Kressman Named Acting General Counsel, McKenna Retires

ALEXANDRIA, Va. (Nov. 20, 2019) – National Credit Union Administration Chairman Rodney E. Hood today announced that Frank Kressman will serve as the agency’s Acting General Counsel.

“Yesterday morning, Mike McKenna shared his decision to retire after over 30 years of service to the NCUA,” said Chairman Hood. “During this initial transition, Frank Kressman will serve as the Acting General Counsel while we continue to conduct our search for the next General Counsel of the NCUA.”

The NCUA Board approved Kressman’s selection unanimously. 

Kressman previously served as a Deputy General Counsel to the NCUA. He joined the agency in 1998 as a staff attorney.

Eastern Financial Florida Credit Union Placed In Conservatorship

Eastern Financial Florida Credit Union is Open and Operating; Member Accounts are Safe and Federally Insured 

April 24, 2009, Alexandria, Va. – The National Credit Union Administration (NCUA) today assumed control of the operations of Eastern Financial Florida Credit Union, a state-chartered, federally insured credit union headquartered in Miramar, Florida.

The Florida Office of Financial Regulations, Bureau of Credit Union Regulation appointed NCUA as conservator today after placing Eastern Financial Florida Credit Union into conservatorship. NCUA has assumed control of the credit union and has appointed officials from Space Coast Credit Union of Melbourne, Fla., to temporarily manage Eastern Financial Florida Credit Union’s day-to-day operations. NCUA’s goal is to continue credit union service to the members and ensure safe and sound credit union operations.

Service continues uninterrupted at Eastern Financial Florida Credit Union and members are free to make deposits, access funds, make loan payments and use share drafts. While the credit union was placed into conservatorship because of declining financial condition, the decision to conserve a credit union enables the institution to continue normal operations with expert management in place.

Member accounts are insured to at least $250,000 coverage provided by the National Credit Union Share Insurance Fund, a federal fund backed by the full faith and credit of the U.S. Government. Members with questions about their insurance coverage can contact NCUA’s Share Insurance Call center at 1-800-755-1030, Press 1, Monday through Friday during normal business hours.  

Eastern Financial Florida Credit Union was originally chartered in 1937 and today serves Broward, Miami-Dade, Palm Beach, Hillsborough, Pinellas counties and the Jacksonville area. The credit union has approximately $1.6 billion in assets and just over 200,000 members.

First Delta Federal Credit Union Placed Into Conservatorship

The credit union is open, operating and serving its members

Alexandria, VA, October 23, 2009 – The National Credit Union Administration (NCUA) today assumed control of operations at First Delta Federal Credit Union of Marks, Mississippi.  NCUA’s goal is to continue credit union service to the members and ensure safe and sound credit union operations.

Service to First Delta Federal Credit Union’s 5,500 members will continue uninterrupted.  Members can continue to conduct normal financial transactions – deposit and access funds, make loan payments and use share drafts. First Delta Federal Credit Union is a full service credit union, with assets of $5 million, that provides financial service to people residing in Quitman, Panola, Tallahatchie and Coahoma counties in the state of Mississippi.

The decision to conserve a credit union enables the institution to continue normal operations with expert management in place correcting previous service and operational weaknesses.

Member deposits are safe. Their accounts are insured up to at least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), a federal fund managed by NCUA and backed by the full faith and credit of the U.S. Government.

The Federal Credit Union Act authorizes the NCUA Board to appoint itself conservator when necessary to conserve the assets of a federally insured credit union, protect members’ interests or protect the NCUSIF. 

NCUA Charters “Bridge” Corporate Credit Unions

Two new corporates will assume existing business, ensure continuity in system

ALEXANDRIA, Va. (October 5, 2010) – The National Credit Union Administration today announced the creation of two bridge corporate credit unions to assume operations of U.S. Central Corporate Federal Credit Union (US Central) and Western Corporate Federal Credit Union (WesCorp).

