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ALEXANDRIA, Va. (June 29, 2021) – The National Credit Union Administration ranked 9 of 25 midsize agencies in the Partnership for Public Service’s 2020 Best Places to Work in the Federal Government rankings (opens new window) released today. The ranking is based on the 2020 Federal Employee Viewpoint Survey (opens new window) (FEVS) administered by the U.S. Office of Personnel Management.

The FEVS measures employees’ perceptions of whether, and to what extent, conditions characteristic of successful organizations are present in the agency. The FEVS serves as a tool for employees to share their perceptions in many critical areas including their work experiences, their agency, and leadership.

“The NCUA team is a highly-motivated, mission-driven, and talented group of individuals. Their engagement is critical to the agency’s success, and I am pleased that we continue to be in the top tier of best places to work in the federal government,” said NCUA Chairman Todd M. Harper. “This year, we will continue to build on the efforts of Board Member Hood, who led the agency in 2020, to increase employee engagement and enhance the overall work experience. Our goal will be to make the NCUA an even better — and perhaps even the best — place to work.”

Said Board Member Rodney E. Hood, “I am delighted the NCUA was ranked among the best places to work in 2020. Against the challenging backdrop of an unprecedented global pandemic, NCUA responded with professionalism, purpose, and resilience. Chairman Harper has continued the positive momentum with substantial continuity in the forward-thinking style of management that has brought the NCUA to this point. The agency’s commitment to diversity, equity, inclusion, and belonging also have surely made the NCUA a more welcoming and productive environment.” 

Among the results, the NCUA employee engagement score was 79.4, compared to 69.0 percent governmentwide and 73.3 for the midsize agency median. This score measures employee satisfaction with their jobs and organizations. NCUA registered a COVID category score of 92 out of 100, compared to 86.1 governmentwide. This category measures employee views on the support they received during the pandemic. In the effective leadership category, the NCUA scored 71.2, compared to 67.6 for the midsize agency median and 64.2 governmentwide.

The NCUA consistently has one of the highest response rates among agencies. Eighty-seven percent of NCUA employees participated in the 2020 survey, representing the top response rate for midsize agencies.

(June 30, 2021) – The Federal Financial Institutions Examination Council (FFIEC) today issued a new booklet in the FFIEC Information Technology Examination Handbook series, titled “Architecture, Infrastructure, and Operations.”

The booklet provides expanded guidance to help financial institution examiners assess the risk profile and adequacy of an entity’s information technology architecture, infrastructure, and operations.

The new booklet replaces the “Operations” booklet issued in July 2004 and it provides examiners with fundamental examination expectations regarding architecture and infrastructure planning, governance and risk management, and operations of regulated entities. The booklet discusses the interconnectedness among an entity’s assets, processes, and third-party service providers along with the principles, processes, potential threats, and examination procedures to help examiners assess whether a financial entity’s management adequately addresses risks and complies with applicable laws and regulations.

Updates to the booklet reflect the changing technological environment and increasing need for security and resilience, including architectural design, infrastructure implementation, and operation of information technology systems. The updated booklet also highlights the importance of providing current information to examiners reviewing an entity’s information management practices pertaining to safety and soundness, consumer protection, and provision of secure and resilient business services to customers.

The complete FFIEC Information Technology Examination Handbook is available at http://ithandbook.ffiec.gov/ (opens new window).

Agency	Contact	Phone
Federal Reserve	Shelley Pitterson	202.452.5210
CFPB	Michael Robinson	202.435.7170
FDIC	LaJuan Williams-Young	202.898.3876
NCUA	Joseph Adamoli	703.518.6330
OCC	Stephanie Collins	202.649.6870
SLC	Catherine Pickels	202.728.5734

ALEXANDRIA, Va. (June 28, 2021) – The National Credit Union Administration, in its role as liquidating agent, today announced an $865.5 million distribution to the 1,800 membership capital account holders of the former Members United, Southwest Corporate, and U.S. Central corporate credit unions. The agency also announced the end of the NCUA Guaranteed Notes program and will continue to effectuate its plan to orderly liquidate the remaining post-securitized assets and make further distributions when possible.

“This third round of distributions is the largest to date and another milestone in the NCUA’s successful management of the Corporate System Resolution Program,” said NCUA Chairman Todd M. Harper. “As we wind down the remaining corporate credit union asset management estates, the NCUA will continue to conduct an orderly liquidation of the remaining assets and aggressively pursue legal recoveries while optimizing returns.

