By the Way Newsletter

President's Message

We love it when you and your team participate in our various conferences and advocacy events. Your League is committed to spending more time in person with all of you, which is why we are scheduling some "In-Market Luncheons" for 2025.

These luncheons are part of our commitment to strengthening relationships, hearing your feedback firsthand, and fostering a sense of community among Kentucky credit unions.

Anyone connected to a credit union – whether you’re a CEO, manager, frontline staff, board member, or part of the extended credit union community – is welcome to attend these sponsored lunches. (Although the lunches are covered by the League and our sponsors, there will be no sales pitches!)

See the schedule below for the days and times we will be in your area. Join us for a quick respite from your daily grind, socialize with others in the Kentucky Credit Union community, and grab some delicious grub.

As each date approaches, we will send out RSVP emails with additional details. Space may be limited, so spots will be first come, first served. No catch, no ulterior motive. Just fellowship and fun.

If you have suggestions for a great local establishment to host the lunch in your area, please email Olivia Sharp at osharp@kentuckyscreditunions.org!

I hope to see you at one of the lunches!

2025 Luncheon Schedule:
• Louisville - April 9
• Bowling Green - May 14
• Northern Kentucky - June 2
• Lexington - July 9
• Paducah - July 30
• Owensboro - July 31
• Ashland - August 27
• Frankfort - September 17
• London - October 8
• Louisville - November 13

Sincerely,
Jim Kasch

Advocacy Update

March is typically a busy month for advocacy groups in Kentucky and across the nation, but this year has brought an unprecedented level of activity. Both the General Assembly in Frankfort and Congress, along with the Executive branch in Washington, have been working at full speed to achieve their policy objectives before the session ends on the 28th. As you may have heard from various sources, the ongoing push in Congress to pass a sweeping tax reform package through a "Reconciliation" Bill poses the most serious threat to the not-for-profit credit union model that we've seen in years. While Kentucky’s Credit Unions team remains in active communication with our elected officials, it's more important than ever for individual credit union professionals to make their voices heard.

In light of this, our trip to Washington for GAC was perfectly timed and resulted in many impactful discussions between our credit union representatives and our elected officials in both the House and Senate. Although our lawmakers clearly understand the importance of preserving our unique structure, it’s crucial that they continue to hear from Kentuckians on this critical issue. Please consider using the link below to quickly and easily tell Congress, “Don’t Tax My Credit Union, Don’t Tax Me!”

Send a Message to Congress – Don’t Tax My Credit Union
Click the link, then scroll down and fill out the short form & hit send.

Sincerely,
Kyle Hagerty, CUCE
SVP & Chief Advocacy Officer

CLO-COO-CIO Forum Registration is open!

Join us in New Orleans April 29 - May 1 for the CLO-COO-CIO Forum!

Overview:

Our combined Forum offers senior leaders in Lending, Operations, Member Experience, and Technology an exclusive opportunity to engage in meaningful discussions on the most pressing issues, threats, and opportunities in the credit union industry. By bringing together leaders from these critical fields, the Forum fosters cross-functional collaboration, strategic problem-solving, and the exchange of actionable insights. This trusted space empowers participants to drive innovation, address shared challenges, and position their credit unions for long-term success.

Who Should Attend:

This strategic forum is beneficial for credit union executives in lending, technology, operations, or member experience with the title of Director and above.
credit unions are encouraged to attend. This conference will be most beneficial for credit unions under $250 million in assets.

Collections & Bankruptcy School 2025

September 15 - 18, 2025 Louisville, KY

Overview

Mitigate risk, maximize recovery for members.
Collections & Bankruptcy School equips credit union collections professionals with essential skills and knowledge to effectively manage a collections department, addressing challenges from delinquencies to bankruptcy. Beginning with foundational principles, the curriculum advances through best practices, legal considerations, and the finer points of department management.

Discover the learning track designed for you.
Choose from two learning tracks to advance your skills, whatever your experience level. New to collections? Start with the Introduction track. More experienced? The Advanced track is for you.

Who should attend?

