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NCUA Board Member Speaks to Oregon Credit Union CEOs

ALEXANDRIA, Va. (Dec. 8, 2017) – National Credit Union Administration Board Member Rick Metsger today reminded credit unions the National Credit Union Share Insurance Fund may be required to increase loss reserves as the values of taxi medallions decline.

“Prices for New York taxi medallions at two recent public auctions have been considerably lower,” Metsger said. “That, combined with a continued increase in already high delinquency rates on medallion loans, suggests the Share Insurance Fund’s reserves may have to increase in the very near future.”

Metsger spoke today to the Oregon Department of Financial Services CEO roundtable in Salem, Oregon. His remarks covered various issues related to credit union regulation and the Share Insurance Fund. 

Metsger said the NCUA issued a Letter to Credit Unions in 2010, warning of concentration risk, and the agency issued a more specific letter on taxi medallion lending in 2014.

“We have known, and warned about, this risk for some time,” Metsger said, “but the bill is about to come due. Unfortunately, a lot of credit unions that followed supervisory guidance and lent prudently will have to pay for losses incurred by a small number of credit unions that gambled on a market that was disrupted and a bubble that burst.”

Metsger also said the NCUA’s ability to curtail speculative taxi medallion lending was limited by a provision in the Credit Union Membership Access Act that specifically exempted credit unions chartered for the purpose of making, or had a history of primarily making, member business loans, from the statutory member business lending cap. A Senate report on that legislation specifically noted taxi medallion lending was an example of loan activity that was exempt from the cap.

“Most credit unions cannot put more than 12.25 percent of their assets into member business lending,” Metsger said, “but the taxi medallion credit unions were able to put up 100 percent of their assets.”

Two taxi medallion credit unions, Melrose and LOMTO, are currently operating under NCUA conservatorship.

Metsger added, “Our staff continues to carefully evaluate the loan portfolio at the conserved credit unions. This evaluation factors into what the share insurance fund reserves need to be, and in turn any effect on the equity ratio and potential share insurance fund distribution for 2018.”

“This,” he added, “reinforces why we needed to increase the fund’s normal operating level this year, to account for any significant losses that otherwise might have required a sudden and significant premium charge to credit unions.”

Metsger also talked about the NCUA’s risk-based capital rule, scheduled to go into effect in January 2019.  

“A major principle of financial regulation is that all risks are not equal, and one size does not fit all,” Metsger said. “That is why the U.S. and all major industrial nations have risk-based capital standards. We seek to minimize the risk that a few credit unions that want to gamble with other people’s money will lose their bets and pass the costs onto other credit unions and their members. I am happy to consider changes in our risk-based capital rule that will strengthen the system. But, trade groups seeking to repeal the rule completely ignore the fact that the adoption of a risk-based capital rule is both required by federal law and good public policy that protects credit union members. The situation with the taxi medallion credit unions only adds an exclamation point to this fact. It is a prime example of why we need a strong risk-based capital system.”

New Design Reflects NCUA’s Critical Role in Promoting Financial Stability

ALEXANDRIA, Va. (Dec. 11, 2017) – President Donald J. Trump has signed an Executive Order establishing the new official seal for the National Credit Union Administration, the agency announced today.

“As a federal regulator and insurer, one of the NCUA’s essential responsibilities is to maintain confidence in the nation’s system of cooperative credit,” NCUA Board Chairman J. Mark McWatters said. “The new seal readily and clearly conveys confidence and security, and identifies the NCUA as an integral part of the federal government. I’m grateful to President Trump for signing this order.”

The new seal (opens new window) replaces the current NCUA seal, which was created through Executive Order 11580 signed by President Richard M. Nixon in 1971. It also brings the agency’s seal more in line with the official seals of other federal financial services regulators.

