ICUL Service Corporation
 
 
July 2013
 
 
 

 

Important News

Illinois League announces retirement of long time President/CEO Dan Plauda

League, credit unions successful during Spring Legislative Session!

More than 300,000 contacts generated via Don’t Tax My Credit Union campaign!

Credit Union Grassroots Coordinators sought

Making History - GCS' Holshouser retires after 34 years

1st MidAmerica CU CEO Don Reedy retires, Alan Meyer successor

ICU Foundation provides nearly $52,000 in grants, 2nd deadline approaching

Illinois League announces retirement of long time President/CEO Dan Plauda
The Illinois Credit Union League (ICUL) announced last month that President/Chief Executive Officer Dan Plauda will be retiring after 37 years of dedicated service to the credit union movement, effective June 30, 2014.  The League has contracted with D. Hilton Associates, Inc., the largest executive recruiting firm exclusively for credit unions, to conduct the search for its new leader.

In August 1984, Plauda became only the fourth person to serve as president in the 83-year history of the League, the primary trade association for credit unions in Illinois.  At that time, he was also named President/CEO of the League Service Corporation (LSC). 

Under his leadership, the Illinois League has become chiefly known as one of the nation’s most progressive leagues, and the Illinois credit union movement has expanded to $35 billion in assets that serves more than 2.84 million members. In addition, LSC has significantly progressed from providing key products, services, and programs to credit unions only in Illinois to building its reputation as a leader in helping approximately 2,400 credit unions (more than 1/3 of the nation’s credit unions), in 49 states including Illinois, as well as the District of Columbia compete.

Plauda joined the League staff in May 1977, serving as the organization’s first general counsel. He was previously a partner in a Minneapolis law firm.

During his time at the helm of the League, Plauda also served five years on the board of the Credit Union National Association (CUNA), the primary national trade association for credit unions, and its affiliate, CUNA Service Group.  He also served as Chairman of the Board of the CU Interchange Group, the national ATM network for credit unions; and on CUNA's governmental affairs and audit committees.  He is also a former member of the Executive Board of the American Association of Credit Union Leagues (AACUL).

"Dan is leaving a legacy of having a tremendous influence on building ICUL into the premier credit union trade association it is today. Because of his leadership, our league is well positioned for great success for many years to come," said Geri Burek, ICUL Chairman of the Board. "He truly will be missed by so many credit unions, executives and other organizations across the country, with whom he has humbly served and fostered an environment of collaboration and embraced the true ‘people helping people’ philosophy of our movement."

A native Minnesotan, Plauda earned his Bachelor’s and Juris Doctorate degrees, both with honors, from the University of Minnesota and was elected to Phi Beta Kappa, the national scholastic honor society, in May 1968.

D. Hilton Associates, Inc. is one of the most recognized credit union consulting firms in the country with more than 28 years of experience. To date, D. Hilton has provided credit union consulting services to nearly 2,700 credit unions nationwide, with assets ranging from $20 million to more than $10 billion. Our major practice areas are Executive Recruiting, Compensation, SERP Design, and Mergers. For more information, please visit 
www.dhilton.com.


League, credit unions successful during Spring Legislative Session!!
The Illinois General Assembly (IGA) adjourned on Friday, May 31, 2013.
 
From the nearly 10,000 bills and amendments filed this session, ICUL developed a list of nearly 100 measures which would impact credit unions and their business operations, and we actively worked those measures as they progressed through the IGA.  We are pleased to report that ICUL successfully enacted five major bills this session and numerous bills that could have negatively impacted credit unions and their business operations were either defeated or amended to become less burdensome. 

It is also important to note that despite many threats, the banking industry did not advance any taxation or other negative bills towards the credit union movement during the Spring session! 

