ALEXANDRIA, Va. (March 13, 2018) – The National Credit Union Administration Board has added a second item to the agenda for its closed meeting scheduled for Wednesday, March 14, beginning at 1:30 p.m. Eastern.
The revised agenda is as follows:
Meeting agendas are available on NCUA’s Board Meeting Calendar and Actions webpage.
ALEXANDRIA, Va. (March 13, 2018) – Federally insured credit unions across the country saw continued loan growth in the fourth quarter, 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 fourth quarter. Median asset growth was 2.5 percent; the median rate of growth in shares and deposits was 2.4 percent; and the median loans-to-shares ratio was 66 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.
Nationally, median growth in loans outstanding was 5.0 percent over the year ending in the fourth quarter of 2017. The growth rate was 4.0 percent during the previous year. The highest median growth rate for loans was in Oregon (11.0 percent), followed by Washington (10.2 percent). Median loan growth was lowest in New Jersey (0.7 percent), followed by North Dakota (1.8 percent).
Median asset growth was 2.5 percent nationally in the year ending in the fourth quarter of 2017, down from 3.2 percent the year before. Median asset growth was fastest in Vermont (7.0 percent), followed by Washington (5.9 percent). Median asset growth was negative in Louisiana (-0.1 percent). At the median, assets grew the least in the District of Columbia (0.4 percent) and Arkansas (0.7 percent).
At the median, shares and deposits rose 2.4 percent nationally over the year ending in the fourth
quarter of 2017, down from 3.3 percent a year earlier.
Over the year ending in the fourth quarter, median growth in shares and deposits was highest in Vermont (6.0 percent) and Oregon (5.5 percent).
Shares and deposits grew the least in the District of Columbia (0.2 percent) and Arkansas (0.5 percent). The median growth rate in shares and deposits was negative in Louisiana (-0.7 percent) and remained unchanged in New Jersey.
Nationally, 82 percent of federally insured credit unions had positive net income during 2017, compared to 80 percent in 2016.
At least 60 percent of credit unions in every state had positive net income during 2017. The share of federally insured credit unions with positive net income was highest in Vermont (100 percent), followed by Maine (98 percent). The share of federally insured credit unions with positive net income was lowest in the District of Columbia (62 percent), followed by Arkansas (68 percent).
Nationally, the median annualized return on average assets at federally insured credit unions was 38 basis points during 2017, compared to 34 basis points a year earlier.
Nevada (71 basis points) had the highest median annualized return on average assets during the four quarters of 2017, followed by Utah (67 basis points). New Jersey (19 basis points) had the lowest median return on average assets, followed by the District of Columbia (21 basis points).
Nationally, the median ratio of loans outstanding to total shares and deposits—the loans-to-shares ratio—was 66 percent at the end of the fourth quarter of 2017, up from 64 percent at the end of 2016. The median loans-to-shares ratio was highest among credit unions in Idaho (91 percent), followed by Vermont (88 percent). The median loans-to-shares ratio was lowest in Delaware (48 percent), followed by New Jersey (50 percent).
The median total delinquency rate among federally insured credit unions was 76 basis points at the end of the fourth quarter of 2017, compared to 80 basis points at the end of 2016. At the end of the fourth quarter of 2017, the median delinquency rate was lowest in Oregon (34 basis points), followed by California (38 basis points). New Jersey (155 basis points) reported the highest median delinquency rate, followed by Alaska (138 basis points).
The fourth quarter of 2017 saw credit union membership continue to be strongest in larger institutions. At the median, membership growth was unchanged over the year.
Vermont (3.3 percent) had the highest median membership growth rate over the year ending in the fourth quarter of 2017, followed by New Mexico (2.8 percent). At the median, membership declined the most in New Jersey (-1.2 percent) and the District of Columbia (-1.1 percent).
Overall, half of federally insured credit unions had fewer members at the end of the fourth quarter of 2017 than a year earlier. Median membership growth was negative in 20 states. About 75 percent of credit unions with declining membership had assets of less than $50 million.