“Credit unions receiving money from these distributions are encouraged to use the funds to support serving the millions of credit union members experiencing economic hardships because of the COVID-19 pandemic, especially to people of color and those in low-income areas disproportionately affected by the pandemic.”

As liquidating agent of the former corporate credit unions’ asset management estates, the NCUA to date has previously made two rounds of distributions. The first distribution was made to the former capital holders of Southwest Corporate in July 2020. The second distribution was made to the former capital holders of Southwest Corporate, Members United, and U.S. Central in April of this year. These former capital holders will also receive the latest round of distributions, scheduled to occur before the end of September 2021. With this third distribution, the NCUA will have returned more than $1.3 billion to former membership capital account holders.

The Corporate System Resolution Program is a landmark initiative established by the NCUA Board to stabilize, resolve, and reform the corporate credit union system in the wake of the 2008 financial crisis. The program allowed the credit union system to absorb the failures of U.S. Central, WesCorp, Southwest, Members United, and Constitution corporate credit unions over time.

Information on the Corporate System Resolution Program, including projections for the Corporate Asset Management Estates Recoveries and Claims and the process for determining when distributions are made to member capital account holders, can be found on the NCUA’s website.

Board Action Bulletin

NCUA Board Approves CECL Phase-in Final Rule

ALEXANDRIA, Va. (June 24, 2021) – Through a live audio webcast, the National Credit Union Administration Board held its sixth open meeting of 2021 and unanimously approved three items:

• A final rule that removes the prohibition on the capitalization of interest in connection with loan workouts and modifications.
• A final rule that would phase-in the day-one adverse effects on regulatory capital that may result from the adoption of the current expected credit losses accounting methodology over a three-year period.
• An extension of the federal credit union loan interest rate ceiling until March 10, 2023.

Capitalization of Interest Final Rule to Aid Members in the Coming Months

The Board approved a final rule (opens new window) that removes the prohibition on the capitalization of interest in connection with loan workouts and modifications. This follows a 60-day public comment period that closed on February 2, 2021. Capitalization of Interest is the addition of accrued but unpaid interest to the principal balance of a loan.

“This rule is another targeted measure by the NCUA Board aimed at helping credit unions and their members navigate the COVID-19 pandemic’s economic environment,” said NCUA Chairman Todd M. Harper. “The final rule will also give credit unions parity with banks, Fannie Mae, Freddie Mac, and the Federal Housing Administration, all of which already allow servicers to capitalize interest as part of a prudent modification program.”

The Board is finalizing the rule largely as proposed during its November 2020 meeting. The rule removes the prohibition on credit unions from capitalizing interest on loan modifications while maintaining the important prohibition on a credit union capitalizing credit union fees and commissions. It also establishes consumer financial protection guardrails like ability to repay requirements to ensure that the addition of unpaid interest to the principal balance of a mortgage loan will not hinder the borrower’s ability to make payments or become current on the loan. These measures would apply to workouts of all types of member loans, including commercial and business loans.

The final rule becomes effective 30 days following publication in the Federal Register.

Final Rule Will Phase-in CECL’s Adverse Effects

The Board approved a final rule (opens new window) that would phase-in the day-one adverse effects on regulatory capital that may result from fully implementing the current expected credit losses (CECL) accounting methodology. This rule is consistent with regulations previously issued by the federal banking agencies.

“This phase-in will provide credit unions time to adjust to the change and grow capital organically without disrupting their ability to serve their members,” said Chairman Harper. “Additionally, this change will provide credit unions with a measure of regulatory relief while still requiring them to account for the methodology for other purposes, such as in the Call Reports they file with the NCUA.”

The NCUA Board is finalizing the rule largely as proposed during its July 2020 meeting. Under the final rule, the day-one effects of CECL on a federally insured credit union’s net worth ratio would be phased-in over a three-year period, under the NCUA’s prompt corrective action regulations. The phase-in would only be applied to those federally insured credit unions that adopt CECL for the fiscal years beginning on or after December 15, 2022, which is the deadline established by the Financial Accounting Standards Board for CECL’s implementation. Credit unions that decide to adopt CECL for the fiscal years beginning before that date would not be eligible for the phase-in.

