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NCUA Breaks Down Strong 1Q Results By State

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ALEXANDRIA, Va. (6/5/13)--First quarter 2013 credit union financial results, which represented the strongest quarter membership growth in credit union history, are broken down state-by-state in a new National Credit Union Administration Quarterly U.S. Map Review.

The  first quarter results, released last week by teh NCUA, reported membership growth of more than 800,000 new members and the fastest first-quarter loan growth for federally insured credit unions in five years. Credit Union National Association President/CEO Bill Cheney said the membership numbers reflect "a real cultural shift that is taking place.

"Not only do credit unions generally offer better rates and lower fees, they have powerful appeal in today's environment where so many people are put off by big conglomerates and are turning instead to locally based, community-oriented businesses," he said.

This shift was strongest in the U.S. Virgin Islands, where membership increased by 18.5%. Idaho and Virginia led the mainland U.S., reporting membership increase rates of 7.5% and 7.4%, respectively.

Fourteen states, including Georgia and Washington, saw credit union membership growth rates of greater than 3%. Most states saw their credit union membership grow by at least 1%.

Loan growth was strongest in Idaho and Oklahoma, with credit unions in those states reporting combined loan volume increases of 12.4% and 12.2%, respectively, over the totals reported in the first quarter of 2012. Loans declined in Nevada, the Virgin Islands, Hawaii, Montana, and Arkansas, led by Nevada's 8.8 percent decline, the NCUA said.

Asset growth remained strong in Iowa and North Dakota, as consistent growth continued from 2012 fourth quarter into the first quarter of 2013. Growth was similarly strong in Idaho and Virginia, with those states also posting asset growth rates of 8% or above. Iowa had the fastest growth in total assets during the quarter, posting a 10.4% increase.

Nevada was the only state to post a decline in total assets during the first quarter of 2013, reporting a 3.2% decline.

Share and deposit growth and delinquency rates are also addressed in the NCUA release.

For the NCUA maps and an agency release, use the resource link.

NEW: Bachus Agrees To Co-Sponsor CU Supp Cap Bill

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WASHINGTON (6/5/13, UPDATED 1:40 p.m.. ET)--Rep. Spencer Bachus (R-Ala.), immediate past chair of the House Financial Services Committee, has agreed to co-sponsor a credit union supplemental capital bill, the Capital Access for Small Businesses and Jobs Act  (H.R. 719).

The bill would allow well-capitalized credit unions to match a growing deposit base from a growing membership with capital from sources other than retained earnings--which currently is the only type of capital that counts toward capital ratio. It was introduced in February by Rep. Pete King (R-N.Y.) and already has 29 co-sponsors, prior to Bachus signing on.

The Credit Union National Association  strongly backs the bill and the legislation has regulators' support as well.

Last month, National Credit Union Administration Chair Debbie Matz wrote to lawmaker King, and his chief co-sponsor, Rep. Brad Sherman (D-Calif.), to say that if the U.S. Congress enacts the capital-access bill, her agency will "promptly propose the necessary rule changes required for implementation."

Matz wrote, "As we witnessed during the recent economic crisis, maintaining sufficient capital is critical at time of economic stress...Your legislation would provide credit unions with an additional tool to promote sufficient capital--even under adverse economic conditions--and ensure that healthy credit unions would no longer be forced to turn away deposits in order to protect their net worth."

CUNA: Concerns Linger About CFPB Small Servicer Exemption

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WASHINGTON (6/5/13)--While it supports some of the Consumer Financial Protection Bureau's proposed mortgage servicing changes, the Credit Union National Association in a comment letter said the agency has more latitude to exempt small servicers from the servicing requirements and should use it.

The comment letter follows bureau-proposed amendments to provisions regarding the small servicer exemption under Regulation X, Real Estate Settlement Procedure Act, eligibility for determining qualified mortgage status under Regulation Z, Truth in Lending Act, and other issues.

"The proposed changes reflect concerns that CUNA has raised with the CFPB, and we support the agency's efforts to factor credit unions' issues into its rule makings," CUNA Deputy General Counsel Mary Dunn wrote.

