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Learn about the CDFI Fund-NCUA Joint Effort to Certify More Credit Unions 

ALEXANDRIA, Va. (June 1, 2016) – Low-income credit unions interested in becoming certified as Community Development Financial Institutions can get valuable information from an upcoming webinar, “CDFI Certification –Special Credit Union Version,” hosted by the National Credit Union Administration.

The webinar, is scheduled for Thursday, June 23, beginning at 2 p.m. Eastern. There is no charge.

NCUA and the Community Development Financial Institutions Fund are jointly engaged in an initiative to double the number of certified credit unions by the end of this year. The webinar will highlight the automation of existing data sources to streamline the application process.

Vanessa Lowe, economic development specialist with NCUA’s Office of Small Credit Union Initiatives, will be joined by three staff members from NCUA’s Office of Small Credit Union Initiatives — Pamela Williams, partnership and outreach analyst; Diane Rector, economic development specialist supervisor and training manager; Malia Peel, economic development specialist supervisor and project manager — and by Michelle Dickens, senior program analyst with the Community Development Financial Institutions Fund. Participants will also hear from two credit unions about their experiences going through the certification process.

Online registration for this 90-minute webinar is now open here (opens new window). Participants will use this same link to log into the webinar. Registrants should allow pop-ups from this website. Participants may submit questions in advance at [email protected].  The email’s subject line should read, “CDFI Certification – Special Credit Union Version.”

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.

In preparation for this webinar, please view the video “CDFI — Introduction and Overview (opens new window),” part of NCUA’s Community Development Financial Institutions certification video series.

NCUA’s Office of Small Credit Union Initiatives fosters credit union development and the effective delivery of financial services for small credit unions, new credit unions, minority depository institutions and credit unions with a low-income designation.

Learn More about Enhanced Protections for Service Members and Their Families

ALEXANDRIA, Va. (June 2, 2016) – The National Credit Union Administration will host a webinar, “Preparing to Comply with Regulatory Changes to the Military Lending Act,” on Wednesday, June 29, starting at 2 p.m. Eastern.

During this webinar, staff from NCUA’s Office of Consumer Protection will provide a high-level overview of the significant changes to the regulation implementing the Military Lending Act, most of which go into effect by Oct. 3. The law now covers most non-mortgage-related consumer credit extended to active duty service members and certain dependents.

The webinar will review topics like:

• Transactions the rule covers, including credit card accounts;
• Who is covered under the rule’s protections;
• How to determine who is a covered borrower; and
• How the new rule applies to NCUA’s rule on payday alternative loans.

Online registration for this 90-minute webinar is now open here (opens new window). Participants will use this same link to log into the webinar. Registrants should allow pop-ups from this website. There is no charge for participating in this webinar.

Prior to the webinar, participants are encouraged to review two NCUA Regulatory Alerts issued in March 2016 and October 2015. These alerts explain the scope of the new rules, the safe harbors available to credit unions and other details to help bring credit unions into compliance before the rule’s effective date. They also provide information about the compliance resources available on NCUA’s and the Consumer Financial Protection Bureau’s websites.

Participants may submit questions in advance at [email protected]. The subject line of the email should read, “MLA Regulatory Amendments.” Participants with technical questions about accessing the webinar may email [email protected].  NCUA will closed caption and then archive the webinar online here approximately three weeks following the live event.

NCUA’s Office of Consumer Protection handles consumer protection compliance policy and rulemaking, chartering and field of membership, fair lending examinations, consumer complaint resolution, interagency coordination and outreach and the agency’s financial literacy programs.

ALEXANDRIA, Va. (June 3, 2016) – Credit unions continued to increase their lending, with loans outstanding increasing 10.7 percent in the year ending in the first quarter of 2016, the National Credit Union Administration reported today.

“The credit union system again experienced solid performance during the first quarter of 2016,” NCUA Board Chairman Rick Metsger said. “Overall, new and used auto lending was especially strong, and the system gained one million members. With an influx of deposits, federally insured shares at credit unions also neared the $1 trillion mark coming in at $991.7 billion.