The Introduction track is best for collections staff with less than five years of experience. Compliance staff, internal auditors, and management needing to understand the big picture may also find this introductory course beneficial. The Advanced track is for collections managers and those who have completed the intro course, or those collectors with more than five years' working experience. 

From personal touch to community impact: Why credit union tax status matters

While traditional banks offer a one-size-fits-all approach, credit unions are rewriting the playbook—melding personalized, community-first service with agile lending solutions that not only empower local entrepreneurs but also spark broader economic revitalization in their communities.

At the recent Governmental Affairs Conference in Washington, D.C., credit union CEOs Karyn Davis and Ray Springsteen shared their vision for how tailored lending programs and strategic advocacy are driving transformative change across the industry. Their stories underscore the value of credit unions' member-centric approach—and the critical importance of preserving the tax status that makes it all possible.

A personal touch that makes a difference
Both Davis and Springsteen stressed that the credit union model is built on relationships. "Without that personal connection, our members wouldn't trust us enough to let us help them reach their financial goals," Davis, CEO of UP Federal Credit Union in North Little Rock, Ark., explained. She noted that for many credit union members-especially those who have struggled with traditional lending options—the assurance of being truly heard and helped "makes all the difference."
Meanwhile, Springsteen, CEO of Abound Credit Union in Radcliff, Ky., recounted the inspiring story of a veteran who, after decades of service, was able to launch a small business thanks to a well-structured, affordable loan.

"When we see the smile on a member's face knowing they finally have a chance to turn their dream into reality, it confirms that our approach really works," he said.

Innovative lending programs with community impact
After establishing those personal relationships, credit unions can better understand the needs facing the communities they serve. Since 1994, Community Development Financial Institutions (CDFI) Fund grants have proven to be a bipartisan cornerstone in expanding access to capital for underserved communities, driving initiatives that range from affordable housing and homeownership to small business growth and sustainable job creation.

After UP Federal Credit Union's CDFI certification in 2022, the credit union has received three grants "that have helped us increase our digital services in our neighborhood," Davis said.
These grants empower CDFI-certified institutions, including rapidly growing credit union networks, to serve millions of people nationwide by leveraging every dollar of public funding into eight dollars—and even twelve dollars in community lending—of private capital.

Over the past two years, the number of CDFI-certified credit unions has grown by 50%, reaching nearly 500 institutions that now serve over 19 million people through more than 2,800 branches nationwide.
"We're located in a very low-income neighborhood," she said. "If our credit union disappeared, it would be a banking desert for the people that live there. And so it was really important for us to have that CDFI certification so that we can develop the products and services for low-income members."

Advocacy through storytelling and data
Both Davis and Springsteen emphasized the need to balance compelling personal narratives with hard data.

"We're not just telling stories—we're presenting data that shows how many families and local businesses rely on our support every day," Davis stressed.
This dual approach is essential for influencing legislators, as it demonstrates not only that credit unions are crucial community partners but also that their tax-exempt status enables them to offer lower fees, better loan rates, and higher deposit yields. These tangible benefits-reinforced by robust member stories—make a strong case for why the industry must maintain its current tax status.

The threat of changing the tax status
While the CEOs' visions highlight the remarkable benefits credit unions provide, there is a growing discussion in policy circles about altering credit unions' federal tax status that underpins these advantages. Any move to change the tax status could have several negative impacts:
• Higher operating costs: The tax status currently allows credit unions to reinvest savings back into their members and services. If credit unions were taxed like traditional banks, their cost of capital would rise, potentially forcing them to pass on higher fees or interest rates to members—undermining the affordability that sets them apart.
• Reduced community investments: Savings from the tax status enable credit unions to fund community-oriented programs and innovative lending solutions. A change in tax status could erode these savings, reducing their capacity to support local initiatives and personalized lending programs that are vital for community revitalization.
• Competitive disadvantage: The tax status is a key factor in maintaining a level playing field with commercial banks. Losing this advantage could make it more difficult for credit unions to offer the lower-cost, member-focused services that consumers have come to expect.