These actions, which were originally announced in conjunction with the unveiling of NCUA’s Corporate System Resolution Plan on September 24, comprise an important next phase in the transition of corporate credit unions currently under NCUA conservatorship.

The newly created institutions will be known as U.S. Central Bridge Corporate Federal Credit Union and Western Bridge Corporate Federal Credit Union. 

“The creation of bridge corporates is an important interim step toward an orderly transition which will allow consumer credit unions to exercise real choice about the future of the corporate system,” stated NCUA Chairman Debbie Matz.

NCUA is implementing a “Good Bank/Bad Bank” model to facilitate the corporate resolution process. Bridge corporate credit unions (“good banks”) are chartered by the NCUA Board to purchase and assume “good” assets and member share deposits from the conserved corporate credit unions (“bad banks”). Bridge corporate credit unions will be highly liquid and operated to ensure stability and minimize disruption of service to member credit unions. 

Other bridge corporate operational highlights include:

  • No new service offerings, except in instances where there is a need to enhance the security and functionality of existing services;
  • Fields of membership will be identical to those of the conserved credit unions they replace;
  • New loans will be provided primarily for settlement purposes, and existing loans will continue to be serviced;
  • Bridge corporate balance sheets will consist of assets and liabilities sufficient to sustain operational activities of the bridge corporate;
  • Payments and settlement activities will be the focus of the bridge corporatesFunding will not be secured to build an asset portfolio above this stated purpose;
  • Bridge corporates will not accept new members; and
  • In the interest of continuity of service at bridge corporates, critical staff will be encouraged to transition to the bridge corporate.

NCUA is committed to operating bridge corporates in a way that minimizes disruption of services provided to members. However, the bridge corporate cannot operate indefinitely. Bridge leadership will consult with members to develop a viable long-term plan that would enable the delivery of services transferring the bridge corporate’s operations to a newly chartered corporate credit union, or selling operations to another entity capable of providing uninterrupted services.

Should a bridge corporate’s members decide not to support the plan or another entity not be identified, NCUA is committed to operating the bridge corporate for sufficient time so that members can find individual solutions. This process could take up to 24 months.

NCUA Charters Additional “Bridge” Corporate FCUs

New corporates will assume existing business, ensure continuity

November 8, 2010, Alexandria, Va. – The National Credit Union Administration today announced the creation of two new bridge corporate credit unions assuming the operations of Members United Corporate of Warrenville, Ill., and Southwest Corporate of Plano, Texas. 

These actions, which were originally announced in conjunction with the unveiling of NCUA’s Corporate System Resolution Plan on September 24, comprise the next phase in transition of corporate credit unions currently under NCUA conservatorship.   

 The newly created institutions will be known as Members United Bridge Corporate Federal Credit Union and Southwest Bridge Corporate Federal Credit Union. 

 NCUA has implemented a “Good Bank/Bad Bank” model to facilitate the corporate resolution process. Bridge corporate credit unions (“good banks”) are chartered by the NCUA Board to purchase and assume “good” assets and member share deposits from the conserved corporate credit unions (“bad banks”). Bridge corporate credit unions will be highly liquid and operated to ensure stability and minimize disruption of service to member credit unions. 

 Other bridge corporate operational highlights include:

  • No new service offerings, except in instances where there is a need to enhance the security and functionality of existing services;
  • Fields of membership will be identical to those of the conserved credit unions they replace;
  • New loans will be provided primarily for settlement purposes, and existing loans will continue to be serviced;
  • Bridge corporate balance sheets will consist of assets and liabilities sufficient to sustain operational activities of the bridge corporate;
  • Payments and settlement activities will be the focus of the bridge corporates. Funding will not be secured to build an asset portfolio above this stated purpose;
  • Bridge corporates will not accept new members; and
  • In the interest of continuity of service at bridge corporates, critical staff were retained at the bridge corporate.