“As credit union lending has increased, long-term investments have declined and reduced the system’s interest rate risk. However, delinquency and charge-off rates are slightly higher than a year ago, and member-business loan delinquencies are rising even more. Credit unions making such loans should take note and ensure that they perform proper due diligence to mitigate the risk.”

NCUA released the new figures today, based on Call Report data submitted to and compiled by the agency for the quarter ending March 31, 2016.

Auto, Mortgage and Member Business Lending Continue Growth

Total loans at federally insured credit unions reached $799.5 billion at the end of the first quarter, an increase of 10.7 percent from one year earlier.

Year over year, loans grew in every major category, including:

• New auto loans jumped 15.4 percent to $103.0 billion.
• Used auto loans rose 13.2 percent to $166.8 billion.
• Total first-mortgage loans outstanding grew 10.4 percent to $327.9 billion.
• Other real estate loans grew by 3.9 percent to $74.3 billion.
• Net member-business loan balances increased 13 percent to $59.8 billion.
• Non-federally guaranteed student loans expanded 10.9 percent to $3.6 billion.
• Payday alternative loans originated at federal credit unions rose 8.1 percent to $106.1 million at an annual rate.

Additionally, the loans-to-shares ratio on March 31 was 76.1 percent, up 2.7 percentage points from a year earlier. The ratio, however, fell for the quarter due to an influx of member deposits.

Long-Term Investments Continue to Decline

Total investments, defined as investments greater than three months, by federally insured credit unions stood at $272.4 billion at the end of the first quarter, down 2.8 percent over the last year. Investments with maturities greater than 10 years remained unchanged from the previous quarter at $4.5 billion, though they were down 14.9 percent from the first quarter of 2015.

Investments with maturities of one to three years were $103.5 billion in the first quarter. Overall, these investments have declined 3.3 percent during the last year. The system’s ratio of net long-term assets to total assets came in at 31.7 percent, down 0.8 percentage point from a year ago and the lowest level since the third quarter of 2010.

Overall Delinquency and Charge-Off Rates Rise Slightly

The delinquency rate at federally insured credit unions was 71 basis points in the first quarter, up 2 basis points from a year earlier. The delinquency rate for fixed real estate was down for the last four quarters, but the delinquency rates for credit cards and member business loans rose with member-business loan delinquencies rising faster, coming in at 141 basis points on March 31.

The system’s net charge-off ratio increased slightly to an annualized 52 basis points in the first quarter, up from 47 basis points at the end of the first quarter of 2015.

Asset and Deposit Increases Continue

Total assets in federally insured credit unions rose to more than $1.2 trillion at the end of March, an increase of 7.1 percent for the year ending in the first quarter. Deposits at federally insured credit unions increased 6.8 percent during the same period to nearly $1.1 trillion.

Credit Unions Remain Well Capitalized

The percentage of federally insured credit unions that were well capitalized remained steady in the first quarter with 97.8 percent reporting a net worth ratio at or above the statutorily required 7 percent. At end of first quarter of 2016, 0.7 percent of federally insured credit unions were less than adequately capitalized.

Overall, the credit union system’s aggregate net worth ratio was 10.78 percent at the end of the first quarter, down 3 basis points from a year earlier.

Membership Nears 104 Million, Even as Consolidation Continues

Membership in federally insured credit unions grew to 103.7 million in the first quarter of 2016, an increase of 3.8 percent from the first quarter of 2015. In all, credit unions have added 1 million members during the quarter and 13 million members during the last five years.

Continuing a long-standing trend, the number of federally insured credit unions fell to 5,954 at the end of the first quarter of 2016, 252 less than a year ago. The decline occurred primarily in the number of credit unions under $10 million in assets. Overall, there were 3,721 federal credit unions and 2,233 federally insured, state-chartered credit unions.

Credit Unions’ Net Income Increases; Return on Average Assets Ratio Steady

Federally insured credit unions reported net income of $9.2 billion on an annualized rate in the first quarter of 2016, up 3.5 percent from the $8.9 billion reported in the first quarter a year ago.

