham,
Cumberland County FCU
Saphhire
Kristi Brillant, Midcoast FCU
No doubt saying, “There’s no place like a CU,
There’s no place like a CU,” all the way, staff from
Maine Highlands FCU participates in Guilford’s
Riverfest parade where the theme was, “Wizard
of Oz.”
Ruby
Kristi Brillant, Midcoast FCU
CUNACOMP
NCUA Requirements and Guidance
Darlene Lurvey, Rainbow FCU
VAP
Board of Directors
Kristen Hernandez,
Cumberland County FCU
Michelle Roy, Saco Valley CU
Lynn Weatherhead, The County FCU
Credit Committee
Philip Trudeau, Ocean Communities FCU
Staff from Katahdin FCU are patriotic in wishing
America a “Happy Birthday,” as they are pictured
here decked out for the Millinocket Fourth of July
Parade.
CU Services
Philip Trudeau, Ocean Communities FCU
Supervisory Committee
Michelle Roy, Saco Valley CU
Philip Trudeau, Ocean Communities FCU
VLP
Basic Level
Ronald Moreau, Otis FCU
To learn more about STAR and MERIT Training and
other self-study programs, email [email protected].
The day after July Fourth, staff from NorState
FCU celebrated Acadian pride at the Madawaska
Acadian Festival Parade.
Compliance
Question:
Q&A
We have a question about business loans and personal guar-
anties! If you have a corporation with two owners owning 25% of the shares and four
others each owning 12½%, and as the regulation exists today, do we need personal
guaranties from all of the owners? If the answer is “less than all of them,” how many
do we need?
Answer:
News&Views
From the Maine Credit Union League
News & Views is published monthly by the
Maine Credit Union League, a trade association encouraging the growth of the Credit
Union Movement in Maine. Executive and
editorial offices are located at 2 Ledgeview
Drive, Westbrook, Maine 04092.
(207) 773-5671/1-800-442-6715, ext. 273.
Editor: Jon Paradise, VP, Governmental &
Public Affairs
Associate Editor: Lauren Reeves
The applicable regulation is Section 723.7(2)(b) which says in
part “principals, other than a not for profit organization . . . or those where the Regional
Director grants a waiver, must provide their personal liability and guaranty.” The NCUA
guidance which can be found by searching for “NCUA Supervisory Letter Part 723” says
that “the requirements that principals provide a guaranty means the guarantee of one
or more natural persons who have a majority ownership interest in the business organization receiving the loan.” The guidance goes on to state “for a corporation, this will
be one or more shareholders having majority interest in the corporation.” We believe
that this means you must have at least 51% of the owners of the company however the
makeup of the individual interests are!
For more compliance answers, visit the League InfoSight section at www.mainecul.org.
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Words of Wisdom
Not for profit, not for charity but for
service.
– The Credit Union Motto in recognition of
International CU Week (October 11-17) and
Day (October 15)
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