to read the full edition - Credit Union Magazine

YOUR OWNINSURANCEAISLEIN AS LITTLE AS90 DAYSYOUR AGENCY. YOUR BRAND. OUR EXPERTISE.You already offer your members an aisle for checking, savings,loans and investments. Now you can open an insurance aislein a way that’s working for credit unions nationwide, with afull service insurance agency under your brand.Call 860.653.1134 for a free strategic assessment,or go online at rethinkinsurance.com today.rethinkinsurance.com

Barbour/McAuliffe >> continued from page 1Barbour added, blaming the Democrat-ledSenate for not passing a budget in threeyears. “Twice last year, the RepublicanHouse passed measures to end sequestration.This is a fundamental differencebetween Democrats and Republicans.” Innovate andstay aheadConnect with the exclusiveindustry articles andthought-provoking insightyou rely on most.Subscribe for full access!Stay on top of news and trends thatimpact your credit union and theentire movement.creditunionmagazine.comWesenberg >> continued from page 1bankers will end up defining us. We’vegot to unite, work together, and tell ourown story,” she said. “When we do, weget results.”The opportunities for credit unionshave never been greater, Wesenberg said.And politically, the stronger and moreunited our front is, the more likely thebanks will be to find common ground onlegislation rather than work against us,she added. Boehnercalls forcommongroundAmerica is on the verge of a renaissance,Speaker of the House JohnBoehner told credit unions duringyesterday’s special General Session.“We’re moving quickly toward energyindependence,” he said. “The innovationand technology in the past severaldecades have allowed American oil andgas producers to go into old oil fieldsand find gas still locked in the ground.”This will give American manufacturersa competitive edge internationally, hesaid. But first three things must happen:1. Fix our tax code. “I hope we’re onthe verge of moving a tax reform bill thatwill lower rates for all and clean out someof the loopholes.”2. Do something about the $16 trilliondebt. Americans have to grapple withthis issue. With millions of baby boomersretiring each year and the current stateof entitlement programs, the “whipsaw”effect on our budget is tremendous.3. Ensure more American childrenreceive a decent education.These efforts will ensure economicgrowth for generations and allow theenergy renaissance to continue.“A lot of people believe the Americandream is in peril. But it doesn’t have tobe that way,” Boehner said. “Leadersin this town can put their politicaldifferences aside and find commonground to address the needs of ourcountry.“It’s going to take all of us.” “Pat, I now turn over the gavel to you, and the honor,the responsibility, and the obligations of serving aschairman of the Credit Union National Association,” outgoingCUNA Chairman Mike Mercer said to Wesenbergas she now begins her term.Summarizing the four turbulent years that have passed since he addressed the GAC at the height of the recession,Michael Fryzel, NCUA Board member and former chairman, told attendees that the CU system not only survived buthas become the nation’s premier financial services industry. He credits the fortitude of its leaders and a shared vision.“We have weathered a great storm. We are stronger for it. And the future is bright,” he said. To read Fryzel’s entirespeech, visit http://ow.ly/i4utE.WEDNESDAY DAILY NEWS | 3

LEGISLATORSRep. Denny Heck, D-Wash.Rep. Spencer Bachus, R-Ala.“All I ever really needed to know I learned while workingat the teller window at Columbia Credit Union,” saidHeck, who once served as marketing director at the Vancouver,Wash.-based credit union. “Every day I wantedto get up and go to work and help people live the Americandream. That’s what credit unions are all about.“I know credit unions weren’t to blame for the shenanigansthat drove our economy south. And you can counton me to make that clear to all the rest of the membersof the House Financial Services Committee.” Rep. Jeb Hensarling, R-Texas“First, I’ll start with some good news,” said Bachus, chairmanemeritus of the House Financial Services Committee.“We’ve made great progress in the past year-and-a-halfon spending cuts.“The March 1 ‘sequestration’ [or automatic spending cut]deadline is looming, however. No one thought we’d be here.But Congress and the White House usually act in crisis.“I believe we’ll see more bipartisan efforts, and wemight revisit the Dodd-Frank Act, taking apart whatdoesn’t apply to credit unions.” “We’re not suffering from a lack of capital, but a lack ofconfidence,” said Hensarling. “In my role as chairman ofthe House Financial Services Committee, my job is topromote economic growth. To do that, we need to reducethe weight of the red-tape burden on community financialinstitutions.“The Dodd-Frank Act created 400 new regulationsthat fit into two categories: those that create uncertaintyand those that create harm. And I won’t rest until I seethe repeal of the Durbin Amendment.” 4 | CREDITUNIONMAGAZINE.COM/GAC

