Friday, September 20, 2019

Mountain America CU Sponsoring Dixie State University Athletics

Mountain America Credit Union (Sandy, UT) is the exclusive credit union sponsor of Dixie State University Athletics (St. George, UT).

Funds from this multi-year sponsorship will go to new videoboards inside Burns Arena and at Trailblazers Stadium.

In return, $9 billion Mountain America will have its brand prominently displayed at all home athletic games including football, basketball, women's volleyball, men's and women's soccer, softball, and baseball.

The price of the sponsorship agreement was not disclosed.

Read more.

Thursday, September 19, 2019

Problem CUs Rose in 2nd Quarter, But Shares and Assets Fell

The number of problem credit unions edged higher during the second quarter of 2019, according to the National Credit Union Administration (NCUA).

At the end of the second quarter of 2019, there were 204 problem credit unions. In comparison, there were 202 problem credit unions at the end of the first quarter of 2018.

A problem credit union has a composite CAMEL rating of 4 or 5.

Total assets in problem credit unions were $11 billion during the second quarter. Assets in problem credit unions were $11.8 billion at the end of the first quarter.

Shares (deposits) in problem credit unions fell during the second quarter to $9.8 billion from $10.4 billion as of March 2019. At the end of the second quarter, 0.82 percent of total insured shares were in problem credit unions. In comparison, 0.91 percent of total insured shares were in problem credit unions as of March 2019.

Most problem credit unions were small credit unions.

The number of problem credit unions with less than $100 million in assets rose by 8 to 182 during the first quarter. But the number of problem credit unions with more than $100 million in assets fell during the quarter by 6 to 22.

NCUA reported that 89.2 percent of problem credit unions have less than $100 million in assets, while 1.47 percent of problem credit unions have more than $500 million in assets.

Wednesday, September 18, 2019

Sharonview FCU Partners with Topgolf

Sharonview Federal Credit Union (Fort Mill, SC) announced a partnership with Topgolf Entertainment Group.

The $1.6 billion credit union signed a two-year contract with Topgolf venues in Charlotte (NC) and Greenville (SC).

The partnership will include Sharonview branding on the second level of the Charlotte venue and advertising, social media presence and digital signage for both venues.

The price tag of the partnership was not disclosed.

Read the press release.

Tuesday, September 17, 2019

First Commerce CU to Acquire Georgia Bank

First Commerce Credit Union (Tallahassee, FL) announced on September 16 that it would purchase and assume certain assets and liabilities of The Citizens Bank (Nashville, GA).

The purchase has been approved by the boards of directors of both institutions and is expected to close in the second quarter of 2020, subject to customary closing conditions and shareholder and regulatory approvals.

First Commerce CU has $620 million in assets.

The Citizens Bank has $248 million in assets and $212 million in deposits and almost 15,000 customers. The bank has 4 offices -- 2 in Berrien County and 1 each in Cook and Lowndes Counties.

The price of the transaction was not disclosed.

Read more.

Read FAQ.

NCUA Issues Guidance on Secondary Capital Plans

The National Credit Union Administration (NCUA) issued guidance to staff on credit unions offering secondary capital.

NCUA wrote that many low-income credit unions (LICUs) have a record of prudently using secondary capital; however, some planned uses of secondary capital can be complex and involve higher risk.

NCUA re-iterated in its letter to staff that there is no "one size fits all" secondary capital plan for LICUs.

The supervisory letter should help LICUs to better understand the secondary capital plan submission process.

The letter also explains the safety and soundness expectations of the agency regarding secondary capital plans.

Appendix A includes examiner review questions. A LICU should be prepared to discuss these questions with their examiner and address these questions in its written plan.

This letter makes it clear that if a LICU plans to offer secondary capital, the LICU will need to follow NCUA's lead.

Read the letter.

Monday, September 16, 2019

Kitsap CU Buys Naming Rights to High School Outdoor Athletic Complex

Central Kitsap School District entered into a naming rights agreement with Kitsap Credit Union (Bremerton, WA) for the new high school outdoor athletic facilities.

The credit union paid $500,000 for the naming rights of the outdoor athletic complex.

The agreement includes naming rights and advertising space in the athletic facilities for six years.

The outdoor athletic facilities includes football field and track, baseball field, softball field, and tennis courts on the Central Kitsap High School campus.

The outdoor facilities will be known as the “Kitsap Credit Union Athletic Complex.”

The funds will go for new bleachers.

Read more.

NCUA's Harper Says the Agency Lacks Rigor on Consumer Compliance

The National Credit Union Administration’s current method of examining and enforcing consumer protection laws and regulations for institutions with less than $10 billion in assets is “not comparable to our sister agencies,” NCUA Board Member Todd Harper said in a Washington speech on September 10. He noted that bank regulators conduct regular risk-focused consumer compliance exams and assign separate consumer compliance ratings.

“Decades ago, the NCUA conducted full consumer financial protection compliance reviews as part of its examination program, but the agency has increasingly focused on safety and soundness over time,” Harper said. “NCUA’s different approach to consumer financial protection reviews runs counter to the congressionally mandated mission of the Federal Financial Institutions Examination Council.”

Harper noted that more rigorous examination and enforcement of consumer compliance regulations could potentially address principal-agent issues at credit unions by aligning management’s actions with the best interests of members.

Harper also criticized the NCUA board’s recent vote to delay its 2015 risk-based capital rule, cautioning that without it, a potential economic downturn could amplify losses to the National Credit Union Share Insurance Fund. He added that he is concerned about the liquidity of federally insured credit unions.

Read the speech.


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