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Board Action Bulletin

The NCUA Board approved the issuance of a Final Agency Decision, an Order of Prohibition, and an Order Assessing a Civil Money Penalty of $15,000 against Reginald Clark.

The NCUA Board considered an appeal under Section 701.14 of NCUA’s Rules and Regulations that remains confidential at this time.

NCUA tweets all open Board meetings live. Follow

@TheNCUA (opens new window) on Twitter, and access Board Action Memorandums and NCUA rule changes at

www.ncua.gov. NCUA also live streams, archives and posts

videos of open Board meetings online.

Board Action Bulletin

The NCUA Board considered a share insurance appeal, which remains confidential at this time.

NCUA tweets all open Board meetings live. Follow

@TheNCUA (opens new window) on Twitter, and access Board Action Memorandums and NCUA rule changes at

www.ncua.gov. NCUA also live streams, archives and posts

videos of open Board meetings online.

Board Action Bulletin

For 2015 No Corporate Stabilization Fund Assessment Anticipated, Low Share Insurance Fund Premium Range Set

ALEXANDRIA, Va. (Nov. 20, 2014) – The National Credit Union Administration Board convened its tenth scheduled open meeting of 2014 at the agency’s headquarters here today. The Board approved three items:

• An Operating Budget increase of 4.2 percent, the smallest increase in seven years, to fund NCUA’s mission-critical activities in 2015 and meet the agency’s strategic priorities.

• A decrease of 0.9 percent in the 2015 federal credit union Operating Fee scale that also exempts 278 federal credit unions with assets below $1 million from paying the fee.

• A 2015 Overhead Transfer Rate of 71.8 percent from the Share Insurance Fund to the Operating Fund in order to fund the agency’s insurance-related functions.

The Director of Examination and Insurance also briefed the Board on the anticipated ranges for 2015 Temporary Corporate Credit Union Stabilization Fund assessments and Share Insurance Fund premiums. NCUA has previously announced it expects no future Corporate Stabilization Fund assessments.  NCUA estimates a range of zero to five basis points for a possible 2015 Share Insurance Fund premium.  NCUA will not charge federally insured credit unions a Share Insurance Fund premium in 2014.

Finally, the Chief Financial Officer reported on the performance of the Corporate Stabilization Fund, which continues to show improvement.

NCUA’s 2015 Budget Shows Smallest Percentage Increase in Seven Years
The Board approved by a 2–1 vote a 2015 Operating Budget of $279.5 million, an increase of 4.2 percent from 2014.

“As a result of intense analysis, scrubbing and reviews, I am pleased that this is the lowest NCUA budget increase in seven years,” NCUA Board Chairman Debbie Matz said. “The 4.2 percent increase ensures that we have the resources needed to do our jobs—protecting the safety and soundness of credit unions and being a vigilant steward of the Share Insurance Fund—in a manner that is efficient and recognizes that our operating costs are borne by the credit unions that we regulate and insure.”

NCUA formulated the 2015 budget using zero-based budgeting to ensure that each office’s requests were individually justified and consistent with NCUA’s strategic plan. All budget requests received multiple levels of review and reflect NCUA’s top priorities, including implementing a robust supervision network, providing credit unions with guidance, promoting greater awareness of critical risks and related threats, strengthening security programs and developing consumer protection and financial literacy programs.

NCUA staffing growth remains well below credit union asset growth. The 2015 budget includes a net increase of 4.2 new staff positions over the 2014 mid-session budget to 1,268.7 full-time equivalents. The Board approved nine new specialized positions, offset by a reduction of five general examiner positions.

Matz said the agency is expanding the information and data it makes available to assist the public in understanding the budget process by adding several fact sheets to its website, including detailed information on the overall budget, office budgets, contracting and the budget process. The agency also will post additional material on frequently asked questions in the coming weeks. NCUA’s 2015 budget and supplementary materials are available online.

