NCUA: Q2 2020 State Credit Union Data Report Now Available

ALEXANDRIA, Va. (Sept. 15, 2020) – Federally insured credit unions saw strong asset and share-and-deposit growth over the year ending in the second quarter of 2020, according to the latest NCUA Quarterly U.S. Map Review.

Nationally, median asset growth over the year ending in the second quarter of 2020 was 10.0 percent, compared to 1.7 percent during the year ending in the second quarter of 2019. The median growth rate of loans outstanding was 0.2 percent over the year ending in the second quarter of 2020, compared to 4.6 percent over the year ending in the second quarter of 2019.

During the first half of 2020, 81 percent of federally insured credit unions had positive net income, compared to 88 percent during the first half of 2019. Nationally, the median annualized return on average assets was 39 basis points during the first half of 2020, compared to 63 basis points during the first half of 2019.

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 Monitoring Wildfires in the Western States

ALEXANDRIA, Va. (Sept. 11, 2020) – The National Credit Union Administration is monitoring a series of wildfires across the Western portion of the United States and stands ready to provide assistance to federally insured credit unions in the affected areas, the agency announced today.

The National Interagency Fire Center is tracking more than 100 fires in 12 states. The NCUA is tracking these fires closely, and the agency will monitor the conditions of credit unions in their path.

Credit unions are encouraged to keep in contact with their examiners, and the agency will be ready to assist credit unions with maintaining or restoring operations, if necessary. The agency maintains a hurricane and disaster information page on its website with more material on preparedness, disaster recovery, and staying safe.

The NCUA’s Office of Credit Union Resources and Expansion can provide urgent needs grants of up to $7,500 to low-income credit unions that experience sudden costs to restore operations because of these fires. Agency examiners can assist credit unions that wish to apply for those grants.

Credit union member deposits remain protected by the National Credit Union Share Insurance Fund. Administered by the NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States. Members with questions about their insurance coverage can find information online at the Share Insurance Coverage page of the NCUA’s MyCreditUnion.gov website.

Credit union members with questions may contact the NCUA’s Consumer Assistance Center at 800.755.1030 Monday through Friday between 8 a.m. and 5 p.m. Eastern.

NCUA Awards Mentoring Grants to Three MDI Credit Unions

ALEXANDRIA, Va. (Sept. 9, 2020) – The National Credit Union Administration awarded $75,000 in grants to three low-income, minority depository institution credit unions to support mentoring programs with larger credit unions.

“Mentoring relationships can help MDI credit unions, particularly those in rural and underserved communities, grow stronger and support their members and communities better,” NCUA Chairman Rodney E. Hood said. “The NCUA’s mentoring program is important to the promoting the broader goal of greater financial inclusion. I congratulate the grantees and look forward to hearing about the results of their efforts.”

The agency awarded mentoring grants to:

  • Northern New Mexico School Employee Federal Credit Union, of Santa Fe, with Guadalupe Credit Union, also of Santa Fe, serving as mentor;
  • N.U.L. Federal Credit Union, of New York, New York, with 1199 SEIU Federal Credit Union, also of New York, serving as mentor; and
  • F A B Church Federal Credit Union, of Savannah, Georgia, with Georgia Heritage Federal Credit Union, also of Savannah, serving as mentor.

The grants were funded through the NCUA’s Community Development Revolving Loan Fund allocation. The agency’s mentoring program helps small, low-income, minority depository institutions establish mentoring relationships with larger low-income credit unions to provide expertise and guidance in serving low-income and underserved populations. The larger credit unions will offer technical assistance, such as building staff capacity through training and improvements to credit union operations.

The NCUA’s Office of Credit Union Resources and Expansion supports low-income-designated credit unions; 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 Q2 2020 Credit Union System Performance Data

ALEXANDRIA, Va. (Sept. 3, 2020) – Data on the financial performance of federally insured credit unions for the quarter ending June 30, 2020, are now available from the National Credit Union Administration.

