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ALEXANDRIA, Va. (Dec. 4, 2020) – Data on the financial performance of federally insured credit unions for the quarter ending September 30, 2020, are now available (opens new window) from the National Credit Union Administration.

The NCUA’s Quarterly Data Summary Reports include an overview of the quarterly Call Report data as well as tables showing the recent history of major credit union performance indicators.

The NCUA also makes extensive credit union system performance data available in the Credit Union Analysis section of NCUA.gov. The analysis section includes quarterly data summaries as well as detailed financial information, a graphics package illustrating financial trends in federally insured credit unions, and a spreadsheet listing all federally insured credit unions as of September 30, 2020, including key metrics.

ALEXANDRIA, Va. (Dec. 2, 2020) – National Credit Union Administration Chairman Rodney E. Hood congratulated Kyle S. Hauptman on his confirmation today by the U.S. Senate as a member of the NCUA Board.

“I congratulate Kyle on his confirmation and I look forward to working with him as we help to ensure our nation’s credit unions are able to serve their members during this difficult period,” Chairman Hood said. “I would also like to thank Board Member J. Mark McWatters for his more than six years of service to the agency and credit union community, both of which benefited greatly from his insight and leadership.”

Board Member Hauptman will begin his term of service as soon as he takes the oath of office. He replaces Board Member McWatters whose term expired in August 2019.

President Donald J. Trump announced the nomination of Hauptman on June 15. The U.S. Senate Banking, Housing and Urban Affairs Committee held its confirmation hearing on July 21.

Hauptman’s term on the NCUA Board will run through August 2, 2025.

ALEXANDRIA, Va. (Nov. 30, 2020) – The National Credit Union Administration issued two prohibition notices in November. These individuals are prohibited from participating in the affairs of any federally insured financial institution.

• Jennifer Furlong, a former employee of Groton Municipal Employees Federal Credit Union in Groton, Connecticut, entered into a pretrial diversion or similar program resulting in the charge of third degree larceny in connection with her employment.
• Teresa Hyler, a former employee of Beacon Credit Union in Lynchburg, Virginia, was sentenced on a charge of embezzlement in connection with her employment.

Prohibition and administrative orders are searchable by name, institution, city, state, and year at the NCUA’s Administrative Orders webpage. The webpage also provides links to the federal enforcement actions of federal banking agencies against other institutions or their affiliated parties.

You may view NCUA enforcement orders online or inspect them at the NCUA’s Office of General Counsel between 9 a.m. and 4 p.m. Eastern, Monday through Friday. You also may order copies by mail from the NCUA at 1775 Duke Street, Alexandria, Virginia 22314-3428.

ALEXANDRIA, Va. (Nov. 23, 2020) – National Credit Union Administration Chairman Rodney E. Hood issued the following statement today on the departure of Board Member J. Mark McWatters:

“Board Member Mark McWatters’ service on the NCUA Board concluded last week. I would like to extend a sincere thank you to Board Member McWatters for his service. His years on the NCUA Board are a credit to his decades long career in law and policymaking. I wish Mark all the best in his future endeavors.”

Board Member McWatters’ service on the NCUA Board ended on November 20, 2020.

Board Briefed on Progress of Diversity and Inclusion in Credit Union System

ALEXANDRIA, Va. (Nov. 19, 2020) – Using a live audio webcast, the National Credit Union Administration Board held its tenth open meeting of 2020 and unanimously approved:

• A proposed rule to amend its regulations by removing the prohibition on the capitalization of interest in connection with loan workouts and modifications.
• The reprogramming of unspent money in the 2020 travel budget to fund NCUA’s activities related to the coronavirus pandemic and the agency’s Central Office renovation.

The Director of the Office of Minority and Women Inclusion briefed the NCUA Board on the state of credit union diversity and the 2019 Credit Union Diversity Self-Assessment results. The Chief Financial Officer also briefed the Board on the National Credit Union Share Insurance Fund’s performance during the third quarter of 2020.

Proposed Rule on Capitalization of Interest Provides Relief

The Board approved a proposed rule (opens new window) that removes the prohibition on the capitalization of interest in connection with loan workouts and modifications.

“At the onset of the COVID-19 pandemic roughly nine months ago, that priority shifted into high gear as I worked with agency staff on COVID-relief measures that would allow credit unions the flexibility to work with borrowers experiencing economic hardship as a result of the pandemic,” Chairman Rodney E. Hood said. “Today’s proposed rule continues to move toward those relief efforts.”

The Board determined that the current prohibition on authorizing additional advances to finance unpaid interest might be overly burdensome and, in some cases, hamper a federally insured credit union’s good-faith efforts to engage in loan workouts with borrowers facing difficulty because of the economic disruption that the COVID-19 event has caused. Advancing interest may avert the need for alternative actions that would be more harmful to borrowers.

