Welcome to KCU Connect: Your Credit Union Community

We’ve replaced the By the Way newsletter with KCU Connect, a refreshed format designed to share stories, deliver timely updates, and highlight the news that matters most to Kentucky’s credit unions. With clearer sections, quick links, and a more community-focused approach, KCU Connect will make it easier to stay informed and connected across our movement.

March was a landmark month for advocacy. Check out the news below to find out more and to get involved in what’s to come.

In Washington, D.C.

Over 50 Kentucky credit union leaders, along with 6,000 of their credit union friends, gathered in Washington, D.C. for America’s Credit Unions’ Governmental Affairs Conference. While in D.C., attendees heard from thought leaders, regulators, and elected officials. They got to mix and mingle with service partners in the largest exhibit hall anywhere in the credit union space, and Kentucky attendees spent time on Capitol Hill doing the hard work of direct advocacy with our delegation of Representatives and Senators.

In our time on Capitol Hill, attendees were able to thank elected officials for their support of the Credit Union model during 2025’s tax reform efforts and to secure additional support for efforts to enhance the ability of credit Unions to serve their members.

In Frankfort

Back home, the General Assembly continued to do the hard work of crafting a new two-year budget and considering a total of 358 Senate and 939 House bills filed this year. Only a fraction of those legislative proposals will end up passing and being signed into law, but each represents a priority for a legislator and a constituent or a cause, so each must be considered carefully.

Throughout the legislative session, but especially in March when legislators are solidly on the home stretch toward the end of the session, our direct engagement is more important than ever. In that interest, thanks to all the credit union leaders who have invested their time and energy to add their voices to those efforts.

What’s Next

We have officially launched registration for our annual Advocacy on Track event taking place Friday, June 5th at Churchill Downs in the new Club SI adjacent to the redesigned Paddock. This event is presented free of charge for attendees from league-affiliated credit unions in Kentucky, Tennessee, Mississippi, and Indiana. Speakers are in the works and will be announced soon, but be sure to secure your spot now as space is limited, and be sure to thank our generous sponsors for making this event possible again in 2026.

Learn more at https://advocacyontrack.com/

Looking ahead, April brings the end to the State Legislative Session on April 15th as constitutionally mandated. Congress may or may not head home for a two-week recess in the midst of a partial government shutdown stretching toward a record length of time, and talk of another budget reconciliation effort heats up in D.C.

What This Means for You

Stay engaged and continue showing up. Whether it is participating in events like Advocacy on Track, connecting with lawmakers, or adding your voice to ongoing conversations, your involvement makes a difference. The relationships we build and the advocacy we do together directly impact how credit unions are understood and supported at both the state and federal levels.

If you have any questions about advocacy or upcoming legislative issues, feel free to reach out.

Sincerely,

Kyle Hagerty-1-1
Kyle Hagerty
SVP & Chief Advocacy Officer

Email Kyle

Compliance Mini Workshop

April 16, 2026 | Virtual

Time: 9:30 a.m. - 12:30 p.m. Eastern (8:30 a.m. - 12:30 p.m.)

Educational Investment:
Over $100M - $199 per CU (unlimited participants)
Under $100M - $109 per CU (unlimited participants)

Compliance in Motion: Update, Dialogue, and CMS Optimization in Challenging Times

Regulatory expectations are evolving, operational risk is accelerating, and examiner focus continues to sharpen. This half day compliance workshop combines a focused regulatory update with meaningful round table discussion to help your credit union refine and strengthen its Compliance Management System during today’s challenging environment.

This is not just another update session. It is a working forum and a great use of your team’s time. We begin with a clear overview of recent regulatory developments, enforcement trends, and supervisory priorities, then shift to facilitated discussion so participants can compare practices, share challenges, and explore practical solutions. The goal is not simply to understand what is changing, but to fine tune how your institution responds.

MORE INFORMATION

Executive Forum – EARLY BIRD

Registration is Now Open!