The NCUA’s Quarterly Data Summary Reports include an overview of the quarterly Call Report data as well as tables showing the recent history of major credit union performance indicators.

The NCUA also 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 June 30, 2020, including key metrics.

Federal and State Financial Regulatory Agencies Issue Interagency Statement on Supervisory Practices Regarding Financial Institutions Affected by Hurricane Laura and California Wildfires

(Sept. 1, 2020) – The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the state regulators, collectively the agencies, recognize the serious impact of Hurricane Laura and the California wildfires on the customers and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision. The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities.

A complete list of the affected disaster areas can be found at https://www.fema.gov/disasters.

Lending: Financial institutions should work constructively with borrowers in communities affected by Hurricane Laura and the California wildfires. Prudent efforts to adjust or alter terms on existing loans in affected areas should not be subject to examiner criticism. Modifications of existing loans should be evaluated individually to determine whether they represent troubled debt restructurings. This evaluation should be based on the facts and circumstances of each borrower and loan, which requires judgment, as not all modifications will result in a troubled debt restructurings. In supervising institutions affected by these disasters, the agencies will consider the unusual circumstances these institutions face. The agencies recognize that efforts to work with borrowers in communities under stress can be consistent with safe-and-sound practices as well as in the public interest.

Temporary Facilities: The agencies understand that many financial institutions face staffing, power, telecommunications, and other challenges in re-opening facilities after Hurricane Laura and the California wildfires. In cases in which operational challenges persist, the primary federal and/or state regulator will expedite, as appropriate, any request to operate temporary facilities to provide more convenient availability of services to those affected by these disasters. In most cases, a telephone notice to the primary federal and/or state regulator will suffice initially to start the approval process, with necessary written notification being submitted shortly thereafter.

Publishing Requirements: The agencies understand that the damage caused by Hurricane Laura and California wildfires may affect compliance with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations. Institutions experiencing disaster-related difficulties in complying with any publishing or other requirements should contact their primary federal and/or state regulator.

Regulatory Reporting Requirements: Institutions affected by Hurricane Laura and California wildfires that expect to encounter difficulty meeting the agencies’ reporting requirements should contact their primary federal and/or state regulator to discuss their situation. The agencies do not expect to assess penalties or take other supervisory action against institutions that take reasonable and prudent steps to comply with the agencies’ regulatory reporting requirements if those institutions are unable to fully satisfy those requirements because of these disasters. The agencies’ staffs stand ready to work with affected institutions that may be experiencing problems fulfilling their reporting responsibilities, taking into account each institution’s particular circumstances, including the status of its reporting and recordkeeping systems and the condition of its underlying financial records.

Community Reinvestment Act (CRA): Financial institutions may receive CRA consideration for community development loans, investments, or services that revitalize or stabilize federally designated disaster areas in their assessment areas or in the states or regions that include their assessment areas. For additional information, institutions should review the Interagency Questions and Answers Regarding Community Reinvestment at https://www.ffiec.gov/cra/qnadoc.htm.

Investments: The agencies realize local government projects may be negatively affected by Hurricane Laura and California wildfires. Institutions should monitor municipal securities and loans affected by these disasters. Appropriate monitoring and prudent efforts to stabilize such investments are encouraged.

For more information, refer to the Interagency Supervisory Examiner Guidance for Institutions Affected by a Major Disaster, which is available as follows:

CSBS: https://www.csbs.org/interagency-supervisory-examiner-guidance-institutions-affected-major-disaster
FDIC: https://www.fdic.gov/news/news/financial/2017/fil17062.html
FRB: https://www.federalreserve.gov/supervisionreg/srletters/sr1714a1.pdf
OCC: https://www.occ.gov/news-issuances/bulletins/2017/bulletin-2017-61.html
NCUA: https://www.ncua.gov/Resources/Documents/SL-17-02-examiner-guidance-institutions-affected-major-disaster-enclosure.pdf

