FCUs that Recently Opted In to Low Income Designation

On August 7, NCUA notified 1,003 federal credit unions that they were eligible for a low-income designation. The agency gave these credit unions 30 days to opt-in to this designation.

A low-income credit union is not subject to the member business loan cap of 12.25 percent of assets and can issue secondary capital instruments.

NCUA in September stated that 553 federal credit unions had opted in to the designation; but extended the deadline for another 30 days.

ABA filed a Freedom of Information Act request with NCUA to obtain a list of the credit unions that had opted in.

Below is a link to a spreadsheet that contains the name and other information about the credit unions making this low-income selection as of early October.

NCUA reported that 615 credit unions had made the decision to become low-income designated credit unions.

Twelve credit unions had assets in excess of $1 billion with Michigan State University FCU being the largest credit union opting for low-income designation.

Pennsylvania had the most credit unions to opt-in to this designation with 69, followed by Texas with 50 and New York with 42. A total of 41 states, plus Puerto Rico and Washington D.C., had at least one credit union opt-in to the low-income designation.

One hundred seventy-seven credit unions that opted in to the low-income designation reported holding some member business loans on their books. Three of the credit unions were already grandfathered from the business loan cap.

To review the list, click here.