The annualized return on average assets ratio for federally insured credit unions stood at 75 basis points the first quarter in 2016, down 3 basis points from a year earlier.

Larger Credit Unions Again Lead the System in Performance

Federally insured credit unions with more than $500 million in assets led the system in most performance measures in the first quarter of 2016, continuing a long-standing trend.

With $902.5 billion in combined assets, these 493 credit unions—up from 481 at the end of 2015—held 72.7 percent of total system assets. The 4,414 credit unions with less than $100 million in assets held 8.6 percent of the system’s total assets.

As in previous quarters, large credit unions again reported the fastest growth in loans, membership and net worth, as well as the highest return on average assets. Credit unions with assets of less than $10 million, as a whole, experienced declines in loans and membership. Credit unions with assets between $10 and $100 had positive net worth and membership growth, but experienced a slight decline in loan growth.

For selected metrics, the table below provides a summary by asset size of federally insured credit unions’ current ratios and annualized growth rates at the end of the first quarter of 2016:

Summary Metrics by Asset Size of Federally Insured Credit Unions

Metric	More than $500 million	$100 million to $500 million	$10 million to $100 million	Less than $10 million
Number of Credit Unions	493	1,047	2,659	1,755
Net Worth Ratio	10.6 percent	10.8 percent	11.7 percent	14.9 percent
Net Worth Growth	Up 8.4 percent	Up 5.9 percent	Up 2.9 percent	Up 0.4 percent
Loan Growth	Up 7.8 percent	Up 4.9 percent	Down 0.1 percent	Down 4.7 percent
Membership Growth	Up 6.0 percent	Up 3.0 percent	Up 0.3 percent	Down 0.9 percent
Return on Average Assets	87 basis points	51 basis points	32 basis points	5 basis points

 

For more information about the performance of federally insured credit unions, NCUA makes the complete details of the March 2016 Call Report available online here. An expanded summary of first-quarter performance is available here, and financial trends data for federally insured credit unions are available here.

 

news-2016-june-continued-credit-union-loan-growth-first-quarter

PURPOSE

The Federal Financial Institutions Examination Council (FFIEC), on behalf of its members¹, is issuing this statement, in light of recent cyber attacks, to remind financial institutions of the need to actively manage the risks associated with interbank messaging and wholesale payment networks. Financial institutions should review their risk management practices and controls over information technology (IT) and wholesale payment systems networks, including authentication, authorization, fraud detection, and response management systems and processes. The FFIEC members emphasize that participants in interbank messaging and wholesale payment networks should conduct ongoing assessments of their ability to mitigate risks related to information security, business continuity, and third-party provider management.

This statement does not contain new regulatory expectations. It is intended to alert financial institutions to specific risk mitigation techniques related to cyber attacks exploiting vulnerabilities and unauthorized entry through trusted client terminals running messaging and payment networks. Financial institutions should review their risk management practices (including services provided to clients) and refer to the appropriate FFIEC IT Examination Handbook booklets referenced in this statement for information on regulatory expectations regarding IT risk management. Financial institutions should also review and adhere to the technical guidance issued by payments and settlement networks for managing and controlling risks to critical systems.

BACKGROUND

Recent cyber attacks against interbank networks and wholesale payment systems to commit fraud have demonstrated capability to:

• Compromise a financial institution’s wholesale payment origination environment, bypassing information security controls.
• Obtain and use valid operator credentials with the authority to create, approve, and submit messages.
• Employ sophisticated understanding of funds transfer operations and operational controls.
• Use highly customized malware to disable security logging and reporting, as well as other operational controls to conceal and delay detection of fraudulent transactions.
• Transfer stolen funds across multiple jurisdictions quickly to avoid recovery.
   

RISKS

Unauthorized transactions involving interbank messaging and wholesale payment networks may subject the originating bank to financial loss and compliance risk².  