Rep. Steny Hoyer, D-Md.Rep. Kevin McCarthy, R-Calif.“We meet today on the threshhold of what could be adangerous period for our economy and our markets asthe result of irrational and arbitrary budget cuts, known asthe ‘sequester,’” said Hoyer.“We need you to add your voices to the chorus ofAmerican businesses and families who are urgingCongress to act.“I hope you will deliver that message loudly and clearlyto members of the House and Senate this week when yousee us.” Rep. Blaine Luetkemeyer, R-Mo.McCarthy didn’t take the traditional path to become alegislator. The only Republican from a family of Democrats,McCarthy refurbished and sold cars to pay forjunior college, eventually quitting school—after winning$5,000 in the California lottery—to open a deli with helpfrom a credit union business loan. He applied for—butdidn’t get—an internship with a California congressman.“Now I have his seat,” said McCarthy, House majoritywhip. He believes both parties must work together tosolve the nation’s financial problems. Rep. Gregory Meeks, D-N.Y.“Passing bills takes a lot of work, even on the simplestissues,” said Luetkemeyer, who serves on the HouseFinancial Services Committee.“But we live in a partisan environment in D.C. That’swhy we need to work on pushing through smallerissues first. We have to find common ground here.“I know you feel you’ve been inundated with rulesand regulations. We still have opportunities to makea difference in your lives and your members’ lives. It’swhy we’re here.” “As a ranking member of the House Financial InstitutionsSubcommittee, I will fight to ensure that credit unionsremain a cornerstone of Main Street America,” Meekssaid in his first GAC appearance.“One way to do this is to boost member businesslending, which I have once again co-sponsored in abipartisan way with [Rep.] Ed Royce in this Congress.“It is time to remove the handcuffs and allow youto continue to serve as the backbone of your localcommunities.” WEDNESDAY DAILY NEWS | 5

LEGISLATORSRep. Debbie Wasserman Schultz, D-Fla.Rep. Ed Royce, R-Calif.“Credit unions have been doing a tremendous jobof lending to small businesses and creating newjobs nationally and in my home state of Florida,” saidWasserman Schultz. “Nationally, you created 157,000new jobs in January alone and 7,000 in Florida.“The 120 regulatory changes that took placebetween 2008 and 2012 have created unsustainablecomplexity. But we can change that through grassrootsactivities, and credit unions know how to mobilizeat the grassroots level better than anyone.” “We want to redefine [the member business lending]bill a little bit to get that critical momentum, that criticalmass, that we need to get this signed into law,”said Royce. “We need to get it into an issue where itis simply about small business and creating access tocapital.“Now is not the time to maintain artificial caps onsafe and sound lending. Businesses are asking for it.The economy and the job market are in dire need of it.You have the expertise to provide it and so we havegot to get this done.” Create a connection in CongressConducting business with a personaltouch is an ethos that has servedcredit unions well. Taking the sameapproach during GAC Hill visits canmake a big impact on legislators. Hereare seven strategies to help make them asuccess:Be prepared.1 Focus on no more than two issues.Do your homework on all sides of theargument, as well as the legislator’srecord. Bring concise, engaging handouts.Strategize as a group.2 Decide a plan of attack and thedesired outcomes. Appoint a managerto keep your meeting on topic, and asecretary to take notes.Arrive cool, calm, and in control.3 Show up early to acclimate to thesurroundings. Introduce yourself to yourrepresentative and aides withenthusiasm, intent on forming a personalconnection.Put on your game face.4 Be professional and objective. Do notrant and rave. Let the facts speakfor themselves.Make specific requests.5 Form your “money” question in yesor-nofashion to elicit a clear response.Clarify the next steps, and set a timetablefor action.Be greedy.6 Ask a supportive legislator to rallyother members within a committee orstate delegation—and to write an op-edfor a newspaper.Keep the ball rolling.7 Publicize your visit on social mediaand in your publications. Send a thankyounote. Keep tabs on the issue and followthrough on your pledge to follow up. Send us yourHill visit photos!Help us promote your visits toCapitol Hill using the #CUNAGAChashtag on the images you postto Twitter or by emailing them toCUmagadmin@cuna.com.#CUNAGACCUmagadmin@cuna.comPhotodisc/Thinkstock6 | CREDITUNIONMAGAZINE.COM/GAC