The table below summarizes changes to the major components of NCUA’s 2015 budget: 

Projected 2015 Assessment and Premium Ranges Set
The Board received a briefing on the proposed ranges for the 2015 Corporate Stabilization Fund assessment and the Share Insurance Fund premium. Chairman Matz announced at the September Board meeting the agency expects credit unions will not be charged future assessments.

“If current trends continue, and the legacy assets perform well, we should be able to avoid any more assessments,” Matz said. “The careful management of the Corporate Stabilization Fund, an improving economy and subsequent growth in the credit union system have significantly minimized anticipated costs of the corporate resolution.”

Staff recommended a projected range of zero to five basis points for the Share Insurance Fund premium in 2015. A forthcoming Letter to Credit Unions will detail the factors involved in calculating the range.

At the October Board meeting, Chairman Matz previously announced credit unions will not pay a 2014 Share Insurance Fund premium.

Operating Fee Rate for Federal Credit Unions above $1 Million Falls Slightly
The 2015 Operating Fee rate will decrease 0.9 percent after the Board by a 2–1 vote approved a recommendation from the Chief Financial Officer. In comparison, assets of federal credit unions are projected to grow by 3.8 percent in 2015.

For the third consecutive year, the Operating Fee exempts federal credit unions with assets of less than $1 million. Several factors resulted in the decrease in the Operating Fee rate, including the Board’s July vote to reduce the 2014 Operating Budget by $1.1 million.

NCUA uses the Operating Fee to pay the costs of regulating federal credit unions. NCUA will charge the Operating Fee in March 2015 with payments due by April 15, 2015.

Overhead Transfer Rate Set at 71.8 Percent
The Board by a 2–1 vote approved an Office of Examination and Insurance recommendation for an Overhead Transfer Rate of 71.8 percent using the same data-driven methodology consistently applied since 2003.

The Overhead Transfer from the Share Insurance Fund covers expenses associated with NCUA’s insurance-related activities. For 2014, the rate was 69.2 percent. The primary reason for the 2.6 percentage point increase is a slight increase in the percentage of insured shares held by state-chartered credit unions and slight changes in the allocation of the Operating Budget.

Corporate Stabilization Fund Stays in Black, Grows Stronger
The Chief Financial Officer reported on the Corporate Stabilization Fund’s operations, based on the best available preliminary and unaudited information.

For the quarter ending Sept. 30, 2014, the Corporate Stabilization Fund’s net position increased by $138.9 million to a positive $190.1 million. The change resulted primarily from improvements in projected cash flows relating to legacy assets that secure the NCUA Guaranteed Notes program.

Interest on agency borrowings from the U.S. Treasury was $800,000 for the third quarter and $3 million through Sept. 30. Fund administrative expenses were $900,000 for the third quarter and $2.8 million through Sept. 30. Outstanding borrowings from the Treasury remained at $2.6 billion during the third quarter.

Although the Corporate Stabilization Fund has a positive balance, no funds are available to provide credit unions with an immediate rebate. The improving values of the legacy assets secure the NCUA Guaranteed Notes. NCUA also must first repay money borrowed from the Treasury.

NCUA’s projections are estimates. Future changes in the economy or the performance of the legacy assets are likely to change the value of the assets NCUA and the Stabilization Fund can eventually access at the end of the NCUA Guaranteed Notes program.

NCUA tweets all open Board meetings live. Follow @TheNCUA (opens new window) on Twitter, and access Board Action Memorandums and NCUA rule changes at www.ncua.gov. NCUA also live streams, archives and posts videos of open Board meetings online.

Member Deposits Protected up to $250,000 by Share Insurance Fund

ALEXANDRIA, Va. (Dec. 3, 2014) – The Michigan Department of Insurance and Financial Services today liquidated the Metropolitan Church of God Credit Union of Detroit and appointed the National Credit Union Administration as liquidating agent.

Member deposits are federally insured by the National Credit Union Share Insurance Fund. Administered by 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.