 NCUA is committed to operating bridge corporates in a way that minimizes disruption of services provided to members. However, the bridge corporate cannot operate indefinitely. Bridge leadership will consult with members to develop a viable long-term plan that would enable the delivery of services transferring the bridge corporate’s operations to a newly chartered corporate credit union, or selling operations to another entity capable of providing uninterrupted services. 

 Should a bridge corporate’s members decide not to support the plan or another entity not be identified, NCUA is committed to operating the bridge corporate for sufficient time so that members can find individual solutions. This process could take up to 24 months. 

Financial Regulators Revise Business Continuity Management Booklet to Stress to Examiners the Value of Resilience to Avoid Disruptions to Operations

The members of the Federal Financial Institutions Examination Council (FFIEC) today emphasized that examiners understand how management of banks and other regulated entities, including depository financial institutions, nonbank financial institutions, bank holding companies, and third-party service providers, have prepared their operations to avoid disruptions and to recover services.

The updated Business Continuity Management booklet focuses on enterprise-wide approaches that address technology, business operations, testing, and communication strategies critical to the continuity of the business. The booklet describes principles and practices for information technology (IT) and operations designed to achieve safety and soundness, consumer financial protection, and compliance with applicable laws, regulations, and rules.

As the booklet makes clear, business continuity focuses on more than just the planning process to recover operations after an event. Business continuity also includes the continued maintenance of systems and controls for the resilience and continuity of operations. Business continuity is an integral part of the risk management life cycle of an entity’s systems, processes, and operations.

The Business Continuity Management booklet describes principles to help examiners determine whether management addresses risks related to the availability of critical financial products and services. The booklet uses common terms and builds on widely used standards to facilitate effective supervision. The updated examination procedures will also help examiners assess the adequacy of an entity’s overall business continuity management program.

The Business Continuity Management booklet is part of the FFIEC Information Technology Examination Handbook (IT Handbook) and replaces the Business Continuity Planning booklet issued in February 2015.

The IT Handbook is available at http://ithandbook.ffiec.gov/.

Attachment:
Business Continuity Management booklet (PDF)

Agency Contact Phone
Federal Reserve Darren Gersh 202.452.2955
CFPB Marisol Garibay 202.435.5160
FDIC Julianne Breitbeil 202.898.6895
NCUA Ben Hardaway 703.518.6333
OCC Stephanie Collins 202.649.6870
SLC Jim Kurtzke 202.728.5733

St. Paul Croatian Federal Credit Union Placed In Conservatorship

St. Paul Croatian Federal Credit Union is Open and Operating; Member Accounts are Safe and Federally Insured.

April 23, 2010, Alexandria, Va. — The National Credit Union Administration (NCUA) today assumed control of the operations of St. Paul Croatian Federal Credit Union, a federally chartered and federally insured credit union headquartered in Eastlake, Ohio.

Service continues uninterrupted at St. Paul Croatian Federal Credit Union. Members are free to make deposits, access funds, make loan payments and use share drafts. While the credit union was placed into conservatorship because of declining financial condition, the decision to conserve a credit union enables the institution to continue normal operations with expert management in place.

Member accounts are insured to at least $250,000 coverage provided by the National Credit Union Share Insurance Fund, a federal fund backed by the full faith and credit of the U.S. Government. Members with questions about their insurance coverage can contact NCUA’s Share Insurance Call Center at 1-800-755-1030, Press 1, Monday through Friday during normal business hours.

St. Paul Croatian Federal Credit Union was originally chartered in 1943 and serves members of St. Paul’s Croatian Parish in Cleveland, Ohio, spouses of persons who died while in the field of membership of this credit union, employees of the credit union, persons retired as pensioners or annuitants from the credit union, members of their immediate families, and organizations of such persons. The credit union has approximately $238.8 million in assets and almost 5,400 members.

St. Paul Croatian Federal Credit Union is the second federally insured credit union conserved in 2010.

Family First Federal Credit Union Placed Into Conservatorship

Family First is open, operating and serving its members

July 30, 2010 Alexandria, Va. – The National Credit Union Administration (NCUA) today assumed control of operations at Family First Federal Credit Union of Orem, Utah. NCUA’s goal is to continue credit union service to the members and ensure safe and sound credit union operations.

