Friday, August 17, 2012

FCUs Eligible to Opt-in to Low-Income Designation

ABA obtained through a Freedom of Information Act request the list of federal credit unions that were sent a letter by NCUA stating that they are eligible for low-income designation. The NCUA’s action was included in a White House package of drought-relief measures announced last week.

Credit unions receiving a low-income designation are not subject to the member business loan cap, can accept nonmember deposits, and can receive secondary capital.

The following states did not have any federal credit unions eligible to opt-in as a low-income credit union -- Alaska, Delaware, Hawaii, Iowa, Vermont, and Wisconsin.

As of March 2012, there were 16 credit unions with more than $1 billion in assets, which could opt-in to the low-income designation. In addition, 151 of these credit unions were between $100 million and $1 billion in assets.

The largest credit unions was Security Service FCU in San Antonio, Texas with $6.7 billion as of March 2012. The next largest was Police & Fire FCU in Philadelphia, Pennsylvania with $4 billion in assets.

Three federal credit unions were above the 12.25 percent member business loan cap, while another seven federal credit unions had a member business loan to asset ratio between 9.80 percent and 12.25 percent.

To review the full list click here.


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