May 14-15, 2026 | Lexington Marriott City Center

EARLY BIRD REGISTRATION: $599 until April 17

On-Time Registration: $650 per person
The registration fee includes Friday breakfast, refreshment breaks, and conference handouts and materials. Registration also includes admission to the Thursday evening reception and dinner at Jeff Ruby’s Steakhouse.

Join us for a two half-day Executive Forum created exclusively for credit union CEOs and senior leaders.

This high-level gathering delivers strategic updates, meaningful discussion, and real-world insights from peers who understand the complexity of leading today’s credit unions. Walk away with fresh perspective, practical ideas, and stronger connections with leaders across the state.

WHO SHOULD ATTEND:

Attendance is limited to League-affiliated and associated credit unions. This conference is a special occasion for CEOs and their Executive Teams to come together for valuable education and networking opportunities.

MORE INFORMATION

Early Bird Deadline ENDS APRIL 1 for Southeast Management School

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Time is running out to take advantage of early bird pricing for Southeast Management School. The early enrollment deadline is April 1, and credit union professionals are encouraged to register now to secure their spot before rates increase.

Hosted in partnership with Southeastern Regional Credit Union Schools, Southeast Management School will be held June 14-19, 2026 at the UGA Center for Continuing Education in Athens, Georgia. This nationally recognized program is designed to strengthen leadership, financial, and operational skills for current and emerging credit union leaders.

For those looking to grow into or excel in leadership roles, the program offers a valuable opportunity to step away from day-to-day responsibilities and focus on strategic thinking, professional development, and peer collaboration.

Kentucky’s Credit Unions also plans to offer financial assistance for credit unions under $250 million in assets to help offset the cost of attendance. Scholarship details and award amounts are still being finalized, but interested participants are encouraged to apply once available.

Key Dates:

Early Bird Deadline: April 1, 2026
Final Enrollment Deadline: June 1, 2026
Program Dates: June 14–19, 2026

Don’t miss this opportunity to invest in your growth and your credit union’s future. Register today at: https://srcus.org/management-school/

ENROLL NOW

Commercial Lending and Member Business Lending

Many credit unions are involved in business lending whether it’s a vehicle loan for a local small business owner or a fleet of vehicles, or even other types of business loans such as commercial real estate. We occasionally get questions about the statutory cap and the factors identified in NCUA’s regulations for determining whether a vehicle loan should be classified as a commercial loan or a member business loan.

Statutory Limits

The member business lending statutory cap is set forth in §723.8 of NCUA’s regulations and provides as follows:

“The aggregate limit on a federally insured credit union's net member business loan balances is the lesser of 1.75 times the actual net worth of the credit union, or 1.75 times the minimum net worth required under section 1790d(c)(1)(A) of the Federal Credit Union Act”

This means that a federally insured credit union’s total net business loan balances may not exceed 1.75 times the credit union’s actual net worth or 12.25% of assets.

Commercial Loans vs Member Business Loans

The definition of commercial loan is set forth under §723.2, and is:

“any loan, line of credit, or letter of credit (including any unfunded commitments), and any interest a credit union obtains in such loans made by another lender, to individuals, sole proprietorships, partnerships, corporations, or other business enterprises for commercial, industrial, agricultural, or professional purposes, but not for personal expenditure purposes.”

There are several types of loans that are not treated as commercial loans and are specifically excluded within the commercial loan definition even if they involve lending to a business. These exclusions to the commercial loan definition include loans secured by a 1 to 4 family residential property, loans secured by vehicles made for household use, business loans to a borrower less than $50,000, loans fully secured by shares or deposits, loans made between credit unions, loans to a credit union service organization (CUSO), and loans issued under the Paycheck Protection Program administered by the Small Business Administration.