The proposed rule would establish documentation requirements to help ensure that the addition of unpaid interest to the principal balance of a mortgage loan does not hinder the borrower’s ability to become current on the loan. The proposed change would apply to workouts of all types of member loans, including commercial and business loans.

Comments are due 60 days from publication in the Federal Register.

Board Briefed on Results of the 2019 Credit Union Diversity Self-Assessment

The Director of the Office of Minority and Women Inclusion briefed (opens new window) the NCUA Board on the Voluntary Credit Union Diversity Self-Assessment and the results for 2019 (opens new window); the NCUA’s initiatives to promote diversity, equity, and inclusion within the credit union system; and the progress that’s been made.

“Given the challenging times our nation is currently facing, there is a heightened interest and emphasis on diversity, equity, and inclusion,” Chairman Rodney E. Hood said. “Tremendous benefits in growth, talent, and innovation are possible when a credit union’s employees, managers, and board of directors reflect the diversity of the communities they serve.”

The NCUA has collected diversity data from credit unions through the Diversity Self-Assessment for four years. In 2019, 118 credit unions submitted self–assessments, compared to 81 self-assessments submitted in 2018. A majority (56 percent) of these credit unions reported a leadership and organizational commitment to diversity, and 48 percent reported taking steps to implement employment practices that demonstrate that commitment.

Approximately 200 unique credit unions submitted a self–assessment to the NCUA’s OMWI for at least one of the four years the assessment has been available. Credit unions that submitted the self-assessment more than once showed marked improvement in their diversity and inclusion levels from year-to-year.

The Credit Union Diversity Self-Assessment (opens new window) outlines best practices for creating a more diverse and inclusive credit union, and increasingly, it is being used by credit unions to assess and monitor their diversity-related efforts. The NCUA now accepts self-assessments year-round. The cut-off date for annual submissions is January 15 of the following year.

Share Insurance Fund Remains Strong

The National Credit Union Share Insurance Fund reported (opens new window) $19.2 billion in assets as of the third quarter of 2020. The fund also reported $46.6 million in net income year-to-date.

The Share Insurance Fund in October received additional capitalization deposits of approximately $1.5 billion from insured credit unions after the NCUA invoiced for its semi-annual contributed capital adjustment for credit unions with $50 million or more in assets.

Additionally, for the third quarter of 2020:

• The number of CAMEL codes 4 and 5 credit unions decreased 1.8 percent from the end of the second quarter, from 166 to 163. Assets for these credit unions decreased 5 percent for the same period from $10.3 billion to $9.7 billion.
• The number of CAMEL code 3 credit unions decreased 2.3 percent from the end of the second quarter, from 785 to 767. Assets for these credit unions decreased 8.9 percent for the same period from $44.6 billion to $40.6 billion.

There were no federally insured credit union failures in the third quarter that caused a loss to the Share Insurance Fund. Total year-to-date losses associated with one failure in 2020 is $1.6 million.

The third-quarter figures are preliminary and unaudited. Additional information on the performance of the Share Insurance Fund is available online.

Unspent Travel Budget Repurposed for COVID-19 Response, Renovations

The NCUA Board approved reprogramming $4.3 million from the agency’s projected unspent 2020 travel budget to fund pandemic response activities. This includes COVID-related renovations to the NCUA’s Central Office building, such as updating the building’s HVAC system.

The Office of the Chief Financial Officer updated its midsession projection for travel-related spending and now estimates at least $18 million will remain unspent due to the COVID-19 pandemic. The office previously projected $13 million of unspent travel for 2020.

Additional information on this reprogramming can be found on the agency’s website (opens new window).

(Nov. 19, 2020) – Federal financial institution regulatory agencies today issued a joint fact sheet clarifying that bank and credit unions compliance efforts to meet Bank Secrecy Act due diligence requirements for customers that are charities and other nonprofit organizations should be based on the money laundering risks posed by the customer relationship.

The fact sheet highlights the importance of legitimate charities and nonprofit organizations having access to financial services and being able to transmit funds through legitimate and transparent channels, especially in the context of responding to the coronavirus pandemic. It also clarifies that charities and nonprofit organizations as a whole do not present a uniform or unacceptably high risk of being used or exploited for money laundering, terrorist financing, or sanctions violations, and that banks and credit unions must develop risk profiles that are appropriate for the risks presented by each customer. Additionally, it provides examples of customer information that may be useful to banks and credit unions in determining those risk profiles.

