BIRMINGHAM, Ala., and TALLAHASSEE, Fla. (11/13/12)--The League of Southeastern Credit Unions (LSCU) & Affiliates announced Nov. 8 that it will offer affiliated credit unions in Alabama and Florida a dues rebate in 2013.
With less than two months remaining in 2012, the LSCU said it is shaping up to have another great financial year. Several factors contributed to the success, including strong LSCU and LEVERAGE--the League Service Corporation-- earnings, as well as an efficiently run organization, said LSCU.
"Through consolidation we've been able to streamline our operations," said League of Southeastern Credit Unions & 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."
LSCU Board Chairman Mary Ott Wood, who also is the CEO of Florida West Coast CU in Brandon, said, "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."
She noted "This is the first dues rebate ever offered in either state."
Even though the economy is beginning to show signs of a 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, the league noted in a release.
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 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, 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 previously mentioned restrictions would apply
Credit unions should still budget for their league and Credit Union National Association 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 play key factors in our future decisions."