For purposes of this blog let’s focus on the exclusion above pertaining to “loans secured by a vehicle manufactured” for household use.” NCUA specifically defines it under §723.2 - it is as follows:

“Loan secured by a vehicle manufactured for household use means a loan that, at origination, is secured wholly or substantially by a lien on a new and used passenger car and other vehicle such as a minivan, sport-utility vehicle, pickup truck, and similar light truck or heavy-duty truck generally manufactured for personal, family, or household use and not used as a fleet vehicle or to carry fare-paying passengers, for which the lien is central to the extension of credit. A lien is central to the extension of credit if the borrower would not have extended credit in the same amount or on terms as favorable without the lien. A loan is wholly or substantially secured by a lien on a vehicle manufactured for household use if the estimated value of the collateral at origination (after deducting any senior liens held by others) is greater than 50 percent of the principal amount of the loan.”

So, “a vehicle manufactured for household use” refers to passenger vehicles - such as cars, minivans, sport utility vehicles and pickup trucks – generally manufactured for personal, family, or household transportation and are not used as fleet vehicles or to transport fare paying passengers. Therefore, loans that are secured by such vehicles are excluded from the definition of a commercial loan but may still qualify as member business loans and must be included in the statutory cap calculation.

For member business loans, there isn’t a standalone definition of the term “member business loan” in §723.2. However, for purposes of determining whether vehicles manufactured for household use qualify as member business loans, §723.8(c) provides the applicable guidance:

“Any loan secured by a vehicle manufactured for household use that will be used for a commercial, corporate, or other business investment property or venture, or agricultural purpose, is not a commercial loan but it is a member business loan (if the outstanding aggregate net member business loan balance is $50,000 or greater) and must be counted toward the aggregate limit on a federally insured credit union's member business loans.” (Emphasis added).

Therefore, it seems that even though such loans are excluded from the commercial loan definition they may still qualify as member business loans and must be included in the statutory cap – unless the credit union is already exempt from the statutory cap requirements (see §723.8(d)).

I hope this blog sheds a little more light on the vehicle exclusion in the commercial loan definition and how the nuances may impact whether a vehicle loan may or may not count toward the cap. As a resource, the commercial and member business loan section in NCUA online Examiner’s Guide is a great tool for untangling the complexities of business lending.

Responding to a Data Breach

As we’ve witnessed in the past, cyberattacks tend to rise when global tensions flare. With the United States now in a conflict with Iran, credit unions should stay alert to the cyber threat environment as bad actors set their sights on the financial services sector. So, we’re going back-to-basics on what the National Credit Union Administration (NCUA) expects credit unions to do when a cyberattack results in compromised sensitive member data.

Unauthorized Access to Sensitive Member Information

Part 748 of NCUA’s regulations requires federally-insured credit unions to develop and implement “risk-based” response programs to address “instances of unauthorized access to member information in member information systems” (commonly referred to as a “security breach” or “data breach”).

“Member information systems” consist of “all of the methods used to access, collect, store, use, transmit, protect, or dispose of member information,” including systems maintained by the credit union’s service providers (Part 748, Appendix A, Paragraph I.C.2.d.). This term includes both hardware and software programs.

Appendix B to Part 748 provides credit unions with direction on how to meet this regulatory requirement, as required by the Gramm-Leach-Bliley Act (GLBA). Note that NCUA has proposed to move this guidance from Appendix B to a Letter to Credit Unions. See our letter to the agency here.

When a credit union becomes aware of an incident of unauthorized access to “sensitive member information” in member information systems, the institution is required to conduct a reasonable investigation to promptly determine the likelihood that the information has been or will be misused. Sensitive member information includes data such as:

A member’s name, address, or telephone number used in conjunction with the member’s social security number, driver’s license number, account number, credit or debit card number, or a personal identification number or password that would permit access to the member’s account.
Any combination of components of member information that would allow someone to log onto or access the member’s account, such as username and password or password and account number.
The credit union’s response program must also include procedures to notify members about incidents of unauthorized access to member information systems that could result in substantial harm or inconvenience to the member (e.g., stolen funds, identity theft).