In addition, consistent with the Federal Credit Union Act, federal credit unions with less than $10 million in assets would no longer be required to determine their charges for loan losses under Generally Accepted Accounting Principles (GAAP). Instead, these credit unions can use any reasonable reserve methodology if it adequately covers known and probable loan losses. The final rule also clarifies that state-chartered FICUs with less than $10 million in assets and that are required by state law to comply with GAAP are eligible for the transition phase-in.

The final rule becomes effective upon publication in the Federal Register.

Board Extends Current 18 Percent Interest Rate Ceiling

After reviewing recent trends in money-market rates and financial conditions among federal credit unions, the Board approved maintaining the current temporary 18-percent interest rate ceiling, for loans made by federal credit unions, for a new eighteen-month period from September 11, 2021, through March 10, 2023.

The Federal Credit Union Act caps the interest rate on federal credit union loans at 15 percent; however, the NCUA Board has the discretion to raise that limit for 18-month periods if interest-rate levels could threaten safety and soundness. The 18-percent cap applies to all federal credit union lending except originations made under NCUA’s payday alternative loan program, which are capped at 28 percent currently.

An NCUA staff analysis concluded that money market rates have risen over the preceding six-month period and that lowering the rate ceiling below the current 18-percent maximum would threaten the safety and soundness of individual credit unions due to anticipated adverse effects on liquidity, capital, earnings, and growth. The Federal Credit Union Act requires both those conditions exist for the Board to allow the interest rate ceiling to be higher than 15 percent.

The analysis also found that a decrease in the loan rate cap would likely result in a reduction in payday alternative lending, a reduction in federal credit union earnings, and some members turning to payday lenders to meet short-term borrowing needs.

“Going forward, I encourage all credit unions to offer their members lower rates whenever possible and to develop affordable loan products that include a savings feature,” Chairman Harper said. “Providing members with an easy way to save for a rainy day will help them weather small emergencies that might otherwise cause them to go to a payday lender.”

The NCUA Board will continue to monitor market rates and credit union financial conditions to determine whether a change should be made to the maximum loan rate. The Board could act sooner than 18 months if circumstances warrant.

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. (June 25, 2021) – Federally insured credit unions continued to experience double digit asset and share-and-deposit growth over the year ending in the first quarter of 2021, according to the latest Quarterly U.S. Map Review (opens new window) released today by the National Credit Union Administration.

Nationally, median asset growth for federally insured credit unions over the year ending in the first quarter of 2021 was 17.1 percent, compared with growth of 3.0 percent during the same period a year earlier. Median growth in shares and deposits over the year ending in the first quarter of 2021 was 19.5 percent, compared with 2.9 percent during the first quarter of 2020.

Loans outstanding declined 0.4 percent at the median over the year ending in the first quarter of 2021. This stands in contrast to the previous year when loans grew by 2.0 percent at the median. The median total delinquency rate among federally insured credit unions was 34 basis points at the end of the first quarter of 2021, compared with 59 basis points in the first quarter of 2020.

Overall, 77 percent of federally insured credit unions had positive net income in the first quarter of 2021, compared with 80 percent in the first quarter of 2020. At least 60 percent of credit unions in every state and the District of Columbia had positive net income in the first quarter of 2021. The annualized median return on average assets of federally insured credit unions nationally was 38 basis points in the first quarter of 2021, compared with 41 basis points in the first quarter of 2020.

The NCUA’s Quarterly U.S. Map 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.

NCUA Releases 2020 Minority Depository Institutions Annual Report to Congress

ALEXANDRIA, Va. (June 23, 2021) – The National Credit Union Administration today issued its eighth annual report to Congress on the composition and financial performance of the minority depository institutions (MDI) supervised by the NCUA in 2020. Among the report’s highlights, the number of MDI credit unions grew in 2020, and these credit unions expanded membership and increased lending. Shares and deposits were up, as were total assets.

“Even though COVID-19 caused many trials for federally insured credit unions in 2020, minority depository institutions, as a whole, met these challenges head on and grew by meeting the needs of their members,” said NCUA Chairman Todd M. Harper. “MDIs serve an invaluable role in the nation’s system of cooperative credit, and the NCUA will continue to support the growth and sustainability of MDI credit unions so they can provide safe, equitable, and affordable financial services in financial deserts and to underserved communities.”