NCUA’s Asset Management and Assistance Center will issue correspondence in the near future to individuals holding verified share accounts in the credit union. Members with additional questions about their insurance coverage may contact the Center toll-free at 877-715-0777 Monday through Friday between 9 a.m. and 6 p.m., Eastern. Individuals may also visit the MyCreditUnion.gov (opens new window) website at any time for more information about share insurance coverage.

The Michigan Department of Insurance and Financial Services made the decision to liquidate the Metropolitan Church of God Credit Union and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations.

Originally chartered in 1971, Metropolitan Church of God Credit Union was a state-chartered, federally insured credit union that served 191 members and had assets of $141,494, according to the credit union’s most recent Call Report. Metropolitan Church of God Credit Union served registered members of the Metropolitan Church of God in Detroit.

Metropolitan Church of God is the tenth federally insured credit union liquidation in 2014.

Board Action Bulletin

Chairman Matz to Create Working Groups on Membership, Secondary Capital 

ALEXANDRIA, Va. (Dec. 11, 2014) – The National Credit Union Administration Board convened its eleventh scheduled open meeting of 2014 at the agency’s headquarters here today. The Board unanimously approved three items: 

• A Notice and Request for Comment under the Economic Growth and Regulatory Paperwork Reduction Act of 1996 to identify rules for possible modification, simplification or repeal.

• A final rule to assist underwater homeowners by allowing federally insured credit unions to refinance or modify real estate loans without obtaining an additional appraisal.

• An 8.9 percent reduction in the Temporary Corporate Credit Union Stabilization Fund oversight budget for 2015. 

Agency Working Groups to Consult with Industry Representatives
NCUA Board Chairman Debbie Matz announced she will set up agency working groups on issues relating to field of membership and secondary capital.  Those groups will consult with credit union representatives as part of the agency’s ongoing Regulatory Modernization Initiative.

The Chairman made the announcement as the NCUA Board approved a new Notice and Request for Comment under the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA). Matz said the agency working groups would review stakeholders’ suggestions from the first Notice, which was published in June 2014.

“NCUA is committed to streamlining, updating and, where appropriate, eliminating regulations,” Matz said. “We’re also committed to listening to ideas from stakeholders about how to improve those regulations we have authority to change, as long as safety and soundness isn’t compromised. 

“NCUA is not required to perform the regulatory review under EGRPRA, but we do that voluntarily, as it aligns perfectly with my Regulatory Modernization Initiative. The review process has generated useful comments from the credit union system, and we are taking action to address those issues, including setting up these two working groups.”

Matz said NCUA’s Office of Consumer Protection will lead the field-of-membership working group that will consider suggestions for enhancing federal charters and consult with representatives from federal credit unions. The group intends to identify obstacles facing federal credit unions seeking to expand their fields of membership, and evaluate rule changes the Board could consider to ensure the federal charter remains competitive while complying with the Credit Union Membership Access Act. 

The Office of Small Credit Union Initiatives will lead the secondary capital working group that will consider ideas for raising the value of secondary capital for low-income credit unions. That working group will consult with representatives from low-income credit unions, both federally and state-chartered. Secondary capital investors will also be consulted as the working group identifies which investment models are likely to be most successful in the marketplace. 

Matz also said the agency has received a variety of comments on member business lending and will consider those ideas as work proceeds on the modernization of that rule in 2015. 

This second Notice will open 17 rules for comment in three regulatory categories: agency programs, capital and consumer protection. To eliminate unnecessary burdens and outdated rules, EGRPRA calls for federal banking agencies and the Federal Financial Institutions Examination Council to conduct reviews of their regulations every 10 years. 

“Over the next three months, we are eager to hear new ideas about the rules that are being opened for comment today,” Matz said, “and we will consider every one of them.” 

Final Appraisal Rule Helps Homeowners by Reducing Regulation
Credit unions and homeowners who are underwater in their mortgages through no fault of their own will obtain a measure of relief in the final rule on appraisals (Parts 701 and 722) approved by the Board. 

