Monday, August 29, 2016

Royal CU Completes Acquisition of Capital Bank

The $1.8 billion Royal Credit Union (Eau Claire, WI) completed its acquisition of Capital Bank in Saint Paul (MN).

The transition of Capital Bank’s branch took place over the weekend. On August 29, Capital Bank customers became members of Royal CU.

Royal CU assumed approximately $35 million in assets of the former bank.

Read the story.

CU Buys Naming Rights to Aloha Stadium Field

Hawaiian Tel Federal Credit Union (Honolulu, HI) bought the naming rights to the field of Aloha Stadium.

The credit union will pay $275,000 per year as part of the agreement. The deal is for three years.

The field will be officially called the Hawaiian Tel Federal Credit Union Field at Aloha Stadium.

Read the story.

Saturday, August 27, 2016

TV Commercial -- Great Rates for Everyone, No Military Service Required

Pentagon Federal Credit Union (Alexandria, VA) is airing a commercial on CNBC, which makes it clear that the credit union was open to the public.

The commercial has the tagline "Great Rates for Everyone" and ends with "No Military Service Required."

If anyone can do business with Pentagon Federal Credit Union, then why should the credit union retain its tax exemption.

See the commercial.

Friday, August 26, 2016

Another Alabama CU to Acquire a Bank

Family Security Credit Union (Decatur, AL) has agreed to purchase the Bank of Pine Hill, located in Pine Hill, Ala.

The $580-million credit union will substantially purchase all of the assets and assume the deposits of the one-office, $25-million bank.

State and federal bank and CU regulators still need to approve the deal, which is expected to close in the first quarter of 2017.

Clinton Campaign Proposes Reg Relief for Community Banks and CUs

Hillary Clinton's campaign released a list of proposals to reduce the regulatory burden on community banks and credit unions.

Her proposal would exempt community banks and credit unions from regulatory creep. The proposal notes that many regulations, which are intended for larger institutions, end up being applied to community banks and credit unions. Her proposal would ensure that credit unions and community banks are only subject to rules that makes sense for their size and mission.

She proposes to eliminate duplicative examinations for community banks and credit unions. This would include better coordination of examinations between state and federal regulators. Also, she supports greater examination schedule flexibility for healthy credit unions.

Her proposal would expand the safe harbor protections for mortgages made by community banks and credit unions with less than $10 billion in assets, as long as the mortgages have appropriate documentation, do not have excessive fees or interest rates, and are held on the books of community banks and credit unions.

The proposal would streamline the reporting requirement for banks with under $1 billion in assets. I suspect this would be extended to smaller credit unions.

Furthermore, she will designate senior officials at the Department of Treasury to work closely with community banks and credit unions to ensure that economic policy and financial regulations are helping them to succeed and grow.

Read her proposal.

Thursday, August 25, 2016

Oregon State CU Moves into New HQ Building

Oregon State Credit Union (Corvallis, OR) has moved into its new 65,000 square-foot headquarters building.

Among the amenities in the new headquarters building are a courtyard and a locker room with showers for employees.

The $1 billion credit union is pursuing LEED certification for the new building.

Read the story.

Wednesday, August 24, 2016

Semi-Annual Call Reports Are At Odds With An Extended Exam Cycle

Some comment letters regarding the National Credit Union Administration (NCUA) Call Report Modernization proposal are calling for the NCUA to allow some credit unions to file their call reports semi-annually. The recommendations included some combination of asset size with risk profile.

For example,
  • The Credit Union National Association advocated for eliminating odd-quarter reporting for any credit union below the $50 million asset thresholds that report a net worth ratio above 10 percent.
  • Credit Union of Vermont (Rutland, VT) recommended "semi-annual filings of call reports for low risk credit unions."
  • FIG FCU requested that credit unions with strong net worth ratios be allowed to submit call reports semi-annually.
  • Stuart Lynn wrote that credit unions with CAMEL ratings of 1 - 3 should be required to submit their call reports semi-annually. This recommendation will not take place, as it would divulge information about credit unions that are a problem institutions.
However, these recommendations for less frequent filing of call reports are a step backward.

Prior to July 1, 2002, only credit unions with excess of $50 million in assets were required to submit quarterly call reports. In requiring credit unions to file quarterly call reports, the NCUA Board stated in 2002 that the quarterly filings of call reports were a necessary component of its risk-focused examinations and extending the examination cycle. NCUA believed that the benefits from an extended examination cycle outweigh the costs of filing two additional call reports per year.

Clearly, less frequent filing of call reports are at odds with extending the examination cycle.

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