The National Credit Union Administration (NCUA)liquidated El Paso’s Federal Credit Union (EPFCU) of El Paso, Texas.
NCUA made the decision to liquidate EPFCU and discontinue operations after determining the credit union was insolvent and had no prospect for restoring viable operations.
The credit union reported a loss of almost $63,000 through the first half of 2012. In addition, the credit union reported that 9.29 percent of its $1.4 million in loans were at least 60 days or more past due. However, the credit union was classified as well-capitalized as of June with net worth ratio of 11.38 percent.
EPFCU served 1,035 members and had deposits of approximately $4.4 million, according to the credit union’s June 2012 Call Report.
EPFCU is the ninth federally insured credit union liquidation in 2012.
Read the press release.
Saturday, September 29, 2012
Friday, September 28, 2012
NCUSIF Losses by CU Asset Size, 1998 - 2012
NCUA in its proposed rule regarding the definition of a small credit union published information on the history of failures among credit unions of various asset size categories that caused losses to the National Credit Union Share Insurance Fund (NCUSIF) from 1998 through year-to-date 2012.
Since 1998, there have 262 credit union failures that have resulted in $945.4 million in losses to the NCUSIF.
The following table shows the the number of failures, NCUSIF losses, and average size of loss by asset size group. This information does not include losses from the failure of five corporate credit unions.
Since 1998, there have 262 credit union failures that have resulted in $945.4 million in losses to the NCUSIF.
The following table shows the the number of failures, NCUSIF losses, and average size of loss by asset size group. This information does not include losses from the failure of five corporate credit unions.
Tuesday, September 25, 2012
Landmark CU to Acquire Hartford Savings Bank
Landmark Credit Union said Tuesday it has applied to regulators to acquire Hartford Savings Bank.
New Berlin-based Landmark, which with $2 billion in assets is Wisconsin's largest credit union, said it hopes to acquire the bank by the end of this year.
Hartford Savings Bank has more than $190 million in assets.
Read the story.
New Berlin-based Landmark, which with $2 billion in assets is Wisconsin's largest credit union, said it hopes to acquire the bank by the end of this year.
Hartford Savings Bank has more than $190 million in assets.
Read the story.
Durbin Amendment Hurts Consumers, Community Banks, and Credit Unions
Despite retailers’ $8 billion windfall nearly a year after the Durbin amendment’s implementation, consumers still aren’t getting the lower prices they were promised, bank and credit union trade groups said in a September 21 letter to congressional leaders.
The trade groups also cited a recent Government Accountability Office (GAO) report that shows the many hardships that community banks and credit unions have endured since the amendment went into effect.
“[F]or smaller community banks and credit unions, which were supposed to be ‘exempted’ from the fallout of this legislation, interchange revenue dropped by 5 percent in just the first three months of implementation, and that was before the network exclusivity and routing provisions took effect in April 2012,” they said.
The study also notes that community banks and credit unions are struggling to maintain viable debit programs and some have had to raise fees. “The GAO … concludes that even more harm to community banks and credit unions is likely as the marketplace evolves,” the trade groups said.
They emphasized that any further regulation involving interchange fees is not only unnecessary, but an insult to consumers who have yet to see discounts for using their debit cards. “It’s clear that some retail groups will never be satisfied with any amount of windfall they receive,” the trade groups said. “It’s time to put this epic battle to a close before even more damage is done.”
Read the letter.
The trade groups also cited a recent Government Accountability Office (GAO) report that shows the many hardships that community banks and credit unions have endured since the amendment went into effect.
“[F]or smaller community banks and credit unions, which were supposed to be ‘exempted’ from the fallout of this legislation, interchange revenue dropped by 5 percent in just the first three months of implementation, and that was before the network exclusivity and routing provisions took effect in April 2012,” they said.
The study also notes that community banks and credit unions are struggling to maintain viable debit programs and some have had to raise fees. “The GAO … concludes that even more harm to community banks and credit unions is likely as the marketplace evolves,” the trade groups said.