The final rule, part of the agency’s Regulatory Modernization Initiative, will encourage federally insured credit unions to modify or refinance real estate loans they hold in areas where home prices have declined. A federally insured credit union could modify or refinance a real estate loan without a new appraisal if new monies are not being advanced or if there is a new advance with adequate collateral protection. 

“This new appraisal exemption for loan modifications and refinancing will provide relief to borrowers who are underwater in their mortgages through no fault of their own,” Matz said. “We want to keep members in their homes. We want to cut unnecessary paperwork, and we want to encourage credit unions to modify or refinance mortgages in markets where home values have fallen. This final rule does exactly that.” 

The rule will also eliminate a duplicative requirement that federal credit unions provide members copies of appraisals for loans secured by a first lien on a dwelling. The Consumer Financial Protection Bureau has a regulation to that effect, making an NCUA provision unnecessary.

2015 Stabilization Fund Oversight Budget Declines 8.9 Percent
The Board approved a proposed $4,121,519 budget for the Temporary Corporate Credit Union Stabilization Fund for 2015.

The 2015 budget is 8.9 percent less than the 2014 budget, with no change in staffing. Funded from the Stabilization Fund, the oversight budget has no impact on the agency’s 2015 Operating Fund budget, which the Board approved in November.

“The Stabilization Fund has saved credit unions more than $40 billion in potential losses since 2009,” Matz said. “Now, the Stabilization Fund oversight budget is decreasing for the right reasons. We’re becoming more reliant on the expertise of our staff and less on contractors, leading to a 14 percent reduction in the contracting budget. We are managing more than $22 billion in complex securities and legacy assets with just five full-time employees, yet we have reduced administrative costs by 63 percent.” 

Matz added the Stabilization Fund has an unbroken record of clean audits. 

The Stabilization Fund oversight budget finances activities of the NCUA Guaranteed Notes Securities Management and Oversight Committee. The budget also covers expenses incurred by other NCUA offices in support of the Corporate Resolution Plan. Those costs include retaining services of external valuation experts, tax consultants, financial specialists, attorneys and accountants.

NCUA tweets all open Board meetings live. Follow

@TheNCUA (opens new window) on Twitter, and access Board Action Memorandums and NCUA rule changes at

www.ncua.gov. NCUA also live streams, archives and posts

videos of open Board meetings online.

Member Deposits Remain Protected up to $250,000 by the Share Insurance Fund

ALEXANDRIA, Va. (Dec. 12, 2014) – The Michigan Department of Insurance and Financial Services today liquidated Health One Credit Union of Detroit and named the National Credit Union Administration as liquidating agent.

New England Federal Credit Union of Williston, Vermont, immediately assumed Health One Credit Union’s members, assets, shares and selected loans. New England Federal is a federal credit union with assets of $1 billion and 91,394 members, according to the credit union’s most recent Call Report.

The new New England Federal Credit Union members should experience no interruption in services. Members with questions about their accounts may contact New England Federal Credit Union at 800-400-8790 Monday through Friday from 8 a.m. to 6 p.m., Eastern.

Accounts of the new New England Federal members remain insured by the National Credit Union Share Insurance Fund. Administered by 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. Individuals may visit the MyCreditUnion.gov (opens new window)website at any time for more information about their insurance coverage.

The Department of Insurance and Financial Services placed Health One Credit Union into conservatorship on May 16, 2014, and appointed NCUA as receiver. The Department made the decision to liquidate Health One Credit Union and discontinue its operations after determining the credit union was insolvent with no prospect for restoring viable operations.

Chartered in 1957, Health One Credit Union was a federally insured, state-chartered credit union serving employees of the Blue Cross Blue Shield organizations as well as persons residing, working, worshipping, volunteering and attending school in Michigan’s Macomb, Oakland, Washtenaw and Wayne counties. Health One Credit Union served 3,664 members and had assets of approximately $14.5 million, according to the credit union’s most recent Call Report.