The revised design incorporates the following elements, symbolizing the NCUA’s safety and soundness mission:

• The eagle and shield from the Great Seal of the United States indicates clearly the NCUA’s role as an agency of the federal government;
• The three blue stars above the eagle represent the three-member NCUA Board;
• The agency’s name in white on a blue background on the crest of the shield matches the federal share insurance sign that all federally insured credit unions are required to display;
• The circle on the seal includes the agency’s name, as well as the year, 1934, in the lower portion of the circle. This reflects the signing of the Federal Credit Union Act and the creation of the federal credit union system that year;
• The oak branch in the eagle’s left talon is symbolic of the NCUA’s strength, honor, and longevity in carrying out its mission of promoting confidence in the national system of cooperative credit; and
• The olive branch in the right talon is symbolic of peace and prosperity, which demonstrates the vital role the nation’s credit unions play in fostering economic growth by providing essential and affordable financial services to millions of Americans.

Over the next several months, the NCUA will incorporate the new seal on its public websites, publications, official letterhead, facilities and other material. Logos and signage for the National Credit Union Share Insurance Fund are not affected by this change.

ALEXANDRIA, Va. (Dec. 13, 2017) – Data on the financial performance of federally insured credit unions in the quarter ending September 30, 2017, are now available from the National Credit Union Administration.

NCUA makes detailed credit union system performance data available on its Credit Union and Call Report Data webpage, including Call Report quarterly summaries (opens new window) and financial performance reports. The agency’s Industry Data page includes a Financial Trends in Federally Insured Credit Unions package (opens new window) illustrating industry trends.

The NCUA has made changes to the quarterly data report to reflect changes in the information collected from credit unions as a result of the agency’s modernization of its member-business lending rule in 2016.

Selected Performance Indicators

• Total assets in federally insured credit unions rose by $86 billion, or 6.8 percent, over the year ending in the third quarter of 2017, to $1.36 trillion.
• Total loans outstanding increased $90 billion, or 10.6 percent, over the year to $937.0 billion. The average outstanding loan balance in the third quarter of 2017 was $14,708, up $561, or 4.0 percent, from one year earlier.
• The delinquency rate at federally insured credit unions was 79 basis points in the third quarter of 2017, little changed from one year earlier. The net charge-off ratio was 56 basis points, up from 53 basis points in the third quarter of 2016.
• Insured shares and deposits rose $65 billion, or 6.4 percent, over the four quarters ending in the third quarter of 2017 to $1.08 trillion.
• The loan-to-share ratio stood at 81.4 percent in the third quarter of 2017, up from 78.6 percent in the third quarter of 2016.
• The credit union system’s net worth ratio was 10.89 percent in the third quarter of 2017, compared with 10.85 percent one year earlier.
• Net income totaled $10.5 billion at an annual rate in the third quarter of 2017, up $0.76 billion, or 7.8 percent, from the same period a year ago.
• The net interest margin for federally insured credit unions was $39.5 billion in the third quarter of 2017, or 3.0 percent of average assets. That compares with $35.8 billion, or 2.9 percent of average assets, in the third quarter of 2016.
• The return on average assets for federally insured credit unions was 79 basis points over the year ending in the third quarter of 2017, up slightly from 78 basis points in the third quarter of 2016. The median return on average assets across all federally insured credit unions was 39 basis points, up 2 basis points from the third quarter of 2016.
• The number of federally insured credit unions declined to 5,642 in the third quarter of 2017 from 5,844 in the third quarter of 2016. In the third quarter of 2017, there were 3,536 federal credit unions and 2,106 federally insured, state-chartered credit unions. The year-over-year decline is consistent with long-running industry consolidation trends.
• The number of credit unions with a low-income designation rose to 2,538 in the third quarter of 2017 from 2,459 one year earlier.
• Federally insured credit unions added 4.3 million members over the year, and credit union membership in these institutions reached 110.5 million in the third quarter of 2017.