She particularly noted the CFPB's proposed change under section 1026.41(e)(iii)(A) of Reg Z that would allow credit unions and others to exclude mortgage loans they voluntarily service for nonaffiliated entities when determining whether the small servicer exemption applies "is an important change."

However, Dunn wrote, credit unions and CUNA are concerned by portions of the proposal that would grant exemptions to some credit union servicers based on the number of loans they actually service, but disqualify them from this exemption when they utilize a third party subservicer to service even one of their loans if the third party services more than 5,000 loans.

"Being able to use a subservicer facilitates a credit union's ability to make loans. We are hopeful that the CFPB will give this issue further consideration and allow servicers that predominately service their own loans but that also use a subservicer for some, say up to 25% of their loans, to continue to be exempt from key provisions of the servicing rule," Dunn wrote.

CUNA plans to discuss this issue with the CFPB in the future.

For the full comment letter, use the resource link.

Ohio Catholic CU Can Now Serve State's Catholics

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GARFIELD HEIGHTS, Ohio (6/5/13)--Ohio Catholic FCU, Garfield Heights, Ohio, is extending its field of membership beyond the Cleveland Catholic Diocese it has served since 1954 to reach all Catholic dioceses in that state.

The credit union, currently with 16,500 member, $154-million-in-assets, has announced it has received National Credit Union Administration approval for the larger membership base.

Ohio Catholic's  CEO Todd Turner said in a statement posted to the credit union's website, "Our ongoing goal is to help members of the Catholic community achieve their financial goals and provide a faith-based experience every time members do business with us."

Turner added, "This is an indication of the inherent financial strength of our credit union. We are very proud of this recognition and the opportunity it provides."

Even before the new charter approval, Ohio Catholic FCU was the largest faith-based credit union in Ohio.

Need an NCUA 1944 Annual Report? Now Available Online

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ALEXANDRIA, Va. (6/5/13)--Aspiring credit union historians can trace the movement's development from the 1.3 million members and 3,815 institutions reported in 1944 to today's far higher totals. The National Credit Union Administration announced yesterday that it has made all annual reports since that year available online.

Click to view larger image The NCUA's archived 1944 credit union report gives a snapshot of the industry's early years, including this map. (NCUA image)


The annual reports cover nearly seventy years of credit union results. The NCUA on Tuesday said it released the archived reports "as part of its ongoing efforts to increase transparency."

The 1944 report, which was prepared by the Federal Deposit Insurance Corp.,  details the first years of the credit union movement following 1934's passage of the Federal Credit Union Act, and notes the rapid growth of credit unions as "the merits of the credit union plan were quickly recognized." It also addresses the issues that many credit union leaders faced in a wartime economy.

Total assets held by individual credit unions in 1944 ranged from as little as $100 to as much as $3.3 million.

The annual reports serve as the agency's official report to the president and Congress, and cover NCUA and credit union operations. The NCUA noted that many of these reports include audited financial statements for the agency's four permanent funds: the National Credit Union Share Insurance Fund, the NCUA Operating Fund, the Central Liquidity Facility and the Community Development Revolving Loan Fund.

For more on the reports, use the resource links.

CUs Can Still Sign Up For Today's Pressing Issues Audio Conference

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WASHINGTON (6/5/13)--Credit unions can sign up until 2 p.m. ET today for the Credit Union National Association's second "Pressing Regulatory and Compliance Issues Audio Conference" of the year--offered free to affiliated credit unions.

Today's program will feature legislative and regulatory developments. Topics will include:

  • Tax reform and the threat to the credit union tax status;
  • CUNA's efforts in the U.S. Congress to provide regulatory relief to credit unions;
  • The Consumer Financial Protection Bureau's mortgage lending regulations; the status of regulations that become effective June 1; prohibition on financing credit life/disability, debt cancellation products' prohibition on arbitration clauses; escrow accounts for higher-priced mortgages; as well as the status of regulations to be effective January 2014;
  • A Financial Accounting Standards Board proposal on credit losses; and
  • National Credit Union Administration issues, such as prompt corrective action, the new proposal on derivatives authority and a quick overview of NCUA actions expected in the second half of 2013.
Use the resource link for registration and more information.