Health One Credit Union is the eleventh federally insured credit union liquidation in 2014.

NCUA Has Provided Regulatory Relief and Streamlined Key Rules; Credit Unions Still Encouraged to Share Ideas

• Regulatory Relief for Small Credit Unions—NCUA finalized a rule that updated the definition of “small entity” from the previous $10 million asset threshold to exempt credit unions up to $50 million in assets from certain rules. This change doubled the number of credit unions that could receive special consideration for regulatory relief. Two-thirds of credit unions are now exempt from NCUA rules on risk-based net worth and interest rate risk. These small credit unions also now have a streamlined compliance requirement for emergency liquidity.
• Expanded Powers—NCUA finalized rules to allow credit unions to buy Treasury Inflation Protected Securities, and to purchase “plain vanilla” derivatives. With agency approval, well-managed credit unions with assets of at least $250 million and with appropriate safeguards can now invest in derivatives. NCUA also extended seven Regulatory Flexibility provisions to all credit unions, expanded potential membership in Rural Districts, and removed restrictions on charitable donations.
• Streamlined Processes—NCUA streamlined the application process for eligible credit unions to obtain the low-income designation, which nearly doubled the number of low-income designated credit unions to more than 2,100. These credit unions have the ability to expand member business lending beyond the statutory 12.25 percent of assets cap, obtain supplemental capital, raise non-member deposits and apply for Community Development Revolving Loan Fund grants and loans.
• More Flexible Policies—Responding to feedback from credit union practitioners in the field, NCUA amended its policy on Troubled Debt Restructuring. The new policy reduced paperwork burdens and provided credit unions greater flexibility to approve loan modifications for members who were having difficulty making full mortgage payments. As a result, more credit union members were able to stay in their homes throughout the crisis and into the recovery.
• Expedited Examinations—NCUA created an expedited exam process for well-managed credit unions with CAMEL ratings of 1, 2 or 3 and assets of less than $30 million. This strategy enabled NCUA to reallocate resources to credit unions posing higher risks.
• Proposed Relief—Most recently, NCUA proposed two additional regulatory relief measures for comment. One proposed rule would eliminate the five-percent cap on fixed assets; the other would allow qualified credit unions to securitize their own assets.

In the coming months, the Regulatory Modernization Initiative will continue, Matz said, as the Board seeks to find prudent ways to provide more flexibility to credit unions offering member business loans. The Board will also propose changes to the advertising rule, including incorporating new technology, such as social media, into the rule.

“We’re still listening to stakeholders for their thoughtful ideas on how to streamline and enhance our regulatory process without compromising safety and soundness or consumer protection. We’ve made great progress, but are always open to further improvement,” Matz said.

Board Action Bulletin

Board Approves Annual Performance Plan and Revised Stress Testing Schedule

ALEXANDRIA, Va. (Jan. 15, 2015) – The National Credit Union Administration Board convened its first open meeting of 2015 at the agency’s headquarters today. The Board approved four items: 

• A revised proposed rule to better protect the credit union system and the Share Insurance Fund by strengthening and modernizing the agency’s existing risk-based capital requirements for complex federally insured credit unions.

• The 2015–2016 Annual Performance Plan to establish the agency’s goals and priorities in the coming year.

• An amendment to agency regulations governing credit union capital planning and stress testing to ensure consistency with the stress tests of federal banking agencies.

• A request from 360 Federal Credit Union of Windsor Locks, Connecticut, to convert to a community charter.

Revised Risk-Based Capital Proposed Rule Incorporates Significant Changes
Only 22 percent of federally insured credit unions would be subject to the agency’s risk-based capital requirements under a revised proposed rule (Part 702) approved by NCUA’s Board. The revised proposed rule would require 27 outlying credit unions taking certain risks to hold additional capital commensurate with those risks. The Board approved the proposal by a 2 to 1 vote.