Slow growth, but uncertainty still prevailsEconomists expect continued slowimprovement in U.S. economic performanceand credit union operationsin 2013.In a Tuesday breakout session, CUNAeconomists Mike Schenk and Steve Rick,joined by NCUA Chief Economist JohnWorth, scrutinized that forecast and examinedcurrent economic trends.The biggest drag on the U.S. economyis likely to be the combination of uncertaintysurrounding government financeand the threat of austerity.Despite these risks, CUNA economistsexpect economic growth to rise modestlyto 2.5%. Consumer prices should holdsteady, with increases in the consumerprice index remaining below the Fed’snewly articulated inflation threshold of2.5%.The unemployment rate should finishthe year not much lower than 7.5%, wellabove the Fed’s 6.5% target. Discouragedworkers re-entering the market will keepthe rate high.Short-term market interest rates willstay near zero all year,and longer-term interestrates will rise, but onlyslowly.The recent fiscal cliffagreement will have anet positive effect. Thepermanent extensionof tax cuts for 99% ofAmericans will reducetax uncertainty, boosthousehold and businessconfidence, and spuradditional consumptionand investment spending.The increase in the payroll tax rate to6.2% from 4.2% will tend to counteractthese positive effects, but the increaseand subsequent drop in disposableincome likely will lead to a lower savingsrate rather than a decline in spending,CUNA economists say.“We expect slightly faster loan growthin 2013, with increases in the 4.5% to5.5% range,” said Schenk. “Savingsgrowth rates will recede modestly towardMike Schenk Steve Rick John Worththe rates anticipated in loan balances,causing loan-to-savings ratios to firm up.”Credit union asset quality will continueto improve. Loan loss provisions willremain low, helping to boost earnings.Declines in gains on sales may offset thisas mortgage refinancing activity wanes.Corporate stabilization expenses will beessentially unchanged. On balance, thissuggests credit union net income will beabout 80 basis points of assets. CU IN THE FUTUREIt’s rising brighter than ever.We’ll CU along the way.5877.570.2824cu24.comWEDNESDAY DAILY NEWS | 7