The 2020 Minority Depository Institutions Annual Report (opens new window) is submitted to Congress annually in accordance with Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) as amended by Section 367 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

A federally insured credit union can qualify as an MDI if 50 percent or more of its current members, eligible potential members, and board of directors are from one or a combination of the four minority groups defined in FIRREA: any Black American, Asian American, Hispanic American, or Native American.

MDI credit unions are often the only federally insured financial institution available in rural, urban, and underserved communities that have been historically unserved by traditional financial institutions.

At the end of 2020, the NCUA regulated 520 federally insured credit unions with the MDI designation, up from 514 at the end of 2019, located in 37 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. MDI credit unions served more than 4.3 million members, up from 3.9 million in 2019, and reported total assets of $51.1 billion, compared to $40.5 billion at the end of 2019.

Through the NCUA’s MDI Preservation Program, eligible MDI credit unions have access to grants and loans as well as technical assistance and guidance from their examiners and on-demand training at no charge.

In 2020, the NCUA’s MDI preservation efforts included:

• Approving field-of-membership expansions for 23 MDIs, allowing them to add 754 groups or geographic areas to their membership.
• Providing 48 low-income-designated MDI credit unions with approximately $460,000 in technical assistance grants and 18 MDI credit unions with approximately $103,000 in urgent need grants.
• Providing three MDI credit unions with $75,000 in grants under the agency’s mentoring program to help them obtain technical and other assistance from stronger, more experienced institutions.
• Introducing the MDI Mentoring Cohort, which provided technical assistance and training to mentoring grant recipients.
• Hosting a two-day MDI Forum for credit unions, which included several training and breakout sessions focused on the NCUA’s 2020 supervisory priorities, growth strategies, and the NCUA’s initiatives to support minority credit unions.

ALEXANDRIA, Va. (June 21, 2021) – The National Credit Union Administration will host credit union leaders, credit union trade and support organizations, and diversity and inclusion professionals during the NCUA’s second Diversity, Equity, and Inclusion (DEI) Summit. This three-day event will take place virtually Nov. 2–4, 2021.

The NCUA’s 2021 DEI Summit will provide credit union industry professionals who are committed to advancing diversity, equity, and inclusion a forum to share best practices, address challenges to advancing diversity, and learn how the NCUA can support the industry in its efforts. To address today’s most pressing diversity, equity, and inclusion issues, the theme of this year’s event is “From Intention to Action.”

“This will be a powerful and thought-provoking conversation on the business case for diversity, equity, and inclusion within the credit union system and beyond,” NCUA Chairman Todd M. Harper said. “Embracing the principles of diversity, equity, and inclusion is vital to the continued health and success of the credit union system because it leads to better consumer protection, greater innovation, improved solutions, and increased membership. I look forward to joining in this timely and critical conversation.”

Chairman Harper, along with Vice Chairman Kyle Hauptman, Board Member Rodney Hood, and other prominent keynote speakers will address attendees. Summit topics include: How to Get Started in the DEI Journey; How to Increase Gender Diversity in the C-Suite; Facilitating Courageous Conversations Around Tough Topics; Diversity in the Boardroom; and Economic Equity and Justice.

There is no charge for this event, and formal registration will begin soon. Interested participants can sign up online to receive notifications about the Summit on the NCUA’s website.

To learn more about the NCUA’s DEI Summit 2021, please visit the NCUA’s web site.

(June 17, 2021) – The Federal Financial Institutions Examination Council (FFIEC) today announced the availability of data on 2020 mortgage lending transactions at 4,475 U.S. financial institutions reported under the Home Mortgage Disclosure Act (HMDA). Covered institutions include banks, savings associations, credit unions, and mortgage companies.

The HMDA data are the most comprehensive publicly available information on mortgage market activity. They are used by industry, consumer groups, regulators, and others to assess potential fair lending risks and for other purposes.

The FFIEC releases today several data products to serve a variety of data users. The HMDA Dynamic National Loan-Level Dataset (opens new window) is updated, on a weekly basis, to reflect late submissions and resubmissions. The Snapshot National Loan-Level Dataset (opens new window) contains the national HMDA datasets as of a fixed date, in the case of 2020 data, May 1, 2021. Aggregate and Disclosure Reports (opens new window) provide summary information on individual financial institutions and geographies. The HMDA Data Browser (opens new window) allows users to create custom tables and download datasets that can be further analyzed. In addition, beginning in late March 2021, the FFIEC made available Loan/Application Registers (opens new window) for each HMDA filer of 2020 data, modified to protect borrower privacy.