The fact sheet does not alter existing Bank Secrecy Act/anti-money laundering legal or regulatory requirements or establish new supervisory expectations. It was developed by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Financial Crimes Enforcement Network, the National Credit Union Administration, and the Office of the Comptroller of the Currency.

Attachment
Joint Fact Sheet on Bank Secrecy Act Due Diligence Requirements for Charities and Non-Profit Organizations

Agency	Contact	Phone
Federal Reserve	Darren Gersh	202.452.2955
FDIC	LaJuan Williams-Young	202.898.3876
NCUA	Laura Todor	703.518.1149
OCC	Stephanie Collins	202.649.6870

ALEXANDRIA, Va. (Nov. 18, 2020) – National Credit Union Administration Chairman Rodney E. Hood issued the following statement today commending Jay Clayton, Chairman of the U.S. Securities and Exchange Commission, who announced his intention to depart at the end of the year.

“Working alongside Chairman Clayton on the Financial Stability Oversight Council, I saw firsthand the professionalism and business acumen that has defined his success at the SEC and throughout his career. We shared a passion for public service and in promoting diversity, inclusion, and opportunity within our agencies and in the broader financial services sector. With sincerest appreciation for his friendship and public service, I wish him all the best in his future endeavors.”

ALEXANDRIA, Va. (Nov. 16, 2020) – National Credit Union Administration Chairman Rodney E. Hood issued the following statement upon learning of the passing of former NCUA Chairman Roger Jepsen.

I, along with the NCUA family, was saddened to hear the news of Senator Roger Jepsen. He was well-liked and respected in the credit union community.

Senator Jepsen had a distinguished career that included serving as a member of the Iowa Senate, as Lieutenant Governor of Iowa, and as United States Senator from Iowa. He was appointed Chairman of the NCUA by President Reagan in 1985 and continued to serve in that role until 1993.

He led the agency during a period of great change, overseeing more than 14,000 credit unions nationwide, the conversion of more than 400 state-chartered credit unions to federal insurance coverage, and the adoption by the agency of the CAMEL rating system.

Senator Jepsen will be missed, and the thoughts and prayers of past and present NCUA employees are with his family and loved ones.

ALEXANDRIA, Va. (Nov. 16, 2020) – Municipal Credit Union today reported completing the next step in its recovery plan with the appointment of Kyle Markland as the permanent Chief Executive Officer. Municipal Credit Union has operated under the conservatorship of the National Credit Union Administration since May 2019.

“The placement of Kyle Markland as the permanent CEO is a key step in the credit union’s recovery and lays the groundwork for its continued financial health and safety and soundness,” said John Kutchey, Regional Director for the NCUA’s Eastern Region.

Markland has an extensive credit union career. He joins Municipal after most recently serving as Chief Operating Officer for Bethpage Federal Credit Union in Long Island, New York. In this role, Markland led several functional areas and strategic planning for the largest credit union in New York. Previously, he served as President/CEO for Affinity Plus Federal Credit Union in St. Paul, Minnesota, and Executive Vice President/CFO for Bellco Credit Union in Greenwood Village, Colorado. Markland also held roles with GTE Federal Credit Union and Suncoast Schools Federal Credit Union.

Markland earned a Master of Business Administration from Regis University in Denver, Colorado, and a Bachelor of Science in Accounting from the University of South Florida in Tampa, Florida.

Municipal Credit Union has improved financial results, reporting a year-to-date net income of $30.2 million through September 30, 2020.

Credit union member deposits remain protected by the National Credit Union Share Insurance Fund. Administered by the NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States.

Municipal Credit Union is the oldest credit union in New York and one of the oldest in the country. Established in 1916 and headquartered in New York City, Municipal Credit Union has assets of more than $3.7 billion and more than 500,000 members, according to its most recent Call Report. For more information about Municipal Credit Union, visit www.nymcu.org (opens new window).

ALEXANDRIA, Va. (Nov. 16, 2020) – Federally insured credit unions can learn more about the National Credit Union Administration’s response to the COVID-19 pandemic by participating in a webinar hosted by the agency on Thursday, December 3, beginning at 1 p.m. Eastern.

During the webinar, NCUA staff will also discuss recently issued guidance and regulations, as well as other agency initiatives.

Online registration for this hour-long webinar is now open (opens new window). Registration is limited to no more than 2,500 participants on a first-come, first-served basis. Participants will be able to log into the webinar and view it on their computers or mobile devices using the registration link. They should allow pop-ups from this website.

Participants may submit questions in advance to [email protected] by noon Eastern on Wednesday, December 2. The email’s subject line should read “NCUA COVID-19 Update.”

Please email technical questions about accessing the webinar to [email protected]. This webinar will be closed-captioned and archived online approximately three weeks following the live event.