CU House: Yourpermanent presenceon the HillMember-ownership is a unique traitof your credit union and of yourCredit Union House. Owned byevery state credit union league and theAmerican Association of Credit UnionLeagues, Credit Union House givescredit unions a permanent presence andincreased visibility on Capitol Hill.Last year, more than 2,600 visitorsarrived at Credit Union House. TheyThe 2013 Hall of Leaders inducteesThe Credit Union House congratulatesthe 2013 Hall of Leaders inductees.Their dedication has made a significantimpact on the credit union movement atthe local, state, and national levels:* John Annaloro (Wash.)* Frank Berrish (N.Y.)* Marshall Boutwell (Ga.)* Ken Bradshaw (Neb.)* Susan J. Brayman (Colo.)* Loretta Burd (Ind.)* Mary Ann Clancy (Mass.)* Gary R. Clark (Mont.)* Ron Collier (Ind.)* Michael Connery (N.Y.)* Donald Edwards (Ill.)* Clarence Hall (Miss.)* Gail Krall (Minn.)* James “Jimmy” G. Lankford (Ala.)* Robin Lentz (Calif.)* John McKenzie (Ind.)* Robert D. Ramirez (Ariz.)* Randy Smith (Texas)* Marsha S. Tynsky (Wyo.)* Bill Winter (Minn.)* Al Vukasin (Mont.)* Michael A. Williams (Colo.)The Hall of Leaders provides recognitionat the Capitol Hill facility for adistinguished group of individuals whoseleadership serves as a model for creditunion leaders throughout the U.S.Their names remind all Credit UnionHouse visitors—including prominentmembers of Congress—of the individualsdedicated to the founding mission,values, and philosophy of the creditunion movement.included political figures, business leaders,government officials, and credit unionpeople from across the U.S. Credit UnionHouse-hosted events raise the nationalpresence of the credit union movement,emphasizing credit unions’ mission andcreating partnership opportunities forleagues, credit unions, and CUNA withour nation’s leaders.This year, Credit Union House will onceagain recognize a distinguished group ofindividuals who demonstrate outstandingleadership, a strong commitment to creditunion values, and a vision for continuedsuccess. The Credit Union House Hall ofLeaders has grown to honor 70 leadersfrom 30 states, and the newest inducteeswill be honored during the GAC (“The2013 Hall of Leaders Inductees”).Visit Credit Union House during itsannual Open House on Thursday, Feb.28 from 9 a.m.-5 p.m. Stop by to rest inbetween Hill meetings, take a tour, andhonor the newest inductees to the Hall ofLeaders.Credit Union House is located at 403C St., NE, just a few blocks from the U.S.Capitol building. 8 | CREDITUNIONMAGAZINE.COM/GAC

Scenes from the 2013 GAC1 2345 6At left: MWCUA President/CEO Scott Earl and1his wife, Bonnie; CUNA COO John Franklin andhis wife, Hazel; and Pat Sowick, CUNA SVP league andstate affairs and her husband, Chris, at World Council ofCUs’ Worldwide Foundation for CUs Supporters Receptionon Sunday.CUNA President/CEO Bill Cheney honors2league representatives for Children’s MiracleNetwork hospital projects, creating playgrounds in NationalConvention host cities. From left: Cheney; SteveFowler, president, South Carolina CU League; JohnRadebaugh, president, North Carolina CU League; andPatrick La Pine, president, League of Southeastern CUs.The Concert: A Tribute to ABBA rocked the3 house as original and new band membersperformed several top hits in true ABBA-esque fashion:“Dancing Queen,” “S.O.S.,” and “Take a Chance on Me.”CUNA Councils presented the event.Thousands of attendees toured the largest4exhibit hall in the financial services industryat this year’s GAC. Attendees had their choice of morethan 300 booths and more than 200 companies.“In my 10 years of serving as your GAC emcee,5this is the best lineup of speakers I’ve everseen,” said Paul Berry as he welcomed GAC attendeesMonday morning.John Mason, board vice chairman, Ambridge6Area FCU, and his wife, Ellen, team up with aCanadian Mountie in anticipation of the World Council’s2013 World CU Conference in Ottawa, July 14-17.WEDNESDAY DAILY NEWS | 9

