NCUA Charters Otoe-Missouria Federal Credit Union

ALEXANDRIA, Va. (May 20, 2019) – National Credit Union Administration Board Chairman Rodney E. Hood today presented a federal credit union charter to the Otoe-Missouria Federal Credit Union in Red Rock, Oklahoma.

“I congratulate the tribal community for making their vision for this credit union a reality,” NCUA Board Chairman Rodney Hood said. “This charter supports the President’s plan to perpetuate economic growth and establishes greater opportunity and financial security for individuals and businesses by providing affordable services tailored to meeting the needs of the Otoe-Missouria Tribe, its employees, and its businesses.”

As the first federal credit union chartered in 2019, the Otoe-Missouria Federal Credit Union will serve the approximately 4,200 members and employees of the Otoe-Missouria Tribe as well as 17 tribal-owned businesses. Immediately after opening, the credit union plans to offer members:

  • Regular shares
  • Share draft accounts
  • Money market accounts
  • Share certificates
  • Club accounts
  • Auto loans
  • Unsecured loans
  • Share-secured loans
  • Payroll deduction
  • Home banking

Future planned services include debit cards, courtesy pay, mobile banking, and reloadable gift cards.

NCUA has designated Otoe-Missouria Federal Credit Union as a low-income credit union, based on its potential membership. This designation gives the credit union the ability to accept non-member deposits, obtain grants and loans from the Community Development Revolving Loan Fund, offer secondary capital accounts, and qualify for exemptions from statutory limits on member business lending.

The Otoe-Missouria Development Authority, established in 2006, is sponsoring the new credit union. The Authority serves all Otoe-Missouria Tribal members while assisting the Tribe to become self-sufficient in the operation and development of revenue sources to provide for the Tribe’s present and future needs.

Share Insurance Dividend Payments to Occur the Week of May 20

ALEXANDRIA, Va. (May 21, 2019) – This week, the National Credit Union Administration will pay dividends for more than 5,500 institutions eligible for the $160.1 million National Credit Union Share Insurance Fund distribution, the agency announced today.

“Prudent actions by the NCUA Board and the agency’s successful stewardship of the Share Insurance Fund made this distribution possible,” NCUA Board Chairman Rodney E. Hood said. “I’m delighted the NCUA has been able to issue nearly $900 million in equity distributions over the past year — money that is going back into communities to support small businesses, promote economic growth, and improve the financial well-being of credit union members across the country.”

Statements were mailed to dividend recipients indicating the amounts they will receive. An institution that filed a quarterly Call Report as a federally insured credit union for at least one reporting period in calendar year 2018 will be eligible for this pro rata distribution.

The NCUA Board approved a $160.1 million dividend in March after the Share Insurance Fund reported an equity ratio of 1.39 percent at the end of 2018. That ratio was above the Board-approved normal operating level of 1.38 percent, triggering a distribution under the Federal Credit Union Act and NCUA’s rules and regulations.

This is the second equity distribution since the closure of the Temporary Corporate Credit Union Stabilization Fund and the transfer of its assets to the Share Insurance Fund in October 2017.

The NCUA Board will continue to monitor the health and risk exposure of the Share Insurance Fund, and will evaluate the normal operating level annually to determine its appropriate level, based on an analysis of data and trends.

Information on the Share Insurance Fund distribution, including the method the NCUA used to determine each institution’s share, can be found here. Additional information on the Share Insurance Fund’s equity ratio and normal operating level is also available on the NCUA’s website.

NCUA Chairman Hood Appoints Lenwood Brooks as the Assistant to the Chairman and Director of External Affairs

ALEXANDRIA, Va. (May 22, 2019) – Today, National Credit Union Administration (NCUA) Chairman Rodney E. Hood announced he has appointed H. Lenwood Brooks, V, to serve as Assistant to the Chairman and Director of External Affairs for the NCUA.

BrooksMr. Brooks joins the NCUA from the Securities Industry and Financial Markets Association, where he served as Vice President of Communications and led the trade association’s external affairs activities. He will report directly to the Chairman and will manage the agency’s Office of Public and Congressional Affairs as well as intergovernmental and stakeholder relations.

“I have known Lenwood for nearly a decade, and I look forward to him being an integral part of my team,” said Chairman Hood. “He has significant public policy experience and combines it with a deep understanding of public affairs.”

Mr. Brooks previously worked on Capitol Hill for Senator Roger F. Wicker (R-Miss.). He advised Senator Wicker and counseled him during his service on the Senate Banking Committee.

“I look forward to serving the NCUA as we seek to strengthen transparency to all stakeholders,” said Mr. Brooks. “The opportunity to assist the agency in external relations and collaborate for initiatives to support the Chairman’s agenda is a great endeavor.”