The potential threats underscore that any changes to the tax status of credit unions would not only affect their financial performance but also diminish the very benefits that have allowed them to serve communities so effectively.

Looking ahead: Embracing technology and preserving the advantage
Both Davis and Springsteen agreed that embracing digital transformation is essential in today's fast-paced environment. While traditional processes can slow decision-making, investing in new technologies streamlines operations and speeds up the approval process for small loans. "When you can process a loan quickly and seamlessly, you're not just winning business-you're reinforcing trust," Springsteen noted.

While technology enables faster loan processing, credit union members are only best served while they have access to lower rates and the savings credit unions are able to provide through the credit union tax status. If the tax status were changed, credit union loans would become less accessible, with higher rates and fees.

A call to protect a proven model
Insights shared by Davis and Springsteen vividly illustrate how credit unions deliver value through a personalized, community-first approach. Their innovative lending programs not only help individuals and small business owners thrive but also fuel local economic growth. However, these benefits are underpinned by the tax-exempt status that enables credit unions to reinvest in their members and communities.
For credit union professionals and industry stakeholders, it is crucial to understand that any change to the federal tax status could have significant, negative ramifications-raising costs, curtailing community investments, and diminishing competitive advantages. Maintaining the current tax status is not just about preserving a legacy; it's about ensuring that credit unions can continue to offer the exceptional, safe, and affordable financial services that have made them a vital part of our communities.

In these challenging times, the commitment to personalized service and community empowerment must be protected—and that means defending the tax status that makes it all possible.

Registration NOW OPEN for the Executive Forum!

May 8-9, 2025 | Lexington Marriott City Center | Lexington, KY

A Premier Gathering for Credit Union Leaders

Kentucky's Credit Unions is proud to host an exclusive Executive Forum, bringing together top credit union leaders from across the state. This event is designed to equip credit union leaders with the knowledge, strategies, and tools needed to navigate today’s evolving financial landscape.

This exclusive gathering provides expert insights, peer discussions, and actionable takeaways on the most pressing issues facing credit unions.

Who should attend?
The Executive Forum is designed for CEOs and Executive Teams from League-affiliated and associated credit unions. If you are responsible for shaping strategy, driving innovation, or navigating industry challenges, this event is for you!

MORE INFORMATION

EARLY BIRD for Southeast Management School ENDS April 4th!

The school, hosted by Southeastern Regional Credit Union School (SRCUS), meets Sunday, June 15 through Friday, June 20 at the UGA Center for Continuing Education & Hotel in Athens, GA.

Southeast Management School equips credit union professionals with essential leadership, management, and financial skills to navigate industry challenges. This three-year program combines advanced coursework with hands-on projects and year-end testing, qualifying students for UGA CEU credits and new ACE Credits® toward continuing education.

Upon successful completion of the program, students not only receive a graduation diploma but earn their Certified Credit Union Executive (CCUE) designation – the hallmark of professional achievement within the industry.

Announced last summer, the CCUE certification and ACE Credits® are the latest additions to Southeast Management School. SRCUS now joins America’s Credit Unions’ Management School in Madison in offering this prestigious designation. Past graduates can also earn their CCUE at an Alumni Event held on campus June 18–20.

When the CCUE certification was announced, SRCUS Executive Director Brittani Champlin emphasized its value as an “extra layer of achievement” for students, stating, “From the curriculum to the experience, and now certification, it’s important to us to ensure this school remains relevant and valuable for those who commit to the program.”

Interested In Enrolling?
Take note of these key tuition details:

Tuition paid on or before 4/4/2025: $2,600
Tuition paid after 4/4/2025: $2,845
Alumni Program: $750 SOLD OUT but coming back in 2026
Boarding at UGA: $119+
Guest Banquet Ticket: $50
Deadline to register: June 4, 2025 (April 4 for early enrollment)

Click here to learn more and enroll online. New and returning students, as well as alumni, must create a user profile or log in to register. SRCUS coordinators will provide enrolled participants with boarding reservation details via email.

Need Tuition Assistance?
Contact Janet Garrett, VP of Communications, Education & Events, for more information.