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. (March 14, 2018) – The National Credit Union Administration today placed Beverly Bus Garage Federal Credit Union, in Chicago, Illinois, into conservatorship.
Member deposits at Beverly Bus Garage Federal Credit Union remain protected by the National Credit Union Share Insurance Fund. Administered by the NCUA, the Share Insurance Fund insures individual accounts at Beverly Bus Garage Federal Credit Union up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund also 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 should experience no interruption in services at the credit union’s office at 11049 S. Fairfield Avenue, Chicago, 60655. Members can continue to conduct normal financial transactions, deposit and access funds, make loan payments, and use shares. Beverly Bus Garage Federal Credit Union’s main office is open Mondays, Thursdays, and Fridays from 10 a.m. to 3 p.m., Central.
Members with questions about Beverly Bus Garage Federal Credit Union’s operations may contact the credit union at 708-422-3900. Members with questions about the conservatorship may review the Beverly Bus Garage Federal Credit Union Frequently Asked Questions attached to this release and available online here (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 Beverly Bus Garage Federal Credit Union into conservatorship because of unsafe and unsound practices at the credit union. While continuing normal member services, the NCUA will work to resolve issues affecting the credit union’s operations.
Beverly Bus Garage Federal Credit Union is a federally insured credit union with 1,300 members and assets of $4,029,521, according to the credit union’s most recent Call Report. Beverly Bus Garage Federal Credit Union serves employees of the Chicago Transit Authority at the Beverly Bus Garage in Chicago, employees of the credit union, members of their immediate families and organizations of such persons.
Board Action Bulletin
ALEXANDRIA, Va. (March 15, 2018) – The National Credit Union Administration Board held its third open meeting of 2018 at the agency’s headquarters here today and unanimously approved two items:
Credit union stakeholders have an opportunity to comment on possible changes to the standard federal credit union bylaws following the Board’s approval of an advance notice of proposed rulemaking.
The Board is considering a number of significant changes to the standard bylaws to provide credit unions with greater flexibility in their operations and reduce regulatory compliance burdens. Under the Federal Credit Union Act, the NCUA Board is required to have a standard set of bylaws prospective credit unions can use in order to simplify the incorporation process. The agency’s Regulatory Reform Task Force has recommended that changes to the bylaws may be necessary, as they have not been updated in nearly 10 years.
The Board will accept general comments and is requesting specific comments on five questions:
Stakeholders requesting a specific change to a provision of the standard bylaws should provide a brief statement regarding whether the Federal Credit Union Act would permit such a change. Some provisions of the standard Federal Credit Union Act bylaws are drawn directly from the law, and, therefore, may not be legally amended.
The advance notice of proposed rulemaking is available online here (opens new window). Comments must be received with 60 days of publication in the Federal Register.
The NCUA Board also is seeking comments on a proposal to adopt contractor suspension and debarment procedures as part of its effort to modernize its procurement process.
The NCUA is not required to follow federal government acquisition laws and regulations, but the agency believes those include best practices, and suspension and debarment procedures have proven to be an important part of government procurement. These procedures would protect the agency by helping ensure the NCUA and other executive-branch agencies do business only with presently responsible contractors.
Comments on this proposal, available online here (opens new window), must be received with 60 days of 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.
ALEXANDRIA, Va. (March 16, 2018) – Federally insured, low-income credit unions interested in becoming certified community development financial institutions may be eligible to use the National Credit Union Administration’s streamlined application.
In the streamlined process, which runs from March 19 to April 6, low-income credit unions submit data on loan originations to the NCUA’s Office of Credit Union Resources and Expansion. The agency will then analyze each credit union’s products and services 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 the data necessary to complete it. The credit union then completes the application and submits it to the CDFI Fund, which makes the final determination on the certification. Credit unions not eligible for the streamlined application can still use the standard form (opens new window).
