
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.
Have an announcement or news article you would like to submit? Send us an email!
In Frankfort
January is always a month that represents new beginnings, both literally and figuratively, and the same holds true for advocacy here in Kentucky. This month marked the beginning of the 2026 Session of the Kentucky General Assembly, which credit unions met with enthusiasm at our annual Credit Union Legislative Breakfast and Day in Frankfort. About 50 credit union leaders from every corner of the Commonwealth, from Paducah to Ashland, advocated directly with state elected officials on several critical issues.
While January is certainly a starting point in many ways for our advocacy, especially here in Kentucky, it is also an important milestone in an ongoing journey of engagement and relationship-building with lawmakers at all levels.
In Washington, D.C.
With efforts in Washington, D.C. to impose a 10 percent rate cap and to enact credit card interchange reform gaining momentum this month, and with SB 87 filed in the Kentucky State Senate, it is more important than ever to keep the energy up and continue being the best everyday advocates you can be. In that interest, the League system has been deeply engaged with our partners at America’s Credit Unions for a series of calls held throughout the last few weeks to ensure that every corner of the movement was and will remain aligned on strategy, communication and goals. This effort, led by ACU President Scott Simpson has enabled the movement to engaged to great effect with federal lawmakers in both the House and Senate to further the interests of Credit Unions.
What This Means for You
In that interest, please reach out with any questions, and when asked, please consider contacting your legislators to make sure your voice is heard.
January is just the start of what promises to be a dynamic, exciting, and very impactful year for our movement. Let’s build on our strong start and keep the momentum going all year.
If you have any questions about advocacy or upcoming legislative issues, feel free to reach out.
Sincerely,

Kyle Hagerty
SVP & Chief Advocacy Officer
Kentucky’s Credit Unions is excited to partner with Luminate Louisiana Credit Unions to offer your Certified Financial Counseling candidates an enhanced learning experience through Luminate’s FiCEP Portal.
This enhanced program uses America's Credit Unions' FiCEP edition 6 textbook and adds elements to help participants easily grasp and retain counseling concepts and knowledge. Luminate’s engaging and interactive webinars use relevant examples and interactive skill reviews help reinforce the knowledge you need to pass the exam and effectively perform your counseling duties.
Spring Education Program begins March 9, 2026 and ends May 8, 2026
Deadline to register for the Spring Class and receive a physical book is January 23, 2026. Late registration for the Spring class will require a PDF book registration and will remain open until February 20.
Disclaimer: This link will take you to Luminate’s website. To get registered, you will need to create an account.
February 9, 2026 | Virtual
Join credit union attorney and collections consultant David Reed for an exciting virtual training event as he highlights the latest techniques, tips, and trends to maximize your collections function in the new world order. The event includes sample checklists and procedures, as well as ample time to answer your questions.

Are U a lifelonglearner ready to better the future for yourself, your organization, and the movement?
We recognize you as a shaper of the industry and are dedicated to your ongoing development. Gain the skills and knowledge you need for that next step in your career at SRCUS’ Southeast Management School!
At SRCUS:
The three-year program offers a rigorous academic curriculum with direct credit union applications. For more than 50 years, SRCUS has prepared leaders like U to lead the financial industry of tomorrow.
Be a part of the incoming class. Invest in your professional growth today!
Enrollment Opens in December!
This is your chance to secure a spot in one of the most respected leadership development programs in the credit union industry.
Whether you’re looking to advance your career or develop your leadership skills, Southeast Management School offers the tools and knowledge U need to succeed. And with the new Certified Credit Union Executive (CCUE) designation available to graduates, there’s never been a better time to enroll.
Key Dates:
For Alumni:
If you’re a past Southeast Management School graduate (class of 2014 or later), you’ll also have the opportunity to join the SRCUS Alumni Program, running June 17–19, 2026. This on-campus experience offers a path to earn your CCUE designation through program refreshers and testing. Registration also opens in December!