Joe Staff

2025 Women's Leadership Conference

July 15-16, 2025 | Margaritaville | Nashville, TN

Join us for the TRGroup Women’s Leadership Conference, a two-day event dedicated to empowering, inspiring, and celebrating women in credit unions and all stages of life. This dynamic event brings together influential speakers, thought leaders, and trailblazers for insightful conversations, skill-building workshops, and meaningful networking opportunities.

MORE INFORMATION

Service One Credit Union Announces Matt Hutcheson as Chief Financial Officer

Matt Hutcheson

Service One Credit Union announces the promotion of Matt Hutcheson to Chief Financial Officer. Hutcheson has been with Service One since 2010 and has played a key role in financial strategy, risk management, and operational efficiency.

With an Associate’s Degree from Elizabethtown Community and Technical College and a Bachelor’s Degree in Accounting from Western Kentucky University (WKU), Hutcheson brings a strong financial background to his new role. He will provide strategic financial leadership for the credit union, overseeing all aspects of financial management, including asset and liability management, budgeting, forecasting, liquidity, investments, and capital planning.

"I have worked closely with Matt over his 14 years with the Credit Union, and I know firsthand his dedication, leadership, and depth of knowledge of our financial operations,” said Justin Morris, President of Service One. “Matt has been a key part of our team, bringing a strategic mindset and a deep commitment to our mission, and I have no doubt he will continue to make a positive impact in this new role."

“It is a privilege to take on the role of CFO at Service One Credit Union.” said Hutcheson. “I am thankful for this opportunity and remain deeply committed to our mission, guiding our financial strategy, and contributing to our ongoing success. I extend my heartfelt gratitude to our wonderful associates and express sincere appreciation to our members and community for their unwavering support.”

Abound Credit Union Recognized as a 2025 Winner of Best Places to Work in Kentucky™

Abound Credit Union was recently named one of the 2025 Best Places to Work in Kentucky. This year’s award marks the fourth year in a row that the Credit Union has been recognized as a leading employer in the state.

The 21st Annual Best Places to Work in Kentucky, a project of the Kentucky Chamber of Commerce and the Kentucky Society for Human Resource Management (KYSHRM) honors employers in Kentucky that are making their workplaces great.

“Our Team’s passion and dedication to serving our Members is inspiring. Each day, our 359 Team Members are hard at work finding solutions that make more possible for our Members and the communities we serve,” says Ray Springsteen, President & CEO of Abound Credit Union. “We’re thrilled to celebrate as a Credit Union and recognize the ongoing efforts of our amazing Team Members!”

During the last 12 months, Abound Credit Union provided Financial Education for 22,000 people in Central Kentucky communities. This work was possible through the dedication of Abound’s Team Members partnering with schools, community organizations and veterans groups to provide curriculum and support. In addition, Abound Team Members disbursed a record $760 million in loans to Central Kentucky Members – making more possible for hardworking Kentuckians.

The Best Places to Work in Kentucky survey and awards program evaluates policies and practices through an employer assessment and captures employees’ opinions about their workplace experience through an employee feedback survey. Abound’s core values, which are lived by each Team Member every day, are: Selfless, Connected, Learning-Driven, Passionate, and Fun.

Abound Opens New Shepherdsville & Jeffersontown Branches

Abound Credit Union has opened two new branch locations, providing even more convenient access to its money-saving financial solutions.

Abound’s new, stand-alone Shepherdsville Branch is located right in front of Walmart on Conestoga Parkway and has the same friendly team that previously served Members at our former location inside the store. “We’re thrilled to be operating in this stunning, brand-new facility which now includes a drive-thru,” says Teresa Clark, Abound’s Shepherdsville Branch Manager. “Please stop by to learn more about how Abound can save you and your family money on checking accounts, home loans, car payments and more!”

The Shepherdsville Branch will host a Grand Opening Event on April 18, 2025 at 11am ET. However, the stand-alone location is already open for business with lobby hours 9am – 5pm, Monday – Friday and Saturdays 9am – 12pm ET. Shepherdsville drive-thru hours are 8am – 6pm, Monday – Friday and Saturdays 8:30am – 4:30pm ET.

