New York State Employees Closes; Palisades Assumes Members, Shares, Loans

Member Deposits Remain Protected by the Share Insurance Fund

ALEXANDRIA, Va. (Oct. 27, 2017) – The National Credit Union Administration today liquidated New York State Employees Federal Credit Union of New York, New York. 

Palisades Federal Credit Union of Pearl River, New York, immediately assumed most of New York State Employees Federal Credit Union’s assets and all members, shares and loans. Palisades Federal Credit Union is a federally chartered credit union that serves 13,832 members and has assets of nearly $200 million, according to the credit union’s most recent Call Report.

The new Palisades Federal Credit Union members should experience no interruption in services, and the existing New York State Employees Federal Credit Union office will remain open until the transition of services is complete.

Members’ accounts remain 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 Palisades Federal Credit Union at 800-438-7415 between 9 a.m. and 5 p.m. Eastern on Monday, Tuesday, Thursday, and Friday; from 10 a.m. to 5 p.m. on Wednesday; and from 9 a.m. to 1 p.m. on Saturday.

The NCUA made the decision to liquidate New York State Employees Federal Credit Union and discontinue its operations after determining the credit union was insolvent with no prospect for restoring viable operations on its own. At the time of liquidation and subsequent purchase by Palisades Federal Credit Union, New York State Employees Federal Credit Union served 1,183 members and had assets of $2 million, according to the credit union’s most recent Call Report. Chartered in 1935, New York State Employees Federal Credit Union served various groups in New York.

New York State Employees Federal Credit Union is the fourth federally insured credit union liquidation in 2017.

NCUA Marks Veterans Day 2017

Federally Insured Credit Unions Serve More Than 14 Million Service Members and Veterans

ALEXANDRIA, Va. (Nov. 9, 2017) –National Credit Union Administration Board Chairman J. Mark McWatters and Board Member Rick Metsger today issued statements on the eve of Veterans Day.

“Veterans’ Day is a day of recognition, reflection, and inspiration,” McWatters said. “We honor the men and women who have served in our country’s armed forces and their courage, skill, and devotion to our nation and its ideals. We acknowledge the sacrifices they and their families made, and we draw inspiration from their example. More than 14 million American service members, veterans, and their families belong to credit unions, and the credit union community will continue to support those who serve and meet their financial needs. In that same spirit, I will continue to be their advocate.”

“Our nation has a continuing obligation to veterans and to active-duty personnel, and credit unions plays their part by providing affordable financial services,” Metsger said. “When NCUA updated its field-of-membership rule last year, we added a provision to include within a credit union’s common bond honorably discharged veterans of any branch of the United States Armed Forces listed in its charter, which allowed them to continue their eligibility for  membership beyond active duty. It’s another way we can support service members and their families.”

The NCUA offers information tailored for members of the military and their families on its Pocket Cents consumer information website.

Veterans currently make up 17 percent of the NCUA’s employees and 12 percent of its senior staff. The agency has been recognized for its efforts to recruit veterans to its workforce. NCUA ranked second among mid-sized federal agencies in the 2016 Partnership for Public Service report as a “best place to work” for veterans.

The NCUA’s offices will be closed Nov. 10 in observance of the Veterans Day holiday.

October 2017 NCUA Board Meeting Video Available

ALEXANDRIA, Va. (Nov. 9, 2017) – The video recording of the Oct. 19, 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 October open meeting, the Board unanimously approved four items:

  • A final rule enhancing due process and providing consistency with other federal financial institutions regulators in the supervisory appeals process.
  • A final rule providing uniform, comprehensive procedures to govern the agency’s regulatory appeals process.
  • A proposed rule to reduce regulatory burdens by removing some of the capital planning and stress testing requirements currently applicable to federally insured credit unions with assets of $10 billion or greater.
  • A request for information to be published in the
    Federal Register on standardizing the loan, deposit, and investment information collected electronically during examinations.

The Chief Financial Officer 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.

NCUA Board Sets 2018 Meeting Schedule

ALEXANDRIA, Va. (Nov. 13, 2017) – The National Credit Union Administration Board today released its monthly meeting schedule for 2018. Open Board meetings are scheduled to begin at 10 a.m. Eastern on the following dates:

Dates
Jan. 25 May 24 Oct. 18
Feb. 15 June 21 Nov. 15
March 15 July 26 Dec. 20
April 19 Sept. 20

 

No meeting is scheduled for August. The meeting schedule is subject to change. The Board meeting calendar is available online on the agency’s Board Meeting Calendar webpage.

The NCUA’s Board holds open meetings at the agency’s central office located at 1775 Duke St., Alexandria, Virginia, and offers a livestream available through the NCUA.gov website. The NCUA also provides live updates during all open Board meetings on Twitter; follow @TheNCUA.

The Board Actions webpage also has Board agendas, which are posted one week in advance of each open meeting; copies of Board Action Bulletins, which summarize the results of each open meeting; and copies of Board memorandums and other documents related to items being considered by the Board at its open meetings.

The NCUA posts videos of open Board meetings as part of the agency’s ongoing efforts to provide transparency and allow people who are unable to attend 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.

Budget Briefing Video Available Online

ALEXANDRIA, Va. (Nov. 13, 2017) – The video recording of the Oct. 18 public briefing on the National Credit Union Administration’s proposed 2018-2019 budget is now available online here.

The NCUA Board is scheduled to consider the final version of the 2018-2019 budget at its Nov. 16 open Board meeting. As it does with all open Board meetings, the agency will provide a livestream of the meeting, available through its website, and live updates on Twitter; follow @TheNCUA.

A detailed budget proposal, budget presentation, public comments on the proposed budget, and Board Chairman J. Mark McWatters’ statement on the proposed budget, are available on the agency’s Budget and Supplementary Materials webpage. The page also includes extensive agency budget documents—including frequently asked questions, office-by-office budget breakdowns, and budget justifications—from previous years.

Closed Board Meeting – November 16, 2017


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, NCUA also educates the public on consumer protection and financial literacy issues.

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

NCUA Board Approves 2018-2019 Budget

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, and the approved
Federal Register notice is available online
here.

 

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.

 

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, 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
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 Awards $536,000 in Grants to Help Credit Unions Reach Underserved Members

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.

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 for emergency assistance to credit unions year-round, subject to funding availability.

NCUA Names Mary Anne Bradfield as Director of Public and Congressional Affairs

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.

Riverdale Credit Union Closes, Jefferson Financial Assumes Members, Shares, and Loans

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 page of the NCUA’s consumer website, MyCreditUnion.gov.

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.