Agency Contact Phone
CSBS Catherine Pickels 202.728.5734
Federal Reserve Darren Gersh 202.452.2955
FDIC Julianne Fisher Breitbeil 202.898.6895
NCUA Ben Hardaway 703.518.6333
OCC Stephanie Collins 202.649.6870

Agencies Extend Comment Period on Proposed Revisions to Interagency Questions and Answers Regarding Flood Insurance

(Sept. 1, 2020) – WASHINGTON—Five federal regulatory agencies today announced they will extend the comment period on a proposal to revise the Interagency Questions and Answers Regarding Flood Insurance (Interagency Questions and Answers) until November 3, 2020.

The agencies are extending the comment period because of the extent of the revisions proposed by the agencies and in light of the challenges associated with the COVID-19 pandemic. The extension will allow interested parties additional time to analyze the issues and to prepare comments. The proposed Interagency Questions and Answers, which were issued in July 2020, provide information addressing technical flood insurance-related compliance issues. The previous deadline for comments was September 4, 2020.

The Federal Register notice is attached.

Agency Contact Phone
Federal Reserve Board Susan Stawick 202.452.2955
FCA Emily Yaghmour 703.883.4056
FDIC David Barr 202.898.6992
NCUA Ben Hardaway 703.518.6333
OCC Stephanie Collins 202.649.6870

NCUA Warns Credit Unions in the Path of Hurricane Laura to Prepare

ALEXANDRIA, Va. (Aug. 26, 2020) – Credit unions in the path of Hurricane Laura are advised to take precautions as the storm intensifies in the Gulf of Mexico, the National Credit Union Administration said today.

“Credit unions in Hurricane Laura’s path should to take measures to protect their staff and secure their operations,” NCUA Chairman Rodney E. Hood said. “The NCUA will be closely monitoring the storm’s progress, and we stand ready to assist credit unions with maintaining or restoring operations, if necessary. Credit unions and members can find information on staying safe from several online resources, and we encourage everyone to be alert for official announcements and media reports as the hurricane draws near.”

Hurricane Laura’s current projected path could have it making landfall along the Gulf Coasts of Texas and Louisiana as early as Wednesday evening.

The NCUA maintains a hurricane and disaster information page on its website as well as on MyCreditUnion.gov. The National Hurricane Center has regular updates on the storm as it approaches landfall, and the Department of Homeland Security has additional information on being prepared for hurricanes.

Credit union member deposits remain protected by the National Credit Union Share Insurance Fund. Administered by the NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States.

Credit union members with questions may contact the NCUA’s Consumer Assistance Center at 800.755.1030, Monday through Friday between 8 a.m. and 5 p.m. Eastern. The NCUA’s Office of Credit Union Resources and Expansion can provide urgent needs grants of up to $7,500 to low-income credit unions that experience sudden costs to restore operations interrupted by the storm.

NCUA Webinar Will Discuss Credit Union, NeighborWorks Partnerships

Register Now to Learn About Opportunities in Community Development

ALEXANDRIA, Va. (Aug. 25, 2020) – Credit unions can learn more about potential collaborations with NeighborWorks America during an upcoming webinar hosted by the National Credit Union Administration.

Online registration is now open for the webinar, “Partnering with NeighborWorks.” The webinar is scheduled for Sept. 15, beginning at 2 p.m. Eastern. Participants will use the registration link to log into the webinar and should allow pop-ups from this website. There is no charge to participate in this hour-long webinar.

NeighborWorks America is a leading national housing and community development organization with a nation-wide network of nearly 240 local nonprofits. The webinar will include presentations from:

  • Roger Nadrchal, CEO of NeighborWorks Northeast Nebraska;
  • Brian Christiansen, president and CEO of Columbus United Federal Credit Union and president of NeighborWorks Northeast Nebraska’s board of directors;
  • Patricia Garcia-Duarte, president and CEO of Trellis, a housing and community development non-profit; and
  • Robin Romano, CEO of MariSol Federal Credit Union.