On March 10, 2025, Abound also officially opened its new Jeffersontown Branch on Taylorsville Rd. in Louisville. “We’re so excited to extend our reach with convenient access and a full-range of personal and business services for Jeffersontown residents and the broader Louisville market,” says Christina Ott, Abound’s Jeffersontown Branch Manager. “From opening a personal membership to utilizing a night drop for your small business or securing a safety deposit box, we’ve got the tools you need to make managing your money easier.”

The Jeffersontown Branch’s Grand Opening Event is scheduled for May 29 at 11am ET. However, the new location is already open for business and welcoming current and potential Members during its lobby hours, 9am – 5pm, Monday – Friday and Saturdays 9am – 12pm ET. Its drive-thru is open 8am – 6pm, Monday – Friday and Saturdays 8:30am – 4:30pm ET.

More information about Abound’s money-saving financial solutions, community-building mission, and convenient locations may be found at AboundCU.com.

Service One Credit Union Announces Nick Kitchens as Community Development Manager

8443-Nick Kitchens

Service One Credit Union is excited to announce that Nicholas (Nick) Kitchens has joined the team as Community Development Manager. With 20 years of sales experience, Nick brings a wealth of knowledge and a deep commitment to building relationships and fostering financial well-being within the communities Service One serves.

Originally from Franklin, KY, Nick is a proud graduate of Western Kentucky University, where he earned a bachelor’s degree in Sociology. His passion for community engagement and relationship-building aligns perfectly with Service One’s mission to provide financial solutions that empower individuals and businesses.

Outside of work, Nick enjoys watching college basketball, spending time with his wife and daughter, playing golf, discovering new music, and hosting card nights with friends. He lives by the quote: “The only way to do great work is to love what you do.” – Steve Jobs.

"We are thrilled to welcome Nick to our team," said Jennifer Martin, Vice President of Marketing and Community Development at Service One Credit Union. "His experience and passion for community engagement will be invaluable as we continue to expand our outreach and provide exceptional service to our members."

Please join us in welcoming Nick Kitchens to Service One Credit Union!

Justin Webb Chosen to Represent Commonwealth Credit Union in Prestigious Filene i3 Innovation Program

Justin Webb

We are delighted to announce that Justin Webb, Accounting Department Assistant Manager at Commonwealth Credit Union, has been selected to join the prestigious Filene Research Institute’s i3 collaborative innovation program! Since joining Commonwealth Credit Union, Justin has demonstrated exceptional talent and dedication, making this recognition truly well-deserved.

As one of only 23 individuals chosen from a highly competitive pool of applicants, Justin will spend the next two years collaborating with other innovators, tackling transformative projects, and contributing to the advancement of credit unions across North America. This achievement highlights not only Justin’s skills but also the commitment of Commonwealth Credit Union to fostering growth and innovation.

Congratulations, Justin!

Press Release – InfoSight360 - Product Launch

League InfoSight and Leagues/Associations Launch InfoSight360
Combining InfoSight, CU PolicyPro, and RecoveryPro products and leveraging AI

March 31, 2025. Together with its League/Association partners, League InfoSight is excited to launch InfoSight360! This interconnected system is designed to provide the credit union with a 360-degree view of all available resources and information through the League and brings together League InfoSight’s three flagship products, InfoSight, CU PolicyPro, and RecoveryPro into a unified platform and single sign-on. At the heart of this groundbreaking new platform is its artificial intelligence-enhanced search functionality. This advanced feature redefines compliance resources by intelligently analyzing all available content within the combined products, ensuring users receive accurate and comprehensive answers to their compliance questions within seconds, all derived from carefully reviewed and vetted content in a secure environment.

“Thanks to our partnership with all Leagues/Associations nationwide, we are able to leverage the talent and expertise of the best and brightest staff across the country. This collaboration assists us in maintaining both state and federal content within InfoSight360, creating a tool that empowers every credit union employee and volunteer to research and understand compliance and risk for their organization. This helps to create a critical, and effective compliance culture,” emphasized Glory LeDu, CEO of League InfoSight and CU Risk Intelligence.