Understanding the Data

The data include a total of 48 data points providing information about the applicants, the property securing the loan or proposed to secure the loan in the case of non-originated applications, the transaction, and identifiers. A complete list of HMDA data points and the associated data fields is found in the FFIEC’s Filing Instructions Guide for HMDA Data Collected in 2020 (opens new window). Certain smaller-volume financial institutions are not required to report all of these data, pursuant to the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).¹

The 2020 HMDA data use the census tract delineations, population, and housing characteristic data from the 2011–2015 American Community Survey (ACS). In addition, the data reflect metropolitan statistical area (MSA) definitions released by the Office of Management and Budget in 2018 that became effective for HMDA purposes in 2019.

HMDA data comparisons across multiple years are limited by changes in HMDA definitions, values, and thresholds. Also, comparisons for certain geographic areas are limited due to the changes in MSA and census tract boundaries and updates to the population and housing characteristics of census tracts, especially those that follow the decennial census and five-year updates based on the ACS data.

Among other uses, the data help the public assess how financial institutions are serving the housing needs of their local communities and facilitate federal financial regulators’ fair lending, consumer compliance, and Community Reinvestment Act examinations. For example, when these regulators evaluate an institution’s fair lending risk, they analyze HMDA data in conjunction with other information and risk factors, in accordance with the Interagency Fair Lending Examination Procedures (opens new window).

HMDA data are generally not used alone to determine whether a lender is complying with fair lending laws. The data do not include some legitimate credit risk considerations for loan approval and loan pricing decisions. Therefore, when regulators conduct fair lending examinations, they analyze additional information before reaching a determination about an institution’s compliance with fair lending laws.

Observations from the 2020 Data²

For 2020, the number of reporting institutions declined by about 18.8 percent from the previous year to 4,475. One reason for the change is that, in 2020, the Bureau issued a final rule amending Regulation C to increase the threshold for collecting and reporting data about closed-end mortgage loans from 25 to 100 loans, effective July 1, 2020.³

The 2020 data include information on 22.7 million home loan applications. Among them, 20.4 million were closed-end, 1.7 million were open-end, and, for another 563,000 records, pursuant to the EGRRCPA’s partial exemptions, financial institutions did not indicate whether the records were closed-end or open-end. The number of closed-end loan applications increased by 63.2 percent, and the number of open-end line of credit applications decreased by 19.0 percent. A total of 14.5 million applications resulted in loan originations. Among them, 13.2 million were closed-end mortgage originations, 906,000 were open-end line of credit originations, and, pursuant to the EGRRCPA’s partial exemptions, 432,000 were originations for which financial institutions did not indicate whether they were closed-end or open-end. The 2020 data include 2.8 million purchased loans, for a total of 25.6 million records. The total also includes information on approximately 129,000 preapproval requests that were denied or approved but not accepted.

The total number of originated closed-end loans increased by about 5.3 million between 2019 and 2020, or 67.1 percent.⁴ Refinance originations for 1-4 family properties increased by 150.0 percent from 3.4 million, and home purchase lending increased by 6.7 percent from 4.5 million.⁵

A total of 1,637 reporters made use of the EGRRCPA’s partial exemptions for at least one of the 26 data points eligible for the exemptions. In all, they account for about 589,000 records and 439,000 originations.

From 2019 to 2020, the share of home purchase loans for first lien, 1-4 family, site-built, owner-occupied properties made to low- or moderate-income borrowers (those with income of less than 80 percent of area median income) increased slightly from 28.6 percent to 30.4 percent, and the share of refinance loans to low- and moderate-income borrowers for first lien, 1-4 family, site-built, owner-occupied properties decreased from 23.8 percent to 19.3 percent.⁶

In terms of borrower race and ethnicity, the share of home purchase loans for first lien, 1-4 family, site-built, owner-occupied properties made to Black borrowers rose from 7.0 percent in 2019 to 7.3 percent in 2020, the share made to Hispanic-White borrowers decreased slightly from 9.2 percent to 9.1 percent, and those made to Asian borrowers decreased from 5.7 percent to 5.5 percent. From 2019 to 2020, the share of refinance loans for first lien, 1-4 family, site-built, owner-occupied properties made to Black borrowers decreased from 5.3 percent to 4.3 percent, the share made to Hispanic-White borrowers decreased from 6.2 percent to 5.3 percent, and the share made to Asian borrowers increased from 5.4 percent to 6.7 percent.

