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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”

Board Action Bulletin

New, Simpler Methodology Yields 61.5 Percent Overhead Transfer Rate

ALEXANDRIA, Va. (Nov. 16, 2017) – The National Credit Union Administration Board held its tenth open meeting of 2017 at the agency’s headquarters here today and 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 briefed the Board on the performance of the Temporary Corporate Credit Union Stabilization Fund, which closed Oct. 1. The Fund received an unmodified, or “clean” final audit.

 

2018–2019 Budget Plan Approved

Board members approved budgets for 2018 and 2019, subject to adjustment at the annual mid-year review at the Board’s scheduled July 2018 open meeting.

The overall 2018 budget will be $321 million, an increase of 0.9 percent from 2017. The 2019 budget will be $331.4 million, a 3.2 percent increase.

The agency’s budget has three components: the operating budget, the capital budget, and the Share Insurance Fund budget. The 2018 operating budget will be $298.1 million, a 2.1 percent increase from 2017. The 2019 operating budget will be $302.7 million, a 1.5 percent increase from 2018.

The 2018 operating budget includes a net decrease of 42 full-time-equivalent positions from 2017. The 2019 operating budget includes a net decrease of 14 full-time-equivalent positions. All staff reductions will come from attrition.

The Board adopted the budget plan after taking public comments, including presentations made at the Oct. 18 public briefing.

The table below summarizes the 2018–2019 budget plan:

Budget component	2018	2019
Operating budget	$298.1 million	$302.7 million
Capital budget	$15.4 million	$21.2 million
Share Insurance Fund budget	$7.4 million	$7.5 million
Full-time equivalents	1,188	1,174

 

Capital budget increases are largely driven by necessary data infrastructure improvements.

In the last year, the NCUA has taken significant steps to increase efficiency and control costs. The agency in July announced
its restructuring plan that includes closing 40 percent of its regional offices, eliminating overlapping office functions, and re-tooling its business model.

Detailed information about NCUA’s operating budgets for 2018 and 2019, along with information about previous budgets, is available on the agency’s
Budget and Supplementary Materials webpage.

 

New Methodology Yields 2018 Overhead Transfer Rate of 61.5 Percent

The NCUA Board approved a new methodology for calculating the overhead transfer rate that is principles-based, simpler, more equitable and transparent, and will result in lower administrative costs.

Based on the new, Board-approved methodology, the 2018 overhead transfer rate is 61.5 percent, compared to 67.7 percent in 2017.

The new methodology rests on four principles:

• Time spent examining and supervising federal credit unions is allocated as 50 percent insurance-related;
• All time and costs spent supervising or evaluating risks posed by federally insured, state-chartered credit unions or other entities the NCUA does not charter or regulate is allocated as 100 percent insurance-related;
• Time and costs related to the NCUA’s administration of federal share insurance and the Share Insurance Fund are allocated as 100 percent insurance-related; and
• Time and costs related to the NCUA’s role as charterer and enforcer of consumer protection and other non-insurance-based laws are allocated as 0 percent.

The overhead transfer rate is one of two sources of funding for the agency’s budget, the operating fee being the other. It is a transfer of funds from the Share Insurance Fund to cover insurance-related expenses paid by both federally chartered credit unions and federally insured, state-chartered credit unions.

A summary of the new methodology is available online
here (opens new window), and the approved
Federal Register notice is available online
here (opens new window).

 

Operating Fee Scale Increases 15.7 Percent for Federal Credit Unions

The Chief Financial Officer reported that 2018 operating fee will increase 15.7 percent for natural-person federal credit unions, and the corporate federal credit union operating fee scale will remain unchanged.

The NCUA uses the operating fee to pay the agency’s costs of regulating federal credit unions. Credit unions with assets of less than $1 million will not be assessed the fee. The NCUA will charge the fee in March 2018, and payments will be due April 17, 2018.

Overall, federal credit unions will fund 69.9 percent of the NCUA’s 2018 operating budget, while state-chartered credit unions will fund 30.1 percent.

Detailed information on the operating fee is available online
here (opens new window).

 

Final Rule Makes Changes in Corporate Credit Union Regulation

The Board approved a final rule (Part 704) to amend agency regulations covering corporate credit unions with respect to retained earnings and Tier 1 capital.

The changes are appropriate for the current corporate credit union system, which has stabilized and consolidated in the wake of the financial crisis.

The final rule will better align capital components with a corporate credit union’s financial statements and will clarify the minimum retained earnings requirement for corporate credit unions. The final rule will not alter existing standards for prompt corrective action, and the agency does not propose to change regulations on authorized investments, concentration risk limits, maturity limits or other limitations on corporate investment activities.

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

 

Stabilization Fund Closes With a $2.6 Billion Net Position

For the quarter ending Sept, 30, 2017, the Temporary Corporate Credit Union Stabilization Fund’s net income was $570.6 million, increasing the Fund’s net position to $2.6 billion.

NCUA’s Chief Financial Officer briefed the Board on the Fund’s final quarterly performance, based on audited information. The increase in net income was due primarily to interest revenue received by the Fund as a result of a partial recovery of the $1 billion capital note from the asset management estate of the U.S. Central Federal Credit Union. Contributing to net income during the quarter was a $43.6 million reduction in the provision for insurance losses and $5.6 million in guarantee fee income for the third quarter.