Participants may submit questions in advance to [email protected]. The email’s subject line should read, “Partnering with NeighborWorks.” Technical questions about accessing the webinar should be emailed to [email protected]. This webinar will be closed captioned and then archived online approximately three weeks following the live event.

NCUA Webinar Will Discuss Credit Union, NeighborWorks Partnerships

Register Now to Learn About Opportunities in Community Development

ALEXANDRIA, Va. (Aug. 25, 2020) – Credit unions can learn more about potential collaborations with NeighborWorks America during an upcoming webinar hosted by the National Credit Union Administration.

Online registration is now open for the webinar, “Partnering with NeighborWorks.” The webinar is scheduled for Sept. 15, beginning at 2 p.m. Eastern. Participants will use the registration link to log into the webinar and should allow pop-ups from this website. There is no charge to participate in this hour-long webinar.

NeighborWorks America is a leading national housing and community development organization with a nation-wide network of nearly 240 local nonprofits. The webinar will include presentations from:

  • Roger Nadrchal, CEO of NeighborWorks Northeast Nebraska;
  • Brian Christiansen, president and CEO of Columbus United Federal Credit Union and president of NeighborWorks Northeast Nebraska’s board of directors;
  • Patricia Garcia-Duarte, president and CEO of Trellis, a housing and community development non-profit; and
  • Robin Romano, CEO of MariSol Federal Credit Union.

Participants may submit questions in advance to [email protected]. The email’s subject line should read, “Partnering with NeighborWorks.” Technical questions about accessing the webinar should be emailed to [email protected]. This webinar will be closed captioned and then archived online approximately three weeks following the live event.

Agencies Issue Statement on Bank Secrecy Act Due Diligence Requirements for Customers Who May Be Considered Politically Exposed Persons

(Aug. 21, 2020) – WASHINGTON—The Federal Reserve Board, the Federal Deposit Insurance Corporation, the Financial Crimes Enforcement Network, the National Credit Union Administration, and the Office of the Comptroller of the Currency today issued a joint statement clarifying that Bank Secrecy Act (BSA) due diligence requirements for customers who may be considered “politically exposed persons” (PEPs) should be commensurate with the risks posed by the PEP relationship.

The term PEP is commonly used to refer to foreign individuals who are or have been entrusted with a prominent public function, as well as their immediate family members and close associates. By virtue of this public position or relationship, these individuals may present a higher risk that their funds may be the proceeds of corruption or other illicit activity.

Addressing the money-laundering threat posed by corruption of foreign officials continues to be a national security priority for the United States. The statement recognizes that PEP relationships present varying levels of money-laundering risk, which depends on facts and circumstances specific to the customer relationship. For example, PEPs with a limited transaction volume, a low dollar deposit account with the bank, known legitimate sources of funds, or access only to products or services that are subject to specific terms and payment schedules could reasonably be characterized as having lower customer risk profiles.

The statement clarifies that, while banks must adopt appropriate risk-based procedures for conducting customer due diligence (CDD), the CDD rule does not create a regulatory requirement, and there is no supervisory expectation for banks to have unique, additional due diligence steps for customers who are considered PEPs. This joint statement does not alter existing BSA and anti-money laundering (AML) legal or regulatory requirements and does not require banks to cease existing risk management practices.

Attachment
Joint Statement on Bank Secrecy Act Due Diligence Requirements for Customers Who May Be Considered Politically Exposed Persons

Agency Contact Phone
Federal Reserve Darren Gersh 202.452.2955
FDIC Julianne Fisher Breitbeil 202.898.6895
FinCEN Steve Hudak 703.905.3770
NCUA Laura Todor 703.518.1149
OCC Stephanie Collins 202.649.6870