Balance Sheet Details

Assets

• Total assets in federally insured credit unions rose by $86 billion, or 6.8 percent, over the year to $1.36 trillion in the third quarter of 2017.
• Cash and equivalents (assets with maturity of three months or less) fell $9.3 billion, or 8.5 percent, to $100.1 billion.
• Total investments (instruments with maturities in excess of three months) increased $1.2 billion, or 0.4 percent, to $267.5 billion.
  • Investments with maturities of less than one year rose $1.3 billion, or 1.7 percent, to $76.3 billion.
  • Investments with maturities of one to three years declined $12.1 billion, or 12.0 percent, to $88.6 billion.
  • Investments with maturities of three to five years increased $6.7 billion, or 10.8 percent, to $68.7 billion.
  • Investments with maturities of five to 10 years were up $4.5 billion, or 17.9 percent, to $29.5 billion.
  • Investments with maturities greater than 10 years rose $0.8 billion, or 22.0 percent, to $4.4 billion.
• Total loans outstanding increased $90 billion, or 10.6 percent, over the year to $937.0 billion. Credit union loan balances rose over the year in every major category, compared with the third quarter of 2016.
  • Real estate loans rose $41.5 billion, or 9.9 percent, over the year to $462.5 billion in the third quarter of 2017.
  • Auto loans increased $36.0 billion, or 12.4 percent, to $326.3 billion. Used auto loans rose $20.0 billion, or 11.2 percent, to $198.0 billion. New auto loans rose $16.0 billion, or 14.3 percent, to $128.2 billion.
  • Credit card balances rose $4.5 billion, or 9.0 percent, to $54.7 billion
  • Non-federally guaranteed student loans rose $0.5 billion, or 13.6 percent, to $4.3 billion.
  • The Call Report for the quarter ending on Sept. 30, 2017, was redesigned to reflect the new rule on member business loans. As a result, net member business loan balances, including unfunded commitments, are not available after the second quarter of 2017. Commercial loans, including unfunded commitments, totaled $66.5 billion in the third quarter of 2017; data are unavailable for prior quarters. Commercial loans are not directly comparable to member business loans.
• The delinquency rate at federally insured credit unions was 79 basis points in the third quarter of 2017, up from 77 basis points one year earlier. Loan performance was mixed across categories:
  • The delinquency rate on fixed real estate loans was 48 basis points in the third quarter, down from 54 basis points one year earlier.
  • The credit card delinquency rate was 123 basis points, up from 105 basis points in the third quarter of 2016.
  • For auto loans, the delinquency rate was 64 basis points in the third quarter of 2017 compared with 63 basis points one year earlier.
  • The delinquency rate for commercial loans, including unfunded commitments, was 187 basis points in the third quarter of 2017; data for prior quarters are not available.

The net charge-off ratio for all federally insured credit unions was 56 basis points in the third quarter of 2017, up from 53 basis points in the third quarter of 2016.

Liabilities and New Worth

• Credit union shares and deposits rose by $72.8 billion, or 6.8 percent, over the year to $1.15 trillion in the third quarter of 2017. Regular shares rose $32.0 billion, or 8.3 percent, to $419.8 billion. Other deposits increased $26.9 billion, or 5.0 percent, to $565.9 billion, led by money market accounts, which rose $14.4 billion, or 5.9 percent, and share certificate accounts, which were up $10.8 billion, or 5.5 percent.
• The credit union system’s net worth increased by $10.0 billion, or 7.2 percent, over the year to $148.6 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 10.89 percent in the third quarter of 2017, up from 10.85 percent one year earlier.