LeDu also added that “as our regulatory landscape continues to evolve, become more complex and uncertain, we must also rapidly evolve the technology we use to manage it. We knew we had to start utilizing artificial intelligence now, to stay ahead in our strategic priority to be more progressive and deliver a seamless user experience for our credit unions.”

Credit unions will access InfoSight360 via our website (https://www.InfoSight360.com), where they will be instructed to find and bookmark their credit union’s unique URL. InfoSight360 will be available to credit unions on March 31, 2025.

About InfoSight360
InfoSight360 empowers credit unions of all sizes across 50 states and partners with all Leagues/Associations nationally. This comprehensive compliance platform simplifies complex regulatory requirements with a user-friendly interface and a suite of powerful tools, saving credit unions time and resources. Our platform offers automated compliance tracking, customizable reporting, expert guidance, and community resources, allowing credit unions to confidently meet their regulatory obligations while maintaining operational efficiency and focusing on their core mission of serving members. For more information, please visit https://www.InfoSight360.com.

Where the Corporate Transparency Act Landed…

After many months of uncertainty, FinCEN announced an interim final rule on Friday, March 21st, 2025. I’ve reviewed several of our partners publications and consulted with our counsel on this matter. Our Attorney, Dustin Humphries, sums it up best: The rule now exempts all entities created in the United States, previously known as "domestic reporting companies," from the requirement to report beneficial ownership information (BOI). This means that U.S. companies and their beneficial owners are no longer required to submit BOI reports to FinCEN. Furthermore – our friends at NASCUS provided additional clarity on who is still required to report: The interim final rule revises the definition of "reporting company" in its implementing regulations to mean "only those entities that are formed under the law of a foreign country and that have registered to do business in any U.S. State or Tribal jurisdiction ("foreign reporting companies") by filing of a document with the secretary of state or similar office." League CU’s should still encourage members that ask about the CTA/BOI to consult legal counsel, but there should be very few businesses that will need to file BOI given this rule change.

Make sure you’re Reg CC Ready!

I recently sent an email out to all of our CEOs, as well as all of my compliance contacts, to make sure everyone is properly preparing for the changes that lie ahead. As mentioned in the email - this comes as no surprise (it actually happens every 5 years), but because those ‘amounts’ are located in so many places throughout the CU, it can be a tedious task. That said, I’ve put together a quick checklist, and a chart containing those updated ‘amounts’ – so you can make sure you’re Reg Cc Ready by 7/1/25 when the changes go into effect!

• Update Policies and Procedures – new dollar amounts
*Note – you’ll need to have the updated policy in place when the new reg goes in to effect as of July 1, and since it will require board review and approval – you’ll need to tackle that in advance. You can always add a clause within the policy that states when it becomes effective. For example: ‘These changes will be effective as of July 1, 2025’.
• Update New Account Disclosures – new dollar amounts
• Update Hold Notices – new dollar amounts
• Update Lobby Disclosures – new dollar amounts
• Update IT Systems – ensure new dollar amounts are applied to automated settings
• Send Change Notice to members – notifying them of the new amounts
*Note – because this change is advantageous to them – you have until up to 30 days after the change takes place to let them know. However – best for all if you’re proactive!
• Provide Training for Staff – so they’re prepared to apply the new dollar amounts

Here’s a chart to make updating those amounts, as easy as possible:
CHART

Important to note – employees should never determine the number of days a hold is placed… the reason for the exception (extended hold) should – and those numbers did not change! Reg CC defines how long you can hold a check once it’s been deposited, but it’s also valuable to note your right to refuse receiving a check for deposit. If we believe that a check is fraudulent, a hold is not going to protect us, we need not accept the check in the first place. Part of member service is protecting our members from fraud and loss – and this is one of the ways we can do it!

If you need assistance with any of these action items – or are interested in having me, come out and provide Reg CC/Check Hold training to your staff… please let me know!

My calendar fills up fast, and July 1st will be here before we know it – so I hope to hear from you soon!