Components of a Response Program

At a minimum, a credit union’s response program should contain procedures for:
Assessing the nature and scope of an incident and identifying what member information systems and types of member information have been accessed or misused.
Notifying the appropriate NCUA Regional Director or state supervisory authority (for federally insured state-chartered credit unions), as soon as possible when the credit union becomes aware of an incident involving unauthorized access to or use of sensitive member information. See “The 72-Hour Rule” below.
Notifying appropriate law enforcement authorities, in addition to filing a timely Suspicious Activity Report (SAR), in situations involving Federal criminal violations requiring immediate attention, such as when a reportable violation is on-going.
Taking appropriate steps to contain and control the incident to prevent further unauthorized access to or use of member information (e.g., monitoring, freezing, or closing affected accounts) while preserving records and other evidence.
Notifying members as soon as reasonably possible when the credit union determines that misuse of sensitive member information has occurred or is reasonably possible.
The member notice will explain the type of information that was compromised, the steps the credit union has taken to prevent further unauthorized access, provide a member-assistance phone number, and recommend next steps (i.e., stay vigilant, review account statements, obtain a free credit report/fraud alert, and report identity theft, along with Federal Trade Commission Resources, etc.) See Appendix B, Section III, B. for the complete list of the contents.
If a service provider experiences unauthorized access to member information stored in its systems, the credit union is still responsible for notifying its members and regulator. However, the credit union may authorize or contract with its service provider to send those notifications on its behalf.

The 72-Hour Rule

As of September 1, 2023, all federally insured credit unions are required to notify the NCUA as soon as possible, and no later than 72 hours, after the credit union reasonably believes it has experienced a “reportable cyber incident” or received a notification from a third-party regarding a reportable cyber incident.

A reportable cyber incident is any “substantial” cyber incident that leads to one or more of the following:

A substantial loss of confidentiality, integrity, or availability of a network or member information system that results from the unauthorized access to or exposure of sensitive data, disrupts vital member services, or has a serious impact on the safety and resiliency of operational systems and processes.
A disruption of business operations, vital member services, or a member information system resulting from a cyberattack or exploitation of vulnerabilities.
A disruption of business operations or unauthorized access to sensitive data facilitated through, or caused by, a compromise of a credit union service organization, cloud service provider, or other third-party data hosting provider or by a supply chain compromise.

Some examples of reportable cyber incidents include:

Ransomware attacks impacting critical systems or data.
Unauthorized access to an information system containing a substantial amount of sensitive member information.
Data breach exposing a substantial amount of employee personal identifiable information.
Distributed denial of service attack causing significant downtime.
Phishing attack resulting in successful installation of malware.
For more examples, see NCUA Letter 23-CU-07: Cyber Incident Notification Requirements

What about state law? Note that this blog post only covered NCUA’s requirements. Many states have enacted their own consumer privacy and data security laws that may provide additional protections. Some of these laws specifically exempt federally chartered banks and credit unions that must already comply GLBA; however, some do not.

Further, while GLBA preempts inconsistent state provision(s) that conflict with federal standards, state laws that provide stronger consumer protections (e.g., broader notice requirements) may still be applicable to federally chartered institutions.

Source: Responding to a Data Breach | America's Credit Unions

KCU Connect Lunch Series

Our lunches are off to a great start for the year! We are excited to keep the momentum going! Look for a city near you below, and be sure to register to hold your seat!

April 15 - Paducah - REGISTER HERE
May 6 - Ashland - REGISTER HERE
June 24 - Owensboro (NEW DATE)
July 15 - Frankfort
August 19 - Northern KY
September 2 - Corbin
September 24 - Lexington
October 28 - Louisville

PAC Candy Bars

If you participate in the PAC Candy Bar program, we have some updated materials to help make it as easy for you as possible to request candy bars and share with members!

New form to request candy bar drop off from league staff - REQUEST HERE

This new flyer includes the updated price, as well as the necessary disclaimer.

