Removing Barriers Blog

Compliance Blog: NCUA issues two letters to FCUs
Posted January 08, 2021 by CUNA Advocacy

From CUNA's Compliance Blog

NCUA recently issued two letters to federal credit unions, #21-FCU-01 and #21-FCU-02.  NCUA Letter to Federal Credit Unions #21-FCU-01 pertains to community charter conversions and expansions and replaces previously issued guidance from 2011.  In addition, it provides links to templates to be used when applying for a community charter conversion or expansion (business and marketing plans and the pro forma financial statements).  

NCUA Letter to Federal Credit Unions #21-FCU-02 pertains to the adjusted operating fee schedule for 2021. The operating fee is due in April and is applicable to both natural person and corporate federal credit unions.  For 2021, a federal credit union’s operation fee is based upon the average of total assets, excluding all reported PPP loans, reported for the four most current quarters on the federal credit union’s Call Report (call reports for December 31, 2019, March 30, 2020, June 30, 2020, and September 30, 2020).  The letter includes a link to a calculator to determine the estimated amount of the 2021 operating fee.  Federal credit unions with total assets of $1 million or less continue to be exempt from the operating fee. 

NCUA will combine a federal credit union’s operating fee and capitalization deposit into a single invoice, with payment due no later than Thursday April 15, 2021.    The capitalization deposit needed to maintain the Share Insurance Fund is one percent of insured shares and is based on the insured shares reported on the December 31, 2020 Call Report.   NCUA will notify all federally insured credit unions of any adjustments needed to maintain their Share Insurance Fund capitalization deposits at one percent of insured shares.

NCUA Letter to Federal Credit Unions #21-FCU-01
NCUA Letter to Federal Credit Unions #21-FCU-02