Income Statement Details

• Net income for federally insured credit unions in the third quarter of 2017 totaled $10.5 billion at an annualized rate, up $0.8 billion, or 7.8 percent, from the third quarter of 2016. Interest income rose $4.6 billion, or 10.8 percent, over the year to $46.7 billion, and non-interest income increased $0.8 billion, or 4.4 percent, to $17.8 billion.
• Interest expense totaled $7.2 billion annualized in the third quarter of 2017, up $0.8 billion, or 13.2 percent, from one year earlier. Non-interest expenses grew $2.3 billion, or 6.0 percent, over the year to $40.7 billion in the third quarter. Rising labor expenses, which were up $1.3 billion, or 6.9 percent, accounted for more than half of the increase in non-interest expenses.
• The aggregate net interest margin widened $3.7 billion over the year, or 10.4 percent, to $39.5 billion at an annual rate in the third quarter of 2017.
• The credit union system’s provision for loan and lease losses rose $1.4 billion over the year, or 30.1 percent, to $6.2 billion at an annual rate in the third quarter of 2017.

Performance by Asset Category

Consistent with long-running trends, credit unions with assets of at least $1 billion reported the strongest growth in loans, membership, and net worth over the year ending in the third quarter of 2017. Credit unions with less than $50 million in assets reported declines in loans, membership, and net worth over the year.

The number of federally insured credit unions with assets of at least $1 billion increased to 284 in the third quarter of 2017 from 268 in the third quarter of 2016. These 284 credit unions held $858.8 billion in assets, or 63 percent of total system assets. Credit unions in this

• category reported loan growth of 14.7 percent. Membership rose 9.2 percent. Net worth increased 11.4 percent.
• The number of federally insured credit unions with assets of at least $500 million but less than $1 billion increased to 246 in the third quarter of 2017 from 230 in the third quarter of 2016. These 246 credit unions held $173.0 billion in total assets, or 13 percent of total system assets. Credit unions in this category reported loan growth of 9.9 percent. Membership increased 4.9 percent. Net worth increased 7.8 percent.
• The number of federally insured credit unions with at least $100 million but less than $500 million in assets declined to 1,026 in the third quarter of 2017 from 1,054 in the third quarter of 2016. These 1,026 credit unions held $228.8 billion in total assets, or 17 percent of total system assets. Credit unions in this category reported loan growth of 0.4 percent. Membership declined 4.4 percent. Net worth fell 2.2 percent.
• The number of federally insured credit unions with at least $50 million but less than $100 million in assets increased to 724 in the third quarter of 2017 from 721 in the third quarter of 2016. These 724 credit unions held $51.8 billion in total assets, or 4 percent of total system assets. Credit unions in this category reported loan growth of 3.2 percent. Membership declined 1.2 percent. Net worth increased 0.9 percent.
• The number of federally insured credit unions with assets of at least $10 million but less than $50 million declined to 1,800 in the third quarter of 2017 from 1,880 in the third quarter of 2016. These credit unions held $44.8 billion in assets, or 3 percent of total system assets. Credit unions in this category reported a 1.9 percent decline in loans. Membership declined 6.3 percent. Net worth declined 3.6 percent.
• The number of federally insured credit unions with less than $10 million in assets declined to 1,562 in the third quarter of 2017 from 1,691 in the third quarter of 2016. These credit unions held $6.5 billion in assets, or less than 1.0 percent of total system assets. Credit unions in this category reported a 6.1 percent decline in loans. Membership fell 9.3 percent. Net worth declined 5.9 percent.

ALEXANDRIA, Va. (Dec. 14, 2017) – The video recording of the Nov. 16, 2017, open meeting of the National Credit Union Administration Board is now available on the agency’s website.

Archived videos of past Board meetings may be viewed here, and each video remains on the site for one year.

At the November open meeting, the Board unanimously approved three items:

• Operating, capital, and Share Insurance Fund budgets for 2018 and 2019 to fund the agency’s essential activities and strategic priorities.
• A new methodology for calculating the overhead transfer rate that simplifies the calculation and reduces administrative resource needs, with a Federal Register notice for posting.
• A final rule making amendments to agency regulations governing corporate credit unions that revises provisions regarding retained earnings and Tier 1 capital.

The Chief Financial Officer also briefed the Board on the performance of the National Credit Union Share Insurance Fund, which posted a net loss for the third quarter due to increased provisions for insurance losses.

