Hudson Valley Federal Credit Union (Poughkeepsie, NY) has agreed to pay $95,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing vehicles owned by seven SCRA-protected service members without first obtaining the required court orders.
An investigation found that prior to August 2014, Hudson Valley FCU did not have any written policies or procedures that addressed the SCRA’s protections against non-judicial auto repossessions.
Under the agreement, Hudson Valley FCU has agreed to provide $10,000 in compensation to each of the six affected service members, plus any lost equity in the vehicle with interest. An additional service member, whose vehicle was repossessed but returned within 24 hours, will receive $5,000. Hudson Valley has also taken steps to repair the credit of the affected service members.
The credit union will pay a civil penalty of $30,000 to the United States.
Also, the credit union has committed to protecting service members’ rights in the future.
Read the press release.
Sunday, November 4, 2018
Saturday, November 3, 2018
203 Low-Income CUs Awarded $2 Million in Grants
The National Credit Union Administration announced that it has awarded $2 million in grants to help 203 low-income credit unions improve digital services and security, increase outreach to underserved communities, and train employees.
Grant awards ranged from $1,300 to $20,000.
The NCUA made awards in three categories:
However, is the awarding of grants to large credit unions, which probably have the resources to fund these initiatives on their own, the best use of these grants?
Read the press release.
Grant awards ranged from $1,300 to $20,000.
The NCUA made awards in three categories:
- Digital services and security: 141 grants totaling $1,251,670;
- Leadership development: 40 grants totaling $350,760; and
- Underserved outreach: 22 grants totaling $397,570.
However, is the awarding of grants to large credit unions, which probably have the resources to fund these initiatives on their own, the best use of these grants?
Read the press release.
Navy FCU's Earnings Top $1 Billion
Navy Federal Credit Union (Vienna, VA) is raking in the money through the first 3 quarters of 2018.
Navy FCU reported a year-to-date net income of $1.1 billion through September 30, 2018. A year ago, the credit union reported net income of $978.5 million.
Below is the Statement of Income for the $95 billion credit union (click on image to enlarge).
Navy FCU reported a year-to-date net income of $1.1 billion through September 30, 2018. A year ago, the credit union reported net income of $978.5 million.
Below is the Statement of Income for the $95 billion credit union (click on image to enlarge).
Friday, November 2, 2018
Evansville Teachers FCU Acquires Small Louisville Bank
Evansville Teachers Federal Credit Union (Evansville, IN) has completed its acquisition of American Founders Bank in Louisville (KY), according to Louisville Business Journal.
The deal closed on November 1 after receiving regulatory approval.
Terms of the deal were not disclosed.
Read the story.
The deal closed on November 1 after receiving regulatory approval.
Terms of the deal were not disclosed.
Read the story.
Banks: Credit Unions Are the Chief Nonbank Competitor for Small Business Loans
A survey on Small Business Lending by the Federal Deposit Corporation found that credit unions were the primary nonbank competitor to banks for small business loans.
According to survey responses, both small and large banks (52.3 and 55.0 percent) reported frequent competition with credit unions with regard to small business lending.
The report defined banks with less than $10 billion in assets as small, and banks with at least $10 billion in assets as large.
According to the report, small banks were more concerned than large banks about credit union competition.
Nearly one-third (34.1 percent) of small banks viewed credit unions as a top three competitor, compared with only 12.2 percent of large banks.
Among small banks, those with less than $250 million in assets were about twice as likely as those with $1 billion to $10 billion in assets to view credit unions as a top three competitor (39.0 percent compared with 19.1 percent).
Only 4.5 percent of small banks stated that a credit union was their number one competitor with respect to small business loans.
For banks that identify credit unions as their number one competitor, the top perceived advantages of credit unions dealt with pricing (85.1 percent) and, to a lesser extent, other elements of loan structure. The report noted that the credit union pricing advantage arises from their preferential tax status.
Read the report.
According to survey responses, both small and large banks (52.3 and 55.0 percent) reported frequent competition with credit unions with regard to small business lending.
The report defined banks with less than $10 billion in assets as small, and banks with at least $10 billion in assets as large.
According to the report, small banks were more concerned than large banks about credit union competition.
Nearly one-third (34.1 percent) of small banks viewed credit unions as a top three competitor, compared with only 12.2 percent of large banks.
Among small banks, those with less than $250 million in assets were about twice as likely as those with $1 billion to $10 billion in assets to view credit unions as a top three competitor (39.0 percent compared with 19.1 percent).
Only 4.5 percent of small banks stated that a credit union was their number one competitor with respect to small business loans.
