First-responder Credit Union Newsroom

www. NCOFCU .org   Happy Father's Day Whether it's your father, step-father, uncle, brother, grandfather, or anyone you look up to in a fatherly way. Fathers Day is the perfect opportunity for you to let your father figures, both past, and present, know that they are super special for you.   ...

CUNA and Leagues wrote to NCUA Friday encouraging the agency to pursue additional tools to aid credit unions facing Prompt Corrective Action (PCA) and other capital challenges. CUNA and the Leagues thanked NCUA for the Interim Final Rule that provides some relief, but highlights that Congressional action is needed for additional flexibility. “This crisis has exposed what has been has been clear for a long time: NCUA lacks the statutory flexibility it needs to help credit unions navigate certain capital situations induced by natural disasters, public health crises, other emergencies, and the governmental responses thereto,” the letter reads, adding that NCUA should “actively engage” Congress to pursue changes to the Federal Credit Union Act. The letter notes that it’s the “rigid requirements and prohibitions” regarding PCA in Section 1790d of the Federal Credit Union Act that “severely hamper the agency’s ability to assist credit unions.” “That is why, last July, as Congress considere...

  ORLANDO, Fla.–NCUA Board Member Rodney Hood told credit unions here that if there is a lesson from the last year it was summed up in a meeting breakout session title: “Transitioning from Risk to Resilience.” “That title stood out to me, because in five simple words it sums up the journey we’ve taken since March 2020, doesn’t it?” Hood said in comments to the League of Southeastern Credit Unions’ annual meeting here. After referencing some of the events since the pandemic shut down the economy, Hood told attendees, “Our nation has faced many challenges in our lifetimes, but few compare to what was unfolding before our eyes this time last year.” Hood said the “resilience” of credit unions can be seen in the latest data, with federally insured credit unions reporting net income growth of $11.3 billion, an increase of 134.9% over the year ending in the first quarter of 2021 (a figure boosted by CUs reducing their allowances for loan losses). The Reality The good news and the desire...

The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals. Progress on vaccinations has reduced the spread of COVID-19 in the United States. Amid this progress and strong policy support, indicators of economic activity and employment have strengthened. The sectors most adversely affected by the pandemic remain weak but have shown improvement. Inflation has risen, largely reflecting transitory factors. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses. The path of the economy will depend significantly on the course of the virus. Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain. The Committee seeks to achieve maximum employment and inflation at ...

Two men and a woman will be sentenced in September for kidnapping employees and using them to rob more than $600,000 from a credit union and two banks. After a four-day federal jury trial, Antonio Johnson, 44; Travis Jackson, 37; and Shalundra Johnson, 39; were found guilty on multiple felony charges of kidnapping, bank robbery and firearms possession, Acting U.S. Attorney Joseph C. Murphy Jr. in Memphis, Tenn., said last week. After an employee of the $750 million First South Financial Credit Union arrived at her home at about 6:15 p.m. on April 4, 2019, Antonio Johnson and Jackson, who were armed, zip-tied the employee’s wrists and demanded the keys to the credit union. The victim, along with her three-year-old child, were forced into her personal car. Eventually, the credit union employee was taken to the credit union where the criminals stole $425,000. According to prosecutors, Shalundra Johnson placed a tracking device on the car belonging to the credit union employee, who worked ...

WASHINGTON– “The devil is going to be in the details,” according to one analysis of what a new Internal Revenue Service proposal could mean for credit unions. CUNA and NAFCU have joined with other trade groups in sending a letter to the House raising concerns over a proposed new tax reporting requirement included under President Joe Biden's budget proposal. Under the new reporting requirements, financial institutions would be required to file an annual information return for all business and personal accounts with more than $600 in their account. The annual reporting requirement would include information related to gross inflows and outflows, including the amount of cash, transfers to and from accounts held by the same owner, and transactions with foreign accounts. In the letter, NAFCU, CUNA and the trades said proposals "to create new reporting requirements for financial institutions appear to impose cost and complexity that are not justified by the potential, and highly unce...

  ARLINGTON, Va.–Over the past year reports from most credit unions have been generally positive about the virtual exams NCUA has conducted during the pandemic. But there are increasing concerns by the trade groups that the reach of those exams will be extended and the burden on CUs will get heavier. “I think there is a lot that remains unknown relative to exams with the continued use of virtual exams,” said Carrie Hunt, EVP and general counsel with CUNA. “The exams had to be virtual due to the pandemic, but whether that translates into longer-term lessons learned from NCUA’s virtual exam program remains to be seen. Certainly, the opportunity to regulate via exams are the kinds of issues that we become concerned about. We want there to be transparency in the process. If NCUA begins doing things in the exam process that are not outlined in their supervisory priorities, then we would we be worried about that.” Hunt acknowledged that to date the feedback NAFCU has received from its me...

The COVID-19 crisis swept across the world and devastated lives and many parts of the economy. Add that together with swift alterations in consumer and credit union member behavior, and the result turned into a historic hurricane of change that has fragmented members’ financial relationships. New findings, published in the “CU Payments Outlook” research, which was conducted by global consulting firm EY and commissioned by CO-OP Financial Services, revealed that the pandemic accelerated a years-long trend of consumers’ disjointed relationship with their financial services provider. In this study of 3,000 credit union members and potential members, the research revealed that 88% of credit union members are currently digitally engaged with their financial services provider. But there’s a problem, because those primary financial relationships (PFRs) are not necessarily with a credit union. What the research found was the relationships are mostly being created with fintechs. The fintechs a...

LAWRENCEVILLE, Ga.— The national shortage of new and used vehicles led to another record value-retention month, according to Black Book. Black Book’s Used Vehicle Retention Index for May 2021 reached 159.6, a 7.1-point (or 4.7%) increase from April (152.4), the company said. The Index currently stands 50.6% above where it was the same time last year, during lowest point in automotive values due to COVID-19. “Wholesale prices continued their ascent each week in April, although the rate of increase declined through the month,” said Alex Yurchenko, SVP, data science and analytics. “Demand for used and new vehicles remained strong even with dwindling new inventory. Available used inventory stabilized in April and started to build up at the end of the month, although we are still about 10% below where we started the year. This strong demand and still low inventory together with low (and declining) incentive levels on new vehicles helped the retention index to increase for the fifth mont...

Source: Callahan & Associates A third round of stimulus payments combined with the seasonal spike in share inflows translated to annual deposit growth of 22.7%. From year-end 2020, share balances rose 6.4%, compared to 4.3% quarterly growth a year ago. Given the scale and atypical growth drivers that transformed credit union balance sheets over the last 12 months, it is important to contextualize this growth and recognize how different segments of the balance sheet are changing in relation to one another given the base effect and the impact of COVID-19 a year ago.  Following the dramatic gains in the deposit portfolio, investment balances rose accordingly. On a quarterly basis, total investments surged 16.4% from December to March (up by $98.9 billion), totaling $700.8 billion at quarter-end. Continuing recent trends, the combination of a limited supply of short-term bonds, modest yields and a persistent uncertainty about deposit retention assumptions translated to quarterly ca...