The NCUA posts these videos as part of the agency’s ongoing efforts to provide transparency and to allow those unable to attend Board meetings the opportunity to become better informed. An interval between the meeting and posting is necessary for the videos to comply with Section 508 of the Rehabilitation Act for the hearing and visually impaired.

The Board Actions page of the NCUA’s website has more information, including Board agendas, which are posted at least one week in advance of each open meeting; copies of Board Action Bulletins, which summarize the meetings; copies of Board memorandums and other documents.

Board Action Bulletin

ALEXANDRIA, Va. (Dec. 14, 2017) – The National Credit Union Administration Board held its tenth open meeting of 2017 at the agency’s headquarters here today and unanimously approved two items:

• A final rule implementing changes in the agency’s central office organization.
• A final rule amending the agency’s definition of “in danger of insolvency” to give the agency more flexibility to act when emergency mergers are necessary.

Reorganization Final Rule Makes Central Office Changes

The NCUA’s central office restructuring will be completed with the Board’s approval of a rule (Parts 701, 705, 708, and 790) implementing features of the agency’s reorganization plan announced earlier this year.

The rule includes:

• Closure of the Office of Small Credit Union Initiatives;
• Creation of the Office of Credit Union Resources and Expansion, which will take over various responsibilities of the former Office of Small Credit Union Initiatives as well as some functions of the Office of Consumer Financial Protection and Access and the Office of Minority and Women Inclusion; and
• Changing the name of the Office of Consumer Financial Protection and Access to the Office of Consumer Financial Protection.

Other planned changes to the agency’s central office reorganization, such as changes to the Office of Examination and Insurance, do not require a regulatory change. The reorganization plan includes closure of two agency regional offices, which is scheduled to occur in January 2019. Those closures will be subject to a separate rule to come before the Board in 2018.

The final rule, available online here (opens new window), becomes effective Jan. 6, 2018, to coincide with the implementation of the agency’s reorganization plan.

Final Rule Gives Agency Greater Flexibility in Emergency Mergers

Board members approved a final rule (Part 701) that would provide the NCUA with additional flexibility in situations warranting emergency mergers.

The rule amends the definition of “in danger of insolvency” in the agency’s Chartering and Field of Membership Manual. The current definition requires the NCUA to project a credit union to fall into at least one of three net worth categories over a period of time in order to be found in danger of insolvency. The rule lengthens the time period for two of the three current categories by six months and adds a fourth category to include credit unions that have been granted or received Section 208 assistance within the 15 months before an “in danger of insolvency” determination has been made.

The rule does not affect the other statutory criteria for authorizing an emergency merger.

The final rule, available online here (opens new window), becomes effective 30 days after publication in the Federal Register.

The 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. The NCUA also live streams, archives and posts videos of open Board meetings online.

Member Deposits Insured up to $250,000; Member Services Uninterrupted

ALEXANDRIA, Va. (Dec. 15, 2017) – The National Credit Union Administration today placed Louisville Metro Police Officers Credit Union, in Louisville, Kentucky, into conservatorship.

Member deposits at Louisville Metro Police Officers Credit Union 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.

Credit union members should experience no interruption in services at the credit union’s main office located at 900 West Market Street, Suite 100, Louisville, Kentucky, and at its branch location. Louisville Metro Police Officers Credit Union’s main office is open Monday, Tuesday, and Thursday from 8:30 a.m. to 3:30 p.m.; Wednesday from 9 a.m. to 1 p.m.; and Friday from 8 a.m. to 5 p.m. Members with questions may contact the credit union at 502.584.7134.

Members who have questions about the conservatorship may review the Louisville Metro Police Officers Credit Union’s Frequently Asked Questions document available on the NCUA website (opens new window). Members with questions about their Share Insurance Fund coverage can find more information on the Share Insurance Coverage (opens new window) section of the NCUA’s MyCreditUnion.gov (opens new window) consumer website.

