LSCU member credit unions expected to receive dues rebate in 2013
11/08/2012 02:40 pm
The League of Southeastern Credit Unions (LSCU) & Affiliates will offer affiliated credit unions in Alabama and Florida a dues rebate in 2013. With less than two months remaining in 2012, the LSCU & Affiliates is shaping up to have another great financial year. Several factors contributed to the good year including strong LSCU and LEVERAGE, the League Service Corporation, earnings as well as an efficiently run organization.
“Through consolidation we’ve been able to streamline our operations,” said LSCU & Affiliates President/CEO Patrick La Pine. “That means that the League is running more efficiently. LEVERAGE has had a very good year financially and we feel it’s important to have our credit unions share in our success in the form of a dues rebate.”
“This is the first dues rebate ever offered in either state,” said LSCU Board Chairman Mary Ott Wood, who is also the CEO of Florida West Coast Credit Union. “It’s important that our credit unions in Alabama and Florida know that the LSCU & Affiliates is not only working for them to advance our industry, but we understand the challenges they are still facing back at home.”
Even though the economy is beginning to show signs of a sustained recovery, many credit unions in Alabama and Florida continue to struggle to increase earnings and they are feeling regulatory pressure to cut operating expenses. Since consolidation, and with the support of the boards and credit unions, the LSCU & Affiliates have met and exceeded earnings the last two years and is on track to do so again this year.
A final LEVERAGE dividend and LSCU dues rebate will be announced once the books close on 2012, which is expected to be around mid-February. The dues rebate would be funded by a combination of the net income derived from the League with the remaining amount being funded through the dividend from LEVERAGE to the League.
Credit unions will pay their full 2013 dues as scheduled. The dues rebate will be returned to member credit unions in the form of paper check around the end of the first quarter. The following restrictions will apply:
1) Any credit union that did not remit dues by March 31, 2013 would not be eligible for a dues rebate
2) Any credit union granted a dues waiver or reduction in 2013 would not be eligible for a dues rebate
3) Credit unions that were not affiliated in previous years would be eligible to receive a dues rebate in 2013, but the above restrictions would apply
Credit unions should still budget for their League and CUNA dues based on the estimated dues invoice that the League sends out each September.
“A dues rebate illustrates how the financial success of LEVERAGE is vital to the long-term sustainability of the League,” said La Pine. “By credit unions purchasing products and/or services through LEVERAGE, it has a direct correlation to the dues they are being asked to pay. Credit unions need to know that there’s no guarantee a dues rebate will be declared every year. Level of affiliation, net income for the League and LEVERAGE as well as identified priorities, will all play key factors in our future decisions.”