In 2020, Black and Hispanic-White applicants experienced denial rates for first lien, 1-4 family, site-built, owner-occupied conventional home purchase loans of 17.2 percent and 11.2 percent respectively, while the denial rates for Asian and non-Hispanic-White applicants were 9.1 and 6.1 respectively. These relationships are similar to those found in earlier years and, due to the limitations of the HMDA data mentioned above, cannot take into account all legitimate credit risk considerations for loan approval and loan pricing.

The Federal Housing Administration (FHA)-insured share of first-lien home purchase loans for 1-4 family, site-built, owner-occupied properties decreased slightly from 20.2 percent in 2019 to 19.5 percent in 2020. The Department of Veterans Affairs (VA)-guaranteed share of such loans decreased slightly to 10.4 percent in 2020. The overall government-backed share of such home purchase loans, including FHA, VA, Rural Housing Service, and Farm Service Agency loans, was 32.9 percent in 2020, down from 33.4 percent in 2019.

The FHA-insured share of refinance mortgages for first lien, 1-4 family, site-built, owner-occupied properties decreased to 6.6 percent in 2020 from 12.0 percent in 2019, while the VA-guaranteed share of such refinance loans decreased from 13.5 percent in 2019 to 11.9 percent in 2020.

The share of mortgages originated by non-depository, independent mortgage companies has increased in recent years. In 2020, this group of lenders accounted for 60.7 percent of first lien, 1-4 family, site-built, owner-occupied home-purchase loans, up from 56.4 percent in 2019. Independent mortgage companies also originated 63.3 percent of first lien, 1-4 family, site-built, owner-occupied refinance loans, an increase from 58.1 percent in 2019.

The HMDA data also identify loans that are covered by the Home Ownership and Equity Protection Act (HOEPA). Under HOEPA, certain types of mortgage loans that have interest rates or total points and fees above specified levels are subject to certain requirements, such as additional disclosures to consumers, and also are subject to various restrictions on loan terms. For 2020, 6,682 loan originations covered by HOEPA were reported: 2,915 home purchase loans for 1-4 family properties; 369 home improvement loans for 1-4 family properties; and 3,398 refinance loans for 1-4 family properties.

Additional HMDA Information

More information about HMDA data reporting requirements is also available at https://ffiec.cfpb.gov/ (opens new window).

Questions about HMDA supervision should be directed to the institution’s supervisory agency at the following phone numbers:

• Federal Deposit Insurance Corporation: 877.275.3342; hearing impaired — 800.925.4618
• Board of Governors of the Federal Reserve System, HMDA Assistance Line: 202.452.2016
• National Credit Union Administration, Office of Consumer Financial Protection: 703.518.1140
• Office of the Comptroller of the Currency, Compliance Risk Policy Division: 202.649.5470
• Consumer Financial Protection Bureau: 202.435.7000
• Department of Housing and Urban Development, Office of Housing: 202.708.0685

Agency	Contact	Phone
CFPB	Michael Robinson	202.435.9327
FDIC	LaJuan Williams-Young	202.898.3876
Federal Reserve	Susan Stawick	202.452.2955
NCUA	Ben Hardaway	703.518.6333
OCC	Stephanie Collins	202.649.6870
SLC	Catherine Pickels	202.728.5734

NCUA Releases Credit Union System Performance Data

ALEXANDRIA, Va. (June 4, 2021) – According to the latest financial performance data released today by the National Credit Union Administration, federally insured credit unions reported net income growth of $11.3 billion, or 134.9 percent, over the year ending in the first quarter of 2021. The increase in net income was due in large part to strong growth in other operating income and a decline in the provisioning for loan, lease, and credit loss expenses. Insured shares and deposits rose $286 billion, or 22.4 percent, to $1.56 trillion over the same period.

“Though we are not fully out of the woods of the pandemic’s effects just yet, federally insured credit unions performed well overall in the first quarter of 2021, reporting strong net income, steady loan growth, and lower delinquency rates,” said NCUA Chairman Todd M. Harper. “Compressed margins continued due to low interest rates, and as expected, economic stimulus payments drove growth in insured shares, ultimately contributing to lower net worth levels across the credit union system. In these uncertain economic times, credit unions should continue to focus on the fundamentals of capital, asset quality, earnings, and liquidity as the government’s economic stimulus and forbearance programs come to an end. As community cooperatives, credit unions should also focus on their duty to their members in assisting with their financial well-being.”