“There is a compelling need for this rule, as well as a statutory obligation,” NCUA Board Chairman Debbie Matz said. “Both the Government Accountability Office and our Inspector General found that the existing NCUA rule on risk-based net worth failed to prevent credit union losses as a result of the recent financial crisis—losses that had to be paid by all surviving credit unions. Addressing the threat of high-risk outliers holding inadequate capital will better protect the entire system.

“The revised proposal is also flexible and forward-looking. In the future, as more credit unions become complex, it would prevent even more costly failures and the losses to surviving credit unions that would result from those failures.

“Additionally, the revised proposed rule is well targeted. It applies to the 22 percent of credit unions holding more than $100 million in assets, and it covers 89 percent of credit union system assets, which better protects the Share Insurance Fund.”

The Board previously proposed a risk-based capital rule at its January 2014 meeting. Credit union system stakeholders and other parties filed 2,056 comment letters with the agency. Chairman Matz said the agency carefully reviewed all comments and made significant changes based on those comments before issuing the revised proposed rule.

“I want to thank the commenters who took the time to read the first proposed rule and send letters,” Matz said. “These letters were invaluable to us in evaluating the original proposal and developing the revised proposed rule. I am confident this new proposal fulfills our statutory responsibility while exempting most credit unions and—most importantly—protecting the credit union system.”

In all, the revised proposed rule would bolster the capital base for 27 complex credit unions with high-risk portfolios. Nineteen of these affected credit unions would be downgraded under the revised proposal.

Changes made in the revised proposed rule include:

• Exempting credit unions with up to $100 million in total assets, up from $50 million in last year’s proposed rule.

• Lowering the risk-based capital ratio level for a “well-capitalized” credit union to 10 percent from the previously proposed 10.5 percent.

• Significantly lowering risk weights for many asset classes, including investments, real estate loans, member business loans, corporate credit unions, and credit union service organizations.

• Removing interest-rate risk from the risk weights.

• Removing the individual minimum capital requirement.

• Extending the effective date to January 1, 2019, significantly longer than the 18-month implementation period in the original proposal.

The agency estimates that using the newly proposed formula, the average complex credit union would have a risk-based capital ratio of more than 19 percent.

NCUA’s Annual Performance Plan Sets Direction for Agency
The NCUA Board by a unanimous vote approved the 2015–2016 Annual Performance Plan. The plan provides specific direction toward achieving the agency’s mission and the strategic goals outlined in NCUA’s 2014–2017 Strategic Plan.

“On my first day as Chairman in 2009, I established six goals for the agency,” Matz said. “Those six goals are the foundation for the agency’s Strategic Plan, which the Board updated last year. The Annual Performance Plan is the yardstick we use to measure how well we’re doing in terms of reaching the goals we’ve set for ourselves.”

The Annual Performance Plan highlights goals, indicators and targets to measure agency performance. NCUA designates these performance goals as priorities:

• Implement a robust supervision framework for financial services reform regulations, including interest rate risk, liquidity and contingency funding plans, derivative authority and capital planning and stress testing.

• Issue industry guidance related to emerging cybersecurity risks and related threats.

• Monitor issues or trends in consumer complaints to develop and promote financial literacy education and consumer protection programs.

• Develop and communicate guidance to credit unions to explain regulatory changes and best practices.

• Increase women and minority representation at all levels within the agency’s workforce, particularly within NCUA’s management ranks.

• Strengthen security programs and communications.

Proposed Rule Would Amend Stress Testing Timing
The Board by a unanimous vote approved a proposed rule (Part 702) to amend NCUA’s capital planning and stress testing regulation to adjust the timing of certain events in the planning and testing cycles, generally by three months. This rule only affects the five federally insured credit unions with more than $10 billion in assets.

A critical date in the stress testing process is when NCUA releases various economic scenarios that are the basis of the testing. NCUA plans to base the scenarios on those developed by the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency.