RISK MITIGATION

Financial institutions should use multiple layers of security controls to establish several lines of defense. Financial institutions should also ensure that their risk management processes address the risk posed by compromised credentials. In taking these actions, financial institutions should reference the risk management information contained in the FFIEC IT Examination Handbook³, specifically the Information Security⁴, Business Continuity Planning⁵, Outsourcing Technology Services⁶, and the Wholesale Payment Systems⁷booklets. Additionally, institutions should consult their payment system provider’s guidance for specific security control recommendations.

In accordance with regulatory requirements and FFIEC guidance, a financial institution should consider the following steps:

• Conduct ongoing information security risk assessments. Maintain an ongoing information security risk assessment program that considers new and evolving threat intelligence related to online accounts and adjust customer authentication, layered security, and other controls in response to identified risks. Identify, prioritize, and assess the risk to critical systems, including threats to applications that control various system parameters and other security and fraud prevention measures. In addition, ensure that third-party service providers:
  • Perform effective risk management and implement appropriate controls.
  • Properly maintain and conduct regular testing of their security controls simulating potential risk scenarios.
  • Are contractually obligated to provide security incident reports when issues arise that may affect the institution.
• Perform security monitoring, prevention, and risk mitigation. Ensure protection and detection systems, such as intrusion detection systems and antivirus protection, are up-to-date and firewall rules are configured properly and reviewed periodically. Establish a baseline environment to enable the ability to detect anomalous behavior. Monitor system alerts to identify, prevent, and contain attack attempts from all sources. In addition,
  • Follow software assurance industry practices for internally developed applications.
  • Conduct due diligence of third-party software and services.
  • Conduct penetration testing and vulnerability scans, as necessary.
  • Promptly manage vulnerabilities, based on risk, and track mitigation progress, including implementing patches for all applications, services, and systems.
  • Review reports generated from monitoring systems and third parties for unusual behavior.
• Protect against unauthorized access. Limit the number of credentials with elevated privileges across the institution, especially administrator accounts, and the ability to easily assign elevated privileges to access critical systems. Review access rights periodically to confirm approvals are still appropriate to the job function. Establish stringent expiration periods for unused credentials, monitor logs for use of old credentials, and promptly terminate unused or unwarranted credentials. Establish authentication rules, such as time-of-day and geolocation controls, or implement multifactor authentication protocols for web-based control panels.  In addition,
  • Conduct regular audits to review the access and permission levels to critical systems for employees and contractors.  Implement least privileges access policies across the entire enterprise.  In particular, do not allow users to have local administrator rights on workstations.
  • Change default password and settings for system-based credentials.
  • Prevent unpatched systems, such as home computers and personal mobile devices from connecting to internal-facing systems.
  • Implement monitoring controls to detect unauthorized devices connected to internal networks.
  • Use secure connections when remotely accessing systems and services (e.g., virtual private networks).
• Implement and test controls around critical systems regularly. Ensure appropriate controls, such as access control, segregation of duties, audit, and fraud detection and monitoring systems, are implemented for systems based on risk. Limit the number of sign-on attempts for critical systems and lock accounts once such thresholds are exceeded.  Implement alert systems to notify employees when baseline controls are changed on critical systems. Test the effectiveness and adequacy of controls periodically. Report test results to senior management and, if appropriate, to the board of directors or a committee of the board of directors. Include in the report recommended risk mitigation strategies and progress to remediate findings. In addition,
  • Encrypt sensitive data on internal- and external-facing systems in transit and, where appropriate, at rest.
  • Implement an adequate password policy.
  • Review the business processes around password recovery.
  • Regularly test security controls, such as web application firewalls.
  • Implement procedures for the destruction and disposal of media containing sensitive information based on risk relative to the sensitivity of the information and the type of media used to store the information.
  • Filter Internet access through Web site whitelisting where appropriate to limit employees’ access to only those Web sites necessary to perform their job functions.
  • Conduct incremental and full backups of important files and store the backed-up data offline.
• Manage business continuity risk.  Validate that business continuity planning supports the institution’s ability to quickly recover and maintain payment processing operations. In addition,
  • Coordinate business continuity development and testing with all applicable third parties.
  • Coordinate testing with other industry players.
• Enhance information security awareness and training programs. Conduct regular, mandatory information security awareness training across the financial institution, including how to identify and prevent successful phishing attempts.  Ensure training reflects the functions performed by employees.
• Participate in industry information-sharing forums. Incorporate information sharing with other financial institutions and service providers into risk mitigation strategies to identify, respond to, and mitigate cybersecurity threats and incidents. Since threats and tactics can change rapidly, participating in information-sharing organizations, such as the Financial Services Information Sharing and Analysis Center (FS-ISAC), can improve an institution’s ability to identify attack tactics and to successfully mitigate cyber attacks involving destructive malware on its systems. In addition to the FS-ISAC, there are government resources such as the U.S. Computer Emergency Readiness Team (US-CERT) that provide information on vulnerabilities. The US-CERT portal may be found at www.us-cert.gov. 

