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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.

ALEXANDRIA, Va. (Dec. 22, 2017) – Thirty-nine federally insured credit unions subject to civil monetary penalties for filing late Call Reports in the second quarter of 2017 have agreed to  penalties totaling $10,150, the National Credit Union Administration announced today.

A list of credit unions filing late in the second quarter of 2017 and agreeing to pay civil monetary penalties is available online here (opens new window).

In the second quarter of 2016, 24 credit unions agreed to penalties.

Individual penalties for the second quarter ranged from $57 to $908. The median penalty was $229. The Federal Credit Union Act requires the NCUA to send any funds received through civil monetary penalties to the U.S. Treasury.

The assessment of penalties primarily rests on three factors: the credit union’s asset size, its recent Call Report filing history, and the length of the filing delay.

Of the 39 credit unions agreeing to pay penalties for the second quarter, 29 had assets of less than $10 million; nine had assets between $10 million and $50 million; and one had assets between $50 million and $100 million. No credit unions with assets of more than $250 million filed late Call Reports. Ten of the late-filing credit unions had been late in a previous quarter.

A total of 50 credit unions filed Call Reports late for the second quarter of 2017. The NCUA consulted regional offices and, when appropriate, state supervisory authorities to review each case. That review determined there were mitigating circumstances in two cases that led to credit unions not being penalized. Another nine credit unions received a requested waiver.

The NCUA informed the remaining credit unions of the penalties they faced and advised them they could reduce their penalties by signing a consent agreement. NCUA also said it would initiate administrative hearings against credit unions that did not consent.

The NCUA sends reminder messages about Call Report filing deadlines that include information on how to receive technical support to handle filing problems. The agency also has created an automated reminder email system that contacts credit unions that have not filed their Call Reports and confirms successful filing. The agency has produced a video (opens new window) describing how to file Call Reports.

ALEXANDRIA, Va. (Dec. 27, 2017) – The video recording of the Dec. 14, 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 December open meeting, the Board 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.

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.

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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

Board Adopts Updated Strategic Plan, Annual Performance Plan

ALEXANDRIA, Va. (Jan. 25, 2018) – The National Credit Union Administration Board held its first open meeting of 2018 at the agency’s headquarters here today and unanimously approved two items:

• A proposed rule to clarify agency procedures for resolving severance claims arising from involuntary liquidations.
• The agency’s 2018-2022 Strategic Plan, which summarizes internal and external factors affecting its operations, evaluates programs and risks, and sets goals for the next five years, and the 2018 Annual Performance Plan, which provides specific direction for reaching those strategic goals.

The Office of Examination and Insurance briefed the Board on proposed changes to the Call Report, which are aimed at reducing reporting burdens. A request for information will be posted in the Federal Register for a 60-day comment period.

The Office of the General Counsel briefed the Board on inflation adjustments to civil monetary penalties, as required by federal law.

Call Report Modernization Would Reduce Reporting Burdens

As part of a long-range effort to simplify filing of quarterly Call Reports, the NCUA is seeking public comment on proposed changes aimed at striking a balance between reducing burdens on credit unions and providing the agency with information necessary for supervision and data analysis.

“Call Report data is essential to the NCUA’s operations, and reporting is a significant responsibility for credit unions,” NCUA Board Chairman J. Mark McWatters said. “The agency has undertaken a comprehensive review of the Call Report to modernize and increase efficiencies. We hope that credit union stakeholders will review the proposed changes and continue to provide comments on this important and significant project.”

Comments on the proposed changes must be received within 60 days of publication of the agency’s request for information (opens new window) in the Federal Register. In the meantime, the proposed forms and instructions the agency is considering, as well as other information about the Call Report modernization program, are available on the agency’s dedicated webpage.

The proposed Call Report changes are the result of NCUA’s modernization program, begun in 2016, which included significant outreach to credit union stakeholders. The proposed changes would reduce the number of account codes in the 5300 Call Report by approximately 40 percent. Schedules would be reorganized, and instructions would be improved.

The agency will ask credit unions to consider these questions as they review the proposed changes:

• Is this a reduction in the reporting burden?
• Are any account codes slated for retirement still pertinent?
• Are the relocated account codes grouped logically?
• Should any schedules be expanded to assist in analysis based on new rules or accounting changes?
• Are the instructions adequate?
• How much time will credit unions need to make changes in their systems to adapt to Call Report changes?
• Are the other operational issues the NCUA should be aware of prior to implementing the proposed changes?

A slide presentation summarizing the proposed changes is available online here (opens new window).