Mr. Brooks holds an undergraduate degree from the University of Mississippi in managerial finance and insurance/risk management. He holds a master’s degree in economic and workforce development from the University of Southern Mississippi. Mr. Brooks also holds a certificate from the Securities Industry Institute, an executive education program at The Wharton School.

Mr. Brooks will assume his duties May 28.

CURE Expanding Resources for Credit Unions

Board Action Bulletin

Proposed Rule Would Raise Nonmember Capital Limit

ALEXANDRIA, Va. (May 23, 2019) – The National Credit Union Administration Board held its fifth open meeting of 2019 at the agency’s headquarters today and unanimously approved one item:

  • A proposed rule allowing a federal credit union to accept nonmember and public unit shares up to 50 percent of its unimpaired capital and surplus.

The Director of the Office of Credit Union Resources and Expansion briefed the Board on the office’s upcoming activities.

The Chief Financial Officer briefed the Board on the performance of the National Credit Union Share Insurance Fund.

CURE Offering Assistance for Chartering, Low-Income Designation

The NCUA’s Office of Credit Union Resources and Expansion will offer more resources for credit unions to identify low-income areas they might serve and to assist people organizing credit unions with the chartering process.

The NCUA has a new online low-income designation area workbook that organizing groups and existing credit unions can use to research low-income areas they can target for possible member recruitment and outreach.

A new chartering modernization effort is under way that will automate and streamline the process. The NCUA plans to open a new web portal with information to assist credit union organizers. The agency will offer pre-developed business models that organizing groups can use.

The NCUA also makes training available for all credit unions, including minority depository institutions, through its Learning Management Service and hosts WebEx online meetings and teleconferences for credit unions to discuss management issues, grants and loans, and other topics.

Low-income credit unions interested in 2019 Community Development Revolving Loan Fund grants can submit applications from June 2 through July 20. The NCUA will administer approximately $2 million in grants to the most qualified applicants, subject to the availability of funds.

Share Insurance Fund Follows Recent Overall Trends

The Share Insurance Fund reported a net income of $16.1 million and a net position of $15.8 billion for the first quarter of 2019.

The fund’s total assets increased to $16.2 billion at the end of the quarter from $15.8 billion at the end of the fourth quarter of 2018.

The NCUA Board approved a $160.1 million Share Insurance distribution in March. The distribution was made this week for more than 5,500 eligible federally insured credit unions. It is the second largest Share Insurance distribution in the history of the fund. The agency has, in the past 11 months, made nearly $900 million in equity distributions.

For the first quarter of 2019:

  • The number of CAMEL codes 4 and 5 credit unions increased to 202 from 193 at the end of the fourth quarter of 2018. Assets for these credit unions held steady from the fourth quarter of 2018 to the first quarter of 2019 at $11.8 billion.
  • The number of CAMEL code 3 credit unions decreased to 905 from 940 at the end of the fourth quarter of 2018. Assets for these credit unions decreased 4.2 percent from the fourth quarter of 2018, to $50.5 billion from $52.7 billion.

Share Insurance Fund reserves for possible losses increased by $36.1 million during the quarter. There was one involuntary liquidation in the first quarter of 2019 projected to cause a loss to the fund.

The first-quarter figures are preliminary and unaudited.

Proposed Rule Raises Nonmember Shares Limit to 50 Percent

Federal credit unions would be able to accept nonmember and public unit shares up to 50 percent of paid-in and unimpaired capital and surplus under a proposed rule approved by the Board.

The proposed rule is part of the agency’s regulatory reform agenda.

Under the Federal Credit Union Act, a federal credit union may have up to 20 percent of total shares, or $3 million, whichever is greater, from nonmembers under certain circumstances. A federal credit union can also request a waiver from this limit from an NCUA regional director, and that waiver request must include a specific, written plan for how the additional shares would be used.

The proposed rule would raise the nonmember share limit to 50 percent and eliminate the waiver request process. A federal credit union would be required to develop a specific use plan if its nonmember shares, combined with its borrowings, exceeds 70 percent of paid-in and unimpaired capital and surplus.

Comments on the proposed rule must be received within 60 days after publication in the Federal Register.

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.

Register Now for June 18 Flood Insurance Webinar

ALEXANDRIA, Va. (May 29, 2019)Online registration is open for a June 18 webinar discussing updates to the flood insurance rule.

The webinar, hosted by the National Credit Union Administration and four other federal financial regulatory agencies, is scheduled to begin at 2 p.m. Eastern and run approximately one hour. Participants will be able to log into the webinar and view it on mobile devices using the registration link.

Staff from the NCUA, the Board of Governors of the Federal Reserve System, the Farm Credit Administration, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency will cover topics including:

  • Mandatory acceptance of private flood insurance,
  • Mandatory acceptance compliance aid,
  • Discretionary acceptance of private flood insurance,
  • Flood coverage provided by mutual aid societies, and
  • Recommended preparations for compliance with the new rule.