Stay tuned for more details on how to enroll → www.srcus.org
March 24, 2026 | Louisville, KY
Fraud continues to evolve, and credit unions must stay ahead of risks that emerge at account opening, through payments, and across member interactions. This one-day summit brings together industry experts and practitioners to share practical insight into current fraud threats, investigative trends, and mitigation strategies credit unions can apply across their operations.
Sessions will focus on fraud risks at account opening, perspectives from IRS Criminal Investigation, understanding fraud exposure through the cardholder experience, and current fraud trends impacting financial institutions. The summit concludes with a roundtable discussion centered on real-world challenges, lessons learned, and best practices for managing fraud risk across channels.
The summit will be held at the League Office. If registration exceeds 20 attendees, the event will be moved to an off-site location. Registered attendees will be notified in advance if a location change is needed.
Agenda Summary:
Fraud Risks at Account Opening
IRS Criminal Investigation at a Glance
Understanding Fraud Risk Through the Cardholder Lens
Lunch
Fraud Trends
Roundtable Discussion
Additional details on sessions and confirmed speakers will be announced soon.
Starting Jan. 14, the Federal Reserve will resume accepting pennies from credit unions and other financial institutions at commercial coin distribution locations that were previously suspended. Thursday’s announcement follows continuous advocacy from America’s Credit Unions, the American Association of Credit Union Leagues (AACUL), and all state leagues after penny production ended late last year.
The organizations wrote to Federal Reserve Governor Christopher Waller and members of Congress last month to address the uncertainty that has followed the end of penny production.
According to the Fed, it will monitor the flow of penny deposits from financial institutions as these changes take effect, and will determine whether subsequent expansion of ordering options for pennies is feasible.
America’s Credit Unions, AACUL, and leagues continue to seek clarity on the end of penny production, including a uniform national rounding standard.
Happy New Year everyone. I hope you all had a relaxing holiday, because the IRS did not. On December 31, 2025, the IRS issued proposed rules on the vehicle loan interest deduction and its reporting requirements. The rule helps clarify the reporting requirements for credit unions, including whether credit unions are required to determine if a loan qualifies for the deduction. This blog will go over some key points of the proposed rule. For more information, members can review our updated FAQs that discuss the proposed rule in more detail. America's Credit Unions will also issue a Regulatory Comment on the proposed rule and plans to submit comments to the IRS as they work to finalize their rule.
What are a credit union's obligations under the proposed rule?
Under the proposed rule, an "interest recipient" who receives at least $600 of interest on a Specified Passenger Vehicle Loan (SPVL) is required to file an information return with the IRS and furnish a statement to the payor of record.
The proposed rule provides the following definition of SPVL: "Indebtedness is an SPVL only if the indebtedness is incurred by the taxpayer after December 31, 2024, for the purchase of an [applicable passenger vehicle] for personal use and is secured by a first lien on that APV."
Based on this definition, in order to determine whether a loan is an SPVL, a credit union must determine whether a vehicle is an Applicable Passenger Vehicle (APV) for personal use and must obtain a first lien on the APV.
What debt can be included in a Specified Passenger Loan Vehicle?
Under the proposed rules, indebtedness qualifies as an SPVL if the indebtedness is incurred for the purchase of an APV or the indebtedness is for items and amounts customarily financed in an APV purchase transactions and that are directly related to the purchased APV. The preamble provides the following examples:
Service plans
Extended warranties
Sales tax and vehicle related fees
The preamble also provides examples of what is not included:
Collision and liability insurance
Purchase property other than the APV, such as a boat
Indebtedness to pay off amounts due on another vehicle or loan
One key unknown here is GAP insurance. Although GAP insurance is customarily financed in an auto loan, the preamble specifically states that collision and liability insurance is not included as eligible indebtedness. Since GAP insurance is typically used to cover the gap in the note owed and the market value of the car following events such as collisions, it remains unclear whether interest earned on any financed GAP amounts would be deductible.