Strategic Plan Reflects How the NCUA Will Respond to Change

The NCUA’s 2018-2022 Strategic Plan, approved by the Board, describes how the agency intends to adjust to change in the credit union system and incorporates a risk management framework to help the agency continuously identify, evaluate, and manage risk.

The NCUA’s three strategic goals described in the five-year plan are:

• Ensuring a safe and sound credit union system;
• Providing a regulatory framework that is transparent, efficient, and improves consumer access; and
• Maximizing organizational performance to enable mission success.

The agency is adopting new technology and analytical tools to improve its offsite monitoring; recalibrating its examination approach; and revising operations, priorities, and structure to use its resources most effectively.

The agency’s 2018 Annual Performance Plan provides specific direction and guidance to implement the overarching objectives listed in the Strategic Plan. The annual plan describes how the strategic goals will be reached and how the agency will monitor progress and identifies three priorities among the performance goals:

• Fully and efficiently execute the requirements of the agency’s examination and supervision program;
• Enable continuous risk analysis and identification of key trends to target examinations where they are most needed; and
• Promulgate efficient, targeted regulation tailored to offer meaningful relief without undermining safety and soundness.

The 2018-2022 Strategic Plan, the companion 2018 Annual Performance Plan, and previous plans are available online here.

Proposed Rule Would Clarify Severance Claims Process in Involuntary Liquidations

The process for credit union employees to make severance claims following involuntary liquidations would be revised by a proposed rule (Part 709) approved by the Board.

The proposed rule would clarify the requirements for proof of a claim by an employee for pay or benefits such as unpaid wages, sick time or vacation time while making a distinction between employees’ claims and claims by a credit union executive that constitute a golden parachute.

Comments on the proposed rule, available online here (opens new window), must be received within 60 days of publication in the Federal Register.

Final Rule Confirms Required Inflation Adjustments to Civil Monetary Penalties

The Board approved a final rule (Part 747) to amend its regulations and adjust for inflation the maximum amount for civil monetary penalties under its jurisdiction, as required by federal law.

The Federal Civil Penalties Inflation Adjustment Act Improvement Act of 2015 requires agencies to make annual adjustments and publish them in the Federal Register no later than January 15. The Act requires agencies to adjust the maximum amounts of civil monetary penalties to account for inflation. The Act does not require NCUA to assess the maximum penalty level, and the agency retains discretion to assess at lower levels, as it has done historically.

To make the adjustments required by law, the Board approved the final rule by notation vote on Jan. 9, 2018. The final rule, which became effective January 15, is available online here (opens new window).

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.

NCUA Opens Special Round of Streamlined Process; Deadline Feb. 16

ALEXANDRIA, Va. (Jan. 26, 2018) – Low-income credit unions in Florida, Puerto Rico, Texas, and the U.S. Virgin Islands, areas hit hardest by hurricanes Harvey, Irma, and Maria last fall, have a special opportunity to seek certification as Community Development Financial Institutions through the National Credit Union Administration.

“Helping credit unions help their members and communities is essential to the NCUA’s mission,” Board Chairman J. Mark McWatters said. “CDFI certification can open the door to financial and technical support that helps qualified low-income credit unions provide more resources locally, particularly when the need is acute, as it is in areas devastated by the hurricanes last fall. I encourage any low-income credit union interested in pursuing this opportunity to work with our Office of Credit Union Resources and Expansion.”

The NCUA has opened an additional round of its
streamlined CDFI certification process to low-income credit unions in these areas. The agency’s
online program guide (opens new window) has all the necessary instructions for applying. The agency will host its previously announced certification application rounds in March, June, and September.

The deadline for submitting information during this special round is Feb. 16, 2018 at 3 p.m. Eastern. Credit unions that qualify for the streamlined certification process will be notified by March 30.

For more information, please contact the Office of Credit Union Resources and Expansion by email at
[email protected] or by telephone at 703.518.6610.

In the NCUA’s streamlined process, developed with the Treasury Department’s Community Development Financial Institutions Fund, low-income credit unions submit data on loan originations to the NCUA’s Office of Credit Union Resources and Expansion. Agency staff will analyze each credit union’s information and other indicators to determine its likelihood for certification.

If the credit union is qualified to use the streamlined process, the NCUA will provide an application form and data necessary to complete it. The credit union then completes the application and submits it to the CDFI Fund.

Credit unions not eligible for streamlined certification can still use the standard application. The
CDFI Fund webpage (opens new window) has complete information.

Credit unions that obtain CDFI certification can take advantage of training and competitive award programs provided by the CDFI Fund. These resources enhance credit unions capacity to provide underserved communities with access to safe and affordable financial services.

A version of this release in Spanish is available online
here.