The NCUA’s online program guide (opens new window) has all the necessary instructions for applying.
Developed by the NCUA and the Community Development Financial Institutions Fund, the streamlined application process has helped 39 credit unions obtain certification as community development financial institutions.
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. The CDFI Fund webpage (opens new window) has complete information.
ALEXANDRIA, Va. (March 19, 2018) – The video recording of the Feb. 15, 2018, 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 February open meeting, the Board unanimously approved two items:
The Chief Financial Officer briefed the Board on the performance of the National Credit Union Share Insurance Fund, which ended 2017 with a net position of $15.7 billion.
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.
ALEXANDRIA, Va. (March 20, 2018) – The National Credit Union Administration today released its 2017 Annual Report (opens new window), highlighting the agency’s activities, policy initiatives and accomplishments for 2017.
“In 2017, we took a number of significant steps to strengthen the credit union system and to improve the NCUA’s efficiency, effectiveness, transparency, and accountability,” NCUA Board Chairman J. Mark McWatters said. “We also continued to make critical investments in new technology, processes, and systems that will reduce our regulatory footprint in credit unions in the future. Our accomplishments during the year are a testament to the professionalism and dedication of the NCUA’s employees.
“In 2018, we will advance several initiatives that will further reduce the regulatory burden on credit unions and improve the agency’s operations,” McWatters said. “Additionally, developing targeted regulation that is accompanied by a thoughtfully tailored supervisory and examination program will help the credit union community grow, thrive, and prosper. Through these efforts, and with the continued support of stakeholders in the credit union community and in Congress, we can lay the foundation for a more innovative and dynamic credit union system of the future.”
Throughout 2017, the NCUA undertook a number of initiatives that strengthened the credit union system and enhanced the agency’s ability to carry out all aspects of its mission in a more efficient and effective manner. Our most significant actions were:
The 2017 Annual Report assesses the NCUA’s performance in meeting its strategic and agency priority goals and objectives as well as future challenges facing the credit unions and the agency.
For 2017, the agency’s initiatives and accomplishments fell into three categories that reflected the agency’s strategic goals and priorities outlined in the 2017–2021 Strategic Plan (opens new window):
The report also contains the audited financial statements of the NCUA’s four funds, which earned unmodified or “clean” opinions for 2017. The report further contains assurances of the agency’s compliance with financial management guidelines and other relevant laws, and statistics on credit union financial performance since 2012.
The 2017 Annual Report is available on the NCUA’s public website, here (opens new window).
The Federal Financial Institutions Examination Council (FFIEC) members today issued a joint statement to describe matters that financial institutions should consider if they are determining whether to use cyber insurance as a component of their risk management programs.
The FFIEC members do not require financial institutions to maintain cyber insurance. The evolving cyber insurance market and the shifting cyber threat landscape may, however, prompt financial institutions to consider whether cyber insurance would be an effective part of their overall risk management programs.
The joint statement notes that cyber attacks are increasing in volume and sophistication and that traditional general liability insurance policies may not provide effective coverage for all potential exposures caused by cyber events. Cyber insurance could offset financial losses from a variety of exposures—including data breaches resulting in the loss of confidential information—that may not be covered by more traditional insurance policies. Financial institution management should assess the scope of coverage of current insurance and consider how cyber insurance may fit into the institution’s overall risk management framework.
As with any insurance coverage, cyber insurance does not diminish the importance of a sound control environment. Rather, cyber insurance may be a component of a broader risk management strategy that includes identifying, measuring, mitigating, and monitoring cyber risk exposure.
Financial institutions may find additional information on risk management and cybersecurity risk management on the FFIEC’s website at http://www.ffiec.gov (opens new window).
Statement: Joint Statement on Cyber Insurance and Its Potential Role in Risk Management Programs
ALEXANDRIA, Va. (April 4, 2018) – The video recording of the March 15, 2018, 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 March open meeting, the Board unanimously approved two items:
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.