What is an Applicable Passenger Vehicle?
Under the proposed rule, in order to be considered an APV a vehicle must meet the following requirements:
The original use commences with the taxpayer
The vehicle is manufactured primarily for use on public streets
The vehicle has at least 2 wheels
The vehicle is in a qualified vehicle classification
The vehicle is treated as a motor vehicle under title II of the Clean Air Act
The vehicle's gross vehicle weight rating is less than 14,000 ponds
The final assembly of the vehicle occurs within the United States
When is a credit union required to submit an information return and written statement?
Under the proposed rule, an interest recipient is generally required to file an information return on or before February 28th for physical filings and on or before March 31st for electronic filings. An interest recipient is also required to furnish the payor of record with a written statement on or before January 31st.
One key thing credit unions should note is that the proposed rule requires information returns to be filed with the IRS and that this requirement applies to calendar years beginning after December 31, 2024. This may only be a proposed rule, but if the final rule is published within 18 months of the passage of H.R. 1 (aka the One Big Beautiful Bill act), the final rule can be retroactively effective to the passage date of H.R. 1.
That being said, prior to the issuance of the proposed rule, the IRS issued Notice 2025-57 which provided transitional guidance on the information reporting requirements for interest recipients. Notice 2025-57 provides that an interest recipient will be deemed to have satisfied the reporting obligations under section 6050AA for interest on SPVLs received in 2025 if the interest recipient makes a statement available to the individual indicating the total amount of interest received in calendar year 2025 on an SPVL. The IRS also released draft Form 1098-VLI which is labeled as a 2026 draft form.
Based on this transitional guidance and draft Form 1098-VLI, it appears that no penalties will be assessed for not filing an information return with the IRS for tax year 2025. However, neither the proposed rule nor the preamble discuss the effect of the proposed rule or potential retroactive effectiveness of a final rule on the transitional guidance. The preamble merely acknowledges that transitional guidance was issued.
Credit unions may wish to consult with a tax professional to make a risk-based decision regarding filing information returns for tax year 2025. America's Credit Unions will be attending a public hearing on the proposed rule on February 24th to obtain more guidance from the IRS. For more information on the transitional guidance, members can view this webinar on the auto loan interest deduction and remittance transfer tax with tax policy expert David Ransom, Shareholder with Brownstein Hyatt Farber Schreck, LLP.
Following Executive Order 14192: Unleashing Prosperity Through Deregulation (EO), the National Credit Union Administration (NCUA) launched its Deregulation Project , a comprehensive effort to review; and, where appropriate, revise all of its regulations. The EO:
The NCUA has established a mission “to enable access to financial services by facilitating safe, sound, and resilient credit unions.” As part of the Deregulation Project, the agency will initially propose changing or removing regulations that are obsolete, duplicative, intended to serve as guidance (not regulatory or legal requirements), or overly burdensome. So far, three rounds of changes have been proposed:
You will find some of those proposed changes discussed below.
NCUA is proposing to amend its regulations “for corporate credit unions by removing the requirement that a corporate credit union’s asset and liability management committee (ALCO) must have at least one member who is also a member of the corporate credit union’s board of directors.”
NCUA is proposing to remove the regulatory requirement that a federally insured credit union board approve loans to other credit unions and adopt written policies setting internal limits for those loans.
NCUA is proposing to remove the requirement mandating official advertising statements in advertisements by deleting the provision that sets that requirement. The proposal also revises the scope provision to reflect that the rule addresses the official sign, requires other advertisements to be accurate, and sets requirements for excess insurance advertising.
NCUA is proposing to remove 12 CFR 701.31 , which relates to nondiscrimination. While this proposal would result in no change to credit unions’ compliance obligations, the removal would lessen any potential confusion as 701.31 has not kept pace with current laws. For instance, it hasn’t been substantively updated in over 20 years while the underlying laws, such as the Federal Housing Act and the Equal Credit Opportunity Act, and interpretations have evolved.