All of ICUL’s bills of interest have been sent to the Governor.  The Governor has 60 days from the date he receives a measure to either sign, veto, or craft an amendatory veto to a bill. One bill, SB 1674 which acts as a trailer measure to the SB 16 foreclosure bill, has already been signed into law and became effective immediately on June 11, 2013. ICUL staff has been in communication with the Governor’s office regarding other bills of interest and the Governor’s intention to sign those measures into law. As these pieces of legislation go into effect, ICUL will issue L&T Bulletins to educate our members on how changes will affect their operations.

While the regular session was adjourned, lawmakers did return to Springfield for a special session on concealed carry and pension issues the week of July 8.  Members of the Conference Committee on Pension Reform met on Monday evening and heard testimony pertaining to that matter. The Committee continues to move forward in an effort to draft legislation to address the pension crisis in Illinois.

On Tuesday, July 9, both the House and the Senate took action to override Governor Quinn’s amendatory veto of HB 183, the concealed carry measure which went into effect upon receiving a supermajority vote in both chambers. Credit unions may prohibit the carrying of concealed firearms on the property under their control if they post a sign in accordance with the statute and subsequent rules. ICUL will issue a bulletin offering further guidance on this measure. Please note that no citizen currently holds, or will hold, a valid permit to carry a concealed weapon in Illinois until procedures for the issuance of such permits are implemented by the Illinois State Police and all requirements are subsequently complied with.  FOr more information on the concealed carry issue as it applies to credit unions, please click here.

The General Assembly is scheduled to re-convene for veto session on October 22-24 and November 5-7, 2013.

To see a quick summary of key bills, please
see the League’s Web site.


More than 300,000 contacts generated via Don’t Tax My Credit Union campaign!
As you are probably already aware, CUNA, ICUL and leagues across the country have launched a National Action Alert on the Credit Union Tax Status and strongly urge you to mobilize your credit unions’ employees, volunteers and members to ensure success in preserving the credit union tax exemption. 

Our best legislative intelligence confirms what the press increasingly has been reporting: both Houses of Congress are considering possible legislation to reform the U.S. tax code.  It appears lawmakers are considering a "blank piece of paper" approach.  Under that scenario, all exemptions would be removed from the tax code and Congress would start from scratch to write a new tax code.

On June 27, 2013, Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Orrin Hatch (R-UT) sent a letter to their colleagues announcing the next step of tax reform.  The letter tells Senators that the Finance Committee is beginning to draft a comprehensive tax reform bill and that they are starting with a blank sheet of paper with respect to tax expenditures.  As reported above, Senators and their staff suggested several weeks ago that this was a likely course of action.  We have received word from senior House Republicans on the Ways and Means Committee that the House intends to take a very similar approach in constructing their bill. 

According to the letter, every tax expenditure – including the credit union tax exemption – is out of the initial draft of the Senate tax reform bill and Senators have been invited to submit proposals for expenditures that should be included in their bill by the end of July. 

This announcement confirms what we have been saying for several months:  to preserve the credit union tax status, we will not simply have to defend it, but we will have to advocate for it.

Now is the time to mobilize and activate our national credit union grassroots and deliver a strong and simple message to Congress: "
Don’t Tax My Credit Union." 

Since the campaign began, more than 300,000 contacts have been generated into Capitol Hill by credit unions, their staff and members! 

To view the action call and learn more about the action steps that credit unions should be taking now,
please see the League’s Web site.  Preserving the credit union tax exemption is our number one priority, and we look forward to working with you on this campaign to engage nearly three million Illinois credit union members among the 96 million across the country. 

For more information about this action call, please contact
Pat Huffman.

Credit Union Grassroots Coordinators sought
You can help the credit union system move closer to realizing its vision where Americans choose credit unions as their best financial partner via Unite for Good.

This collective vision will contribute to the achievement of three key goals: Removing barriers by actively participating in credit union grassroots activities and the political process; Creating awareness by expanding your credit union’s outreach and image in the community; and Fostering service excellence by offering a diverse set of financial services that continuously evolve and improve to meet the changing needs of all members in any life stage.  When we unite for good to achieve these worthy goals, success will follow. 