A question-and-answer session will follow the presentation. Participants also may submit questions in advance at [email protected]. Credit unions may wish to review the NCUA’s online flood insurance resources.

NCUA Webinar Highlights Credit Union, Bank Partnership Benefits

ALEXANDRIA, Va. (June 5, 2019)Online registration is open for a June 12 webinar discussing the Bank Enterprise Award Program, hosted by the National Credit Union Administration.

The webinar, “Bank Enterprise Award Program,” is scheduled to begin at 2 p.m. Eastern and run approximately 60 minutes. Participants will be able to log into the webinar and view it on mobile devices using the registration link, and they should allow pop-ups from this website.

Staff from the NCUA’s Office of Credit Union Resources and Expansion and the Bank Enterprise Award Program will discuss topics including:

  • Overview of the program;
  • Benefits of BEA-related partnerships for credit unions and banks;
  • Actual examples of credit union and bank participation in the program; and
  • Benefits of the program for Minority Depository Institutions.

The NCUA will offer live Twitter updates during the webinar on @TheNCUA. Participants can submit questions over Twitter anytime during the presentation and in advance at [email protected]. The email’s subject line should read, “Bank Enterprise Award Program.” Please email technical questions about accessing the webinar to [email protected]. This webinar will be closed captioned and archived online approximately three weeks following the live event.

NCUA’s Office of Credit Union Resources and Expansion supports low-income-designated credit unions and credit unions interested in a low-income designation; minority credit unions; credit unions seeking changes in their charters, bylaws, or fields of membership; and groups organizing to start new credit unions.

NCUA Releases Q1 2019 Credit Union System Performance Data


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”

New NCUA Video Helps Explain the Home Buying Process

ALEXANDRIA, Va. (June 11, 2019) – Buying a home can be confusing, so the National Credit Union Administration has created a new video that makes the process easier to understand.

The NCUA video, Understanding the Basics of Obtaining a Home Mortgage, guides potential homebuyers through the steps of shopping for the right mortgage loan and what to expect during the home buying process.

“An educated consumer is a smarter homebuyer,” NCUA Chairman Rodney E. Hood said. “Knowing what to expect in the process helps give people the confidence they need to make financial decisions for themselves. I encourage credit unions to add these resources to their educational outreach to members.”

The video is part of the agency’s digital campaign for National Homeownership Month. Throughout the month, the NCUA will regularly post home buying tips and resources on its Facebook and Twitter sites that credit unions, their members, and consumers in general can use and share.

Consumers can also get basic homeownership information on finding the right home, buying a home, and owning a home on the agency’s consumer site, MyCreditUnion.gov. All resources are available in Spanish.

NCUA: Q1 2019 State Credit Union Data Report Now Available

ALEXANDRIA, Va. (June 14, 2019) – Federally insured credit unions generally saw continued positive trends in the first quarter of 2019, according to the latest NCUA Quarterly U.S. Map Review.

The review tracks performance indicators for federally insured credit unions in all 50 states and the District of Columbia and includes information on two important state-level economic indicators: the unemployment rate and home prices.

Nationally, overall membership growth continued and the strongest growth continued to be concentrated in larger credit unions. Eighty-six percent of federally insured credit unions reported positive net income at the end of the first quarter. Median annual loan growth in the year ending in the first quarter was 5.8 percent, and median annual asset growth 1.6 was percent.

NCUA Chairman Hood Appoints Davis as Cybersecurity Advisor

ALEXANDRIA, Va. (June 20, 2019) – National Credit Union Administration Board Chairman Rodney E. Hood has appointed Johnny E. Davis, Jr. as Special Advisor to the Chairman for Cybersecurity.

“Cybersecurity is one of my top priorities as Chairman of the NCUA,” Hood said. “I have great confidence in Johnny’s experience and judgment in this critical area. I will be relying on Johnny to not only provide strategic counsel on cybersecurity policy but also to engage with other federal financial institutions regulators and external stakeholders.”

Davis currently serves as the NCUA’s Division Director for Critical Infrastructure, a role he will continue to fill along with this new responsibility.

Davis has more than 25 years’ experience in information security and infrastructure operations in the military, federal government, and private sector. Prior to joining the NCUA in 2015 as Chief Information Security Officer, Davis served as the Director of Critical Infrastructure Protection for the Department of Veterans Affairs. He also has served as Deputy Chief Information Security Officer at the departments of Interior, Health and Human Services, and the Environmental Protection Agency.

Davis holds a master’s degree in management and information systems from Webster University in St. Louis, Missouri, and a bachelor’s degree in the same discipline from Park University, also in St. Louis. He also holds numerous professional certifications, including: Certified Information Systems Security Professional, Certified Information Systems Auditor, Certified in Risk and Information Systems Control, and Certified Business Continuity Professional.

Davis assumes his duty as Special Advisor on June 20.