They emphasized that any further regulation involving interchange fees is not only unnecessary, but an insult to consumers who have yet to see discounts for using their debit cards. “It’s clear that some retail groups will never be satisfied with any amount of windfall they receive,” the trade groups said. “It’s time to put this epic battle to a close before even more damage is done.”
Read the letter.
Monday, September 24, 2012
Annoying Challenge
NCUA has made the user experience of researching the financial information of a credit union more annoying.
You now have to type in a two word challenge before you can download a pdf of a credit union's call report.
My problem is sometimes I can't make out some of the words they want you to type. For example, below is an image of the challenge I got during a research search.
In comparison, the Federal Deposit Insurance Corporation (FDIC) does not require any challenge to access bank call reports.
Come on NCUA, make the user experience of your website more enjoyable and less frustrating.
You now have to type in a two word challenge before you can download a pdf of a credit union's call report.
My problem is sometimes I can't make out some of the words they want you to type. For example, below is an image of the challenge I got during a research search.
In comparison, the Federal Deposit Insurance Corporation (FDIC) does not require any challenge to access bank call reports.
Come on NCUA, make the user experience of your website more enjoyable and less frustrating.
Friday, September 21, 2012
Technology CU to Remain a Credit Union
An overwhelming majority of Technology Credit Union’s members who voted opposed the credit union’s plan to switch to a mutual savings institution charter.
According to the credit union's press release, approximately 25 percent of eligible members voted, with nearly 77 percent of those voting against becoming a mutual savings institution.
Technology Credit Union expressed frustration with the regulatory process and rules governing how a credit union can communicate with its members during the conversion process.
Barbara Kamm, President and CEO of Technology Credit Union stated:
Read the press statement from Technology Credit Union.
According to the credit union's press release, approximately 25 percent of eligible members voted, with nearly 77 percent of those voting against becoming a mutual savings institution.
Technology Credit Union expressed frustration with the regulatory process and rules governing how a credit union can communicate with its members during the conversion process.
Barbara Kamm, President and CEO of Technology Credit Union stated:
“Members at the special meeting voiced frustration, saying we did not make a compelling case for charter change. We, too, are frustrated that we were unable to communicate our views effectively and in the open manner we would have preferred because of the regulatory process and the related rules that govern how credit unions can communicate about charter change with their members.”
Read the press statement from Technology Credit Union.
Thursday, September 20, 2012
Illinois CU Fined for Improper Loan
Moline-based DHCU Community Credit Union was fined $10,000 by the Illinois Department of Financial and Professional Regulations for making an improper unsecured loan to a member of its executive management team.
On September 21, 2011, the credit union made an unsecured loan for $350,000 to a member of its executive management staff.
However, the maximum unsecured loan limit for a credit union under Illinois administrative rules is $40,000.
During an examination in March, the improper loan was identified. The state credit union regulator gave the credit union until May 31, 2012 to divest the loan.
The credit union asked for an extension to June 30, 2012 and the extension was granted.
A follow up examination to see if the loan had been divested found that only a portion of the improper loan had been divested and the remaining balance ($85,000) had been reclassified as "Other Assets."
The credit union failed to remedy the violation and was fined $10,000.
Read the civil penalty order.
On September 21, 2011, the credit union made an unsecured loan for $350,000 to a member of its executive management staff.
However, the maximum unsecured loan limit for a credit union under Illinois administrative rules is $40,000.
During an examination in March, the improper loan was identified. The state credit union regulator gave the credit union until May 31, 2012 to divest the loan.
The credit union asked for an extension to June 30, 2012 and the extension was granted.
A follow up examination to see if the loan had been divested found that only a portion of the improper loan had been divested and the remaining balance ($85,000) had been reclassified as "Other Assets."
The credit union failed to remedy the violation and was fined $10,000.
Read the civil penalty order.
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