SEE NEW FLYER HERE

**If you have interest in participating in the PAC Candy program, please reach out to Olivia Sharp at osharp@kentuckyscreditunions.org to discuss the necessary paperwork and get set-up.

Join Us in Celebrating Credit Union Youth Month

April is Credit Union Youth Month, a time when credit unions across the country focus on helping young members build strong financial habits and understand the importance of saving.

The Maine Credit Union League has created a set of shareable resources that credit unions nationwide can use to celebrate and promote Youth Month.

If you’re looking for ready-to-use assets, you can download the full marketing packet here:
https://mainecul.org/wp-content/uploads/2026/02/2026-CU-Youth-Month-Files.zip

2026 Diamond Awards

The most prestigious annual credit union marketing competition

The Diamond Awards recognize and reward creative excellence and outstanding results.

2026 Diamond Award winners

Congratulations to the 2026 winning credit unions! More than 180 credit unions were presented with their awards on March 24, 2026, at the Marketing, PR & Development Council Conference in Aurora, CO.

We are proud to recognize these Kentucky winners:

- Commonwealth Credit Union
- Signet Federal Credit Union
- UK Credit Union

To view the full list of winners, please click HERE.

Abound Credit Union Recognized as a 2026 Winner of Best Places to Work in Kentucky™

Abound Credit Union was recently named one of the 2026 Best Places to Work in Kentucky. This year’s award marks the fifth year in a row that the Credit Union has been recognized as a leading employer in the state.

The 22nd 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.

“The dedication of our 435 Team Members is truly inspiring. Each day, they 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 this honor as a Credit Union and recognize the ongoing efforts of our amazing Team Members!”

Abound Credit Union is a leader in Financial Education, reaching thousands of students and adults of all ages throughout our Kentucky communities. This work is made possible through Abound’s Team Members partnering with schools, community organizations and veterans groups to provide curriculum and support. In addition, Abound Team Members disbursed more than $882 million in loans to our Members last year – 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.

Winners of 2026 Abound Credit Union Celebration of the Arts Awarded at WKU

Abound Credit Union Celebration of the Arts is a competitive exhibition located at the Kentucky Museum on the campus of Western Kentucky University in Bowling Green.

The art show, generously sponsored by Abound Credit Union for the third year in a row, is open to the public through April 17, 2026, with the exception of WKU's Spring Break, March 16-21, 2026, when the museum is closed.

“We’re proud to be the title sponsor of this exhibition and partner with institutions like WKU to enhance the lives of Kentuckians,” said Jake Darabos, CPA, Chief Finance and Administration Officer of Abound Credit Union.

The art competition was open to all residents 18 years of age or older, living in Kentucky within 65-miles of the museum along with current WKU students, faculty, and staff members. This year’s exhibition awards were presented February 27, 2026.

Select winners included:

Best in Show - C. David Jones
Kentucky Museum Purchase Award - John Yakel
Student Purchase Award - Emma Durham
Artworks Merit Award - Caleb Smith
The World’s Greatest Studio Tour Merit Award - Ashlyn Smith

A full listing of all winners is available here.

Commonwealth Credit Union President/CEO Karen Harbin Elected Chair of America’s Credit Unions Board of Directors

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Commonwealth Credit Union is celebrating exciting news as President/CEO Karen Harbin recently stepped into a national role shaping the future of the credit union movement.

Harbin has been elected Chair of America’s Credit Unions Board of Directors, a distinction announced during the 2026 Governmental Affairs Conference in Washington, D.C.—the largest annual advocacy event for credit unions across the country. Her one‑year term places her at the forefront of the organization that champions cooperative finance and strengthens credit unions nationwide.

Harbin’s career has been defined by a deep commitment to the credit union philosophy and a passion for policies that put people first. Her election reflects the trust and respect she has earned across the industry, as well as her dedication to helping credit unions better serve their members and communities.

Her message to the movement was one of unity, momentum, and purpose, emphasizing the importance of advocacy and the opportunity to build a modern, connected future for credit unions while staying true to their cooperative roots.