The NCUA placed Louisville Metro Police Officers Credit Union into conservatorship to allow the credit union to continue regular operations with experienced management in place and to correct operational weaknesses. While continuing normal member services, the NCUA will work to resolve issues affecting the credit union’s safety and soundness.

Louisville Metro Police Officers Credit Union is a federally insured, state-chartered credit union with 3,564 members and assets of $28,759,623, according to the credit union’s most recent Call Report. Louisville Metro Police Officers Credit Union serves members and businesses in the Louisville, Kentucky, area.

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NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. At MyCreditUnion.gov (opens new window), NCUA also educates the public on consumer protection and financial literacy issues.

“Protecting credit unions and the consumers who own them through effective regulation”

ALEXANDRIA, Va. (Dec. 20, 2017) – Federally insured credit unions across the country saw loans grow at a faster rate in the third quarter than a year earlier, while assets and shares grew more slowly, according to state-level data compiled by the National Credit Union Administration and released today.

Nationally, median loan growth in federally insured credit unions was 5.0 percent during the year ending in the third quarter. Median asset growth was 2.9 percent; the median rate of growth in deposits and shares was 2.8 percent; and the median loans-to-shares ratio was 65 percent.

The NCUA Quarterly U.S. Map Review, available online here, tracks performance indicators for federally insured credit unions in all 50 states and the District of Columbia. The review also includes information on two important state-level economic indicators: the unemployment rate and home prices.

Positive Loan Growth in all States in the Third Quarter 

Nationally, median growth in loans outstanding was 5.0 percent over the year ending in the third quarter of 2017. The growth rate was 3.9 percent during the previous year. The highest median growth rates for loans were in Nevada (12.3 percent), followed by Oregon (11.8 percent). Median loan growth was lowest in Wyoming (0.2 percent), followed by New Jersey (0.3 percent).

Idaho, Vermont Report Highest Median Asset Growth Rates

Median asset growth was 2.9 percent nationally in the year ending in the third quarter of 2017, down from 4.2 percent the year before. Median asset growth was fastest in Idaho (8.3 percent), followed by Vermont (6.2 percent). Median asset growth was negative in the District of Columbia (-1.0 percent). At the median, assets grew least in Louisiana (0.3 percent) and Arkansas (0.4 percent).

Shares and Deposits Rise Paced by Washington, Vermont 

At the median, shares and deposits rose 2.8 percent nationally over the year ending in the third quarter of 2017, down from 4.5 percent a year earlier.

The median growth rate in shares and deposits was negative in Louisiana (-0.1 percent) and remained unchanged in the District of Columbia. Shares and deposits grew the least in Arkansas and New Jersey (both 0.5 percent).

81 Percent of Credit Unions Report Positive Net Income

Nationally, 81 percent of federally insured credit unions had positive net income during the first three quarters of 2017, essentially unchanged from 80 percent in the same period in 2016.

At least 55 percent of credit unions in every state had positive net income during the first three quarters of 2017. The share of federally insured credit unions with positive net income was highest in Nevada (100 percent), followed by Oregon (97 percent). The share of federally insured credit unions with positive net income was lowest in the District of Columbia (55 percent), followed by Arkansas and Delaware (both 67 percent).

Median Returns on Average Assets Highest in Nevada, Vermont, Utah

Nationally, the median annualized return on average assets at federally insured credit unions was 39 basis points during the first three quarters of 2017, up slightly from 37 basis points first three quarters in 2016.

Nevada (83 basis points) had the highest median annualized return on average assets during the first three quarters of 2017, followed by Vermont and Utah (both 73 basis points). The District of Columbia (13 basis points) had the lowest median return on average assets, followed by Delaware (21 basis points).

Idaho, Vermont Post Highest Median Loans-to-Shares Ratio

Nationally, the median ratio of loans outstanding to total shares and deposits—the loans-to-shares ratio—was 65 percent at the end of the third quarter of 2017, up slightly from 63 percent at the end of the third quarter of 2016. The median loans-to-shares ratio was highest among credit unions in Idaho (89 percent), followed by Vermont (87 percent). The median loans-to-shares ratio was lowest in Delaware (48 percent), followed by New Jersey, Hawaii, and Pennsylvania (all 50 percent).