When NCUA’s Board approved the final rule on capital planning and stress testing in April 2014, the three other regulators were scheduled to provide scenarios by Nov. 15 of each year. That date has since moved to Feb. 15, necessitating adjusting NCUA’s schedule.

“It makes sense to modify our schedule to provide consistency among the largest regulated institutions,” Matz said. “Even though the Dodd-Frank Act did not require stress testing of credit unions, the tests are equally important, as credit unions with more than $10 billion in assets are systemically important within the system. The benefit of preventing a potential failure of even one credit union with more than $10 billion in assets far out-weighs the maximum cost of stress testing.”

Community Charter Approved for 360 Federal Credit Union
People living in the greater Hartford, Connecticut, area will have a new option for obtaining affordable financial services after the Board unanimously approved a request from 360 Federal Credit Union to convert to a community charter.

The credit union will now be able to serve members from Hartford, Middlesex and Tolland counties in Connecticut. According to the credit union’s most recent Call Report, 360 Federal Credit Union has 16,559 members and assets of $205 million.

The area 360 Federal Credit Union will serve has a population of 1.2 million, which requires NCUA Board approval.

NCUA tweets all open Board meetings live. Follow @TheNCUA (opens new window) on Twitter, and access Board Action Memorandums and NCUA rule changes at www.ncua.gov. NCUA also live streams, archives and posts videos of open Board meetings online.

Board Action Bulletin

The NCUA Board approved the coverage of costs associated with a credit union data breach, and the proposed merger of Alloya Corporate Federal Credit Union and System United Corporate Federal Credit Union.

The NCUA Board also considered a creditor claim appeal, which remains confidential at this time.

NCUA tweets all open Board meetings live. Follow

@TheNCUA (opens new window) on Twitter, and access Board Action Memorandums and NCUA rule changes at

www.ncua.gov. NCUA also live streams, archives and posts

videos of open Board meetings online.

Member Deposits Protected up to $250,000 by Share Insurance Fund

ALEXANDRIA, Va. (Jan. 30, 2015) – The National Credit Union Administration today liquidated American Bakery Workers Federal Credit Union of Philadelphia.

TruMark Financial Credit Union of Trevose, Pennsylvania, immediately assumed American Bakery Workers’ members, deposits and a majority of the loan portfolio. TruMark Financial Credit Union is a federally insured, state-chartered credit union serving more than 107,000 members and holding assets of nearly $1.6 billion, according to the credit union’s most recent Call Report.

Accounts of the new TruMark Financial members remain insured by the National Credit Union Share Insurance Fund. Administered by 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. Individuals may visit the MyCreditUnion.gov (opens new window) website at any time for more information about their insurance coverage.

The new TruMark Financial Credit Union members will experience no interruption in services. Members with questions about their accounts may contact TruMark Financial toll-free at 877-878-6275 Monday through Friday from 8 a.m. to 8 p.m., Saturday from 9 a.m. to 1 p.m., and Sunday from 11 a.m. to 3 p.m. All times are Eastern.

NCUA’s Asset Management and Assistance Center will take charge of American Bakery Workers loans not assumed by TruMark and will issue correspondence to individuals who have those loans in the near future. Members with further questions about their loans may call toll-free at 877-715-0777 Monday through Friday between 9 a.m. and 6 p.m., Eastern.

NCUA made the decision to liquidate American Bakery Workers and discontinue operations after determining the credit union was insolvent with no prospect for restoring viable operations. 

At the time of liquidation and subsequent purchase and assumption by TruMark Financial Credit Union, American Bakery Workers Federal Credit Union served 1,457 members and had assets of $4.2 million, according to the credit union’s most recent Call Report.

Chartered in 1940, American Bakery Workers Federal Credit Union served bakery workers of Locals 6 and 492 of the Bakery, Confectionery and Tobacco Workers International Union.

American Bakery Workers Federal Credit Union is the first federally insured credit union liquidation in 2015.