ADDITIONAL RESOURCES

The following are available payment systems risk management resources with practical information.

REFERENCES

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[1] The FFIEC comprises the principals of the following: The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, Consumer Financial Protection Bureau, and State Liaison Committee.

[2] e.g. U.S.A. PATRIOT Act, Bank Secrecy Act, Office of Foreign Assets Control (OFAC)

[3] See: http://ithandbook.ffiec.gov/ (opens new window)

[4] See: http://ithandbook.ffiec.gov/it-booklets/information-security.aspx (opens new window)

[5] See: http://ithandbook.ffiec.gov/it-booklets/business-continuity-planning.aspx (opens new window)

[6] See: http://ithandbook.ffiec.gov/it-booklets/outsourcing-technology-services.aspx (opens new window)

[7] See: http://ithandbook.ffiec.gov/it-booklets/wholesale-payment-systems.aspx (opens new window) 

The Federal Financial Institutions Examination Council (FFIEC) members today advised financial institutions, consistent with existing regulatory expectations, to actively manage the risks associated with interbank messaging and wholesale payment networks. In a statement, the FFIEC also stressed that financial institutions should review risk-management practices and controls related to information technology systems and wholesale payment networks, including risk assessment; authentication, authorization and access controls; monitoring and mitigation; fraud detection; and incident response.

The joint statement notes that recent cyber attacks have targeted interbank messaging and wholesale payment functions at financial institutions to originate unauthorized transactions. These unauthorized transactions may subject a bank that originates such transactions to losses and compliance risk.  

Financial institutions may find additional information on risk management and cybersecurity threat management on the FFIEC’s website at http://www.ffiec.gov/cybersecurity.htm (opens new window).

ALEXANDRIA, Va. (June 7, 2016) – Stakeholders throughout the credit union system may provide input on ways the National Credit Union Administration can modernize and improve its Call Reports, with the publication of a request for information in the Federal Register today.

“To do our job properly, NCUA needs to regularly capture credit union material-risk exposures through our Call Reports,” NCUA Board Chairman Rick Metsger said. “At the same time, we need to identify areas where we can reduce or eliminate unnecessary reporting burdens, especially for smaller and non-complex credit unions. This request for information is a critical first step in making our data collection systems better and more efficient. I, therefore, look forward to hearing the thoughts of all interested parties in the credit union system.”

At its May open Board meeting, NCUA announced that it would conduct a comprehensive review and modernization of content in the Call Report and Credit Union Profile. NCUA will gather information through a public comment-and-review process and will create an internal working group that will consult with stakeholders. The process could also include online surveys, focus groups, workshops and other activities.

In its request for information, available online here (opens new window), NCUA is seeking stakeholder input in several specific areas, including:

• What specific areas of the Call Report and Credit Union Profile do users find challenging;
• What sections or items could be made optional for small or non-complex credit unions without compromising the agency’s ability to assess risk in these institutions;
• What items could be added to the reports to enhance the agency’s analysis of the system’s performance trends;
• What areas of regulatory reporting align with a credit union’s internal accounting and what areas do not;
• How the Call Report and Credit Union Profile could be reorganized to reduce credit unions’ reporting burden; and
• What additional suggestions or ideas do credit unions have for collecting financial and non-financial information.