All three rounds of the NCUA’s deregulation proposals are currently in the proposed stage and have not yet been finalized. They are currently undergoing public comment and agency review. The comment period for the first round closes on February 9, 2026, the second round remains open through February 27, 2026, and the third round has a comment deadline of March 16, 2026. America’s Credit Unions will submit comment letters advancing our members’ interests in respect of these proposals. You can find visit our “Regulatory Comments and Final Rule Summaries ” page to read more and submit any feedback you may have.
The NCUA has indicated that additional rounds of proposals are expected. After the comment periods close, the agency will evaluate stakeholder feedback, make any revisions it deems appropriate, and then decide whether to issue final rules. Until then, existing regulations remain in effect.
The NCUA’s Deregulation Project marks a significant step toward reducing regulatory complexity and providing credit unions with greater flexibility to serve their members. With three rounds of proposals already underway and additional rounds expected, credit unions have an important opportunity to stay engaged, review the changes, and submit feedback during the public comment periods. Staying informed and proactive will be key for credit unions as these proposed changes move toward final implementation.
If you haven’t had the opportunity to go through NCUA’s Letter to Credit Unions 26-CU-01 (the “Letter”), then you should know that many of the same areas of focus for examiners that were on the list for 2025 continue into this year. That said there seems to be a bit of a shift to heightened safety and soundness oversight this year. The focus on credit, liquidity, and operational risks seem to indicate NCUA’s concern for potential challenges for credit unions in the year ahead. Also featured prominently as opposed to previous years, is the NCUA’s focus on BSA/AML/CTF compliance.
Based on the focus areas highlighted in the Letter, below are some considerations to support alignment with NCUA’s expectations. Clearly these are not comprehensive, and each credit union will need to assess what may be required or appropriate for its own operations based on the letter.
What is clear is that lending quality, interest rate risk and liquidity resilience, and the strength of earnings and capital remain strong enough to absorb rising stress. In its letter, NCUA indicates that credit union loan performance is weakening and indicating increased stress in loan portfolios because of increased delinquencies and charge-offs. NCUA states it has not been this high “in an over a decade.”
The Letter indicates that examiners will want to ensure that the credit union has controls in place to prevent errors, fraud and service disruptions.
NCUA wants to make sure credit unions keep their BSA/AML/CFT compliance programs up-to-date and solid enough that they can effectively detect and address current financial crime risks.
We are thrilled to continue the KCU Connect Lunch series in 2026! The KCU team loves this opportunity to come together with CU teammates throughout the state for community and fun. All CU teammates are welcome to attend. A special thanks to our lunch sponsors Morgan Pottinger McGarvey for supporting this series. Sign up for a lunch near you!
We had an amazing first year of the GWLN Kentucky Sister Society, welcoming 70+ participants and a leadership team of 9 amazing women from all corners of Kentucky! We are excited to get events for this year settled, starting with our quarterly meetings. Dates and registrations are below!
March 12 @ 1:00 pm ET - REGISTER HERE
June 9 @ 11:00 am ET - REGISTER HERE
September 11 @ 1:00 pm ET - REGISTER HERE
December 8 @ 11:00 am ET - REGISTER HERE
Also save the date for Advocacy on Track - June 5 - as we will all wear pink to show we are Powerful in Pink together! Registration for all Advocacy on Track events coming soon.
Advocacy Ambassadors is growing! We know have 8 amazing Ambassadors who are actively engaged in learning more about the state and federal landscapes, as well as acting as increasingly expert advocates for their credit unions. We would love to have all Kentucky credit unions represented in this group as we gear of for a very active 2026 for the Advocacy team!
If you are interested or have a nominee, please reach out to Olivia Sharp, VP - Programs & Partnerships at osharp@kentuckyscreditunions.org for next steps!
Signet Federal Credit Union announced it returned $1,793,518.54 to its members through loan rebates and savings dividends, marking the largest giveback in the credit union’s 87-year history.
