BOSTON — Attendees at NAFCU's 46th Annual Conference hold forthon the tax exemption, director pay and that old time credit unionfeeling.

Are you concerned about threats to credit union taxexemption?

Our congressmen know the number of constituents we represent.Credit unions have always had strong grassroots support, and theyknow that. That's why we're victorious in Washington.

Wayne Winkler, president/CEO
$770 million Mid-Hudson Valley FCU
Kingston, N.Y.

It seems like this battle keeps re-evolving, every year, likeit's the only battle we fight, over and over again, againstthe bankers. We monitor ourcommunity bank competition, and it seems like from one-half totwo-thirds of our local community banks are S. Corps and don't paytaxes. So, if they're going to tax us, then open it up and levelout the playing field with the banks.

Richard Odenthal, CEO
$719 million Central Minnesota CU
Melrose, Minn.

Next: Paying Directors?

What do you think about credit unions payingdirectors?

Busy people who are successfuland business savvy, their time is worth a lot. But, I think you'rebetter off looking for someone with commitment rather than offeringcompensation. Our volunteers say they've learned a lot from theirexperience on our board, things that have helped them with theirbusiness or career. The networking has helped them professionally,and the information they've gained from conferences has been abenefit to them, too. We've had discussions during board meetingsabout pay. We tell them, okay, if you want to be paid, that's fine.Just bring it up before the members at the next annual meeting. Wehave about 500 members attend our annual meeting, so I think that'swhy it's never happened.

Richard Odenthal, CEO
$719 million Central Minnesota CU
Melrose, Minn.

This paying directors, to me it'slike raising the MBL cap. It seems like some want credit unions tochange into something more like banks. I see it this way: there arestill 24 hours in a day. That hasn't changed. You make time forwhat you want to do. I've served on the board for more than 15years, and not once have I ever considered being paid for it. It'snever come up, not once.

Jay Rainey, director
$1.7 billion Founders FCU
Lancaster, S.C.

(See Credit Union Times' series on boardcompensation.)

Next: The Credit UnionPhilosophy

Even though you're a large credit union, it seemslike you have retained the traditional credit union philosophy. Howdo you do it?

A couple of years ago, we openeda bilingual branch in one of our markets, and NCUA Chairman DebbieMatz came to our grand opening. She said, “You are a large creditunion that operates like a small credit union,” and I thought thatwas quite a compliment. The way we see it, if you don't want to bea credit union – if you want to do a lot of business lending,accept alternative capital, those kinds of things – then basically,you want to be a bank, so just convert and be done with it. Thecurrent system in place is adequate to meet the needs of members.Business lending is very risky, and I worry it could be the nextbig bailout. If you do right for your members, they'll come to you.You don't have to find new and creative ways to attract them.

When we've met with our congressman, he's said, “Look, if youwant to increase your MBL cap, fine. If that's what you reallywant, I'll vote for it. But, right now, it's easy for me to defendyou when the banking lobbyists come in. I can tell them what thedifference is between credit unions and banks. But as thedifference between you and banks goes away, it becomes harder forme to fight for you and your tax status.”

Bruce A. Brumfield, president/CEO
$1.7 billion Founders FCU
Lancaster, S.C.

Also at NAFCU Annual Conference:

• 4 Big Things from Confab
• Becker Calls it a Wrap
• Dollar Says Let Golden GooseLive
• Matz Reveals New Risk Rule
• Thursday in Pictures
• Non-Interest Income Balance
• Berger Promises Training Boost
• CFPB is Good for You
• Wednesday in Pictures
• Non-QMs Offer Opportunity
• Managing Outsourced Collections
• Losing Money at Loan Closings
• New Officers for 2013-2014