Friday, January 20, 2017

Q4 2016 NYC Taxi Medallion Prices Averaged Almost $520,000

New York City taxi medallion prices averaged almost $520 thousand during the fourth quarter of 2016, according to information from the New York City Taxi and Limousine Commission.

However, this average taxi medallion price was based upon a small sample.

There were six transactions during the three month period with a non-zero value. Three transfers were foreclosures and two involved estate transfers.

Medallion transfer prices ranged from a high of $600,000 to a low of $387,717.60.

This would indicate that credit unions with outstanding New York City taxi medallion loans will probably need to reduce the outstanding principal on these loans.

Wednesday, January 18, 2017

Navy FCU Earnings Surpass $1 Billion for 2016

Navy Federal Credit Union (Vienna, VA) reported a record net income of $1.198 billion for 2016.

Navy FCU is the first U.S. credit union to break the $1 billion profit milestone.

Navy FCU's 2016 earnings are up approximately 37 percent from a year ago.

The $79.85 billion credit union reporting almost $5.4 billion in revenues for 2016. Navy had total operating expenses of $2.3 billion and non-operating expenses of $1.6 billion. Navy paid almost $432 million in dividends.

Navy's financial results show that the credit union is very profitable and it could easily afford to pay corporate income taxes.

Read Navy Federal Credit Union's Statement of Income.

Tuesday, January 17, 2017

Coalition of Conservative Groups Ask Incoming Administration to Preserve NCUA's Business Loan Rule

In a letter to President-Elect Donald Trump and Vice President-Elect Mike Pence, a coalition of conservative, libertarian, and free market groups urged them to preserve the new member business lending rule of the National Credit Union Administration (NCUA).

The groups stated that the final rule would deregulate business lending for credit unions. The rule would exclude business loans to non-members from aggregate member business loan cap of 12.25 percent of assets and reduce many burdensome paperwork requirements for credit unions.

The groups requested that President-Elect Trump and Vice President-Elect Pence to not rescind the rule.

In addition, the group urged the incoming Administration to support legislation that would further deregulate business lending at credit unions.

It is unfortunate that these groups have decided to side with government subsidized credit unions to the detriment of all other taxpaying financial institutions.

The signatories of the letter include Competitive Enterprise Institute, American Legislative Exchange Council (ALEC), Americans for Tax Reform, Campaign for Liberty, Center for Freedom and Prosperity, FreedomWorks, Frontiers of Freedom, Grassroot Hawaii Action, Inc., Independent Women's Voice, National Federation of Republican Assemblies, National Taxpayers Union, R Street Institute, Small Business & Entrepreneurship Council, and Taxpayers Protection Alliance.

Read the letter.

324 CUs Borrowed from Fed's Discount Window, Q4 2014

In the fourth quarter of 2014, 324 credit unions borrowed from the Federal Reserve's Discount Window.

In comparison, 179 credit unions borrowed from the Federal Reserve's Discount Window during the third quarter of 2014.

The National Credit Union Administration required any federally-insured credit union with at least $250 million in assets to establish access to either the Federal Reserve's Discount Window or the Central Liquidity Facility. NCUA expected that these credit unions would test their access to these two contingent emergency sources of liquidity by the end of 2014.

These credit unions borrowed 392 times from the Federal Reserve's Discount Window and borrowed an aggregate $399.8 million from the Discount Window.

The average size of a loan from the Discount Window was slightly more than $1 million, while the median loan size was $10,000.

The largest amount borrowed was $45 million by Chevron FCU (Oakland, CA).

The vast majority of the borrowing was from the Federal Reserve's primary credit program. Two credit unions access the Federal Reserve's seasonal credit program, while one credit union borrowed from the secondary credit program.

Primary credit is a lending program available to depository institutions that are in generally sound financial condition. Secondary credit is available to depository institutions that are not eligible for primary credit. The seasonal credit program assists small depository institutions in managing significant seasonal swings in their loans and deposits.

The Federal Reserve is required by law to disclose with a two year delay information on borrowings from the Discount Window.

Sunday, January 15, 2017

BECU Buys Eight Buildings in Tukwila Office Park for $78 Million

Boeing Employee Credit Union (BECU) has purchased eight buildings at the Gateway Corporate Center office and industrial park in Tukwila for $78 million.

BECU built its corporate headquarters at Gateway Corporate Center in 1990.

The new purchase will allow the almost $15.7 billion BECU to increase its holdings in the office park by 376,000 square feet to 589,000 square feet at the office park.

An earlier version of this post stated the purchase price was not disclosed.

Read the story.

Read another story.

Friday, January 13, 2017

Navy FCU Unveils Major Expansion Plan to Meet Robust Growth Targets

Virginia Governor Terry McAuliffe on January 11 announced that Navy Federal Credit Union (Vienna, VA) will invest $100 million to expand its Winchester operations center in Frederick County.

The project will nearly double Navy Federal’s workforce employee-count and physical square footage in Frederick County. Virginia.

This expansion in its operation center is meant to support Navy Federal Credit Union's aggressive growth plan. The $79 billion credit union plans to to grow to $120 billion in assets in five years and expand its membership from 6.5 million members to more than 10 million, according to Washington Business Journal.

Governor McAuliffe approved a $2 million grant from the Commonwealth Opportunity Fund to assist Frederick County with the project. The Governor also approved $4 million in funds from the Virginia Economic Development Incentive Grant (VEDIG).

While $6 million in public funds will be used to support Navy's investment in the Commonwealth of Virginia, Navy FCU does not pay any state corporate income taxes as it is exempt from state taxation.

Read the Governor's press release.

Thursday, January 12, 2017

NCUA's Supervisory Priorities for 2017

The National Credit Union Administration sent a letter to credit unions outlining its supervisory priorities this year.

The letter identified six areas of supervisory focus:
  • Cybersecurity;
  • Bank Secrecy Act compliance;
  • Internal controls and fraud prevention;
  • Interest rate and liquidity risk;
  • Commercial lending; and
  • Consumer compliance, especially changes to the Military Lending Act.
Read the letter.


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