Vice president of publishing: Doug BenzineVice president of publishing operations: Dorothy SteffensEditor-in-chief: Steve RodgersManaging editor: Sue LanphearSenior editors: Bill Merrick, Adam Mertz, Ann Peterson, Craig SauerContributing editor: Jeremiah CahillDesign & production: Cheryl Gokey, Joey SabaniVice president of vendor sales: Joe DayAd representatives:Chris Kennedy—East/Central: 847-656-0322, ext. 3008Cathy Woods—West/Southwest/Southeast: 602-863-2212Printing: Staples Digital Copy Services, Columbia, Md.Cheney receives NLCUP awardCUNA President/CEO Bill Cheneyreceived the Leadership & VisionAward Tuesday from the Networkfor Latino Credit Union Professionals(NLCUP).Hispanics are essential to the futuregrowth of the nation’s credit unions, saidCheney, who spoke at NLCUP’s annualnetworking reception. He noted that theimportance of ethnic diversity has beenapparent during his entire career in thecredit union movement, beginning in hishometown of San Antonio and continuingduring his days as a credit union CEO andthen CEO of the California and NevadaCredit Union Leagues.“Last fall’s presidential election was aclear indication of how strong a presenceHispanics now have,” said Cheney. “Andyou can see the future by simply lookingat the diversity of school children acrossAmerica.”Joining Cheney as an award recipientwas Iowa League COO Murray Williamswho received NLCUP’s Leadership & SupportAward. SUBSCRIBE TODAYTwo easy ways to order your subscription toCredit Union Magazine:Call: 800-348-3646Visit: creditunionmagazine.comCheney accepts the Leadership & Vision Award from members of the NLCUP board.See you in New York City for the 2013 ACUCDon’t miss the most energizing,forward-thinking conference in thecredit union movement.America’s Credit Union Conference(ACUC) takes place June 30-July 3 in NewYork City.Featuring a high-impact lineup of keynotespeakers, thought-leader sessions,and networking opportunities, you’ll returnhome with a new-found enthusiasm andvision for your credit union’s future.Keynote speakers include: Lt. Col. Robert Darling (Ret.). Duringthe attack of Sept. 11, 2001, Darling supportedthe president, vice president, andnational security adviser in the undergroundPresident’s Emergency Operations Center(PEOC) and witnessed unprecedentedevents and decision making. Malcolm Gladwell. Gladwell is a staffwriter at The New Yorker and author offour New York Times bestsellers, including“Blink: The Power ofThinking Without Thinking”and “Outliers: TheStory of Success.” Hiswriting often deals withapplications of researchand new ideas in thesocial sciences, makingfrequent use of academicwork in the areas of sociology,psychology, andsocial psychology. Lyn Heward. Hewardis the current director ofcreation for Montreal’sCirque du Soleil and theformer president and chief operating officerof the creative content division. She’s theauthor of the critically acclaimed book, “TheSpark: Igniting the Creative Fire that LivesWithin Us All.” Her renowned keynote ofthe same title takes the audience behindthe scenes of Cirque du Soleil to explorethe nature and origins of creativity.CUNA and CUNA Mutual Group willteam up to bring Discovery Sessions to thisyear’s conference. These sessions providecredit union leaders practical information tosolve problems, capture opportunities, andaddress current market challenges.The Hilton New York hosts ACUC, juststeps away from the city’s premier attractions.Conveniently situated in MidtownManhattan, you’ll enjoy one of New York’smost sophisticated hotels.You’ll be within walking distance ofTimes Square, Radio City Music Hall, FifthAvenue shopping, the Broadway Theatredistrict, Central Park, The Museum of ModernArt, and many more iconic New Yorklandmarks.For more information and to register,visit acuc.cuna.org. 10 | CREDITUNIONMAGAZINE.COM/GAC

What’s the best part of the GAC?Michael ToblerPresident/league director, Albany Firemen’s FCUAlbany, N.Y.I think the best part is just bringing everybodytogether and getting the point of view ofwhat’s happening, not only with credit unionsyour size, but also what’s going on nationally.CUNA always brings in top speakers—they’reon the forefront of everything that’s going on,and it’s nice to get the feedback on what’scurrent. The biggest thing is you walk awayfeeling that there’s a lot you can change.Joe QuihuisDirector of finance, Bashas Associates FCUTempe, Ariz.I’m really looking forward to the speakers—especially Tom Brokaw and Bill Cheney. I’dalso like to get regulation insight; that’s reallyhot right now. I always get something out ofthese conferences from networking—gettingsome fresh ideas to energize our staff onselling products to members. I’m also reallylooking forward to the Capitol visit becauseI’m a first timer to D.C.Marsha CoarseyDirector, Community First CUJacksonville, Fla.I really enjoy hearing the politicians give theirviewpoints on what’s happening in Washington—howit will affect the economy andspecifically how it will affect credit unionsacross the nation. I’ve enjoyed hearing DebbieWasserman Schultz; she’s very energeticand interesting. And I always enjoy going toCUNA’s breakout session on the economy—Bill Hampel and that group.WEDNESDAY DAILY NEWS | 11