Highlights from the NCUA’s Quarterly Data Summary Report for the first quarter of 2021 include:

• Net income for federally insured credit unions in the first quarter of 2021 totaled $19.7 billion at an annual rate, up $11.3 billion, or 134.9 percent, from the first quarter of 2020. Interest income declined $3.2 billion, or 5.3 percent, over the year to $57.7 billion. Non-interest income increased $5.9 billion, or 29.0 percent, to $26.2 billion, mainly due to growth in other operating income.
• The credit union system’s provision for loan and lease losses or credit loss expense declined $5.6 billion, or 66.1 percent, over the year, to $2.9 billion at an annual rate in the first quarter of 2021.
• Total loans outstanding increased $49 billion, or 4.4 percent, over the year to $1.17 trillion. The average outstanding loan balance in the first quarter of 2021 was $16,157, up $282, or 1.8 percent, from one year earlier. Credit union loan balances rose in most major categories compared with the first quarter of 2020.
• The delinquency rate at federally insured credit unions was 46 basis points in the first quarter of 2021, down 17 basis points compared with the first quarter of 2020. Loan performance improved or was little changed in most major categories.
• Credit union shares and deposits rose by $317.7 billion, or 23.1 percent, over the year to $1.69 trillion in the first quarter of 2021. Regular shares increased $160.9 billion, or 34.6 percent, to $626.2 billion compared to the first quarter of 2020. Other deposits increased $56.5 billion, or 8.3 percent, to $740.6 billion, led by money market accounts. These were up $80.3 billion, or 28.5 percent, from the first quarter of 2020.
• The credit union system’s net worth increased by $14.9 billion, or 8.3 percent, over the year to $195.3 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 10.01 percent in the first quarter of 2021, down from 11.00 percent in the first quarter of 2020.

The NCUA makes extensive credit union system performance data available in the Credit Union Analysis section of NCUA.gov. The analysis section includes quarterly data summaries as well as detailed financial information, a graphics package illustrating financial trends in federally insured credit unions, and a spreadsheet listing all federally insured credit unions as of March 31, 2021, including key metrics.

NCUA Chairman Harper Urges Congress to Increase Appropriations

ALEXANDRIA, Va. (June 1, 2021) – The National Credit Union Administration today released its Community Development Revolving Loan Fund report to Congress, highlighting the fund’s significant, positive impact on low-income credit unions, their members, and communities across the country. NCUA Chairman Todd M. Harper also requested that Congress consider increasing the fund’s appropriations in 2022.

“Since its creation, the Community Development Revolving Loan Fund has been an efficient and effective program for targeting public resources to do public good,” Chairman Harper said. “Because demand regularly exceeds the amount of available funds for these grants, and because low-income credit unions are more likely to serve communities disproportionately impacted by COVID-19, I urge Congress to increase appropriations for CDRLF grants in 2022. With more funding, the agency could increase the number of credit unions receiving grants and increase the size of the grants it makes, deepening the program’s impact in underserved communities.”

The CDRLF Annual Report to Congress (opens new window) details the program’s performance and its significant accomplishments in 2020. A complete list of grant and loan awardees and a breakdown of awardees and funding by state is also included in the report.

In 2020, the NCUA devoted nearly all its CDRLF efforts to help credit unions and their members meet the significant challenges posed by the COVID-19 pandemic. Overall, the NCUA received 432 technical assistance grant and loan requests for a total of $7.6 million. The agency’s funding capacity allowed it to only award $3.7 million in technical assistance grants and loans to 165 credit unions. Additionally, the NCUA awarded 149 credit unions in 42 states and the District of Columbia more than $968,000 in urgent need grants.

Congress created the CDRLF to stimulate economic development in low-income communities served by credit unions. Through its stewardship of the fund, the NCUA provides grants and loans to low-income-designated credit unions that use this funding to improve and expand services to members, build capacity, and stimulate local economic activity. Although relatively small in size, these grants make a big difference to low-income and minority credit unions working to provide more and better services to their members and communities.

The NCUA does not use appropriated funds to administer the CDRLF. Every penny of appropriations goes to eligible credit unions and their member-owners.

Additional information on the Community Development Revolving Loan Fund can be found at https://www.ncua.gov/support-services/credit-union-resources-expansion/grants-loans.