For banks that identify credit unions as their number one competitor, the top perceived advantages of credit unions dealt with pricing (85.1 percent) and, to a lesser extent, other elements of loan structure. The report noted that the credit union pricing advantage arises from their preferential tax status.
Read the report.
Thursday, November 1, 2018
North Island Buys Naming Rights to San Diego Amphitheatre
North Island Credit Union (San Diego, CA) bought the naming rights to San Diego's largest outdoor venue.
The venue will change its name immediately from Mattress Firm Amphitheatre to North Island Credit Union Amphitheatre.
The amphitheatre seats almost 20,000 people.
The naming rights deal is for 10-years.
The price tag of the naming rights agreement was not disclosed.
Read the story.
The venue will change its name immediately from Mattress Firm Amphitheatre to North Island Credit Union Amphitheatre.
The amphitheatre seats almost 20,000 people.
The naming rights deal is for 10-years.
The price tag of the naming rights agreement was not disclosed.
Read the story.
Taxi Medallion Participation Loans Contribute to YTD Loss of $4.1 Million at Quorum FCU
Taxi medallion participation loans continue to adversely impact the financial performance of Quorum Federal Credit Union (Purchase, NY).
Quorum Federal Credit Union reported a year-to-date (YTD) loss of $4.1 million thru the end of the third quarter of 2018. The loss is up from $493,521 as of June 2018.
The third quarter loss was driven by a large increase in provision for loan and lease losses, which increased by $6.5 million during the third quarter to $15.24 million.
Delinquent loans increased by 6.3 percent during the third quarter to almost $43.9 million at the end of September 2018. As of September 30, 6.09 percent of the credit union's loans were 60 days or more past due.
Almost 71 percent of the delinquent loans ($31 million) were nonmember commercial loans not secured by real estate, which presumably were taxi medallion participation loans.
The credit union reported 58.51 percent of these nonmember commercial loans not secured by real estate were delinquent.
Quorum further reported that troubled debt restructured (TDR) commercial loans not secured by real estate of almost $23.7 million at the end of the third quarter of 2018. Approximately 34.4 percent of the TDR commercial loans were 60 days or more past due.
The credit union reported net charge-offs of $11.4 million as of September 2018, up from $10 million as of June 2018. As of September 2018, net charge-offs from commercial loans not secured by real estate were $6.8 million, of which $5.3 were TDR commercial loans.
Due to the third quarter loss of almost $3.6 million, the credit union's net worth fell to $63.2 million. Quorum's net worth ratio fell by 44 basis points during the third quarter to 7.61 percent, but was only down 4 basis points from a year ago.
However, the increase in provision for loan and lease losses caused the credit union's allowance for loan and lease losses to grow to almost $38 million, up from $32.9 million as of June 2018. As a result, the coverage ratio rose to 86.56 percent as of September 2018 from 79.63 percent on June 30, 2018.
Quorum Federal Credit Union reported a year-to-date (YTD) loss of $4.1 million thru the end of the third quarter of 2018. The loss is up from $493,521 as of June 2018.
The third quarter loss was driven by a large increase in provision for loan and lease losses, which increased by $6.5 million during the third quarter to $15.24 million.
Delinquent loans increased by 6.3 percent during the third quarter to almost $43.9 million at the end of September 2018. As of September 30, 6.09 percent of the credit union's loans were 60 days or more past due.
Almost 71 percent of the delinquent loans ($31 million) were nonmember commercial loans not secured by real estate, which presumably were taxi medallion participation loans.
The credit union reported 58.51 percent of these nonmember commercial loans not secured by real estate were delinquent.
Quorum further reported that troubled debt restructured (TDR) commercial loans not secured by real estate of almost $23.7 million at the end of the third quarter of 2018. Approximately 34.4 percent of the TDR commercial loans were 60 days or more past due.
The credit union reported net charge-offs of $11.4 million as of September 2018, up from $10 million as of June 2018. As of September 2018, net charge-offs from commercial loans not secured by real estate were $6.8 million, of which $5.3 were TDR commercial loans.
Due to the third quarter loss of almost $3.6 million, the credit union's net worth fell to $63.2 million. Quorum's net worth ratio fell by 44 basis points during the third quarter to 7.61 percent, but was only down 4 basis points from a year ago.
However, the increase in provision for loan and lease losses caused the credit union's allowance for loan and lease losses to grow to almost $38 million, up from $32.9 million as of June 2018. As a result, the coverage ratio rose to 86.56 percent as of September 2018 from 79.63 percent on June 30, 2018.
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