The distribution reflects Signet’s cooperative, member-owned structure, where financial success is shared directly with the people who use and support the credit union. Members who held loans with Signet in 2025 received 10% of the interest they paid returned to them, while all savings account holders received a 1.25% bonus dividend in addition to regular quarterly dividends.
“People Helping People isn’t just a phrase at Signet — it’s how we operate every day,” said Jimmilyn Hancock, CEO and President. “This historic giveback shows what happens when members and a credit union grow together. Our members trusted us with their finances, and in return, they shared directly in the success they helped create.”
Unlike traditional financial institutions that distribute profits to shareholders, Signet operates as a not-for-profit cooperative. Every member is also an owner, meaning earnings are reinvested back into the membership through better rates, lower fees, and direct financial returns such as rebates and dividends.
“This milestone reinforces what makes a credit union different,” Hancock added. “It’s not about transactions — it’s about belonging, shared success, and taking care of the people who make Signet what it is.”
The record-setting distribution underscores Signet’s long-standing commitment to financial stewardship, community trust, and its mission of serving members across western Kentucky.
For more information about membership or to learn how credit unions work, visit signetfcu.com or stop by any Signet Federal Credit Union location.
Video Announcement - Signet Federal Credit Union Returns Nearly $1.8 Million to Members in Historic Giveback

Signet Federal Credit Union Operations team member and Credit Union Advocacy Ambassador Rachel Morris has been selected as one of the 2026 Crashers for Crash the GAC, a nationally competitive leadership and advocacy program hosted by Filene Research Institute’s Cooperative Trust. Morris will represent Signet and Kentucky’s credit union movement at the Governmental Affairs Conference (GAC) in Washington, D.C., March 1–5, 2026, the largest credit union advocacy event in the nation.
Each year, more than 60 emerging credit union leaders from across the country are chosen through a rigorous application process to participate in the 17th annual Crash the GAC program. Crashers gain direct access to key industry conversations, meetings with top credit union executives, and leadership development experiences designed to strengthen both their careers and the cooperative credit union system.
“Rachel’s selection is a reflection of her heart for service and her passion for advocating for our members and our industry,” said Jimmilyn Hancock, CEO and President of Signet Federal Credit Union. “As a Credit Union Advocacy Ambassador, she already understands that ‘people helping people’ goes beyond our branches and into policy, education, and long-term impact. We are incredibly proud to see her represent Signet on a national stage.”
Crash the GAC provides participants with a front-row seat to the credit union movement’s most important policy discussions while connecting them with peers from credit unions of all asset sizes and roles. The experience is designed to deepen participants’ understanding of the credit union mission and prepare the next generation of cooperative leaders.
“One of the things that gives me the most confidence in the future of this movement is the next generation stepping up,” said Scott Simpson, President and CEO of America’s Credit Unions. “The leaders selected to Crash the GAC represent the talent, passion, and purpose that will shape the future of cooperative finance, and I’m excited to see the impact they’ll have not just at GAC, but throughout their careers. Their presence strengthens our movement and ensures the credit union difference remains strong for years to come.”
Crash the GAC programming is made possible by The Cooperative Trust from Filene Research Institute, with generous support from America’s Credit Unions. Participants are selected from a highly competitive national applicant pool and represent a diverse cross-section of the credit union industry.
Morris’s selection highlights Signet Federal Credit Union’s ongoing commitment to
developing future leaders and advocating for policies that protect members and strengthen communities throughout Western Kentucky.
For more information about Crash the GAC and the credit union movement’s advocacy
efforts, visit filene.org or americascreditunions.org.
Metro Plus Credit Union has officially opened its new headquarters at 1565 McGrathiana Parkway in Lexington’s Coldstream Research Campus. The move reflects a major investment in member experience and operational growth, featuring enhanced accessibility, extended service hours, and a modern facility designed to support both staff and the community. Congratulations to President/CEO Piper Graham and the entire Metro Plus team on this exciting milestone.