Stakeholder comments must be received by 5 p.m. Eastern on Monday, August 1. For additional information or to submit a comment, go to http://go.usa.gov/cSuuT (opens new window).

New Series Provides Practical Steps for Boards to Build a Succession Plan

ALEXANDRIA, Va. (June 8, 2016) – Credit union board directors can learn more about the necessity of succession planning in a new three-part video series released today on the National Credit Union Administration’s YouTube (opens new window) channel.

“Effective succession planning doesn’t start with the retirement announcement of a credit union executive,” NCUA Office of Small Credit Union Initiatives Director William Myers said. “Effective succession planning by a credit union board today will ensure that when it comes time to fill a leadership position tomorrow, the credit union’s members will be well served through the continuity of a credit union’s performance and culture.”

Succession Planning, available online here (opens new window), explains the two types of succession plans a credit union should have in place, the responsibilities of the credit union board in the succession planning process and why succession planning should be an ongoing part a credit union’s overall strategic planning process. Credit union boards may also access resources like a sample succession planning template and NCUA’s Federal Credit Union Handbook through the videos.

Created by NCUA’s Office of Small Credit Union Initiatives, the online training module on succession planning is part of a video series covering a variety of subjects important to credit union boards, such as effective board management (opens new window), credit union policies and procedures (opens new window) and mergers (opens new window). More information is also available on NCUA’s Small Credit Union Learning Center available on www.ncua.gov.

NCUA’s Office of Small Credit Union Initiatives fosters credit union development and the effective delivery of financial services for small credit unions, minority depository institutions, new credit unions and credit unions with a low-income designation. For more information about the work of the Office of Small Credit Union Initiatives, visit the office’s website or subscribe to its monthly FOCUS e-newsletter.

ALEXANDRIA, Va. (June 8, 2016) – The video recording of the May 2016 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 May open meeting, the NCUA Board discussed two issues:

• The Chief Financial Officer briefed the Board on the performance of the Temporary Corporate Credit Union Stabilization Fund, including plans to pay down $700 million of borrowings from the U.S. Treasury by May 31, 2016.
• The Office of Examination and Insurance informed the Board about proposed plans to modernize the Call Report and Credit Union Profile content and improve data collection.

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 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.

Median Delinquency Rate Holds Steady; Return on Average Assets down Slightly

ALEXANDRIA, Va. (June 10, 2016) – More than half of federally insured credit unions in every state reported growth in loan balances over the year ending in the first quarter of 2016, 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 4.5 percent during the year ending in the first quarter of 2016. The median rate of growth in deposits and shares was 3.0 percent. The median loan-to-share ratio moved above 60 percent. The median loan delinquency rate was essentially unchanged from a year earlier at 0.7 percent.

The NCUA Quarterly U.S. Map Review, available online here, tracks credit union performance indicators in the 50 states and the District of Columbia. The review also includes information on two key state-level economic indicators: unemployment rates and home price changes.

All States Report Positive Median Loan Growth; Nevada, Washington Highest

Nationally, median growth in loans outstanding was 4.5 percent over the year ending in the first quarter of 2016, up from 4.0 percent the previous year. The highest median growth rates for loans were in Nevada (9.9 percent) and Washington (8.9 percent). Median loan growth was slowest in New Jersey (0.5 percent) and the District of Columbia (1.2 percent).

Median Asset Growth Rate 2.9 Percent; Alaska, New Hampshire Highest

Median asset growth was 2.9 percent nationally in the year ending in the first quarter of 2016, up from 1.8 percent a year earlier. Median asset growth was fastest in Alaska (6.7 percent) and New Hampshire (6.3 percent). Median asset growth was slowest in New Jersey (0.7 percent) and Louisiana (1.0 percent).

Idaho, Alaska Report Highest Median Growth Rates in Shares and Deposits

Nationally, federally insured credit unions’ median growth rate in shares and deposits was 3.0 percent in the year ending in the first quarter of 2016, up from 1.6 percent during the previous year.