As one of the initial steps in implementing this vision, ICUL is asking each credit union to designate a Grassroots Coordinator to act as the primary grassroots liaison to mobilize grassroots responses at the credit union level.  A 
letter regarding this request has been sent to all credit unions. 

Please give this request your full consideration and respond to the letter by July 15.

Making History - GCS' Holshouser retires after 34 years
"Together I believe we have helped build something that has stood the test of time, while contributing to a better life for thousands of members," says Mark Holshouser, reflecting on his 34 years spent with GCS Credit Union.

Although Mark is usually speaking to others about the background of GCS, he’ll now be joining the history books with the skillful leaders before him.  Mark Holshouser began with GCS Credit Union in 1979. Working in a small office in downtown Granite City, he learned the details of the credit union industry, making his way to earning the title of President in 1985.

"The credit union was much smaller then. We had one location, our asset size was about $10 million and we had ten employees including myself."

As the steel industry began cutting workforce due to the technological advances in the steel making process, GCS fought to remain competitive. The credit union opened its membership to residents and workers of Granite City and opened a new main office on Maryville Road.

Not only has Mark led the way of change over the years at GCS, but he’s also seen many changes in the industry. “The advancement in technology has been the greatest transformation over the past several decades. The speed at which GCS can now process transactions, along with online account access, has made information much more accessible now than ever before.” 

Although Mark is retiring from his position, leaving the credit union in an admirable state, he knows there will be challenges ahead. “The member has become more financially sophisticated and demanding. The need to provide fast and varied products and services through multiple service channels is necessary to remain competitive.” Not only are credit unions faced with these technological challenges but also the challenge of providing these services at little or no cost to the member.

Filling Mark’s role as President of GCS Credit Union is Keith Burton, who has served as Executive Vice President. “Keith has been with GCS for more than 25 years and has a wealth of experience. He also has the luxury of having a very knowledgeable staff, so the transition should be seamless,” notes Mark. Keith, along with a Board of Directors with over 20 years of experience, will lead the credit union forward.

Today, GCS Credit Union has assets of more than $317 million. GCS serves 39,000 members throughout Bond, Clinton, Jersey, Macoupin, Madison, Monroe, Montgomery, Randolph, St. Clair and Washington Counties in Illinois via 7 full-service branches, numerous ATM locations, and 24-hour account access through mobile, telephone and PCU online banking.

Over Mark’s career at GCS, he has been an active member of the community, serving on the Board of Directors of the United Way and Southwestern Madison County Chamber of Commerce. Although he will be retiring from his position, he will remain active with the Granite City Scholarship Foundation.

“The future of GCS is bright,” says Mark. “We have found a niche in catering to those members who still like the personal touch of a friendly smile and convenient location. I’m very proud of what we have accomplished.”

1st MidAmerica CU CEO Don Reedy retires, Alan Meyer successor
1st MidAmerica Credit Union President & CEO Don Reedy retired effective June 1, 2013, ending a 35-year career with the organization. The 1st MidAmerica board of directors selected EVP/Chief Operating Officer Alan Meyer to be Reedy’s successor.

“I am grateful for the opportunity to lead 1st MidAmerica, and have enjoyed working with the employees who provide outstanding service to our members,” Reedy said. “1st MidAmerica will remain under excellent leadership with Alan Meyer.”

During his tenure, Reedy has overseen a vigorous expansion of services offered by 1st MidAmerica. Reedy joined the credit union – then Olin Employees Credit Union - in 1978 as a Collections Manager. At the time, the credit union had $15 million in assets and served 7,751 employees of Olin Corporation. 1st MidAmerica has since grown to $482 million in assets, with 175 employees and more than 45,000 members. 1st MidAmerica is the 5th largest credit union in the St. Louis metropolitan area.