Median Total Delinquency Rate Little Changed Over Year

The median total delinquency rate among federally insured credit unions was 72 basis points at the end of the third quarter of 2017, down slightly from 73 basis points in the same period in 2016. At the end of the third quarter of 2017, the median delinquency rate was lowest in Oregon (32 basis points), followed by Minnesota and Colorado (both 35 basis points). The median delinquency rate was highest in New Jersey (172 basis points), followed by Alaska (131 basis points).

Membership Growth Remains Strongest in Larger Credit Unions

The third quarter of 2017 saw credit union membership continue to be strongest in larger institutions. At the median, membership growth was unchanged over the year. 

Arizona (2.5 percent) had the highest median membership growth rate over the year ending in the third quarter of 2017, followed by Washington (2.4 percent). At the median, membership declined the most in the District of Columbia (-1.8 percent), followed by Pennsylvania (-1.2 percent).

Overall, 50 percent of federally insured credit unions had fewer members at the end of the third quarter of 2017 than a year earlier. Median membership growth was negative in 22 states. About 75 percent of credit unions with declining membership had assets of less than $50 million.

New Credit Union Will Serve North Carolina Local Government Employees

ALEXANDRIA, Va. (Dec. 20, 2017) – The National Credit Union Administration has granted a federal charter and Share Insurance Fund coverage to Civic Federal Credit Union in Raleigh, North Carolina.

“Expanding access to affordable business loans, Civic Federal Credit Union is well-poised to enhance the communities of its members, and I congratulate them on their new charter,” NCUA Board Chairman J. Mark McWatters said. “The NCUA remains committed to finding opportunities to support members and encourage growth within the cooperative credit union model while continuing to ensure the safety and soundness of the Share Insurance Fund.”

Civic Federal Credit Union will serve the employees who regularly work in local government in North Carolina, including municipal corporate and other legal entities. The credit union will operate under a trade, industry or profession single common bond charter.

Civic is being chartered for the purpose of making member business loans, focusing on local government entities throughout the state. The estimated potential membership is 283,000. The credit union also plans to emphasize mobile access and a remote video experience center.

As the credit union grows, management plans to offer more diversified services, including real estate loans, education loans, and health savings accounts.

Civic will be managed by a board of directors and management team with proven experience in credit union management and commercial banking. This management team plans to offer multiple advanced services, including automated loan decisions, to both natural-person and commercial members.

Register Now to Learn about Services that will Become Available

ALEXANDRIA, Va. (Dec. 22, 2017) – The National Credit Union’s new Office of Credit Union Resources and Expansion will begin operations on Jan. 7, 2018, and credit unions can learn about what CURE is offering on an agency webinar scheduled for Wednesday, Jan. 10, 2018.

The webinar, “Welcome to CURE,” will begin at 2 p.m. Eastern. Online registration is available here (opens new window). Participants can use this same link to log into the webinar. Registrants should allow pop-ups from this website. There is no charge.

The webinar will feature CURE Director Martha Ninichuk and Deputy Director JeanMarie Komyathy, discussing the process that created the new office as well as the office’s structure and goals.

Created as part of the NCUA’s agency-wide realignment, the Office of Credit Union Resources and Expansion will combine most of the functions of the former Office of Small Credit Union Initiatives with the field-of-membership and chartering responsibilities of the Office of Consumer Financial Protection and Access. The new office also will assume responsibility for the agency’s Minority Depository Institution Preservation Program.

Registered users can submit questions in advance at [email protected]. The email’s subject line should read, “CURE.” Participants with technical questions about accessing the webinar may email [email protected]. This webinar will be closed captioned and then archived online here approximately three weeks following the live event.