Florida Credit Union League

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Florida Credit Union League Annual
Meeting Presentation By Don Saxon,
Director Sharon Whiddon, Bureau Chief Office of
Financial Regulation
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OFFICE OF FINANCIAL REGULATION
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Mission

• The Office of Financial Regulation is dedicated
  to safeguarding the private financial interests
  of the public by licensing, chartering, examining
  and regulating financial institutions and
  financial service companies in the State of
  Florida. The Office strives to protect consumers
  from illegal activities of financial institutions
  and financial service companies, while
  preserving the integrity of Floridas markets
  and financial service industries.

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Post Merger Comments About Office of Financial
Regulation Operations
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(No Transcript)
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Office Overview

• 9 Offices
• Pensacola
• Jacksonville
• Orlando
• Tampa
• West Palm Beach
• Fort Lauderdale
• Fort Myers
• Miami
• Tallahassee

• Don Saxon, Director
• Alex Hager, Assistant Director
• Linda Charity, Deputy Director, Financial
  Institutions
• Rick White, Deputy Director, Securities Finance
  Regulation
• Rob Beitler, General Counsel
• Bob Rosenau, Chief, Financial Investigations
• Bob Dyar, Inspector General
• Kathleen Kight, Research Planning Administrator

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Responsibilities

• Regulation of
• Depository nondeposit financial institutions
  financial service companies
• Securities firms, branches, agents and offerings
• Investigation of alleged violations of banking,
  securities, and finance statutes

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Financial Institution Regulation

• Enforces Financial Institutions Codes
• Bureau of Bank Regulation, District I
  (North)examines supervises state-chartered
  banks to ensure they operate in a safe and sound
  manner
• Bureau of Bank Regulation, District II (South)
  as District I plus foreign banking organizations
  nondeposit trust companies
• Bureau of Credit Unions examines supervises
  state-chartered credit unions

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Financial Institution Regulation

• Mission
• Provide for and promote public confidence in
  state financial institutions
• Protect the interests of the public in proper
  conduct of state financial institutions

• Number of Institutions
• 103 Credit Unions
• 194 Banks
• 50 Foreign Banks
• 16 Trust Companies
• Total Assets Exceed
• 75.4 Billion At
• December 31, 2003

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• NASCUS Accreditation Program
•  Benefits of accreditation include
•   Recognition the prestige of begin an
  Accredited State Supervisory Agency
• Advocacy Supports requests to legislatures for
  funding and adequate supervisory authority
• Education and
• Improves agency operations.

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FCUL State Law Review Committee

• Established in 2003 to review and propose
  revisions to Chapters 655 and 657, Florida
  Statutes.
• Goal to modernize state credit union
  regulations and to reduce regulatory burden while
  maintaining a safe and sound operating
  environment.
• Last done in 1992.
• Florida Law no longer requires the Sunset of
  Florida Statutes every 10 years.
• Office of Financial Regulation is working
  closely with the League and the committee
  throughout this process.

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SELECTEDCREDIT UNIONDATA
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Credit Union Numbers
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Credit Union Assets
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Florida Credit Union Comparison
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Ratio ComparisonDecember 31, 2003
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Field of Membership DataThrough May 31, 2004
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Licensing ActivityThrough May 31, 2004
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EXAMINATION ISSUES
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Indirect Lending

• Business Plan
• Sound Lending Policies
• Strong Internal Controls
•   Strong Collection Department
•   Limitations Total, by Dealer, by Grade
•   Monitoring Procedures by Dealer, by Grade,
  by Loan Officer
•   Verify Verify Verify

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Overdraft Programs

• Education Of Members to the Risk of the
  Program
• Advertising Clear and Not Misleading
• Complete Disclosure Program and Suspension
• Dollar Limits of Over Draft Protection
• Policies and Procedures Shares and Deposits,
  Collections, ALM-Liquidity, Charge Off
• Staffing

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Asset/Liability Management, Liquidity ROAA

• Rising Interest Rate Environment
• Long Term Assets
• Share and Deposit Run Off
• Re-Assessing Assumptions

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BOARD GOVERNANCE
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National Issues

• FASB Participations, Merger Consolidations
•   Unrelated Business Income Tax UBIT
•   PCA Net Worth Reform
•   NCUA Overhead Transfer
•   Fraudulent Credit Union Activity

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Contact Information

• Don B. Saxon
• Director
• [phone]
• dsaxon_at_dfs.state.fl.us
• Alex Hager
• Assistant Director
• [phone]
• ohager_at_dfs.state.fl.us

• Linda B. Charity
• Deputy Director
• [phone]
• lcharity_at_dfs.state.fl.us
• Sharon B. Whiddon
• Bureau Chief, Credit Unions
• [phone]
• swhiddon_at_dfs.state.fl.us