Under Reedy’s leadership, 1st MidAmerica expanded from an employee-based credit union to one that extends open membership to residents in 16 Illinois counties and one county in Missouri. The credit union also expanded its services to include checking accounts, share certificates, a full range of mortgage loans, business services, and an investment program for members’ investment and insurance needs.

“It’s been an honor to have worked with Don over the past 23 years,” said Ted Klasner, 1st MidAmerica’s Chairman. “His focused leadership has made this organization such a success.”

Throughout his career, Reedy has garnered tremendous respect for himself and for the credit union. In 2011, he was inducted to the Illinois Credit Union League Hall of Fame. He was honored by the Riverbend Growth Association in 2012 for his work on behalf of the organization. Twice, the credit union was awarded a Captain of the Riverbend Award for its dedication to the community under Reedy’s leadership. And in 2012, the credit union was recognized with an honorable mention in the national Community Credit Union of the Year program.

Klasner added, “Looking forward, I speak for the entire board with confidence in welcoming Alan Meyer’s leadership as our incoming CEO.”

Meyer has more than 29 years of experience in the financial services industry. He has been part of the 1st MidAmerica management team since 2002, working closely with Reedy over the past 10 years.

Reedy and his wife, Judy of 44 years, plan to travel, golf, and enjoy their family during retirement.

ICU Foundation provides nearly $52,000 in grants, 2nd deadline approaching
The Illinois Credit Union Foundation (ICU Foundation) grants committee awarded $51,885 in Small Credit Union Development (SCUD), Community Service, and Marketing and Business Development grants following the first quarter 2013 application deadline.

Small Credit Union Development (SCUD) grants this cycle totaled $32,635 and were awarded to 12 credit unions and one chapter.  They included: the Chicago Metro Chapter of Credit Unions, Bell West Community Credit Union, Chicago Fireman's Association Credit Union, Chicago Fire Officers Association Credit Union, CTA C&M Federal Credit Union, CTAFC Federal Credit Union, CTASS&U Federal Credit Union, NIU Employees Federal Credit Union, Ottawa Hiway Credit Union, Parish Members Credit Union, Peoria City Employees Credit Union, Romeoville Community Credit Union, and Urbana Municipal Employees Credit Union.

The Foundation also awarded seven Community Service grants totaling $3,750. This program is designed to encourage and reward chapter or credit union participation in local community projects.  Credit unions and chapters can qualify for grants by hosting an established event, creating an event, or volunteering at an established event. Recipients included: the Bloomington Chapter of Credit Unions, Alton Bell Community Credit Union, Altonized Community Federal Credit Union, Blackhawk Area Credit Union, Heights Auto Workers Credit Union, Members First Community Credit Union, Oak Lawn Municipal Employees Credit Union, and Streator Onized Credit Union.

Rounding out this round of grants were four credit unions that received Marketing and Business Development grants that totaled $15,500. The recipients were: Danville Bell Credit Union, Fairmont Village Credit Union, South Side Community Federal Credit Union, and United Methodist Ministries Credit Union.  These grants were established in 2006 to help credit unions with assets of up to $30 million to start or expand outreach efforts.  The maximum grant award is $5,000 per credit union per year.

There are 
two more grant request deadlines during 2013 - July 31 and October 31. In addition, scholarships are reviewed on an on-going basis while funds last.  Online and downloadable grant request forms are available via the League's Web site.  Eligibility is limited to Illinois credit unions and chapters.

Established in 1978 to foster credit union ideals and philosophy throughout Illinois, the Foundation has awarded more than $2.4 million in scholarships, community service grants, assistance for small credit union development, emergencies and natural disasters, limited income credit unions, and community involvement projects.  In 2012 alone, the Foundation awarded $51,033 in SCUD grants, $8,750 in community service grants, $14,709 in Financial Independence and Revitalization Effort (FIRE) grants, $45,865 in marketing and business development grants, and $43,824 in scholarships.

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