At the median, shares and deposits rose in each state over the year ending in the first quarter. The median growth rate in shares and deposits was highest in Idaho (6.8 percent) and Alaska (6.3 percent). The median growth rate in shares and deposits was lowest in New Jersey (0.6 percent) and Kansas (1.2 percent).

Utah, Virginia Pace Nation on Aggregate Returns on Average Assets

Nationally, the aggregate return on average assets at federally insured credit unions was 75 basis points at an annual rate at the end of the first quarter of 2016, down slightly from 78 basis points at the end of the first quarter of 2015. The aggregate return on average assets was positive in every state in the first quarter of 2016. Utah (117 basis points) had the highest aggregate return, followed by Virginia (115 basis points). New Jersey (17 basis points) and Connecticut (33 basis points) posted the lowest aggregate returns on average assets.

Idaho and Alaska Again Report Highest Median Loan-to-Share Ratios

Nationally, the median ratio of loans outstanding to total shares and deposits was 61 percent at the end of the first quarter of 2016, compared to 59 percent a year previously. The median loan-to-share ratio was highest among credit unions in Idaho (87 percent) and Alaska (82 percent). The median loan-to-share ratio was lowest in Hawaii (42 percent) and Delaware (44 percent).

Median Total Delinquency Rate Steady

The median total delinquency rate at federally insured credit unions was 0.7 percent nationally in the first quarter of 2016, unchanged from the first quarter of 2015. At the end of the first quarter, the median delinquency rate was lowest in California, Colorado and New Hampshire (all 0.3 percent). New Jersey (1.6 percent) reported the highest median delinquency rate, followed by Louisiana (1.3 percent).

Greater Share of Credit Unions Gain Members

While overall credit union membership continued to grow during the year ending in the first quarter of 2016, at the median, membership was unchanged.

Zero median membership growth means that, overall, 50 percent of federally insured credit unions had fewer members at the end of the first quarter of 2016 than a year earlier. Over the previous year, the median membership growth rate was negative 0.4 percent, and 53 percent of credit unions lost members over the year ending in first quarter of 2015.

Membership growth over the most recent four quarters continued to be concentrated in larger credit unions. Credit unions with falling membership tended to be small; about 75 percent of those credit unions had assets of less than $50 million.

Alaska (4.0 percent) had the highest median membership growth rate over the year ending in the first quarter of 2016, followed by New Mexico (2.0 percent). Median membership growth was negative in 16 states. At the median, membership declined the most in Pennsylvania (-1.8 percent).

Read the Latest Issue of “The NCUA Report” Online

ALEXANDRIA, Va. (June 14, 2016) – The business case for diversity at credit unions is simple—it’s a good investment.

In the latest issue of the National Credit Union Administration’s monthly newsletter, an article by the Office of Minority and Women Inclusion outlines how diversity leads to better service, greater innovation and increased membership. These outcomes make credit unions stronger and more sustainable, and ultimately lead to greater strength for the entire credit union system.

The June 2016 issue of The NCUA Report is now available online here (opens new window).

The agency’s newsletter features columns from NCUA Board Chairman Rick Metsger and Board Member J. Mark McWatters, as well as articles from several NCUA offices on the agency’s initiatives and information on supervisory, regulatory and compliance issues that are important to all federally insured credit unions.

Articles in this month’s issue include:

• NCUA Extends Call Report Deadlines for July, October Reporting
• Chairman’s Corner: Instant Replay Timeout: Official Review of the Regulatory Process
• Board Member McWatters’ Perspective: Accounting Standards May Drive ALLL Changes
• Board Actions: Stabilization Fund to Pay Treasury $700 Million
• How Will Your Commercial Loan Underwriting and Deal Structure Change with the New Member Business Lending Rule
• Grants Give Low-Income Credit Unions the Means to Grow
• Reaching the Credit-Invisible

Published monthly, The NCUA Report is NCUA’s flagship publication. The newsletter highlights important Board actions and key issues that credit union managers, staff and volunteers need to know. If interested, you can subscribe to the online version of the newsletter here (opens new window).

Previous issues of The NCUA Report are available online here (opens new window).