Katelynn Rowe of Signet Federal Credit Union has been named a finalist for the 2026 Young Leader Award, an honor presented annually by the Paducah Area Chamber of Commerce in partnership with The Paducah Sun.
Each year, the Young Leader Award recognizes individuals who have made a meaningful impact through their profession and their service to the community. Finalists are selected for their leadership, commitment, and contributions that help strengthen the Paducah area.
Rowe’s recognition reflects her dedication to both the credit union movement and the community she serves through her work at Signet Federal Credit Union. Her selection as a finalist places her among a distinguished group of emerging leaders making a difference across the region.
The 2026 Young Leader of the Year will receive a $1,000 scholarship to support professional development and continued leadership growth.

Commonwealth Credit Union (CCU) is stepping into 2026 with excitement as it celebrates its 75th Anniversary! This milestone offers a moment to reflect on a journey shaped by the people who have been part of it from the very beginning.
As CCU looks back on 75 years of growth, the spotlight is on the members who have trusted the credit union with their financial goals, the communities that have inspired its mission, and the team members who have carried that mission forward with heart. What started in 1951 as a small, service‑driven credit union has grown into a trusted partner known for financial empowerment and fostering meaningful relationships.
The celebration will unfold all year long, offering opportunities to honor CCU’s history while looking ahead to the future. From nostalgic glimpses into the past to refreshed anniversary branding and community‑focused activities, the year is designed to bring people together and shine a light on the values that define the credit union.
As part of this milestone, CCU is also renewing its commitment to service and philanthropy. The organization is encouraging team members to take part in meaningful acts of kindness, whether through traditional volunteering or small, everyday moments that make a difference. CCU is also partnering with members, employees, and community supporters to strengthen the work of the CCU Foundation and help fuel positive change across the Commonwealth.
With a people‑first philosophy and a renewed focus on community impact, Commonwealth Credit Union is honoring its past while embracing the opportunities ahead, continuing to help the communities it serves thrive, one member at a time.
To learn more about CCU’s 75th Anniversary Celebrations, visit ccuky.org/75th-anniversary
Last week on Duck Key we held our first Visionaries Retreat. In addition to exceptional scenery and extraordinary networking, participants enjoyed insights from a new set of industry experts.
While I had numerous occasions where the proverbial light bulb went off for me, there was one (almost off-hand) comment that light this fuse in my brain. Jon Jeffreys, President/CEO of Callahan, shared an experience from several years ago. They had worked with a handful of credit unions to hire a high-dollar consultant ($50,000 a day!) for a meeting they held in Chicago. Jon said the day was worth the investment as the consultant took the cohort for a stroll down Michigan Avenue, visiting multiple retail facilities.
"You're an errand," the consultant informed the credit union leaders.
There it was. For as long as I have been in the industry, I've never heard our business described in such a frank, honest, and brutal way.
The consultant was not wrong. I submit that, for almost every one of our members, every time they need to interact with us, they think of it as an errand. "I need to stop by the credit union..." or "I need to move that money over..." or "I need to get that loan application submitted so I can go car shopping..."
Their engagement with you and your team is not the highlight of their day. It's an errand.
Mid-week, I had the pleasure of hosting a panel of Fintech pioneers who extolled the opportunity for credit unions of all sizes to leverage technology in order to exceed the growing expectations of our members.
Later in the week, those attendees who didn't need to rush back home in anticipation of this winter storm sat down with America's Credit Unions President and CEO, Scott Simpson. During that conversation, Scott mentioned the importance of recognizing how what we do transcends "errand." Scott was not in attendance for Jon's session, yet his comments perfectly book-ended our week.
It is our responsibility to help members, and lawmakers, recognize that we are more than errands. The cooperative model is unique in our industry, and when we combine our passion, mission, and tools to demonstrate an elevated level of service to members (and tell that story), there is nothing we can't accomplish.
Sincerely,

Jim Kasch
League President