Service to Family First Federal Credit Union’s 19,476 members will continue uninterrupted. Members can conduct normal financial transactions – deposit and access funds, make loan payments and use share drafts. Family First Federal Credit Union is a full service credit union, with assets of $139.5 million, that provides financial service to people residing in Utah County, Utah.

Family First Federal Credit Union was placed into conservatorship due to declining financial condition. The credit union is not adequately capitalized under standards set forth in the Federal Credit Act, and has earnings insufficient to enable it to continue under present management. The credit union’s problems stemmed from problems in its loan portfolio.

The decision to conserve a credit union enables the institution to continue normal operations with expert management in place correcting previous service and operational weaknesses.

Member deposits are safe. Their accounts are insured up to at least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), a federal fund managed by NCUA and backed by the full faith and credit of the U.S. Government.

The Federal Credit Union Act authorizes the NCUA Board to appoint itself conservator when necessary to conserve the assets of a federally insured credit union, protect members’ interests or protect the NCUSIF.

New Hope Community Development Federal Credit Union Placed In Conservatorship

New Hope Community Development Federal Credit Union is Open and Operating; Member Accounts are Safe and Federally Insured

July 22, 2009, Alexandria, Va. — The National Credit Union Administration (NCUA) today assumed control of the operations of New Hope Community Development Federal Credit Union, a federally chartered and federally insured credit union headquartered in Birmingham, Alabama.

Service continues uninterrupted at New Hope Community Development Federal Credit Union and members are free to make deposits, access funds, make loan payments and use share drafts. While the credit union was placed into conservatorship because of declining financial condition, the decision to conserve a credit union enables the institution to continue normal operations with expert management in place.

Member accounts are insured to at least $250,000 coverage provided by the National Credit Union Share Insurance Fund, a federal fund backed by the full faith and credit of the U.S. Government. Members with questions about their insurance coverage can contact NCUA’s Share Insurance Call Center at 1-800-755-1030, Press 1, Monday through Friday during normal business hours.

New Hope Community Development Federal Credit Union was originally chartered in 1996 and serves the West End community of Birmingham, Alabama. The credit union has approximately $1.3 million in assets and just over 900 members.

The National Credit Union Administration (NCUA) is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of over 89 million account holders in all federal credit unions and the vast majority of state-chartered credit unions. NCUA is funded by credit unions, not tax dollars.

NCUA’s Hood: “Fresh Thinking” can Help Credit Unions Support Small Business, Communities

Chairman Joins Roundtable on Building Sustainable Local Economies

GLENN DALE, Md. (Nov. 8, 2019) – Credit unions should be allowed to make the most of their resources to help small businesses and local economies grow and thrive, National Credit Union Administration Chairman Rodney E. Hood said today.

“Financial institutions like credit unions provide the oxygen small businesses need when they make investments through lending,” Chairman Hood said. “To do this, we need to bring fresh thinking to the table. How can we build a regulatory system that’s effective without being excessive? How can we stimulate more commercial lending to support more growth in the small business sector?”

Chairman Hood spoke to a small-business symposium, “Banking on Your Victory,” hosted by the Reid Temple AME Church, and he participated in a round-table discussion on local economic development. The text of the Chairman’s remarks is available online here.

Partnerships across the public and private sectors, business and non-profits, and religious and community organizations are powerful levers for community development, Hood said.

“I share the vision of community, of motivating one another to help one another,” he said. “Through the course of my career, which began as a missionary, I have believed that bringing people together to share resources, ideas, and talents is the best way to build strong, sustainable communities. Government entities can do plenty of things to help construct an environment that’s more conducive to growth, such as regulatory reforms, grants and loans, and creating opportunity zones.”

Listening to communities and hearing what they need, Hood said, is essential.

“The institutions we oversee have their fingers on the pulse of what works best in their communities,” he said. “So let’s give them the tools they need to do that.”