The NCUA Board on Sept. 28 voted
to close the Stabilization Fund effective Oct. 1. As required by statute, the Stabilization Fund’s remaining funds, property, and other assets were distributed to the National Credit Union Share Insurance Fund, which assumed the activities and obligations of the Stabilization Fund, including the NCUA Guaranteed Notes Program. The Share Insurance Fund will report on these activities in the future.

The final Stabilization Fund audit has been completed, and that audit resulted in an unmodified, or “clean” opinion. The audit reports for the Stabilization Fund closing package and financial statement are available online
here.

Created by Congress in 2009, the Stabilization Fund reduced the impact on credit unions of the costs of resolving the corporate credit union crisis.

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.

ALEXANDRIA, Va. (Nov. 29, 2017) – Twenty-three federally insured, low-income credit unions in 17 states have been awarded $536,000 in grants to support outreach to underserved members, the National Credit Union Administration announced today.

The grants, funded by the Community Development Revolving Loan Fund, will help these credit unions provide financial literacy coaching for members in low-income communities and enhance economic opportunities in underserved communities in several ways:

• Providing micro-loans to small businesses,
• Providing payday alternative loans,
• Supporting workforce development training,
• Supporting the use of innovative technology, and
• Encouraging credit union partnerships with community organizations.

Grants ranged from $15,000 to $25,000. The agency received applications from 87 low-income credit unions requesting more than $1.9 million in grants. A complete list of 2017 NCUA grantees is available online here (opens new window).

The NCUA administers grant funding from the Community Development Revolving Loan Fund. The Fund was established by Congress to offer grants and loans to credit unions serving low-income communities.

Earlier this year, the NCUA awarded more than $1.8 million in grants to low-income credit unions to support leadership development, capacity, and digital services and security.

The NCUA also offers urgent-needs grants (opens new window) for emergency assistance to credit unions year-round, subject to funding availability.

ALEXANDRIA, Va. (Nov. 30, 2017) – Mary Anne Bradfield will become the National Credit Union Administration’s Director of Public and Congressional Affairs, effective Monday, Dec. 18, the agency announced today.

“Mary Anne has a wide-ranging career in the public and private sectors, and two themes run through that career: promoting opportunities and working collaboratively,” NCUA Board Chairman J. Mark McWatters said. “Both of those are qualities important in this position. Mary Anne’s expertise in management, strategic planning, and communications will serve the agency and the credit union system well.”

Bradfield comes to the NCUA from the U.S. Small Business Administration, where she served as Chief of Staff to SBA Administrator Linda McMahon, recruiting and organizing a high-performing team of business professionals. Before being named Chief of Staff, she was on the Trump Administration’s transition team, where she led the development of SBA’s strategic plan. That development process was recognized by the Office of Management and Budget as a model for efficiency and effectiveness.

Bradfield began her executive branch career in 2005 as SBA’s Deputy Assistant Administrator for Congressional and Legislative Affairs. She then served as Counselor to the Acting Administrator/Deputy Administrator, advising the senior executive team on policy, budget, and appropriations issues and on public and congressional affairs.

Previously, Bradfield held various public and private sector positions as a principal with a strategic communications and public affairs firm; as an advisor to the Commissioner/Chairman of the U.S. Election Assistance Commission; and as a lobbyist for the National Rifle Association. She also served as a legislative assistant to former Rep. J.C. Watts, Jr. (R-OK), where she handled a broad range of legislative topics, including banking committee issues.

Bradfield holds a bachelor’s degree in history from the University of Oklahoma.

Member Deposits Remain Protected by the Share Insurance Fund

ALEXANDRIA, Va. (Dec. 4, 2017) – The National Credit Union Administration today liquidated Riverdale Credit Union of Selma, Alabama.

Jefferson Financial Federal Credit Union of Metairie, Louisiana, immediately assumed Riverdale Credit Union’s membership, shares, loans, and most other assets. Jefferson Financial Federal Credit Union is a federal credit union with 43,849 members and assets of $563,003,450, according to the credit union’s most recent Call Report.

The new Jefferson Financial Federal Credit Union members should experience no interruption in services, and their accounts remain federally insured 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.

Members with questions about their accounts may contact Jefferson Financial Federal Credit Union at 504.348.2424 or 800.259.2471 between 8 a.m. and 5 p.m. Central, Monday through Friday. Members also may find insurance coverage information on the Share Insurance Coverage (opens new window) page of the NCUA’s consumer website, MyCreditUnion.gov (opens new window).

Riverdale was placed into conservatorship on June 22, 2017, as a result of unsafe and unsound practices at the credit union. NCUA made the decision to liquidate Riverdale and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations. At the time of liquidation and subsequent purchase by Jefferson Financial, Riverdale served 11,572 members and had assets of $54,924,278, according to the credit union’s most recent Call Report. Chartered in 1967, Riverdale Credit Union served persons who live, work, worship, or attend school in Autauga, Chilton, Dallas, Lowndes, Perry, or Wilcox counties in Alabama as well as various employee groups.

Riverdale is the fifth federally insured credit union liquidation in 2017.

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.