At Commonwealth Credit Union, Harbin’s leadership is centered on financial empowerment, community partnership, and a people‑first approach to service. Her new position allows her to help guide national advocacy efforts that support credit unions’ ability to uplift their members and strengthen the communities they call home.

To read America’s Credit Unions’ full announcement, visit: https://www.americascreditunions.org/news-media/news/harbin-elected-board-chair-americas-credit-unions

Members Choice Credit Union Celebrates 94th Annual Meeting

March was an incredible month for our credit union, highlighted by our 94th Annual Meeting, held on March 19th in Boyd County, Kentucky. We were honored to have the Credit Union League join us for this special occasion, with a special thanks to Olivia Sharp for her presence and support.

The event brought together our members to reflect on the successes of the past year, enjoy fellowship, and participate in some great giveaways. It was a wonderful opportunity to celebrate the dedication of our staff, the loyalty of our members, and the strong sense of community that makes our credit union wonderful!

We are extremely proud of the progress we achieved over the past year and are excited for the year ahead. The Annual Meeting served as a reminder of what we can accomplish together, and we are excited to continue building on this momentum to better serve our members and strengthen our community.

From the President's Desk

Fintech’s Next Phase: From Innovation to Reinvention

The fintech conversation is evolving. What was once about faster payments and better apps has become something much bigger: a fundamental shift in how financial services are delivered and experienced.

Here are the key advancements driving that change:

AI Moves from Assistant to Operator

Artificial intelligence is no longer just supporting decisions—it’s making and executing them. From real-time fraud detection to automated underwriting and financial guidance, AI is rapidly reshaping how institutions operate and scale.

Personalization Becomes the Expectation

Members now expect experiences tailored to their behaviors and needs. Fintech platforms are delivering proactive insights, product recommendations, and outreach—often before a member even asks.

Payments Become Instant and Invisible

Money is moving faster—and more seamlessly—than ever. Real-time payments, improved cross-border capabilities, and programmable transactions are turning payments into a background function rather than a standalone experience.

Financial Services Go Where Members Are

Through embedded finance and Banking-as-a-Service, financial products are increasingly delivered inside non-financial platforms. The point of banking is shifting to the point of need.

Ecosystems Replace Silos

Open banking and data-sharing are accelerating a move toward partnership-driven models. Institutions are no longer operating alone—they’re part of broader financial ecosystems.

What This Means for Credit Unions

This moment isn’t just about technology—it’s about strategy.

Credit unions that succeed will:

- Leverage AI while maintaining trust
- Deliver personalized experiences at scale
- Integrate into broader ecosystems
- Stay grounded in their mission while moving faster

Bottom Line

Fintech is no longer about disruption—it’s about reinvention.

The question isn’t whether change is coming. It’s:
What role will we choose to play in the future of financial services?

Sincerely,

Jim Kasch

Jim Kasch
League President

Sharing stories, latest updates and news that matter most

Welcome to KCU Connect: Your Credit Union Community

In This Issue:

Advocacy Connect

Learning Connect

Compliance Mini Workshop

Executive Forum – EARLY BIRD

Early Bird Deadline ENDS APRIL 1 for Southeast Management School

SAVE THE DATE for these Signature Events!

Compliance Connect

Commercial Lending and Member Business Lending

Responding to a Data Breach

Engagement Connect

KCU Connect Lunch Series

PAC Candy Bars

Join Us in Celebrating Credit Union Youth Month

Community Connect

2026 Diamond Awards

Abound Credit Union Recognized as a 2026 Winner of Best Places to Work in Kentucky™

Winners of 2026 Abound Credit Union Celebration of the Arts Awarded at WKU

Commonwealth Credit Union President/CEO Karen Harbin Elected Chair of America’s Credit Unions Board of Directors

Members Choice Credit Union Celebrates 94th Annual Meeting

From the President's Desk

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